Illinois General Assembly - Full Text of SB3896
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Full Text of SB3896  102nd General Assembly

SB3896 102ND GENERAL ASSEMBLY

  
  

 


 
102ND GENERAL ASSEMBLY
State of Illinois
2021 and 2022
SB3896

 

Introduced 1/21/2022, by Sen. Ann Gillespie

 

SYNOPSIS AS INTRODUCED:
 
New Act
220 ILCS 5/5-117

    Creates the Diversity in Not-for-Profit Act. Allows any State agency, county, or unit of local government of the State of Illinois that certifies entities under a disadvantaged business enterprise program to certify organizations as minority-led not-for-profit organizations, woman-led not-for-profit organizations, and not-for-profit organizations led by a person with a disability under the Act. Provides further requirements concerning certification under the Act. Amends the Public Utilities Act. Provides that specified supplier diversity goal requirements under the Act apply to minority-led not-for-profit organizations, woman-led not-for-profit organizations, and not-for-profit organizations led by a person with a disability. Defines terms. Makes conforming changes.


LRB102 22583 RJF 31725 b

 

 

A BILL FOR

 

SB3896LRB102 22583 RJF 31725 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 1. Short title. This Act may be cited as the
5Diversity in Not-for-Profit Act.
 
6    Section 5. Definitions. As used in this Act:
7    "Board of directors" has the same meaning as provided
8under subsection (d) of Section 101.80 of the General Not For
9Profit Corporation Act of 1986.
10    "Certification" means a determination that a
11not-for-profit organization meets the defined classifications
12of a "minority-led not-for-profit organization", a "woman-led
13not-for-profit organization", or a "not-for-profit
14organization led by a person with a disability".
15    "Key employees" means an employee of the organization who
16is:
17        (1) the person who has ultimate responsibility for
18    implementing the decisions of the board of directors or
19    for supervising the management, administration, or
20    operation of the organization;
21        (2) the person who has ultimate responsibility for
22    managing the organization's finances; or
23        (3) the person who:

 

 

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1            (A) has responsibilities, powers, or influence
2        over the organization as a whole that is similar to the
3        persons described in paragraphs (1) and (2);
4            (B) manages a discrete segment or activity of the
5        organizations that represents 25% or more of the
6        activities, assets, income, or expenses of the
7        organization, as compared to the organization as a
8        whole, or has or shares authority to control or
9        determine 25% or more of the organization's capital
10        expenditures, operating budget, or compensation for
11        employees; and
12            (C) is one of the 5 highest compensated employees
13        in the organization.
14    "Minority-led not-for-profit organization" means an
15organization that is tax-exempt under Sections 501(c)(3) or
16501(c)(4) of the Internal Revenue Code of 1986, has filed all
17required forms under the Solicitation for Charity Act, and for
18which:
19        (1) at least 51% of the members of the organization's
20    board of directors are minority persons, or at least 51%
21    of the members of the organization's board of directors
22    and key employees are minority persons;
23        (2) the organization is regularly and actively engaged
24    in the activity for which it is formed;
25        (3) the organization is not dependent upon or
26    influenced by another non-eligible person or organization;

 

 

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1    and
2        (4) the organization has not been established or
3    reorganized for the specific purpose of obtaining a
4    certification under this Act.
5    "Not-for-profit organization led by a person with a
6disability" means an organization that is tax-exempt under
7Sections 501(c)(3) or 501(c)(4) of the Internal Revenue Code
8of 1986, has filed all required forms under the Solicitation
9for Charity Act, and for which:
10        (1) at least 51% of the members of the organization's
11    board of directors are persons with a disability, or at
12    least 51% of the members of the organization's board of
13    directors and key employees are persons with a disability;
14        (2) the organization is regularly and actively engaged
15    in the activity for which it is formed;
16        (3) the organization is not dependent upon or
17    influenced by another non-eligible person or organization;
18    and
19        (4) the organization has not been established or
20    reorganized for the specific purpose of obtaining a
21    certification under this Act.
22    "Woman-led not-for-profit organization" means an
23organization that is tax-exempt under Sections 501(c)(3) or
24501(c)(4) of the Internal Revenue Code of 1986, has filed all
25required forms under the Solicitation for Charity Act, and for
26which:

 

 

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1        (1) at least 51% of the members of the organization's
2    board of directors are women, or at least 51% of the
3    members of the organization's board of directors and key
4    employees are women;
5        (2) the organization is regularly and actively engaged
6    in the activity for which it is formed;
7        (3) the organization is not dependent upon or
8    influenced by another non-eligible person or organization;
9    and
10        (4) the organization has not been established or
11    reorganized for the specific purpose of obtaining a
12    certification under this Act.
 
13    Section 10. Certification.
14    (a) For the purpose of assuring that a not-for-profit
15organization taking advantage of this Act is legitimately
16classified as a minority-led not-for-profit organization, a
17woman-led not-for-profit organization, or a not-for-profit
18organization led by a person with a disability, any State
19agency, county, or unit of local government of the State of
20Illinois that, on the effective date of this Act, certifies
21entities under a disadvantaged business enterprise program
22created under (i) the Business Enterprise for Minorities,
23Women, and Persons with Disabilities Act, (ii) home rule
24authorization under the Illinois Constitution, or (iii) any
25similar statutory or home rule authorizations, may also

 

 

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1certify the organizations defined under this Act. Any such
2State agency, county, or unit of local government, if it
3elects to certify hereunder, shall also maintain a list of all
4not-for-profit organizations legitimately classified as a
5minority-led not-for-profit organization, a woman-led
6not-for-profit organization, or a not-for-profit organization
7led by a person with a disability.
8    (b) When a not-for-profit organization's board of
9directors, or the board of directors together with key
10employees, consists of at least 51% of any combination of
11minority persons, women, or persons with disabilities, even
12though none of the 3 classes alone holds at least a 51% share,
13the 51% membership requirement for purposes of certification
14under this Act shall be considered met. The certification
15category for not-for-profit organizations shall be that of the
16class holding the largest share of positions on the board of
17directors, or on the board of directors together with key
18employees, of a not-for-profit organization. If 2 or more
19classes have an equal share of positions on the board of
20directors, or on the board of directors together with key
21employees, the certification category shall be determined by
22the not-for-profit organization.
 
23    Section 15. Rules. Any State agency that elects to certify
24organizations under this Act shall adopt rules necessary to
25implement and enforce the requirements of this Act.
 

 

 

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1    Section 100. The Public Utilities Act is amended by
2changing Section 5-117 as follows:
 
3    (220 ILCS 5/5-117)
4    Sec. 5-117. Supplier diversity goals.
5    (a) The public policy of this State is to collaboratively
6work with companies and not-for-profit organizations that
7serve Illinois residents to improve their supplier diversity
8in a non-antagonistic manner.
9    (a-5) For the purposes of this Section, "minority-led
10not-for-profit organization", "woman-led not-for-profit
11organization", and "not-for-profit organization led by a
12person with a disability" shall have the same meanings as
13provided under the Diversity in Not-for-Profit Act.
14    (b) The Commission shall require all gas, electric, and
15water companies with at least 100,000 customers under its
16authority, as well as suppliers of wind energy, solar energy,
17hydroelectricity, nuclear energy, and any other supplier of
18energy within this State, to submit an annual report by April
1915, 2015 and every April 15 thereafter, in a searchable Adobe
20PDF format, on all procurement goals and actual spending for
21female-owned, minority-owned, veteran-owned, person with a
22disability-owned, and small business enterprises, as well as
23minority-led not-for-profit organizations, woman-led
24not-for-profit organizations, and not-for-profit

 

 

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1organizations led by a person with a disability, in the
2previous calendar year. These goals shall be expressed as a
3percentage of the total work performed by the entity
4submitting the report, and the actual spending for all
5female-owned, minority-owned, veteran-owned, person with a
6disability-owned, and small business enterprises, as well as
7minority-led not-for-profit organizations, woman-led
8not-for-profit organizations, and not-for-profit
9organizations led by a person with a disability, shall also be
10expressed as a percentage of the total work performed by the
11entity submitting the report.
12    (c) Each participating company in its annual report shall
13include the following information:
14        (1) an explanation of the plan for the next year to
15    increase participation;
16        (2) an explanation of the plan to increase the goals;
17        (3) the areas of procurement each company shall be
18    actively seeking more participation in the next year;
19        (4) an outline of the plan to alert and encourage
20    potential vendors in that area to seek business from the
21    company;
22        (5) an explanation of the challenges faced in finding
23    quality vendors and offer any suggestions for what the
24    Commission could do to be helpful to identify those
25    vendors;
26        (6) a list of the certifications the company

 

 

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1    recognizes;
2        (7) the point of contact for any potential vendor who
3    wishes to do business with the company and explain the
4    process for a vendor to enroll with the company as a
5    minority-owned, women-owned, or veteran-owned, or person
6    with a disability-owned company , or a minority-led
7    not-for-profit organization, a woman-led not-for-profit
8    organization, or a not-for-profit organization led by a
9    person with a disability; and
10        (8) any particular success stories to encourage other
11    companies to emulate best practices.
12    (d) Each annual report shall include as much
13State-specific data as possible. If the submitting entity does
14not submit State-specific data, then the company shall include
15any national data it does have and explain why it could not
16submit State-specific data and how it intends to do so in
17future reports, if possible.
18    (e) Each annual report shall include the rules,
19regulations, and definitions used for the procurement goals in
20the company's annual report.
21    (f) The Commission and all participating entities shall
22hold an annual workshop open to the public in 2015 and every
23year thereafter on the state of supplier diversity to
24collaboratively seek solutions to structural impediments to
25achieving stated goals, including testimony from each
26participating entity as well as subject matter experts and

 

 

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1advocates. The Commission shall publish a database on its
2website of the point of contact for each participating entity
3for supplier diversity, along with a list of certifications
4each company recognizes from the information submitted in each
5annual report. The Commission shall publish each annual report
6on its website and shall maintain each annual report for at
7least 5 years.
8(Source: P.A. 102-558, eff. 8-20-21; 102-662, eff. 9-15-21;
9102-673, eff. 11-30-21.)