SB 3638 amends the General Provisions Article of the Illinois Pension Code. It includes MWDBE investment managers with assets of less than $10 million or more than $10 billion in the definition of an “emerging investment manager” if the MWDBE manager had assets of at least $10 million but less than $10 billion at the time of the initial contract with the retirement system, pension fund, or investment board.
SB 3638 also exempts contracts for investment services with an emerging investment manager from competitive-bidding requirements. Under current law, the following contracts are exempt from competitive-bidding requirements: (1) sole source procurements; (2) emergency procurements; (3) at the discretion of the pension fund, retirement system, or investment board, contracts that are nonrenewable and one year or less in duration, so long as the contract has a value of less than $20,000; and (4) in the discretion of the pension fund, retirement system, or investment board, contracts for follow-on funds with the same fund sponsor through closed-end funds.
SB 3638 takes effect immediately upon becoming law.