HB5914 103RD GENERAL ASSEMBLY

LRB103 43167 HLH 76429 b

103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024
HB5914

Introduced , by Rep. Sonya M. Harper

SYNOPSIS AS INTRODUCED:

New Act
5 ILCS 100/5-45.62 new
30 ILCS 105/5.1015 new

Creates the Enslavement Era Disclosure and Redress Act. Requires each contractor that participates in a competitive bid with the State to review its records for evidence of the contractor's or a related party's participation in slaveholding or the slave trade and to make certain disclosures with respect to that participation. Contains notice concerning public hearings following the disclosures. Provides that the Illinois Office of Equity shall appoint an administrator to oversee the program. Provides that each contractor that has disclosed participation in slaveholding or the slave trade shall provide the State with a statement of financial redress at the time of submitting its bid. Contains provisions creating a Redress Fund. Amends the State Finance Act to make conforming changes.

A BILL FOR

AN ACT concerning State government.

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

Section 1. Short title. This Act may be cited as the Enslavement Era Disclosure and Redress Act.

Section 5. Definitions. In this Act:

"Administrator" means the individual appointed by the Office to oversee, implement, and enforce the provisions of this Act.

"Awarding authority" means a subordinate or component entity or person of the State that has the authority to enter into a contract or agreement for the provision of goods or services on behalf of the State.

"Company" means any person, firm, corporation, partnership, other business entity.

"Contract" means any agreement, franchise, lease, or concession, including an agreement for any occasional professional or technical personal services, the performance of any work or service, the provision of any materials or supplies, or the rendering of any service to the State of Illinois or the public that is let, awarded, or entered into with or on behalf of the State or any awarding authority.

"Contractor" means any company that has submitted a bid or is in the process of submitting a bid, whether competitive or not, to contract with the State or any awarding authority of the State.

"Descendant" means any living individual who can trace the individual's lineage or ancestry directly or indirectly to an enslaved person or persons. "Descendant" includes, but is not limited to, children, grandchildren, great-grandchildren, and subsequent generations, whether through biological or adoptive relationships, as well as individuals with verifiable genealogical evidence or documentation that establishes a familial connection to an enslaved person. The term "descendant" is intended to encompass a broad range of familial connections, recognizing the historical and societal impacts of the institution of slavery on the affected individuals and their families.

"Eligible redress project" means any reparatory project or program identified by the relevant stakeholders for reparations in tandem with the Illinois Legislative Black Caucus.

"Enslaved person" means any person who lived in the United States or the territories that preceded the establishment of the United States that became part of the United States:

(1) who was subject to the will of another;

(2) who was deemed by law to be the property of another;

(3) whose person and services were wholly under the control of another in a state of enforced compulsory service; and

(4) who could not legally leave enforced compulsory service to another on such person's own volition at any time during the person's lifetime and during the Enslavement Era.

"Enslavement Era" means the historical period during which the institution of slavery was legally recognized, practiced, and enforced in the United States, spanning from the early 17th Century until the ratification of the 13th Amendment to the United States Constitution in 1865.

"Investment" means to make use of an enslaved person for future benefits or advantages.

"Office" means the Illinois Office of Equity.

"Participant" means a person or entity who participated in slaveholding or participated in the slave trade.

"Participation in slaveholding" means having been a slaveholder during the Enslavement Era.

"Participation in the slave trade" means having:

(1) issued slavery insurance policies, including, but not limited to, policies issued to slaveholders for damage to or death of enslaved persons and policies issued to insure business transactions and operations related to the traffic in enslaved persons;

(2) purchased, sold, or held enslaved persons for the purposes of transferring them;

(3) provided loans to others to facilitate the purchase, sale, transport, or enslavement of enslaved persons;

(4) used enslaved persons as collateral for insurance policies, loans, or other transactions;

(5) facilitated the traffic in enslaved persons by transporting such persons by boat or rail; or

(6) provided any other services to aid and abet the traffic in enslaved persons.

"Predecessor entity" means an entity whose ownership, title, and interest, including all rights, benefits, duties, and liabilities were acquired in an uninterrupted chain of succession by the entity.

"Profit" means any economic advantage or financial benefit derived from the use of enslaved persons.

"Related party" means any parent entity, subsidiary, or predecessor entity of the contractor or company.

"Slaveholder" means an individual holder of an enslaved person or an owner of a company that held enslaved persons for the purpose of labor, purchase, sale, or financing.

"Slavery era insurance" means slavery insurance policies, including, but not limited to, policies issued to participants for damage to or death of enslaved persons and policies issued to insure business transactions and operations related to the traffic in enslaved persons; evidence of the purchase and sale of enslaved persons; provision of loans to purchase enslaved persons; or the use of enslaved persons as collateral for insurance policies, loans, or other transactions.

"Slave trade" means: (1) all acts involved in the capture, acquisition, or disposal of a person with the intent to reduce that person to slavery; (2) all acts involved in the acquisition of an enslaved person with a view to selling or exchanging that enslaved person; and (3) all acts of disposal by sale or exchange of an enslaved person, including acts involved in the facilitation of these exchanges through the provision of financial vehicles or insurance.

Section 10. Purpose.

(a) Numerous American businesses across various industries, including insurance, banking, tobacco, cotton, sugar, railroads, and shipping, reaped substantial profits by exploiting the uncompensated labor of enslaved persons. Consequently, these businesses and the individuals managing them directly profited from the labor of enslaved persons and directly benefited from insurance policies that insured enslaved persons. This intertwining of economic interests highlights the extent to which the exploitation of enslaved persons permeated the foundation of various American industries. However, very few American industries and the underlying businesses and individuals have adequately acknowledged their connection to the enslavement era.

(b) The citizens of Illinois, including descendants of enslaved persons, are entitled to complete transparency regarding any involvement or profits acquired through slavery by companies seeking to conduct business in the State. This disclosure is essential to ensure that the community is informed about the historical connections and practices of the companies operating within its jurisdiction, fostering a culture of accountability and responsible business practices.

(c) This Act is a call to the companies that participated in slaveholding and the slave trade to acknowledge and address the enduring impacts of the Enslavement Era on our society, and to promote responsible corporate citizenship. It is essential for companies to recognize their historical connections to the Enslavement Era and take responsibility for any past actions that have contributed to the perpetuation of inequities. By actively engaging in redress efforts, corporations demonstrate their commitment to fostering a more just and equitable society. Remedying the harms resulting from the crimes and atrocities of the Enslavement Era is not only a moral imperative and an international standard but also a crucial step toward ensuring a cohesive and inclusive community. This Act serves to facilitate corporate transparency and accountability and to encourage the implementation of concrete measures aimed at alleviating the long-lasting adverse effects of the slave trade on descendants of enslaved persons.

(d) The purpose of this Act is to:

(1) promote the investigation of any participation in slaveholding, the slave trade, or both by companies or contractors that do business with the State;

(2) establish a system that (i) makes publicly available full and accurate disclosure of company or contractor records related to the participation in slaveholding, the slave trade, or both, (ii) provides the opportunity for public notice and comment before the State contracts with companies or contractors that participated in slaveholding or the slave trade, and (iii) requires disclosure, to the extent applicable, of any records indicating:

(A) whether the company or contractor was a party to any insurance policy related to slaveholding;

(B) evidence of the purchase, sale, or lease of enslaved persons by the company or contractor;

(C) evidence of the use by the company or contractor of enslaved persons as collateral for insurance policies, loans, or other transactions;

(D) evidence of the provision, or receipt, of loans by the company or contractor to purchase enslaved persons;

(E) evidence of insuring transactions for enslaved persons; and

(F) any other company or contractor records evidencing participation in slaveholding or participation in the slave trade;

(3) encourage corporate transparency and accountability through the establishment of a process pursuant to which the Office shall develop and fund eligible redress projects to assist in redress efforts; and

(4) establish a governance structure to monitor and enforce the provisions of this Act.

Section 15. Findings.

(a) Insurance policies from the Enslavement Era, which have been discovered in the archives of several insurance companies, document insurance coverage to slaveholders for damage to or death of enslaved persons. In some cases, existing insurance firms or their predecessor firms issued these policies.

(b) Records may exist that show that various companies, either directly or through their parent entities, subsidiaries or predecessors in interest or otherwise, bought or sold enslaved persons, used enslaved persons as collateral for insurance policies or other transactions, provided loans to purchase enslaved persons, insured those transactions, and provided related or other services to aid and abet those transactions.

(c) These insurance policies, loan documents, and other documents and records provide evidence of ill-gotten profits from slavery. Slaveholders and those involved in the slave trade, in turn, profited from the uncompensated labor of enslaved persons, even if those profits have long since been redistributed to shareholders. Industries that profited in this manner include, but are not limited to, capitalized insurers, financial service providers, textile companies, tobacco companies, railroad companies, shipping companies, the rice industry, the sugar industry, and entities in other industries whose successors in interest remain in existence today.

(d) The General Assembly finds and declares that the fact that slavery was legal in certain parts of the United States at the time that it occurred does not make the practice any less repugnant, abhorrent, or deplorable, nor does it in any way diminish the gravity of these wrongs or the importance of rectifying and remediating these tragedies.

(e) Many Illinois residents are descendants of enslaved persons and their ancestors were defined as property, dehumanized, separated from their families, coerced into performing labor without appropriate compensation or benefits, and were assaulted and abused. Enslaved persons were treated as chattel in every sense of the word, including being used as collateral for insurance policies, loans, and other transactions, and, in some instances, their ancestors' owners were compensated for damages by insurers.

(f) Appropriate compensation to enslaved persons for their labor otherwise would have been bequeathed to their descendants. As a result, companies and individuals who profited from the labor of enslaved persons were unjustly enriched.

(g) Residents of Illinois are entitled to the full disclosure of any and all information regarding the above-described transactions, and respect and recognition of the dignity of the enslaved persons and their descendants requires it.

(h) The General Assembly formally acknowledges the loss of assets that rightfully should be the property of descendants in the United States and extends its apologies to descendants who continue to suffer the legacy of slavery.

(i) The General Assembly finds that full disclosure of the facts and acknowledgment of the depth and scope of the participation in slaveholding and the slave trade and public hearings with respect thereto furthers the public interest by recognizing the dignity of enslaved persons and descendants and promotes healing in the State for enslaved persons, descendants, and those who participated in slaveholding or the slave trade.

(j) The General Assembly finds that public disclosure and public hearings based on those disclosures will promote knowledge of the nature and scope of the slaveholding and slave trading activities in Illinois and thereby will promote healing.

(k) The State of Illinois finds that the establishment of a fund, to which companies and contractors subject to this Act shall make monetary contributions, will promote healing and assist the State of Illinois in rectifying and remedying some of the shameful legacies of slaveholding and the slave trade, thereby protecting and promoting the dignity and welfare of Illinois residents and the Illinois community.

Section 17. Powers of the Administrator. The Administrator has the authority to take all actions necessary to implement and enforce this Act, subject to the direction and oversight of the Office.

Section 20. Compliance.

(a) Each contractor that participates in a competitive bid with the State of Illinois shall complete an affidavit certifying that, to the knowledge of the contractor, the contractor has reviewed any and all records that are in its possession or control or which, following due inquiry, are publicly available, including records of any related party, for evidence of the contractor's or related party's participation in the slaveholding or participation in the slave trade. If the contractor or any related party to the contractor has participated in slaveholding or participated in the slave trade, the affidavit shall, to the extent known to contractor, further disclose the names and ages of each enslaved person and slaveholder described in the records or information, as well as the evidence of transactions whereby the contractor, its parent entities, subsidiaries, or predecessors entities benefited or profited from participation in slaveholding or participation in the slave trade.

Beginning 30 days after the effective date of this Act, all contractors that participate in a competitive bid with the State of Illinois shall submit a completed affidavit to the Office by no later than 30 days prior to the submission of the bid to contract with the State. If additional time is needed for investigation or review, the contractor shall submit a request for extension to the Office no later than 30 days prior to submission of a bid. The request for extension shall provide an overview of the scope and nature of the investigation or review and an explanation of why additional time is needed to complete the disclosure. The contractor shall provide updates regarding completion of the affidavit to the Office every 30 days as necessary. Notwithstanding the foregoing, the contractor shall submit a completed affidavit no later than 90 days after the contractor's submission of a bid.

(b) All records disclosed in each contractor's affidavit shall be reviewed by the Administrator to determine whether the contractor or any related party to the contractor participated in slaveholding or the slave trade.

(c) The Administrator, after consultation with the Office, shall publish, within 90 days after submission of the affidavit, a public report based on the disclosures in the affidavit of each contractor that is found to have participated in slaveholding or the slave trade. The report shall summarize the nature of the contractor's or related party's participation in slaveholding and the slave trade, including all relevant information and records disclosed in each contractor's affidavit.

(d) The Administrator, after consultation with the Office, shall hold a public hearing to discuss the report within 45 days of its delivery to the Governor and General Assembly. The Administrator shall make the report publicly available no later than 10 business days before the scheduled date of the public hearing. A representative for the contractor shall attend the public hearing and answer any and all questions from Illinois officials and members of the public. The public hearing shall be held in an accessible public facility, accommodate virtual participation, and be recorded and published publicly.

(e) The Administrator shall provide notice of the public hearing to the public no later than 7 business date before the schedule date of the public hearing and provide notice of the public hearing to a representative of the contractor, for which the report to be discussed at the public hearing pertains to, no later than 10 business days before the scheduled state of the public hearing.

(f) Following the public hearing, the Administrator shall provide annual reports regarding further findings or disclosures on the part of any company or contractor found to have participated in slaveholding and the slave trade, if any.

(g) Hard copies of the initial and each annual report shall be maintained at all University of Illinois Campus libraries and shall be made available for public inspection upon request.

(h) A link to a webpage titled "Enslavement Disclosure and Redress" shall be placed on the State of Illinois Internet homepage. This Act, and all information pertaining to this Act, including names of all contractors who participated in slaveholding and the slave trade, affidavits, reports, public hearings, contracts, and redress actions, shall be publicly accessible through that link.

Section 25. Redress Fund; eligible redress projects.

(a) The Redress Fund is hereby established as a special fund in the State treasury. Moneys in the Fund shall be used by the Administrator for the purposes described in this Section. Moneys in the Fund shall be used for purposes including, but not limited to, providing educational support and support for economic development in the economically depressed areas of Illinois subjected to Jim Crow (apartheid) federal and State actions, such as redlining, or where a significant proportion of private property was seized or otherwise directly impacted in relation to projects conducted under the auspices of United States Department of Housing and Urban Development grants for urban renewal programs.

(b) The Administrator, after consultation with the Office, shall prepare guidelines for the use of moneys in the Fund and present those guidelines to the Illinois Legislative Black Caucus for approval no later than April 30, 2025. Thereafter, the Administrator shall make funding decisions in accordance with the guidelines and provide an annual report to the Office identifying the recipients of funds and the amount of funds contributed to each recipient.

(c) Each contractor who has disclosed participation in slaveholding or the slave trade shall provide the State of Illinois with a statement of financial redress at the time of submitting its bid. The statement of redress shall include a description of any amounts committed to the Redress Fund to date or programs developed or funded, or to be developed or funded, by the contractor.

(d) The contractor shall provide its financial contributions to the Redress Fund within 30 days after the effective date of its contract.

(e) The Administrator, after consultation with the Office and the State Treasurer, shall monitor all contractors that are subject to this Act in submitting their statements of redress. The Administrator, after consultation with the Office and the State Treasurer, shall prepare a report on contributions to and expenditures from the Redress Fund and each project funded by this Act, including the name of each project, the cost of each project, the goal of each project, and the authorized redress entities carrying out each project. The report shall be submitted to the Governor, the General Assembly, and the public as required under this Act.

Section 30. Administration. The Administrator, after consultation with the Office, shall:

(1) adopt rules to implement this Act within 60 days after the effective date of this Act;

(2) develop a form disclosure statement and affidavit within 60 days after the effective date of this Act;

(3) adopt rules that specify the form and content of the report required in instances where a company or contractor has participated in slaveholding or the slave trade;

(4) administer the requirements of this Act and monitor compliance through the Administrator, including investigation of alleged violations;

(5) publish and make open for public review annual reports detailing the compliance and noncompliance of relevant companies or contractors; and

(6) hold at least one public hearing each year to discuss implementation efforts, annual reports, materials generated by compliance with this Act, and other relevant matters.

Section 35. Enforcement.

(a) Failure to comply with the requirements of this Act shall result in the following sanctions:

(1) Any contractor who fails to submit the required affidavit within the specified timeframe shall be debarred from participation in the then current bid with the State of Illinois.

(2) Any contractor who willfully or negligently submits a false affidavit or other statement, or neglects to submit the required disclosure, shall be debarred from participation in the then current bid with the State of Illinois.

(3) The State of Illinois reserves the right to debar the contractor from participation in the then current bid by providing notice of termination to any contractor after discovering the deficiency in the contractor's disclosure. Notwithstanding the foregoing, a contractor may cure any false or materially false statement, or misstatement by submitting an amended disclosure within 30 days of receipt of the notice of debarment of the contractor. Failure to cure any false or materially false statements within the specified timeframe shall result in the contractor's debarment from participating in the current bid with the State of Illinois and termination of the contractor's contract with the State of Illinois no later than 60 days after such failure to cure.

(4) Any contractor who fails to contribute to the Redress Fund within the specified timeframe shall be subject to automatic termination of its contract with the State of Illinois, provided that the contractor receives notice from the State of Illinois of termination after discovering the contractor's failure to contribute to the Redress Fund. Notwithstanding the foregoing, a contractor may cure such failure to contribute by making the committed contribution to the Redress Fund within 30 days of receipt of the notice of termination of the contract.

(5) The following parties may bring an action under this Act against a company or contractor subject to this Act to enforce its provisions:

(A) the Office; and

(B) any Illinois resident.

(b) Relief under this Act shall include, but not be limited to, an injunction to mandate the necessary disclosure required under this Act or to correct any misstatement, as well as reasonable attorney's fees and costs. All or a portion of any damages awarded shall be payable to the Redress Fund.

Section 97. Severability. The provisions of this Act are severable under Section 1.31 of the Statute on Statutes.

Section 900. The Illinois Administrative Procedure Act is amended by adding Section 5-45.62 as follows:

(5 ILCS 100/5-45.62 new)

Sec. 5-45.62. Emergency rulemaking; Enslavement Era Disclosure and Redress Act. To provide for the expeditious and timely implementation of the Enslavement Era Disclosure and Redress Act, emergency rules implementing the Enslavement Era Disclosure and Redress Act may be adopted in accordance with Section 5-45 by the Illinois Office of Equity. The adoption of emergency rules authorized by Section 5-45 and this Section is deemed to be necessary for the public interest, safety, and welfare.

This Section is repealed one year after the effective date of this amendatory Act of the 103rd General Assembly.

Section 905. The State Finance Act is amended by adding Section 5.1015 as follows:

(30 ILCS 105/5.1015 new)

Sec. 5.1015. The Redress Fund.