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HB 2112

Relating to exemptions from excise taxes

2025 Regular Session Introduced by Tom Clark and 8 co-sponsors

HB 2112 strengthens regulations for fiduciaries of Illinois pension funds, preventing conflicts of interest and protecting public employee benefits from misuse.

To House Revenue
#taxation
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WeVote Research Nonpartisan
Bill Summary · HB 2112

Summary of HB 2112: Relating to Exemptions from Excise Taxes

Bill Overview

  • Bill Number: HB 2112
  • Introduced By: Rep. Tony M. McCombie
  • Introduced On: January 29, 2025
  • Current Status: To House Revenue
  • Classification: Bill
  • Subject: Taxation

Purpose and Intent

HB 2112 aims to amend the Illinois Pension Code, specifically focusing on prohibited transactions related to retirement systems and pension funds. The bill seeks to clarify and reinforce regulations governing fiduciaries to ensure the integrity of transactions involving public employee benefits.

Key Provisions

The bill introduces several important changes to Section 1-110 of the Illinois Pension Code:

  1. Prohibited Transactions:

    • Fiduciaries are prohibited from engaging in transactions that could benefit themselves or parties in interest at the expense of the retirement system or pension fund.
    • Specific prohibitions include:
      • Selling or leasing property for inadequate consideration.
      • Lending money without adequate security or at unreasonable interest rates.
      • Providing goods or services for less than adequate consideration.
      • Transferring assets for less than adequate consideration.

  2. Fiduciary Responsibilities:

    • Fiduciaries must not act in their own interest or for parties whose interests conflict with those of the retirement system or its beneficiaries.
    • They are also barred from receiving personal benefits from transactions involving the retirement system.

  3. Penalties for Violations:

    • Violating certain provisions of the bill, particularly those related to conflicts of interest, is classified as a Class 4 felony.

  4. Exemptions:

    • The bill clarifies that fiduciaries can receive benefits as participants in the retirement system and reimbursement for expenses incurred while performing their duties.

Impact

  • Who is Affected:
    • The bill primarily impacts fiduciaries of retirement systems and pension funds, including board members, employees, and consultants.
    • It also affects public employees who are beneficiaries of these retirement systems, ensuring their interests are protected from potential conflicts of interest.

Procedural Timeline

  • January 29, 2025: Bill filed with the Clerk.
  • February 4, 2025: First reading and referred to the Rules Committee.
  • February 12, 2025: Assigned to the Finance Committee.
  • March 4, 2025: Assigned to the Executive Committee.
  • March 12, 2025: Passed in the Executive Committee with a "Do Pass" recommendation.
  • March 27, 2025: Second reading held; bill placed on the calendar for further debate.
  • May 31, 2025: Rule 19(a) re-referral to the Rules Committee; third reading deadline extended.

Conclusion

HB 2112 seeks to enhance the regulatory framework surrounding fiduciary responsibilities in Illinois pension funds, aiming to prevent conflicts of interest and protect the integrity of public employee benefits. The bill is currently under consideration in the House Revenue Committee, with further legislative actions anticipated.

Compiled from official sources — confirm details with the bill’s official record.

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