Illinois General Assembly - Full Text of HB0163
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Full Text of HB0163  100th General Assembly

HB0163ham001 100TH GENERAL ASSEMBLY

Rep. Michael Halpin

Filed: 3/14/2017

 

 


 

 


 
10000HB0163ham001LRB100 03834 RPS 22245 a

1
AMENDMENT TO HOUSE BILL 163

2    AMENDMENT NO. ______. Amend House Bill 163 by replacing
3everything after the enacting clause with the following:
 
4    "Section 3. The Freedom of Information Act is amended by
5changing Section 7 as follows:
 
6    (5 ILCS 140/7)  (from Ch. 116, par. 207)
7    Sec. 7. Exemptions.
8    (1) When a request is made to inspect or copy a public
9record that contains information that is exempt from disclosure
10under this Section, but also contains information that is not
11exempt from disclosure, the public body may elect to redact the
12information that is exempt. The public body shall make the
13remaining information available for inspection and copying.
14Subject to this requirement, the following shall be exempt from
15inspection and copying:
16        (a) Information specifically prohibited from

 

 

10000HB0163ham001- 2 -LRB100 03834 RPS 22245 a

1    disclosure by federal or State law or rules and regulations
2    implementing federal or State law.
3        (b) Private information, unless disclosure is required
4    by another provision of this Act, a State or federal law or
5    a court order.
6        (b-5) Files, documents, and other data or databases
7    maintained by one or more law enforcement agencies and
8    specifically designed to provide information to one or more
9    law enforcement agencies regarding the physical or mental
10    status of one or more individual subjects.
11        (c) Personal information contained within public
12    records, the disclosure of which would constitute a clearly
13    unwarranted invasion of personal privacy, unless the
14    disclosure is consented to in writing by the individual
15    subjects of the information. "Unwarranted invasion of
16    personal privacy" means the disclosure of information that
17    is highly personal or objectionable to a reasonable person
18    and in which the subject's right to privacy outweighs any
19    legitimate public interest in obtaining the information.
20    The disclosure of information that bears on the public
21    duties of public employees and officials shall not be
22    considered an invasion of personal privacy.
23        (d) Records in the possession of any public body
24    created in the course of administrative enforcement
25    proceedings, and any law enforcement or correctional
26    agency for law enforcement purposes, but only to the extent

 

 

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1    that disclosure would:
2            (i) interfere with pending or actually and
3        reasonably contemplated law enforcement proceedings
4        conducted by any law enforcement or correctional
5        agency that is the recipient of the request;
6            (ii) interfere with active administrative
7        enforcement proceedings conducted by the public body
8        that is the recipient of the request;
9            (iii) create a substantial likelihood that a
10        person will be deprived of a fair trial or an impartial
11        hearing;
12            (iv) unavoidably disclose the identity of a
13        confidential source, confidential information
14        furnished only by the confidential source, or persons
15        who file complaints with or provide information to
16        administrative, investigative, law enforcement, or
17        penal agencies; except that the identities of
18        witnesses to traffic accidents, traffic accident
19        reports, and rescue reports shall be provided by
20        agencies of local government, except when disclosure
21        would interfere with an active criminal investigation
22        conducted by the agency that is the recipient of the
23        request;
24            (v) disclose unique or specialized investigative
25        techniques other than those generally used and known or
26        disclose internal documents of correctional agencies

 

 

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1        related to detection, observation or investigation of
2        incidents of crime or misconduct, and disclosure would
3        result in demonstrable harm to the agency or public
4        body that is the recipient of the request;
5            (vi) endanger the life or physical safety of law
6        enforcement personnel or any other person; or
7            (vii) obstruct an ongoing criminal investigation
8        by the agency that is the recipient of the request.
9        (d-5) A law enforcement record created for law
10    enforcement purposes and contained in a shared electronic
11    record management system if the law enforcement agency that
12    is the recipient of the request did not create the record,
13    did not participate in or have a role in any of the events
14    which are the subject of the record, and only has access to
15    the record through the shared electronic record management
16    system.
17        (e) Records that relate to or affect the security of
18    correctional institutions and detention facilities.
19        (e-5) Records requested by persons committed to the
20    Department of Corrections if those materials are available
21    in the library of the correctional facility where the
22    inmate is confined.
23        (e-6) Records requested by persons committed to the
24    Department of Corrections if those materials include
25    records from staff members' personnel files, staff
26    rosters, or other staffing assignment information.

 

 

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1        (e-7) Records requested by persons committed to the
2    Department of Corrections if those materials are available
3    through an administrative request to the Department of
4    Corrections.
5        (f) Preliminary drafts, notes, recommendations,
6    memoranda and other records in which opinions are
7    expressed, or policies or actions are formulated, except
8    that a specific record or relevant portion of a record
9    shall not be exempt when the record is publicly cited and
10    identified by the head of the public body. The exemption
11    provided in this paragraph (f) extends to all those records
12    of officers and agencies of the General Assembly that
13    pertain to the preparation of legislative documents.
14        (g) Trade secrets and commercial or financial
15    information obtained from a person or business where the
16    trade secrets or commercial or financial information are
17    furnished under a claim that they are proprietary,
18    privileged or confidential, and that disclosure of the
19    trade secrets or commercial or financial information would
20    cause competitive harm to the person or business, and only
21    insofar as the claim directly applies to the records
22    requested.
23        The information included under this exemption includes
24    all trade secrets and commercial or financial information
25    obtained by a public body, including a public pension fund,
26    from a private equity fund or a privately held company

 

 

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1    within the investment portfolio of a private equity fund as
2    a result of either investing or evaluating a potential
3    investment of public funds in a private equity fund. The
4    exemption contained in this item does not apply to the
5    aggregate financial performance information of a private
6    equity fund, nor to the identity of the fund's managers or
7    general partners. The exemption contained in this item does
8    not apply to the identity of a privately held company
9    within the investment portfolio of a private equity fund,
10    unless the disclosure of the identity of a privately held
11    company may cause competitive harm. Neither the exemption
12    contained in this item, nor any other exemption under this
13    Act, applies to information that is required to be
14    disclosed under Section 1-113.17a of the Illinois Pension
15    Code or is declared in that Section to be a public record.
16        Nothing contained in this paragraph (g) shall be
17    construed to prevent a person or business from consenting
18    to disclosure.
19        (h) Proposals and bids for any contract, grant, or
20    agreement, including information which if it were
21    disclosed would frustrate procurement or give an advantage
22    to any person proposing to enter into a contractor
23    agreement with the body, until an award or final selection
24    is made. Information prepared by or for the body in
25    preparation of a bid solicitation shall be exempt until an
26    award or final selection is made.

 

 

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1        (i) Valuable formulae, computer geographic systems,
2    designs, drawings and research data obtained or produced by
3    any public body when disclosure could reasonably be
4    expected to produce private gain or public loss. The
5    exemption for "computer geographic systems" provided in
6    this paragraph (i) does not extend to requests made by news
7    media as defined in Section 2 of this Act when the
8    requested information is not otherwise exempt and the only
9    purpose of the request is to access and disseminate
10    information regarding the health, safety, welfare, or
11    legal rights of the general public.
12        (j) The following information pertaining to
13    educational matters:
14            (i) test questions, scoring keys and other
15        examination data used to administer an academic
16        examination;
17            (ii) information received by a primary or
18        secondary school, college, or university under its
19        procedures for the evaluation of faculty members by
20        their academic peers;
21            (iii) information concerning a school or
22        university's adjudication of student disciplinary
23        cases, but only to the extent that disclosure would
24        unavoidably reveal the identity of the student; and
25            (iv) course materials or research materials used
26        by faculty members.

 

 

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1        (k) Architects' plans, engineers' technical
2    submissions, and other construction related technical
3    documents for projects not constructed or developed in
4    whole or in part with public funds and the same for
5    projects constructed or developed with public funds,
6    including but not limited to power generating and
7    distribution stations and other transmission and
8    distribution facilities, water treatment facilities,
9    airport facilities, sport stadiums, convention centers,
10    and all government owned, operated, or occupied buildings,
11    but only to the extent that disclosure would compromise
12    security.
13        (l) Minutes of meetings of public bodies closed to the
14    public as provided in the Open Meetings Act until the
15    public body makes the minutes available to the public under
16    Section 2.06 of the Open Meetings Act.
17        (m) Communications between a public body and an
18    attorney or auditor representing the public body that would
19    not be subject to discovery in litigation, and materials
20    prepared or compiled by or for a public body in
21    anticipation of a criminal, civil or administrative
22    proceeding upon the request of an attorney advising the
23    public body, and materials prepared or compiled with
24    respect to internal audits of public bodies.
25        (n) Records relating to a public body's adjudication of
26    employee grievances or disciplinary cases; however, this

 

 

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1    exemption shall not extend to the final outcome of cases in
2    which discipline is imposed.
3        (o) Administrative or technical information associated
4    with automated data processing operations, including but
5    not limited to software, operating protocols, computer
6    program abstracts, file layouts, source listings, object
7    modules, load modules, user guides, documentation
8    pertaining to all logical and physical design of
9    computerized systems, employee manuals, and any other
10    information that, if disclosed, would jeopardize the
11    security of the system or its data or the security of
12    materials exempt under this Section.
13        (p) Records relating to collective negotiating matters
14    between public bodies and their employees or
15    representatives, except that any final contract or
16    agreement shall be subject to inspection and copying.
17        (q) Test questions, scoring keys, and other
18    examination data used to determine the qualifications of an
19    applicant for a license or employment.
20        (r) The records, documents, and information relating
21    to real estate purchase negotiations until those
22    negotiations have been completed or otherwise terminated.
23    With regard to a parcel involved in a pending or actually
24    and reasonably contemplated eminent domain proceeding
25    under the Eminent Domain Act, records, documents and
26    information relating to that parcel shall be exempt except

 

 

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1    as may be allowed under discovery rules adopted by the
2    Illinois Supreme Court. The records, documents and
3    information relating to a real estate sale shall be exempt
4    until a sale is consummated.
5        (s) Any and all proprietary information and records
6    related to the operation of an intergovernmental risk
7    management association or self-insurance pool or jointly
8    self-administered health and accident cooperative or pool.
9    Insurance or self insurance (including any
10    intergovernmental risk management association or self
11    insurance pool) claims, loss or risk management
12    information, records, data, advice or communications.
13        (t) Information contained in or related to
14    examination, operating, or condition reports prepared by,
15    on behalf of, or for the use of a public body responsible
16    for the regulation or supervision of financial
17    institutions or insurance companies, unless disclosure is
18    otherwise required by State law.
19        (u) Information that would disclose or might lead to
20    the disclosure of secret or confidential information,
21    codes, algorithms, programs, or private keys intended to be
22    used to create electronic or digital signatures under the
23    Electronic Commerce Security Act.
24        (v) Vulnerability assessments, security measures, and
25    response policies or plans that are designed to identify,
26    prevent, or respond to potential attacks upon a community's

 

 

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1    population or systems, facilities, or installations, the
2    destruction or contamination of which would constitute a
3    clear and present danger to the health or safety of the
4    community, but only to the extent that disclosure could
5    reasonably be expected to jeopardize the effectiveness of
6    the measures or the safety of the personnel who implement
7    them or the public. Information exempt under this item may
8    include such things as details pertaining to the
9    mobilization or deployment of personnel or equipment, to
10    the operation of communication systems or protocols, or to
11    tactical operations.
12        (w) (Blank).
13        (x) Maps and other records regarding the location or
14    security of generation, transmission, distribution,
15    storage, gathering, treatment, or switching facilities
16    owned by a utility, by a power generator, or by the
17    Illinois Power Agency.
18        (y) Information contained in or related to proposals,
19    bids, or negotiations related to electric power
20    procurement under Section 1-75 of the Illinois Power Agency
21    Act and Section 16-111.5 of the Public Utilities Act that
22    is determined to be confidential and proprietary by the
23    Illinois Power Agency or by the Illinois Commerce
24    Commission.
25        (z) Information about students exempted from
26    disclosure under Sections 10-20.38 or 34-18.29 of the

 

 

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1    School Code, and information about undergraduate students
2    enrolled at an institution of higher education exempted
3    from disclosure under Section 25 of the Illinois Credit
4    Card Marketing Act of 2009.
5        (aa) Information the disclosure of which is exempted
6    under the Viatical Settlements Act of 2009.
7        (bb) Records and information provided to a mortality
8    review team and records maintained by a mortality review
9    team appointed under the Department of Juvenile Justice
10    Mortality Review Team Act.
11        (cc) Information regarding interments, entombments, or
12    inurnments of human remains that are submitted to the
13    Cemetery Oversight Database under the Cemetery Care Act or
14    the Cemetery Oversight Act, whichever is applicable.
15        (dd) Correspondence and records (i) that may not be
16    disclosed under Section 11-9 of the Illinois Public Aid
17    Code or (ii) that pertain to appeals under Section 11-8 of
18    the Illinois Public Aid Code.
19        (ee) The names, addresses, or other personal
20    information of persons who are minors and are also
21    participants and registrants in programs of park
22    districts, forest preserve districts, conservation
23    districts, recreation agencies, and special recreation
24    associations.
25        (ff) The names, addresses, or other personal
26    information of participants and registrants in programs of

 

 

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1    park districts, forest preserve districts, conservation
2    districts, recreation agencies, and special recreation
3    associations where such programs are targeted primarily to
4    minors.
5        (gg) Confidential information described in Section
6    1-100 of the Illinois Independent Tax Tribunal Act of 2012.
7        (hh) The report submitted to the State Board of
8    Education by the School Security and Standards Task Force
9    under item (8) of subsection (d) of Section 2-3.160 of the
10    School Code and any information contained in that report.
11        (ii) Records requested by persons committed to or
12    detained by the Department of Human Services under the
13    Sexually Violent Persons Commitment Act or committed to the
14    Department of Corrections under the Sexually Dangerous
15    Persons Act if those materials: (i) are available in the
16    library of the facility where the individual is confined;
17    (ii) include records from staff members' personnel files,
18    staff rosters, or other staffing assignment information;
19    or (iii) are available through an administrative request to
20    the Department of Human Services or the Department of
21    Corrections.
22        (jj) Confidential information described in Section
23    5-535 of the Civil Administrative Code of Illinois.
24    (1.5) Any information exempt from disclosure under the
25Judicial Privacy Act shall be redacted from public records
26prior to disclosure under this Act.

 

 

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1    (2) A public record that is not in the possession of a
2public body but is in the possession of a party with whom the
3agency has contracted to perform a governmental function on
4behalf of the public body, and that directly relates to the
5governmental function and is not otherwise exempt under this
6Act, shall be considered a public record of the public body,
7for purposes of this Act.
8    (3) This Section does not authorize withholding of
9information or limit the availability of records to the public,
10except as stated in this Section or otherwise provided in this
11Act.
12(Source: P.A. 98-463, eff. 8-16-13; 98-578, eff. 8-27-13;
1398-695, eff. 7-3-14; 99-298, eff. 8-6-15; 99-346, eff. 1-1-16;
1499-642, eff. 7-28-16; revised 10-25-16.)
 
15    Section 5. The Illinois Pension Code is amended by adding
16Sections 1-113.17, 1-113.17a, 1-113.17b, and 1-113.17c as
17follows:
 
18    (40 ILCS 5/1-113.17 new)
19    Sec. 1-113.17. Investment transparency; definitions. As
20used in this Section and Sections 1-113.17a, 1-113.17b, and
211-113.17c:
22    (a) "Affiliate" means any person directly or indirectly
23controlling or controlled by, or under direct or indirect
24common control with, another person.

 

 

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1    (a-5) "Alternative investment fund" means a private equity
2fund, hedge fund, or absolute return fund.
3    (b) "Board" or "public retirement system board" means the
4board of trustees of a public retirement system and includes
5the Illinois State Board of Investment established under
6Article 22A of this Code.
7    (c) "External manager" means either of the following:
8        (1) A person who manages an alternative investment fund
9    and who offers or sells, or has offered or sold, an
10    ownership interest in the alternative investment fund to a
11    board.
12        (2) A general partner, managing member entity, fund
13    manager, fund adviser, or other similar person or entity
14    with decision-making authority over an alternative
15    investment fund.
16    (d) "External manager group" means (1) the external
17manager, (2) its affiliates, (3) any other parties described in
18the external manager's marketing materials for the relevant
19alternative investment fund as providing services to or on
20behalf of portfolio holdings, and (4) any other parties
21described in the external manager's affiliated adviser's SEC
22Form ADV filing as receiving portfolio holding fees or
23portfolio holding other compensation. "External manager group"
24does not include the affiliated alternative investment fund in
25which the public retirement system is an investor, nor does it
26include an alternative investment fund used to effectuate

 

 

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1investments of the affiliated fund in which the public
2retirement system is an investor.
3    (e) "Marketing materials" means (1) a prospectus, (2) a
4private placement memorandum, (3) a prospective investor
5presentation, (4) a due diligence questionnaire, but only if
6the questions are authored by an external manager, or (5) any
7other written material provided by an external manager for the
8purpose of soliciting a commitment to an alternative investment
9fund.
10    (f) "New agreement" means an agreement that is proposed or
11executed after February 1, 2019, and includes any modification
12to or amendment of such an agreement that modifies or alters
13any of the provisions required to be disclosed under Section
141-113.17a or 1-113.17b. "New agreement" also means any
15subsequent agreement that implements, memorializes, or
16provides detail about such an agreement.
17    (g) "Person" means an individual, corporation,
18partnership, limited partnership, limited liability company,
19or association, either domestic or foreign.
20    (h) "Portfolio holding" means any business, partnership,
21real property, or other business entity or asset in which an
22alternative investment fund has, at any time, held either an
23interest in the securities thereof or a real property interest
24in, or has acted as a lender to, the entity or asset.
25    (i) "Portfolio holding fee" means the total payment
26obligation of a portfolio holding, regardless of whether it is

 

 

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1actually paid or accrued, and regardless of whether the payment
2obligation is satisfied in cash, securities, or other
3consideration, and regardless of whether it is incurred as
4compensation for services provided or as reimbursement for
5expenses incurred.
6    (j) "Private equity fund" means a pooled investment entity
7that is, or holds itself out as being, engaged primarily, or
8proposes to engage primarily, in investment strategies
9involving equity or debt financings that are provided for
10purchasing or expanding private or public companies, or for
11related purposes such as financing for capital, research and
12development, introduction of a product or process into the
13marketplace, or similar needs requiring risk capital. This
14includes, but is not limited to, financing classified as
15venture capital, mezzanine, buyout, or growth funds.
16    (k) "Public retirement system" means a pension fund or
17retirement system subject to Article 5, 6, 7, 8, 9, 11, 12, 13,
1815, 16, or 17 of this Code, and includes the Illinois State
19Board of Investment established under Article 22A of this Code.
20    (l) "Task Force" means the Investment Transparency Task
21Force created under Section 1-113.17c of this Code.
 
22    (40 ILCS 5/1-113.17a new)
23    Sec. 1-113.17a. Investment transparency; disclosure of
24alternative investment fund agreements.
25    (a) The definitions in Section 1-113.17 of this Code apply

 

 

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1to this Section.
2    (b) Within 90 days after entering into a new agreement to
3invest in an alternative investment fund, a public retirement
4system must disclose, in the manner provided under this
5Section, the existence of the agreement and all of the
6following parts and provisions of the agreement:
7        (1) All management fee waiver provisions, including,
8    but not limited to, provisions that permit the external
9    manager or general partner to waive fees, or that specify
10    the mechanics of the fee waiver or its repayment, or that
11    specify the magnitude of the fee waiver, or that are
12    necessary to understand how the fee waiver works, and all
13    defined terms related to or affecting the fee waiver.
14        (2) All indemnification provisions, including, but not
15    limited to, provisions that require the alternative
16    investment fund or its investors to indemnify the external
17    manager or general partner, or any of its affiliates, for
18    settlements or judgments paid, and including all
19    provisions necessary to understand how the indemnification
20    works and all defined terms related to or affecting
21    indemnification.
22        (3) All clawback provisions, including, but not
23    limited to, provisions that allow the external manager or
24    general partner to pay back an amount less than the full
25    cost of the overpayment received by the manager, and
26    including all provisions necessary to understand how the

 

 

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1    clawback works and all defined terms related to or
2    affecting clawbacks.
3        (4) The cover page and signature block of the
4    agreement.
5    However, in the case of a new agreement that consists of a
6modification of or amendment to a previous new agreement for
7which the disclosures required under this subsection have
8already been made, it is sufficient for the public retirement
9system (i) to identify the previous disclosures and disclose
10only the parts and provisions of the modification of or
11amendment to the agreement that modify, alter, or affect any of
12the provisions previously disclosed under this subsection or
13(ii) to make and disclose a finding that the modification or
14amendment does not modify, alter, or affect any of the
15provisions previously disclosed under this subsection,
16whichever is applicable.
17    (c) The public retirement system shall make the disclosures
18required under subsection (b) by doing all of the following:
19        (1) filing a copy of the required material with the
20    Public Pension Division of the Illinois Department of
21    Insurance;
22        (2) filing a copy of the required material with the
23    Illinois Secretary of State; and
24        (3) posting and maintaining the required material on
25    the public retirement system's website.
26    (d) A new agreement shall not be deemed to be violated or

 

 

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1made invalid by the public retirement system's good faith
2effort to make the disclosures required under subsection (b) of
3this Section, nor due to harmless or inadvertent failure by the
4public retirement system to correctly include or identify a
5component of a required disclosure.
6    (e) The following are public records and are subject to
7disclosure under the Freedom of Information Act:
8        (1) All of the material required to be disclosed under
9    subsection (b) of this Section.
10        (2) Any amounts paid in indemnification and any amounts
11    deducted from payments owed by the general partner or
12    external manager under an agreement establishing or
13    providing for participation in an alternative investment
14    fund by a public retirement system, and any documents
15    submitted to a public retirement system justifying the
16    demand for payment relating to the indemnification.
17        (3) The cover page and a legible copy of the executed
18    signature block of any new agreement to establish or
19    participate in an alternative investment fund by a public
20    retirement system.
21    (f) If a public retirement system adopts and implements the
22recommendations of the Task Force that apply to this Section,
23and those recommendations are not rejected by the General
24Assembly under subsection (f) of Section 1-113.17c, then
25disclosures made in conformance with those recommendations
26shall constitute compliance with the disclosure requirements

 

 

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1of this Section.
 
2    (40 ILCS 5/1-113.17b new)
3    Sec. 1-113.17b. Investment transparency; disclosure of
4certain investment fees.
5    (a) The definitions in Section 1-113.17 of this Code apply
6to this Section. For the purposes of this Section, "carried
7interest" means a share of the profits of an alternative
8investment fund that is paid, accrued, or due to the general
9partner or the external manager or their affiliates.
10    (b) This Section applies to any new agreement that a public
11retirement system enters into in order to establish or
12participate in an alternative investment fund. A public
13retirement system shall not enter into such new agreement
14without a written undertaking by the alternative investment
15fund external managers and general partners that they will
16comply with this Section and the requirements of the public
17retirement system under subsection (c), or under subsection (e)
18if applicable.
19    (c) Every public retirement system shall require its
20alternative investment fund external managers and general
21partners to make the following disclosures annually, in a
22manner and form prescribed by the system, in regard to each
23alternative investment fund:
24        (1) The fees and expenses that the public retirement
25    system pays directly to the alternative investment fund, or

 

 

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1    to the alternative investment fund external manager or
2    general partner.
3        (2) The public retirement system's share of all fees
4    and expenses not included in paragraph (1), including
5    carried interest, that are paid or allocated from the
6    alternative investment fund to the external manager or
7    general partners, or that are deducted from payments owed
8    from the external manager or general partners to the
9    alternative investment fund.
10        (3) The amount of all management fee waivers made by
11    the alternative investment fund external managers or
12    general partners.
13        (4) The total amount of portfolio holding fees incurred
14    by each portfolio holding of the alternative investment
15    fund as payment to any person who is a member of the
16    external manager group.
17    An alternative investment fund external manager or general
18partner may provide the public retirement system with a
19completed reporting template developed by the Institutional
20Limited Partners Association for the relevant category of
21investment; doing so constitutes compliance with that external
22manager or general partner's annual disclosure requirements
23under this subsection for the year covered in the completed
24template.
25    (d) A public retirement system shall make the information
26received under subsection (c) available by:

 

 

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1        (1) filing a copy of the received material with the
2    Public Pension Division of the Illinois Department of
3    Insurance; and
4        (2) posting and maintaining the received information
5    on the public retirement system's website, together with
6    sufficient identifying and explanatory material to
7    facilitate access and understanding by the public.
8    (e) If a public retirement system adopts and implements the
9recommendations of the Task Force that apply to this Section,
10and those recommendations are not rejected by the General
11Assembly under subsection (f) of Section 1-113.17c, then
12disclosures made in conformance with those recommendations
13shall constitute compliance with the disclosure requirements
14of this Section.
 
15    (40 ILCS 5/1-113.17c new)
16    Sec. 1-113.17c. Investment Transparency Task Force.
17    (a) The definitions in Section 1-113.17 of this Code apply
18to this Section.
19    (b) There is created the Investment Transparency Task
20Force. It is the purpose of the Task Force to study, identify
21best available practices, and make recommendations relating
22to: (1) disclosure of, and best practices related to, the
23portions of limited partnership agreements addressing
24indemnification provisions, clawback provisions, and
25management fee waivers, which are the subject of Section

 

 

10000HB0163ham001- 24 -LRB100 03834 RPS 22245 a

11-113.17a; and (2) disclosure of fees and expenses incurred,
2including related fee waivers and portfolio holding fees, which
3are the subject of Section 1-113.17b.
4    (c) The Task Force shall consist of the following persons:
5        (1) The executive director (or his or her designee) of
6    each public retirement system subject to Article 5, 6, 7,
7    8, 9, 11, 12, 13, 15, 16, or 17 of this Code, and the
8    director of the Illinois State Board of Investment
9    established under Article 22A of this Code (or the
10    director's designee).
11        (2) One person appointed by each of the 4 Legislative
12    Leaders.
13        (3) The State Treasurer, or his or her designee.
14        (4) One person representing the interests of external
15    managers, appointed by the State Treasurer.
16        (5) One person representing the interests of the
17    beneficiaries of public retirement systems, appointed by
18    the State Treasurer.
19        (6) One person representing the interests of Illinois
20    taxpayers, appointed by the State Treasurer.
21    All members shall be appointed for the life of the Task
22Force. In the case of a resignation or other vacancy occurring
23among persons appointed under item (2), (3), (4), (5), or (6),
24a replacement member may be appointed by the applicable
25appointing authority.
26    (d) Members of the Task Force shall serve without

 

 

10000HB0163ham001- 25 -LRB100 03834 RPS 22245 a

1compensation, but may be reimbursed for their necessary
2expenses from funds lawfully available for that purpose.
3    (e) No later than January 15, 2018, the Task Force shall
4report to the General Assembly and the public retirement
5systems its findings and recommendations, which must be adopted
6by a majority of the members appointed. The report of the Task
7Force shall separate and clearly designate the portions of its
8findings and recommendations that relate (i) to Section
91-113.17a and (ii) to Section 1-113.17b. In each portion, the
10findings and recommendations shall be prepared and presented in
11a form that can be readily identified, adopted, and implemented
12by any public retirement system wishing to do so. Copies of the
13report shall be made available to the public as provided by
14law.
15    (f) The 100th General Assembly may, by joint resolution,
16reject the portion of the report relating to Section 1-113.17a,
17the portion of the report relating to Section 1-113.17b, or
18both. Any part of the report that is not so rejected shall be
19deemed to have been accepted by the General Assembly as
20consistent with the public policy of the State.
21    (g) A public retirement system may adopt and implement any
22of the recommendations of the Task Force at any time. However,
23if one or both portions of the report are rejected by the
24General Assembly under subsection (f), the public retirement
25system shall adjust its implementation of the rejected
26provision as necessary to comply with the requirements of

 

 

10000HB0163ham001- 26 -LRB100 03834 RPS 22245 a

1Section 1-113.17a or 1-113.17b or both, as applicable.
 
2    Section 99. Effective date. This Act takes effect upon
3becoming law.".