Full Text of HB3336 97th General Assembly
HB3336eng 97TH GENERAL ASSEMBLY |
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| 1 | | AN ACT concerning local government.
| 2 | | Be it enacted by the People of the State of Illinois,
| 3 | | represented in the General Assembly:
| 4 | | Section 5. The Counties Code is amended by adding the | 5 | | heading of Div. 6-35 and Section 6-35000 as follows: | 6 | | (55 ILCS 5/Div. 6-35 heading new) | 7 | | Division 6-35. Application of the Prudent Investor Rule | 8 | | to Eligible Deferred Compensation Plans | 9 | | (55 ILCS 5/6-35000 new) | 10 | | Sec. 6-35000. Application of the prudent investor rule to | 11 | | 457(b) plans. | 12 | | (a) If a county offers a 457(b) plan to its officers, | 13 | | employees, or both, or makes contributions to such a plan on | 14 | | behalf of its officers, employees, or both, then the county | 15 | | board and those persons acting under its authority must act in | 16 | | accordance with the prudent investor rule when making | 17 | | plan-related decisions. | 18 | | (b) For the purposes of this Section, a person acts in | 19 | | accordance with the prudent investor rule if he or she acts in | 20 | | good faith and with the care, skill, prudence, diligence, and | 21 | | degree of judgment that an investor of prudence, discretion, | 22 | | and good judgment would exercise in the management of his or |
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| 1 | | her own affairs, taking into account the probable safety of the | 2 | | plan capital as well as the probable investment return to be | 3 | | derived from the invested assets. | 4 | | (c) A home rule unit may not regulate a county board's or | 5 | | its agents' plan-related fiduciary obligations in a manner that | 6 | | is less restrictive than the regulation by the State of those | 7 | | obligations under subsection (a). This subsection (c) is a | 8 | | limitation under subsection (i) of Section 6 of Article VII of | 9 | | the Illinois Constitution on the concurrent exercise by home | 10 | | rule units of powers and functions exercised by the State. | 11 | | (d) This Section does not apply to any plan authorized or | 12 | | created under the Illinois Pension Code. | 13 | | Section 10. The Illinois Municipal Code is amended by | 14 | | adding Section 8-1-20 as follows: | 15 | | (65 ILCS 5/8-1-20 new) | 16 | | Sec. 8-1-20. Application of the prudent investor rule to | 17 | | 457(b) plans. | 18 | | (a) If a municipality offers a 457(b) plan to its officers, | 19 | | employees, or both, or makes contributions to such a plan on | 20 | | behalf of its officers, employees, or both, then the corporate | 21 | | authorities of the municipality and those persons acting under | 22 | | their authority must act in accordance with the prudent | 23 | | investor rule when making plan-related decisions. | 24 | | (b) For the purposes of this Section, a person acts in |
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| 1 | | accordance with the prudent investor rule if he or she acts in | 2 | | good faith and with the care, skill, prudence, diligence, and | 3 | | degree of judgment that an investor of prudence, discretion, | 4 | | and sound judgment would exercise in the management of his or | 5 | | her own affairs, taking into account the probable safety of the | 6 | | plan capital as well as the probable investment return to be | 7 | | derived from the invested assets. | 8 | | (c) A home rule unit may not regulate a municipal corporate | 9 | | authority's or its agents' plan-related fiduciary obligations | 10 | | in a manner that is less restrictive than the regulation by the | 11 | | State of those obligations under subsection (a). This | 12 | | subsection (c) is a limitation under subsection (i) of Section | 13 | | 6 of Article VII of the Illinois Constitution on the concurrent | 14 | | exercise by home rule units of powers and functions exercised | 15 | | by the State. | 16 | | (d) This Section does not apply to any plan authorized or | 17 | | created under the Illinois Pension Code. | 18 | | Section 15. The School Code is amended by adding Section | 19 | | 10-20.53 as follows: | 20 | | (105 ILCS 5/10-20.53 new) | 21 | | Sec. 10-20.53. Application of the prudent investor rule to | 22 | | 403(b) and 457(b) plans. | 23 | | (a) If a school board other than the Chicago Board of | 24 | | Schools offers a 403(b) or 457(b) plan to its officers, |
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| 1 | | employees, or both, or makes contributions to such a plan on | 2 | | behalf of its officers, employees, or both, then the board and | 3 | | those persons acting under its authority must act in accordance | 4 | | with the prudent investor rule when making plan-related | 5 | | decisions. | 6 | | (b) For the purposes of this Section, a person acts in | 7 | | accordance with the prudent investor rule if he or she acts in | 8 | | good faith and with the care, skill, prudence, diligence, and | 9 | | degree of judgment that an investor of prudence, discretion, | 10 | | and sound judgment would exercise in the management of his or | 11 | | her own affairs, taking into account the probable safety of the | 12 | | plan capital as well as the probable investment return to be | 13 | | derived from the invested assets. | 14 | | (c) This Section does not apply to any plan authorized or | 15 | | created under the Illinois Pension Code. | 16 | | Section 90. The State Mandates Act is amended by adding | 17 | | Section 8.35 as follows: | 18 | | (30 ILCS 805/8.35 new) | 19 | | Sec. 8.35. Exempt mandate. Notwithstanding Sections 6 and 8 | 20 | | of this Act, no reimbursement by the State is required for the | 21 | | implementation of any mandate created by this amendatory Act of | 22 | | the 97th General Assembly.
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