Full Text of HB5421 98th General Assembly
HB5421 98TH GENERAL ASSEMBLY |
| | 98TH GENERAL ASSEMBLY
State of Illinois
2013 and 2014 HB5421 Introduced , by Rep. Monique D. Davis SYNOPSIS AS INTRODUCED: |
| 215 ILCS 5/Art. XLVI heading new | | 215 ILCS 5/1700 new | | 215 ILCS 5/1705 new | | 215 ILCS 5/1710 new | | 215 ILCS 5/1715 new | | 215 ILCS 5/1720 new | | 215 ILCS 5/1725 new | |
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Amends the Illinois Insurance Code to create the Diversity Reporting Article within the Code. Sets forth legislative findings and definitions. Provides that all companies that collect premiums greater than $1,000,000 shall submit a report to the Director of Insurance concerning its procurement efforts regarding enterprises owned by minorities, women, qualified service-disabled veterans, and persons with disabilities. Provides that an entity that does not enter into contracts to procure goods or services in this State satisfies the reporting requirements by filing a statement with the Director attesting that it does not enter into procurement contracts in Illinois. Sets forth provisions concerning filing, penalties, and reporting updates and public availability.
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| | | FISCAL NOTE ACT MAY APPLY | |
| | A BILL FOR |
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| 1 | | AN ACT concerning regulation.
| 2 | | Be it enacted by the People of the State of Illinois,
| 3 | | represented in the General Assembly:
| 4 | | Section 5. The Illinois Insurance Code is amended by adding | 5 | | Art. XLVI as follows: | 6 | | (215 ILCS 5/Art. XLVI heading new) | 7 | | ARTICLE XLVI. DIVERSITY REPORTING | 8 | | (215 ILCS 5/1700 new) | 9 | | Sec. 1700. Legislative findings. The General Assembly | 10 | | finds that enterprises owned by minorities, women, qualified | 11 | | service-disabled veterans, and persons with disabilities are | 12 | | under-utilized in the sale of goods and services used in the | 13 | | insurance industry, and accordingly deems it a prudent business | 14 | | practice and in the interests of the people of the State of | 15 | | Illinois to develop and promote economic opportunities for | 16 | | enterprises owned by minorities, women, qualified | 17 | | service-disabled veterans, and persons with disabilities in | 18 | | the insurance industry whenever possible. | 19 | | The General Assembly further declares that it is the public | 20 | | policy of this State to promote and encourage the continuous | 21 | | economic development of businesses owned by minorities, women, | 22 | | qualified service-disabled veterans, and persons with |
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| 1 | | disabilities by providing that each major insurer submit to the | 2 | | Director of Insurance a report explaining the reporting | 3 | | entity's supplier diversity statement and expressing its goals | 4 | | regarding enterprises. The Director shall publish the reports | 5 | | on the Department of Insurance's Internet website, so that | 6 | | those reports will help facilitate these supplier | 7 | | relationships. | 8 | | (215 ILCS 5/1705 new) | 9 | | Sec. 1705. Definitions. In this Article: | 10 | | "Department" means the Department of Insurance. | 11 | | "Director" means the Director of Insurance. | 12 | | "Enterprise" means a minority owned business, a business | 13 | | owned by a person with a disability, or a female owned | 14 | | business, as those terms are defined in the Business Enterprise | 15 | | for Minorities, Females, and Persons with Disabilities Act, or | 16 | | a business owned by a qualified service-disabled veteran that | 17 | | has been certified by the Department of Veterans' Affairs and | 18 | | the Department of Central Management Services pursuant to | 19 | | Section 45-57 of the Illinois Procurement Code. | 20 | | "Reporting entity" means all companies licensed by the | 21 | | Department of Insurance. | 22 | | (215 ILCS 5/1710 new) | 23 | | Sec. 1710. Applicability. All companies that collect | 24 | | premiums greater than $1,000,000 shall submit a report to the |
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| 1 | | Director concerning its procurement efforts regarding | 2 | | enterprises owned by minorities, women, qualified | 3 | | service-disabled veterans, and persons with disabilities | 4 | | during the reporting period set forth in Sections 1720 and 1725 | 5 | | of this Code. | 6 | | (215 ILCS 5/1715 new) | 7 | | Sec. 1715. Filing. | 8 | | (a) Each reporting entity shall file a report in accordance | 9 | | with this Article concerning its procurement involving | 10 | | enterprises owned by minorities, women, qualified | 11 | | service-disabled veterans, and persons with disabilities. | 12 | | (b) The contents of the report shall include, but not be | 13 | | limited to, all of the following: | 14 | | (1) The reporting entity's supplier diversity policy | 15 | | statement. | 16 | | (2) The reporting entity's outreach and communications | 17 | | to enterprises, including the following: | 18 | | (A) The means by which the reporting entity | 19 | | encourages and seeks out enterprises to become | 20 | | potential suppliers. | 21 | | (B) The means by which the reporting entity | 22 | | encourages its employees involved in procurement to | 23 | | seek enterprises to become potential suppliers. | 24 | | (C) The means by which the reporting entity | 25 | | conducts outreach and communication to enterprises. |
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| 1 | | (D) The means by which the reporting entity | 2 | | supports organizations that promote or certify | 3 | | enterprises. | 4 | | (E) Information regarding appropriate contacts at | 5 | | the reporting entity for interested enterprises. | 6 | | (3) Information about which procurements are made from | 7 | | enterprises with at least a majority of the enterprise's | 8 | | workforce in Illinois, with each category aggregated | 9 | | separately, to the extent that information is readily | 10 | | accessible. | 11 | | A reporting entity may include other relevant information | 12 | | in the report. | 13 | | (c) A reporting entity that does not enter into contracts | 14 | | to procure goods or services in this State satisfies the | 15 | | requirements of this Section by filing a statement with the | 16 | | Director attesting that it does not enter into procurement | 17 | | contracts in Illinois. | 18 | | (d) Nothing in this Section shall be construed to require | 19 | | quotas, set-asides, or preferences in a reporting entity's | 20 | | procurement of goods or services, nor does this Section apply | 21 | | to insurer producer or licensee contracts. Reporting entities | 22 | | retain the authority to use business judgment to select the | 23 | | supplier for a particular contract. | 24 | | (e) Nothing in this Section shall preclude a reporting | 25 | | entity that is a member of an insurance holding company system, | 26 | | as defined in Section 131.1 of this Code, from complying with |
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| 1 | | this Section through a single filing on behalf of the entire | 2 | | group of affiliated companies. | 3 | | (215 ILCS 5/1720 new) | 4 | | Sec. 1720. Penalties. Failure to file the report required | 5 | | by Section 1715 of this Code by July 1, 2015 may subject the | 6 | | reporting entity to a civil penalty to be determined by the | 7 | | Director, not to exceed $5,000, or, if the act or practice was | 8 | | willful, a civil penalty not to exceed $10,000. A reporting | 9 | | entity may request, and the Director may grant, a 30-day | 10 | | extension to file the report if needed due to unintended or | 11 | | unforeseen delays. The Director may adopt rules as may be | 12 | | necessary or appropriate for the administration and | 13 | | enforcement of this Article. | 14 | | (215 ILCS 5/1725 new) | 15 | | Sec. 1725. Updates and public availability. | 16 | | (a) Not later than July 1, 2017, each reporting entity | 17 | | shall update its report and submit the new report to the | 18 | | Director once every 2 years. | 19 | | (b) By July 31, 2015, the Director shall establish and | 20 | | maintain a link on the Department's Internet website that | 21 | | provides public access to the contents of each reporting | 22 | | entities' report on enterprise procurement efforts. The | 23 | | Director shall include a statement on the Department's Internet | 24 | | website indicating that the information contained in the |
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| 1 | | reporting entities' report on enterprise procurement efforts | 2 | | is provided for informational purposes only.
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