Full Text of SB2123 103rd General Assembly
SB2123ham002 103RD GENERAL ASSEMBLY | Rep. Theresa Mah Filed: 5/17/2023
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| 1 | | AMENDMENT TO SENATE BILL 2123
| 2 | | AMENDMENT NO. ______. Amend Senate Bill 2123 by replacing | 3 | | everything after the enacting clause with the following:
| 4 | | "Section 1. Declaration of policy and intent. Section | 5 | | 14(c) of the Fair Labor Standards Act includes provisions for | 6 | | the payment of subminimum wages to individuals with | 7 | | disabilities. Among those who have worked for subminimum wages | 8 | | in Illinois are people with intellectual, developmental, | 9 | | physical, and sensory disabilities, including those who are | 10 | | blind or deaf or are diagnosed with cerebral palsy, spina | 11 | | bifida, Down syndrome, or any other disability. This program | 12 | | has resulted in a national average wage of approximately $3 | 13 | | per hour for disabled workers who have engaged in work | 14 | | activities under a 14(c) wage certificate. | 15 | | Data released in October 2022 from the United States | 16 | | Department of Labor shows that Illinois ranks second in the | 17 | | nation in the number of 14(c) certificates issued or pending, |
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| 1 | | with several thousand Illinois residents with disabilities | 2 | | engaged in activities compensated below minimum wage. These | 3 | | activities most often occur in congregate work centers (also | 4 | | known as sheltered workshops) which isolate and segregate | 5 | | people with disabilities from the greater community. | 6 | | The Illinois Employment First Act stipulates that | 7 | | "competitive and integrated employment shall be considered the | 8 | | first option when serving persons with disabilities of working | 9 | | age." Across the United States, significant action has | 10 | | curtailed or eliminated 14(c) certificates and segregated work | 11 | | centers. Simultaneously, society has progressed far beyond the | 12 | | severely limited Great Depression vision of employment of | 13 | | people with disabilities under the Fair Labor Standards Act. | 14 | | Today, people with disabilities hold a wide variety of jobs, | 15 | | with and without disability supports. | 16 | | Collaborative partnerships between State agencies shall | 17 | | result in development and implementation of a plan to phase | 18 | | out all subminimum wage activity in the State of Illinois. | 19 | | Section 5. The Department of Human Services Act is amended | 20 | | by adding Sections 1-85 and 1-90 as follows: | 21 | | (20 ILCS 1305/1-85 new) | 22 | | Sec. 1-85. 14(c) certificate phase-out plan; Transition | 23 | | Grant Fund. | 24 | | (a) The Department, in partnership with other State |
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| 1 | | agencies, including the Department of Labor, the Department of | 2 | | Healthcare and Family Services, the Department of Central | 3 | | Management Services, the Department of Commerce and Economic | 4 | | Opportunity, the Department of Employment Security, and the | 5 | | State Board of Education, shall phase out, on or before June | 6 | | 30, 2026, the use of active or pending 14(c) certificates | 7 | | authorized under the Fair Labor Standards Act, as well as | 8 | | authorizations permitted under
Sections 5 and 10 of the | 9 | | Minimum Wage Law to pay an employee
with a disability less than | 10 | | the minimum wage otherwise
required for employees under | 11 | | Section 4 of the Minimum Wage Law. | 12 | | (b) The phase-out plan shall include all of the following: | 13 | | (1) The use of Medicaid funding to support subminimum | 14 | | wage work payments shall be prohibited. | 15 | | (A) Subminimum wage activities that remain after | 16 | | the effective date of this amendatory Act of the 103rd | 17 | | General Assembly shall sustain solely on the revenue | 18 | | of the contracts entered into between the respective | 19 | | businesses' subletting labor, goods, and services from | 20 | | 14(c) certificate holders - not billing for community | 21 | | day services. | 22 | | (B) Billing to the Department shall be prohibited | 23 | | under the following services: | 24 | | (i) Community Day Services (Waiver). | 25 | | (ii) Developmental or Day Training (State | 26 | | developmental center). |
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| 1 | | (iii) Developmental or Day Training | 2 | | (intermediate care facility for persons with | 3 | | developmental disabilities licensed under the | 4 | | ID/DD Community Care Act). | 5 | | (iv) Any other service related to the | 6 | | supervision and support of individuals with | 7 | | developmental disabilities who are engaged in | 8 | | activities which result in subminimum wage | 9 | | payments. | 10 | | (2) New referrals to, and admissions into, programs | 11 | | which offer subminimum wage shall be prohibited. Referrals | 12 | | to non-subminimum wage activity programs within agencies | 13 | | that hold a 14(c) certificate shall continue. | 14 | | (3) Applications by agencies for new, or renewal of | 15 | | existing, 14(c) certificates from the Department of Labor | 16 | | shall be prohibited beginning July 1, 2024. The Department | 17 | | and the Department of Labor shall not accept 14(c) | 18 | | certificates from the U.S. Department of Labor effective | 19 | | July 1, 2024. An escalating wage floor for individuals | 20 | | engaged in subminimum wage activity may be established by | 21 | | rule. Authority to pay a worker with disabilities less | 22 | | than the minimum wage shall end by July 1, 2026. | 23 | | (4) The Department shall develop and implement annual | 24 | | data collection requirements for community agencies with | 25 | | active or pending 14(c) certificates for all individuals | 26 | | participating in subminimum wage activity through their |
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| 1 | | agency. | 2 | | (5) Community agencies with active or pending 14(c) | 3 | | certificates shall be required to complete a provider | 4 | | transition plan that shall be developed by the Department. | 5 | | (6) The Department shall establish a tracking process | 6 | | and transition benchmarks to monitor the progress of | 7 | | community agencies with an active or pending 14(c) | 8 | | certificate from subminimum wage to alternative | 9 | | activities. | 10 | | (7) The Department shall review and make updates to | 11 | | any intake, screening, and service planning processes to | 12 | | ensure individuals with disabilities entering, or | 13 | | currently being served within, the service delivery system | 14 | | are diverted from subminimum wage activity. This shall | 15 | | include individuals in waiver-funded services, | 16 | | intermediate care facilities for persons with | 17 | | developmental disabilities, State developmental centers, | 18 | | and youth exiting school programs. | 19 | | (8) The Department's Division of Rehabilitation | 20 | | Services and its Vocational Rehabilitation program shall | 21 | | establish processes and associated funding, as needed, to | 22 | | accommodate increased referrals of individuals with | 23 | | disabilities from subminimum wage activities. | 24 | | (9) The Department shall develop and implement | 25 | | provider training and make other provider resources | 26 | | available related to the transition from subminimum wage |
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| 1 | | to competitive integrated employment, including, but not | 2 | | limited to, employment best practices, communication | 3 | | strategies, benefits planning, transportation, business | 4 | | engagement and state agency policy. The provider training | 5 | | and resources shall be done in partnership with other | 6 | | State agencies and entities directly involved in working | 7 | | with individuals with disabilities who may be utilizing | 8 | | subminimum wage activities. | 9 | | (10) As needed, the Department shall create new | 10 | | supported employment service codes and request funding to | 11 | | be used for the service codes, specific to competitive | 12 | | integrated employment supports for individual and group | 13 | | employment, applicable to individuals who reside in State | 14 | | developmental centers and intermediate care facilities for | 15 | | persons with developmental disabilities. | 16 | | (11) The Director of Labor and the Secretary of Human | 17 | | Services shall jointly submit reports to the Governor and | 18 | | the General Assembly on the benchmarks and status of | 19 | | achieving the outcomes included in the phase-out plan and | 20 | | recommendations for funding levels or other resources | 21 | | necessary to implement the phase-out plan. The first | 22 | | report shall be due January 1, 2025, and subsequent | 23 | | reports shall be submitted annually thereafter for 5 | 24 | | years. After the January 1, 2029, report, the annual | 25 | | reporting requirement shall sunset. | 26 | | (c) 14(c) Transition Grant Fund. |
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| 1 | | (1) The 14(c) Transition Grant Fund is created as a | 2 | | special fund in the State treasury. Moneys in the Fund | 3 | | shall be used, subject to appropriation, by the Department | 4 | | for community agencies with active or pending 14(c) | 5 | | certificates to aid in the transition away from subminimum | 6 | | wages for employees with disabilities. The goal of the | 7 | | 14(c) Transition Grant Fund is to develop new | 8 | | opportunities and programs and grow capacity to respond to | 9 | | the needs of individuals with disabilities in their | 10 | | geographic area, such as supported employment programs and | 11 | | diverse day programs that support meaningful days, choice, | 12 | | and community integration. The Fund may be used to provide | 13 | | wage subsidies to employers who offer integrated work | 14 | | options to workers with disabilities who previously | 15 | | labored for subminimum wages. | 16 | | (2) The Department shall adopt rules establishing a | 17 | | process for the equitable and transparent administration | 18 | | of the Fund. | 19 | | (20 ILCS 1305/1-90 new) | 20 | | Sec. 1-90. Subminimum Wage Transition Task Force. The | 21 | | Subminimum Wage Transition Task Force is created within the | 22 | | Department to (i) provide guidance, leadership, and | 23 | | recommendations, (ii) review progress made throughout the | 24 | | process, (iii) address systemwide barriers to transition, and | 25 | | (iv) support the community agencies to maintain and increase |
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| 1 | | capacity in non-subminimum wage programming. The Task Force | 2 | | shall be comprised of members appointed by the Secretary of | 3 | | the Department and shall include representatives from all of | 4 | | the following: | 5 | | (1) Community agencies that are 14(c) certificate | 6 | | holders. | 7 | | (2) Individuals with disabilities who have been or are | 8 | | engaged in subminimum wage activities. | 9 | | (3) The Illinois Council on Developmental Disabilities | 10 | | and the State Rehabilitation Council. | 11 | | (4) Advocacy organizations. | 12 | | (5) The Department's Divisions of Developmental | 13 | | Disabilities and Rehabilitation Services. | 14 | | (6) The Department of Healthcare and Family Services. | 15 | | (7) The Illinois Task Force on Employment and Economic | 16 | | Opportunity for People with Disabilities. | 17 | | Section 10. The State Finance Act is amended by adding | 18 | | Section 5.990 as follows: | 19 | | (30 ILCS 105/5.990 new) | 20 | | Sec. 5.990. The 14(c) Transition Grant Fund. | 21 | | Section 15. The Illinois Procurement Code is amended by | 22 | | changing Section 45-35 as follows:
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| 1 | | (30 ILCS 500/45-35)
| 2 | | Sec. 45-35. Not-for-profit agencies for persons with | 3 | | significant disabilities. | 4 | | (a) Qualification. Supplies and services may be procured
| 5 | | without advertising or calling
for bids from any qualified | 6 | | not-for-profit agency for persons with significant | 7 | | disabilities that:
| 8 | | (1) complies with Illinois laws governing private
| 9 | | not-for-profit organizations;
| 10 | | (2) is certified as a community rehabilitation | 11 | | provider by the Department of Human Services is certified | 12 | | as a work center by the Wage
and Hour Division of the
| 13 | | United States Department of Labor or is an accredited | 14 | | vocational program that provides transition services to | 15 | | youth between the ages of 14 1/2 and 22 in accordance with | 16 | | individualized education plans under Section 14-8.03 of | 17 | | the School Code and that provides residential services at | 18 | | a child care institution, as defined under Section 2.06 of | 19 | | the Child Care Act of 1969, or at a group home, as defined | 20 | | under Section 2.16 of the Child Care Act of 1969 ; and
| 21 | | (3) is accredited by a nationally-recognized | 22 | | accrediting organization or certified as a day services | 23 | | developmental training provider by the Department of Human
| 24 | | Services.
| 25 | | (b) Participation. To participate, the not-for-profit
| 26 | | agency must have indicated an
interest in providing the |
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| 1 | | supplies and services, must meet the
specifications and needs | 2 | | of the
using agency, and must set a fair and reasonable price.
| 3 | | (c) Committee. There is created within the Department of
| 4 | | Central Management
Services a committee to facilitate the | 5 | | purchase of products and
services from not-for-profit agencies | 6 | | that provide employment opportunities to persons with physical | 7 | | disabilities, intellectual or developmental disabilities, | 8 | | mental illnesses, or any combination thereof. This committee | 9 | | is called the State Use Committee. The State Use Committee | 10 | | shall consist of the Director of the
Department of Central
| 11 | | Management Services or his or her designee, the Secretary of | 12 | | the Department
of Human Services or his or her designee, the | 13 | | Director of Commerce and Economic Opportunity or his or her | 14 | | designee, one public member representing private business who | 15 | | is knowledgeable of the employment needs and concerns of | 16 | | persons with developmental disabilities, one public member | 17 | | representing private business who is knowledgeable of the | 18 | | needs and concerns of rehabilitation facilities, one public | 19 | | member who is knowledgeable of the employment needs and | 20 | | concerns of persons with developmental disabilities, one | 21 | | public member who is knowledgeable of the needs and concerns | 22 | | of rehabilitation facilities, 2 members who have a disability, | 23 | | 2 public members from a statewide association that represents | 24 | | community-based rehabilitation facilities serving or | 25 | | supporting individuals with intellectual or developmental | 26 | | disabilities, and one public member from a disability-focused |
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| 1 | | statewide advocacy group, all appointed by the
Governor. The | 2 | | public
members shall serve 2 year terms, commencing upon | 3 | | appointment and
every 2 years thereafter.
A public member may | 4 | | be reappointed, and vacancies shall be filled by
appointment | 5 | | for the
completion of the term. In the event there is a vacancy | 6 | | on the State Use Committee, the Governor must make an | 7 | | appointment to fill that vacancy within 30 calendar days after | 8 | | the notice of vacancy. The members shall serve without
| 9 | | compensation but shall be reimbursed
for expenses at a rate | 10 | | equal to that of State employees on a per
diem basis by the | 11 | | Department
of Central Management Services. All members shall | 12 | | be entitled to
vote on issues before the
State Use Committee.
| 13 | | The State Use Committee shall have the following powers | 14 | | and duties:
| 15 | | (1) To request from any State agency information as to
| 16 | | product specification
and service requirements in order to | 17 | | carry out its purpose.
| 18 | | (2) To meet quarterly or more often as necessary to
| 19 | | carry out its purposes.
| 20 | | (3) To request a quarterly report from each
| 21 | | participating qualified not-for-profit agency for persons | 22 | | with significant disabilities describing the volume of | 23 | | sales for each product or
service sold under this Section.
| 24 | | (4) To prepare a report for the Governor and General | 25 | | Assembly no later than December 31 of each year. The | 26 | | requirement for reporting to the General Assembly shall be |
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| 1 | | satisfied by following the procedures set forth in Section | 2 | | 3.1 of the General Assembly Organization Act.
| 3 | | (5) To prepare a publication that lists all supplies
| 4 | | and services currently
available from any qualified | 5 | | not-for-profit agency for persons with significant | 6 | | disabilities. This list and
any revisions shall be | 7 | | distributed to all purchasing agencies.
| 8 | | (6) To encourage diversity in supplies and services
| 9 | | provided by qualified not-for-profit agencies for persons | 10 | | with significant disabilities and discourage unnecessary | 11 | | duplication or
competition among not-for-profit agencies.
| 12 | | (7) To develop guidelines to be followed by qualifying
| 13 | | agencies for
participation under the provisions of this | 14 | | Section. Guidelines shall include a list of national | 15 | | accrediting organizations which satisfy the requirements | 16 | | of item (3) of subsection (a) of this Section. The
| 17 | | guidelines shall be developed within
6 months after the | 18 | | effective date of this Code and made available
on a | 19 | | nondiscriminatory basis
to all qualifying agencies. The | 20 | | new guidelines required under this item (7) by Public Act | 21 | | 100-203 shall be developed within 6 months after August | 22 | | 18, 2017 (the effective date of Public Act 100-203) and | 23 | | made available on a non-discriminatory basis to all | 24 | | qualifying not-for-profit agencies.
| 25 | | (8) To review all pricing submitted under the | 26 | | provisions
of this Section and may approve a proposed |
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| 1 | | agreement for supplies or services where the price | 2 | | submitted is fair and reasonable. Review of pricing under | 3 | | this paragraph may include, but is not limited to:
| 4 | | (A) Amounts private businesses would pay for | 5 | | similar products or services. | 6 | | (B) Amounts the federal government would pay | 7 | | contractors for similar products or services. | 8 | | (C) The amount paid by the State for similar | 9 | | products or services. | 10 | | (D) The actual cost of manufacturing the product | 11 | | or performing a service at a community rehabilitation | 12 | | program offering employment services on or off | 13 | | premises to persons with disabilities or mental | 14 | | illnesses, with adequate consideration given to legal | 15 | | and moral imperatives to pay workers with disabilities | 16 | | equitable wages. | 17 | | (E) The usual, customary, and reasonable costs of | 18 | | manufacturing, marketing, and distribution. | 19 | | (9) To, not less than every 3 years, adopt a strategic | 20 | | plan for increasing the number of products and services | 21 | | purchased from qualified not-for-profit agencies for | 22 | | persons with disabilities or mental illnesses, including | 23 | | the feasibility of developing mandatory set-aside | 24 | | contracts. | 25 | | (c-5) Conditions for Use. Each chief procurement officer | 26 | | shall, in consultation with the State Use Committee, determine |
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| 1 | | which articles, materials, services, food stuffs, and supplies | 2 | | that are produced, manufactured, or provided by persons with | 3 | | significant disabilities in qualified not-for-profit agencies | 4 | | shall be given preference by purchasing agencies procuring | 5 | | those items. | 6 | | (d) (Blank).
| 7 | | (e) Subcontracts. Subcontracts shall be permitted for | 8 | | agreements authorized under this Section. For the purposes of | 9 | | this subsection (e), "subcontract" means any acquisition from | 10 | | another source of supplies, not including raw materials, or | 11 | | services required by a qualified not-for-profit agency to | 12 | | provide the supplies or services that are the subject of the | 13 | | contract between the State and the qualified not-for-profit | 14 | | agency. | 15 | | The State Use Committee shall develop guidelines to be | 16 | | followed by qualified not-for-profit agencies when seeking and | 17 | | establishing subcontracts with other persons or not-for-profit | 18 | | agencies in order to fulfill State contract requirements. | 19 | | These guidelines shall include the following: | 20 | | (i) The State Use Committee must approve all | 21 | | subcontracts and substantive amendments to subcontracts | 22 | | prior to execution or amendment of the subcontract. | 23 | | (ii) A qualified not-for-profit agency shall not enter | 24 | | into a subcontract, or any combination of subcontracts, to | 25 | | fulfill an entire requirement, contract, or order without | 26 | | written State Use Committee approval. |
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| 1 | | (iii) A qualified not-for-profit agency shall make | 2 | | reasonable efforts to utilize subcontracts with other | 3 | | not-for-profit agencies for persons with significant | 4 | | disabilities. | 5 | | (iv) For any subcontract not currently performed by a | 6 | | qualified not-for-profit agency, the primary qualified | 7 | | not-for-profit agency must provide to the State Use | 8 | | Committee the following: (A) a written explanation as to | 9 | | why the subcontract is not performed by a qualified | 10 | | not-for-profit agency, and (B) a written plan to transfer | 11 | | the subcontract to a qualified not-for-profit agency, as | 12 | | reasonable. | 13 | | (Source: P.A. 102-343, eff. 8-13-21; 102-558, eff. 8-20-21.)
| 14 | | Section 20. The Business Enterprise for Minorities, Women, | 15 | | and Persons with
Disabilities Act is amended by changing | 16 | | Section 2 as follows:
| 17 | | (30 ILCS 575/2)
| 18 | | (Section scheduled to be repealed on June 30, 2024) | 19 | | Sec. 2. Definitions.
| 20 | | (A) For the purpose of this Act, the following
terms shall | 21 | | have the following definitions:
| 22 | | (1) "Minority person" shall mean a person who is a | 23 | | citizen or lawful
permanent resident of the United States | 24 | | and who is any of the following:
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| 1 | | (a) American Indian or Alaska Native (a person | 2 | | having origins in any of the original peoples of North | 3 | | and South America, including Central America, and who | 4 | | maintains tribal affiliation or community attachment). | 5 | | (b) Asian (a person having origins in any of the | 6 | | original peoples of the Far East, Southeast Asia, or | 7 | | the Indian subcontinent, including, but not limited | 8 | | to, Cambodia, China, India, Japan, Korea, Malaysia, | 9 | | Pakistan, the Philippine Islands, Thailand, and | 10 | | Vietnam). | 11 | | (c) Black or African American (a person having | 12 | | origins in any of the black racial groups of Africa). | 13 | | (d) Hispanic or Latino (a person of Cuban, | 14 | | Mexican, Puerto Rican, South or Central American, or | 15 | | other 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 | 18 | | of 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 | 23 | | is a citizen or
lawful resident of the United States and is | 24 | | a 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 | 13 | | item (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 | 22 | | at least
51% owned by one or more women, or, in the case of | 23 | | a corporation, at
least 51% of the stock in which is owned | 24 | | by one or more women; and the
management and daily | 25 | | business operations of which are controlled by one or
more | 26 | | of the 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 | | (4.3) "Commission" means, unless the context clearly | 14 | | indicates otherwise, the Commission on Equity and | 15 | | Inclusion created under the Commission on Equity and | 16 | | Inclusion Act. | 17 | | (5) "State contracts" means all contracts entered into | 18 | | by the State, any agency or department thereof, or any | 19 | | public institution of higher education, including | 20 | | community college districts, regardless of the source of | 21 | | the funds with which the contracts are paid, which are not | 22 | | subject to federal reimbursement. "State contracts" does | 23 | | not include contracts awarded by a retirement system, | 24 | | pension fund, or investment board subject to Section | 25 | | 1-109.1 of the Illinois Pension Code. This definition | 26 | | shall control over any existing definition under this Act |
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| 1 | | or applicable administrative rule.
| 2 | | "State construction contracts" means all State | 3 | | contracts entered
into by a State agency or public | 4 | | institution of higher education for the repair, | 5 | | remodeling,
renovation or
construction of a building or | 6 | | structure, or for the construction or
maintenance of a | 7 | | highway defined in Article 2 of the Illinois Highway
Code.
| 8 | | (6) "State agencies" shall mean all departments, | 9 | | officers, boards,
commissions, institutions and bodies | 10 | | politic and corporate of the State,
but does not include | 11 | | the Board of Trustees of the University of Illinois,
the | 12 | | Board of Trustees of Southern Illinois University,
the | 13 | | Board of Trustees
of Chicago State University, the Board | 14 | | of Trustees of Eastern Illinois
University, the Board of | 15 | | Trustees of Governors State University, the Board of
| 16 | | Trustees of Illinois State University, the Board of | 17 | | Trustees of Northeastern
Illinois
University, the Board of | 18 | | Trustees of Northern Illinois University, the Board of
| 19 | | Trustees of Western Illinois University,
municipalities or | 20 | | other local governmental units, or other State | 21 | | constitutional
officers.
| 22 | | (7) "Public institutions of higher education" means | 23 | | the University of Illinois, Southern Illinois University, | 24 | | Chicago State University, Eastern Illinois University, | 25 | | Governors State University, Illinois State University, | 26 | | Northeastern Illinois University, Northern Illinois |
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| 1 | | University, Western Illinois University, the public | 2 | | community colleges of the State, and any other public | 3 | | universities, colleges, and community colleges now or | 4 | | hereafter established or authorized by the General | 5 | | Assembly.
| 6 | | (8) "Certification" means a determination made by the | 7 | | Council
or by one delegated authority from the Council to | 8 | | make certifications, or by
a State agency with statutory | 9 | | authority to make such a certification, that a
business | 10 | | entity is a business owned by a
minority, woman, or person | 11 | | with a disability for whatever
purpose. A business owned | 12 | | and controlled by women shall be certified as a | 13 | | "woman-owned business". A business owned and controlled by | 14 | | women who are also minorities shall be certified as both a | 15 | | "women-owned business" and a "minority-owned business".
| 16 | | (9) "Control" means the exclusive or ultimate and sole | 17 | | control of the
business including, but not limited to, | 18 | | capital investment and all other
financial matters, | 19 | | property, acquisitions, contract negotiations, legal
| 20 | | matters, officer-director-employee selection and | 21 | | comprehensive hiring,
operating responsibilities, | 22 | | cost-control matters, income and dividend
matters, | 23 | | financial transactions and rights of other shareholders or | 24 | | joint
partners. Control shall be real, substantial and | 25 | | continuing, not pro forma.
Control shall include the power | 26 | | to direct or cause the direction of the
management and |
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| 1 | | policies of the business and to make the day-to-day as | 2 | | well
as major decisions in matters of policy, management | 3 | | and operations.
Control shall be exemplified by possessing | 4 | | the requisite knowledge and
expertise to run the | 5 | | particular business and control shall not include
simple | 6 | | majority or absentee ownership.
| 7 | | (10) "Business" means a business that has annual gross | 8 | | sales of less than $150,000,000 as evidenced by the | 9 | | federal income tax return of the business. A firm with | 10 | | gross sales in excess of this cap may apply to the Council | 11 | | for certification for a particular contract if the firm | 12 | | can demonstrate that the contract would have significant | 13 | | impact on businesses owned by minorities, women, or | 14 | | persons with disabilities as suppliers or subcontractors | 15 | | or in employment of minorities, women, or persons with | 16 | | disabilities. Firms with gross sales in excess of this cap
| 17 | | that are granted certification by the Council shall be
| 18 | | granted certification for the life of the contract,
| 19 | | including available renewals.
| 20 | | (11) "Utilization plan" means a form and additional | 21 | | documentations included in all bids or proposals that | 22 | | demonstrates a vendor's proposed utilization of vendors | 23 | | certified by the Business Enterprise Program to meet the | 24 | | targeted goal. The utilization plan shall demonstrate that | 25 | | the Vendor has either: (1) met the entire contract goal or | 26 | | (2) requested a full or partial waiver and made good faith |
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| 1 | | efforts towards meeting the goal. | 2 | | (12) "Business Enterprise Program" means the Business | 3 | | Enterprise Program of the Commission on Equity and | 4 | | Inclusion. | 5 | | (B) When a business is owned at least 51% by any | 6 | | combination of
minority persons, women, or persons with | 7 | | disabilities,
even though none of the 3 classes alone holds at | 8 | | least a 51% interest, the
ownership
requirement for purposes | 9 | | of this Act is considered to be met. The
certification | 10 | | category for the business is that of the class holding the
| 11 | | largest ownership
interest in the business. If 2 or more | 12 | | classes have equal ownership interests,
the certification | 13 | | category shall be determined by
the business.
| 14 | | (Source: P.A. 101-601, eff. 1-1-20; 101-657, eff. 1-1-22; | 15 | | 102-29, eff. 6-25-21; 102-1119, eff. 1-23-23.) | 16 | | Section 25. The Minimum Wage Law is amended by changing | 17 | | Section 10 as follows:
| 18 | | (820 ILCS 105/10) (from Ch. 48, par. 1010)
| 19 | | Sec. 10.
(a) The Director shall make and revise | 20 | | administrative regulations,
including definitions of terms, as | 21 | | the Director he deems appropriate to carry out the
purposes of | 22 | | this Act, to prevent the circumvention or evasion thereof, and
| 23 | | to safeguard the minimum wage established by the Act. | 24 | | Regulations governing
employment of learners may be issued |
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| 1 | | only after notice and opportunity for
public hearing, as | 2 | | provided in subsection (c) of this Section.
| 3 | | (b) (Blank). In order to prevent curtailment of | 4 | | opportunities for employment,
avoid undue hardship, and | 5 | | safeguard the minimum wage rate under this Act,
the Director | 6 | | may also issue regulations providing for the employment of
| 7 | | workers with disabilities at wages lower than the wage rate | 8 | | applicable under this
Act, under permits and for such periods | 9 | | of time as specified therein; and
providing for the employment | 10 | | of learners at wages lower than the wage rate
applicable under | 11 | | this Act. However, such regulation shall not permit lower
| 12 | | wages for persons with disabilities on any basis that is | 13 | | unrelated to such person's
ability resulting from his | 14 | | disability, and such regulation may be issued only
after | 15 | | notice and opportunity for public hearing as provided in | 16 | | subsection
(c) of this Section.
| 17 | | (c) Prior to the adoption, amendment or repeal of any rule | 18 | | or regulation
by the Director under this Act, except | 19 | | regulations which concern only the
internal management of the | 20 | | Department of Labor and do not affect any public
right | 21 | | provided by this Act, the Director shall give proper notice to
| 22 | | persons in any industry or occupation that may be affected by | 23 | | the proposed
rule or regulation, and hold a public hearing on | 24 | | the Director's his proposed action at
which any such affected | 25 | | person, or the Director's his duly authorized representative, | 26 | | may
attend and testify or present other evidence for or |
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| 1 | | against such proposed
rule or regulation. Rules and | 2 | | regulations adopted under this Section shall
be filed with the | 3 | | Secretary of State in compliance with "An Act concerning
| 4 | | administrative rules", as now or hereafter amended. Such | 5 | | adopted and filed
rules and regulations shall become effective | 6 | | 10 days after copies thereof
have been mailed by the | 7 | | Department to persons in industries affected
thereby at their | 8 | | last known address.
| 9 | | (d) The commencement of proceedings by any person | 10 | | aggrieved by an
administrative regulation issued under this | 11 | | Act does not, unless
specifically ordered by the Court, | 12 | | operate as a stay of that administrative
regulation against | 13 | | other persons. The Court shall not grant any stay of an
| 14 | | administrative regulation unless the person complaining of | 15 | | such regulation
files in the Court an undertaking with a | 16 | | surety or sureties satisfactory to
the Court for the payment | 17 | | to the employees affected by the regulation, in
the event such | 18 | | regulation is affirmed, of the amount by which the
| 19 | | compensation such employees are entitled to receive under the | 20 | | regulation
exceeds the compensation they actually receive | 21 | | while such stay is in
effect. | 22 | | (e) The Department may adopt emergency rules in
accordance | 23 | | with Section 5-45 of the Illinois Administrative
Procedure Act | 24 | | to implement the changes made by this amendatory Act of the | 25 | | 101st General Assembly.
| 26 | | (Source: P.A. 101-1, eff. 2-19-19.)
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| 1 | | (820 ILCS 105/5 rep.)
| 2 | | Section 30. The Minimum Wage Law is amended by repealing | 3 | | Section 5.
| 4 | | Section 99. Effective date. This Act takes effect upon | 5 | | becoming law.".
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