Full Text of HB2298 101st General Assembly
HB2298 101ST GENERAL ASSEMBLY |
| | 101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020 HB2298 Introduced , by Rep. Delia C. Ramirez SYNOPSIS AS INTRODUCED: |
| 30 ILCS 500/45-37 new | | 30 ILCS 575/2 | | 220 ILCS 5/5-117 | |
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Amends the Illinois Procurement Code. Creates a procurement preference for not-for-profit organizations owned by women, minorities, and persons with a disability. Amends the Business Enterprise for Minorities, Women, and Persons with Disabilities Act. Allows for the certification of and the preference in awarding of State contracts to not-for-profit organizations owned by women, minorities, and persons with a disability under the Act. Amends the Public Utilities Act. Provides that specified supplier diversity goal requirements under the Act apply to not-for-profit female-owned (women-owned), minority-owned, veteran-owned, and person with a disability-owned companies or businesses.
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| | | FISCAL NOTE ACT MAY APPLY | |
| | A BILL FOR |
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| 1 | | AN ACT concerning finance.
| 2 | | Be it enacted by the People of the State of Illinois,
| 3 | | represented in the General Assembly:
| 4 | | Section 5. The Illinois Procurement Code is amended by | 5 | | adding Section 45-37 as follows: | 6 | | (30 ILCS 500/45-37 new) | 7 | | Sec. 45-37. Not-for-profit organizations owned by women, | 8 | | minorities, and persons with a disability. | 9 | | (a) Qualification. Supplies and services may be procured | 10 | | from any qualified not-for-profit organization owned by women, | 11 | | minorities, or persons with a disability that: | 12 | | (1) complies with applicable Illinois laws governing | 13 | | private not-for-profit organizations and is recognized by | 14 | | the United States Internal Revenue Service as a tax-exempt | 15 | | entity described in Section 501(c)(3) of the Internal | 16 | | Revenue Code of 1986; and | 17 | | (2) is certified as a "women-owned business", a | 18 | | "minority-owned business", or a "business owned by a person | 19 | | with a disability" as defined under Section 2 of the | 20 | | Business Enterprise for Minorities, Women, and Persons | 21 | | with Disabilities Act. | 22 | | (b) Participation. To participate, the not-for-profit | 23 | | organization 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) Conditions for Use. Each chief procurement officer | 4 | | shall, in consultation with the Department of Central | 5 | | Management Services, determine which articles, materials, | 6 | | services, food stuffs, and supplies that are produced, | 7 | | manufactured, or provided by a qualified not-for-profit | 8 | | organization under this Section shall be given preference by | 9 | | purchasing agencies procuring those items. | 10 | | (d) Subcontracts. Subcontracts shall be permitted for | 11 | | agreements authorized under this Section. For the purposes of | 12 | | this subsection (d), "subcontract" means any acquisition from | 13 | | another source of supplies, not including raw materials, or | 14 | | services required by a qualified not-for-profit organization | 15 | | to provide the supplies or services that are the subject of the | 16 | | contract between the State and the qualified not-for-profit | 17 | | organization. | 18 | | The Department of Central Management Services shall | 19 | | develop guidelines to be followed by qualified not-for-profit | 20 | | organizations under this Section when seeking and establishing | 21 | | subcontracts in order to fulfill State contract requirements. | 22 | | These guidelines shall include the following: | 23 | | (A) The Department must approve all subcontracts and | 24 | | substantive amendments to subcontracts prior to execution | 25 | | or amendment of the subcontract. | 26 | | (B) A qualified not-for-profit organization shall not
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| 1 | | enter into a subcontract, or any combination of | 2 | | subcontracts, to fulfill an entire requirement, contract, | 3 | | or order without the written approval of the Department. | 4 | | (C) A qualified not-for-profit organization shall make | 5 | | reasonable efforts to utilize subcontracts with other | 6 | | not-for-profit organizations owned by women, minorities, | 7 | | or persons with a disability. | 8 | | (D) For any subcontract not currently performed by a
| 9 | | qualified not-for-profit organization, the primary | 10 | | qualified not-for-profit organization must provide to the | 11 | | Department the following: (i) a written explanation as to | 12 | | why the subcontract is not performed by a qualified | 13 | | not-for-profit organization; and (ii) a written plan to | 14 | | transfer the subcontract to a qualified not-for-profit | 15 | | agency, as reasonable. | 16 | | (e) Annual report. Beginning January 1, 2021, and for each | 17 | | year thereafter, the Department of Central Management Services | 18 | | shall submit a report to the Governor and the General Assembly | 19 | | concerning qualified not-for-profit organizations | 20 | | participating under this Section, and the report shall include, | 21 | | but not be limited to: (i) the services provided by | 22 | | participating qualified not-for-profit organizations, | 23 | | including the cost for such services; (ii) the State agencies | 24 | | to which such services were provided; (iii) whether a | 25 | | subcontractor was used in providing the services; and (iv) any | 26 | | other information the Department may deem necessary. |
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| 1 | | (f) Rules. The Department of Central Management Services | 2 | | shall adopt rules to implement and administer the procurement | 3 | | preference provided under this Section. | 4 | | Section 10. The Business Enterprise for Minorities, Women, | 5 | | and Persons with
Disabilities Act is amended by changing | 6 | | Section 2 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 | 11 | | have 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 | 17 | | and South America, including Central America, and who | 18 | | maintains tribal affiliation or community attachment). | 19 | | (b) Asian (a person having origins in any of the | 20 | | original peoples of the Far East, Southeast Asia, or | 21 | | the Indian subcontinent, including, but not limited | 22 | | to, Cambodia, China, India, Japan, Korea, Malaysia, | 23 | | Pakistan, the Philippine Islands, Thailand, and | 24 | | Vietnam). |
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| 1 | | (c) Black or African American (a person having | 2 | | origins in any of the black racial groups of Africa). | 3 | | Terms such as "Haitian" or "Negro" can be used in | 4 | | addition to "Black or African American". | 5 | | (d) Hispanic or Latino (a person of Cuban, Mexican, | 6 | | Puerto Rican, South or Central American, or other | 7 | | Spanish culture or origin, regardless of race). | 8 | | (e) Native Hawaiian or Other Pacific Islander (a | 9 | | person having origins in any of the original peoples of | 10 | | Hawaii, Guam, Samoa, or other Pacific Islands).
| 11 | | (2) "Woman" shall mean a person who is a citizen or | 12 | | lawful permanent
resident of the United States and who is | 13 | | of the female gender.
| 14 | | (2.05) "Person with a disability" means a person who is | 15 | | a citizen or
lawful resident of the United States and is a | 16 | | person qualifying as a person with a disability under | 17 | | subdivision (2.1) of this subsection (A).
| 18 | | (2.1) "Person with a disability" means a person with a | 19 | | severe physical or mental disability that:
| 20 | | (a) results from:
| 21 | | amputation,
| 22 | | arthritis,
| 23 | | autism,
| 24 | | blindness,
| 25 | | burn injury,
| 26 | | cancer,
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| 1 | | cerebral palsy,
| 2 | | Crohn's disease, | 3 | | cystic fibrosis,
| 4 | | deafness,
| 5 | | head injury,
| 6 | | heart disease,
| 7 | | hemiplegia,
| 8 | | hemophilia,
| 9 | | respiratory or pulmonary dysfunction,
| 10 | | an intellectual disability,
| 11 | | mental illness,
| 12 | | multiple sclerosis,
| 13 | | muscular dystrophy,
| 14 | | musculoskeletal disorders,
| 15 | | neurological disorders, including stroke and | 16 | | epilepsy,
| 17 | | paraplegia,
| 18 | | quadriplegia and other spinal cord conditions,
| 19 | | sickle cell anemia,
| 20 | | ulcerative colitis, | 21 | | specific learning disabilities, or
| 22 | | end stage renal failure disease; and
| 23 | | (b) substantially limits one or more of the | 24 | | person's major life activities.
| 25 | | Another disability or combination of disabilities may | 26 | | also be considered
as a severe disability for the purposes |
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| 1 | | of item (a) of this
subdivision (2.1) if it is determined | 2 | | by an evaluation of
rehabilitation potential to
cause a | 3 | | comparable degree of substantial functional limitation | 4 | | similar to
the specific list of disabilities listed in item | 5 | | (a) of this
subdivision (2.1).
| 6 | | (3) "Minority-owned business" means a business which | 7 | | is at least
51% owned by one or more minority persons, or | 8 | | in the case of a
corporation, at least 51% of the stock in | 9 | | which is owned by one or
more minority persons; and the | 10 | | management and daily business operations of
which are | 11 | | controlled by one or more of the minority individuals who | 12 | | own it. A not-for-profit organization whose Board of | 13 | | Directors consists of at least 51% minority persons, or | 14 | | whose executive director is a minority person, that is | 15 | | exempt from taxation under Section 501 of the Internal | 16 | | Revenue Code of 1986 is also considered a "minority-owned | 17 | | business".
| 18 | | (4) "Women-owned business" means a business which is at | 19 | | least
51% owned by one or more women, or, in the case of a | 20 | | corporation, at
least 51% of the stock in which is owned by | 21 | | one or more women; and the
management and daily business | 22 | | operations of which are controlled by one or
more of the | 23 | | women who own it. A not-for-profit organization whose Board | 24 | | of Directors consists of at least 51% women, or whose | 25 | | executive director is a woman, that is exempt from taxation | 26 | | under Section 501 of the Internal Revenue Code of 1986 is |
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| 1 | | also considered a "women-owned business".
| 2 | | (4.1) "Business owned by a person with a disability" | 3 | | means a business
that is at least 51% owned by one or more | 4 | | persons with a disability
and the management and daily | 5 | | business operations of which
are controlled by one or more | 6 | | of the persons with disabilities who own it. A
| 7 | | not-for-profit agency for persons with disabilities or a | 8 | | not-for-profit organization whose Board of Directors | 9 | | consists of at least 51% persons with a disability, or | 10 | | whose executive director is a person with a disability, | 11 | | that is exempt from
taxation under Section 501 of the | 12 | | Internal Revenue Code of 1986 is also
considered a | 13 | | "business owned by a person with a disability".
| 14 | | (4.2) "Council" means the Business Enterprise Council | 15 | | for Minorities, Women, and Persons with Disabilities | 16 | | created under Section 5 of this 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 shall | 26 | | control over any existing definition under this Act or |
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| 1 | | 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 of | 14 | | 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 well
| 2 | | as major decisions in matters of policy, management and | 3 | | operations.
Control shall be exemplified by possessing the | 4 | | requisite knowledge and
expertise to run the particular | 5 | | business and control shall not include
simple majority or | 6 | | absentee ownership.
| 7 | | (10) "Business" means a business that has annual gross | 8 | | sales of less than $75,000,000 as evidenced by the federal | 9 | | income tax return of the business. A firm with gross sales | 10 | | in excess of this cap may apply to the Council for | 11 | | certification for a particular contract if the firm can | 12 | | demonstrate that the contract would have significant | 13 | | impact on businesses owned by minorities, women, or persons | 14 | | with disabilities as suppliers or subcontractors or in | 15 | | employment of minorities, women, or persons with | 16 | | disabilities.
| 17 | | (11) "Utilization plan" means a form and additional | 18 | | documentations included in all bids or proposals that | 19 | | demonstrates a vendor's proposed utilization of vendors | 20 | | certified by the Business Enterprise Program to meet the | 21 | | targeted goal. The utilization plan shall demonstrate that | 22 | | the Vendor has either: (1) met the entire contract goal or | 23 | | (2) requested a full or partial waiver and made good faith | 24 | | efforts towards meeting the goal. | 25 | | (12) "Business Enterprise Program" means the Business | 26 | | Enterprise Program of the Department of Central Management |
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| 1 | | Services. | 2 | | (B) When a business is owned at least 51% by any | 3 | | combination of
minority persons, women, or persons with | 4 | | disabilities,
even though none of the 3 classes alone holds at | 5 | | least a 51% interest, the
ownership
requirement for purposes of | 6 | | this Act is considered to be met. When a not-for-profit | 7 | | organization's Board of Directors consists of at least 51% of | 8 | | any combination of minority persons, women, or persons with | 9 | | disabilities, even though none of the 3 classes alone holds at | 10 | | least 51% share, the Board membership requirement for purposes | 11 | | of this Act shall be considered met. The
certification category | 12 | | for the business is that of the class holding the
largest | 13 | | ownership
interest in the business. If 2 or more classes have | 14 | | equal ownership interests,
the certification category shall be | 15 | | determined by
the business or not-for-profit organization .
| 16 | | (Source: P.A. 99-143, eff. 7-27-15; 99-462, eff. 8-25-15; | 17 | | 99-642, eff. 7-28-16; 100-391, eff. 8-25-17.) | 18 | | Section 15. The Public Utilities Act is amended by changing | 19 | | Section 5-117 as follows: | 20 | | (220 ILCS 5/5-117) | 21 | | Sec. 5-117. Supplier diversity goals. | 22 | | (a) The public policy of this State is to collaboratively | 23 | | work with companies that serve Illinois residents to improve | 24 | | their supplier diversity in a non-antagonistic manner. |
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| 1 | | (b) The Commission shall require all gas, electric, and | 2 | | water companies with at least 100,000 customers under its | 3 | | authority, as well as suppliers of wind energy, solar energy,
| 4 | | hydroelectricity, nuclear energy, and any other supplier of
| 5 | | energy within this State, to submit an annual report by April | 6 | | 15, 2015 and every April 15 thereafter, in a searchable Adobe | 7 | | PDF format, on all procurement goals and actual spending for | 8 | | female-owned, minority-owned, veteran-owned, person with a | 9 | | disability-owned, and small business enterprises in the | 10 | | previous calendar year. These goals shall be expressed as a | 11 | | percentage of the total work performed by the entity submitting | 12 | | the report, and the actual spending for all female-owned, | 13 | | minority-owned, veteran-owned, person with a disability-owned, | 14 | | and small business enterprises shall also be expressed as a | 15 | | percentage of the total work performed by the entity submitting | 16 | | the report. | 17 | | (c) Each participating company in its annual report shall | 18 | | include the following information: | 19 | | (1) an explanation of the plan for the next year to | 20 | | increase participation; | 21 | | (2) an explanation of the plan to increase the goals; | 22 | | (3) the areas of procurement each company shall be | 23 | | actively seeking more participation in in the next year; | 24 | | (4) an outline of the plan to alert and encourage | 25 | | potential vendors in that area to seek business from the | 26 | | company; |
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| 1 | | (5) an explanation of the challenges faced in finding | 2 | | quality vendors and offer any suggestions for what the | 3 | | Commission could do to be helpful to identify those | 4 | | vendors; | 5 | | (6) a list of the certifications the company | 6 | | recognizes; | 7 | | (7) the point of contact for any potential vendor who | 8 | | wishes to do business with the company and explain the | 9 | | process for a vendor to enroll with the company as a | 10 | | minority-owned, women-owned, or veteran-owned , or person | 11 | | with a disability-owned company; and | 12 | | (8) any particular success stories to encourage other | 13 | | companies to emulate best practices. | 14 | | (d) Each annual report shall include as much State-specific | 15 | | data as possible. If the submitting entity does not submit | 16 | | State-specific data, then the company shall include any | 17 | | national data it does have and explain why it could not submit | 18 | | State-specific data and how it intends to do so in future | 19 | | reports, if possible. | 20 | | (e) Each annual report shall include the rules, | 21 | | regulations, and definitions used for the procurement goals in | 22 | | the company's annual report. | 23 | | (f) The Commission and all participating entities shall | 24 | | hold an annual workshop open to the public in 2015 and every | 25 | | year thereafter on the state of supplier diversity to | 26 | | collaboratively seek solutions to structural impediments to |
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| 1 | | achieving stated goals, including testimony from each | 2 | | participating entity as well as subject matter experts and | 3 | | advocates. The Commission shall publish a database on its | 4 | | website of the point of contact for each participating entity | 5 | | for supplier diversity, along with a list of certifications | 6 | | each company recognizes from the information submitted in each | 7 | | annual report. The Commission shall publish each annual report | 8 | | on its website and shall maintain each annual report for at | 9 | | least 5 years.
| 10 | | (g) For the purposes of this Section, female-owned | 11 | | (women-owned), minority-owned, veteran-owned, and person with | 12 | | a disability-owned companies or businesses include | 13 | | not-for-profit organizations that are exempt from taxation | 14 | | under Section 501(c)(3) of the Internal Revenue Code of 1986, | 15 | | in which at least 50% of the managing board are women, | 16 | | minorities, veterans, or persons with a disability, or in which | 17 | | the executive director is a woman, minority, veteran, or person | 18 | | with a disability. | 19 | | (Source: P.A. 98-1056, eff. 8-26-14; 99-906, eff. 6-1-17 .)
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