HB0142 EngrossedLRB101 02983 RJF 47991 b

1    AN ACT concerning finance.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Business Enterprise for Minorities, Women,
5and Persons with Disabilities Act is amended by changing
6Sections 4f, 6, and 8f as follows:
 
7    (30 ILCS 575/4f)
8    (Section scheduled to be repealed on June 30, 2020)
9    Sec. 4f. Award of State contracts to professional service
10firms.
11    (1) It is hereby declared to be the public policy of the
12State of Illinois to promote and encourage each State agency
13and public institution of higher education to use businesses
14owned by minorities, women, and persons with disabilities in
15the area of goods and services, including, but not limited to,
16insurance services, investment management services,
17information technology services, accounting services,
18architectural and engineering services, and legal services.
19Furthermore, each State agency and public institution of higher
20education shall utilize such firms to the greatest extent
21feasible within the bounds of financial and fiduciary prudence,
22and take affirmative steps to remove any barriers to the full
23participation of such firms in the procurement and contracting

 

 

HB0142 Engrossed- 2 -LRB101 02983 RJF 47991 b

1opportunities afforded.
2        (a) When a State agency or public institution of higher
3    education, other than a community college, awards a
4    contract for insurance services, for each State agency or
5    public institution of higher education, it shall be the
6    aspirational goal to use insurance brokers owned by
7    minorities, women, and persons with disabilities as
8    defined by this Act, for not less than 20% of the total
9    annual premiums or fees.
10        (b) When a State agency or public institution of higher
11    education, other than a community college, awards a
12    contract for investment services, for each State agency or
13    public institution of higher education, it shall be the
14    aspirational goal to use emerging investment managers
15    owned by minorities, women, and persons with disabilities
16    as defined by this Act, for not less than 20% of the total
17    funds under management. Furthermore, it is the
18    aspirational goal that not less than 20% of the direct
19    asset managers of the State funds be minorities, women, and
20    persons with disabilities.
21        (c) When a State agency or public institution of higher
22    education, other than a community college, awards
23    contracts for information technology services, accounting
24    services, architectural and engineering services, and
25    legal services, for each State agency and public
26    institution of higher education, it shall be the

 

 

HB0142 Engrossed- 3 -LRB101 02983 RJF 47991 b

1    aspirational goal to use such firms owned by minorities,
2    women, and persons with disabilities as defined by this Act
3    and lawyers who are minorities, women, and persons with
4    disabilities as defined by this Act, for not less than 20%
5    of the total dollar amount of State contracts.
6        (d) When a community college awards a contract for
7    insurance services, investment services, information
8    technology services, accounting services, architectural
9    and engineering services, and legal services, it shall be
10    the aspirational goal of each community college to use
11    businesses owned by minorities, women, and persons with
12    disabilities as defined in this Act for not less than 20%
13    of the total amount spent on contracts for these services
14    collectively. When a community college awards contracts
15    for investment services, contracts awarded to investment
16    managers who are not emerging investment managers as
17    defined in this Act shall not be considered businesses
18    owned by minorities, women, or persons with disabilities
19    for the purposes of this Section.
20    (2) As used in this Section:
21        "Accounting services" means the measurement,
22    processing and communication of financial information
23    about economic entities including, but is not limited to,
24    financial accounting, management accounting, auditing,
25    cost containment and auditing services, taxation and
26    accounting information systems.

 

 

HB0142 Engrossed- 4 -LRB101 02983 RJF 47991 b

1        "Architectural and engineering services" means
2    professional services of an architectural or engineering
3    nature, or incidental services, that members of the
4    architectural and engineering professions, and individuals
5    in their employ, may logically or justifiably perform,
6    including studies, investigations, surveying and mapping,
7    tests, evaluations, consultations, comprehensive planning,
8    program management, conceptual designs, plans and
9    specifications, value engineering, construction phase
10    services, soils engineering, drawing reviews, preparation
11    of operating and maintenance manuals, and other related
12    services.
13        "Emerging investment manager" means an investment
14    manager or claims consultant having assets under
15    management below $10 billion or otherwise adjudicating
16    claims.
17        "Information technology services" means, but is not
18    limited to, specialized technology-oriented solutions by
19    combining the processes and functions of software,
20    hardware, networks, telecommunications, web designers,
21    cloud developing resellers, and electronics.
22        "Insurance broker" means an insurance brokerage firm,
23    claims administrator, or both, that procures, places all
24    lines of insurance, or administers claims with annual
25    premiums or fees of at least $5,000,000 but not more than
26    $10,000,000.

 

 

HB0142 Engrossed- 5 -LRB101 02983 RJF 47991 b

1        "Legal services" means work performed by a lawyer
2    including, but not limited to, contracts in anticipation of
3    litigation, enforcement actions, or investigations.
4    (3) Each State agency and public institution of higher
5education shall adopt policies that identify its plan and
6implementation procedures for increasing the use of service
7firms owned by minorities, women, and persons with
8disabilities.
9    (4) The Except as provided in subsection (5), the Council
10shall file no later than March 1 of each year an annual report
11to the Governor and the General Assembly. The report filed with
12the General Assembly shall be filed as required in Section 3.1
13of the General Assembly Organization Act. This report shall:
14(i) identify the service firms used by each State agency and
15public institution of higher education, (ii) identify the
16actions it has undertaken to increase the use of service firms
17owned by minorities, women, and persons with disabilities,
18including encouraging non-minority-owned firms to use other
19service firms owned by minorities, women, and persons with
20disabilities as subcontractors when the opportunities arise,
21(iii) state any recommendations made by the Council to each
22State agency and public institution of higher education to
23increase participation by the use of service firms owned by
24minorities, women, and persons with disabilities, and (iv)
25include the following:
26        (A) For insurance services: the names of the insurance

 

 

HB0142 Engrossed- 6 -LRB101 02983 RJF 47991 b

1    brokers or claims consultants used, the total of risk
2    managed by each State agency and public institution of
3    higher education by insurance brokers, the total
4    commissions, fees paid, or both, the lines or insurance
5    policies placed, and the amount of premiums placed; and the
6    percentage of the risk managed by insurance brokers, the
7    percentage of total commission, fees paid, or both, the
8    lines or insurance policies placed, and the amount of
9    premiums placed with each by the insurance brokers owned by
10    minorities, women, and persons with disabilities by each
11    State agency and public institution of higher education.
12        (B) For investment management services: the names of
13    the investment managers used, the total funds under
14    management of investment managers; the total commissions,
15    fees paid, or both; the total and percentage of funds under
16    management of emerging investment managers owned by
17    minorities, women, and persons with disabilities,
18    including the total and percentage of total commissions,
19    fees paid, or both by each State agency and public
20    institution of higher education.
21        (C) The names of service firms, the percentage and
22    total dollar amount paid for professional services by
23    category by each State agency and public institution of
24    higher education.
25        (D) The names of service firms, the percentage and
26    total dollar amount paid for services by category to firms

 

 

HB0142 Engrossed- 7 -LRB101 02983 RJF 47991 b

1    owned by minorities, women, and persons with disabilities
2    by each State agency and public institution of higher
3    education.
4        (E) The total number of contracts awarded for services
5    by category and the total number of contracts awarded to
6    firms owned by minorities, women, and persons with
7    disabilities by each State agency and public institution of
8    higher education.
9    (5) (Blank). For community college districts, the Business
10Enterprise Council shall only report the following information
11for each community college district: (i) the name of the
12community colleges in the district, (ii) the name and contact
13information of a person at each community college appointed to
14be the single point of contact for vendors owned by minorities,
15women, or persons with disabilities, (iii) the policy of the
16community college district concerning certified vendors, (iv)
17the certifications recognized by the community college
18district for determining whether a business is owned or
19controlled by a minority, woman, or person with a disability,
20(v) outreach efforts conducted by the community college
21district to increase the use of certified vendors, (vi) the
22total expenditures by the community college district in the
23prior fiscal year in the divisions of work specified in
24paragraphs (a), (b), and (c) of subsection (1) of this Section
25and the amount paid to certified vendors in those divisions of
26work, and (vii) the total number of contracts entered into for

 

 

HB0142 Engrossed- 8 -LRB101 02983 RJF 47991 b

1the divisions of work specified in paragraphs (a), (b), and (c)
2of subsection (1) of this Section and the total number of
3contracts awarded to certified vendors providing these
4services to the community college district. The Business
5Enterprise Council shall not make any utilization reports under
6this Act for community college districts for Fiscal Year 2015
7and Fiscal Year 2016, but shall make the report required by
8this subsection for Fiscal Year 2017 and for each fiscal year
9thereafter. The Business Enterprise Council shall report the
10information in items (i), (ii), (iii), and (iv) of this
11subsection beginning in September of 2016. The Business
12Enterprise Council may collect the data needed to make its
13report from the Illinois Community College Board.
14    (6) The status of the utilization of services shall be
15discussed at each of the regularly scheduled Business
16Enterprise Council meetings. Time shall be allotted for the
17Council to receive, review, and discuss the progress of the use
18of service firms owned by minorities, women, and persons with
19disabilities by each State agency and public institution of
20higher education; and any evidence regarding past or present
21racial, ethnic, or gender-based discrimination which directly
22impacts a State agency or public institution of higher
23education contracting with such firms. If after reviewing such
24evidence the Council finds that there is or has been such
25discrimination against a specific group, race or sex, the
26Council shall establish sheltered markets or adjust existing

 

 

HB0142 Engrossed- 9 -LRB101 02983 RJF 47991 b

1sheltered markets tailored to address the Council's specific
2findings for the divisions of work specified in paragraphs (a),
3(b), and (c) of subsection (1) of this Section.
4(Source: P.A. 99-462, eff. 8-25-15; 99-642, eff. 7-28-16;
5100-391, eff. 8-25-17.)
 
6    (30 ILCS 575/6)  (from Ch. 127, par. 132.606)
7    (Section scheduled to be repealed on June 30, 2020)
8    Sec. 6. Agency compliance plans. Each State agency and
9public institutions of higher education under the jurisdiction
10of this Act shall file with the Council an annual compliance
11plan which shall outline the goals of the State agency or
12public institutions of higher education for contracting with
13businesses owned by minorities, women, and persons with
14disabilities for the then current fiscal year, the manner in
15which the agency intends to reach these goals and a timetable
16for reaching these goals. The Council shall review and approve
17the plan of each State agency and public institutions of higher
18education and may reject any plan that does not comply with
19this Act or any rules or regulations promulgated pursuant to
20this Act.
21    (a) The compliance plan shall also include, but not be
22limited to, (1) a policy statement, signed by the State agency
23or public institution of higher education head, expressing a
24commitment to encourage the use of businesses owned by
25minorities, women, and persons with disabilities, (2) the

 

 

HB0142 Engrossed- 10 -LRB101 02983 RJF 47991 b

1designation of the liaison officer provided for in Section 5 of
2this Act, (3) procedures to distribute to potential contractors
3and vendors the list of all businesses legitimately classified
4as businesses owned by minorities, women, and persons with
5disabilities and so certified under this Act, (4) procedures to
6set separate contract goals on specific prime contracts and
7purchase orders with subcontracting possibilities based upon
8the type of work or services and subcontractor availability,
9(5) procedures to assure that contractors and vendors make good
10faith efforts to meet contract goals, (6) procedures for
11contract goal exemption, modification and waiver, and (7) the
12delineation of separate contract goals for businesses owned by
13minorities, women, and persons with disabilities.
14    (b) Approval of the compliance plans shall include such
15delegation of responsibilities to the requesting State agency
16or public institution of higher education as the Council deems
17necessary and appropriate to fulfill the purpose of this Act.
18Such responsibilities may include, but need not be limited to
19those outlined in subsections (1), (2) and (3) of Section 7,
20paragraph (a) of Section 8, and Section 8a of this Act.
21    (c) Each State agency and public institution of higher
22education under the jurisdiction of this Act shall file with
23the Council an annual report of its utilization of businesses
24owned by minorities, women, and persons with disabilities
25during the preceding fiscal year including lapse period
26spending and a mid-fiscal year report of its utilization to

 

 

HB0142 Engrossed- 11 -LRB101 02983 RJF 47991 b

1date for the then current fiscal year. The reports shall
2include a self-evaluation of the efforts of the State agency or
3public institution of higher education to meet its goals under
4the Act.
5    (d) Notwithstanding any provisions to the contrary in this
6Act, any State agency or public institution of higher education
7which administers a construction program, for which federal law
8or regulations establish standards and procedures for the
9utilization of minority-owned and women-owned businesses and
10disadvantaged businesses, shall implement a disadvantaged
11business enterprise program to include minority-owned and
12women-owned businesses and disadvantaged businesses, using the
13federal standards and procedures for the establishment of goals
14and utilization procedures for the State-funded, as well as the
15federally assisted, portions of the program. In such cases,
16these goals shall not exceed those established pursuant to the
17relevant federal statutes or regulations. Notwithstanding the
18provisions of Section 8b, the Illinois Department of
19Transportation is authorized to establish sheltered markets
20for the State-funded portions of the program consistent with
21federal law and regulations. Additionally, a compliance plan
22which is filed by such State agency or public institution of
23higher education pursuant to this Act, which incorporates
24equivalent terms and conditions of its federally-approved
25compliance plan, shall be deemed approved under this Act.
26    (e) Each community college district shall file the annual

 

 

HB0142 Engrossed- 12 -LRB101 02983 RJF 47991 b

1compliance plan, mid-fiscal year report, and annual report as
2specified in paragraphs (a) and (c) of this Section with the
3Illinois Community College Board. The Illinois Community
4College Board shall compile and submit the reports required
5under this Section to the Secretary of the Council.
6(Source: P.A. 99-462, eff. 8-25-15; 100-391, eff. 8-25-17.)
 
7    (30 ILCS 575/8f)
8    (Section scheduled to be repealed on June 30, 2020)
9    Sec. 8f. Annual report. The Council shall file no later
10than March 1 of each year, an annual report that shall detail
11the level of achievement toward the goals specified in this Act
12over the 3 most recent fiscal years. The annual report shall
13include, but need not be limited to the following:
14        (1) a summary detailing expenditures subject to the
15    goals, the actual goals specified, and the goals attained
16    by each State agency and public institution of higher
17    education;
18        (2) a summary of the number of contracts awarded and
19    the average contract amount by each State agency and public
20    institution of higher education;
21        (3) an analysis of the level of overall goal
22    achievement concerning purchases from minority-owned
23    businesses, women-owned businesses, and businesses owned
24    by persons with disabilities;
25        (4) an analysis of the number of businesses owned by

 

 

HB0142 Engrossed- 13 -LRB101 02983 RJF 47991 b

1    minorities, women, and persons with disabilities that are
2    certified under the program as well as the number of those
3    businesses that received State procurement contracts; and
4        (5) a summary of the number of contracts awarded to
5    businesses with annual gross sales of less than $1,000,000;
6    of $1,000,000 or more, but less than $5,000,000; of
7    $5,000,000 or more, but less than $10,000,000; and of
8    $10,000,000 or more; and .
9        (6) for community college districts, the Council shall
10    only report the following information for each community
11    college district: (i) the name of the community colleges in
12    the district; (ii) the name and contact information of a
13    person at each community college appointed to be the single
14    point of contact for vendors owned by minorities, women, or
15    persons with disabilities; (iii) the policy of the
16    community college district concerning certified vendors;
17    (iv) the certifications recognized by the community
18    college district for determining whether a business is
19    owned or controlled by a minority, woman, or person with a
20    disability; (v) outreach efforts conducted by the
21    community college district to increase the use of certified
22    vendors; (vi) the total expenditures by the community
23    college district in the prior fiscal year in the divisions
24    of work specified in paragraph (d) of subsection (1) of
25    Section 4f and the amount paid to certified vendors in
26    those divisions of work; (vii) the total number of

 

 

HB0142 Engrossed- 14 -LRB101 02983 RJF 47991 b

1    contracts entered into for the divisions of work specified
2    in paragraph (d) of subsection (1) of Section 4f and the
3    total number of contracts awarded to certified vendors
4    providing these services to the community college
5    district; (viii) the total expenditures and the total
6    number of State contracts entered into by the community
7    college district in the prior fiscal year as specified in
8    paragraph (a) of Section 4, and the amount paid to
9    certified vendors and the total number of contract awarded
10    to vendors; and (ix) the total expenditures and the total
11    number of contracts entered into by the community college
12    district in the prior fiscal year as specified under
13    paragraph (b) of Section 4, and the amount paid to
14    certified vendors and the total number of contracts awarded
15    to certified vendors.
16    Each community college shall file the information required
17under paragraph (6) with the Illinois Community College Board.
18The Illinois Community College Board shall compile and submit
19the reports required under paragraph (6) to the Secretary of
20the Council.
21(Source: P.A. 99-462, eff. 8-25-15; 100-391, eff. 8-25-17.)