Illinois General Assembly - Full Text of HB0142
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Full Text of HB0142  101st General Assembly

HB0142ham001 101ST GENERAL ASSEMBLY

Rep. Maurice A. West, II

Filed: 3/19/2019

 

 


 

 


 
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1
AMENDMENT TO HOUSE BILL 142

2    AMENDMENT NO. ______. Amend House Bill 142 by replacing
3everything after the enacting clause with the following:
 
4    "Section 5. The Business Enterprise for Minorities, Women,
5and Persons with Disabilities Act is amended by changing
6Sections 2 and 4f as follows:
 
7    (30 ILCS 575/2)
8    (Section scheduled to be repealed on June 30, 2020)
9    Sec. 2. Definitions.
10    (A) For the purpose of this Act, the following terms shall
11have the following definitions:
12        (1) "Minority person" shall mean a person who is a
13    citizen or lawful permanent resident of the United States
14    and who is any of the following:
15            (a) American Indian or Alaska Native (a person
16        having origins in any of the original peoples of North

 

 

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1        and South America, including Central America, and who
2        maintains tribal affiliation or community attachment).
3            (b) Asian (a person having origins in any of the
4        original peoples of the Far East, Southeast Asia, or
5        the Indian subcontinent, including, but not limited
6        to, Cambodia, China, India, Japan, Korea, Malaysia,
7        Pakistan, the Philippine Islands, Thailand, and
8        Vietnam).
9            (c) Black or African American (a person having
10        origins in any of the black racial groups of Africa).
11        Terms such as "Haitian" or "Negro" can be used in
12        addition to "Black or African American".
13            (d) Hispanic or Latino (a person of Cuban, Mexican,
14        Puerto Rican, South or Central American, or other
15        Spanish culture or origin, regardless of race).
16            (e) Native Hawaiian or Other Pacific Islander (a
17        person having origins in any of the original peoples of
18        Hawaii, Guam, Samoa, or other Pacific Islands).
19        (2) "Woman" shall mean a person who is a citizen or
20    lawful permanent resident of the United States and who is
21    of the female gender.
22        (2.05) "Person with a disability" means a person who is
23    a citizen or lawful resident of the United States and is a
24    person qualifying as a person with a disability under
25    subdivision (2.1) of this subsection (A).
26        (2.1) "Person with a disability" means a person with a

 

 

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1    severe physical or mental disability that:
2            (a) results from:
3            amputation,
4            arthritis,
5            autism,
6            blindness,
7            burn injury,
8            cancer,
9            cerebral palsy,
10            Crohn's disease,
11            cystic fibrosis,
12            deafness,
13            head injury,
14            heart disease,
15            hemiplegia,
16            hemophilia,
17            respiratory or pulmonary dysfunction,
18            an intellectual disability,
19            mental illness,
20            multiple sclerosis,
21            muscular dystrophy,
22            musculoskeletal disorders,
23            neurological disorders, including stroke and
24        epilepsy,
25            paraplegia,
26            quadriplegia and other spinal cord conditions,

 

 

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1            sickle cell anemia,
2            ulcerative colitis,
3            specific learning disabilities, or
4            end stage renal failure disease; and
5            (b) substantially limits one or more of the
6        person's major life activities.
7        Another disability or combination of disabilities may
8    also be considered as a severe disability for the purposes
9    of item (a) of this subdivision (2.1) if it is determined
10    by an evaluation of rehabilitation potential to cause a
11    comparable degree of substantial functional limitation
12    similar to the specific list of disabilities listed in item
13    (a) of this subdivision (2.1).
14        (3) "Minority-owned business" means a business which
15    is at least 51% owned by one or more minority persons, or
16    in the case of a corporation, at least 51% of the stock in
17    which is owned by one or more minority persons; and the
18    management and daily business operations of which are
19    controlled by one or more of the minority individuals who
20    own it.
21        (4) "Women-owned business" means a business which is at
22    least 51% owned by one or more women, or, in the case of a
23    corporation, at least 51% of the stock in which is owned by
24    one or more women; and the management and daily business
25    operations of which are controlled by one or more of the
26    women who own it.

 

 

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1        (4.1) "Business owned by a person with a disability"
2    means a business that is at least 51% owned by one or more
3    persons with a disability and the management and daily
4    business operations of which are controlled by one or more
5    of the persons with disabilities who own it. A
6    not-for-profit agency for persons with disabilities that
7    is exempt from taxation under Section 501 of the Internal
8    Revenue Code of 1986 is also considered a "business owned
9    by a person with a disability".
10        (4.2) "Council" means the Business Enterprise Council
11    for Minorities, Women, and Persons with Disabilities
12    created under Section 5 of this Act.
13        (5) "State contracts" means all contracts entered into
14    by the State, any agency or department thereof, or any
15    public institution of higher education, including
16    community college districts, regardless of the source of
17    the funds with which the contracts are paid, which are not
18    subject to federal reimbursement. "State contracts" does
19    not include contracts awarded by a retirement system,
20    pension fund, or investment board subject to Section
21    1-109.1 of the Illinois Pension Code. This definition shall
22    control over any existing definition under this Act or
23    applicable administrative rule.
24        "State construction contracts" means all State
25    contracts entered into by a State agency or public
26    institution of higher education for the repair,

 

 

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1    remodeling, renovation or construction of a building or
2    structure, or for the construction or maintenance of a
3    highway defined in Article 2 of the Illinois Highway Code.
4        (6) "State agencies" shall mean all departments,
5    officers, boards, commissions, institutions and bodies
6    politic and corporate of the State, but does not include
7    the Board of Trustees of the University of Illinois, the
8    Board of Trustees of Southern Illinois University, the
9    Board of Trustees of Chicago State University, the Board of
10    Trustees of Eastern Illinois University, the Board of
11    Trustees of Governors State University, the Board of
12    Trustees of Illinois State University, the Board of
13    Trustees of Northeastern Illinois University, the Board of
14    Trustees of Northern Illinois University, the Board of
15    Trustees of Western Illinois University, municipalities or
16    other local governmental units, or other State
17    constitutional officers.
18        (7) "Public institutions of higher education" means
19    the University of Illinois, Southern Illinois University,
20    Chicago State University, Eastern Illinois University,
21    Governors State University, Illinois State University,
22    Northeastern Illinois University, Northern Illinois
23    University, Western Illinois University, the public
24    community colleges of the State, and any other public
25    universities, colleges, and community colleges now or
26    hereafter established or authorized by the General

 

 

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1    Assembly.
2        (8) "Certification" means a determination made by the
3    Council or by one delegated authority from the Council to
4    make certifications, or by a State agency with statutory
5    authority to make such a certification, that a business
6    entity is a business owned by a minority, woman, or person
7    with a disability for whatever purpose. A business owned
8    and controlled by women shall be certified as a
9    "woman-owned business". A business owned and controlled by
10    women who are also minorities shall be certified as both a
11    "women-owned business" and a "minority-owned business".
12        (9) "Control" means the exclusive or ultimate and sole
13    control of the business including, but not limited to,
14    capital investment and all other financial matters,
15    property, acquisitions, contract negotiations, legal
16    matters, officer-director-employee selection and
17    comprehensive hiring, operating responsibilities,
18    cost-control matters, income and dividend matters,
19    financial transactions and rights of other shareholders or
20    joint partners. Control shall be real, substantial and
21    continuing, not pro forma. Control shall include the power
22    to direct or cause the direction of the management and
23    policies of the business and to make the day-to-day as well
24    as major decisions in matters of policy, management and
25    operations. Control shall be exemplified by possessing the
26    requisite knowledge and expertise to run the particular

 

 

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1    business and control shall not include simple majority or
2    absentee ownership.
3        (10) "Business" means a business that has annual gross
4    sales of less than $75,000,000 as evidenced by the federal
5    income tax return of the business. A firm with gross sales
6    in excess of this cap may apply to the Council for
7    certification for a particular contract if the firm can
8    demonstrate that the contract would have significant
9    impact on businesses owned by minorities, women, or persons
10    with disabilities as suppliers or subcontractors or in
11    employment of minorities, women, or persons with
12    disabilities.
13        (11) "Utilization plan" means a form and additional
14    documentations included in all bids or proposals that
15    demonstrates a vendor's proposed utilization of vendors
16    certified by the Business Enterprise Program to meet the
17    targeted goal. The utilization plan shall demonstrate that
18    the Vendor has either: (1) met the entire contract goal or
19    (2) requested a full or partial waiver and made good faith
20    efforts towards meeting the goal.
21        (12) "Business Enterprise Program" means the Business
22    Enterprise Program of the Department of Central Management
23    Services.
24    (B) When a business is owned at least 51% by any
25combination of minority persons, women, or persons with
26disabilities, even though none of the 3 classes alone holds at

 

 

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1least a 51% interest, the ownership requirement for purposes of
2this Act is considered to be met. The certification category
3for the business is that of the class holding the largest
4ownership interest in the business. If 2 or more classes have
5equal ownership interests, the certification category shall be
6determined by the business.
7(Source: P.A. 99-143, eff. 7-27-15; 99-462, eff. 8-25-15;
899-642, eff. 7-28-16; 100-391, eff. 8-25-17.)
 
9    (30 ILCS 575/4f)
10    (Section scheduled to be repealed on June 30, 2020)
11    Sec. 4f. Award of State contracts.
12    (1) It is hereby declared to be the public policy of the
13State of Illinois to promote and encourage each State agency
14and public institution of higher education, including
15community colleges, to use businesses owned by minorities,
16women, and persons with disabilities in the area of goods and
17services, including, but not limited to, insurance services,
18investment management services, information technology
19services, accounting services, architectural and engineering
20services, and legal services. Furthermore, each State agency
21and public institution of higher education, including
22community colleges, shall utilize such firms to the greatest
23extent feasible within the bounds of financial and fiduciary
24prudence, and take affirmative steps to remove any barriers to
25the full participation of such firms in the procurement and

 

 

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1contracting opportunities 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

 

 

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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        (e) When a community college awards a contract, it
21    shall be the aspirational goal of each community college to
22    use businesses owned by minorities, women, and persons with
23    disabilities, as defined in this Act, for not less than 20%
24    of the total dollar amount of all contracts entered into by
25    the community college district, regardless of the source of
26    the funds with which the contracts are paid, which are not

 

 

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1    subject to federal reimbursement.
2        The percentage specified in this subsection (e)
3    relates to the total dollar amount of contracts during each
4    fiscal year, calculated by examining independently each
5    type of contract for each community college which lets such
6    contracts. Only the percentage of arrangements which
7    represents the participation of businesses owned by
8    minorities, women, and persons with disabilities on such
9    contracts shall be included.
10        (f) When a community college awards construction
11    contracts, it shall be the aspirational goal of each
12    community college to use businesses owned by minorities and
13    women, as defined in this Act, for not less than 20% of the
14    total amount of construction contracts entered into by the
15    community college district, regardless of the source of the
16    funds for which the contracts are paid, which are not
17    subject to federal reimbursement. In the case of
18    construction contracts, the provisions of this Act
19    requiring a portion of the contracts awarded to businesses
20    owned and controlled by persons with disabilities do not
21    apply.
22    (2) As used in this Section:
23        "Accounting services" means the measurement,
24    processing and communication of financial information
25    about economic entities including, but is not limited to,
26    financial accounting, management accounting, auditing,

 

 

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

 

 

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1    premiums or fees of at least $5,000,000 but not more than
2    $10,000,000.
3        "Legal services" means work performed by a lawyer
4    including, but not limited to, contracts in anticipation of
5    litigation, enforcement actions, or investigations.
6    (3) Each State agency and public institution of higher
7education, including community colleges, shall adopt policies
8that identify its plan and implementation procedures for
9increasing the use of service firms owned by minorities, women,
10and persons with disabilities.
11    (4) Except as provided in subsection (5), the Council shall
12file no later than March 1 of each year an annual report to the
13Governor and the General Assembly. The report filed with the
14General Assembly shall be filed as required in Section 3.1 of
15the General Assembly Organization Act. This report shall: (i)
16identify the service firms used by each State agency and public
17institution of higher education, (ii) identify the actions it
18has undertaken to increase the use of service firms owned by
19minorities, women, and persons with disabilities, including
20encouraging non-minority-owned firms to use other service
21firms owned by minorities, women, and persons with disabilities
22as subcontractors when the opportunities arise, (iii) state any
23recommendations made by the Council to each State agency and
24public institution of higher education to increase
25participation by the use of service firms owned by minorities,
26women, and persons with disabilities, and (iv) include the

 

 

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

 

 

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

 

 

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1and the amount paid to certified vendors in those divisions of
2work, and (vii) the total number of contracts entered into for
3the divisions of work specified in paragraphs (a), (b), and (c)
4of subsection (1) of this Section and the total number of
5contracts awarded to certified vendors providing these
6services to the community college district, (viii) the total
7expenditures and the total number of contracts entered into by
8the community college district in the prior fiscal year as
9specified in paragraph (e) of subsection (1), and the amount
10paid to certified vendors and the total number of contracts
11awarded to vendors, and (ix) the total expenditures and the
12total number of contracts entered into by the community college
13district in the prior fiscal years as specified under paragraph
14(f) of subsection (1), and the amount paid to certified vendors
15and the total number of contracts awarded to certified venders.
16The Business Enterprise Council shall not make any utilization
17reports under this Act for community college districts for
18Fiscal Year 2015 and Fiscal Year 2016, but shall make the
19report required by this subsection for Fiscal Year 2017 and for
20each fiscal year thereafter. The Business Enterprise Council
21shall report the information in items (i), (ii), (iii), and
22(iv) of this subsection beginning in September of 2016. The
23Business Enterprise Council shall may collect the data needed
24to make its report from the Illinois Community College Board.
25    (6) The status of the utilization of services shall be
26discussed at each of the regularly scheduled Business

 

 

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1Enterprise Council meetings. Time shall be allotted for the
2Council to receive, review, and discuss the progress of the use
3of service firms owned by minorities, women, and persons with
4disabilities by each State agency and public institution of
5higher education; and any evidence regarding past or present
6racial, ethnic, or gender-based discrimination which directly
7impacts a State agency or public institution of higher
8education contracting with such firms. If after reviewing such
9evidence the Council finds that there is or has been such
10discrimination against a specific group, race or sex, the
11Council shall establish sheltered markets or adjust existing
12sheltered markets tailored to address the Council's specific
13findings for the divisions of work specified in paragraphs (a),
14(b), and (c) of subsection (1) of this Section.
15(Source: P.A. 99-462, eff. 8-25-15; 99-642, eff. 7-28-16;
16100-391, eff. 8-25-17.)
 
17    Section 99. Effective date. This Act takes effect upon
18becoming law.".