Illinois General Assembly - Full Text of SB0312
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Full Text of SB0312  102nd General Assembly

SB0312 102ND GENERAL ASSEMBLY

  
  

 


 
102ND GENERAL ASSEMBLY
State of Illinois
2021 and 2022
SB0312

 

Introduced 2/19/2021, by Sen. Napoleon Harris, III

 

SYNOPSIS AS INTRODUCED:
 
30 ILCS 575/4f

    Amends the Business Enterprise for Minorities, Women, and Persons with Disabilities Act. Provides for the awarding of sole-source contracts under $100,000,000 to certified black or African American businesses. Provides that businesses owned by black or African American persons providing specified services shall also be eligible for the benefits of the mentor protégé program in accordance with the federal All-Small Mentor Protégé Program. Effective immediately.


LRB102 04016 RJF 14032 b

FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

SB0312LRB102 04016 RJF 14032 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
6Section 4f as follows:
 
7    (30 ILCS 575/4f)
8    (Section scheduled to be repealed on June 30, 2024)
9    Sec. 4f. Award of State contracts.
10    (1) It is hereby declared to be the public policy of the
11State of Illinois to promote and encourage each State agency
12and public institution of higher education to use businesses
13owned by minorities, women, and persons with disabilities in
14the area of goods and services, including, but not limited to,
15insurance services, investment management services,
16information technology services, accounting services,
17architectural and engineering services, and legal services.
18Furthermore, each State agency and public institution of
19higher education shall utilize such firms to the greatest
20extent feasible within the bounds of financial and fiduciary
21prudence, and take affirmative steps to remove any barriers to
22the full participation of such firms in the procurement and
23contracting opportunities afforded.

 

 

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1        (a) When a State agency or public institution of
2    higher education, other than a community college, awards a
3    contract for insurance services, for each State agency or
4    public institution of higher education, it shall be the
5    aspirational goal to use insurance brokers owned by
6    minorities, women, and persons with disabilities as
7    defined by this Act, for not less than 20% of the total
8    annual premiums or fees; provided that, contracts
9    representing at least 11% of the total annual premiums or
10    fees shall be awarded to businesses owned by minorities;
11    contracts representing at least 7% of the total annual
12    premiums or fees shall be awarded to women-owned
13    businesses; and contracts representing at least 2% of the
14    total annual premiums or fees shall be awarded to
15    businesses owned by persons with disabilities.
16        Beginning on the effective date of this amendatory Act
17    of the 102nd General Assembly, in accordance with federal
18    regulations in 15 U.S.C. 637, sole-source contracts under
19    $100,000,000 may be awarded to certified black or African
20    American businesses under this paragraph (a). Businesses
21    owned by black or African Americans persons that provide
22    insurance services under this paragraph (a) shall also be
23    eligible for the benefits of the mentor protégé program in
24    accordance with the federal All-Small Mentor Protégé
25    Program (13 CFR Part 125).
26        (b) When a State agency or public institution of

 

 

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1    higher education, other than a community college, awards a
2    contract for investment services, for each State agency or
3    public institution of higher education, it shall be the
4    aspirational goal to use emerging investment managers
5    owned by minorities, women, and persons with disabilities
6    as defined by this Act, for not less than 20% of the total
7    funds under management; provided that, contracts
8    representing at least 11% of the total funds under
9    management shall be awarded to businesses owned by
10    minorities; contracts representing at least 7% of the
11    total funds under management shall be awarded to
12    women-owned businesses; and contracts representing at
13    least 2% of the total funds under management shall be
14    awarded to businesses owned by persons with disabilities.
15    Furthermore, it is the aspirational goal that not less
16    than 20% of the direct asset managers of the State funds be
17    minorities, women, and persons with disabilities.
18        Beginning on the effective date of this amendatory Act
19    of the 102nd General Assembly, in accordance with federal
20    regulations in 15 U.S.C. 637, sole-source contracts under
21    $100,000,000 may be awarded to certified black or African
22    American businesses under this paragraph (b). Businesses
23    owned by black or African American persons that provide
24    investment services under this paragraph (b) shall also be
25    eligible for the benefits of the mentor protégé program in
26    accordance with the federal All-Small Mentor Protégé

 

 

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1    Program (13 CFR Part 125).
2        (c) When a State agency or public institution of
3    higher education, other than a community college, awards
4    contracts for information technology services, accounting
5    services, architectural and engineering services, and
6    legal services, for each State agency and public
7    institution of higher education, it shall be the
8    aspirational goal to use such firms owned by minorities,
9    women, and persons with disabilities as defined by this
10    Act and lawyers who are minorities, women, and persons
11    with disabilities as defined by this Act, for not less
12    than 20% of the total dollar amount of State contracts;
13    provided that, contracts representing at least 11% of the
14    total dollar amount of State contracts shall be awarded to
15    businesses owned by minorities or minority lawyers;
16    contracts representing at least 7% of the total dollar
17    amount of State contracts shall be awarded to women-owned
18    businesses or women who are lawyers; and contracts
19    representing at least 2% of the total dollar amount of
20    State contracts shall be awarded to businesses owned by
21    persons with disabilities or persons with disabilities who
22    are lawyers.
23        Beginning on the effective date of this amendatory Act
24    of the 102nd General Assembly, in accordance with federal
25    regulations in 15 U.S.C. 637, sole-source contracts under
26    $100,000,000 may be awarded to certified black or African

 

 

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1    American businesses under this paragraph (c). Businesses
2    owned by black or African American persons that provide
3    information technology services, accounting services,
4    architectural and engineering services, and legal service
5    under this paragraph (c) shall also be eligible for the
6    benefits of the mentor protégé program in accordance with
7    the federal All-Small Mentor Protégé Program (13 CFR Part
8    125).
9        (d) When a community college awards a contract for
10    insurance services, investment services, information
11    technology services, accounting services, architectural
12    and engineering services, and legal services, it shall be
13    the aspirational goal of each community college to use
14    businesses owned by minorities, women, and persons with
15    disabilities as defined in this Act for not less than 20%
16    of the total amount spent on contracts for these services
17    collectively; provided that, contracts representing at
18    least 11% of the total amount spent on contracts for these
19    services shall be awarded to businesses owned by
20    minorities; contracts representing at least 7% of the
21    total amount spent on contracts for these services shall
22    be awarded to women-owned businesses; and contracts
23    representing at least 2% of the total amount spent on
24    contracts for these services shall be awarded to
25    businesses owned by persons with disabilities. When a
26    community college awards contracts for investment

 

 

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1    services, contracts awarded to investment managers who are
2    not emerging investment managers as defined in this Act
3    shall not be considered businesses owned by minorities,
4    women, or persons with disabilities for the purposes of
5    this Section.
6        Beginning on the effective date of this amendatory Act
7    of the 102nd General Assembly, in accordance with federal
8    regulations in 15 U.S.C. 637, sole-source contracts under
9    $100,000,000 may be awarded to certified black or African
10    American businesses under this paragraph (d). Businesses
11    owned by black or African American persons that provide
12    insurance services, investment services, information
13    technology services, accounting services, architectural
14    and engineering services, and legal services under this
15    paragraph (d) shall also be eligible for the benefits of
16    the mentor protégé program in accordance with the federal
17    All-Small Mentor Protégé Program (13 CFR Part 125).
18    (2) As used in this Section:
19        "Accounting services" means the measurement,
20    processing and communication of financial information
21    about economic entities including, but is not limited to,
22    financial accounting, management accounting, auditing,
23    cost containment and auditing services, taxation and
24    accounting information systems.
25        "Architectural and engineering services" means
26    professional services of an architectural or engineering

 

 

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

 

 

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1    of litigation, enforcement actions, or investigations.
2    (3) Each State agency and public institution of higher
3education shall adopt policies that identify its plan and
4implementation procedures for increasing the use of service
5firms owned by minorities, women, and persons with
6disabilities.
7    (4) Except as provided in subsection (5), the Council
8shall file no later than March 1 of each year an annual report
9to the Governor, the Bureau on Apprenticeship Programs, and
10the General Assembly. The report filed with the General
11Assembly shall be filed as required in Section 3.1 of the
12General Assembly Organization Act. This report shall: (i)
13identify the service firms used by each State agency and
14public institution of higher education, (ii) identify the
15actions it has undertaken to increase the use of service firms
16owned by minorities, women, and persons with disabilities,
17including encouraging non-minority-owned firms to use other
18service firms owned by minorities, women, and persons with
19disabilities as subcontractors when the opportunities arise,
20(iii) state any recommendations made by the Council to each
21State agency and public institution of higher education to
22increase participation by the use of service firms owned by
23minorities, women, and persons with disabilities, and (iv)
24include the following:
25        (A) For insurance services: the names of the insurance
26    brokers or claims consultants used, the total of risk

 

 

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1    managed by each State agency and public institution of
2    higher education by insurance brokers, the total
3    commissions, fees paid, or both, the lines or insurance
4    policies placed, and the amount of premiums placed; and
5    the percentage of the risk managed by insurance brokers,
6    the percentage of total commission, fees paid, or both,
7    the lines or insurance policies placed, and the amount of
8    premiums placed with each by the insurance brokers owned
9    by minorities, women, and persons with disabilities by
10    each State agency and public institution of higher
11    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
16    under 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

 

 

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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
8    of higher education.
9    (5) 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
15minorities, women, or persons with disabilities, (iii) the
16policy of the community college district concerning certified
17vendors, (iv) the certifications recognized by the community
18college district for determining whether a business is owned
19or controlled by a minority, woman, or person with a
20disability, (v) outreach efforts conducted by the community
21college district to increase the use of certified vendors,
22(vi) the total expenditures by the community college district
23in the prior 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

 

 

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1the divisions of work specified in paragraphs (a), (b), and
2(c) of 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
6under this Act for community college districts for Fiscal Year
72015 and Fiscal Year 2016, but shall make the report required
8by this subsection for Fiscal Year 2017 and for each fiscal
9year thereafter. The Business Enterprise Council shall report
10the information 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
18use of service firms owned by minorities, women, and persons
19with disabilities by each State agency and public institution
20of higher education; and any evidence regarding past or
21present racial, ethnic, or gender-based discrimination which
22directly impacts a State agency or public institution of
23higher education contracting with such firms. If after
24reviewing such evidence the Council finds that there is or has
25been such discrimination against a specific group, race or
26sex, the Council shall establish sheltered markets or adjust

 

 

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1existing sheltered markets tailored to address the Council's
2specific findings for the divisions of work specified in
3paragraphs (a), (b), and (c) of subsection (1) of this
4Section.
5(Source: P.A. 100-391, eff. 8-25-17; 101-170, eff. 1-1-20.)
 
6    Section 99. Effective date. This Act takes effect upon
7becoming law.