Bill Amendment: IL SB1646 | 2023-2024 | 103rd General Assembly

NOTE: For additional amemendments please see the Bill Drafting List

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Bill Title: PEN CD-OUTSIDE SOLICITATION

Status: 2023-08-11 - Public Act . . . . . . . . . 103-0552 [SB1646 Detail]

Download: Illinois-2023-SB1646-Senate_Amendment_004.html

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Sen. Robert F. Martwick

Filed: 3/29/2023

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AMENDMENT TO SENATE BILL 1646
AMENDMENT NO. ______. Amend Senate Bill 1646, AS AMENDED,
with reference to page and line numbers of Senate Amendment
No. 2, on page 44, immediately below line 21, by inserting the
following:
"Article 11.
Section 11-5. The Illinois Pension Code is amended by
changing Sections 22B-115 and 22B-116 as follows:
(40 ILCS 5/22B-115)
Sec. 22B-115. Board of Trustees of the Fund.
(a) No later than one month after the effective date of
this amendatory Act of the 101st General Assembly or as soon
thereafter as may be practicable, the Governor shall appoint,
by and with the advice and consent of the Senate, a transition
board of trustees consisting of 9 members as follows:

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(1) three members representing municipalities who are
mayors, presidents, chief executive officers, chief
financial officers, or other officers, executives, or
department heads of municipalities and appointed from
among candidates recommended by the Illinois Municipal
League;
(2) three members representing participants and who
are participants, 2 of whom shall be appointed from among
candidates recommended by a statewide fraternal
organization representing more than 20,000 active and
retired police officers in the State of Illinois, and one
of whom shall be appointed from among candidates
recommended by a benevolent association representing sworn
police officers in the State of Illinois;
(3) two members representing beneficiaries and who are
beneficiaries, one of whom shall be appointed from among
candidates recommended by a statewide fraternal
organization representing more than 20,000 active and
retired police officers in the State of Illinois, and one
of whom shall be appointed from among candidates
recommended by a benevolent association representing sworn
police officers in the State of Illinois; and
(4) one member who is a representative of the Illinois
Municipal League.
The transition board members shall serve until the initial
permanent board members are elected and qualified.

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The transition board of trustees shall select the
chairperson of the transition board of trustees from among the
trustees for the duration of the transition board's tenure.
(b) The permanent board of trustees shall consist of 9
members as follows:
(1) Three members who are mayors, presidents, chief
executive officers, chief financial officers, or other
officers, executives, or department heads of
municipalities that have participating pension funds and
are elected by the mayors and presidents of municipalities
that have participating pension funds.
(2) Three members who are participants of
participating pension funds and are elected by the
participants of participating pension funds.
(3) Two members who are beneficiaries of participating
pension funds and are elected by the beneficiaries of
participating pension funds.
(4) One member recommended by the Illinois Municipal
League who shall be appointed by the Governor with the
advice and consent of the Senate.
The permanent board of trustees shall select the
chairperson of the permanent board of trustees from among the
trustees for a term of 2 years. The holder of the office of
chairperson shall alternate between a person elected or
appointed under item (1) or (4) of this subsection (b) and a
person elected under item (2) or (3) of this subsection (b).

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(c) Each trustee shall qualify by taking an oath of office
before the Secretary of State or the legal counsel of the fund
stating that he or she will diligently and honestly administer
the affairs of the board and will not violate or knowingly
permit the violation of any provision of this Article.
(d) Trustees shall receive no salary for service on the
board but shall be reimbursed for travel expenses incurred
while on business for the board according to the standards in
effect for members of the Commission on Government Forecasting
and Accountability.
A municipality employing a police officer who is an
elected or appointed trustee of the board must allow
reasonable time off with compensation for the police officer
to conduct official business related to his or her position on
the board, including time for travel. The board shall notify
the municipality in advance of the dates, times, and locations
of this official business. The Fund shall timely reimburse the
municipality for the reasonable costs incurred that are due to
the police officer's absence.
(e) No trustee shall have any interest in any brokerage
fee, commission, or other profit or gain arising out of any
investment directed by the board. This subsection does not
preclude ownership by any member of any minority interest in
any common stock or any corporate obligation in which an
investment is directed by the board.
(f) Notwithstanding any provision or interpretation of law

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to the contrary, any member of the transition board may also be
elected or appointed as a member of the permanent board.
Notwithstanding any provision or interpretation of law to
the contrary, any trustee of a fund established under Article
3 of this Code may also be appointed as a member of the
transition board or elected or appointed as a member of the
permanent board.
The restriction in Section 3.1 of the Lobbyist
Registration Act shall not apply to a member of the transition
board appointed pursuant to item (4) of subsection (a) or to a
member of the permanent board appointed pursuant to item (4)
of subsection (b).
(Source: P.A. 101-610, eff. 1-1-20.)
(40 ILCS 5/22B-116)
Sec. 22B-116. Conduct and administration of elections;
terms of office.
(a) For the election of the permanent trustees, the
transition board shall administer the initial elections and
the permanent board shall administer all subsequent elections.
Each board shall develop and implement such procedures as it
determines to be appropriate for the conduct of such
elections. For the purposes of obtaining information necessary
to conduct elections under this Section, participating pension
funds shall cooperate with the Fund.
(b) All nominations for election shall be by petition.

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Each petition for a trustee shall be executed as follows:
(1) for trustees to be elected by the mayors and
presidents of municipalities that have participating
pension funds, by at least 20 such mayors and presidents;
(2) for trustees to be elected by participants, by at
least 400 participants; and
(3) for trustees to be elected by beneficiaries, by at
least 100 beneficiaries.
(c) A separate ballot shall be used for each class of
trustee. The board shall prepare and send ballots and ballot
envelopes to the participants and beneficiaries eligible to
vote in accordance with rules adopted by the board. The
ballots shall contain the names of all candidates in
alphabetical order. The ballot envelope shall have on the
outside a form of certificate stating that the person voting
the ballot is a participant or beneficiary entitled to vote.
Participants and beneficiaries, upon receipt of the
ballot, shall vote the ballot and place it in the ballot
envelope, seal the envelope, execute the certificate thereon,
and return the ballot to the Fund.
The board shall set a final date for ballot return, and
ballots received prior to that date in a ballot envelope with a
properly executed certificate and properly voted shall be
valid ballots.
The board shall set a day for counting the ballots and name
judges and clerks of election to conduct the count of ballots

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and shall make any rules necessary for the conduct of the
count.
The candidate or candidates receiving the highest number
of votes for each class of trustee shall be elected. In the
case of a tie vote, the winner shall be determined in
accordance with procedures developed by the Department of
Insurance.
In lieu of conducting elections via mail balloting as
described in this Section, the board may instead adopt rules
to provide for elections to be carried out solely via Internet
balloting or phone balloting. Nothing in this Section
prohibits the Fund from contracting with a third party to
administer the election in accordance with this Section.
(d) At any election, voting shall be as follows:
(1) Each person authorized to vote for an elected
trustee may cast one vote for each related position for
which such person is entitled to vote and may cast such
vote for any candidate or candidates on the ballot for
such trustee position.
(2) If only one candidate for each position is
properly nominated in petitions received, that candidate
shall be deemed the winner and no election under this
Section shall be required.
(3) The results shall be entered in the minutes of the
first meeting of the board following the tally of votes.
(e) The initial election for permanent trustees shall be

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held and the permanent board shall be seated no later than 12
months after the effective date of this amendatory Act of the
101st General Assembly. Each subsequent election shall be held
no later than 30 days prior to the end of the term of the
incumbent trustees.
(f) The elected trustees shall each serve for terms of 4
years commencing on the first business day of the first month
after election; except that the terms of office of the
initially elected trustees shall be as follows:
(1) one trustee elected pursuant to item (1) of
subsection (b) of Section 22B-115 shall serve for a term
of 2 years and 2 trustees elected pursuant to item (1) of
subsection (b) of Section 22B-115 shall serve for a term
of 4 years;
(2) two trustees elected pursuant to item (2) of
subsection (b) of Section 22B-115 shall serve for a term
of 2 years and one trustee elected pursuant to item (2) of
subsection (b) of Section 22B-115 shall serve for a term
of 4 years; and
(3) one trustee elected pursuant to item (3) of
subsection (b) of Section 22B-115 shall serve for a term
of 2 years and one trustee elected pursuant to item (3) of
subsection (b) of Section 22B-115 shall serve for a term
of 4 years.
(g) The trustee appointed pursuant to item (4) of
subsection (b) of Section 22B-115 shall serve for a term of 2

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years commencing on the first business day of the first month
after the election of the elected trustees.
(h) A member of the board who was elected pursuant to item
(1) of subsection (b) of Section 22B-115 who ceases to serve as
a mayor, president, chief executive officer, chief financial
officer, or other officer, executive, or department head of a
municipality that has a participating pension fund shall not
be eligible to serve as a member of the board and his or her
position shall be deemed vacant. A member of the board who was
elected by the participants of participating pension funds who
ceases to be a participant may serve the remainder of his or
her elected term.
For a vacancy of a trustee under item (1) of subsection (b)
of Section 22B-115, the vacancy shall be filled by appointment
by the board for the unexpired term from a list of candidates
recommended by the trustees under item (1) of subsection (b)
of Section 22B-115. The list of candidates shall be compiled
and presented to the board by the executive director of the
Fund.
For a vacancy of a trustee under item (2) of subsection (b)
of Section 22B-115, the vacancy shall be filled by appointment
by the board for the unexpired term from a list of candidates
recommended by the trustees under item (2) of subsection (b)
of Section 22B-115. The list of candidates shall be compiled
and presented to the board by the executive director of the
Fund.

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For a vacancy of a trustee under item (3) of subsection (b)
of Section 22B-115, the vacancy shall be filled by appointment
by the board for the unexpired term from a list of candidates
recommended by the trustees under item (3) of subsection (b)
of Section 22B-115. The list of candidates shall be compiled
and presented to the board by the executive director of the
Fund.
For a vacancy of an elected trustee occurring with an
unexpired term of 6 months or more, an election shall be
conducted for the vacancy in accordance with Section 22B-115
and this Section.
For a vacancy of an elected trustee occurring with an
unexpired term of less than 6 months, the vacancy shall be
filled by appointment by the board for the unexpired term as
follows: a vacancy of a member elected pursuant to item (1) of
subsection (b) of Section 22B-115 shall be filled by a mayor,
president, chief executive officer, chief financial officer,
or other officer, executive, or department head of a
municipality that has a participating pension fund; a vacancy
of a member elected pursuant to item (2) of subsection (b) of
Section 22B-115 shall be filled by a participant of a
participating pension fund; and a vacancy of a member elected
under item (3) of subsection (b) of Section 22B-115 shall be
filled by a beneficiary of a participating pension fund.
Vacancies among the appointed trustees shall be filled for
unexpired terms by appointment in like manner as for the

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original appointments.
(Source: P.A. 101-610, eff. 1-1-20.)".