|
Rep. Elizabeth "Lisa" Hernandez
Filed: 3/21/2023
| | 10300HB3720ham001 | | LRB103 29497 DTM 59775 a |
|
|
1 | | AMENDMENT TO HOUSE BILL 3720
|
2 | | AMENDMENT NO. ______. Amend House Bill 3720 by replacing |
3 | | everything after the enacting clause with the following:
|
4 | | "Section 5. The Business Corporation Act of 1983 is |
5 | | amended by changing Section 8.12 as follows: |
6 | | (805 ILCS 5/8.12) |
7 | | Sec. 8.12. Female, minority, and LGBTQ directors. |
8 | | (a) Findings and purpose. The General Assembly finds that |
9 | | women, minorities, and LGBTQ people are still largely |
10 | | underrepresented nationally in positions of corporate |
11 | | authority, such as serving as a director on a corporation's |
12 | | board of directors. This low representation could be |
13 | | contributing to the disparity seen in wages made by females |
14 | | and minorities versus their white male counterparts. Increased |
15 | | representation of these individuals as directors on boards of |
16 | | directors for corporations may boost the Illinois economy, |
|
| | 10300HB3720ham001 | - 2 - | LRB103 29497 DTM 59775 a |
|
|
1 | | improve opportunities for women, minorities, and LGBTQ people |
2 | | in the workplace, and foster an environment in Illinois where |
3 | | the business community is representative of our residents. |
4 | | Therefore, it is the intent of the General Assembly to gather |
5 | | more data and study this issue within the State so that |
6 | | effective policy changes may be implemented to eliminate this |
7 | | disparity. |
8 | | (b) As used in this Section: |
9 | | "Annual report" means the report submitted annually to the |
10 | | Secretary of State pursuant to this Act. |
11 | | "Female" means a person who is a citizen or
lawful |
12 | | permanent resident of the United States and who |
13 | | self-identifies as a woman, without regard to the individual's |
14 | | designated sex at birth. |
15 | | "Minority person" means a person who is a
citizen or |
16 | | lawful permanent resident of the United States and who is any |
17 | | of the following races or ethnicities: |
18 | | (1) American Indian or Alaska Native (a person
having |
19 | | origins in any of the original peoples of North and South |
20 | | America, including Central America, and who maintains |
21 | | tribal affiliation or community attachment). |
22 | | (2) Asian (a person having origins in any of the
|
23 | | original peoples of the Far East, Southeast Asia, or the |
24 | | Indian subcontinent, including, but not limited to, |
25 | | Cambodia, China, India, Japan, Korea, Malaysia, Pakistan, |
26 | | the Philippine Islands, Thailand, and Vietnam). |
|
| | 10300HB3720ham001 | - 3 - | LRB103 29497 DTM 59775 a |
|
|
1 | | (3) Black or African American (a person having
origins |
2 | | in any of the black racial groups of Africa). Terms such as |
3 | | "Haitian" or "Negro" can be used in addition to "Black" or |
4 | | "African American". |
5 | | (4) Hispanic or Latino (a person of Cuban,
Mexican, |
6 | | Puerto Rican, South or Central American, or other Spanish |
7 | | culture or origin, regardless of race). |
8 | | (5) Native Hawaiian or Other Pacific Islander (a
|
9 | | person having origins in any of the original peoples of |
10 | | Hawaii, Guam, Samoa, or other Pacific Islands). |
11 | | (6) "Publicly held domestic or foreign corporation" |
12 | | means a corporation with outstanding shares listed on a |
13 | | major United States stock exchange. |
14 | | (c) Reporting to the Secretary of State. As soon as |
15 | | practical after August 27, 2019 (the effective date of Public |
16 | | Act 101-589), but no later than January 1, 2021, the following |
17 | | information shall be provided in a corporation's annual report |
18 | | submitted to the Secretary of State under this Act and made |
19 | | available by the Secretary of State to the public online as it |
20 | | is received: |
21 | | (1) Whether the corporation is a publicly held |
22 | | domestic or foreign corporation with its principal |
23 | | executive office located in Illinois. |
24 | | (2) Where the corporation is a publicly held domestic |
25 | | or foreign corporation with its principal executive office |
26 | | located in Illinois, data on specific qualifications, |
|
| | 10300HB3720ham001 | - 4 - | LRB103 29497 DTM 59775 a |
|
|
1 | | skills, and experience that the corporation considers for |
2 | | its board of directors, nominees for the board of |
3 | | directors, and executive officers. |
4 | | (3) Where the corporation is a publicly held domestic |
5 | | or foreign corporation with its principal executive office |
6 | | located in Illinois, the self-identified gender of each |
7 | | member of its board of directors. |
8 | | (4) Where the corporation is a publicly held domestic |
9 | | or foreign corporation with its principal executive office |
10 | | located in Illinois, whether each member of its board of |
11 | | directors self-identifies as a minority person and, if so, |
12 | | which race or ethnicity to which the member belongs. |
13 | | (5) Where the corporation is a publicly held domestic |
14 | | or foreign corporation with its principal executive office |
15 | | located in Illinois, the self-identified sexual |
16 | | orientation of each member of its board of directors. |
17 | | (6) Where the corporation is a publicly held domestic |
18 | | or foreign corporation with its principal executive office |
19 | | located in Illinois, the self-identified gender identity |
20 | | of each member of its board of directors. |
21 | | (7) Where the corporation is a publicly held domestic |
22 | | or foreign corporation with its principal executive office |
23 | | located in Illinois, a description of the corporation's |
24 | | process for identifying and evaluating nominees for the |
25 | | board of directors, including whether and, if so, how |
26 | | demographic diversity is considered. |
|
| | 10300HB3720ham001 | - 5 - | LRB103 29497 DTM 59775 a |
|
|
1 | | (8) Where the corporation is a publicly held domestic |
2 | | or foreign corporation with its principal executive office |
3 | | located in Illinois, a description of the corporation's |
4 | | process for identifying and appointing executive officers, |
5 | | including whether and, if so, how demographic diversity is |
6 | | considered. |
7 | | (9) Where the corporation is a publicly held domestic |
8 | | or foreign corporation with its principal executive office |
9 | | located in Illinois, a description of the corporation's |
10 | | policies and practices for promoting diversity, equity, |
11 | | and inclusion among its board of directors and executive |
12 | | officers. |
13 | | (10) Where the corporation is a publicly held domestic |
14 | | or foreign corporation with its principal executive office |
15 | | located in Illinois, the percentage of minority supplier |
16 | | procurements from business enterprises owned by minority |
17 | | persons, women, or persons with disabilities as those |
18 | | terms are defined in Section 2 of the Business Enterprise |
19 | | for Minorities, Women, and Persons with Disabilities Act. |
20 | | Information reported under this subsection shall be |
21 | | updated in each annual report filed with the Secretary of |
22 | | State thereafter. The Secretary of State shall establish a |
23 | | publicly accessible and searchable database of the information |
24 | | in each annual report. |
25 | | (d) Beginning no later than March 1, 2021, and every March |
26 | | 1 thereafter, the University of Illinois Systems shall review |
|
| | 10300HB3720ham001 | - 6 - | LRB103 29497 DTM 59775 a |
|
|
1 | | the information reported and published under subsection (c) |
2 | | and shall publish on its website a report that provides |
3 | | aggregate data on the demographic characteristics of the |
4 | | boards of directors and executive officers of corporations |
5 | | filing an annual report for the preceding year along with an |
6 | | individualized rating for each corporation. The report shall |
7 | | also identify strategies for promoting diversity and inclusion |
8 | | among boards of directors and corporate executive officers. |
9 | | (e) The University of Illinois System shall establish a |
10 | | rating system assessing the representation of women, |
11 | | minorities, and LGBTQ people on corporate boards of directors |
12 | | of those corporations that are publicly held domestic or |
13 | | foreign corporations with their principal executive office |
14 | | located in Illinois based on the information gathered under |
15 | | this Section. The rating system shall consider, among other |
16 | | things: compliance with the demographic reporting obligations |
17 | | in subsection (c); the corporation's policies and practices |
18 | | for encouraging diversity in recruitment, board membership, |
19 | | and executive appointments; and the demographic diversity of |
20 | | board seats and executive positions.
|
21 | | (Source: P.A. 101-589, eff. 8-27-19; 102-223, eff. 1-1-22; |
22 | | 102-813, eff. 5-13-22.)".
|