HB2876 98TH GENERAL ASSEMBLY

LRB098 09887 EFG 40045 b

98TH GENERAL ASSEMBLY
State of Illinois
2013 and 2014
HB2876

Introduced , by Rep. Daniel J. Burke

SYNOPSIS AS INTRODUCED:

40 ILCS 5/1-145

Amends the General Provisions Article of the Illinois Pension Code. Makes changes concerning contingent and placement fees.

PENSION IMPACT NOTE ACT MAY APPLY

A BILL FOR

AN ACT concerning public employee benefits.

Be it enacted by the People of the State of Illinois, represented in the General Assembly:

Section 5. The Illinois Pension Code is amended by changing Section 1-145 as follows:

(40 ILCS 5/1-145)

Sec. 1-145. Contingent and placement fees prohibited. No person shall retain a solicitor or placement agent to attempt to influence the outcome of an investment decision of or the procurement of investment advice or services by the Board or Oversight Board of the Illinois Public Employees' Retirement System for compensation, contingent in whole or in part upon the decision or procurement, unless (i) such solicitor is a person enumerated in one of clauses (1) through (5) of Section 1-101.4 and is in compliance with rule 206(4)-3 under the federal Investment Advisers Act of 1940 or (ii) such placement agent is registered as a broker or dealer pursuant to the federal Securities and Exchange Act of 1934, as amended, or the Illinois Securities Law of 1953. Any person who violates this Section is guilty of a business offense and shall be fined not more than $10,000. In addition, any person convicted of a violation of this Section is prohibited for a period of 3 years from conducting such activities. No person or entity shall retain a person or entity to attempt to influence the outcome of an investment decision of or the procurement of investment advice or services of a retirement system, pension fund, or investment board of this Code for compensation, contingent in whole or in part upon the decision or procurement. Any person who violates this Section is guilty of a business offense and shall be fined not more than $10,000. In addition, any person convicted of a violation of this Section is prohibited for a period of 3 years from conducting such activities.

(Source: P.A. 96-6, eff. 4-3-09.)