HB5421 98TH GENERAL ASSEMBLY

LRB098 18515 RPM 53652 b

98TH GENERAL ASSEMBLY
State of Illinois
2013 and 2014
HB5421

Introduced , by Rep. Monique D. Davis

SYNOPSIS AS INTRODUCED:

215 ILCS 5/Art. XLVI heading new
215 ILCS 5/1700 new
215 ILCS 5/1705 new
215 ILCS 5/1710 new
215 ILCS 5/1715 new
215 ILCS 5/1720 new
215 ILCS 5/1725 new

Amends the Illinois Insurance Code to create the Diversity Reporting Article within the Code. Sets forth legislative findings and definitions. Provides that all companies that collect premiums greater than $1,000,000 shall submit a report to the Director of Insurance concerning its procurement efforts regarding enterprises owned by minorities, women, qualified service-disabled veterans, and persons with disabilities. Provides that an entity that does not enter into contracts to procure goods or services in this State satisfies the reporting requirements by filing a statement with the Director attesting that it does not enter into procurement contracts in Illinois. Sets forth provisions concerning filing, penalties, and reporting updates and public availability.

FISCAL NOTE ACT MAY APPLY

A BILL FOR

AN ACT concerning regulation.

Be it enacted by the People of the State of Illinois, represented in the General Assembly:

Section 5. The Illinois Insurance Code is amended by adding Art. XLVI as follows:

(215 ILCS 5/Art. XLVI heading new)

ARTICLE XLVI. DIVERSITY REPORTING

(215 ILCS 5/1700 new)

Sec. 1700. Legislative findings. The General Assembly finds that enterprises owned by minorities, women, qualified service-disabled veterans, and persons with disabilities are under-utilized in the sale of goods and services used in the insurance industry, and accordingly deems it a prudent business practice and in the interests of the people of the State of Illinois to develop and promote economic opportunities for enterprises owned by minorities, women, qualified service-disabled veterans, and persons with disabilities in the insurance industry whenever possible.

The General Assembly further declares that it is the public policy of this State to promote and encourage the continuous economic development of businesses owned by minorities, women, qualified service-disabled veterans, and persons with disabilities by providing that each major insurer submit to the Director of Insurance a report explaining the reporting entity's supplier diversity statement and expressing its goals regarding enterprises. The Director shall publish the reports on the Department of Insurance's Internet website, so that those reports will help facilitate these supplier relationships.

(215 ILCS 5/1705 new)

Sec. 1705. Definitions. In this Article:

"Department" means the Department of Insurance.

"Director" means the Director of Insurance.

"Enterprise" means a minority owned business, a business owned by a person with a disability, or a female owned business, as those terms are defined in the Business Enterprise for Minorities, Females, and Persons with Disabilities Act, or a business owned by a qualified service-disabled veteran that has been certified by the Department of Veterans' Affairs and the Department of Central Management Services pursuant to Section 45-57 of the Illinois Procurement Code.

"Reporting entity" means all companies licensed by the Department of Insurance.

(215 ILCS 5/1710 new)

Sec. 1710. Applicability. All companies that collect premiums greater than $1,000,000 shall submit a report to the Director concerning its procurement efforts regarding enterprises owned by minorities, women, qualified service-disabled veterans, and persons with disabilities during the reporting period set forth in Sections 1720 and 1725 of this Code.

(215 ILCS 5/1715 new)

Sec. 1715. Filing.

(a) Each reporting entity shall file a report in accordance with this Article concerning its procurement involving enterprises owned by minorities, women, qualified service-disabled veterans, and persons with disabilities.

(b) The contents of the report shall include, but not be limited to, all of the following:

(1) The reporting entity's supplier diversity policy statement.

(2) The reporting entity's outreach and communications to enterprises, including the following:

(A) The means by which the reporting entity encourages and seeks out enterprises to become potential suppliers.

(B) The means by which the reporting entity encourages its employees involved in procurement to seek enterprises to become potential suppliers.

(C) The means by which the reporting entity conducts outreach and communication to enterprises.

(D) The means by which the reporting entity supports organizations that promote or certify enterprises.

(E) Information regarding appropriate contacts at the reporting entity for interested enterprises.

(3) Information about which procurements are made from enterprises with at least a majority of the enterprise's workforce in Illinois, with each category aggregated separately, to the extent that information is readily accessible.

A reporting entity may include other relevant information in the report.

(c) A reporting entity that does not enter into contracts to procure goods or services in this State satisfies the requirements of this Section by filing a statement with the Director attesting that it does not enter into procurement contracts in Illinois.

(d) Nothing in this Section shall be construed to require quotas, set-asides, or preferences in a reporting entity's procurement of goods or services, nor does this Section apply to insurer producer or licensee contracts. Reporting entities retain the authority to use business judgment to select the supplier for a particular contract.

(e) Nothing in this Section shall preclude a reporting entity that is a member of an insurance holding company system, as defined in Section 131.1 of this Code, from complying with this Section through a single filing on behalf of the entire group of affiliated companies.

(215 ILCS 5/1720 new)

Sec. 1720. Penalties. Failure to file the report required by Section 1715 of this Code by July 1, 2015 may subject the reporting entity to a civil penalty to be determined by the Director, not to exceed $5,000, or, if the act or practice was willful, a civil penalty not to exceed $10,000. A reporting entity may request, and the Director may grant, a 30-day extension to file the report if needed due to unintended or unforeseen delays. The Director may adopt rules as may be necessary or appropriate for the administration and enforcement of this Article.

(215 ILCS 5/1725 new)

Sec. 1725. Updates and public availability.

(a) Not later than July 1, 2017, each reporting entity shall update its report and submit the new report to the Director once every 2 years.

(b) By July 31, 2015, the Director shall establish and maintain a link on the Department's Internet website that provides public access to the contents of each reporting entities' report on enterprise procurement efforts. The Director shall include a statement on the Department's Internet website indicating that the information contained in the reporting entities' report on enterprise procurement efforts is provided for informational purposes only.