SB0262 EngrossedLRB100 05183 HLH 15193 b

1    AN ACT concerning State government.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The State Comptroller Act is amended by changing
5Section 23.9 as follows:
 
6    (15 ILCS 405/23.9)
7    Sec. 23.9. Minority Contractor Opportunity Initiative. The
8State Comptroller Minority Contractor Opportunity Initiative
9is created to provide greater opportunities for minority-owned
10businesses, women-owned female-owned businesses, businesses
11owned by persons with disabilities, and small businesses with
1220 or fewer employees in this State to participate in the State
13procurement process. The initiative shall be administered by
14the Comptroller. Under this initiative, the Comptroller is
15responsible for the following: (i) outreach to minority-owned
16businesses, women-owned female-owned businesses, businesses
17owned by persons with disabilities, and small businesses
18capable of providing services to the State; (ii) education of
19minority-owned businesses, women-owned female-owned
20businesses, businesses owned by persons with disabilities, and
21small businesses concerning State contracting and procurement;
22(iii) notification of minority-owned businesses, women-owned
23female-owned businesses, businesses owned by persons with

 

 

SB0262 Engrossed- 2 -LRB100 05183 HLH 15193 b

1disabilities, and small businesses of State contracting
2opportunities; and (iv) maintenance of an online database of
3State contracts that identifies the contracts awarded to
4minority-owned businesses, women-owned female-owned
5businesses, businesses owned by persons with disabilities, and
6small businesses that includes the total amount paid by State
7agencies to contractors and the percentage paid to
8minority-owned businesses, women-owned female-owned
9businesses, businesses owned by persons with disabilities, and
10small businesses.
11    The Comptroller shall work with the Business Enterprise
12Council created under Section 5 of the Business Enterprise for
13Minorities, Women Females, and Persons with Disabilities Act to
14fulfill the Comptroller's responsibilities under this Section.
15The Comptroller may rely on the Business Enterprise Council's
16identification of minority-owned businesses, women-owned
17female-owned businesses, and businesses owned by persons with
18disabilities.
19    The Comptroller shall annually prepare and submit a report
20to the Governor and the General Assembly concerning the
21progress of this initiative including the following
22information for the preceding calendar year: (i) a statement of
23the total amounts paid by each executive branch agency to
24contractors since the previous report; (ii) the percentage of
25the amounts that were paid to minority-owned businesses,
26women-owned female-owned businesses, businesses owned by

 

 

SB0262 Engrossed- 3 -LRB100 05183 HLH 15193 b

1persons with disabilities, and small businesses; (iii) the
2successes achieved and the challenges faced by the Comptroller
3in operating outreach programs for minorities, women, persons
4with disabilities, and small businesses; (iv) the challenges
5each executive branch agency may face in hiring qualified
6minority, woman female, and small business employees and
7employees with disabilities and contracting with qualified
8minority-owned businesses, women-owned female-owned
9businesses, businesses owned by persons with disabilities, and
10small businesses; and (iv) any other information, findings,
11conclusions, and recommendations for legislative or agency
12action, as the Comptroller deems appropriate.
13    On and after the effective date of this amendatory Act of
14the 97th General Assembly, any bidder or offeror awarded a
15contract of $1,000 or more under Section 20-10, 20-15, 20-25,
16or 20-30 of the Illinois Procurement Code is required to pay a
17fee of $15 to cover expenses related to the administration of
18this Section. The Comptroller shall deduct the fee from the
19first check issued to the vendor under the contract and deposit
20the fee into the Comptroller's Administrative Fund. Contracts
21administered for statewide orders placed by agencies (commonly
22referred to as "statewide master contracts") are exempt from
23this fee.
24(Source: P.A. 98-797, eff. 7-31-14; 99-143, eff. 7-27-15.)
 
25    (20 ILCS 605/605-525 rep.)

 

 

SB0262 Engrossed- 4 -LRB100 05183 HLH 15193 b

1    Section 10. The Department of Commerce and Economic
2Opportunity Law of the Civil Administrative Code of Illinois is
3amended by repealing Section 605-525.
 
4    Section 15. The Illinois Lottery Law is amended by changing
5Section 9.1 as follows:
 
6    (20 ILCS 1605/9.1)
7    Sec. 9.1. Private manager and management agreement.
8    (a) As used in this Section:
9    "Offeror" means a person or group of persons that responds
10to a request for qualifications under this Section.
11    "Request for qualifications" means all materials and
12documents prepared by the Department to solicit the following
13from offerors:
14        (1) Statements of qualifications.
15        (2) Proposals to enter into a management agreement,
16    including the identity of any prospective vendor or vendors
17    that the offeror intends to initially engage to assist the
18    offeror in performing its obligations under the management
19    agreement.
20    "Final offer" means the last proposal submitted by an
21offeror in response to the request for qualifications,
22including the identity of any prospective vendor or vendors
23that the offeror intends to initially engage to assist the
24offeror in performing its obligations under the management

 

 

SB0262 Engrossed- 5 -LRB100 05183 HLH 15193 b

1agreement.
2    "Final offeror" means the offeror ultimately selected by
3the Governor to be the private manager for the Lottery under
4subsection (h) of this Section.
5    (b) By September 15, 2010, the Governor shall select a
6private manager for the total management of the Lottery with
7integrated functions, such as lottery game design, supply of
8goods and services, and advertising and as specified in this
9Section.
10    (c) Pursuant to the terms of this subsection, the
11Department shall endeavor to expeditiously terminate the
12existing contracts in support of the Lottery in effect on the
13effective date of this amendatory Act of the 96th General
14Assembly in connection with the selection of the private
15manager. As part of its obligation to terminate these contracts
16and select the private manager, the Department shall establish
17a mutually agreeable timetable to transfer the functions of
18existing contractors to the private manager so that existing
19Lottery operations are not materially diminished or impaired
20during the transition. To that end, the Department shall do the
21following:
22        (1) where such contracts contain a provision
23    authorizing termination upon notice, the Department shall
24    provide notice of termination to occur upon the mutually
25    agreed timetable for transfer of functions;
26        (2) upon the expiration of any initial term or renewal

 

 

SB0262 Engrossed- 6 -LRB100 05183 HLH 15193 b

1    term of the current Lottery contracts, the Department shall
2    not renew such contract for a term extending beyond the
3    mutually agreed timetable for transfer of functions; or
4        (3) in the event any current contract provides for
5    termination of that contract upon the implementation of a
6    contract with the private manager, the Department shall
7    perform all necessary actions to terminate the contract on
8    the date that coincides with the mutually agreed timetable
9    for transfer of functions.
10    If the contracts to support the current operation of the
11Lottery in effect on the effective date of this amendatory Act
12of the 96th General Assembly are not subject to termination as
13provided for in this subsection (c), then the Department may
14include a provision in the contract with the private manager
15specifying a mutually agreeable methodology for incorporation.
16    (c-5) The Department shall include provisions in the
17management agreement whereby the private manager shall, for a
18fee, and pursuant to a contract negotiated with the Department
19(the "Employee Use Contract"), utilize the services of current
20Department employees to assist in the administration and
21operation of the Lottery. The Department shall be the employer
22of all such bargaining unit employees assigned to perform such
23work for the private manager, and such employees shall be State
24employees, as defined by the Personnel Code. Department
25employees shall operate under the same employment policies,
26rules, regulations, and procedures, as other employees of the

 

 

SB0262 Engrossed- 7 -LRB100 05183 HLH 15193 b

1Department. In addition, neither historical representation
2rights under the Illinois Public Labor Relations Act, nor
3existing collective bargaining agreements, shall be disturbed
4by the management agreement with the private manager for the
5management of the Lottery.
6    (d) The management agreement with the private manager shall
7include all of the following:
8        (1) A term not to exceed 10 years, including any
9    renewals.
10        (2) A provision specifying that the Department:
11            (A) shall exercise actual control over all
12        significant business decisions;
13            (A-5) has the authority to direct or countermand
14        operating decisions by the private manager at any time;
15            (B) has ready access at any time to information
16        regarding Lottery operations;
17            (C) has the right to demand and receive information
18        from the private manager concerning any aspect of the
19        Lottery operations at any time; and
20            (D) retains ownership of all trade names,
21        trademarks, and intellectual property associated with
22        the Lottery.
23        (3) A provision imposing an affirmative duty on the
24    private manager to provide the Department with material
25    information and with any information the private manager
26    reasonably believes the Department would want to know to

 

 

SB0262 Engrossed- 8 -LRB100 05183 HLH 15193 b

1    enable the Department to conduct the Lottery.
2        (4) A provision requiring the private manager to
3    provide the Department with advance notice of any operating
4    decision that bears significantly on the public interest,
5    including, but not limited to, decisions on the kinds of
6    games to be offered to the public and decisions affecting
7    the relative risk and reward of the games being offered, so
8    the Department has a reasonable opportunity to evaluate and
9    countermand that decision.
10        (5) A provision providing for compensation of the
11    private manager that may consist of, among other things, a
12    fee for services and a performance based bonus as
13    consideration for managing the Lottery, including terms
14    that may provide the private manager with an increase in
15    compensation if Lottery revenues grow by a specified
16    percentage in a given year.
17        (6) (Blank).
18        (7) A provision requiring the deposit of all Lottery
19    proceeds to be deposited into the State Lottery Fund except
20    as otherwise provided in Section 20 of this Act.
21        (8) A provision requiring the private manager to locate
22    its principal office within the State.
23        (8-5) A provision encouraging that at least 20% of the
24    cost of contracts entered into for goods and services by
25    the private manager in connection with its management of
26    the Lottery, other than contracts with sales agents or

 

 

SB0262 Engrossed- 9 -LRB100 05183 HLH 15193 b

1    technical advisors, be awarded to businesses that are a
2    minority-owned minority owned business, a women-owned
3    female owned business, or a business owned by a person with
4    disability, as those terms are defined in the Business
5    Enterprise for Minorities, Women Females, and Persons with
6    Disabilities Act.
7        (9) A requirement that so long as the private manager
8    complies with all the conditions of the agreement under the
9    oversight of the Department, the private manager shall have
10    the following duties and obligations with respect to the
11    management of the Lottery:
12            (A) The right to use equipment and other assets
13        used in the operation of the Lottery.
14            (B) The rights and obligations under contracts
15        with retailers and vendors.
16            (C) The implementation of a comprehensive security
17        program by the private manager.
18            (D) The implementation of a comprehensive system
19        of internal audits.
20            (E) The implementation of a program by the private
21        manager to curb compulsive gambling by persons playing
22        the Lottery.
23            (F) A system for determining (i) the type of
24        Lottery games, (ii) the method of selecting winning
25        tickets, (iii) the manner of payment of prizes to
26        holders of winning tickets, (iv) the frequency of

 

 

SB0262 Engrossed- 10 -LRB100 05183 HLH 15193 b

1        drawings of winning tickets, (v) the method to be used
2        in selling tickets, (vi) a system for verifying the
3        validity of tickets claimed to be winning tickets,
4        (vii) the basis upon which retailer commissions are
5        established by the manager, and (viii) minimum
6        payouts.
7        (10) A requirement that advertising and promotion must
8    be consistent with Section 7.8a of this Act.
9        (11) A requirement that the private manager market the
10    Lottery to those residents who are new, infrequent, or
11    lapsed players of the Lottery, especially those who are
12    most likely to make regular purchases on the Internet as
13    permitted by law.
14        (12) A code of ethics for the private manager's
15    officers and employees.
16        (13) A requirement that the Department monitor and
17    oversee the private manager's practices and take action
18    that the Department considers appropriate to ensure that
19    the private manager is in compliance with the terms of the
20    management agreement, while allowing the manager, unless
21    specifically prohibited by law or the management
22    agreement, to negotiate and sign its own contracts with
23    vendors.
24        (14) A provision requiring the private manager to
25    periodically file, at least on an annual basis, appropriate
26    financial statements in a form and manner acceptable to the

 

 

SB0262 Engrossed- 11 -LRB100 05183 HLH 15193 b

1    Department.
2        (15) Cash reserves requirements.
3        (16) Procedural requirements for obtaining the prior
4    approval of the Department when a management agreement or
5    an interest in a management agreement is sold, assigned,
6    transferred, or pledged as collateral to secure financing.
7        (17) Grounds for the termination of the management
8    agreement by the Department or the private manager.
9        (18) Procedures for amendment of the agreement.
10        (19) A provision requiring the private manager to
11    engage in an open and competitive bidding process for any
12    procurement having a cost in excess of $50,000 that is not
13    a part of the private manager's final offer. The process
14    shall favor the selection of a vendor deemed to have
15    submitted a proposal that provides the Lottery with the
16    best overall value. The process shall not be subject to the
17    provisions of the Illinois Procurement Code, unless
18    specifically required by the management agreement.
19        (20) The transition of rights and obligations,
20    including any associated equipment or other assets used in
21    the operation of the Lottery, from the manager to any
22    successor manager of the lottery, including the
23    Department, following the termination of or foreclosure
24    upon the management agreement.
25        (21) Right of use of copyrights, trademarks, and
26    service marks held by the Department in the name of the

 

 

SB0262 Engrossed- 12 -LRB100 05183 HLH 15193 b

1    State. The agreement must provide that any use of them by
2    the manager shall only be for the purpose of fulfilling its
3    obligations under the management agreement during the term
4    of the agreement.
5        (22) The disclosure of any information requested by the
6    Department to enable it to comply with the reporting
7    requirements and information requests provided for under
8    subsection (p) of this Section.
9    (e) Notwithstanding any other law to the contrary, the
10Department shall select a private manager through a competitive
11request for qualifications process consistent with Section
1220-35 of the Illinois Procurement Code, which shall take into
13account:
14        (1) the offeror's ability to market the Lottery to
15    those residents who are new, infrequent, or lapsed players
16    of the Lottery, especially those who are most likely to
17    make regular purchases on the Internet;
18        (2) the offeror's ability to address the State's
19    concern with the social effects of gambling on those who
20    can least afford to do so;
21        (3) the offeror's ability to provide the most
22    successful management of the Lottery for the benefit of the
23    people of the State based on current and past business
24    practices or plans of the offeror; and
25        (4) the offeror's poor or inadequate past performance
26    in servicing, equipping, operating or managing a lottery on

 

 

SB0262 Engrossed- 13 -LRB100 05183 HLH 15193 b

1    behalf of Illinois, another State or foreign government and
2    attracting persons who are not currently regular players of
3    a lottery.
4    (f) The Department may retain the services of an advisor or
5advisors with significant experience in financial services or
6the management, operation, and procurement of goods, services,
7and equipment for a government-run lottery to assist in the
8preparation of the terms of the request for qualifications and
9selection of the private manager. Any prospective advisor
10seeking to provide services under this subsection (f) shall
11disclose any material business or financial relationship
12during the past 3 years with any potential offeror, or with a
13contractor or subcontractor presently providing goods,
14services, or equipment to the Department to support the
15Lottery. The Department shall evaluate the material business or
16financial relationship of each prospective advisor. The
17Department shall not select any prospective advisor with a
18substantial business or financial relationship that the
19Department deems to impair the objectivity of the services to
20be provided by the prospective advisor. During the course of
21the advisor's engagement by the Department, and for a period of
22one year thereafter, the advisor shall not enter into any
23business or financial relationship with any offeror or any
24vendor identified to assist an offeror in performing its
25obligations under the management agreement. Any advisor
26retained by the Department shall be disqualified from being an

 

 

SB0262 Engrossed- 14 -LRB100 05183 HLH 15193 b

1offeror. The Department shall not include terms in the request
2for qualifications that provide a material advantage whether
3directly or indirectly to any potential offeror, or any
4contractor or subcontractor presently providing goods,
5services, or equipment to the Department to support the
6Lottery, including terms contained in previous responses to
7requests for proposals or qualifications submitted to
8Illinois, another State or foreign government when those terms
9are uniquely associated with a particular potential offeror,
10contractor, or subcontractor. The request for proposals
11offered by the Department on December 22, 2008 as
12"LOT08GAMESYS" and reference number "22016176" is declared
13void.
14    (g) The Department shall select at least 2 offerors as
15finalists to potentially serve as the private manager no later
16than August 9, 2010. Upon making preliminary selections, the
17Department shall schedule a public hearing on the finalists'
18proposals and provide public notice of the hearing at least 7
19calendar days before the hearing. The notice must include all
20of the following:
21        (1) The date, time, and place of the hearing.
22        (2) The subject matter of the hearing.
23        (3) A brief description of the management agreement to
24    be awarded.
25        (4) The identity of the offerors that have been
26    selected as finalists to serve as the private manager.

 

 

SB0262 Engrossed- 15 -LRB100 05183 HLH 15193 b

1        (5) The address and telephone number of the Department.
2    (h) At the public hearing, the Department shall (i) provide
3sufficient time for each finalist to present and explain its
4proposal to the Department and the Governor or the Governor's
5designee, including an opportunity to respond to questions
6posed by the Department, Governor, or designee and (ii) allow
7the public and non-selected offerors to comment on the
8presentations. The Governor or a designee shall attend the
9public hearing. After the public hearing, the Department shall
10have 14 calendar days to recommend to the Governor whether a
11management agreement should be entered into with a particular
12finalist. After reviewing the Department's recommendation, the
13Governor may accept or reject the Department's recommendation,
14and shall select a final offeror as the private manager by
15publication of a notice in the Illinois Procurement Bulletin on
16or before September 15, 2010. The Governor shall include in the
17notice a detailed explanation and the reasons why the final
18offeror is superior to other offerors and will provide
19management services in a manner that best achieves the
20objectives of this Section. The Governor shall also sign the
21management agreement with the private manager.
22    (i) Any action to contest the private manager selected by
23the Governor under this Section must be brought within 7
24calendar days after the publication of the notice of the
25designation of the private manager as provided in subsection
26(h) of this Section.

 

 

SB0262 Engrossed- 16 -LRB100 05183 HLH 15193 b

1    (j) The Lottery shall remain, for so long as a private
2manager manages the Lottery in accordance with provisions of
3this Act, a Lottery conducted by the State, and the State shall
4not be authorized to sell or transfer the Lottery to a third
5party.
6    (k) Any tangible personal property used exclusively in
7connection with the lottery that is owned by the Department and
8leased to the private manager shall be owned by the Department
9in the name of the State and shall be considered to be public
10property devoted to an essential public and governmental
11function.
12    (l) The Department may exercise any of its powers under
13this Section or any other law as necessary or desirable for the
14execution of the Department's powers under this Section.
15    (m) Neither this Section nor any management agreement
16entered into under this Section prohibits the General Assembly
17from authorizing forms of gambling that are not in direct
18competition with the Lottery.
19    (n) The private manager shall be subject to a complete
20investigation in the third, seventh, and tenth years of the
21agreement (if the agreement is for a 10-year term) by the
22Department in cooperation with the Auditor General to determine
23whether the private manager has complied with this Section and
24the management agreement. The private manager shall bear the
25cost of an investigation or reinvestigation of the private
26manager under this subsection.

 

 

SB0262 Engrossed- 17 -LRB100 05183 HLH 15193 b

1    (o) The powers conferred by this Section are in addition
2and supplemental to the powers conferred by any other law. If
3any other law or rule is inconsistent with this Section,
4including, but not limited to, provisions of the Illinois
5Procurement Code, then this Section controls as to any
6management agreement entered into under this Section. This
7Section and any rules adopted under this Section contain full
8and complete authority for a management agreement between the
9Department and a private manager. No law, procedure,
10proceeding, publication, notice, consent, approval, order, or
11act by the Department or any other officer, Department, agency,
12or instrumentality of the State or any political subdivision is
13required for the Department to enter into a management
14agreement under this Section. This Section contains full and
15complete authority for the Department to approve any contracts
16entered into by a private manager with a vendor providing
17goods, services, or both goods and services to the private
18manager under the terms of the management agreement, including
19subcontractors of such vendors.
20    Upon receipt of a written request from the Chief
21Procurement Officer, the Department shall provide to the Chief
22Procurement Officer a complete and un-redacted copy of the
23management agreement or any contract that is subject to the
24Department's approval authority under this subsection (o). The
25Department shall provide a copy of the agreement or contract to
26the Chief Procurement Officer in the time specified by the

 

 

SB0262 Engrossed- 18 -LRB100 05183 HLH 15193 b

1Chief Procurement Officer in his or her written request, but no
2later than 5 business days after the request is received by the
3Department. The Chief Procurement Officer must retain any
4portions of the management agreement or of any contract
5designated by the Department as confidential, proprietary, or
6trade secret information in complete confidence pursuant to
7subsection (g) of Section 7 of the Freedom of Information Act.
8The Department shall also provide the Chief Procurement Officer
9with reasonable advance written notice of any contract that is
10pending Department approval.
11    Notwithstanding any other provision of this Section to the
12contrary, the Chief Procurement Officer shall adopt
13administrative rules, including emergency rules, to establish
14a procurement process to select a successor private manager if
15a private management agreement has been terminated. The
16selection process shall at a minimum take into account the
17criteria set forth in items (1) through (4) of subsection (e)
18of this Section and may include provisions consistent with
19subsections (f), (g), (h), and (i) of this Section. The Chief
20Procurement Officer shall also implement and administer the
21adopted selection process upon the termination of a private
22management agreement. The Department, after the Chief
23Procurement Officer certifies that the procurement process has
24been followed in accordance with the rules adopted under this
25subsection (o), shall select a final offeror as the private
26manager and sign the management agreement with the private

 

 

SB0262 Engrossed- 19 -LRB100 05183 HLH 15193 b

1manager.
2    Except as provided in Sections 21.5, 21.6, 21.7, 21.8, and
321.9, the Department shall distribute all proceeds of lottery
4tickets and shares sold in the following priority and manner:
5        (1) The payment of prizes and retailer bonuses.
6        (2) The payment of costs incurred in the operation and
7    administration of the Lottery, including the payment of
8    sums due to the private manager under the management
9    agreement with the Department.
10        (3) On the last day of each month or as soon thereafter
11    as possible, the State Comptroller shall direct and the
12    State Treasurer shall transfer from the State Lottery Fund
13    to the Common School Fund an amount that is equal to the
14    proceeds transferred in the corresponding month of fiscal
15    year 2009, as adjusted for inflation, to the Common School
16    Fund.
17        (4) On or before the last day of each fiscal year,
18    deposit any remaining proceeds, subject to payments under
19    items (1), (2), and (3) into the Capital Projects Fund each
20    fiscal year.
21    (p) The Department shall be subject to the following
22reporting and information request requirements:
23        (1) the Department shall submit written quarterly
24    reports to the Governor and the General Assembly on the
25    activities and actions of the private manager selected
26    under this Section;

 

 

SB0262 Engrossed- 20 -LRB100 05183 HLH 15193 b

1        (2) upon request of the Chief Procurement Officer, the
2    Department shall promptly produce information related to
3    the procurement activities of the Department and the
4    private manager requested by the Chief Procurement
5    Officer; the Chief Procurement Officer must retain
6    confidential, proprietary, or trade secret information
7    designated by the Department in complete confidence
8    pursuant to subsection (g) of Section 7 of the Freedom of
9    Information Act; and
10        (3) at least 30 days prior to the beginning of the
11    Department's fiscal year, the Department shall prepare an
12    annual written report on the activities of the private
13    manager selected under this Section and deliver that report
14    to the Governor and General Assembly.
15(Source: P.A. 98-463, eff. 8-16-13; 98-649, eff. 6-16-14;
1699-933, eff. 1-27-17.)
 
17    Section 20. The Department of Transportation Law of the
18Civil Administrative Code of Illinois is amended by changing
19Sections 2705-585 and 2705-600 as follows:
 
20    (20 ILCS 2705/2705-585)
21    Sec. 2705-585. Diversity goals.
22    (a) To the extent permitted by any applicable federal law
23or regulation, all State construction projects funded from
24amounts (i) made available under the Governor's Fiscal Year

 

 

SB0262 Engrossed- 21 -LRB100 05183 HLH 15193 b

12009 supplemental budget or the American Recovery and
2Reinvestment Act of 2009 and (ii) that are appropriated to the
3Illinois Department of Transportation shall comply with the
4Business Enterprise for Minorities, Women Females, and Persons
5with Disabilities Act.
6    (b) The Illinois Department of Transportation shall
7appoint representatives to professional and artistic services
8selection committees representative of the State's ethnic,
9cultural, and geographic diversity, including, but not limited
10to, at least one person from each of the following: an
11association representing the interests of African American
12business owners, an association representing the interests of
13Latino business owners, and an association representing the
14interests of women business owners. These committees shall
15comply with all requirements of the Open Meetings Act.
16(Source: P.A. 96-8, eff. 4-28-09.)
 
17    (20 ILCS 2705/2705-600)
18    (Section scheduled to be repealed on June 30, 2017)
19    Sec. 2705-600. Target market program. In order to remedy
20particular incidents and patterns of egregious race or gender
21discrimination, the chief procurement officer, in consultation
22with the Department, shall have the power to implement a target
23market program incorporating the following terms:
24        (0.5) Each fiscal year, the Department shall review any
25    and all evidence of discrimination related to

 

 

SB0262 Engrossed- 22 -LRB100 05183 HLH 15193 b

1    transportation construction projects. Evidence of
2    discrimination may include, but is not limited to: (i) the
3    determination of the Department's utilization of
4    minority-owned and women-owned female-owned firms in its
5    prime contracts and associated subcontracts; (ii) the
6    availability of minority-owned and women-owned
7    female-owned firms in the Department's geographic market
8    areas and specific construction industry markets; (iii)
9    any disparities between the utilization of minority-owned
10    and women-owned female-owned firms in the Department's
11    markets and the utilization of those firms on the
12    Department's prime contracts and subcontracts in those
13    markets; (iv) any disparities between the utilization of
14    minority-owned and women-owned female-owned firms in the
15    overall construction markets in which the Department
16    purchases and the utilization of those firms in the overall
17    construction economy in which the Department operates; (v)
18    evidence of discrimination in the rates at which
19    minority-owned and women-owned female-owned firms in the
20    Department's markets form businesses compared to similar
21    non-minority-owned and non-women-owned non-female-owned
22    firms in the Department's markets and in the dollars earned
23    by such businesses; and (vi) quantitative and qualitative
24    anecdotal evidence of discrimination. If after reviewing
25    such evidence, the Department finds and the chief
26    procurement officer concurs in the findings that the

 

 

SB0262 Engrossed- 23 -LRB100 05183 HLH 15193 b

1    Department has a strong basis in evidence that it has a
2    compelling interest in remedying the identified
3    discrimination against a specific group, race, or gender,
4    and that the only remedy for such discrimination is a
5    narrowly tailored target market, the chief procurement
6    officer, in consultation with the Department, has the power
7    to establish and implement a target market program tailored
8    to address the specific findings of egregious
9    discrimination made by the Department, after a public
10    hearing at which minority, women female, and general
11    contractor groups, community organizations, and other
12    interested parties shall have the opportunity to provide
13    comments.
14        (1) In January of each year, the Department and the
15    chief procurement officer shall report jointly to the
16    General Assembly the results of any evidentiary inquiries
17    or studies that establish the Department's compelling
18    interest in remedying egregious discrimination based upon
19    strong evidence of the need for a narrowly tailored target
20    market to remedy such discrimination and public hearings
21    held pursuant to this Section, and shall report the actions
22    to be taken to address the findings, including, if
23    warranted, the establishment and implementation of any
24    target market initiatives.
25        (2) The chief procurement officer shall work with the
26    officers and divisions of the Department to determine the

 

 

SB0262 Engrossed- 24 -LRB100 05183 HLH 15193 b

1    appropriate designation of contracts as target market
2    contracts. The chief procurement officer, in consultation
3    with the Department, shall determine appropriate contract
4    formation and bidding procedures for target market
5    contracts, including, but not limited to, the dividing of
6    procurements so designated into contract award units in
7    order to facilitate offers or bids from minority-owned
8    businesses and women-owned female-owned businesses and the
9    removal of bid bond requirements for minority-owned
10    businesses and women-owned female-owned businesses.
11    Minority-owned businesses and women-owned female-owned
12    businesses shall remain eligible to seek the procurement
13    award of contracts that have not been designated as target
14    market contracts.
15        (3) The chief procurement officer may make
16    participation in the target market program dependent upon
17    submission to stricter compliance audits than are
18    generally applicable. No contract shall be eligible for
19    inclusion in the target market program unless the
20    Department determines that there are at least 3
21    minority-owned businesses or women-owned female-owned
22    businesses interested in participating in that type of
23    contract. The Department, with the concurrence of the chief
24    procurement officer, may develop guidelines to regulate
25    the level of participation of individual minority-owned
26    businesses and women-owned female-owned businesses in the

 

 

SB0262 Engrossed- 25 -LRB100 05183 HLH 15193 b

1    target market program in order to prevent the domination of
2    the target market program by a small number of those
3    entities. The Department may require minority-owned
4    businesses and women-owned female-owned businesses to
5    participate in training programs offered by the Department
6    or other State agencies as a condition precedent to
7    participation in the target market program.
8        (4) Participation in the target market program shall be
9    limited to minority-owned businesses and women-owned
10    female-owned businesses and joint ventures consisting
11    exclusively of minority-owned businesses, women-owned
12    female-owned businesses, or both, that are certified as
13    disadvantaged businesses pursuant to the provisions of
14    Section 6(d) of the Business Enterprise for Minorities,
15    Women Females, and Persons with Disabilities Act. A firm
16    awarded a target market contract may subcontract up to 50%
17    of the dollar value of the target market contract to
18    subcontractors who are not minority-owned businesses or
19    women-owned female-owned businesses.
20        (5) The Department may include in the target market
21    program contracts that are funded by the federal government
22    to the extent allowed by federal law and may vary the
23    standards of eligibility of the target market program to
24    the extent necessary to comply with the federal funding
25    requirements.
26        (6) If no satisfactory bid or response is received with

 

 

SB0262 Engrossed- 26 -LRB100 05183 HLH 15193 b

1    respect to a contract that has been designated as part of
2    the target market program, the chief procurement officer,
3    in consultation with the Department, may delete that
4    contract from the target market program. In addition, the
5    chief procurement officer, in consultation with the
6    Department, may thereupon designate and set aside for the
7    target market program additional contracts corresponding
8    in approximate value to the contract that was deleted from
9    the target market program, in keeping with the narrowly
10    tailored process used for selecting contracts suitable for
11    the program and to the extent feasible.
12        (7) The chief procurement officer, in consultation
13    with the Department, shall promulgate such rules as he or
14    she deems necessary to administer the target market
15    program.
16    If any part, sentence, or clause of this Section is for any
17reason held invalid or to be unconstitutional, such decision
18shall not affect the validity of the remaining portions of this
19Section.
20    This Section is repealed on June 30, 2017.
21(Source: P.A. 97-228, eff. 7-28-11; 98-670, eff. 6-27-14.)
 
22    Section 25. The Capital Development Board Act is amended by
23changing Section 16 as follows:
 
24    (20 ILCS 3105/16)  (from Ch. 127, par. 783b)

 

 

SB0262 Engrossed- 27 -LRB100 05183 HLH 15193 b

1    Sec. 16. (a) In addition to any other power granted in this
2Act to adopt rules or regulations, the Board may adopt
3regulations or rules relating to the issuance or renewal of the
4prequalification of an architect, engineer or contractor or the
5suspension or modification of the prequalification of any such
6person or entity including, without limitation, an interim or
7emergency suspension or modification without a hearing founded
8on any one or more of the bases set forth in this Section.
9    (b) Among the bases for an interim or emergency suspension
10or modification of prequalification are:
11        (1) A finding by the Board that the public interest,
12    safety or welfare requires a summary suspension or
13    modification of a prequalification without hearings.
14        (2) The occurrence of an event or series of events
15    which, in the Board's opinion, warrants a summary
16    suspension or modification of a prequalification without a
17    hearing including, without limitation, (i) the indictment
18    of the holder of the prequalification by a State or federal
19    agency or other branch of government for a crime; (ii) the
20    suspension or modification of a license or
21    prequalification by another State agency or federal agency
22    or other branch of government after hearings; (iii) a
23    material breach of a contract made between the Board and an
24    architect, engineer or contractor; and (iv) the failure to
25    comply with State law including, without limitation, the
26    Business Enterprise for Minorities, Women Females, and

 

 

SB0262 Engrossed- 28 -LRB100 05183 HLH 15193 b

1    Persons with Disabilities Act, the prevailing wage
2    requirements, and the Steel Products Procurement Act.
3    (c) If a prequalification is suspended or modified by the
4Board without hearings for any reason set forth in this Section
5or in Section 10-65 of the Illinois Administrative Procedure
6Act, as amended, the Board shall within 30 days of the issuance
7of an order of suspension or modification of a prequalification
8initiate proceedings for the suspension or modification of or
9other action upon the prequalification.
10(Source: P.A. 92-16, eff. 6-28-01.)
 
11    Section 30. The Illinois Health Information Exchange and
12Technology Act is amended by changing Section 20 as follows:
 
13    (20 ILCS 3860/20)
14    (Section scheduled to be repealed on January 1, 2021)
15    Sec. 20. Powers and duties of the Illinois Health
16Information Exchange Authority. The Authority has the
17following powers, together with all powers incidental or
18necessary to accomplish the purposes of this Act:
19        (1) The Authority shall create and administer the ILHIE
20    using information systems and processes that are secure,
21    are cost effective, and meet all other relevant privacy and
22    security requirements under State and federal law.
23        (2) The Authority shall establish and adopt standards
24    and requirements for the use of health information and the

 

 

SB0262 Engrossed- 29 -LRB100 05183 HLH 15193 b

1    requirements for participation in the ILHIE by persons or
2    entities including, but not limited to, health care
3    providers, payors, and local health information exchanges.
4        (3) The Authority shall establish minimum standards
5    for accessing the ILHIE to ensure that the appropriate
6    security and privacy protections apply to health
7    information, consistent with applicable federal and State
8    standards and laws. The Authority shall have the power to
9    suspend, limit, or terminate the right to participate in
10    the ILHIE for non-compliance or failure to act, with
11    respect to applicable standards and laws, in the best
12    interests of patients, users of the ILHIE, or the public.
13    The Authority may seek all remedies allowed by law to
14    address any violation of the terms of participation in the
15    ILHIE.
16        (4) The Authority shall identify barriers to the
17    adoption of electronic health records systems, including
18    researching the rates and patterns of dissemination and use
19    of electronic health record systems throughout the State.
20    The Authority shall make the results of the research
21    available on its website.
22        (5) The Authority shall prepare educational materials
23    and educate the general public on the benefits of
24    electronic health records, the ILHIE, and the safeguards
25    available to prevent unauthorized disclosure of health
26    information.

 

 

SB0262 Engrossed- 30 -LRB100 05183 HLH 15193 b

1        (6) The Authority may appoint or designate an
2    institutional review board in accordance with federal and
3    State law to review and approve requests for research in
4    order to ensure compliance with standards and patient
5    privacy and security protections as specified in paragraph
6    (3) of this Section.
7        (7) The Authority may enter into all contracts and
8    agreements necessary or incidental to the performance of
9    its powers under this Act. The Authority's expenditures of
10    private funds are exempt from the Illinois Procurement
11    Code, pursuant to Section 1-10 of that Act. Notwithstanding
12    this exception, the Authority shall comply with the
13    Business Enterprise for Minorities, Women Females, and
14    Persons with Disabilities Act.
15        (8) The Authority may solicit and accept grants, loans,
16    contributions, or appropriations from any public or
17    private source and may expend those moneys, through
18    contracts, grants, loans, or agreements, on activities it
19    considers suitable to the performance of its duties under
20    this Act.
21        (9) The Authority may determine, charge, and collect
22    any fees, charges, costs, and expenses from any healthcare
23    provider or entity in connection with its duties under this
24    Act. Moneys collected under this paragraph (9) shall be
25    deposited into the Health Information Exchange Fund.
26        (10) The Authority may, under the direction of the

 

 

SB0262 Engrossed- 31 -LRB100 05183 HLH 15193 b

1    Executive Director, employ and discharge staff, including
2    administrative, technical, expert, professional, and legal
3    staff, as is necessary or convenient to carry out the
4    purposes of this Act. The Authority may establish and
5    administer standards of classification regarding
6    compensation, benefits, duties, performance, and tenure
7    for that staff and may enter into contracts of employment
8    with members of that staff for such periods and on such
9    terms as the Authority deems desirable. All employees of
10    the Authority are exempt from the Personnel Code as
11    provided by Section 4 of the Personnel Code.
12        (11) The Authority shall consult and coordinate with
13    the Department of Public Health to further the Authority's
14    collection of health information from health care
15    providers for public health purposes. The collection of
16    public health information shall include identifiable
17    information for use by the Authority or other State
18    agencies to comply with State and federal laws. Any
19    identifiable information so collected shall be privileged
20    and confidential in accordance with Sections 8-2101,
21    8-2102, 8-2103, 8-2104, and 8-2105 of the Code of Civil
22    Procedure.
23        (12) All identified or deidentified health information
24    in the form of health data or medical records contained in,
25    stored in, submitted to, transferred by, or released from
26    the Illinois Health Information Exchange, and identified

 

 

SB0262 Engrossed- 32 -LRB100 05183 HLH 15193 b

1    or deidentified health information in the form of health
2    data and medical records of the Illinois Health Information
3    Exchange in the possession of the Illinois Health
4    Information Exchange Authority due to its administration
5    of the Illinois Health Information Exchange, shall be
6    exempt from inspection and copying under the Freedom of
7    Information Act. The terms "identified" and "deidentified"
8    shall be given the same meaning as in the Health Insurance
9    Portability and Accountability Act of 1996, Public Law
10    104-191, or any subsequent amendments thereto, and any
11    regulations promulgated thereunder.
12        (13) To address gaps in the adoption of, workforce
13    preparation for, and exchange of electronic health records
14    that result in regional and socioeconomic disparities in
15    the delivery of care, the Authority may evaluate such gaps
16    and provide resources as available, giving priority to
17    healthcare providers serving a significant percentage of
18    Medicaid or uninsured patients and in medically
19    underserved or rural areas.
20(Source: P.A. 99-642, eff. 7-28-16.)
 
21    Section 35. The Illinois Global Partnership Act is amended
22by changing Section 20 as follows:
 
23    (20 ILCS 3948/20)
24    Sec. 20. Board of directors. IGP shall be governed by a

 

 

SB0262 Engrossed- 33 -LRB100 05183 HLH 15193 b

1board of directors. The IGP board of directors shall consist of
214 members. Five of the members shall be voting members
3appointed by the Governor with the advice and consent of the
4Senate. The Speaker and Minority Leader of the House of
5Representatives, the President and Minority Leader of the
6Senate, the Lieutenant Governor, the Director of Agriculture,
7the Director of Commerce and Economic Opportunity, the
8Chairperson of the Illinois Arts Council, and the Director of
9the Illinois Finance Authority, or the designee of each, shall
10be non-voting ex officio members.
11    Of the members appointed by the Governor, one member must
12have a background in agriculture, one member must have a
13background in manufacturing, and one member must have a
14background in international business relations.
15    Of the initial members appointed by the Governor, 3 members
16shall serve 4-year terms and 2 members shall serve 2-year terms
17as designated by the Governor. Thereafter, members appointed by
18the Governor shall serve 4-year terms. A vacancy among members
19appointed by the Governor shall be filled by appointment by the
20Governor for the remainder of the vacated term.
21    Members of the board shall receive no compensation but
22shall be reimbursed for expenses incurred in the performance of
23their duties.
24    The Governor shall designate the chairman of the board
25until a successor is designated. The board shall meet at the
26call of the chair.

 

 

SB0262 Engrossed- 34 -LRB100 05183 HLH 15193 b

1    No less than 90 days after a majority of the members of the
2board of directors of the IGP is appointed by the Governor, the
3board shall develop a policy adopted by resolution of the board
4stating the board's plan for the use of services provided by
5businesses owned by minorities, women females, and persons with
6disabilities, as defined under the Business Enterprise for
7Minorities, Women Females, and Persons with Disabilities Act.
8The board shall provide a copy of this resolution to the
9Governor and the General Assembly upon its adoption.
10    On December 31 of each year, the board shall report to the
11General Assembly and the Governor regarding the use of services
12provided by businesses owned by minorities, women females, and
13persons with disabilities, as defined under the Business
14Enterprise for Minorities, Women Females, and Persons with
15Disabilities Act.
16(Source: P.A. 94-388, eff. 7-29-05.)
 
17    Section 40. The State Finance Act is amended by changing
18Sections 8.32 and 45 as follows:
 
19    (30 ILCS 105/8.32)  (from Ch. 127, par. 144.32)
20    Sec. 8.32. All moneys received by the Minority and Women
21Female Business Enterprise Council, or by the Department of
22Central Management Services on behalf of the Council or the
23Department's Minority and Female Business Enterprise for
24Minorities, Women, and Persons with Disabilities Division,

 

 

SB0262 Engrossed- 35 -LRB100 05183 HLH 15193 b

1from grants, donations, seminar registration fees, and the sale
2of directories, lists and other such information, shall be
3deposited into the Minority and Female Business Enterprise Fund
4in the State treasury. Expenses of the Council or the
5Department's Minority and Female Business Enterprise for
6Minorities, Women, and Persons with Disabilities Division may
7be paid from this Fund.
8(Source: P.A. 86-1482.)
 
9    (30 ILCS 105/45)
10    Sec. 45. Award of capital funds. Each award by grant or
11loan of State funds of $250,000 or more for capital
12construction costs or professional services is conditioned
13upon the recipient's written certification that the recipient
14shall comply with the business enterprise program practices for
15minority-owned businesses, women-owned female-owned
16businesses, and businesses owned by persons with disabilities
17of the Business Enterprise for Minorities, Women Females, and
18Persons with Disabilities Act (30 ILCS 575/) and the equal
19employment practices of Section 2-105 of the Illinois Human
20Rights Act (775 ILCS 5/2-105). This Section, however, does not
21apply to any grant or loan (i) for which a grant or loan
22agreement was executed before the effective date of this
23amendatory Act of the 96th General Assembly, (ii) for which
24prior-incurred costs are being reimbursed, or (iii) for a
25federally funded program under which the requirement of this

 

 

SB0262 Engrossed- 36 -LRB100 05183 HLH 15193 b

1Section would contravene federal law. Each recipient shall
2submit the written certification and business enterprise
3program plan for minority-owned businesses, women-owned
4female-owned businesses, and businesses owned by persons with
5disabilities before signing the relevant grant or loan
6agreement. Each grant or loan agreement shall include a
7provision that the grant or loan recipient agrees to comply
8with the provisions of the Business Enterprise for Minorities,
9Women Females, and Persons with Disabilities Act (30 ILCS 575/)
10and the equal employment practices of Section 2-105 of the
11Illinois Human Rights Act (775 ILCS 5/2-105).
12    Each business enterprise program plan shall apply only to
13the State-funded portion of the relevant capital project and
14must be in compliance with all certification and other
15requirements of the Business Enterprise for Minorities, Women
16Females, and Persons with Disabilities Act.
17(Source: P.A. 96-1064, eff. 7-16-10.)
 
18    Section 45. The General Obligation Bond Act is amended by
19changing Sections 8 and 15.5 as follows:
 
20    (30 ILCS 330/8)  (from Ch. 127, par. 658)
21    Sec. 8. Bond sale expenses.
22    (a) An amount not to exceed 0.5 percent of the principal
23amount of the proceeds of sale of each bond sale is authorized
24to be used to pay the reasonable costs of issuance and sale,

 

 

SB0262 Engrossed- 37 -LRB100 05183 HLH 15193 b

1including, without limitation, underwriter's discounts and
2fees, but excluding bond insurance, of State of Illinois
3general obligation bonds authorized and sold pursuant to this
4Act, provided that no salaries of State employees or other
5State office operating expenses shall be paid out of
6non-appropriated proceeds, provided further that the percent
7shall be 1.0% for each sale of "Build America Bonds" or
8"Qualified School Construction Bonds" as defined in
9subsections (d) and (e) of Section 9, respectively. The
10Governor's Office of Management and Budget shall compile a
11summary of all costs of issuance on each sale (including both
12costs paid out of proceeds and those paid out of appropriated
13funds) and post that summary on its web site within 20 business
14days after the issuance of the Bonds. The summary shall
15include, as applicable, the respective percentages of
16participation and compensation of each underwriter that is a
17member of the underwriting syndicate, legal counsel, financial
18advisors, and other professionals for the bond issue and an
19identification of all costs of issuance paid to minority-owned
20minority owned businesses, women-owned female owned
21businesses, and businesses owned by persons with disabilities.
22The terms "minority-owned minority owned businesses",
23"women-owned female owned businesses", and "business owned by a
24person with a disability" have the meanings given to those
25terms in the Business Enterprise for Minorities, Women Females,
26and Persons with Disabilities Act. That posting shall be

 

 

SB0262 Engrossed- 38 -LRB100 05183 HLH 15193 b

1maintained on the web site for a period of at least 30 days. In
2addition, the Governor's Office of Management and Budget shall
3provide a written copy of each summary of costs to the Speaker
4and Minority Leader of the House of Representatives, the
5President and Minority Leader of the Senate, and the Commission
6on Government Forecasting and Accountability within 20
7business days after each issuance of the Bonds. In addition,
8the Governor's Office of Management and Budget shall provide
9copies of all contracts under which any costs of issuance are
10paid or to be paid to the Commission on Government Forecasting
11and Accountability within 20 business days after the issuance
12of Bonds for which those costs are paid or to be paid. Instead
13of filing a second or subsequent copy of the same contract, the
14Governor's Office of Management and Budget may file a statement
15that specified costs are paid under specified contracts filed
16earlier with the Commission.
17    (b) The Director of the Governor's Office of Management and
18Budget shall not, in connection with the issuance of Bonds,
19contract with any underwriter, financial advisor, or attorney
20unless that underwriter, financial advisor, or attorney
21certifies that the underwriter, financial advisor, or attorney
22has not and will not pay a contingent fee, whether directly or
23indirectly, to a third party for having promoted the selection
24of the underwriter, financial advisor, or attorney for that
25contract. In the event that the Governor's Office of Management
26and Budget determines that an underwriter, financial advisor,

 

 

SB0262 Engrossed- 39 -LRB100 05183 HLH 15193 b

1or attorney has filed a false certification with respect to the
2payment of contingent fees, the Governor's Office of Management
3and Budget shall not contract with that underwriter, financial
4advisor, or attorney, or with any firm employing any person who
5signed false certifications, for a period of 2 calendar years,
6beginning with the date the determination is made. The validity
7of Bonds issued under such circumstances of violation pursuant
8to this Section shall not be affected.
9(Source: P.A. 96-828, eff. 12-2-09.)
 
10    (30 ILCS 330/15.5)
11    Sec. 15.5. Compliance with the Business Enterprise for
12Minorities, Women Females, and Persons with Disabilities Act.
13Notwithstanding any other provision of law, the Governor's
14Office of Management and Budget shall comply with the Business
15Enterprise for Minorities, Women Females, and Persons with
16Disabilities Act.
17(Source: P.A. 93-839, eff. 7-30-04.)
 
18    Section 50. The Build Illinois Bond Act is amended by
19changing Sections 5 and 8.3 as follows:
 
20    (30 ILCS 425/5)  (from Ch. 127, par. 2805)
21    Sec. 5. Bond Sale Expenses.
22    (a) An amount not to exceed 0.5% of the principal amount of
23the proceeds of the sale of each bond sale is authorized to be

 

 

SB0262 Engrossed- 40 -LRB100 05183 HLH 15193 b

1used to pay reasonable costs of each issuance and sale of Bonds
2authorized and sold pursuant to this Act, including, without
3limitation, underwriter's discounts and fees, but excluding
4bond insurance, advertising, printing, bond rating, travel of
5outside vendors, security, delivery, legal and financial
6advisory services, initial fees of trustees, registrars,
7paying agents and other fiduciaries, initial costs of credit or
8liquidity enhancement arrangements, initial fees of indexing
9and remarketing agents, and initial costs of interest rate
10swaps, guarantees or arrangements to limit interest rate risk,
11as determined in the related Bond Sale Order, from the proceeds
12of each Bond sale, provided that no salaries of State employees
13or other State office operating expenses shall be paid out of
14non-appropriated proceeds, and provided further that the
15percent shall be 1.0% for each sale of "Build America Bonds" as
16defined in subsection (c) of Section 6. The Governor's Office
17of Management and Budget shall compile a summary of all costs
18of issuance on each sale (including both costs paid out of
19proceeds and those paid out of appropriated funds) and post
20that summary on its web site within 20 business days after the
21issuance of the bonds. That posting shall be maintained on the
22web site for a period of at least 30 days. In addition, the
23Governor's Office of Management and Budget shall provide a
24written copy of each summary of costs to the Speaker and
25Minority Leader of the House of Representatives, the President
26and Minority Leader of the Senate, and the Commission on

 

 

SB0262 Engrossed- 41 -LRB100 05183 HLH 15193 b

1Government Forecasting and Accountability within 20 business
2days after each issuance of the bonds. This summary shall
3include, as applicable, the respective percentage of
4participation and compensation of each underwriter that is a
5member of the underwriting syndicate, legal counsel, financial
6advisors, and other professionals for the Bond issue, and an
7identification of all costs of issuance paid to minority-owned
8minority owned businesses, women-owned female owned
9businesses, and businesses owned by persons with disabilities.
10The terms "minority-owned minority owned businesses",
11"women-owned female owned businesses", and "business owned by a
12person with a disability" have the meanings given to those
13terms in the Business Enterprise for Minorities, Women Females,
14and Persons with Disabilities Act. In addition, the Governor's
15Office of Management and Budget shall provide copies of all
16contracts under which any costs of issuance are paid or to be
17paid to the Commission on Government Forecasting and
18Accountability within 20 business days after the issuance of
19Bonds for which those costs are paid or to be paid. Instead of
20filing a second or subsequent copy of the same contract, the
21Governor's Office of Management and Budget may file a statement
22that specified costs are paid under specified contracts filed
23earlier with the Commission.
24    (b) The Director of the Governor's Office of Management and
25Budget shall not, in connection with the issuance of Bonds,
26contract with any underwriter, financial advisor, or attorney

 

 

SB0262 Engrossed- 42 -LRB100 05183 HLH 15193 b

1unless that underwriter, financial advisor, or attorney
2certifies that the underwriter, financial advisor, or attorney
3has not and will not pay a contingent fee, whether directly or
4indirectly, to any third party for having promoted the
5selection of the underwriter, financial advisor, or attorney
6for that contract. In the event that the Governor's Office of
7Management and Budget determines that an underwriter,
8financial advisor, or attorney has filed a false certification
9with respect to the payment of contingent fees, the Governor's
10Office of Management and Budget shall not contract with that
11underwriter, financial advisor, or attorney, or with any firm
12employing any person who signed false certifications, for a
13period of 2 calendar years, beginning with the date the
14determination is made. The validity of Bonds issued under such
15circumstances of violation pursuant to this Section shall not
16be affected.
17(Source: P.A. 96-828, eff. 12-2-09.)
 
18    (30 ILCS 425/8.3)
19    Sec. 8.3. Compliance with the Business Enterprise for
20Minorities, Women Females, and Persons with Disabilities Act.
21Notwithstanding any other provision of law, the Governor's
22Office of Management and Budget shall comply with the Business
23Enterprise for Minorities, Women Females, and Persons with
24Disabilities Act.
25(Source: P.A. 93-839, eff. 7-30-04.)
 

 

 

SB0262 Engrossed- 43 -LRB100 05183 HLH 15193 b

1    Section 55. The Illinois Procurement Code is amended by
2changing Sections 15-25, 30-30, 45-45, 45-57, and 45-65 as
3follows:
 
4    (30 ILCS 500/15-25)
5    Sec. 15-25. Bulletin content.
6    (a) Invitations for bids. Notice of each and every contract
7that is offered, including renegotiated contracts and change
8orders, shall be published in the Bulletin. All businesses
9listed on the Department of Transportation Disadvantaged
10Business Enterprise Directory, the Department of Central
11Management Services Business Enterprise Program, and the Chief
12Procurement Office's Small Business Vendors Directory shall be
13furnished written instructions and information on how to
14register on each Procurement Bulletin maintained by the State.
15Such information shall be provided to each business within 30
16calendar days after the business' notice of certification. The
17applicable chief procurement officer may provide by rule an
18organized format for the publication of this information, but
19in any case it must include at least the date first offered,
20the date submission of offers is due, the location that offers
21are to be submitted to, the purchasing State agency, the
22responsible State purchasing officer, a brief purchase
23description, the method of source selection, information of how
24to obtain a comprehensive purchase description and any

 

 

SB0262 Engrossed- 44 -LRB100 05183 HLH 15193 b

1disclosure and contract forms, and encouragement to potential
2contractors to hire qualified veterans, as defined by Section
345-67 of this Code, and qualified Illinois minorities, women,
4persons with disabilities, and residents discharged from any
5Illinois adult correctional center.
6    (b) Contracts let. Notice of each and every contract that
7is let, including renegotiated contracts and change orders,
8shall be issued electronically to those bidders submitting
9responses to the solicitations, inclusive of the unsuccessful
10bidders, immediately upon contract let. Failure of any chief
11procurement officer to give such notice shall result in tolling
12the time for filing a bid protest up to 7 calendar days.
13    For purposes of this subsection (b), "contracts let" means
14a construction agency's act of advertising an invitation for
15bids for one or more construction projects.
16    (b-5) Contracts awarded. Notice of each and every contract
17that is awarded, including renegotiated contracts and change
18orders, shall be issued electronically to the successful
19responsible bidder, offeror, or contractor and published in the
20next available subsequent Bulletin. The applicable chief
21procurement officer may provide by rule an organized format for
22the publication of this information, but in any case it must
23include at least all of the information specified in subsection
24(a) as well as the name of the successful responsible bidder,
25offeror, the contract price, the number of unsuccessful bidders
26or offerors and any other disclosure specified in any Section

 

 

SB0262 Engrossed- 45 -LRB100 05183 HLH 15193 b

1of this Code. This notice must be posted in the online
2electronic Bulletin prior to execution of the contract.
3    For purposes of this subsection (b-5), "contract award"
4means the determination that a particular bidder or offeror has
5been selected from among other bidders or offerors to receive a
6contract, subject to the successful completion of final
7negotiations. "Contract award" is evidenced by the posting of a
8Notice of Award or a Notice of Intent to Award to the
9respective volume of the Illinois Procurement Bulletin.
10    (c) Emergency purchase disclosure. Any chief procurement
11officer or State purchasing officer exercising emergency
12purchase authority under this Code shall publish a written
13description and reasons and the total cost, if known, or an
14estimate if unknown and the name of the responsible chief
15procurement officer and State purchasing officer, and the
16business or person contracted with for all emergency purchases
17in the next timely, practicable Bulletin. This notice must be
18posted in the online electronic Bulletin no later than 5
19calendar days after the contract is awarded. Notice of a
20hearing to extend an emergency contract must be posted in the
21online electronic Procurement Bulletin no later than 14
22calendar days prior to the hearing.
23    (c-5) Business Enterprise Program report. Each purchasing
24agency shall, with the assistance of the applicable chief
25procurement officer, post in the online electronic Bulletin a
26copy of its annual report of utilization of businesses owned by

 

 

SB0262 Engrossed- 46 -LRB100 05183 HLH 15193 b

1minorities, women females, and persons with disabilities as
2submitted to the Business Enterprise Council for Minorities,
3Women Females, and Persons with Disabilities pursuant to
4Section 6(c) of the Business Enterprise for Minorities, Women
5Females, and Persons with Disabilities Act within 10 calendar
6days after its submission of its report to the Council.
7    (c-10) Renewals. Notice of each contract renewal shall be
8posted in the online electronic Bulletin within 14 calendar
9days of the determination to renew the contract and the next
10available subsequent Bulletin. The notice shall include at
11least all of the information required in subsection (b).
12    (c-15) Sole source procurements. Before entering into a
13sole source contract, a chief procurement officer exercising
14sole source procurement authority under this Code shall publish
15a written description of intent to enter into a sole source
16contract along with a description of the item to be procured
17and the intended sole source contractor. This notice must be
18posted in the online electronic Procurement Bulletin before a
19sole source contract is awarded and at least 14 calendar days
20before the hearing required by Section 20-25.
21    (d) Other required disclosure. The applicable chief
22procurement officer shall provide by rule for the organized
23publication of all other disclosure required in other Sections
24of this Code in a timely manner.
25    (e) The changes to subsections (b), (c), (c-5), (c-10), and
26(c-15) of this Section made by this amendatory Act of the 96th

 

 

SB0262 Engrossed- 47 -LRB100 05183 HLH 15193 b

1General Assembly apply to reports submitted, offers made, and
2notices on contracts executed on or after its effective date.
3    (f) Each chief procurement officer shall, in consultation
4with the agencies under his or her jurisdiction, provide the
5Procurement Policy Board with the information and resources
6necessary, and in a manner, to effectuate the purpose of this
7amendatory Act of the 96th General Assembly.
8(Source: P.A. 97-895, eff. 8-3-12; 98-1038, eff. 8-25-14;
998-1076, eff. 1-1-15.)
 
10    (30 ILCS 500/30-30)
11    Sec. 30-30. Design-bid-build construction.
12    (a) The provisions of this subsection are operative through
13December 31, 2019.
14    For building construction contracts in excess of $250,000,
15separate specifications may be prepared for all equipment,
16labor, and materials in connection with the following 5
17subdivisions of the work to be performed:
18        (1) plumbing;
19        (2) heating, piping, refrigeration, and automatic
20    temperature control systems, including the testing and
21    balancing of those systems;
22        (3) ventilating and distribution systems for
23    conditioned air, including the testing and balancing of
24    those systems;
25        (4) electric wiring; and

 

 

SB0262 Engrossed- 48 -LRB100 05183 HLH 15193 b

1        (5) general contract work.
2    The specifications may be so drawn as to permit separate
3and independent bidding upon each of the 5 subdivisions of
4work. All contracts awarded for any part thereof may award the
55 subdivisions of work separately to responsible and reliable
6persons, firms, or corporations engaged in these classes of
7work. The contracts, at the discretion of the construction
8agency, may be assigned to the successful bidder on the general
9contract work or to the successful bidder on the subdivision of
10work designated by the construction agency before the bidding
11as the prime subdivision of work, provided that all payments
12will be made directly to the contractors for the 5 subdivisions
13of work upon compliance with the conditions of the contract.
14    Beginning on the effective date of this amendatory Act of
15the 99th General Assembly and through December 31, 2019, for
16single prime projects: (i) the bid of the successful low bidder
17shall identify the name of the subcontractor, if any, and the
18bid proposal costs for each of the 5 subdivisions of work set
19forth in this Section; (ii) the contract entered into with the
20successful bidder shall provide that no identified
21subcontractor may be terminated without the written consent of
22the Capital Development Board; (iii) the contract shall comply
23with the disadvantaged business practices of the Business
24Enterprise for Minorities, Women Females, and Persons with
25Disabilities Act and the equal employment practices of Section
262-105 of the Illinois Human Rights Act; (iv) the Capital

 

 

SB0262 Engrossed- 49 -LRB100 05183 HLH 15193 b

1Development Board shall submit a quarterly report to the
2Procurement Policy Board with information on the general scope,
3project budget, and established Business Enterprise Program
4goals for any single prime procurement bid in the previous 3
5months with a total construction cost valued at $10,000,000 or
6less; and (v) the Capital Development Board shall submit an
7annual report to the General Assembly and Governor on the
8bidding, award, and performance of all single prime projects.
9    For building construction projects with a total
10construction cost valued at $5,000,000 or less, the Capital
11Development Board shall not use the single prime procurement
12delivery method for more than 50% of the total number of
13projects bid for each fiscal year. Any project with a total
14construction cost valued greater than $5,000,000 may be bid
15using single prime at the discretion of the Executive Director
16of the Capital Development Board.
17    Beginning on the effective date of this amendatory Act of
18the 99th General Assembly and through December 31, 2017, the
19Capital Development Board shall, on a weekly basis: review the
20projects that have been designed, and approved to bid; and, for
21every fifth determination to use the single prime procurement
22delivery method for a project under $10,000,000, submit to the
23Procurement Policy Board a written notice of its intent to use
24the single prime method on the project. The notice shall
25include the reasons for using the single prime method and an
26explanation of why the use of that method is in the best

 

 

SB0262 Engrossed- 50 -LRB100 05183 HLH 15193 b

1interest of the State. The Capital Development Board shall post
2the notice on its online procurement webpage and on the online
3Procurement Bulletin at least 3 business days following
4submission. The Procurement Policy Board shall review and
5provide its decision on the use of the single prime method for
6every fifth use of the single prime procurement delivery method
7for a project under $10,000,000 within 7 business days of
8receipt of the notice from the Capital Development Board.
9Approval by the Procurement Policy Board shall not be
10unreasonably withheld and shall be provided unless the
11Procurement Policy Board finds that the use of the single prime
12method is not in the best interest of the State. Any decision
13by the Procurement Policy Board to disapprove the use of the
14single prime method shall be made in writing to the Capital
15Development Board, posted on the online Procurement Bulletin,
16and shall state the reasons why the single prime method was
17disapproved and why it is not in the best interest of the
18State.
19    (b) The provisions of this subsection are operative on and
20after January 1, 2020. For building construction contracts in
21excess of $250,000, separate specifications shall be prepared
22for all equipment, labor, and materials in connection with the
23following 5 subdivisions of the work to be performed:
24        (1) plumbing;
25        (2) heating, piping, refrigeration, and automatic
26    temperature control systems, including the testing and

 

 

SB0262 Engrossed- 51 -LRB100 05183 HLH 15193 b

1    balancing of those systems;
2        (3) ventilating and distribution systems for
3    conditioned air, including the testing and balancing of
4    those systems;
5        (4) electric wiring; and
6        (5) general contract work.
7    The specifications must be so drawn as to permit separate
8and independent bidding upon each of the 5 subdivisions of
9work. All contracts awarded for any part thereof shall award
10the 5 subdivisions of work separately to responsible and
11reliable persons, firms, or corporations engaged in these
12classes of work. The contracts, at the discretion of the
13construction agency, may be assigned to the successful bidder
14on the general contract work or to the successful bidder on the
15subdivision of work designated by the construction agency
16before the bidding as the prime subdivision of work, provided
17that all payments will be made directly to the contractors for
18the 5 subdivisions of work upon compliance with the conditions
19of the contract.
20(Source: P.A. 98-431, eff. 8-16-13; 98-1076, eff. 1-1-15;
2199-257, eff. 8-4-15.)
 
22    (30 ILCS 500/45-45)
23    Sec. 45-45. Small businesses.
24    (a) Set-asides. Each chief procurement officer has
25authority to designate as small business set-asides a fair

 

 

SB0262 Engrossed- 52 -LRB100 05183 HLH 15193 b

1proportion of construction, supply, and service contracts for
2award to small businesses in Illinois. Advertisements for bids
3or offers for those contracts shall specify designation as
4small business set-asides. In awarding the contracts, only bids
5or offers from qualified small businesses shall be considered.
6    (b) Small business. "Small business" means a business that
7is independently owned and operated and that is not dominant in
8its field of operation. The chief procurement officer shall
9establish a detailed definition by rule, using in addition to
10the foregoing criteria other criteria, including the number of
11employees and the dollar volume of business. When computing the
12size status of a potential contractor, annual sales and
13receipts of the potential contractor and all of its affiliates
14shall be included. The maximum number of employees and the
15maximum dollar volume that a small business may have under the
16rules promulgated by the chief procurement officer may vary
17from industry to industry to the extent necessary to reflect
18differing characteristics of those industries, subject to the
19following limitations:
20        (1) No wholesale business is a small business if its
21    annual sales for its most recently completed fiscal year
22    exceed $13,000,000.
23        (2) No retail business or business selling services is
24    a small business if its annual sales and receipts exceed
25    $8,000,000.
26        (3) No manufacturing business is a small business if it

 

 

SB0262 Engrossed- 53 -LRB100 05183 HLH 15193 b

1    employs more than 250 persons.
2        (4) No construction business is a small business if its
3    annual sales and receipts exceed $14,000,000.
4    (c) Fair proportion. For the purpose of subsection (a), for
5State agencies of the executive branch, a fair proportion of
6construction contracts shall be no less than 25% nor more than
740% of the annual total contracts for construction.
8    (d) Withdrawal of designation. A small business set-aside
9designation may be withdrawn by the purchasing agency when
10deemed in the best interests of the State. Upon withdrawal, all
11bids or offers shall be rejected, and the bidders or offerors
12shall be notified of the reason for rejection. The contract
13shall then be awarded in accordance with this Code without the
14designation of small business set-aside.
15    (e) Small business specialist. The chief procurement
16officer shall designate a State purchasing officer who will be
17responsible for engaging an experienced contract negotiator to
18serve as its small business specialist, whose duties shall
19include:
20        (1) Compiling and maintaining a comprehensive list of
21    potential small contractors. In this duty, he or she shall
22    cooperate with the Federal Small Business Administration
23    in locating potential sources for various products and
24    services.
25        (2) Assisting small businesses in complying with the
26    procedures for bidding on State contracts.

 

 

SB0262 Engrossed- 54 -LRB100 05183 HLH 15193 b

1        (3) Examining requests from State agencies for the
2    purchase of property or services to help determine which
3    invitations to bid are to be designated small business
4    set-asides.
5        (4) Making recommendations to the chief procurement
6    officer for the simplification of specifications and terms
7    in order to increase the opportunities for small business
8    participation.
9        (5) Assisting in investigations by purchasing agencies
10    to determine the responsibility of bidders or offerors on
11    small business set-asides.
12    (f) Small business annual report. The State purchasing
13officer designated under subsection (e) shall annually before
14December 1 report in writing to the General Assembly concerning
15the awarding of contracts to small businesses. The report shall
16include the total value of awards made in the preceding fiscal
17year under the designation of small business set-aside. The
18report shall also include the total value of awards made to
19businesses owned by minorities, women females, and persons with
20disabilities, as defined in the Business Enterprise for
21Minorities, Women Females, and Persons with Disabilities Act,
22in the preceding fiscal year under the designation of small
23business set-aside.
24    The requirement for reporting to the General Assembly shall
25be satisfied by filing copies of the report as required by
26Section 3.1 of the General Assembly Organization Act.

 

 

SB0262 Engrossed- 55 -LRB100 05183 HLH 15193 b

1(Source: P.A. 98-1076, eff. 1-1-15.)
 
2    (30 ILCS 500/45-57)
3    Sec. 45-57. Veterans.
4    (a) Set-aside goal. It is the goal of the State to promote
5and encourage the continued economic development of small
6businesses owned and controlled by qualified veterans and that
7qualified service-disabled veteran-owned small businesses
8(referred to as SDVOSB) and veteran-owned small businesses
9(referred to as VOSB) participate in the State's procurement
10process as both prime contractors and subcontractors. Not less
11than 3% of the total dollar amount of State contracts, as
12defined by the Director of Central Management Services, shall
13be established as a goal to be awarded to SDVOSB and VOSB. That
14portion of a contract under which the contractor subcontracts
15with a SDVOSB or VOSB may be counted toward the goal of this
16subsection. The Department of Central Management Services
17shall adopt rules to implement compliance with this subsection
18by all State agencies.
19    (b) Fiscal year reports. By each September 1, each chief
20procurement officer shall report to the Department of Central
21Management Services on all of the following for the immediately
22preceding fiscal year, and by each March 1 the Department of
23Central Management Services shall compile and report that
24information to the General Assembly:
25        (1) The total number of VOSB, and the number of SDVOSB,

 

 

SB0262 Engrossed- 56 -LRB100 05183 HLH 15193 b

1    who submitted bids for contracts under this Code.
2        (2) The total number of VOSB, and the number of SDVOSB,
3    who entered into contracts with the State under this Code
4    and the total value of those contracts.
5    (c) Yearly review and recommendations. Each year, each
6chief procurement officer shall review the progress of all
7State agencies under its jurisdiction in meeting the goal
8described in subsection (a), with input from statewide
9veterans' service organizations and from the business
10community, including businesses owned by qualified veterans,
11and shall make recommendations to be included in the Department
12of Central Management Services' report to the General Assembly
13regarding continuation, increases, or decreases of the
14percentage goal. The recommendations shall be based upon the
15number of businesses that are owned by qualified veterans and
16on the continued need to encourage and promote businesses owned
17by qualified veterans.
18    (d) Governor's recommendations. To assist the State in
19reaching the goal described in subsection (a), the Governor
20shall recommend to the General Assembly changes in programs to
21assist businesses owned by qualified veterans.
22    (e) Definitions. As used in this Section:
23    "Armed forces of the United States" means the United States
24Army, Navy, Air Force, Marine Corps, Coast Guard, or service in
25active duty as defined under 38 U.S.C. Section 101. Service in
26the Merchant Marine that constitutes active duty under Section

 

 

SB0262 Engrossed- 57 -LRB100 05183 HLH 15193 b

1401 of federal Public Act 95-202 shall also be considered
2service in the armed forces for purposes of this Section.
3    "Certification" means a determination made by the Illinois
4Department of Veterans' Affairs and the Department of Central
5Management Services that a business entity is a qualified
6service-disabled veteran-owned small business or a qualified
7veteran-owned small business for whatever purpose. A SDVOSB or
8VOSB owned and controlled by women females, minorities, or
9persons with disabilities, as those terms are defined in
10Section 2 of the Business Enterprise for Minorities, Women
11Females, and Persons with Disabilities Act, may also select and
12designate whether that business is to be certified as a
13"women-owned female-owned business", "minority-owned
14business", or "business owned by a person with a disability",
15as defined in Section 2 of the Business Enterprise for
16Minorities, Women Females, and Persons with Disabilities Act.
17    "Control" means the exclusive, ultimate, majority, or sole
18control of the business, including but not limited to capital
19investment and all other financial matters, property,
20acquisitions, contract negotiations, legal matters,
21officer-director-employee selection and comprehensive hiring,
22operation responsibilities, cost-control matters, income and
23dividend matters, financial transactions, and rights of other
24shareholders or joint partners. Control shall be real,
25substantial, and continuing, not pro forma. Control shall
26include the power to direct or cause the direction of the

 

 

SB0262 Engrossed- 58 -LRB100 05183 HLH 15193 b

1management and policies of the business and to make the
2day-to-day as well as major decisions in matters of policy,
3management, and operations. Control shall be exemplified by
4possessing the requisite knowledge and expertise to run the
5particular business, and control shall not include simple
6majority or absentee ownership.
7    "Qualified service-disabled veteran" means a veteran who
8has been found to have 10% or more service-connected disability
9by the United States Department of Veterans Affairs or the
10United States Department of Defense.
11    "Qualified service-disabled veteran-owned small business"
12or "SDVOSB" means a small business (i) that is at least 51%
13owned by one or more qualified service-disabled veterans living
14in Illinois or, in the case of a corporation, at least 51% of
15the stock of which is owned by one or more qualified
16service-disabled veterans living in Illinois; (ii) that has its
17home office in Illinois; and (iii) for which items (i) and (ii)
18are factually verified annually by the Department of Central
19Management Services.
20    "Qualified veteran-owned small business" or "VOSB" means a
21small business (i) that is at least 51% owned by one or more
22qualified veterans living in Illinois or, in the case of a
23corporation, at least 51% of the stock of which is owned by one
24or more qualified veterans living in Illinois; (ii) that has
25its home office in Illinois; and (iii) for which items (i) and
26(ii) are factually verified annually by the Department of

 

 

SB0262 Engrossed- 59 -LRB100 05183 HLH 15193 b

1Central Management Services.
2    "Service-connected disability" means a disability incurred
3in the line of duty in the active military, naval, or air
4service as described in 38 U.S.C. 101(16).
5    "Small business" means a business that has annual gross
6sales of less than $75,000,000 as evidenced by the federal
7income tax return of the business. A firm with gross sales in
8excess of this cap may apply to the Department of Central
9Management Services for certification for a particular
10contract if the firm can demonstrate that the contract would
11have significant impact on SDVOSB or VOSB as suppliers or
12subcontractors or in employment of veterans or
13service-disabled veterans.
14    "State agency" has the same meaning as in Section 2 of the
15Business Enterprise for Minorities, Women Females, and Persons
16with Disabilities Act.
17    "Time of hostilities with a foreign country" means any
18period of time in the past, present, or future during which a
19declaration of war by the United States Congress has been or is
20in effect or during which an emergency condition has been or is
21in effect that is recognized by the issuance of a Presidential
22proclamation or a Presidential executive order and in which the
23armed forces expeditionary medal or other campaign service
24medals are awarded according to Presidential executive order.
25    "Veteran" means a person who (i) has been a member of the
26armed forces of the United States or, while a citizen of the

 

 

SB0262 Engrossed- 60 -LRB100 05183 HLH 15193 b

1United States, was a member of the armed forces of allies of
2the United States in time of hostilities with a foreign country
3and (ii) has served under one or more of the following
4conditions: (a) the veteran served a total of at least 6
5months; (b) the veteran served for the duration of hostilities
6regardless of the length of the engagement; (c) the veteran was
7discharged on the basis of hardship; or (d) the veteran was
8released from active duty because of a service connected
9disability and was discharged under honorable conditions.
10    (f) Certification program. The Illinois Department of
11Veterans' Affairs and the Department of Central Management
12Services shall work together to devise a certification
13procedure to assure that businesses taking advantage of this
14Section are legitimately classified as qualified
15service-disabled veteran-owned small businesses or qualified
16veteran-owned small businesses.
17    (g) Penalties.
18        (1) Administrative penalties. The chief procurement
19    officers appointed pursuant to Section 10-20 shall suspend
20    any person who commits a violation of Section 17-10.3 or
21    subsection (d) of Section 33E-6 of the Criminal Code of
22    2012 relating to this Section from bidding on, or
23    participating as a contractor, subcontractor, or supplier
24    in, any State contract or project for a period of not less
25    than 3 years, and, if the person is certified as a
26    service-disabled veteran-owned small business or a

 

 

SB0262 Engrossed- 61 -LRB100 05183 HLH 15193 b

1    veteran-owned small business, then the Department shall
2    revoke the business's certification for a period of not
3    less than 3 years. An additional or subsequent violation
4    shall extend the periods of suspension and revocation for a
5    period of not less than 5 years. The suspension and
6    revocation shall apply to the principals of the business
7    and any subsequent business formed or financed by, or
8    affiliated with, those principals.
9        (2) Reports of violations. Each State agency shall
10    report any alleged violation of Section 17-10.3 or
11    subsection (d) of Section 33E-6 of the Criminal Code of
12    2012 relating to this Section to the chief procurement
13    officers appointed pursuant to Section 10-20. The chief
14    procurement officers appointed pursuant to Section 10-20
15    shall subsequently report all such alleged violations to
16    the Attorney General, who shall determine whether to bring
17    a civil action against any person for the violation.
18        (3) List of suspended persons. The chief procurement
19    officers appointed pursuant to Section 10-20 shall monitor
20    the status of all reported violations of Section 17-10.3 or
21    subsection (d) of Section 33E-6 of the Criminal Code of
22    1961 or the Criminal Code of 2012 relating to this Section
23    and shall maintain and make available to all State agencies
24    a central listing of all persons that committed violations
25    resulting in suspension.
26        (4) Use of suspended persons. During the period of a

 

 

SB0262 Engrossed- 62 -LRB100 05183 HLH 15193 b

1    person's suspension under paragraph (1) of this
2    subsection, a State agency shall not enter into any
3    contract with that person or with any contractor using the
4    services of that person as a subcontractor.
5        (5) Duty to check list. Each State agency shall check
6    the central listing provided by the chief procurement
7    officers appointed pursuant to Section 10-20 under
8    paragraph (3) of this subsection to verify that a person
9    being awarded a contract by that State agency, or to be
10    used as a subcontractor or supplier on a contract being
11    awarded by that State agency, is not under suspension
12    pursuant to paragraph (1) of this subsection.
13(Source: P.A. 97-260, eff. 8-5-11; 97-1150, eff. 1-25-13;
1498-307, eff. 8-12-13; 98-1076, eff. 1-1-15.)
 
15    (30 ILCS 500/45-65)
16    Sec. 45-65. Additional preferences. This Code is subject to
17applicable provisions of:
18        (1) the Public Purchases in Other States Act;
19        (2) the Illinois Mined Coal Act;
20        (3) the Steel Products Procurement Act;
21        (4) the Veterans Preference Act;
22        (5) the Business Enterprise for Minorities, Women
23    Females, and Persons with Disabilities Act; and
24        (6) the Procurement of Domestic Products Act.
25(Source: P.A. 93-954, eff. 1-1-05.)
 

 

 

SB0262 Engrossed- 63 -LRB100 05183 HLH 15193 b

1    Section 60. The Design-Build Procurement Act is amended by
2changing Sections 5, 15, 30, and 46 as follows:
 
3    (30 ILCS 537/5)
4    (Section scheduled to be repealed on July 1, 2019)
5    Sec. 5. Legislative policy. It is the intent of the
6General Assembly that the Capital Development Board be allowed
7to use the design-build delivery method for public projects if
8it is shown to be in the State's best interest for that
9particular project. It shall be the policy of the Capital
10Development Board in the procurement of design-build services
11to publicly announce all requirements for design-build
12services and to procure these services on the basis of
13demonstrated competence and qualifications and with due regard
14for the principles of competitive selection.
15    The Capital Development Board shall, prior to issuing
16requests for proposals, promulgate and publish procedures for
17the solicitation and award of contracts pursuant to this Act.
18    The Capital Development Board shall, for each public
19project or projects permitted under this Act, make a written
20determination, including a description as to the particular
21advantages of the design-build procurement method, that it is
22in the best interests of this State to enter into a
23design-build contract for the project or projects. In making
24that determination, the following factors shall be considered:

 

 

SB0262 Engrossed- 64 -LRB100 05183 HLH 15193 b

1        (1) The probability that the design-build procurement
2    method will be in the best interests of the State by
3    providing a material savings of time or cost over the
4    design-bid-build or other delivery system.
5        (2) The type and size of the project and its
6    suitability to the design-build procurement method.
7        (3) The ability of the State construction agency to
8    define and provide comprehensive scope and performance
9    criteria for the project.
10    No State construction agency may use a design-build
11procurement method unless the agency determines in writing that
12the project will comply with the disadvantaged business and
13equal employment practices of the State as established in the
14Business Enterprise for Minorities, Women Females, and Persons
15with Disabilities Act and Section 2-105 of the Illinois Human
16Rights Act.
17    The Capital Development Board shall within 15 days after
18the initial determination provide an advisory copy to the
19Procurement Policy Board and maintain the full record of
20determination for 5 years.
21(Source: P.A. 94-716, eff. 12-13-05.)
 
22    (30 ILCS 537/15)
23    (Section scheduled to be repealed on July 1, 2019)
24    Sec. 15. Solicitation of proposals.
25    (a) When the State construction agency elects to use the

 

 

SB0262 Engrossed- 65 -LRB100 05183 HLH 15193 b

1design-build delivery method, it must issue a notice of intent
2to receive requests for proposals for the project at least 14
3days before issuing the request for the proposal. The State
4construction agency must publish the advance notice in the
5official procurement bulletin of the State or the professional
6services bulletin of the State construction agency, if any. The
7agency is encouraged to use publication of the notice in
8related construction industry service publications. A brief
9description of the proposed procurement must be included in the
10notice. The State construction agency must provide a copy of
11the request for proposal to any party requesting a copy.
12    (b) The request for proposal shall be prepared for each
13project and must contain, without limitation, the following
14information:
15        (1) The name of the State construction agency.
16        (2) A preliminary schedule for the completion of the
17    contract.
18        (3) The proposed budget for the project, the source of
19    funds, and the currently available funds at the time the
20    request for proposal is submitted.
21        (4) Prequalification criteria for design-build
22    entities wishing to submit proposals. The State
23    construction agency shall include, at a minimum, its normal
24    prequalification, licensing, registration, and other
25    requirements, but nothing contained herein precludes the
26    use of additional prequalification criteria by the State

 

 

SB0262 Engrossed- 66 -LRB100 05183 HLH 15193 b

1    construction agency.
2        (5) Material requirements of the contract, including
3    but not limited to, the proposed terms and conditions,
4    required performance and payment bonds, insurance, and the
5    entity's plan to comply with the utilization goals for
6    business enterprises established in the Business
7    Enterprise for Minorities, Women Females, and Persons with
8    Disabilities Act, and with Section 2-105 of the Illinois
9    Human Rights Act.
10        (6) The performance criteria.
11        (7) The evaluation criteria for each phase of the
12    solicitation.
13        (8) The number of entities that will be considered for
14    the technical and cost evaluation phase.
15    (c) The State construction agency may include any other
16relevant information that it chooses to supply. The
17design-build entity shall be entitled to rely upon the accuracy
18of this documentation in the development of its proposal.
19    (d) The date that proposals are due must be at least 21
20calendar days after the date of the issuance of the request for
21proposal. In the event the cost of the project is estimated to
22exceed $10 million, then the proposal due date must be at least
2328 calendar days after the date of the issuance of the request
24for proposal. The State construction agency shall include in
25the request for proposal a minimum of 30 days to develop the
26Phase II submissions after the selection of entities from the

 

 

SB0262 Engrossed- 67 -LRB100 05183 HLH 15193 b

1Phase I evaluation is completed.
2(Source: P.A. 94-716, eff. 12-13-05.)
 
3    (30 ILCS 537/30)
4    (Section scheduled to be repealed on July 1, 2019)
5    Sec. 30. Procedures for Selection.
6    (a) The State construction agency must use a two-phase
7procedure for the selection of the successful design-build
8entity. Phase I of the procedure will evaluate and shortlist
9the design-build entities based on qualifications, and Phase II
10will evaluate the technical and cost proposals.
11    (b) The State construction agency shall include in the
12request for proposal the evaluating factors to be used in Phase
13I. These factors are in addition to any prequalification
14requirements of design-build entities that the agency has set
15forth. Each request for proposal shall establish the relative
16importance assigned to each evaluation factor and subfactor,
17including any weighting of criteria to be employed by the State
18construction agency. The State construction agency must
19maintain a record of the evaluation scoring to be disclosed in
20event of a protest regarding the solicitation.
21    The State construction agency shall include the following
22criteria in every Phase I evaluation of design-build entities:
23(1) experience of personnel; (2) successful experience with
24similar project types; (3) financial capability; (4)
25timeliness of past performance; (5) experience with similarly

 

 

SB0262 Engrossed- 68 -LRB100 05183 HLH 15193 b

1sized projects; (6) successful reference checks of the firm;
2(7) commitment to assign personnel for the duration of the
3project and qualifications of the entity's consultants; and (8)
4ability or past performance in meeting or exhausting good faith
5efforts to meet the utilization goals for business enterprises
6established in the Business Enterprise for Minorities, Women
7Females, and Persons with Disabilities Act and with Section
82-105 of the Illinois Human Rights Act. The State construction
9agency may include any additional relevant criteria in Phase I
10that it deems necessary for a proper qualification review.
11    The State construction agency may not consider any
12design-build entity for evaluation or award if the entity has
13any pecuniary interest in the project or has other
14relationships or circumstances, including but not limited to,
15long-term leasehold, mutual performance, or development
16contracts with the State construction agency, that may give the
17design-build entity a financial or tangible advantage over
18other design-build entities in the preparation, evaluation, or
19performance of the design-build contract or that create the
20appearance of impropriety. No proposal shall be considered that
21does not include an entity's plan to comply with the
22requirements established in the Business Enterprise for
23Minorities, Women Females, and Persons with Disabilities Act,
24for both the design and construction areas of performance, and
25with Section 2-105 of the Illinois Human Rights Act.
26    Upon completion of the qualifications evaluation, the

 

 

SB0262 Engrossed- 69 -LRB100 05183 HLH 15193 b

1State construction agency shall create a shortlist of the most
2highly qualified design-build entities. The State construction
3agency, in its discretion, is not required to shortlist the
4maximum number of entities as identified for Phase II
5evaluation, provided however, no less than 2 design-build
6entities nor more than 6 are selected to submit Phase II
7proposals.
8    The State construction agency shall notify the entities
9selected for the shortlist in writing. This notification shall
10commence the period for the preparation of the Phase II
11technical and cost evaluations. The State construction agency
12must allow sufficient time for the shortlist entities to
13prepare their Phase II submittals considering the scope and
14detail requested by the State agency.
15    (c) The State construction agency shall include in the
16request for proposal the evaluating factors to be used in the
17technical and cost submission components of Phase II. Each
18request for proposal shall establish, for both the technical
19and cost submission components of Phase II, the relative
20importance assigned to each evaluation factor and subfactor,
21including any weighting of criteria to be employed by the State
22construction agency. The State construction agency must
23maintain a record of the evaluation scoring to be disclosed in
24event of a protest regarding the solicitation.
25    The State construction agency shall include the following
26criteria in every Phase II technical evaluation of design-build

 

 

SB0262 Engrossed- 70 -LRB100 05183 HLH 15193 b

1entities: (1) compliance with objectives of the project; (2)
2compliance of proposed services to the request for proposal
3requirements; (3) quality of products or materials proposed;
4(4) quality of design parameters; (5) design concepts; (6)
5innovation in meeting the scope and performance criteria; and
6(7) constructability of the proposed project. The State
7construction agency may include any additional relevant
8technical evaluation factors it deems necessary for proper
9selection.
10    The State construction agency shall include the following
11criteria in every Phase II cost evaluation: the total project
12cost, the construction costs, and the time of completion. The
13State construction agency may include any additional relevant
14technical evaluation factors it deems necessary for proper
15selection. The total project cost criteria weighing factor
16shall be 25%.
17    The State construction agency shall directly employ or
18retain a licensed design professional to evaluate the technical
19and cost submissions to determine if the technical submissions
20are in accordance with generally accepted industry standards.
21    Upon completion of the technical submissions and cost
22submissions evaluation, the State construction agency may
23award the design-build contract to the highest overall ranked
24entity.
25(Source: P.A. 96-21, eff. 6-30-09.)
 

 

 

SB0262 Engrossed- 71 -LRB100 05183 HLH 15193 b

1    (30 ILCS 537/46)
2    (Section scheduled to be repealed on July 1, 2019)
3    Sec. 46. Reports and evaluation. At the end of every 6
4month period following the contract award, and again prior to
5final contract payout and closure, a selected design-build
6entity shall detail, in a written report submitted to the State
7agency, its efforts and success in implementing the entity's
8plan to comply with the utilization goals for business
9enterprises established in the Business Enterprise for
10Minorities, Women Females, and Persons with Disabilities Act
11and the provisions of Section 2-105 of the Illinois Human
12Rights Act. If the entity's performance in implementing the
13plan falls short of the performance measures and outcomes set
14forth in the plans submitted by the entity during the proposal
15process, the entity shall, in a detailed written report, inform
16the General Assembly and the Governor whether and to what
17degree each design-build contract authorized under this Act
18promoted the utilization goals for business enterprises
19established in the Business Enterprise for Minorities, Women
20Females, and Persons with Disabilities Act and the provisions
21of Section 2-105 of the Illinois Human Rights Act.
22(Source: P.A. 94-716, eff. 12-13-05.)
 
23    Section 65. The Project Labor Agreements Act is amended by
24changing Sections 25 and 37 as follows:
 

 

 

SB0262 Engrossed- 72 -LRB100 05183 HLH 15193 b

1    (30 ILCS 571/25)
2    Sec. 25. Contents of agreement. Pursuant to this Act, any
3project labor agreement shall:
4        (a) Set forth effective, immediate, and mutually
5    binding procedures for resolving jurisdictional labor
6    disputes and grievances arising before the completion of
7    work.
8        (b) Contain guarantees against strikes, lockouts, or
9    similar actions.
10        (c) Ensure a reliable source of skilled and experienced
11    labor.
12        (d) For minorities and women females as defined under
13    the Business Enterprise for Minorities, Women Females, and
14    Persons with Disabilities Act, set forth goals for
15    apprenticeship hours to be performed by minorities and
16    women females and set forth goals for total hours to be
17    performed by underrepresented minorities and women
18    females.
19        (e) Permit the selection of the lowest qualified
20    responsible bidder, without regard to union or non-union
21    status at other construction sites.
22        (f) Bind all contractors and subcontractors on the
23    public works project through the inclusion of appropriate
24    bid specifications in all relevant bid documents.
25        (g) Include such other terms as the parties deem
26    appropriate.

 

 

SB0262 Engrossed- 73 -LRB100 05183 HLH 15193 b

1(Source: P.A. 97-199, eff. 7-27-11.)
 
2    (30 ILCS 571/37)
3    Sec. 37. Quarterly report; annual report. A State
4department, agency, authority, board, or instrumentality that
5has a project labor agreement in connection with a public works
6project shall prepare a quarterly report that includes
7workforce participation under the agreement by minorities and
8women females as defined under the Business Enterprise for
9Minorities, Women Females, and Persons with Disabilities Act.
10These reports shall be submitted to the Illinois Department of
11Labor. The Illinois Department of Labor shall submit to the
12General Assembly and the Governor an annual report that details
13the number of minorities and women females employed under all
14public labor agreements within the State.
15(Source: P.A. 97-199, eff. 7-27-11.)
 
16    Section 70. The Business Enterprise for Minorities,
17Females, and Persons with Disabilities Act is amended by
18changing Sections 0.01, 1, 2, 4, 4f, 5, 6, 6a, 7, 8, 8a, 8b, and
198f and by adding Sections 8g, 8h, and 8i as follows:
 
20    (30 ILCS 575/0.01)  (from Ch. 127, par. 132.600)
21    (Section scheduled to be repealed on June 30, 2020)
22    Sec. 0.01. Short title. This Act may be cited as the
23Business Enterprise for Minorities, Women Females, and Persons

 

 

SB0262 Engrossed- 74 -LRB100 05183 HLH 15193 b

1with Disabilities Act.
2(Source: P.A. 88-597, eff. 8-28-94.)
 
3    (30 ILCS 575/1)  (from Ch. 127, par. 132.601)
4    (Section scheduled to be repealed on June 30, 2020)
5    Sec. 1. Purpose. The State of Illinois declares that it is
6the public policy of the State to promote and encourage the
7continuing economic development of minority-owned minority and
8women-owned female owned and operated businesses and that
9minority-owned minority and women-owned female owned and
10operated businesses participate in the State's procurement
11process as both prime and subcontractors. The State of Illinois
12has observed that the goals established in this Act have served
13to increase the participation of minority and women female
14businesses in contracts awarded by the State. The State hereby
15declares that the adoption of this amendatory Act of 1989 shall
16serve the State's continuing interest in promoting open access
17in the awarding of State contracts to disadvantaged small
18business enterprises victimized by discriminatory practices.
19Furthermore, after reviewing evidence of the high level of
20attainment of the 10% minimum goals established under this Act,
21and, after considering evidence that minority and women female
22businesses, as established in 1982, constituted and continue to
23constitute more than 10% of the businesses operating in this
24State, the State declares that the continuation of such 10%
25minimum goals under this amendatory Act of 1989 is a narrowly

 

 

SB0262 Engrossed- 75 -LRB100 05183 HLH 15193 b

1tailored means of promoting open access and thus the further
2growth and development of minority and women female businesses.
3    The State of Illinois further declares that it is the
4public policy of this State to promote and encourage the
5continuous economic development of businesses owned by persons
6with disabilities and a 2% contracting goal is a narrowly
7tailored means of promoting open access and thus the further
8growth and development of those businesses.
9(Source: P.A. 88-597, eff. 8-28-94.)
 
10    (30 ILCS 575/2)
11    (Section scheduled to be repealed on June 30, 2020)
12    Sec. 2. Definitions.
13    (A) For the purpose of this Act, the following terms shall
14have the following definitions:
15        (1) "Minority person" shall mean a person who is a
16    citizen or lawful permanent resident of the United States
17    and who is any of the following:
18            (a) American Indian or Alaska Native (a person
19        having origins in any of the original peoples of North
20        and South America, including Central America, and who
21        maintains tribal affiliation or community attachment).
22            (b) Asian (a person having origins in any of the
23        original peoples of the Far East, Southeast Asia, or
24        the Indian subcontinent, including, but not limited
25        to, Cambodia, China, India, Japan, Korea, Malaysia,

 

 

SB0262 Engrossed- 76 -LRB100 05183 HLH 15193 b

1        Pakistan, the Philippine Islands, Thailand, and
2        Vietnam).
3            (c) Black or African American (a person having
4        origins in any of the black racial groups of Africa).
5        Terms such as "Haitian" or "Negro" can be used in
6        addition to "Black or African American".
7            (d) Hispanic or Latino (a person of Cuban, Mexican,
8        Puerto Rican, South or Central American, or other
9        Spanish culture or origin, regardless of race).
10            (e) Native Hawaiian or Other Pacific Islander (a
11        person having origins in any of the original peoples of
12        Hawaii, Guam, Samoa, or other Pacific Islands).
13        (2) "Woman Female" shall mean a person who is a citizen
14    or lawful permanent resident of the United States and who
15    is of the female gender.
16        (2.05) "Person with a disability" means a person who is
17    a citizen or lawful resident of the United States and is a
18    person qualifying as a person with a disability under
19    subdivision (2.1) of this subsection (A).
20        (2.1) "Person with a disability" means a person with a
21    severe physical or mental disability that:
22            (a) results from:
23            amputation,
24            arthritis,
25            autism,
26            blindness,

 

 

SB0262 Engrossed- 77 -LRB100 05183 HLH 15193 b

1            burn injury,
2            cancer,
3            cerebral palsy,
4            Crohn's disease,
5            cystic fibrosis,
6            deafness,
7            head injury,
8            heart disease,
9            hemiplegia,
10            hemophilia,
11            respiratory or pulmonary dysfunction,
12            an intellectual disability,
13            mental illness,
14            multiple sclerosis,
15            muscular dystrophy,
16            musculoskeletal disorders,
17            neurological disorders, including stroke and
18        epilepsy,
19            paraplegia,
20            quadriplegia and other spinal cord conditions,
21            sickle cell anemia,
22            ulcerative colitis,
23            specific learning disabilities, or
24            end stage renal failure disease; and
25            (b) substantially limits one or more of the
26        person's major life activities.

 

 

SB0262 Engrossed- 78 -LRB100 05183 HLH 15193 b

1        Another disability or combination of disabilities may
2    also be considered as a severe disability for the purposes
3    of item (a) of this subdivision (2.1) if it is determined
4    by an evaluation of rehabilitation potential to cause a
5    comparable degree of substantial functional limitation
6    similar to the specific list of disabilities listed in item
7    (a) of this subdivision (2.1).
8        (3) "Minority-owned Minority owned business" means a
9    business which is at least 51% owned by one or more
10    minority persons, or in the case of a corporation, at least
11    51% of the stock in which is owned by one or more minority
12    persons; and the management and daily business operations
13    of which are controlled by one or more of the minority
14    individuals who own it.
15        (4) "Women-owned Female owned business" means a
16    business which is at least 51% owned by one or more women
17    females, or, in the case of a corporation, at least 51% of
18    the stock in which is owned by one or more women females;
19    and the management and daily business operations of which
20    are controlled by one or more of the women females who own
21    it.
22        (4.1) "Business owned by a person with a disability"
23    means a business that is at least 51% owned by one or more
24    persons with a disability and the management and daily
25    business operations of which are controlled by one or more
26    of the persons with disabilities who own it. A

 

 

SB0262 Engrossed- 79 -LRB100 05183 HLH 15193 b

1    not-for-profit agency for persons with disabilities that
2    is exempt from taxation under Section 501 of the Internal
3    Revenue Code of 1986 is also considered a "business owned
4    by a person with a disability".
5        (4.2) "Council" means the Business Enterprise Council
6    for Minorities, Women Females, and Persons with
7    Disabilities created under Section 5 of this Act.
8        (5) "State contracts" means all contracts entered into
9    by the State, any agency or department thereof, or any
10    public institution of higher education, including
11    community college districts, regardless of the source of
12    the funds with which the contracts are paid, which are not
13    subject to federal reimbursement. "State contracts" does
14    not include contracts awarded by a retirement system,
15    pension fund, or investment board subject to Section
16    1-109.1 of the Illinois Pension Code. This definition shall
17    control over any existing definition under this Act or
18    applicable administrative rule.
19        "State construction contracts" means all State
20    contracts entered into by a State agency or public
21    institution of higher education for the repair,
22    remodeling, renovation or construction of a building or
23    structure, or for the construction or maintenance of a
24    highway defined in Article 2 of the Illinois Highway Code.
25        (6) "State agencies" shall mean all departments,
26    officers, boards, commissions, institutions and bodies

 

 

SB0262 Engrossed- 80 -LRB100 05183 HLH 15193 b

1    politic and corporate of the State, but does not include
2    the Board of Trustees of the University of Illinois, the
3    Board of Trustees of Southern Illinois University, the
4    Board of Trustees of Chicago State University, the Board of
5    Trustees of Eastern Illinois University, the Board of
6    Trustees of Governors State University, the Board of
7    Trustees of Illinois State University, the Board of
8    Trustees of Northeastern Illinois University, the Board of
9    Trustees of Northern Illinois University, the Board of
10    Trustees of Western Illinois University, municipalities or
11    other local governmental units, or other State
12    constitutional officers.
13        (7) "Public institutions of higher education" means
14    the University of Illinois, Southern Illinois University,
15    Chicago State University, Eastern Illinois University,
16    Governors State University, Illinois State University,
17    Northeastern Illinois University, Northern Illinois
18    University, Western Illinois University, the public
19    community colleges of the State, and any other public
20    universities, colleges, and community colleges now or
21    hereafter established or authorized by the General
22    Assembly.
23        (8) "Certification" means a determination made by the
24    Council or by one delegated authority from the Council to
25    make certifications, or by a State agency with statutory
26    authority to make such a certification, that a business

 

 

SB0262 Engrossed- 81 -LRB100 05183 HLH 15193 b

1    entity is a business owned by a minority, woman female, or
2    person with a disability for whatever purpose. A business
3    owned and controlled by women females shall be certified as
4    a "woman-owned female owned business". A business owned and
5    controlled by women females who are also minorities shall
6    be certified as both a "women-owned female owned business"
7    and a "minority-owned minority owned business".
8        (9) "Control" means the exclusive or ultimate and sole
9    control of the business including, but not limited to,
10    capital investment and all other financial matters,
11    property, acquisitions, contract negotiations, legal
12    matters, officer-director-employee selection and
13    comprehensive hiring, operating responsibilities,
14    cost-control matters, income and dividend matters,
15    financial transactions and rights of other shareholders or
16    joint partners. Control shall be real, substantial and
17    continuing, not pro forma. Control shall include the power
18    to direct or cause the direction of the management and
19    policies of the business and to make the day-to-day as well
20    as major decisions in matters of policy, management and
21    operations. Control shall be exemplified by possessing the
22    requisite knowledge and expertise to run the particular
23    business and control shall not include simple majority or
24    absentee ownership.
25        (10) "Business" means a business that has annual gross
26    sales of less than $75,000,000 as evidenced by the federal

 

 

SB0262 Engrossed- 82 -LRB100 05183 HLH 15193 b

1    income tax return of the business. A firm with gross sales
2    in excess of this cap may apply to the Council for
3    certification for a particular contract if the firm can
4    demonstrate that the contract would have significant
5    impact on businesses owned by minorities, women females, or
6    persons with disabilities as suppliers or subcontractors
7    or in employment of minorities, women females, or persons
8    with disabilities.
9        (11) "Utilization plan" means a form and additional
10    documentations included in all bids or proposals that
11    demonstrates a vendor's proposed utilization of vendors
12    certified by the Business Enterprise Program to meet the
13    targeted goal. The utilization plan shall demonstrate that
14    the Vendor has either: (1) met the entire contract goal or
15    (2) requested a full or partial waiver and made good faith
16    efforts towards meeting the goal.
17        (12) "Business Enterprise Program" means the Business
18    Enterprise Program of the Department of Central Management
19    Services.
20    (B) When a business is owned at least 51% by any
21combination of minority persons, women females, or persons with
22disabilities, even though none of the 3 classes alone holds at
23least a 51% interest, the ownership requirement for purposes of
24this Act is considered to be met. The certification category
25for the business is that of the class holding the largest
26ownership interest in the business. If 2 or more classes have

 

 

SB0262 Engrossed- 83 -LRB100 05183 HLH 15193 b

1equal ownership interests, the certification category shall be
2determined by the business.
3(Source: P.A. 98-95, eff. 7-17-13; 99-143, eff. 7-27-15;
499-462, eff. 8-25-15; 99-642, eff. 7-28-16.)
 
5    (30 ILCS 575/4)  (from Ch. 127, par. 132.604)
6    (Section scheduled to be repealed on June 30, 2020)
7    Sec. 4. Award of State contracts.
8    (a) Except as provided in subsections (b) and (c), not less
9than 20% of the total dollar amount of State contracts, as
10defined by the Secretary of the Council and approved by the
11Council, shall be established as an aspirational goal to be
12awarded to businesses owned by minorities, women females, and
13persons with disabilities; provided, however, that of the total
14amount of all State contracts awarded to businesses owned by
15minorities, women females, and persons with disabilities
16pursuant to this Section, contracts representing at least 11%
17shall be awarded to businesses owned by minorities, contracts
18representing at least 7% shall be awarded to women-owned
19female-owned businesses, and contracts representing at least
202% shall be awarded to businesses owned by persons with
21disabilities.
22    The above percentage relates to the total dollar amount of
23State contracts during each State fiscal year, calculated by
24examining independently each type of contract for each agency
25or public institutions of higher education which lets such

 

 

SB0262 Engrossed- 84 -LRB100 05183 HLH 15193 b

1contracts. Only that percentage of arrangements which
2represents the participation of businesses owned by
3minorities, women females, and persons with disabilities on
4such contracts shall be included.
5    (b) In the case of State construction contracts, the
6provisions of subsection (a) requiring a portion of State
7contracts to be awarded to businesses owned and controlled by
8persons with disabilities do not apply. The following
9aspirational goals are established for State construction
10contracts: not less than 20% of the total dollar amount of
11State construction contracts is established as a goal to be
12awarded to minority-owned minority and women-owned female
13owned businesses, and contracts representing 50% of the amount
14of all State construction contracts awarded to minority and
15female owned businesses shall be awarded to female owned
16businesses.
17    (c) In the case of all work undertaken by the University of
18Illinois related to the planning, organization, and staging of
19the games, the University of Illinois shall establish a goal of
20awarding not less than 25% of the annual dollar value of all
21contracts, purchase orders, and other agreements (collectively
22referred to as "the contracts") to minority-owned businesses or
23businesses owned by a person with a disability and 5% of the
24annual dollar value the contracts to women-owned female-owned
25businesses. For purposes of this subsection, the term "games"
26has the meaning set forth in the Olympic Games and Paralympic

 

 

SB0262 Engrossed- 85 -LRB100 05183 HLH 15193 b

1Games (2016) Law.
2    (d) Within one year after April 28, 2009 (the effective
3date of Public Act 96-8), the Department of Central Management
4Services shall conduct a social scientific study that measures
5the impact of discrimination on minority and women female
6business development in Illinois. Within 18 months after April
728, 2009 (the effective date of Public Act 96-8), the
8Department shall issue a report of its findings and any
9recommendations on whether to adjust the goals for minority and
10women female participation established in this Act. Copies of
11this report and the social scientific study shall be filed with
12the Governor and the General Assembly.
13    (e) Except as permitted under this Act or as otherwise
14mandated by federal law or regulation, those who submit bids or
15proposals for State construction contracts subject to the
16provisions of this Act, whose bids or proposals are successful
17and include a utilization plan but that fail to meet the goals
18set forth in subsection (b) of this Section, shall be notified
19of that deficiency and shall be afforded a period not to exceed
2010 calendar days from the date of notification to cure that
21deficiency in the bid or proposal. The deficiency in the bid or
22proposal may only be cured by contracting with additional
23subcontractors who are owned by minorities or women females,
24but in no case shall an identified subcontractor with a
25certification made pursuant to this Act be terminated from the
26contract without the written consent of the State agency or

 

 

SB0262 Engrossed- 86 -LRB100 05183 HLH 15193 b

1public institution of higher education entering into the
2contract.
3    (f) Non-construction solicitations that include Business
4Enterprise Program participation goals shall include the
5utilization plan in the solicitation. Utilization plans are due
6at the time of bid or offer submission. Failure to complete and
7include a utilization plan, including documentation
8demonstrating good faith effort when requesting a waiver, shall
9render the bid or offer non-responsive.
10(Source: P.A. 99-462, eff. 8-25-15; 99-514, eff. 6-30-16.)
 
11    (30 ILCS 575/4f)
12    (Section scheduled to be repealed on June 30, 2020)
13    Sec. 4f. Award of State contracts.
14    (1) It is hereby declared to be the public policy of the
15State of Illinois to promote and encourage each State agency
16and public institution of higher education to use businesses
17owned by minorities, women females, and persons with
18disabilities in the area of goods and services, including, but
19not limited to, insurance services, investment management
20services, information technology services, accounting
21services, architectural and engineering services, and legal
22services. Furthermore, each State agency and public
23institution of higher education shall utilize such firms to the
24greatest extent feasible within the bounds of financial and
25fiduciary prudence, and take affirmative steps to remove any

 

 

SB0262 Engrossed- 87 -LRB100 05183 HLH 15193 b

1barriers to the full participation of such firms in the
2procurement and contracting opportunities afforded.
3        (a) When a State agency or public institution of higher
4    education, other than a community college, awards a
5    contract for insurance services, for each State agency or
6    public institution of higher education, it shall be the
7    aspirational goal to use insurance brokers owned by
8    minorities, women females, and persons with disabilities
9    as defined by this Act, for not less than 20% of the total
10    annual premiums or fees.
11        (b) When a State agency or public institution of higher
12    education, other than a community college, awards a
13    contract for investment services, for each State agency or
14    public institution of higher education, it shall be the
15    aspirational goal to use emerging investment managers
16    owned by minorities, women females, and persons with
17    disabilities as defined by this Act, for not less than 20%
18    of the total funds under management. Furthermore, it is the
19    aspirational goal that not less than 20% of the direct
20    asset managers of the State funds be minorities, women
21    females, and persons with disabilities.
22        (c) When a State agency or public institution of higher
23    education, other than a community college, awards
24    contracts for information technology services, accounting
25    services, architectural and engineering services, and
26    legal services, for each State agency and public

 

 

SB0262 Engrossed- 88 -LRB100 05183 HLH 15193 b

1    institution of higher education, it shall be the
2    aspirational goal to use such firms owned by minorities,
3    women females, and persons with disabilities as defined by
4    this Act and lawyers who are minorities, women females, and
5    persons with disabilities as defined by this Act, for not
6    less than 20% of the total dollar amount of State
7    contracts.
8        (d) When a community college awards a contract for
9    insurance services, investment services, information
10    technology services, accounting services, architectural
11    and engineering services, and legal services, it shall be
12    the aspirational goal of each community college to use
13    businesses owned by minorities, women females, and persons
14    with disabilities as defined in this Act for not less than
15    20% of the total amount spent on contracts for these
16    services collectively. When a community college awards
17    contracts for investment services, contracts awarded to
18    investment managers who are not emerging investment
19    managers as defined in this Act shall not be considered
20    businesses owned by minorities, women females, or persons
21    with disabilities for the purposes of this Section.
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,

 

 

SB0262 Engrossed- 89 -LRB100 05183 HLH 15193 b

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

 

 

SB0262 Engrossed- 90 -LRB100 05183 HLH 15193 b

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 shall adopt policies that identify its plan and
8implementation procedures for increasing the use of service
9firms owned by minorities, women females, and persons with
10disabilities.
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 females, and persons with disabilities,
20including encouraging non-minority-owned non-minority owned
21firms to use other service firms owned by minorities, women
22females, and persons with disabilities as subcontractors when
23the opportunities arise, (iii) state any recommendations made
24by the Council to each State agency and public institution of
25higher education to increase participation by the use of
26service firms owned by minorities, women females, and persons

 

 

SB0262 Engrossed- 91 -LRB100 05183 HLH 15193 b

1with disabilities, and (iv) include the following:
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 females, and persons with disabilities
13    by each State agency and public institution of higher
14    education.
15        (B) For investment management services: the names of
16    the investment managers used, the total funds under
17    management of investment managers; the total commissions,
18    fees paid, or both; the total and percentage of funds under
19    management of emerging investment managers owned by
20    minorities, women females, and persons with disabilities,
21    including the total and percentage of total commissions,
22    fees paid, or both by each State agency and public
23    institution of higher education.
24        (C) The names of service firms, the percentage and
25    total dollar amount paid for professional services by
26    category by each State agency and public institution of

 

 

SB0262 Engrossed- 92 -LRB100 05183 HLH 15193 b

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

 

 

SB0262 Engrossed- 93 -LRB100 05183 HLH 15193 b

1paragraphs (a), (b), and (c) of subsection (1) of this Section
2and the amount paid to certified vendors in those divisions of
3work, and (vii) the total number of contracts entered into for
4the divisions of work specified in paragraphs (a), (b), and (c)
5of subsection (1) of this Section and the total number of
6contracts awarded to certified vendors providing these
7services to the community college district. The Business
8Enterprise Council shall not make any utilization reports under
9this Act for community college districts for Fiscal Year 2015
10and Fiscal Year 2016, but shall make the report required by
11this subsection for Fiscal Year 2017 and for each fiscal year
12thereafter. The Business Enterprise Council shall report the
13information in items (i), (ii), (iii), and (iv) of this
14subsection beginning in September of 2016. The Business
15Enterprise Council may collect the data needed to make its
16report from the Illinois Community College Board.
17    (6) The status of the utilization of services shall be
18discussed at each of the regularly scheduled Business
19Enterprise Council meetings. Time shall be allotted for the
20Council to receive, review, and discuss the progress of the use
21of service firms owned by minorities, women females, and
22persons with disabilities by each State agency and public
23institution of higher education; and any evidence regarding
24past or present racial, ethnic, or gender-based discrimination
25which directly impacts a State agency or public institution of
26higher education contracting with such firms. If after

 

 

SB0262 Engrossed- 94 -LRB100 05183 HLH 15193 b

1reviewing such evidence the Council finds that there is or has
2been such discrimination against a specific group, race or sex,
3the Council shall establish sheltered markets or adjust
4existing sheltered markets tailored to address the Council's
5specific findings for the divisions of work specified in
6paragraphs (a), (b), and (c) of subsection (1) of this Section.
7(Source: P.A. 99-462, eff. 8-25-15; 99-642, eff. 7-28-16.)
 
8    (30 ILCS 575/5)  (from Ch. 127, par. 132.605)
9    (Section scheduled to be repealed on June 30, 2020)
10    Sec. 5. Business Enterprise Council.
11    (1) To help implement, monitor and enforce the goals of
12this Act, there is created the Business Enterprise Council for
13Minorities, Women Females, and Persons with Disabilities,
14hereinafter referred to as the Council, composed of the
15Secretary of Human Services and the Directors of the Department
16of Human Rights, the Department of Commerce and Economic
17Opportunity, the Department of Central Management Services,
18the Department of Transportation and the Capital Development
19Board, or their duly appointed representatives. Ten
20individuals representing businesses that are minority-owned
21minority or women-owned female owned or owned by persons with
22disabilities, 2 individuals representing the business
23community, and a representative of public institutions of
24higher education shall be appointed by the Governor. These
25members shall serve 2 year terms and shall be eligible for

 

 

SB0262 Engrossed- 95 -LRB100 05183 HLH 15193 b

1reappointment. Any vacancy occurring on the Council shall also
2be filled by the Governor. Any member appointed to fill a
3vacancy occurring prior to the expiration of the term for which
4his predecessor was appointed shall be appointed for the
5remainder of such term. Members of the Council shall serve
6without compensation but shall be reimbursed for any ordinary
7and necessary expenses incurred in the performance of their
8duties.
9    The Director of the Department of Central Management
10Services shall serve as the Council chairperson and shall
11select, subject to approval of the council, a Secretary
12responsible for the operation of the program who shall serve as
13the Division Manager of the Business Enterprise for Minorities,
14Women Females, and Persons with Disabilities Division of the
15Department of Central Management Services.
16    The Director of each State agency and the chief executive
17officer of each public institutions of higher education shall
18appoint a liaison to the Council. The liaison shall be
19responsible for submitting to the Council any reports and
20documents necessary under this Act.
21    (2) The Council's authority and responsibility shall be to:
22        (a) Devise a certification procedure to assure that
23    businesses taking advantage of this Act are legitimately
24    classified as businesses owned by minorities, women
25    females, or persons with disabilities.
26        (b) Maintain a list of all businesses legitimately

 

 

SB0262 Engrossed- 96 -LRB100 05183 HLH 15193 b

1    classified as businesses owned by minorities, women
2    females, or persons with disabilities to provide to State
3    agencies and public institutions of higher education.
4        (c) Review rules and regulations for the
5    implementation of the program for businesses owned by
6    minorities, women females, and persons with disabilities.
7        (d) Review compliance plans submitted by each State
8    agency and public institutions of higher education
9    pursuant to this Act.
10        (e) Make annual reports as provided in Section 8f to
11    the Governor and the General Assembly on the status of the
12    program.
13        (f) Serve as a central clearinghouse for information on
14    State contracts, including the maintenance of a list of all
15    pending State contracts upon which businesses owned by
16    minorities, women females, and persons with disabilities
17    may bid. At the Council's discretion, maintenance of the
18    list may include 24-hour electronic access to the list
19    along with the bid and application information.
20        (g) Establish a toll free telephone number to
21    facilitate information requests concerning the
22    certification process and pending contracts.
23    (3) No premium bond rate of a surety company for a bond
24required of a business owned by a minority, woman female, or
25person with a disability bidding for a State contract shall be
26higher than the lowest rate charged by that surety company for

 

 

SB0262 Engrossed- 97 -LRB100 05183 HLH 15193 b

1a similar bond in the same classification of work that would be
2written for a business not owned by a minority, woman female,
3or person with a disability.
4    (4) Any Council member who has direct financial or personal
5interest in any measure pending before the Council shall
6disclose this fact to the Council and refrain from
7participating in the determination upon such measure.
8    (5) The Secretary shall have the following duties and
9responsibilities:
10        (a) To be responsible for the day-to-day operation of
11    the Council.
12        (b) To serve as a coordinator for all of the State's
13    programs for businesses owned by minorities, women
14    females, and persons with disabilities and as the
15    information and referral center for all State initiatives
16    for businesses owned by minorities, women females, and
17    persons with disabilities.
18        (c) To establish an enforcement procedure whereby the
19    Council may recommend to the appropriate State legal
20    officer that the State exercise its legal remedies which
21    shall include (1) termination of the contract involved, (2)
22    prohibition of participation by the respondent in public
23    contracts for a period not to exceed 3 years one year, (3)
24    imposition of a penalty not to exceed any profit acquired
25    as a result of violation, or (4) any combination thereof.
26    Such procedures shall require prior approval by Council.

 

 

SB0262 Engrossed- 98 -LRB100 05183 HLH 15193 b

1        (d) To devise appropriate policies, regulations and
2    procedures for including participation by businesses owned
3    by minorities, women females, and persons with
4    disabilities as prime contractors including, but not
5    limited to, (i) encouraging the inclusions of qualified
6    businesses owned by minorities, women females, and persons
7    with disabilities on solicitation lists, (ii)
8    investigating the potential of blanket bonding programs
9    for small construction jobs, (iii) investigating and
10    making recommendations concerning the use of the sheltered
11    market process.
12        (e) To devise procedures for the waiver of the
13    participation goals in appropriate circumstances.
14        (f) To accept donations and, with the approval of the
15    Council or the Director of Central Management Services,
16    grants related to the purposes of this Act; to conduct
17    seminars related to the purpose of this Act and to charge
18    reasonable registration fees; and to sell directories,
19    vendor lists and other such information to interested
20    parties, except that forms necessary to become eligible for
21    the program shall be provided free of charge to a business
22    or individual applying for the program.
23(Source: P.A. 99-462, eff. 8-25-15.)
 
24    (30 ILCS 575/6)  (from Ch. 127, par. 132.606)
25    (Section scheduled to be repealed on June 30, 2020)

 

 

SB0262 Engrossed- 99 -LRB100 05183 HLH 15193 b

1    Sec. 6. Agency compliance plans. Each State agency and
2public institutions of higher education under the jurisdiction
3of this Act shall file with the Council an annual compliance
4plan which shall outline the goals of the State agency or
5public institutions of higher education for contracting with
6businesses owned by minorities, women females, and persons with
7disabilities for the then current fiscal year, the manner in
8which the agency intends to reach these goals and a timetable
9for reaching these goals. The Council shall review and approve
10the plan of each State agency and public institutions of higher
11education and may reject any plan that does not comply with
12this Act or any rules or regulations promulgated pursuant to
13this Act.
14    (a) The compliance plan shall also include, but not be
15limited to, (1) a policy statement, signed by the State agency
16or public institution of higher education head, expressing a
17commitment to encourage the use of businesses owned by
18minorities, women females, and persons with disabilities, (2)
19the designation of the liaison officer provided for in Section
205 of this Act, (3) procedures to distribute to potential
21contractors and vendors the list of all businesses legitimately
22classified as businesses owned by minorities, women females,
23and persons with disabilities and so certified under this Act,
24(4) procedures to set separate contract goals on specific prime
25contracts and purchase orders with subcontracting
26possibilities based upon the type of work or services and

 

 

SB0262 Engrossed- 100 -LRB100 05183 HLH 15193 b

1subcontractor availability, (5) procedures to assure that
2contractors and vendors make good faith efforts to meet
3contract goals, (6) procedures for contract goal exemption,
4modification and waiver, and (7) the delineation of separate
5contract goals for businesses owned by minorities, women
6females, and persons with disabilities.
7    (b) Approval of the compliance plans shall include such
8delegation of responsibilities to the requesting State agency
9or public institution of higher education as the Council deems
10necessary and appropriate to fulfill the purpose of this Act.
11Such responsibilities may include, but need not be limited to
12those outlined in subsections (1), (2) and (3) of Section 7,
13and paragraph (a) of Section 8, and Section 8a of this Act.
14    (c) Each State agency and public institution of higher
15education under the jurisdiction of this Act shall file with
16the Council an annual report of its utilization of businesses
17owned by minorities, women females, and persons with
18disabilities during the preceding fiscal year including lapse
19period spending and a mid-fiscal year report of its utilization
20to date for the then current fiscal year. The reports shall
21include a self-evaluation of the efforts of the State agency or
22public institution of higher education to meet its goals under
23the Act.
24    (d) Notwithstanding any provisions to the contrary in this
25Act, any State agency or public institution of higher education
26which administers a construction program, for which federal law

 

 

SB0262 Engrossed- 101 -LRB100 05183 HLH 15193 b

1or regulations establish standards and procedures for the
2utilization of minority-owned and women-owned businesses and
3disadvantaged businesses minority, disadvantaged, and
4female-owned business, shall implement a disadvantaged
5business enterprise program to include minority-owned and
6women-owned businesses and disadvantaged businesses minority,
7disadvantaged and female-owned businesses, using the federal
8standards and procedures for the establishment of goals and
9utilization procedures for the State-funded, as well as the
10federally assisted, portions of the program. In such cases,
11these goals shall not exceed those established pursuant to the
12relevant federal statutes or regulations. Notwithstanding the
13provisions of Section 8b, the Illinois Department of
14Transportation is authorized to establish sheltered markets
15for the State-funded portions of the program consistent with
16federal law and regulations. Additionally, a compliance plan
17which is filed by such State agency or public institution of
18higher education pursuant to this Act, which incorporates
19equivalent terms and conditions of its federally-approved
20compliance plan, shall be deemed approved under this Act.
21(Source: P.A. 99-462, eff. 8-25-15.)
 
22    (30 ILCS 575/6a)  (from Ch. 127, par. 132.606a)
23    (Section scheduled to be repealed on June 30, 2020)
24    Sec. 6a. Notice of contracts to Council. Except in case of
25emergency as defined in the Illinois Procurement Code, or as

 

 

SB0262 Engrossed- 102 -LRB100 05183 HLH 15193 b

1authorized by rule promulgated by the Department of Central
2Management Services, each agency and public institution of
3higher education under the jurisdiction of this Act shall
4notify the Secretary of the Council of proposed contracts for
5professional and artistic services and provide the information
6in the form and detail as required by rule promulgated by the
7Department of Central Management Services. Notification may be
8made through direct written communication to the Secretary to
9be received at least 14 days before execution of the contract
10(or the solicitation response date, if applicable) or by
11advertising in the official State newspaper for at least 3
12days, the last of which must be at least 10 days after the
13first publication. The agency or public institution of higher
14education must consider any vendor referred by the Secretary
15before execution of the contract. The provisions of this
16Section shall not apply to any State agency or public
17institution of higher education that has awarded contracts for
18professional and artistic services to businesses owned by
19minorities, women females, and persons with disabilities
20totaling totalling in the aggregate $40,000,000 or more during
21the preceding fiscal year.
22(Source: P.A. 99-462, eff. 8-25-15.)
 
23    (30 ILCS 575/7)  (from Ch. 127, par. 132.607)
24    (Section scheduled to be repealed on June 30, 2020)
25    Sec. 7. Exemptions; and waivers; publication of data.

 

 

SB0262 Engrossed- 103 -LRB100 05183 HLH 15193 b

1    (1) Individual contract exemptions. The Council, on its own
2initiative or at the request of the affected agency, public
3institution of higher education, or recipient of a grant or
4loan of State funds of $250,000 or more complying with Section
545 of the State Finance Act, may permit an individual contract
6or contract package, (related contracts being bid or awarded
7simultaneously for the same project or improvements) be made
8wholly or partially exempt from State contracting goals for
9businesses owned by minorities, women females, and persons with
10disabilities prior to the advertisement for bids or
11solicitation of proposals whenever there has been a
12determination, reduced to writing and based on the best
13information available at the time of the determination, that
14there is an insufficient number of businesses owned by
15minorities, women females, and persons with disabilities to
16ensure adequate competition and an expectation of reasonable
17prices on bids or proposals solicited for the individual
18contract or contract package in question.
19    (2) Class exemptions.
20        (a) Creation. The Council, on its own initiative or at
21    the request of the affected agency or public institution of
22    higher education, may permit an entire class of contracts
23    be made exempt from State contracting goals for businesses
24    owned by minorities, women females, and persons with
25    disabilities whenever there has been a determination,
26    reduced to writing and based on the best information

 

 

SB0262 Engrossed- 104 -LRB100 05183 HLH 15193 b

1    available at the time of the determination, that there is
2    an insufficient number of qualified businesses owned by
3    minorities, women females, and persons with disabilities
4    to ensure adequate competition and an expectation of
5    reasonable prices on bids or proposals within that class.
6        (b) Limitation. Any such class exemption shall not be
7    permitted for a period of more than one year at a time.
8    (3) Waivers. Where a particular contract requires a
9contractor to meet a goal established pursuant to this Act, the
10contractor shall have the right to request a waiver from such
11requirements. The Council shall grant the waiver where the
12contractor demonstrates that there has been made a good faith
13effort to comply with the goals for participation by businesses
14owned by minorities, women females, and persons with
15disabilities.
16    (4) Conflict with other laws. In the event that any State
17contract, which otherwise would be subject to the provisions of
18this Act, is or becomes subject to federal laws or regulations
19which conflict with the provisions of this Act or actions of
20the State taken pursuant hereto, the provisions of the federal
21laws or regulations shall apply and the contract shall be
22interpreted and enforced accordingly.
23    (5) Each chief procurement officer, as defined in the
24Illinois Procurement Code, shall maintain on his or her
25official Internet website a database of waivers granted under
26this Section with respect to contracts under his or her

 

 

SB0262 Engrossed- 105 -LRB100 05183 HLH 15193 b

1jurisdiction. The database, which shall be updated
2periodically as necessary, shall be searchable by contractor
3name and by contracting State agency.
4    (6) Each chief procurement officer, as defined by the
5Illinois Procurement Code, shall maintain on its website a list
6of all firms that have been prohibited from bidding, offering,
7or entering into a contract with the State of Illinois as a
8result of violations of this Act.
9    Each public notice required by law of the award of a State
10contract shall include for each bid or offer submitted for that
11contract the following: (i) the bidder's or offeror's name,
12(ii) the bid amount, (iii) the name or names of the certified
13firms identified in the bidder's or offeror's submitted
14utilization plan, and (iv) (iii) the bid's amount and
15percentage of the contract awarded to businesses owned by
16minorities, women, and persons with disabilities identified in
17the of disadvantaged business utilization plan , and (iv) the
18bid's percentage of business enterprise program utilization
19plan.
20(Source: P.A. 99-462, eff. 8-25-15.)
 
21    (30 ILCS 575/8)  (from Ch. 127, par. 132.608)
22    (Section scheduled to be repealed on June 30, 2020)
23    Sec. 8. Enforcement.
24    (1) The Council shall make such findings, recommendations
25and proposals to the Governor as are necessary and appropriate

 

 

SB0262 Engrossed- 106 -LRB100 05183 HLH 15193 b

1to enforce this Act. If, as a result of its monitoring
2activities, the Council determines that its goals and policies
3are not being met by any State agency or public institution of
4higher education, the Council may recommend any or all of the
5following actions:
6        (a) Establish enforcement procedures whereby the
7    Council may recommend to the appropriate State agency,
8    public institutions of higher education, or law
9    enforcement officer that legal or administrative remedies
10    be initiated for violations of contract provisions or rules
11    issued hereunder or by a contracting State agency or public
12    institutions of higher education. State agencies and
13    public institutions of higher education shall be
14    authorized to adopt remedies for such violations which
15    shall include (1) termination of the contract involved, (2)
16    prohibition of participation of the respondents in public
17    contracts for a period not to exceed one year, (3)
18    imposition of a penalty not to exceed any profit acquired
19    as a result of violation, or (4) any combination thereof.
20        (b) If the Council concludes that a compliance plan
21    submitted under Section 6 is unlikely to produce the
22    participation goals for businesses owned by minorities,
23    women females, and persons with disabilities within the
24    then current fiscal year, the Council may recommend that
25    the State agency or public institution of higher education
26    revise its plan to provide additional opportunities for

 

 

SB0262 Engrossed- 107 -LRB100 05183 HLH 15193 b

1    participation by businesses owned by minorities, women
2    females, and persons with disabilities. Such recommended
3    revisions may include, but shall not be limited to, the
4    following:
5            (i) assurances of stronger and better focused
6        solicitation efforts to obtain more businesses owned
7        by minorities, women females, and persons with
8        disabilities as potential sources of supply;
9            (ii) division of job or project requirements, when
10        economically feasible, into tasks or quantities to
11        permit participation of businesses owned by
12        minorities, women females, and persons with
13        disabilities;
14            (iii) elimination of extended experience or
15        capitalization requirements, when programmatically
16        feasible, to permit participation of businesses owned
17        by minorities, women females, and persons with
18        disabilities;
19            (iv) identification of specific proposed contracts
20        as particularly attractive or appropriate for
21        participation by businesses owned by minorities, women
22        females, and persons with disabilities, such
23        identification to result from and be coupled with the
24        efforts of subparagraphs (i) through (iii);
25            (v) implementation of those regulations
26        established for the use of the sheltered market

 

 

SB0262 Engrossed- 108 -LRB100 05183 HLH 15193 b

1        process.
2    (2) State agencies and public institutions of higher
3education shall review a vendor's compliance with its
4utilization plan and the terms of its contract. Without
5limitation, a vendor's failure to comply with its contractual
6commitments as contained in the utilization plan; failure to
7cooperate in providing information regarding its compliance
8with its utilization plan; or the provision of false or
9misleading information or statements concerning compliance,
10certification status, or eligibility of the Business
11Enterprise Program-certified vendor, good faith efforts, or
12any other material fact or representation shall constitute a
13material breach of the contract and entitle the State agency or
14public institution of higher education to declare a default,
15terminate the contract, or exercise those remedies provided for
16in the contract, at law, or in equity.
17    (3) A vendor shall be in breach of the contract and may be
18subject to penalties for failure to meet contract goals
19established under this Act, unless the vendor can show that it
20made good faith efforts to meet the contract goals.
21(Source: P.A. 99-462, eff. 8-25-15.)
 
22    (30 ILCS 575/8a)  (from Ch. 127, par. 132.608a)
23    (Section scheduled to be repealed on June 30, 2020)
24    Sec. 8a. Advance and progress payments. Any contract
25awarded to a business owned by a minority, woman female, or

 

 

SB0262 Engrossed- 109 -LRB100 05183 HLH 15193 b

1person with a disability pursuant to this Act may contain a
2provision for advance or progress payments, or both, except
3that a State construction contract awarded to a minority-owned
4minority or women-owned female owned business pursuant to this
5Act may contain a provision for progress payments but may not
6contain a provision for advance payments.
7(Source: P.A. 88-597, eff. 8-28-94.)
 
8    (30 ILCS 575/8b)  (from Ch. 127, par. 132.608b)
9    (Section scheduled to be repealed on June 30, 2020)
10    Sec. 8b. Scheduled council meetings; sheltered market. The
11Council shall conduct regular meetings to carry out its
12responsibilities under this Act. At each of the regularly
13scheduled meetings, time shall be allocated for the Council to
14receive, review and discuss any evidence regarding past or
15present racial, ethnic or gender based discrimination which
16directly impacts State contracting with businesses owned by
17minorities, women females, and persons with disabilities. If
18after reviewing such evidence the Council finds that there is
19or has been such discrimination against a specific group, race
20or sex, the Council shall establish sheltered markets or adjust
21existing sheltered markets tailored to address the Council's
22specific findings.
23    "Sheltered market" shall mean a procurement procedure
24whereby certain contracts are selected and specifically set
25aside for businesses owned by minorities, women females, and

 

 

SB0262 Engrossed- 110 -LRB100 05183 HLH 15193 b

1persons with disabilities on a competitive bid or negotiated
2basis.
3    As part of the annual report which the Council must file
4pursuant to paragraph (e) of subsection (2) of Section 5, the
5Council shall report on any findings made pursuant to this
6Section.
7(Source: P.A. 88-597, eff. 8-28-94.)
 
8    (30 ILCS 575/8f)
9    (Section scheduled to be repealed on June 30, 2020)
10    Sec. 8f. Annual report. The Council shall file no later
11than March 1 of each year, an annual report that shall detail
12the level of achievement toward the goals specified in this Act
13over the 3 most recent fiscal years. The annual report shall
14include, but need not be limited to the following:
15        (1) a summary detailing expenditures subject to the
16    goals, the actual goals specified, and the goals attained
17    by each State agency and public institution of higher
18    education;
19        (2) a summary of the number of contracts awarded and
20    the average contract amount by each State agency and public
21    institution of higher education;
22        (3) an analysis of the level of overall goal
23    achievement concerning purchases from minority-owned
24    minority businesses, women-owned female-owned businesses,
25    and businesses owned by persons with disabilities;

 

 

SB0262 Engrossed- 111 -LRB100 05183 HLH 15193 b

1        (4) an analysis of the number of businesses owned by
2    minorities, women females, and persons with disabilities
3    that are certified under the program as well as the number
4    of those businesses that received State procurement
5    contracts; and
6        (5) a summary of the number of contracts awarded to
7    businesses with annual gross sales of less than $1,000,000;
8    of $1,000,000 or more, but less than $5,000,000; of
9    $5,000,000 or more, but less than $10,000,000; and of
10    $10,000,000 or more.
11(Source: P.A. 99-462, eff. 8-25-15.)
 
12    (30 ILCS 575/8g new)
13    Sec. 8g. Business Enterprise Program Council reports.
14    (a) The Department of Central Management Services shall
15provide a report to the Council identifying all State agency
16non-construction solicitations that exceed $20,000,000 and
17that have less than a 20% established goal prior to
18publication.
19    (b) The Department of Central Management Services shall
20provide a report to the Council identifying all State agency
21non-construction contracts that exceed $20,000,000 prior to
22award. The report shall contain the following: (i) the name of
23the proposed awardee, (ii) the total bid amount, (iii) the
24established Business Enterprise Program goal, (iv) the dollar
25amount and percentage of participation by businesses owned by

 

 

SB0262 Engrossed- 112 -LRB100 05183 HLH 15193 b

1minorities, women, and persons with disabilities, and (v) the
2names of the certified firms identified in the utilization
3plan.
 
4    (30 ILCS 575/8h new)
5    Sec. 8h. Encouragement for telecom and communications
6entities to submit supplier diversity reports.
7    (1) The following entities that do business in Illinois or
8serve Illinois customers shall be subject to this Section:
9        (i) all local exchange telecommunications carriers
10    with at least 35,000 subscriber access lines;
11        (ii) cable and video providers, as defined in Section
12    21-20l of the Public Utilities Act;
13        (iii) interconnected VoIP providers, as defined in
14    Section 13-235 of the Public Utilities Act;
15        (iv) wireless service providers;
16        (v) broadband internet access services providers; and
17        (vi) any other entity that provides messaging, voice,
18    or video services via the Internet or a social media
19    platform.
20    (2) Each entity subject to this Section may submit to the
21Illinois Commerce Commission and the Business Enterprise
22Council an annual report by April 15, 20l8, and every April 15
23thereafter, which provides, for the previous calendar year,
24information and data on diversity goals, and progress toward
25achieving those goals, by certified businesses owned by

 

 

SB0262 Engrossed- 113 -LRB100 05183 HLH 15193 b

1minorities, women, persons with disabilities, and
2service-disabled veterans, provided that if the entity does not
3track such information and data for businesses owned by
4service-disabled veterans, the entity may provide information
5and data for businesses owned by veterans.
6    The diversity report shall include the following:
7        (i) Overall annual spending on all such certified
8    businesses.
9        (ii) A narrative description of the entity's supplier
10    diversity goals and plans for meeting those goals.
11        (iii) The entity's best estimate of its annual spending
12    in professional services and spending with certified
13    businesses owned by minorities, women, persons with
14    disabilities, and service-disabled veterans (or veterans,
15    if the reporting entity does not track spending with
16    service-disabled veterans), including, but not limited to,
17    the following professional services categories:
18    accounting; architecture and engineering; consulting;
19    information technology; insurance; financial, legal, and
20    marketing services; and other professional services. The
21    diversity report shall also include the entity's overall
22    annual spending in the listed professional service
23    categories. For the diversity reports due on April 15, 2018
24    and April 15, 2019, the information on annual spending with
25    certified businesses for professional services required by
26    this Section may be provided for all professional services

 

 

SB0262 Engrossed- 114 -LRB100 05183 HLH 15193 b

1    on an aggregated basis.
2        (iv) Beginning with the diversity report due on April
3    15, 2020, the total number and percentage of women and
4    minorities that provided services for each construction
5    project in the State.
6    An entity subject to this Section which is part of an
7affiliated group of entities may provide information for the
8affiliated group as a whole.
9    (3) Any entity that is subject to this Section that does
10not submit a report shall be reported by the Business
11Enterprise Council to each chief procurement officer. Upon
12receiving a report from the Business Enterprise Council, the
13chief procurement officer shall prohibit any entities that do
14not submit a report from bidding on State contracts for a
15period of one year beginning the first day of the following
16fiscal year and post on its respective bulletin the names of
17all entities that fail to comply with the provisions of this
18Section.
19    (4) A vendor may appeal any of the actions taken pursuant
20to this Section in the same manner as a vendor denied
21certification, by following the appeal procedures in the
22administrative rules created pursuant to this Act.
 
23    (30 ILCS 575/8i new)
24    Sec. 8i. Renewals. State agencies and public institutions
25of higher education shall:

 

 

SB0262 Engrossed- 115 -LRB100 05183 HLH 15193 b

1        (a) review all existing contracts prior to the time of
2    renewal to determine if the diversity goal is being met by
3    the prime vendor;
4        (b) review all existing contracts prior to the time of
5    renewal to determine if the contract goal should be
6    increased based upon market conditions and availability of
7    firms certified pursuant to this Act;
8        (c) review existing contracts with no contract goal to
9    determine if a goal can be established; if it is determined
10    that a diversity goal can be established, the State agency
11    or public institution of higher education shall encourage
12    the prime vendor to amend the contract to include the
13    contract goal; prime contractors shall be required to
14    complete a utilization plan to demonstrate how it intends
15    to meet the diversity goal; and
16        (e) review renewals at least 6 months prior to renewal
17    to allow adequate time to rebid if it is determined that
18    the prime contractor has not demonstrated good faith
19    efforts towards meeting the diversity goal.
20    All renewals shall be subject to any amendments made to
21this Act, or amendments made to any administrative rules
22adopted under this Act, that become effective prior to the date
23of renewal.
24    The requirements of this Section shall not apply to
25construction and construction-related services procurements.
26    This Section is operative on and after January 1, 2018.
 

 

 

SB0262 Engrossed- 116 -LRB100 05183 HLH 15193 b

1    Section 75. The Film Production Services Tax Credit Act of
22008 is amended by changing Sections 30 and 45 as follows:
 
3    (35 ILCS 16/30)
4    Sec. 30. Review of application for accredited production
5certificate.
6    (a) In determining whether to issue an accredited
7production certificate, the Department must determine that a
8preponderance of the following conditions exist:
9        (1) The applicant's production intends to make the
10    expenditure in the State required for certification.
11        (2) The applicant's production is economically sound
12    and will benefit the people of the State of Illinois by
13    increasing opportunities for employment and strengthen the
14    economy of Illinois.
15        (3) The applicant has filed a diversity plan with the
16    Department outlining specific goals (i) for hiring
17    minority persons and women females, as defined in the
18    Business Enterprise for Minorities, Women Females, and
19    Persons with Disabilities Act, and (ii) for using vendors
20    receiving certification under the Business Enterprise for
21    Minorities, Women Females, and Persons with Disabilities
22    Act; the Department has approved the plan as meeting the
23    requirements established by the Department; and the
24    Department has verified that the applicant has met or made

 

 

SB0262 Engrossed- 117 -LRB100 05183 HLH 15193 b

1    good-faith efforts in achieving those goals. The
2    Department must adopt any rules that are necessary to
3    ensure compliance with the provisions of this item (3) and
4    that are necessary to require that the applicant's plan
5    reflects the diversity of this State.
6        (4) The applicant's production application indicates
7    whether the applicant intends to participate in training,
8    education, and recruitment programs that are organized in
9    cooperation with Illinois colleges and universities, labor
10    organizations, and the motion picture industry and are
11    designed to promote and encourage the training and hiring
12    of Illinois residents who represent the diversity of the
13    Illinois population.
14        (5) That, if not for the credit, the applicant's
15    production would not occur in Illinois, which may be
16    demonstrated by any means including, but not limited to,
17    evidence that the applicant has multi-state or
18    international location options and could reasonably and
19    efficiently locate outside of the State, or demonstration
20    that at least one other state or nation is being considered
21    for the production, or evidence that the receipt of the
22    credit is a major factor in the applicant's decision and
23    that without the credit the applicant likely would not
24    create or retain jobs in Illinois, or demonstration that
25    receiving the credit is essential to the applicant's
26    decision to create or retain new jobs in the State.

 

 

SB0262 Engrossed- 118 -LRB100 05183 HLH 15193 b

1        (6) Awarding the credit will result in an overall
2    positive impact to the State, as determined by the
3    Department using the best available data.
4    (b) If any of the provisions in this Section conflict with
5any existing collective bargaining agreements, the terms and
6conditions of those collective bargaining agreements shall
7control.
8(Source: P.A. 95-720, eff. 5-27-08.)
 
9    (35 ILCS 16/45)
10    Sec. 45. Evaluation of tax credit program; reports to the
11General Assembly.
12    (a) The Department shall evaluate the tax credit program.
13The evaluation must include an assessment of the effectiveness
14of the program in creating and retaining new jobs in Illinois
15and of the revenue impact of the program, and may include a
16review of the practices and experiences of other states or
17nations with similar programs. Upon completion of this
18evaluation, the Department shall determine the overall success
19of the program, and may make a recommendation to extend,
20modify, or not extend the program based on this evaluation.
21    (b) At the end of each fiscal quarter, the Department must
22submit to the General Assembly a report that includes, without
23limitation, the following information:
24        (1) the economic impact of the tax credit program,
25    including the number of jobs created and retained,

 

 

SB0262 Engrossed- 119 -LRB100 05183 HLH 15193 b

1    including whether the job positions are entry level,
2    management, talent-related, vendor-related, or
3    production-related;
4        (2) the amount of film production spending brought to
5    Illinois, including the amount of spending and type of
6    Illinois vendors hired in connection with an accredited
7    production; and
8        (3) an overall picture of whether the human
9    infrastructure of the motion picture industry in Illinois
10    reflects the geographical, racial and ethnic, gender, and
11    income-level diversity of the State of Illinois.
12    (c) At the end of each fiscal year, the Department must
13submit to the General Assembly a report that includes, without
14limitation, the following information:
15        (1) an identification of each vendor that provided
16    goods or services that were included in an accredited
17    production's Illinois production spending;
18        (2) the amount paid to each identified vendor by the
19    accredited production;
20        (3) for each identified vendor, a statement as to
21    whether the vendor is a minority-owned minority owned
22    business or a women-owned female owned business, as defined
23    under Section 2 of the Business Enterprise for Minorities,
24    Women Females, and Persons with Disabilities Act; and
25        (4) a description of any steps taken by the Department
26    to encourage accredited productions to use vendors who are

 

 

SB0262 Engrossed- 120 -LRB100 05183 HLH 15193 b

1    a minority-owned minority owned business or a women-owned
2    female owned business.
3(Source: P.A. 95-720, eff. 5-27-08.)
 
4    Section 80. The Live Theater Production Tax Credit Act is
5amended by changing Sections 10-30 and 10-50 as follows:
 
6    (35 ILCS 17/10-30)
7    Sec. 10-30. Review of application for accredited theater
8production certificate.
9    (a) The Department shall issue an accredited theater
10production certificate to an applicant if it finds that by a
11preponderance the following conditions exist:
12        (1) the applicant intends to make the expenditure in
13    the State required for certification of the accredited
14    theater production;
15        (2) the applicant's accredited theater production is
16    economically sound and will benefit the people of the State
17    of Illinois by increasing opportunities for employment and
18    will strengthen the economy of Illinois;
19        (3) the following requirements related to the
20    implementation of a diversity plan have been met: (i) the
21    applicant has filed with the Department a diversity plan
22    outlining specific goals for hiring Illinois labor
23    expenditure eligible minority persons and women females,
24    as defined in the Business Enterprise for Minorities, Women

 

 

SB0262 Engrossed- 121 -LRB100 05183 HLH 15193 b

1    Females, and Persons with Disabilities Act, and for using
2    vendors receiving certification under the Business
3    Enterprise for Minorities, Women Females, and Persons with
4    Disabilities Act; (ii) the Department has approved the plan
5    as meeting the requirements established by the Department
6    and verified that the applicant has met or made good faith
7    efforts in achieving those goals; and (iii) the Department
8    has adopted any rules that are necessary to ensure
9    compliance with the provisions set forth in this paragraph
10    and necessary to require that the applicant's plan reflects
11    the diversity of the population of this State;
12        (4) the applicant's accredited theater production
13    application indicates whether the applicant intends to
14    participate in training, education, and recruitment
15    programs that are organized in cooperation with Illinois
16    colleges and universities, labor organizations, and the
17    holders of accredited theater production certificates and
18    are designed to promote and encourage the training and
19    hiring of Illinois residents who represent the diversity of
20    Illinois;
21        (5) if not for the tax credit award, the applicant's
22    accredited theater production would not occur in Illinois,
23    which may be demonstrated by any means, including, but not
24    limited to, evidence that: (i) the applicant, presenter,
25    owner, or licensee of the production rights has other state
26    or international location options at which to present the

 

 

SB0262 Engrossed- 122 -LRB100 05183 HLH 15193 b

1    production and could reasonably and efficiently locate
2    outside of the State, (ii) at least one other state or
3    nation could be considered for the production, (iii) the
4    receipt of the tax award credit is a major factor in the
5    decision of the applicant, presenter, production owner or
6    licensee as to where the production will be presented and
7    that without the tax credit award the applicant likely
8    would not create or retain jobs in Illinois, or (iv)
9    receipt of the tax credit award is essential to the
10    applicant's decision to create or retain new jobs in the
11    State; and
12        (6) the tax credit award will result in an overall
13    positive impact to the State, as determined by the
14    Department using the best available data.
15    (b) If any of the provisions in this Section conflict with
16any existing collective bargaining agreements, the terms and
17conditions of those collective bargaining agreements shall
18control.
19    (c) The Department shall act expeditiously regarding
20approval of applications for accredited theater production
21certificates so as to accommodate the pre-production work,
22booking, commencement of ticket sales, determination of
23performance dates, load in, and other matters relating to the
24live theater productions for which approval is sought.
25(Source: P.A. 97-636, eff. 6-1-12.)
 

 

 

SB0262 Engrossed- 123 -LRB100 05183 HLH 15193 b

1    (35 ILCS 17/10-50)
2    Sec. 10-50. Live theater tax credit award program
3evaluation and reports.
4    (a) The Department's live theater tax credit award
5evaluation must include:
6        (i) an assessment of the effectiveness of the program
7    in creating and retaining new jobs in Illinois;
8        (ii) an assessment of the revenue impact of the
9    program;
10        (iii) in the discretion of the Department, a review of
11    the practices and experiences of other states or nations
12    with similar programs; and
13        (iv) an assessment of the overall success of the
14    program. The Department may make a recommendation to
15    extend, modify, or not extend the program based on the
16    evaluation.
17    (b) At the end of each fiscal quarter, the Department shall
18submit to the General Assembly a report that includes, without
19limitation:
20        (i) an assessment of the economic impact of the
21    program, including the number of jobs created and retained,
22    and whether the job positions are entry level, management,
23    vendor, or production related;
24        (ii) the amount of accredited theater production
25    spending brought to Illinois, including the amount of
26    spending and type of Illinois vendors hired in connection

 

 

SB0262 Engrossed- 124 -LRB100 05183 HLH 15193 b

1    with an accredited theater production; and
2        (iii) a determination of whether those receiving
3    qualifying Illinois labor expenditure salaries or wages
4    reflect the geographical, racial and ethnic, gender, and
5    income level diversity of the State of Illinois.
6    (c) At the end of each fiscal year, the Department shall
7submit to the General Assembly a report that includes, without
8limitation:
9        (i) the identification of each vendor that provided
10    goods or services that were included in an accredited
11    theater production's Illinois production spending;
12        (ii) a statement of the amount paid to each identified
13    vendor by the accredited theater production and whether the
14    vendor is a minority-owned minority or women-owned female
15    owned business as defined in Section 2 of the Business
16    Enterprise for Minorities, Women Females, and Persons with
17    Disabilities Act; and
18        (iii) a description of the steps taken by the
19    Department to encourage accredited theater productions to
20    use vendors who are minority-owned minority or women-owned
21    female owned businesses.
22(Source: P.A. 97-636, eff. 6-1-12.)
 
23    Section 85. The Illinois Pension Code is amended by
24changing Sections 1-109.1 and 1-113.21 as follows:
 

 

 

SB0262 Engrossed- 125 -LRB100 05183 HLH 15193 b

1    (40 ILCS 5/1-109.1)  (from Ch. 108 1/2, par. 1-109.1)
2    Sec. 1-109.1. Allocation and delegation of fiduciary
3duties.
4    (1) Subject to the provisions of Section 22A-113 of this
5Code and subsections (2) and (3) of this Section, the board of
6trustees of a retirement system or pension fund established
7under this Code may:
8        (a) Appoint one or more investment managers as
9    fiduciaries to manage (including the power to acquire and
10    dispose of) any assets of the retirement system or pension
11    fund; and
12        (b) Allocate duties among themselves and designate
13    others as fiduciaries to carry out specific fiduciary
14    activities other than the management of the assets of the
15    retirement system or pension fund.
16    (2) The board of trustees of a pension fund established
17under Article 5, 6, 8, 9, 10, 11, 12 or 17 of this Code may not
18transfer its investment authority, nor transfer the assets of
19the fund to any other person or entity for the purpose of
20consolidating or merging its assets and management with any
21other pension fund or public investment authority, unless the
22board resolution authorizing such transfer is submitted for
23approval to the contributors and pensioners of the fund at
24elections held not less than 30 days after the adoption of such
25resolution by the board, and such resolution is approved by a
26majority of the votes cast on the question in both the

 

 

SB0262 Engrossed- 126 -LRB100 05183 HLH 15193 b

1contributors election and the pensioners election. The
2election procedures and qualifications governing the election
3of trustees shall govern the submission of resolutions for
4approval under this paragraph, insofar as they may be made
5applicable.
6    (3) Pursuant to subsections (h) and (i) of Section 6 of
7Article VII of the Illinois Constitution, the investment
8authority of boards of trustees of retirement systems and
9pension funds established under this Code is declared to be a
10subject of exclusive State jurisdiction, and the concurrent
11exercise by a home rule unit of any power affecting such
12investment authority is hereby specifically denied and
13preempted.
14    (4) For the purposes of this Code, "emerging investment
15manager" means a qualified investment adviser that manages an
16investment portfolio of at least $10,000,000 but less than
17$10,000,000,000 and is a "minority-owned minority owned
18business", "women-owned female owned business" or "business
19owned by a person with a disability" as those terms are defined
20in the Business Enterprise for Minorities, Women Females, and
21Persons with Disabilities Act.
22    It is hereby declared to be the public policy of the State
23of Illinois to encourage the trustees of public employee
24retirement systems, pension funds, and investment boards to use
25emerging investment managers in managing their system's
26assets, encompassing all asset classes, and increase the

 

 

SB0262 Engrossed- 127 -LRB100 05183 HLH 15193 b

1racial, ethnic, and gender diversity of its fiduciaries, to the
2greatest extent feasible within the bounds of financial and
3fiduciary prudence, and to take affirmative steps to remove any
4barriers to the full participation in investment opportunities
5afforded by those retirement systems, pension funds, and
6investment boards.
7    On or before January 1, 2010, a retirement system, pension
8fund, or investment board subject to this Code, except those
9whose investments are restricted by Section 1-113.2 of this
10Code, shall adopt a policy that sets forth goals for
11utilization of emerging investment managers. This policy shall
12include quantifiable goals for the management of assets in
13specific asset classes by emerging investment managers. The
14retirement system, pension fund, or investment board shall
15establish 3 separate goals for: (i) emerging investment
16managers that are minority-owned minority owned businesses;
17(ii) emerging investment managers that are women-owned female
18owned businesses; and (iii) emerging investment managers that
19are businesses owned by a person with a disability. The goals
20established shall be based on the percentage of total dollar
21amount of investment service contracts let to minority-owned
22minority owned businesses, women-owned female owned
23businesses, and businesses owned by a person with a disability,
24as those terms are defined in the Business Enterprise for
25Minorities, Women Females, and Persons with Disabilities Act.
26The retirement system, pension fund, or investment board shall

 

 

SB0262 Engrossed- 128 -LRB100 05183 HLH 15193 b

1annually review the goals established under this subsection.
2    If in any case an emerging investment manager meets the
3criteria established by a board for a specific search and meets
4the criteria established by a consultant for that search, then
5that emerging investment manager shall receive an invitation by
6the board of trustees, or an investment committee of the board
7of trustees, to present his or her firm for final consideration
8of a contract. In the case where multiple emerging investment
9managers meet the criteria of this Section, the staff may
10choose the most qualified firm or firms to present to the
11board.
12    The use of an emerging investment manager does not
13constitute a transfer of investment authority for the purposes
14of subsection (2) of this Section.
15    (5) Each retirement system, pension fund, or investment
16board subject to this Code, except those whose investments are
17restricted by Section 1-113.2 of this Code, shall establish a
18policy that sets forth goals for increasing the racial, ethnic,
19and gender diversity of its fiduciaries, including its
20consultants and senior staff. Each system, fund, and investment
21board shall annually review the goals established under this
22subsection.
23    (6) On or before January 1, 2010, a retirement system,
24pension fund, or investment board subject to this Code, except
25those whose investments are restricted by Section 1-113.2 of
26this Code, shall adopt a policy that sets forth goals for

 

 

SB0262 Engrossed- 129 -LRB100 05183 HLH 15193 b

1utilization of businesses owned by minorities, women females,
2and persons with disabilities for all contracts and services.
3The goals established shall be based on the percentage of total
4dollar amount of all contracts let to minority-owned minority
5owned businesses, women-owned female owned businesses, and
6businesses owned by a person with a disability, as those terms
7are defined in the Business Enterprise for Minorities, Women
8Females, and Persons with Disabilities Act. The retirement
9system, pension fund, or investment board shall annually review
10the goals established under this subsection.
11    (7) On or before January 1, 2010, a retirement system,
12pension fund, or investment board subject to this Code, except
13those whose investments are restricted by Section 1-113.2 of
14this Code, shall adopt a policy that sets forth goals for
15increasing the utilization of minority broker-dealers. For the
16purposes of this Code, "minority broker-dealer" means a
17qualified broker-dealer who meets the definition of
18"minority-owned minority owned business", "women-owned female
19owned business", or "business owned by a person with a
20disability", as those terms are defined in the Business
21Enterprise for Minorities, Women Females, and Persons with
22Disabilities Act. The retirement system, pension fund, or
23investment board shall annually review the goals established
24under this Section.
25    (8) Each retirement system, pension fund, and investment
26board subject to this Code, except those whose investments are

 

 

SB0262 Engrossed- 130 -LRB100 05183 HLH 15193 b

1restricted by Section 1-113.2 of this Code, shall submit a
2report to the Governor and the General Assembly by January 1 of
3each year that includes the following: (i) the policy adopted
4under subsection (4) of this Section, including the names and
5addresses of the emerging investment managers used, percentage
6of the assets under the investment control of emerging
7investment managers for the 3 separate goals, and the actions
8it has undertaken to increase the use of emerging investment
9managers, including encouraging other investment managers to
10use emerging investment managers as subcontractors when the
11opportunity arises; (ii) the policy adopted under subsection
12(5) of this Section; (iii) the policy adopted under subsection
13(6) of this Section; (iv) the policy adopted under subsection
14(7) of this Section, including specific actions undertaken to
15increase the use of minority broker-dealers; and (v) the policy
16adopted under subsection (9) of this Section.
17    (9) On or before February 1, 2015, a retirement system,
18pension fund, or investment board subject to this Code, except
19those whose investments are restricted by Section 1-113.2 of
20this Code, shall adopt a policy that sets forth goals for
21increasing the utilization of minority investment managers.
22For the purposes of this Code, "minority investment manager"
23means a qualified investment manager that manages an investment
24portfolio and meets the definition of "minority-owned minority
25owned business", "women-owned female owned business", or
26"business owned by a person with a disability", as those terms

 

 

SB0262 Engrossed- 131 -LRB100 05183 HLH 15193 b

1are defined in the Business Enterprise for Minorities, Women
2Females, and Persons with Disabilities Act.
3    It is hereby declared to be the public policy of the State
4of Illinois to encourage the trustees of public employee
5retirement systems, pension funds, and investment boards to use
6minority investment managers in managing their systems'
7assets, encompassing all asset classes, and to increase the
8racial, ethnic, and gender diversity of their fiduciaries, to
9the greatest extent feasible within the bounds of financial and
10fiduciary prudence, and to take affirmative steps to remove any
11barriers to the full participation in investment opportunities
12afforded by those retirement systems, pension funds, and
13investment boards.
14    The retirement system, pension fund, or investment board
15shall establish 3 separate goals for: (i) minority investment
16managers that are minority-owned minority owned businesses;
17(ii) minority investment managers that are women-owned female
18owned businesses; and (iii) minority investment managers that
19are businesses owned by a person with a disability. The
20retirement system, pension fund, or investment board shall
21annually review the goals established under this Section.
22    If in any case a minority investment manager meets the
23criteria established by a board for a specific search and meets
24the criteria established by a consultant for that search, then
25that minority investment manager shall receive an invitation by
26the board of trustees, or an investment committee of the board

 

 

SB0262 Engrossed- 132 -LRB100 05183 HLH 15193 b

1of trustees, to present his or her firm for final consideration
2of a contract. In the case where multiple minority investment
3managers meet the criteria of this Section, the staff may
4choose the most qualified firm or firms to present to the
5board.
6    The use of a minority investment manager does not
7constitute a transfer of investment authority for the purposes
8of subsection (2) of this Section.
9    (10) Beginning January 1, 2016, it shall be the
10aspirational goal for a retirement system, pension fund, or
11investment board subject to this Code to use emerging
12investment managers for not less than 20% of the total funds
13under management. Furthermore, it shall be the aspirational
14goal that not less than 20% of investment advisors be
15minorities, women females, and persons with disabilities as
16those terms are defined in the Business Enterprise for
17Minorities, Women Females, and Persons with Disabilities Act.
18It shall be the aspirational goal to utilize businesses owned
19by minorities, women females, and persons with disabilities for
20not less than 20% of contracts awarded for "information
21technology services", "accounting services", "insurance
22brokers", "architectural and engineering services", and "legal
23services" as those terms are defined in the Act.
24(Source: P.A. 98-1022, eff. 1-1-15; 99-462, eff. 8-25-15.)
 
25    (40 ILCS 5/1-113.21)

 

 

SB0262 Engrossed- 133 -LRB100 05183 HLH 15193 b

1    Sec. 1-113.21. Contracts for services.
2    (a) Beginning January 1, 2015, no contract, oral or
3written, for investment services, consulting services, or
4commitment to a private market fund shall be awarded by a
5retirement system, pension fund, or investment board
6established under this Code unless the investment advisor,
7consultant, or private market fund first discloses:
8        (1) the number of its investment and senior staff and
9    the percentage of its investment and senior staff who are
10    (i) a minority person, (ii) a woman female, and (iii) a
11    person with a disability; and
12        (2) the number of contracts, oral or written, for
13    investment services, consulting services, and professional
14    and artistic services that the investment advisor,
15    consultant, or private market fund has with (i) a
16    minority-owned minority owned business, (ii) a women-owned
17    female owned business, or (iii) a business owned by a
18    person with a disability; and
19        (3) the number of contracts, oral or written, for
20    investment services, consulting services, and professional
21    and artistic services the investment advisor, consultant,
22    or private market fund has with a business other than (i) a
23    minority-owned minority owned business, (ii) a women-owned
24    female owned business or (iii) a business owned by a person
25    with a disability, if more than 50% of services performed
26    pursuant to the contract are performed by (i) a minority

 

 

SB0262 Engrossed- 134 -LRB100 05183 HLH 15193 b

1    person, (ii) a woman female, and (iii) a person with a
2    disability.
3    (b) The disclosures required by this Section shall be
4considered, within the bounds of financial and fiduciary
5prudence, prior to the awarding of a contract, oral or written,
6for investment services, consulting services, or commitment to
7a private market fund.
8    (c) For the purposes of this Section, the terms "minority
9person", "woman female", "person with a disability",
10"minority-owned minority owned business", "women-owned female
11owned business", and "business owned by a person with a
12disability" have the same meaning as those terms have in the
13Business Enterprise for Minorities, Women Females, and Persons
14with Disabilities Act.
15    (d) For purposes of this Section, the term "private market
16fund" means any private equity fund, private equity fund of
17funds, venture capital fund, hedge fund, hedge fund of funds,
18real estate fund, or other investment vehicle that is not
19publicly traded.
20(Source: P.A. 98-1022, eff. 1-1-15.)
 
21    Section 90. The Counties Code is amended by changing
22Section 5-1134 as follows:
 
23    (55 ILCS 5/5-1134)
24    Sec. 5-1134. Project labor agreements.

 

 

SB0262 Engrossed- 135 -LRB100 05183 HLH 15193 b

1    (a) Any sports, arts, or entertainment facilities that
2receive revenue from a tax imposed under subsection (b) of
3Section 5-1030 of this Code shall be considered to be public
4works within the meaning of the Prevailing Wage Act. The county
5authorities responsible for the construction, renovation,
6modification, or alteration of the sports, arts, or
7entertainment facilities shall enter into project labor
8agreements with labor organizations as defined in the National
9Labor Relations Act to assure that no labor dispute interrupts
10or interferes with the construction, renovation, modification,
11or alteration of the projects.
12    (b) The project labor agreements must include the
13following:
14        (1) provisions establishing the minimum hourly wage
15    for each class of labor organization employees;
16        (2) provisions establishing the benefits and other
17    compensation for such class of labor organization; and
18        (3) provisions establishing that no strike or disputes
19    will be engaged in by the labor organization employees.
20    The county, taxing bodies, municipalities, and the labor
21organizations shall have the authority to include other terms
22and conditions as they deem necessary.
23    (c) The project labor agreement shall be filed with the
24Director of the Illinois Department of Labor in accordance with
25procedures established by the Department. At a minimum, the
26project labor agreement must provide the names, addresses, and

 

 

SB0262 Engrossed- 136 -LRB100 05183 HLH 15193 b

1occupations of the owner of the facilities and the individuals
2representing the labor organization employees participating in
3the project labor agreement. The agreement must also specify
4the terms and conditions required in subsection (b) of this
5Section.
6    (d) In any agreement for the construction or rehabilitation
7of a facility using revenue generated under subsection (b) of
8Section 5-1030 of this Code, in connection with the
9prequalification of general contractors for construction or
10rehabilitation of the facility, it shall be required that a
11commitment will be submitted detailing how the general
12contractor will expend 15% or more of the aggregate dollar
13value of the project as a whole with one or more minority-owned
14businesses, women-owned female-owned businesses, or businesses
15owned by a person with a disability, as these terms are defined
16in Section 2 of the Business Enterprise for Minorities, Women
17Females, and Persons with Disabilities Act.
18(Source: P.A. 98-313, eff. 8-12-13; 98-756, eff. 7-16-14.)
 
19    Section 95. The River Edge Redevelopment Zone Act is
20amended by changing Section 10-5.3 as follows:
 
21    (65 ILCS 115/10-5.3)
22    Sec. 10-5.3. Certification of River Edge Redevelopment
23Zones.
24    (a) Approval of designated River Edge Redevelopment Zones

 

 

SB0262 Engrossed- 137 -LRB100 05183 HLH 15193 b

1shall be made by the Department by certification of the
2designating ordinance. The Department shall promptly issue a
3certificate for each zone upon its approval. The certificate
4shall be signed by the Director of the Department, shall make
5specific reference to the designating ordinance, which shall be
6attached thereto, and shall be filed in the office of the
7Secretary of State. A certified copy of the River Edge
8Redevelopment Zone Certificate, or a duplicate original
9thereof, shall be recorded in the office of the recorder of
10deeds of the county in which the River Edge Redevelopment Zone
11lies.
12    (b) A River Edge Redevelopment Zone shall be effective upon
13its certification. The Department shall transmit a copy of the
14certification to the Department of Revenue, and to the
15designating municipality. Upon certification of a River Edge
16Redevelopment Zone, the terms and provisions of the designating
17ordinance shall be in effect, and may not be amended or
18repealed except in accordance with Section 10-5.4.
19    (c) A River Edge Redevelopment Zone shall be in effect for
20the period stated in the certificate, which shall in no event
21exceed 30 calendar years. Zones shall terminate at midnight of
22December 31 of the final calendar year of the certified term,
23except as provided in Section 10-5.4.
24    (d) In calendar years 2006 and 2007, the Department may
25certify one pilot River Edge Redevelopment Zone in the City of
26East St. Louis, one pilot River Edge Redevelopment Zone in the

 

 

SB0262 Engrossed- 138 -LRB100 05183 HLH 15193 b

1City of Rockford, and one pilot River Edge Redevelopment Zone
2in the City of Aurora.
3    In calendar year 2009, the Department may certify one pilot
4River Edge Redevelopment Zone in the City of Elgin.
5    On or after the effective date of this amendatory Act of
6the 97th General Assembly, the Department may certify one
7additional pilot River Edge Redevelopment Zone in the City of
8Peoria.
9    Thereafter the Department may not certify any additional
10River Edge Redevelopment Zones, but may amend and rescind
11certifications of existing River Edge Redevelopment Zones in
12accordance with Section 10-5.4, except that no River Edge
13Redevelopment Zone may be extended on or after the effective
14date of this amendatory Act of the 97th General Assembly. Each
15River Edge Redevelopment Zone in existence on the effective
16date of this amendatory Act of the 97th General Assembly shall
17continue until its scheduled termination under this Act, unless
18the Zone is decertified sooner. At the time of its term
19expiration each River Edge Redevelopment Zone will become an
20open enterprise zone, available for the previously designated
21area or a different area to compete for designation as an
22enterprise zone. No preference for designation as a Zone will
23be given to the previously designated area.
24    (e) A municipality in which a River Edge Redevelopment Zone
25has been certified must submit to the Department, within 60
26days after the certification, a plan for encouraging the

 

 

SB0262 Engrossed- 139 -LRB100 05183 HLH 15193 b

1participation by minority persons, women females, persons with
2disabilities, and veterans in the zone. The Department may
3assist the municipality in developing and implementing the
4plan. The terms "minority person", "woman female", and "person
5with a disability" have the meanings set forth under Section 2
6of the Business Enterprise for Minorities, Women Females, and
7Persons with Disabilities Act. "Veteran" means an Illinois
8resident who is a veteran as defined in subsection (h) of
9Section 1491 of Title 10 of the United States Code.
10(Source: P.A. 96-37, eff. 7-13-09; 97-203, eff. 7-28-11;
1197-905, eff. 8-7-12.)
 
12    Section 100. The Metropolitan Pier and Exposition
13Authority Act is amended by changing Sections 10.2 and 23.1 as
14follows:
 
15    (70 ILCS 210/10.2)
16    Sec. 10.2. Bonding disclosure.
17    (a) Truth in borrowing disclosure. Within 60 business days
18after the issuance of any bonds under this Act, the Authority
19shall disclose the total principal and interest payments to be
20paid on the bonds over the full stated term of the bonds. The
21disclosure also shall include principal and interest payments
22to be made by each fiscal year over the full stated term of the
23bonds and total principal and interest payments to be made by
24each fiscal year on all other outstanding bonds issued under

 

 

SB0262 Engrossed- 140 -LRB100 05183 HLH 15193 b

1this Act over the full stated terms of those bonds. These
2disclosures shall be calculated assuming bonds are not redeemed
3or refunded prior to their stated maturities. Amounts included
4in these disclosures as payment of interest on variable rate
5bonds shall be computed at an interest rate equal to the rate
6at which the variable rate bonds are first set upon issuance,
7plus 2.5%, after taking into account any credits permitted in
8the related indenture or other instrument against the amount of
9such interest for each fiscal year.
10    (b) Bond sale expenses disclosure. Within 60 business days
11after the issuance of any bonds under this Act, the Authority
12shall disclose all costs of issuance on each sale of bonds
13under this Act. The disclosure shall include, as applicable,
14the respective percentages of participation and compensation
15of each underwriter that is a member of the underwriting
16syndicate, legal counsel, financial advisors, and other
17professionals for the bond issue and an identification of all
18costs of issuance paid to minority-owned minority owned
19businesses, women-owned female owned businesses, and
20businesses owned by persons with disabilities. The terms
21"minority-owned minority owned businesses", "women-owned
22female owned businesses", and "business owned by a person with
23a disability" have the meanings given to those terms in the
24Business Enterprise for Minorities, Women Females, and Persons
25with Disabilities Act. In addition, the Authority shall provide
26copies of all contracts under which any costs of issuance are

 

 

SB0262 Engrossed- 141 -LRB100 05183 HLH 15193 b

1paid or to be paid to the Commission on Government Forecasting
2and Accountability within 60 business days after the issuance
3of bonds for which those costs are paid or to be paid. Instead
4of filing a second or subsequent copy of the same contract, the
5Authority may file a statement that specified costs are paid
6under specified contracts filed earlier with the Commission.
7    (c) The disclosures required in this Section shall be
8published by posting the disclosures for no less than 30 days
9on the website of the Authority and shall be available to the
10public upon request. The Authority shall also provide the
11disclosures to the Governor's Office of Management and Budget,
12the Commission on Government Forecasting and Accountability,
13and the General Assembly.
14(Source: P.A. 96-898, eff. 5-27-10.)
 
15    (70 ILCS 210/23.1)  (from Ch. 85, par. 1243.1)
16    Sec. 23.1. Affirmative action.
17    (a) The Authority shall, within 90 days after the effective
18date of this amendatory Act of 1984, establish and maintain an
19affirmative action program designed to promote equal
20employment opportunity and eliminate the effects of past
21discrimination. Such program shall include a plan, including
22timetables where appropriate, which shall specify goals and
23methods for increasing participation by women and minorities in
24employment, including employment related to the planning,
25organization, and staging of the games, by the Authority and by

 

 

SB0262 Engrossed- 142 -LRB100 05183 HLH 15193 b

1parties which contract with the Authority. The Authority shall
2submit a detailed plan with the General Assembly prior to
3September 1 of each year. Such program shall also establish
4procedures and sanctions (including debarment), which the
5Authority shall enforce to ensure compliance with the plan
6established pursuant to this Section and with State and federal
7laws and regulations relating to the employment of women and
8minorities. A determination by the Authority as to whether a
9party to a contract with the Authority has achieved the goals
10or employed the methods for increasing participation by women
11and minorities shall be determined in accordance with the terms
12of such contracts or the applicable provisions of rules and
13regulations of the Authority existing at the time such contract
14was executed, including any provisions for consideration of
15good faith efforts at compliance which the Authority may
16reasonably adopt.
17    (b) The Authority shall adopt and maintain minority-owned
18minority and women-owned female owned business enterprise
19procurement programs under the affirmative action program
20described in subsection (a) for any and all work, including all
21contracting related to the planning, organization, and staging
22of the games, undertaken by the Authority. That work shall
23include, but is not limited to, the purchase of professional
24services, construction services, supplies, materials, and
25equipment. The programs shall establish goals of awarding not
26less than 25% of the annual dollar value of all contracts,

 

 

SB0262 Engrossed- 143 -LRB100 05183 HLH 15193 b

1purchase orders, or other agreements (collectively referred to
2as "contracts") to minority-owned minority owned businesses
3and 5% of the annual dollar value of all contracts to
4women-owned female owned businesses. Without limiting the
5generality of the foregoing, the programs shall require in
6connection with the prequalification or consideration of
7vendors for professional service contracts, construction
8contracts, and contracts for supplies, materials, equipment,
9and services that each proposer or bidder submit as part of his
10or her proposal or bid a commitment detailing how he or she
11will expend 25% or more of the dollar value of his or her
12contracts with one or more minority-owned minority owned
13businesses and 5% or more of the dollar value with one or more
14women-owned female owned businesses. Bids or proposals that do
15not include such detailed commitments are not responsive and
16shall be rejected unless the Authority deems it appropriate to
17grant a waiver of these requirements. In addition the Authority
18may, in connection with the selection of providers of
19professional services, reserve the right to select a
20minority-owned minority or women-owned female owned business
21or businesses to fulfill the commitment to minority and woman
22female business participation. The commitment to minority and
23woman female business participation may be met by the
24contractor or professional service provider's status as a
25minority-owned minority or women-owned female owned business,
26by joint venture or by subcontracting a portion of the work

 

 

SB0262 Engrossed- 144 -LRB100 05183 HLH 15193 b

1with or purchasing materials for the work from one or more such
2businesses, or by any combination thereof. Each contract shall
3require the contractor or provider to submit a certified
4monthly report detailing the status of that contractor or
5provider's compliance with the Authority's minority-owned
6minority and women-owned female owned business enterprise
7procurement program. The Authority, after reviewing the
8monthly reports of the contractors and providers, shall compile
9a comprehensive report regarding compliance with this
10procurement program and file it quarterly with the General
11Assembly. If, in connection with a particular contract, the
12Authority determines that it is impracticable or excessively
13costly to obtain minority-owned minority or women-owned female
14owned businesses to perform sufficient work to fulfill the
15commitment required by this subsection, the Authority shall
16reduce or waive the commitment in the contract, as may be
17appropriate. The Authority shall establish rules and
18regulations setting forth the standards to be used in
19determining whether or not a reduction or waiver is
20appropriate. The terms "minority-owned minority owned
21business" and "women-owned female owned business" have the
22meanings given to those terms in the Business Enterprise for
23Minorities, Women Females, and Persons with Disabilities Act.
24    (c) The Authority shall adopt and maintain an affirmative
25action program in connection with the hiring of minorities and
26women on the Expansion Project and on any and all construction

 

 

SB0262 Engrossed- 145 -LRB100 05183 HLH 15193 b

1projects, including all contracting related to the planning,
2organization, and staging of the games, undertaken by the
3Authority. The program shall be designed to promote equal
4employment opportunity and shall specify the goals and methods
5for increasing the participation of minorities and women in a
6representative mix of job classifications required to perform
7the respective contracts awarded by the Authority.
8    (d) In connection with the Expansion Project, the Authority
9shall incorporate the following elements into its
10minority-owned minority and women-owned female owned business
11procurement programs to the extent feasible: (1) a major
12contractors program that permits minority-owned minority owned
13businesses and women-owned female owned businesses to bear
14significant responsibility and risk for a portion of the
15project; (2) a mentor/protege program that provides financial,
16technical, managerial, equipment, and personnel support to
17minority-owned minority owned businesses and women-owned
18female owned businesses; (3) an emerging firms program that
19includes minority-owned minority owned businesses and
20women-owned female owned businesses that would not otherwise
21qualify for the project due to inexperience or limited
22resources; (4) a small projects program that includes
23participation by smaller minority-owned minority owned
24businesses and women-owned female owned businesses on jobs
25where the total dollar value is $5,000,000 or less; and (5) a
26set-aside program that will identify contracts requiring the

 

 

SB0262 Engrossed- 146 -LRB100 05183 HLH 15193 b

1expenditure of funds less than $50,000 for bids to be submitted
2solely by minority-owned minority owned businesses and
3women-owned female owned businesses.
4    (e) The Authority is authorized to enter into agreements
5with contractors' associations, labor unions, and the
6contractors working on the Expansion Project to establish an
7Apprenticeship Preparedness Training Program to provide for an
8increase in the number of minority and women female journeymen
9and apprentices in the building trades and to enter into
10agreements with Community College District 508 to provide
11readiness training. The Authority is further authorized to
12enter into contracts with public and private educational
13institutions and persons in the hospitality industry to provide
14training for employment in the hospitality industry.
15    (f) McCormick Place Advisory Board. There is created a
16McCormick Place Advisory Board composed as follows: 2 members
17shall be appointed by the Mayor of Chicago; 2 members shall be
18appointed by the Governor; 2 members shall be State Senators
19appointed by the President of the Senate; 2 members shall be
20State Senators appointed by the Minority Leader of the Senate;
212 members shall be State Representatives appointed by the
22Speaker of the House of Representatives; and 2 members shall be
23State Representatives appointed by the Minority Leader of the
24House of Representatives. The terms of all previously appointed
25members of the Advisory Board expire on the effective date of
26this amendatory Act of the 92nd General Assembly. A State

 

 

SB0262 Engrossed- 147 -LRB100 05183 HLH 15193 b

1Senator or State Representative member may appoint a designee
2to serve on the McCormick Place Advisory Board in his or her
3absence.
4    A "member of a minority group" shall mean a person who is a
5citizen or lawful permanent resident of the United States and
6who is any of the following:
7        (1) American Indian or Alaska Native (a person having
8    origins in any of the original peoples of North and South
9    America, including Central America, and who maintains
10    tribal affiliation or community attachment).
11        (2) Asian (a person having origins in any of the
12    original peoples of the Far East, Southeast Asia, or the
13    Indian subcontinent, including, but not limited to,
14    Cambodia, China, India, Japan, Korea, Malaysia, Pakistan,
15    the Philippine Islands, Thailand, and Vietnam).
16        (3) Black or African American (a person having origins
17    in any of the black racial groups of Africa). Terms such as
18    "Haitian" or "Negro" can be used in addition to "Black or
19    African American".
20        (4) Hispanic or Latino (a person of Cuban, Mexican,
21    Puerto Rican, South or Central American, or other Spanish
22    culture or origin, regardless of race).
23        (5) Native Hawaiian or Other Pacific Islander (a person
24    having origins in any of the original peoples of Hawaii,
25    Guam, Samoa, or other Pacific Islands).
26    Members of the McCormick Place Advisory Board shall serve

 

 

SB0262 Engrossed- 148 -LRB100 05183 HLH 15193 b

12-year terms and until their successors are appointed, except
2members who serve as a result of their elected position whose
3terms shall continue as long as they hold their designated
4elected positions. Vacancies shall be filled by appointment for
5the unexpired term in the same manner as original appointments
6are made. The McCormick Place Advisory Board shall elect its
7own chairperson.
8    Members of the McCormick Place Advisory Board shall serve
9without compensation but, at the Authority's discretion, shall
10be reimbursed for necessary expenses in connection with the
11performance of their duties.
12    The McCormick Place Advisory Board shall meet quarterly, or
13as needed, shall produce any reports it deems necessary, and
14shall:
15        (1) Work with the Authority on ways to improve the area
16    physically and economically;
17        (2) Work with the Authority regarding potential means
18    for providing increased economic opportunities to
19    minorities and women produced indirectly or directly from
20    the construction and operation of the Expansion Project;
21        (3) Work with the Authority to minimize any potential
22    impact on the area surrounding the McCormick Place
23    Expansion Project, including any impact on minority-owned
24    minority or women-owned female owned businesses, resulting
25    from the construction and operation of the Expansion
26    Project;

 

 

SB0262 Engrossed- 149 -LRB100 05183 HLH 15193 b

1        (4) Work with the Authority to find candidates for
2    building trades apprenticeships, for employment in the
3    hospitality industry, and to identify job training
4    programs;
5        (5) Work with the Authority to implement the provisions
6    of subsections (a) through (e) of this Section in the
7    construction of the Expansion Project, including the
8    Authority's goal of awarding not less than 25% and 5% of
9    the annual dollar value of contracts to minority-owned
10    minority and women-owned female owned businesses, the
11    outreach program for minorities and women, and the
12    mentor/protege program for providing assistance to
13    minority-owned minority and women-owned female owned
14    businesses.
15    (g) The Authority shall comply with subsection (e) of
16Section 5-42 of the Olympic Games and Paralympic Games (2016)
17Law. For purposes of this Section, the term "games" has the
18meaning set forth in the Olympic Games and Paralympic Games
19(2016) Law.
20(Source: P.A. 96-7, eff. 4-3-09; 97-396, eff. 1-1-12.)
 
21    Section 105. The Illinois Sports Facilities Authority Act
22is amended by changing Section 9 as follows:
 
23    (70 ILCS 3205/9)  (from Ch. 85, par. 6009)
24    Sec. 9. Duties. In addition to the powers set forth

 

 

SB0262 Engrossed- 150 -LRB100 05183 HLH 15193 b

1elsewhere in this Act, subject to the terms of any agreements
2with the holders of the Authority's bonds or notes, the
3Authority shall:
4        (1) Comply with all zoning, building, and land use
5    controls of the municipality within which is located any
6    stadium facility owned by the Authority or for which the
7    Authority provides financial assistance.
8        (2) With respect to a facility owned or to be owned by
9    the Authority, enter or have entered into a management
10    agreement with a tenant of the Authority to operate the
11    facility that requires the tenant to operate the facility
12    for a period at least as long as the term of any bonds
13    issued to finance the development, establishment,
14    construction, erection, acquisition, repair,
15    reconstruction, remodeling, adding to, extension,
16    improvement, equipping, operation, and maintenance of the
17    facility. Such agreement shall contain appropriate and
18    reasonable provisions with respect to termination, default
19    and legal remedies.
20        (3) With respect to a facility owned or to be owned by
21    a governmental owner other than the Authority, enter into
22    an assistance agreement with either a governmental owner of
23    a facility or its tenant, or both, that requires the
24    tenant, or if the tenant is not a party to the assistance
25    agreement requires the governmental owner to enter into an
26    agreement with the tenant that requires the tenant to use

 

 

SB0262 Engrossed- 151 -LRB100 05183 HLH 15193 b

1    the facility for a period at least as long as the term of
2    any bonds issued to finance the reconstruction,
3    renovation, remodeling, extension or improvement of all or
4    substantially all of the facility.
5        (4) Create and maintain a separate financial reserve
6    for repair and replacement of capital assets of any
7    facility owned by the Authority or for which the Authority
8    provides financial assistance and deposit into this
9    reserve not less than $1,000,000 per year for each such
10    facility beginning at such time as the Authority and the
11    tenant, or the Authority and a governmental owner of a
12    facility, as applicable, shall agree.
13        (5) In connection with prequalification of general
14    contractors for the construction of a new stadium facility
15    or the reconstruction, renovation, remodeling, extension,
16    or improvement of all or substantially all of an existing
17    facility, the Authority shall require submission of a
18    commitment detailing how the general contractor will
19    expend 25% or more of the dollar value of the general
20    contract with one or more minority-owned businesses
21    minority business enterprises and 5% or more of the dollar
22    value with one or more women-owned businesses female
23    business enterprises. This commitment may be met by
24    contractor's status as a minority-owned businesses
25    minority business enterprise or women-owned businesses
26    female business enterprise, by a joint venture or by

 

 

SB0262 Engrossed- 152 -LRB100 05183 HLH 15193 b

1    subcontracting a portion of the work with or by purchasing
2    materials for the work from one or more such businesses
3    enterprises, or by any combination thereof. Any contract
4    with the general contractor for construction of the new
5    stadium facility and any contract for the reconstruction,
6    renovation, remodeling, adding to, extension or
7    improvement of all or substantially all of an existing
8    facility shall require the general contractor to meet the
9    foregoing obligations and shall require monthly reporting
10    to the Authority with respect to the status of the
11    implementation of the contractor's affirmative action plan
12    and compliance with that plan. This report shall be filed
13    with the General Assembly. The Authority shall establish
14    and maintain an affirmative action program designed to
15    promote equal employment opportunity which specifies the
16    goals and methods for increasing participation by
17    minorities and women in a representative mix of job
18    classifications required to perform the respective
19    contracts. The Authority shall file a report before March 1
20    of each year with the General Assembly detailing its
21    implementation of this paragraph. The terms
22    "minority-owned businesses", "women-owned businesses", and
23    "business owned by a person with a disability" have the
24    meanings given to those terms The terms "minority business
25    enterprise" and "female business enterprise" shall have
26    the same meanings as "minority owned business" and "female

 

 

SB0262 Engrossed- 153 -LRB100 05183 HLH 15193 b

1    owned business", respectively, as defined in the Business
2    Enterprise for Minorities, Women Females, and Persons with
3    Disabilities Act.
4        (6) Provide for the construction of any new facility
5    pursuant to one or more contracts which require delivery of
6    a completed facility at a fixed maximum price to be insured
7    or guaranteed by a third party determined by the Authority
8    to be financially capable of causing completion of such
9    construction of the new facility.
10    In connection with any assistance agreement with a
11governmental owner that provides financial assistance for a
12facility to be used by a National Football League team, the
13assistance agreement shall provide that the Authority or its
14agent shall enter into the contract or contracts for the design
15and construction services or design/build services for such
16facility and thereafter transfer its rights and obligations
17under the contract or contracts to the governmental owner of
18the facility. In seeking parties to provide design and
19construction services or design/build services with respect to
20such facility, the Authority may use such procurement
21procedures as it may determine, including, without limitation,
22the selection of design professionals and construction
23managers or design/builders as may be required by a team that
24is at risk, in whole or in part, for the cost of design and
25construction of the facility.
26    An assistance agreement may not provide, directly or

 

 

SB0262 Engrossed- 154 -LRB100 05183 HLH 15193 b

1indirectly, for the payment to the Chicago Park District of
2more than a total of $10,000,000 on account of the District's
3loss of property or revenue in connection with the renovation
4of a facility pursuant to the assistance agreement.
5(Source: P.A. 91-935, eff. 6-1-01; 92-16, eff. 6-28-01.)
 
6    Section 110. The Downstate Illinois Sports Facilities
7Authority Act is amended by changing Section 40 as follows:
 
8    (70 ILCS 3210/40)
9    Sec. 40. Duties.
10    (a) In addition to the powers set forth elsewhere in this
11Act, subject to the terms of any agreements with the holders of
12the Authority's evidences of indebtedness, the Authority shall
13do the following:
14        (1) Comply with all zoning, building, and land use
15    controls of the municipality within which is located any
16    stadium facility owned by the Authority or for which the
17    Authority provides financial assistance.
18        (2) Enter into a loan agreement with an owner of a
19    facility to finance the acquisition, construction,
20    maintenance, or rehabilitation of the facility. The
21    agreement shall contain appropriate and reasonable
22    provisions with respect to termination, default, and legal
23    remedies. The loan may be at below-market interest rates.
24        (3) Create and maintain a financial reserve for repair

 

 

SB0262 Engrossed- 155 -LRB100 05183 HLH 15193 b

1    and replacement of capital assets.
2    (b) In a loan agreement for the construction of a new
3facility, in connection with prequalification of general
4contractors for construction of the facility, the Authority
5shall require that the owner of the facility require submission
6of a commitment detailing how the general contractor will
7expend 25% or more of the dollar value of the general contract
8with one or more minority-owned businesses minority business
9enterprises and 5% or more of the dollar value with one or more
10women-owned businesses female business enterprises. This
11commitment may be met by contractor's status as a
12minority-owned businesses minority business enterprise or
13women-owned businesses female business enterprise, by a joint
14venture, or by subcontracting a portion of the work with or by
15purchasing materials for the work from one or more such
16businesses enterprises, or by any combination thereof. Any
17contract with the general contractor for construction of the
18new facility shall require the general contractor to meet the
19foregoing obligations and shall require monthly reporting to
20the Authority with respect to the status of the implementation
21of the contractor's affirmative action plan and compliance with
22that plan. This report shall be filed with the General
23Assembly. The Authority shall require that the facility owner
24establish and maintain an affirmative action program designed
25to promote equal employment opportunity and that specifies the
26goals and methods for increasing participation by minorities

 

 

SB0262 Engrossed- 156 -LRB100 05183 HLH 15193 b

1and women in a representative mix of job classifications
2required to perform the respective contracts. The Authority
3shall file a report before March 1 of each year with the
4General Assembly detailing its implementation of this
5subsection. The terms "minority-owned businesses minority
6business enterprise" and "women-owned businesses female
7business enterprise" have the meanings provided in the Business
8Enterprise for Minorities, Women Females, and Persons with
9Disabilities Act.
10    (c) With respect to a facility owned or to be owned by the
11Authority, enter or have entered into a management agreement
12with a tenant of the Authority to operate the facility that
13requires the tenant to operate the facility for a period at
14least as long as the term of any bonds issued to finance the
15development, establishment, construction, erection,
16acquisition, repair, reconstruction, remodeling, adding to,
17extension, improvement, equipping, operation, and maintenance
18of the facility. Such agreement shall contain appropriate and
19reasonable provisions with respect to termination, default,
20and legal remedies.
21(Source: P.A. 93-227, eff. 1-1-04.)
 
22    Section 115. The Metropolitan Transit Authority Act is
23amended by changing Section 12c as follows:
 
24    (70 ILCS 3605/12c)

 

 

SB0262 Engrossed- 157 -LRB100 05183 HLH 15193 b

1    Sec. 12c. Retiree Benefits Bonds and Notes.
2    (a) In addition to all other bonds or notes that it is
3authorized to issue, the Authority is authorized to issue its
4bonds or notes for the purposes of providing funds for the
5Authority to make the deposits described in Section 12c(b)(1)
6and (2), for refunding any bonds authorized to be issued under
7this Section, as well as for the purposes of paying costs of
8issuance, obtaining bond insurance or other credit enhancement
9or liquidity facilities, paying costs of obtaining related
10swaps as authorized in the Bond Authorization Act ("Swaps"),
11providing a debt service reserve fund, paying Debt Service (as
12defined in paragraph (i) of this Section 12c), and paying all
13other costs related to any such bonds or notes.
14    (b)(1) After its receipt of a certified copy of a report of
15the Auditor General of the State of Illinois meeting the
16requirements of Section 3-2.3 of the Illinois State Auditing
17Act, the Authority may issue $1,348,550,000 aggregate original
18principal amount of bonds and notes. After payment of the costs
19of issuance and necessary deposits to funds and accounts
20established with respect to debt service, the net proceeds of
21such bonds or notes shall be deposited only in the Retirement
22Plan for Chicago Transit Authority Employees and used only for
23the purposes required by Section 22-101 of the Illinois Pension
24Code. Provided that no less than $1,110,500,000 has been
25deposited in the Retirement Plan, remaining proceeds of bonds
26issued under this subparagraph (b)(1) may be used to pay costs

 

 

SB0262 Engrossed- 158 -LRB100 05183 HLH 15193 b

1of issuance and make necessary deposits to funds and accounts
2with respect to debt service for bonds and notes issued under
3this subparagraph or subparagraph (b)(2).
4    (2) After its receipt of a certified copy of a report of
5the Auditor General of the State of Illinois meeting the
6requirements of Section 3-2.3 of the Illinois State Auditing
7Act, the Authority may issue $639,680,000 aggregate original
8principal amount of bonds and notes. After payment of the costs
9of issuance and necessary deposits to funds and accounts
10established with respect to debt service, the net proceeds of
11such bonds or notes shall be deposited only in the Retiree
12Health Care Trust and used only for the purposes required by
13Section 22-101B of the Illinois Pension Code. Provided that no
14less than $528,800,000 has been deposited in the Retiree Health
15Care Trust, remaining proceeds of bonds issued under this
16subparagraph (b)(2) may be used to pay costs of issuance and
17make necessary deposits to funds and accounts with respect to
18debt service for bonds and notes issued under this subparagraph
19or subparagraph (b)(1).
20    (3) In addition, refunding bonds are authorized to be
21issued for the purpose of refunding outstanding bonds or notes
22issued under this Section 12c.
23    (4) The bonds or notes issued under 12c(b)(1) shall be
24issued as soon as practicable after the Auditor General issues
25the report provided in Section 3-2.3(b) of the Illinois State
26Auditing Act. The bonds or notes issued under 12c(b)(2) shall

 

 

SB0262 Engrossed- 159 -LRB100 05183 HLH 15193 b

1be issued as soon as practicable after the Auditor General
2issues the report provided in Section 3-2.3(c) of the Illinois
3State Auditing Act.
4    (5) With respect to bonds and notes issued under
5subparagraph (b), scheduled aggregate annual payments of
6interest or deposits into funds and accounts established for
7the purpose of such payment shall commence within one year
8after the bonds and notes are issued. With respect to principal
9and interest, scheduled aggregate annual payments of principal
10and interest or deposits into funds and accounts established
11for the purpose of such payment shall be not less than 70% in
122009, 80% in 2010, and 90% in 2011, respectively, of scheduled
13payments or deposits of principal and interest in 2012 and
14shall be substantially equal beginning in 2012 and each year
15thereafter. For purposes of this subparagraph (b),
16"substantially equal" means that debt service in any full year
17after calendar year 2011 is not more than 115% of debt service
18in any other full year after calendar year 2011 during the term
19of the bonds or notes. For the purposes of this subsection (b),
20with respect to bonds and notes that bear interest at a
21variable rate, interest shall be assumed at a rate equal to the
22rate for United States Treasury Securities - State and Local
23Government Series for the same maturity, plus 75 basis points.
24If the Authority enters into a Swap with a counterparty
25requiring the Authority to pay a fixed interest rate on a
26notional amount, and the Authority has made a determination

 

 

SB0262 Engrossed- 160 -LRB100 05183 HLH 15193 b

1that such Swap was entered into for the purpose of providing
2substitute interest payments for variable interest rate bonds
3or notes of a particular maturity or maturities in a principal
4amount equal to the notional amount of the Swap, then during
5the term of the Swap for purposes of any calculation of
6interest payable on such bonds or notes, the interest rate on
7the bonds or notes of such maturity or maturities shall be
8determined as if such bonds or notes bore interest at the fixed
9interest rate payable by the Authority under such Swap.
10    (6) No bond or note issued under this Section 12c shall
11mature later than December 31, 2040.
12    (c) The Chicago Transit Board shall provide for the
13issuance of bonds or notes as authorized in this Section 12c by
14the adoption of an ordinance. The ordinance, together with the
15bonds or notes, shall constitute a contract among the
16Authority, the owners from time to time of the bonds or notes,
17any bond trustee with respect to the bonds or notes, any
18related credit enhancer and any provider of any related Swaps.
19    (d) The Authority is authorized to cause the proceeds of
20the bonds or notes, and any interest or investment earnings on
21the bonds or notes, and of any Swaps, to be invested until the
22proceeds and any interest or investment earnings have been
23deposited with the Retirement Plan or the Retiree Health Care
24Trust.
25    (e) Bonds or notes issued pursuant to this Section 12c may
26be general obligations of the Authority, to which shall be

 

 

SB0262 Engrossed- 161 -LRB100 05183 HLH 15193 b

1pledged the full faith and credit of the Authority, or may be
2obligations payable solely from particular sources of funds all
3as may be provided in the authorizing ordinance. The
4authorizing ordinance for the bonds and notes, whether or not
5general obligations of the Authority, may provide for the Debt
6Service (as defined in paragraph (i) of this Section 12c) to
7have a claim for payment from particular sources of funds,
8including, without limitation, amounts to be paid to the
9Authority or a bond trustee. The authorizing ordinance may
10provide for the means by which the bonds or notes (and any
11related Swaps) may be secured, which may include, a pledge of
12any revenues or funds of the Authority from whatever source
13which may by law be utilized for paying Debt Service. In
14addition to any other security, upon the written approval of
15the Regional Transportation Authority by the affirmative vote
16of 12 of its then Directors, the ordinance may provide a
17specific pledge or assignment of and lien on or security
18interest in amounts to be paid to the Authority by the Regional
19Transportation Authority and direct payment thereof to the bond
20trustee for payment of Debt Service with respect to the bonds
21or notes, subject to the provisions of existing lease
22agreements of the Authority with any public building
23commission. The authorizing ordinance may also provide a
24specific pledge or assignment of and lien on or security
25interest in and direct payment to the trustee of all or a
26portion of the moneys otherwise payable to the Authority from

 

 

SB0262 Engrossed- 162 -LRB100 05183 HLH 15193 b

1the City of Chicago pursuant to an intergovernmental agreement
2with the Authority to provide financial assistance to the
3Authority. Any such pledge, assignment, lien or security
4interest for the benefit of owners of bonds or notes shall be
5valid and binding from the time the bonds or notes are issued,
6without any physical delivery or further act, and shall be
7valid and binding as against and prior to the claims of all
8other parties having claims of any kind against the Authority
9or any other person, irrespective of whether such other parties
10have notice of such pledge, assignment, lien or security
11interest, all as provided in the Local Government Debt Reform
12Act, as it may be amended from time to time. The bonds or notes
13of the Authority issued pursuant to this Section 12c shall have
14such priority of payment and as to their claim for payment from
15particular sources of funds, including their priority with
16respect to obligations of the Authority issued under other
17Sections of this Act, all as shall be provided in the
18ordinances authorizing the issuance of the bonds or notes. The
19ordinance authorizing the issuance of any bonds or notes under
20this Section may provide for the creation of, deposits in, and
21regulation and disposition of sinking fund or reserve accounts
22relating to those bonds or notes and related agreements. The
23ordinance authorizing the issuance of any such bonds or notes
24authorized under this Section 12c may contain provisions for
25the creation of a separate fund to provide for the payment of
26principal of and interest on those bonds or notes and related

 

 

SB0262 Engrossed- 163 -LRB100 05183 HLH 15193 b

1agreements. The ordinance may also provide limitations on the
2issuance of additional bonds or notes of the Authority.
3    (f) Bonds or notes issued under this Section 12c shall not
4constitute an indebtedness of the Regional Transportation
5Authority, the State of Illinois, or of any other political
6subdivision of or municipality within the State, except the
7Authority.
8    (g) The ordinance of the Chicago Transit Board authorizing
9the issuance of bonds or notes pursuant to this Section 12c may
10provide for the appointment of a corporate trustee (which may
11be any trust company or bank having the powers of a trust
12company within Illinois) with respect to bonds or notes issued
13pursuant to this Section 12c. The ordinance shall prescribe the
14rights, duties, and powers of the trustee to be exercised for
15the benefit of the Authority and the protection of the owners
16of bonds or notes issued pursuant to this Section 12c. The
17ordinance may provide for the trustee to hold in trust, invest
18and use amounts in funds and accounts created as provided by
19the ordinance with respect to the bonds or notes in accordance
20with this Section 12c. The Authority may apply, as it shall
21determine, any amounts received upon the sale of the bonds or
22notes to pay any Debt Service on the bonds or notes. The
23ordinance may provide for a trust indenture to set forth terms
24of, sources of payment for and security for the bonds and
25notes.
26    (h) The State of Illinois pledges to and agrees with the

 

 

SB0262 Engrossed- 164 -LRB100 05183 HLH 15193 b

1owners of the bonds or notes issued pursuant to Section 12c
2that the State of Illinois will not limit the powers vested in
3the Authority by this Act to pledge and assign its revenues and
4funds as security for the payment of the bonds or notes, or
5vested in the Regional Transportation Authority by the Regional
6Transportation Authority Act or this Act, so as to materially
7impair the payment obligations of the Authority under the terms
8of any contract made by the Authority with those owners or to
9materially impair the rights and remedies of those owners until
10those bonds or notes, together with interest and any redemption
11premium, and all costs and expenses in connection with any
12action or proceedings by or on behalf of such owners are fully
13met and discharged. The Authority is authorized to include
14these pledges and agreements of the State of Illinois in any
15contract with owners of bonds or notes issued pursuant to this
16Section 12c.
17    (i) For purposes of this Section, "Debt Service" with
18respect to bonds or notes includes, without limitation,
19principal (at maturity or upon mandatory redemption),
20redemption premium, interest, periodic, upfront, and
21termination payments on Swaps, fees for bond insurance or other
22credit enhancement, liquidity facilities, the funding of bond
23or note reserves, bond trustee fees, and all other costs of
24providing for the security or payment of the bonds or notes.
25    (j) The Authority shall adopt a procurement program with
26respect to contracts relating to the following service

 

 

SB0262 Engrossed- 165 -LRB100 05183 HLH 15193 b

1providers in connection with the issuance of debt for the
2benefit of the Retirement Plan for Chicago Transit Authority
3Employees: underwriters, bond counsel, financial advisors, and
4accountants. The program shall include goals for the payment of
5not less than 30% of the total dollar value of the fees from
6these contracts to minority-owned minority owned businesses
7and women-owned female owned businesses as defined in the
8Business Enterprise for Minorities, Women Females, and Persons
9with Disabilities Act. The Authority shall conduct outreach to
10minority-owned minority owned businesses and women-owned
11female owned businesses. Outreach shall include, but is not
12limited to, advertisements in periodicals and newspapers,
13mailings, and other appropriate media. The Authority shall
14submit to the General Assembly a comprehensive report that
15shall include, at a minimum, the details of the procurement
16plan, outreach efforts, and the results of the efforts to
17achieve goals for the payment of fees. The service providers
18selected by the Authority pursuant to such program shall not be
19subject to approval by the Regional Transportation Authority,
20and the Regional Transportation Authority's approval pursuant
21to subsection (e) of this Section 12c related to the issuance
22of debt shall not be based in any way on the service providers
23selected by the Authority pursuant to this Section.
24    (k) No person holding an elective office in this State,
25holding a seat in the General Assembly, serving as a director,
26trustee, officer, or employee of the Regional Transportation

 

 

SB0262 Engrossed- 166 -LRB100 05183 HLH 15193 b

1Authority or the Chicago Transit Authority, including the
2spouse or minor child of that person, may receive a legal,
3banking, consulting, or other fee related to the issuance of
4any bond issued by the Chicago Transit Authority pursuant to
5this Section.
6(Source: P.A. 95-708, eff. 1-18-08.)
 
7    Section 120. The School Code is amended by changing Section
810-20.44 as follows:
 
9    (105 ILCS 5/10-20.44)
10    Sec. 10-20.44. Report on contracts.
11    (a) This Section applies to all school districts, including
12a school district organized under Article 34 of this Code.
13    (b) A school board must list on the district's Internet
14website, if any, all contracts over $25,000 and any contract
15that the school board enters into with an exclusive bargaining
16representative.
17    (c) Each year, in conjunction with the submission of the
18Statement of Affairs to the State Board of Education prior to
19December 1, provided for in Section 10-17, each school district
20shall submit to the State Board of Education an annual report
21on all contracts over $25,000 awarded by the school district
22during the previous fiscal year. The report shall include at
23least the following:
24        (1) the total number of all contracts awarded by the

 

 

SB0262 Engrossed- 167 -LRB100 05183 HLH 15193 b

1    school district;
2        (2) the total value of all contracts awarded;
3        (3) the number of contracts awarded to minority-owned
4    minority owned businesses, women-owned female owned
5    businesses, and businesses owned by persons with
6    disabilities, as defined in the Business Enterprise for
7    Minorities, Women, Females and Persons with Disabilities
8    Act, and locally owned businesses; and
9        (4) the total value of contracts awarded to
10    minority-owned minority owned businesses, women-owned
11    female owned businesses, and businesses owned by persons
12    with disabilities, as defined in the Business Enterprise
13    for Minorities, Women, Females and Persons with
14    Disabilities Act, and locally owned businesses.
15    The report shall be made available to the public, including
16publication on the school district's Internet website, if any.
17(Source: P.A. 95-707, eff. 1-11-08; 96-328, eff. 8-11-09.)
 
18    Section 125. The Public University Energy Conservation Act
19is amended by changing Sections 3 and 5-10 as follows:
 
20    (110 ILCS 62/3)
21    Sec. 3. Applicable laws. Other State laws and related
22administrative requirements apply to this Act, including, but
23not limited to, the following laws and related administrative
24requirements: the Illinois Human Rights Act, the Prevailing

 

 

SB0262 Engrossed- 168 -LRB100 05183 HLH 15193 b

1Wage Act, the Public Construction Bond Act, the Public Works
2Preference Act (repealed on June 16, 2010 by Public Act
396-929), the Employment of Illinois Workers on Public Works
4Act, the Freedom of Information Act, the Open Meetings Act, the
5Illinois Architecture Practice Act of 1989, the Professional
6Engineering Practice Act of 1989, the Structural Engineering
7Practice Act of 1989, the Architectural, Engineering, and Land
8Surveying Qualifications Based Selection Act, the Public
9Contract Fraud Act, the Business Enterprise for Minorities,
10Women Females, and Persons with Disabilities Act, and the
11Public Works Employment Discrimination Act.
12(Source: P.A. 97-333, eff. 8-12-11.)
 
13    (110 ILCS 62/5-10)
14    Sec. 5-10. Energy conservation measure.
15    (a) "Energy conservation measure" means any improvement,
16repair, alteration, or betterment of any building or facility,
17subject to all applicable building codes, owned or operated by
18a public university or any equipment, fixture, or furnishing to
19be added to or used in any such building or facility that is
20designed to reduce energy consumption or operating costs, and
21may include, without limitation, one or more of the following:
22        (1) Insulation of the building structure or systems
23    within the building.
24        (2) Storm windows or doors, caulking or
25    weatherstripping, multiglazed windows or doors, heat

 

 

SB0262 Engrossed- 169 -LRB100 05183 HLH 15193 b

1    absorbing or heat reflective glazed and coated window or
2    door systems, additional glazing, reductions in glass
3    area, or other window and door system modifications that
4    reduce energy consumption.
5        (3) Automated or computerized energy control systems.
6        (4) Heating, ventilating, or air conditioning system
7    modifications or replacements.
8        (5) Replacement or modification of lighting fixtures
9    to increase the energy efficiency of the lighting system
10    without increasing the overall illumination of a facility,
11    unless an increase in illumination is necessary to conform
12    to the applicable State or local building code for the
13    lighting system after the proposed modifications are made.
14        (6) Energy recovery systems.
15        (7) Energy conservation measures that provide
16    long-term operating cost reductions.
17    (b) From the effective date of this amendatory Act of the
1896th General Assembly until January 1, 2015, "energy
19conservation measure" includes a renewable energy center pilot
20project at Eastern Illinois University, provided that:
21        (1) the University signs a partnership contract with a
22    qualified energy conservation measure provider as provided
23    in this Act;
24        (2) the University has responsibility for the
25    qualified provider's actions with regard to applicable
26    laws;

 

 

SB0262 Engrossed- 170 -LRB100 05183 HLH 15193 b

1        (3) the University obtains a performance bond in
2    accordance with this Act;
3        (4) the University and the qualified provider follow
4    all aspects of the Prevailing Wage Act as provided by this
5    Act;
6        (5) the University and the qualified provider use an
7    approved list of firms from the Capital Development Board
8    (CDB), unless the University requires services that are not
9    typically performed by the firms on CDB's list;
10        (6) the University provides monthly progress reports
11    to the Procurement Policy Board, and the University allows
12    a representative from CDB to monitor the project, provided
13    that such involvement is at no cost to the University;
14        (7) the University requires the qualified provider to
15    follow the provisions of the Business Enterprise for
16    Minorities, Women Females, and Persons with Disabilities
17    Act and the Public Works Employment Discrimination Act as
18    provided in this Act;
19        (8) the University agrees to award new building
20    construction work to a responsible bidder, as defined in
21    Section 30-22 of the Illinois Procurement Code;
22        (9) the University includes in its contract with the
23    qualified provider a requirement that the qualified
24    provider name the sub-contractors that it will use, and the
25    qualified provider may not change these without the
26    University's written approval;

 

 

SB0262 Engrossed- 171 -LRB100 05183 HLH 15193 b

1        (10) the University follows, to the extent possible,
2    the Design-Build Procurement Act for construction of the
3    project, taking into consideration the current status of
4    the project; for purposes of this Act, the definition of
5    "State construction agency" in the Design-Build
6    Procurement Act means Eastern Illinois University for the
7    purpose of this project;
8        (11) the University follows, to the extent possible,
9    the Architectural, Engineering, and Land Surveying
10    Qualifications Based Selection Act;
11        (12) the University requires all engineering,
12    architecture, and design work related to the installation
13    or modification of facilities be performed by design
14    professionals licensed by the State of Illinois and
15    professional design firms registered in the State of
16    Illinois; and
17        (13) the University produces annual reports and a final
18    report describing the project upon completion and files the
19    reports with the Procurement Policy Board, CDB, and the
20    General Assembly.
21    The provisions of this subsection (b), other than this
22sentence, are inoperative after January 1, 2015.
23(Source: P.A. 96-16, eff. 6-22-09.)
 
24    (110 ILCS 320/1.1 rep.)
25    Section 130. The University of Illinois at Chicago Act is

 

 

SB0262 Engrossed- 172 -LRB100 05183 HLH 15193 b

1amended by repealing Section 1.1.
 
2    Section 135. The Illinois State University Law is amended
3by changing Section 20-115 as follows:
 
4    (110 ILCS 675/20-115)
5    Sec. 20-115. Illinois Institute for Entrepreneurship
6Education.
7    (a) There is created, effective July 1, 1997, within the
8State at Illinois State University, the Illinois Institute for
9Entrepreneurship Education, hereinafter referred to as the
10Institute.
11    (b) The Institute created under this Section shall commence
12its operations on July 1, 1997 and shall have a board composed
13of 15 members representative of education, commerce and
14industry, government, or labor, appointed as follows: 2 members
15shall be appointees of the Governor, one of whom shall be a
16minority or woman female person as defined in Section 2 of the
17Business Enterprise for Minorities, Women Females, and Persons
18with Disabilities Act; one member shall be an appointee of the
19President of the Senate; one member shall be an appointee of
20the Minority Leader of the Senate; one member shall be an
21appointee of the Speaker of the House of Representatives; one
22member shall be an appointee of the Minority Leader of the
23House of Representatives; 2 members shall be appointees of
24Illinois State University; one member shall be an appointee of

 

 

SB0262 Engrossed- 173 -LRB100 05183 HLH 15193 b

1the Board of Higher Education; one member shall be an appointee
2of the State Board of Education; one member shall be an
3appointee of the Department of Commerce and Economic
4Opportunity; one member shall be an appointee of the Illinois
5chapter of Economics America; and 3 members shall be appointed
6by majority vote of the other 12 appointed members to represent
7business owner-entrepreneurs. Each member shall have expertise
8and experience in the area of entrepreneurship education,
9including small business and entrepreneurship. The majority of
10voting members must be from the private sector. The members
11initially appointed to the board of the Institute created under
12this Section shall be appointed to take office on July 1, 1997
13and shall by lot determine the length of their respective terms
14as follows: 5 members shall be selected by lot to serve terms
15of one year, 5 members shall be selected by lot to serve terms
16of 2 years, and 5 members shall be selected by lot to serve
17terms of 3 years. Subsequent appointees shall each serve terms
18of 3 years. The board shall annually select a chairperson from
19among its members. Each board member shall serve without
20compensation but shall be reimbursed for expenses incurred in
21the performance of his or her duties.
22    (c) The purpose of the Institute shall be to foster the
23growth and development of entrepreneurship education in the
24State of Illinois. The Institute shall help remedy the
25deficiencies in the preparation of entrepreneurship education
26teachers, increase the quality and quantity of

 

 

SB0262 Engrossed- 174 -LRB100 05183 HLH 15193 b

1entrepreneurship education programs, improve instructional
2materials, and prepare personnel to serve as leaders and
3consultants in the field of entrepreneurship education and
4economic development. The Institute shall promote
5entrepreneurship as a career option, promote and support the
6development of innovative entrepreneurship education materials
7and delivery systems, promote business, industry, and
8education partnerships, promote collaboration and involvement
9in entrepreneurship education programs, encourage and support
10in-service and preservice teacher education programs within
11various educational systems, and develop and distribute
12relevant materials. The Institute shall provide a framework
13under which the public and private sectors may work together
14toward entrepreneurship education goals. These goals shall be
15achieved by bringing together programs that have an impact on
16entrepreneurship education to achieve coordination among
17agencies and greater efficiency in the expenditure of funds.
18    (d) Beginning July 1, 1997, the Institute shall have the
19following powers subject to State and Illinois State University
20Board of Trustees regulations and guidelines:
21        (1) To employ and determine the compensation of an
22    executive director and such staff as it deems necessary;
23        (2) To own property and expend and receive funds and
24    generate funds;
25        (3) To enter into agreements with public and private
26    entities in the furtherance of its purpose; and

 

 

SB0262 Engrossed- 175 -LRB100 05183 HLH 15193 b

1        (4) To request and receive the cooperation and
2    assistance of all State departments and agencies in the
3    furtherance of its purpose.
4    (e) The board of the Institute shall be a policy making
5body with the responsibility for planning and developing
6Institute programs. The Institute, through the Board of
7Trustees of Illinois State University, shall annually report to
8the Governor and General Assembly by January 31 as to its
9activities and operations, including its findings and
10recommendations.
11    (f) Beginning on July 1, 1997, the Institute created under
12this Section shall be deemed designated by law as the successor
13to the Illinois Institute for Entrepreneurship Education,
14previously created and existing under Section 2-11.5 of the
15Public Community College Act until its abolition on July 1,
161997 as provided in that Section. On July 1, 1997, all
17financial and other records of the Institute so abolished and
18all of its property, whether real or personal, including but
19not limited to all inventory and equipment, shall be deemed
20transferred by operation of law to the Illinois Institute for
21Entrepreneurship Education created under this Section 20-115.
22The Illinois Institute for Entrepreneurship Education created
23under this Section 20-115 shall have, with respect to the
24predecessor Institute so abolished, all authority, powers, and
25duties of a successor agency under Section 10-15 of the
26Successor Agency Act.

 

 

SB0262 Engrossed- 176 -LRB100 05183 HLH 15193 b

1(Source: P.A. 94-793, eff. 5-19-06.)
 
2    Section 140. The Public Utilities Act is amended by
3changing Section 9-220 as follows:
 
4    (220 ILCS 5/9-220)  (from Ch. 111 2/3, par. 9-220)
5    Sec. 9-220. Rate changes based on changes in fuel costs.
6    (a) Notwithstanding the provisions of Section 9-201, the
7Commission may authorize the increase or decrease of rates and
8charges based upon changes in the cost of fuel used in the
9generation or production of electric power, changes in the cost
10of purchased power, or changes in the cost of purchased gas
11through the application of fuel adjustment clauses or purchased
12gas adjustment clauses. The Commission may also authorize the
13increase or decrease of rates and charges based upon
14expenditures or revenues resulting from the purchase or sale of
15emission allowances created under the federal Clean Air Act
16Amendments of 1990, through such fuel adjustment clauses, as a
17cost of fuel. For the purposes of this paragraph, cost of fuel
18used in the generation or production of electric power shall
19include the amount of any fees paid by the utility for the
20implementation and operation of a process for the
21desulfurization of the flue gas when burning high sulfur coal
22at any location within the State of Illinois irrespective of
23the attainment status designation of such location; but shall
24not include transportation costs of coal (i) except to the

 

 

SB0262 Engrossed- 177 -LRB100 05183 HLH 15193 b

1extent that for contracts entered into on and after the
2effective date of this amendatory Act of 1997, the cost of the
3coal, including transportation costs, constitutes the lowest
4cost for adequate and reliable fuel supply reasonably available
5to the public utility in comparison to the cost, including
6transportation costs, of other adequate and reliable sources of
7fuel supply reasonably available to the public utility, or (ii)
8except as otherwise provided in the next 3 sentences of this
9paragraph. Such costs of fuel shall, when requested by a
10utility or at the conclusion of the utility's next general
11electric rate proceeding, whichever shall first occur, include
12transportation costs of coal purchased under existing coal
13purchase contracts. For purposes of this paragraph "existing
14coal purchase contracts" means contracts for the purchase of
15coal in effect on the effective date of this amendatory Act of
161991, as such contracts may thereafter be amended, but only to
17the extent that any such amendment does not increase the
18aggregate quantity of coal to be purchased under such contract.
19Nothing herein shall authorize an electric utility to recover
20through its fuel adjustment clause any amounts of
21transportation costs of coal that were included in the revenue
22requirement used to set base rates in its most recent general
23rate proceeding. Cost shall be based upon uniformly applied
24accounting principles. Annually, the Commission shall initiate
25public hearings to determine whether the clauses reflect actual
26costs of fuel, gas, power, or coal transportation purchased to

 

 

SB0262 Engrossed- 178 -LRB100 05183 HLH 15193 b

1determine whether such purchases were prudent, and to reconcile
2any amounts collected with the actual costs of fuel, power,
3gas, or coal transportation prudently purchased. In each such
4proceeding, the burden of proof shall be upon the utility to
5establish the prudence of its cost of fuel, power, gas, or coal
6transportation purchases and costs. The Commission shall issue
7its final order in each such annual proceeding for an electric
8utility by December 31 of the year immediately following the
9year to which the proceeding pertains, provided, that the
10Commission shall issue its final order with respect to such
11annual proceeding for the years 1996 and earlier by December
1231, 1998.
13    (b) A public utility providing electric service, other than
14a public utility described in subsections (e) or (f) of this
15Section, may at any time during the mandatory transition period
16file with the Commission proposed tariff sheets that eliminate
17the public utility's fuel adjustment clause and adjust the
18public utility's base rate tariffs by the amount necessary for
19the base fuel component of the base rates to recover the public
20utility's average fuel and power supply costs per kilowatt-hour
21for the 2 most recent years for which the Commission has issued
22final orders in annual proceedings pursuant to subsection (a),
23where the average fuel and power supply costs per kilowatt-hour
24shall be calculated as the sum of the public utility's prudent
25and allowable fuel and power supply costs as found by the
26Commission in the 2 proceedings divided by the public utility's

 

 

SB0262 Engrossed- 179 -LRB100 05183 HLH 15193 b

1actual jurisdictional kilowatt-hour sales for those 2 years.
2Notwithstanding any contrary or inconsistent provisions in
3Section 9-201 of this Act, in subsection (a) of this Section or
4in any rules or regulations promulgated by the Commission
5pursuant to subsection (g) of this Section, the Commission
6shall review and shall by order approve, or approve as
7modified, the proposed tariff sheets within 60 days after the
8date of the public utility's filing. The Commission may modify
9the public utility's proposed tariff sheets only to the extent
10the Commission finds necessary to achieve conformance to the
11requirements of this subsection (b). During the 5 years
12following the date of the Commission's order, but in any event
13no earlier than January 1, 2007, a public utility whose fuel
14adjustment clause has been eliminated pursuant to this
15subsection shall not file proposed tariff sheets seeking, or
16otherwise petition the Commission for, reinstatement of a fuel
17adjustment clause.
18    (c) Notwithstanding any contrary or inconsistent
19provisions in Section 9-201 of this Act, in subsection (a) of
20this Section or in any rules or regulations promulgated by the
21Commission pursuant to subsection (g) of this Section, a public
22utility providing electric service, other than a public utility
23described in subsection (e) or (f) of this Section, may at any
24time during the mandatory transition period file with the
25Commission proposed tariff sheets that establish the rate per
26kilowatt-hour to be applied pursuant to the public utility's

 

 

SB0262 Engrossed- 180 -LRB100 05183 HLH 15193 b

1fuel adjustment clause at the average value for such rate
2during the preceding 24 months, provided that such average rate
3results in a credit to customers' bills, without making any
4revisions to the public utility's base rate tariffs. The
5proposed tariff sheets shall establish the fuel adjustment rate
6for a specific time period of at least 3 years but not more
7than 5 years, provided that the terms and conditions for any
8reinstatement earlier than 5 years shall be set forth in the
9proposed tariff sheets and subject to modification or approval
10by the Commission. The Commission shall review and shall by
11order approve the proposed tariff sheets if it finds that the
12requirements of this subsection are met. The Commission shall
13not conduct the annual hearings specified in the last 3
14sentences of subsection (a) of this Section for the utility for
15the period that the factor established pursuant to this
16subsection is in effect.
17    (d) A public utility providing electric service, or a
18public utility providing gas service may file with the
19Commission proposed tariff sheets that eliminate the public
20utility's fuel or purchased gas adjustment clause and adjust
21the public utility's base rate tariffs to provide for recovery
22of power supply costs or gas supply costs that would have been
23recovered through such clause; provided, that the provisions of
24this subsection (d) shall not be available to a public utility
25described in subsections (e) or (f) of this Section to
26eliminate its fuel adjustment clause. Notwithstanding any

 

 

SB0262 Engrossed- 181 -LRB100 05183 HLH 15193 b

1contrary or inconsistent provisions in Section 9-201 of this
2Act, in subsection (a) of this Section, or in any rules or
3regulations promulgated by the Commission pursuant to
4subsection (g) of this Section, the Commission shall review and
5shall by order approve, or approve as modified in the
6Commission's order, the proposed tariff sheets within 240 days
7after the date of the public utility's filing. The Commission's
8order shall approve rates and charges that the Commission,
9based on information in the public utility's filing or on the
10record if a hearing is held by the Commission, finds will
11recover the reasonable, prudent and necessary jurisdictional
12power supply costs or gas supply costs incurred or to be
13incurred by the public utility during a 12 month period found
14by the Commission to be appropriate for these purposes,
15provided, that such period shall be either (i) a 12 month
16historical period occurring during the 15 months ending on the
17date of the public utility's filing, or (ii) a 12 month future
18period ending no later than 15 months following the date of the
19public utility's filing. The public utility shall include with
20its tariff filing information showing both (1) its actual
21jurisdictional power supply costs or gas supply costs for a 12
22month historical period conforming to (i) above and (2) its
23projected jurisdictional power supply costs or gas supply costs
24for a future 12 month period conforming to (ii) above. If the
25Commission's order requires modifications in the tariff sheets
26filed by the public utility, the public utility shall have 7

 

 

SB0262 Engrossed- 182 -LRB100 05183 HLH 15193 b

1days following the date of the order to notify the Commission
2whether the public utility will implement the modified tariffs
3or elect to continue its fuel or purchased gas adjustment
4clause in force as though no order had been entered. The
5Commission's order shall provide for any reconciliation of
6power supply costs or gas supply costs, as the case may be, and
7associated revenues through the date that the public utility's
8fuel or purchased gas adjustment clause is eliminated. During
9the 5 years following the date of the Commission's order, a
10public utility whose fuel or purchased gas adjustment clause
11has been eliminated pursuant to this subsection shall not file
12proposed tariff sheets seeking, or otherwise petition the
13Commission for, reinstatement or adoption of a fuel or
14purchased gas adjustment clause. Nothing in this subsection (d)
15shall be construed as limiting the Commission's authority to
16eliminate a public utility's fuel adjustment clause or
17purchased gas adjustment clause in accordance with any other
18applicable provisions of this Act.
19    (e) Notwithstanding any contrary or inconsistent
20provisions in Section 9-201 of this Act, in subsection (a) of
21this Section, or in any rules promulgated by the Commission
22pursuant to subsection (g) of this Section, a public utility
23providing electric service to more than 1,000,000 customers in
24this State may, within the first 6 months after the effective
25date of this amendatory Act of 1997, file with the Commission
26proposed tariff sheets that eliminate, effective January 1,

 

 

SB0262 Engrossed- 183 -LRB100 05183 HLH 15193 b

11997, the public utility's fuel adjustment clause without
2adjusting its base rates, and such tariff sheets shall be
3effective upon filing. To the extent the application of the
4fuel adjustment clause had resulted in net charges to customers
5after January 1, 1997, the utility shall also file a tariff
6sheet that provides for a refund stated on a per kilowatt-hour
7basis of such charges over a period not to exceed 6 months;
8provided however, that such refund shall not include the
9proportional amounts of taxes paid under the Use Tax Act,
10Service Use Tax Act, Service Occupation Tax Act, and Retailers'
11Occupation Tax Act on fuel used in generation. The Commission
12shall issue an order within 45 days after the date of the
13public utility's filing approving or approving as modified such
14tariff sheet. If the fuel adjustment clause is eliminated
15pursuant to this subsection, the Commission shall not conduct
16the annual hearings specified in the last 3 sentences of
17subsection (a) of this Section for the utility for any period
18after December 31, 1996 and prior to any reinstatement of such
19clause. A public utility whose fuel adjustment clause has been
20eliminated pursuant to this subsection shall not file a
21proposed tariff sheet seeking, or otherwise petition the
22Commission for, reinstatement of the fuel adjustment clause
23prior to January 1, 2007.
24    (f) Notwithstanding any contrary or inconsistent
25provisions in Section 9-201 of this Act, in subsection (a) of
26this Section, or in any rules or regulations promulgated by the

 

 

SB0262 Engrossed- 184 -LRB100 05183 HLH 15193 b

1Commission pursuant to subsection (g) of this Section, a public
2utility providing electric service to more than 500,000
3customers but fewer than 1,000,000 customers in this State may,
4within the first 6 months after the effective date of this
5amendatory Act of 1997, file with the Commission proposed
6tariff sheets that eliminate, effective January 1, 1997, the
7public utility's fuel adjustment clause and adjust its base
8rates by the amount necessary for the base fuel component of
9the base rates to recover 91% of the public utility's average
10fuel and power supply costs for the 2 most recent years for
11which the Commission, as of January 1, 1997, has issued final
12orders in annual proceedings pursuant to subsection (a), where
13the average fuel and power supply costs per kilowatt-hour shall
14be calculated as the sum of the public utility's prudent and
15allowable fuel and power supply costs as found by the
16Commission in the 2 proceedings divided by the public utility's
17actual jurisdictional kilowatt-hour sales for those 2 years,
18provided, that such tariff sheets shall be effective upon
19filing. To the extent the application of the fuel adjustment
20clause had resulted in net charges to customers after January
211, 1997, the utility shall also file a tariff sheet that
22provides for a refund stated on a per kilowatt-hour basis of
23such charges over a period not to exceed 6 months. Provided
24however, that such refund shall not include the proportional
25amounts of taxes paid under the Use Tax Act, Service Use Tax
26Act, Service Occupation Tax Act, and Retailers' Occupation Tax

 

 

SB0262 Engrossed- 185 -LRB100 05183 HLH 15193 b

1Act on fuel used in generation. The Commission shall issue an
2order within 45 days after the date of the public utility's
3filing approving or approving as modified such tariff sheet. If
4the fuel adjustment clause is eliminated pursuant to this
5subsection, the Commission shall not conduct the annual
6hearings specified in the last 3 sentences of subsection (a) of
7this Section for the utility for any period after December 31,
81996 and prior to any reinstatement of such clause. A public
9utility whose fuel adjustment clause has been eliminated
10pursuant to this subsection shall not file a proposed tariff
11sheet seeking, or otherwise petition the Commission for,
12reinstatement of the fuel adjustment clause prior to January 1,
132007.
14    (g) The Commission shall have authority to promulgate rules
15and regulations to carry out the provisions of this Section.
16    (h) Any Illinois gas utility may enter into a contract on
17or before September 30, 2011 for up to 10 years of supply with
18any company for the purchase of substitute natural gas (SNG)
19produced from coal through the gasification process if the
20company has commenced construction of a clean coal SNG facility
21by July 1, 2012 and commencement of construction shall mean
22that material physical site work has occurred, such as site
23clearing and excavation, water runoff prevention, water
24retention reservoir preparation, or foundation development.
25The contract shall contain the following provisions: (i) at
26least 90% of feedstock to be used in the gasification process

 

 

SB0262 Engrossed- 186 -LRB100 05183 HLH 15193 b

1shall be coal with a high volatile bituminous rank and greater
2than 1.7 pounds of sulfur per million Btu content; (ii) at the
3time the contract term commences, the price per million Btu may
4not exceed $7.95 in 2008 dollars, adjusted annually based on
5the change in the Annual Consumer Price Index for All Urban
6Consumers for the Midwest Region as published in April by the
7United States Department of Labor, Bureau of Labor Statistics
8(or a suitable Consumer Price Index calculation if this
9Consumer Price Index is not available) for the previous
10calendar year; provided that the price per million Btu shall
11not exceed $9.95 at any time during the contract; (iii) the
12utility's supply contract for the purchase of SNG does not
13exceed 15% of the annual system supply requirements of the
14utility as of 2008; and (iv) the contract costs pursuant to
15subsection (h-10) of this Section shall not include any
16lobbying expenses, charitable contributions, advertising,
17organizational memberships, carbon dioxide pipeline or
18sequestration expenses, or marketing expenses.
19    Any gas utility that is providing service to more than
20150,000 customers on August 2, 2011 (the effective date of
21Public Act 97-239) shall either elect to enter into a contract
22on or before September 30, 2011 for 10 years of SNG supply with
23the owner of a clean coal SNG facility or to file biennial rate
24proceedings before the Commission in the years 2012, 2014, and
252016, with such filings made after August 2, 2011 and no later
26than September 30 of the years 2012, 2014, and 2016 consistent

 

 

SB0262 Engrossed- 187 -LRB100 05183 HLH 15193 b

1with all requirements of 83 Ill. Adm. Code 255 and 285 as
2though the gas utility were filing for an increase in its
3rates, without regard to whether such filing would produce an
4increase, a decrease, or no change in the gas utility's rates,
5and the Commission shall review the gas utility's filing and
6shall issue its order in accordance with the provisions of
7Section 9-201 of this Act.
8    Within 7 days after August 2, 2011, the owner of the clean
9coal SNG facility shall submit to the Illinois Power Agency and
10each gas utility that is providing service to more than 150,000
11customers on August 2, 2011 a copy of a draft contract. Within
1230 days after the receipt of the draft contract, each such gas
13utility shall provide the Illinois Power Agency and the owner
14of the clean coal SNG facility with its comments and
15recommended revisions to the draft contract. Within 7 days
16after the receipt of the gas utility's comments and recommended
17revisions, the owner of the facility shall submit its
18responsive comments and a further revised draft of the contract
19to the Illinois Power Agency. The Illinois Power Agency shall
20review the draft contract and comments.
21    During its review of the draft contract, the Illinois Power
22Agency shall:
23        (1) review and confirm in writing that the terms stated
24    in this subsection (h) are incorporated in the SNG
25    contract;
26        (2) review the SNG pricing formula included in the

 

 

SB0262 Engrossed- 188 -LRB100 05183 HLH 15193 b

1    contract and approve that formula if the Illinois Power
2    Agency determines that the formula, at the time the
3    contract term commences: (A) starts with a price of $6.50
4    per MMBtu adjusted by the adjusted final capitalized plant
5    cost; (B) takes into account budgeted miscellaneous net
6    revenue after cost allowance, including sale of SNG
7    produced by the clean coal SNG facility above the nameplate
8    capacity of the facility and other by-products produced by
9    the facility, as approved by the Illinois Power Agency; (C)
10    does not include carbon dioxide transportation or
11    sequestration expenses; and (D) includes all provisions
12    required under this subsection (h); if the Illinois Power
13    Agency does not approve of the SNG pricing formula, then
14    the Illinois Power Agency shall modify the formula to
15    ensure that it meets the requirements of this subsection
16    (h);
17        (3) review and approve the amount of budgeted
18    miscellaneous net revenue after cost allowance, including
19    sale of SNG produced by the clean coal SNG facility above
20    the nameplate capacity of the facility and other
21    by-products produced by the facility, to be included in the
22    pricing formula; the Illinois Power Agency shall approve
23    the amount of budgeted miscellaneous net revenue to be
24    included in the pricing formula if it determines the
25    budgeted amount to be reasonable and accurate;
26        (4) review and confirm in writing that using the EIA

 

 

SB0262 Engrossed- 189 -LRB100 05183 HLH 15193 b

1    Annual Energy Outlook-2011 Henry Hub Spot Price, the
2    contract terms set out in subsection (h), the
3    reconciliation account terms as set out in subsection
4    (h-15), and an estimated inflation rate of 2.5% for each
5    corresponding year, that there will be no cumulative
6    estimated increase for residential customers; and
7        (5) allocate the nameplate capacity of the clean coal
8    SNG by total therms sold to ultimate customers by each gas
9    utility in 2008; provided, however, no utility shall be
10    required to purchase more than 42% of the projected annual
11    output of the facility; additionally, the Illinois Power
12    Agency shall further adjust the allocation only as required
13    to take into account (A) adverse consolidation,
14    derivative, or lease impacts to the balance sheet or income
15    statement of any gas utility or (B) the physical capacity
16    of the gas utility to accept SNG.
17    If the parties to the contract do not agree on the terms
18therein, then the Illinois Power Agency shall retain an
19independent mediator to mediate the dispute between the
20parties. If the parties are in agreement on the terms of the
21contract, then the Illinois Power Agency shall approve the
22contract. If after mediation the parties have failed to come to
23agreement, then the Illinois Power Agency shall revise the
24draft contract as necessary to confirm that the contract
25contains only terms that are reasonable and equitable. The
26Illinois Power Agency may, in its discretion, retain an

 

 

SB0262 Engrossed- 190 -LRB100 05183 HLH 15193 b

1independent, qualified, and experienced expert to assist in its
2obligations under this subsection (h). The Illinois Power
3Agency shall adopt and make public policies detailing the
4processes for retaining a mediator and an expert under this
5subsection (h). Any mediator or expert retained under this
6subsection (h) shall be retained no later than 60 days after
7August 2, 2011.
8    The Illinois Power Agency shall complete all of its
9responsibilities under this subsection (h) within 60 days after
10August 2, 2011. The clean coal SNG facility shall pay a
11reasonable fee as required by the Illinois Power Agency for its
12services under this subsection (h) and shall pay the mediator's
13and expert's reasonable fees, if any. A gas utility and its
14customers shall have no obligation to reimburse the clean coal
15SNG facility or the Illinois Power Agency of any such costs.
16    Within 30 days after commercial production of SNG has
17begun, the Commission shall initiate a review to determine
18whether the final capitalized plant cost of the clean coal SNG
19facility reflects actual incurred costs and whether the
20incurred costs were reasonable. In determining the actual
21incurred costs included in the final capitalized plant cost and
22the reasonableness of those costs, the Commission may in its
23discretion retain independent, qualified, and experienced
24experts to assist in its determination. The expert shall not
25own or control any direct or indirect interest in the clean
26coal SNG facility and shall have no contractual relationship

 

 

SB0262 Engrossed- 191 -LRB100 05183 HLH 15193 b

1with the clean coal SNG facility. If an expert is retained by
2the Commission, then the clean coal SNG facility shall pay the
3expert's reasonable fees. The fees shall not be passed on to a
4utility or its customers. The Commission shall adopt and make
5public a policy detailing the process for retaining experts
6under this subsection (h).
7    Within 30 days after completion of its review, the
8Commission shall initiate a formal proceeding on the final
9capitalized plant cost of the clean coal SNG facility at which
10comments and testimony may be submitted by any interested
11parties and the public. If the Commission finds that the final
12capitalized plant cost includes costs that were not actually
13incurred or costs that were unreasonably incurred, then the
14Commission shall disallow the amount of non-incurred or
15unreasonable costs from the SNG price under contracts entered
16into under this subsection (h). If the Commission disallows any
17costs, then the Commission shall adjust the SNG price using the
18price formula in the contract approved by the Illinois Power
19Agency under this subsection (h) to reflect the disallowed
20costs and shall enter an order specifying the revised price. In
21addition, the Commission's order shall direct the clean coal
22SNG facility to issue refunds of such sums as shall represent
23the difference between actual gross revenues and the gross
24revenue that would have been obtained based upon the same
25volume, from the price revised by the Commission. Any refund
26shall include interest calculated at a rate determined by the

 

 

SB0262 Engrossed- 192 -LRB100 05183 HLH 15193 b

1Commission and shall be returned according to procedures
2prescribed by the Commission.
3    Nothing in this subsection (h) shall preclude any party
4affected by a decision of the Commission under this subsection
5(h) from seeking judicial review of the Commission's decision.
6    (h-1) Any Illinois gas utility may enter into a sourcing
7agreement for up to 30 years of supply with the clean coal SNG
8brownfield facility if the clean coal SNG brownfield facility
9has commenced construction. Any gas utility that is providing
10service to more than 150,000 customers on July 13, 2011 (the
11effective date of Public Act 97-096) shall either elect to file
12biennial rate proceedings before the Commission in the years
132012, 2014, and 2016 or enter into a sourcing agreement or
14sourcing agreements with a clean coal SNG brownfield facility
15with an initial term of 30 years for either (i) a percentage of
1643,500,000,000 cubic feet per year, such that the utilities
17entering into sourcing agreements with the clean coal SNG
18brownfield facility purchase 100%, allocated by total therms
19sold to ultimate customers by each gas utility in 2008 or (ii)
20such lesser amount as may be available from the clean coal SNG
21brownfield facility; provided that no utility shall be required
22to purchase more than 42% of the projected annual output of the
23clean coal SNG brownfield facility, with the remainder of such
24utility's obligation to be divided proportionately between the
25other utilities, and provided that the Illinois Power Agency
26shall further adjust the allocation only as required to take

 

 

SB0262 Engrossed- 193 -LRB100 05183 HLH 15193 b

1into account adverse consolidation, derivative, or lease
2impacts to the balance sheet or income statement of any gas
3utility.
4    A gas utility electing to file biennial rate proceedings
5before the Commission must file a notice of its election with
6the Commission within 60 days after July 13, 2011 or its right
7to make the election is irrevocably waived. A gas utility
8electing to file biennial rate proceedings shall make such
9filings no later than August 1 of the years 2012, 2014, and
102016, consistent with all requirements of 83 Ill. Adm. Code 255
11and 285 as though the gas utility were filing for an increase
12in its rates, without regard to whether such filing would
13produce an increase, a decrease, or no change in the gas
14utility's rates, and notwithstanding any other provisions of
15this Act, the Commission shall fully review the gas utility's
16filing and shall issue its order in accordance with the
17provisions of Section 9-201 of this Act, regardless of whether
18the Commission has approved a formula rate for the gas utility.
19    Within 15 days after July 13, 2011, the owner of the clean
20coal SNG brownfield facility shall submit to the Illinois Power
21Agency and each gas utility that is providing service to more
22than 150,000 customers on July 13, 2011 a copy of a draft
23sourcing agreement. Within 45 days after receipt of the draft
24sourcing agreement, each such gas utility shall provide the
25Illinois Power Agency and the owner of a clean coal SNG
26brownfield facility with its comments and recommended

 

 

SB0262 Engrossed- 194 -LRB100 05183 HLH 15193 b

1revisions to the draft sourcing agreement. Within 15 days after
2the receipt of the gas utility's comments and recommended
3revisions, the owner of the clean coal SNG brownfield facility
4shall submit its responsive comments and a further revised
5draft of the sourcing agreement to the Illinois Power Agency.
6The Illinois Power Agency shall review the draft sourcing
7agreement and comments.
8    If the parties to the sourcing agreement do not agree on
9the terms therein, then the Illinois Power Agency shall retain
10an independent mediator to mediate the dispute between the
11parties. If the parties are in agreement on the terms of the
12sourcing agreement, the Illinois Power Agency shall approve the
13final draft sourcing agreement. If after mediation the parties
14have failed to come to agreement, then the Illinois Power
15Agency shall revise the draft sourcing agreement as necessary
16to confirm that the final draft sourcing agreement contains
17only terms that are reasonable and equitable. The Illinois
18Power Agency shall adopt and make public a policy detailing the
19process for retaining a mediator under this subsection (h-1).
20Any mediator retained to assist with mediating disputes between
21the parties regarding the sourcing agreement shall be retained
22no later than 60 days after July 13, 2011.
23    Upon approval of a final draft agreement, the Illinois
24Power Agency shall submit the final draft agreement to the
25Capital Development Board and the Commission no later than 90
26days after July 13, 2011. The gas utility and the clean coal

 

 

SB0262 Engrossed- 195 -LRB100 05183 HLH 15193 b

1SNG brownfield facility shall pay a reasonable fee as required
2by the Illinois Power Agency for its services under this
3subsection (h-1) and shall pay the mediator's reasonable fees,
4if any. The Illinois Power Agency shall adopt and make public a
5policy detailing the process for retaining a mediator under
6this Section.
7    The sourcing agreement between a gas utility and the clean
8coal SNG brownfield facility shall contain the following
9provisions:
10        (1) Any and all coal used in the gasification process
11    must be coal that has high volatile bituminous rank and
12    greater than 1.7 pounds of sulfur per million Btu content.
13        (2) Coal and petroleum coke are feedstocks for the
14    gasification process, with coal comprising at least 50% of
15    the total feedstock over the term of the sourcing agreement
16    unless the facility reasonably determines that it is
17    necessary to use additional petroleum coke to deliver net
18    consumer savings, in which case the facility shall use coal
19    for at least 35% of the total feedstock over the term of
20    any sourcing agreement and with the feedstocks to be
21    procured in accordance with requirements of Section 1-78 of
22    the Illinois Power Agency Act.
23        (3) The sourcing agreement has an initial term that
24    once entered into terminates no more than 30 years after
25    the commencement of the commercial production of SNG at the
26    clean coal SNG brownfield facility.

 

 

SB0262 Engrossed- 196 -LRB100 05183 HLH 15193 b

1        (4) The clean coal SNG brownfield facility guarantees a
2    minimum of $100,000,000 in consumer savings to customers of
3    the utilities that have entered into sourcing agreements
4    with the clean coal SNG brownfield facility, calculated in
5    real 2010 dollars at the conclusion of the term of the
6    sourcing agreement by comparing the delivered SNG price to
7    the Chicago City-gate price on a weighted daily basis for
8    each day over the entire term of the sourcing agreement, to
9    be provided in accordance with subsection (h-2) of this
10    Section.
11        (5) Prior to the clean coal SNG brownfield facility
12    issuing a notice to proceed to construction, the clean coal
13    SNG brownfield facility shall establish a consumer
14    protection reserve account for the benefit of the customers
15    of the utilities that have entered into sourcing agreements
16    with the clean coal SNG brownfield facility pursuant to
17    this subsection (h-1), with cash principal in the amount of
18    $150,000,000. This cash principal shall only be
19    recoverable through the consumer protection reserve
20    account and not as a cost to be recovered in the delivered
21    SNG price pursuant to subsection (h-3) of this Section. The
22    consumer protection reserve account shall be maintained
23    and administered by an independent trustee that is mutually
24    agreed upon by the clean coal SNG brownfield facility, the
25    utilities, and the Commission in an interest-bearing
26    account in accordance with subsection (h-2) of this

 

 

SB0262 Engrossed- 197 -LRB100 05183 HLH 15193 b

1    Section.
2        "Consumer protection reserve account principal maximum
3    amount" shall mean the maximum amount of principal to be
4    maintained in the consumer protection reserve account.
5    During the first 2 years of operation of the facility,
6    there shall be no consumer protection reserve account
7    maximum amount. After the first 2 years of operation of the
8    facility, the consumer protection reserve account maximum
9    amount shall be $150,000,000. After 5 years of operation,
10    and every 5 years thereafter, the trustee shall calculate
11    the 5-year average balance of the consumer protection
12    reserve account. If the trustee determines that during the
13    prior 5 years the consumer protection reserve account has
14    had an average account balance of less than $75,000,000,
15    then the consumer protection reserve account principal
16    maximum amount shall be increased by $5,000,000. If the
17    trustee determines that during the prior 5 years the
18    consumer protection reserve account has had an average
19    account balance of more than $75,000,000, then the consumer
20    protection reserve account principal maximum amount shall
21    be decreased by $5,000,000.
22        (6) The clean coal SNG brownfield facility shall
23    identify and sell economically viable by-products produced
24    by the facility.
25        (7) Fifty percent of all additional net revenue,
26    defined as miscellaneous net revenue from products

 

 

SB0262 Engrossed- 198 -LRB100 05183 HLH 15193 b

1    produced by the facility and delivered during the month
2    after cost allowance for costs associated with additional
3    net revenue that are not otherwise recoverable pursuant to
4    subsection (h-3) of this Section, including net revenue
5    from sales of substitute natural gas derived from the
6    facility above the nameplate capacity of the facility and
7    other by-products produced by the facility, shall be
8    credited to the consumer protection reserve account
9    pursuant to subsection (h-2) of this Section.
10        (8) The delivered SNG price per million btu to be paid
11    monthly by the utility to the clean coal SNG brownfield
12    facility, which shall be based only upon the following: (A)
13    a capital recovery charge, operations and maintenance
14    costs, and sequestration costs, only to the extent approved
15    by the Commission pursuant to paragraphs (1), (2), and (3)
16    of subsection (h-3) of this Section; (B) the actual
17    delivered and processed fuel costs pursuant to paragraph
18    (4) of subsection (h-3) of this Section; (C) actual costs
19    of SNG transportation pursuant to paragraph (6) of
20    subsection (h-3) of this Section; (D) certain taxes and
21    fees imposed by the federal government, the State, or any
22    unit of local government as provided in paragraph (6) of
23    subsection (h-3) of this Section; and (E) the credit, if
24    any, from the consumer protection reserve account pursuant
25    to subsection (h-2) of this Section. The delivered SNG
26    price per million Btu shall proportionately reflect these

 

 

SB0262 Engrossed- 199 -LRB100 05183 HLH 15193 b

1    elements over the term of the sourcing agreement.
2        (9) A formula to translate the recoverable costs and
3    charges under subsection (h-3) of this Section into the
4    delivered SNG price per million btu.
5        (10) Title to the SNG shall pass at a mutually
6    agreeable point in Illinois, and may provide that, rather
7    than the utility taking title to the SNG, a mutually agreed
8    upon third-party gas marketer pursuant to a contract
9    approved by the Illinois Power Agency or its designee may
10    take title to the SNG pursuant to an agreement between the
11    utility, the owner of the clean coal SNG brownfield
12    facility, and the third-party gas marketer.
13        (11) A utility may exit the sourcing agreement without
14    penalty if the clean coal SNG brownfield facility does not
15    commence construction by July 1, 2015.
16        (12) A utility is responsible to pay only the
17    Commission determined unit price cost of SNG that is
18    purchased by the utility. Nothing in the sourcing agreement
19    will obligate a utility to invest capital in a clean coal
20    SNG brownfield facility.
21        (13) The quality of SNG must, at a minimum, be
22    equivalent to the quality required for interstate pipeline
23    gas before a utility is required to accept and pay for SNG
24    gas.
25        (14) Nothing in the sourcing agreement will require a
26    utility to construct any facilities to accept delivery of

 

 

SB0262 Engrossed- 200 -LRB100 05183 HLH 15193 b

1    SNG. Provided, however, if a utility is required by law or
2    otherwise elects to connect the clean coal SNG brownfield
3    facility to an interstate pipeline, then the utility shall
4    be entitled to recover pursuant to its tariffs all just and
5    reasonable costs that are prudently incurred. Any costs
6    incurred by the utility to receive, deliver, manage, or
7    otherwise accommodate purchases under the SNG sourcing
8    agreement will be fully recoverable through a utility's
9    purchased gas adjustment clause rider mechanism in
10    conjunction with a SNG brownfield facility rider
11    mechanism. The SNG brownfield facility rider mechanism (A)
12    shall be applicable to all customers who receive
13    transportation service from the utility, (B) shall be
14    designed to have an equal percent impact on the
15    transportation services rates of each class of the
16    utility's customers, and (C) shall accurately reflect the
17    net consumer savings, if any, and above-market costs, if
18    any, associated with the utility receiving, delivering,
19    managing, or otherwise accommodating purchases under the
20    SNG sourcing agreement.
21        (15) Remedies for the clean coal SNG brownfield
22    facility's failure to deliver a designated amount for a
23    designated period.
24        (16) The clean coal SNG brownfield facility shall make
25    a good faith effort to ensure that an amount equal to not
26    less than 15% of the value of its prime construction

 

 

SB0262 Engrossed- 201 -LRB100 05183 HLH 15193 b

1    contract for the facility shall be established as a goal to
2    be awarded to minority-owned minority owned businesses,
3    women-owned female owned businesses, and businesses owned
4    by a person with a disability; provided that at least 75%
5    of the amount of such total goal shall be for
6    minority-owned minority owned businesses. "Minority-owned
7    Minority owned business", "women-owned female owned
8    business", and "business owned by a person with a
9    disability" shall have the meanings ascribed to them in
10    Section 2 of the Business Enterprise for Minorities, Women,
11    Females and Persons with Disabilities Act.
12        (17) Prior to the clean coal SNG brownfield facility
13    issuing a notice to proceed to construction, the clean coal
14    SNG brownfield facility shall file with the Commission a
15    certificate from an independent engineer that the clean
16    coal SNG brownfield facility has (A) obtained all
17    applicable State and federal environmental permits
18    required for construction; (B) obtained approval from the
19    Commission of a carbon capture and sequestration plan; and
20    (C) obtained all necessary permits required for
21    construction for the transportation and sequestration of
22    carbon dioxide as set forth in the Commission-approved
23    carbon capture and sequestration plan.
24    (h-2) Consumer protection reserve account. The clean coal
25SNG brownfield facility shall guarantee a minimum of
26$100,000,000 in consumer savings to customers of the utilities

 

 

SB0262 Engrossed- 202 -LRB100 05183 HLH 15193 b

1that have entered into sourcing agreements with the clean coal
2SNG brownfield facility, calculated in real 2010 dollars at the
3conclusion of the term of the sourcing agreement by comparing
4the delivered SNG price to the Chicago City-gate price on a
5weighted daily basis for each day over the entire term of the
6sourcing agreement. Prior to the clean coal SNG brownfield
7facility issuing a notice to proceed to construction, the clean
8coal SNG brownfield facility shall establish a consumer
9protection reserve account for the benefit of the retail
10customers of the utilities that have entered into sourcing
11agreements with the clean coal SNG brownfield facility pursuant
12to subsection (h-1), with cash principal in the amount of
13$150,000,000. Such cash principal shall only be recovered
14through the consumer protection reserve account and not as a
15cost to be recovered in the delivered SNG price pursuant to
16subsection (h-3) of this Section. The consumer protection
17reserve account shall be maintained and administered by an
18independent trustee that is mutually agreed upon by the clean
19coal SNG brownfield facility, the utilities, and the Commission
20in an interest-bearing account in accordance with the
21following:
22        (1) The clean coal SNG brownfield facility monthly
23    shall calculate (A) the difference between the monthly
24    delivered SNG price and the Chicago City-gate price, by
25    comparing the delivered SNG price, which shall include the
26    cost of transportation to the delivery point, if any, to

 

 

SB0262 Engrossed- 203 -LRB100 05183 HLH 15193 b

1    the Chicago City-gate price on a weighted daily basis for
2    each day of the prior month based upon a mutually agreed
3    upon published index and (B) the overage amount, if any, by
4    calculating the annualized incremental additional cost, if
5    any, of the delivered SNG in excess of 2.015% of the
6    average annual inflation-adjusted amounts paid by all gas
7    distribution customers in connection with natural gas
8    service during the 5 years ending May 31, 2010.
9        (2) During the first 2 years of operation of the
10    facility:
11            (A) to the extent there is an overage amount, the
12        consumer protection reserve account shall be used to
13        provide a credit to reduce the SNG price by an amount
14        equal to the overage amount; and
15            (B) to the extent the monthly delivered SNG price
16        is less than or equal to the Chicago City-gate price,
17        the utility shall credit the difference between the
18        monthly delivered SNG price and the monthly Chicago
19        City-gate price, if any, to the consumer protection
20        reserve account. Such credit issued pursuant to this
21        paragraph (B) shall be deemed prudent and reasonable
22        and not subject to a Commission prudence review;
23        (3) After 2 years of operation of the facility, and
24    monthly, on an on-going basis, thereafter:
25            (A) to the extent that the monthly delivered SNG
26        price is less than or equal to the Chicago City-gate

 

 

SB0262 Engrossed- 204 -LRB100 05183 HLH 15193 b

1        price, calculated using the weighted average of the
2        daily Chicago City-gate price on a daily basis over the
3        entire month, the utility shall credit the difference,
4        if any, to the consumer protection reserve account.
5        Such credit issued pursuant to this subparagraph (A)
6        shall be deemed prudent and reasonable and not subject
7        to a Commission prudence review;
8            (B) any amounts in the consumer protection reserve
9        account in excess of the consumer protection reserve
10        account principal maximum amount shall be distributed
11        as follows: (i) if retail customers have not realized
12        net consumer savings, calculated by comparing the
13        delivered SNG price to the weighted average of the
14        daily Chicago City-gate price on a daily basis over the
15        entire term of the sourcing agreement to date, then 50%
16        of any amounts in the consumer protection reserve
17        account in excess of the consumer protection reserve
18        account principal maximum shall be distributed to the
19        clean coal SNG brownfield facility, with the remaining
20        50% of any such additional amounts being credited to
21        retail customers, and (ii) if retail customers have
22        realized net consumer savings, then 100% of any amounts
23        in the consumer protection reserve account in excess of
24        the consumer protection reserve account principal
25        maximum shall be distributed to the clean coal SNG
26        brownfield facility; provided, however, that under no

 

 

SB0262 Engrossed- 205 -LRB100 05183 HLH 15193 b

1        circumstances shall the total cumulative amount
2        distributed to the clean coal SNG brownfield facility
3        under this subparagraph (B) exceed $150,000,000;
4            (C) to the extent there is an overage amount, after
5        distributing the amounts pursuant to subparagraph (B)
6        of this paragraph (3), if any, the consumer protection
7        reserve account shall be used to provide a credit to
8        reduce the SNG price by an amount equal to the overage
9        amount;
10            (D) if retail customers have realized net consumer
11        savings, calculated by comparing the delivered SNG
12        price to the weighted average of the daily Chicago
13        City-gate price on a daily basis over the entire term
14        of the sourcing agreement to date, then after
15        distributing the amounts pursuant to subparagraphs (B)
16        and (C) of this paragraph (3), 50% of any additional
17        amounts in the consumer protection reserve account in
18        excess of the consumer protection reserve account
19        principal maximum shall be distributed to the clean
20        coal SNG brownfield facility, with the remaining 50% of
21        any such additional amounts being credited to retail
22        customers; provided, however, that if retail customers
23        have not realized such net consumer savings, no such
24        distribution shall be made to the clean coal SNG
25        brownfield facility, and 100% of such additional
26        amounts shall be credited to the retail customers to

 

 

SB0262 Engrossed- 206 -LRB100 05183 HLH 15193 b

1        the extent the consumer protection reserve account
2        exceeds the consumer protection reserve account
3        principal maximum amount.
4        (4) Fifty percent of all additional net revenue,
5    defined as miscellaneous net revenue after cost allowance
6    for costs associated with additional net revenue that are
7    not otherwise recoverable pursuant to subsection (h-3) of
8    this Section, including net revenue from sales of
9    substitute natural gas derived from the facility above the
10    nameplate capacity of the facility and other by-products
11    produced by the facility, shall be credited to the consumer
12    protection reserve account.
13        (5) At the conclusion of the term of the sourcing
14    agreement, to the extent retail customers have not saved
15    the minimum of $100,000,000 in consumer savings as
16    guaranteed in this subsection (h-2), amounts in the
17    consumer protection reserve account shall be credited to
18    retail customers to the extent the retail customers have
19    saved the minimum of $100,000,000; 50% of any additional
20    amounts in the consumer protection reserve account shall be
21    distributed to the company, and the remaining 50% shall be
22    distributed to retail customers.
23        (6) If, at the conclusion of the term of the sourcing
24    agreement, the customers have not saved the minimum
25    $100,000,000 in savings as guaranteed in this subsection
26    (h-2) and the consumer protection reserve account has been

 

 

SB0262 Engrossed- 207 -LRB100 05183 HLH 15193 b

1    depleted, then the clean coal SNG brownfield facility shall
2    be liable for any remaining amount owed to the retail
3    customers to the extent that the customers are provided
4    with the $100,000,000 in savings as guaranteed in this
5    subsection (h-2). The retail customers shall have first
6    priority in recovering that debt above any creditors,
7    except the original senior secured lender to the extent
8    that the original senior secured lender has any senior
9    secured debt outstanding, including any clean coal SNG
10    brownfield facility parent companies or affiliates.
11        (7) The clean coal SNG brownfield facility, the
12    utilities, and the trustee shall work together to take
13    commercially reasonable steps to minimize the tax impact of
14    these transactions, while preserving the consumer
15    benefits.
16        (8) The clean coal SNG brownfield facility shall each
17    month, starting in the facility's first year of commercial
18    operation, file with the Commission, in such form as the
19    Commission shall require, a report as to the consumer
20    protection reserve account. The monthly report must
21    contain the following information:
22            (A) the extent the monthly delivered SNG price is
23        greater than, less than, or equal to the Chicago
24        City-gate price;
25            (B) the amount credited or debited to the consumer
26        protection reserve account during the month;

 

 

SB0262 Engrossed- 208 -LRB100 05183 HLH 15193 b

1            (C) the amounts credited to consumers and
2        distributed to the clean coal SNG brownfield facility
3        during the month;
4            (D) the total amount of the consumer protection
5        reserve account at the beginning and end of the month;
6            (E) the total amount of consumer savings to date;
7            (F) a confidential summary of the inputs used to
8        calculate the additional net revenue; and
9            (G) any other additional information the
10        Commission shall require.
11        When any report is erroneous or defective or appears to
12    the Commission to be erroneous or defective, the Commission
13    may notify the clean coal SNG brownfield facility to amend
14    the report within 30 days, and, before or after the
15    termination of the 30-day period, the Commission may
16    examine the trustee of the consumer protection reserve
17    account or the officers, agents, employees, books,
18    records, or accounts of the clean coal SNG brownfield
19    facility and correct such items in the report as upon such
20    examination the Commission may find defective or
21    erroneous. All reports shall be under oath.
22        All reports made to the Commission by the clean coal
23    SNG brownfield facility and the contents of the reports
24    shall be open to public inspection and shall be deemed a
25    public record under the Freedom of Information Act. Such
26    reports shall be preserved in the office of the Commission.

 

 

SB0262 Engrossed- 209 -LRB100 05183 HLH 15193 b

1    The Commission shall publish an annual summary of the
2    reports prior to February 1 of the following year. The
3    annual summary shall be made available to the public on the
4    Commission's website and shall be submitted to the General
5    Assembly.
6        Any facility that fails to file a report required under
7    this paragraph (8) to the Commission within the time
8    specified or to make specific answer to any question
9    propounded by the Commission within 30 days from the time
10    it is lawfully required to do so, or within such further
11    time not to exceed 90 days as may in its discretion be
12    allowed by the Commission, shall pay a penalty of $500 to
13    the Commission for each day it is in default.
14        Any person who willfully makes any false report to the
15    Commission or to any member, officer, or employee thereof,
16    any person who willfully in a report withholds or fails to
17    provide material information to which the Commission is
18    entitled under this paragraph (8) and which information is
19    either required to be filed by statute, rule, regulation,
20    order, or decision of the Commission or has been requested
21    by the Commission, and any person who willfully aids or
22    abets such person shall be guilty of a Class A misdemeanor.
23    (h-3) Recoverable costs and revenue by the clean coal SNG
24brownfield facility.
25        (1) A capital recovery charge approved by the
26    Commission shall be recoverable by the clean coal SNG

 

 

SB0262 Engrossed- 210 -LRB100 05183 HLH 15193 b

1    brownfield facility under a sourcing agreement. The
2    capital recovery charge shall be comprised of capital costs
3    and a reasonable rate of return. "Capital costs" means
4    costs to be incurred in connection with the construction
5    and development of a facility, as defined in Section 1-10
6    of the Illinois Power Agency Act, and such other costs as
7    the Capital Development Board deems appropriate to be
8    recovered in the capital recovery charge.
9            (A) Capital costs. The Capital Development Board
10        shall calculate a range of capital costs that it
11        believes would be reasonable for the clean coal SNG
12        brownfield facility to recover under the sourcing
13        agreement. In making this determination, the Capital
14        Development Board shall review the facility cost
15        report, if any, of the clean coal SNG brownfield
16        facility, adjusting the results based on the change in
17        the Annual Consumer Price Index for All Urban Consumers
18        for the Midwest Region as published in April by the
19        United States Department of Labor, Bureau of Labor
20        Statistics, the final draft of the sourcing agreement,
21        and the rate of return approved by the Commission. In
22        addition, the Capital Development Board may consult as
23        much as it deems necessary with the clean coal SNG
24        brownfield facility and conduct whatever research and
25        investigation it deems necessary.
26            The Capital Development Board shall retain an

 

 

SB0262 Engrossed- 211 -LRB100 05183 HLH 15193 b

1        engineering expert to assist in determining both the
2        range of capital costs and the range of operations and
3        maintenance costs that it believes would be reasonable
4        for the clean coal SNG brownfield facility to recover
5        under the sourcing agreement. Provided, however, that
6        such expert shall: (i) not have been involved in the
7        clean coal SNG brownfield facility's facility cost
8        report, if any, (ii) not own or control any direct or
9        indirect interest in the initial clean coal facility,
10        and (iii) have no contractual relationship with the
11        clean coal SNG brownfield facility. In order to qualify
12        as an independent expert, a person or company must
13        have:
14                (i) direct previous experience conducting
15            front-end engineering and design studies for
16            large-scale energy facilities and administering
17            large-scale energy operations and maintenance
18            contracts, which may be particularized to the
19            specific type of financing associated with the
20            clean coal SNG brownfield facility;
21                (ii) an advanced degree in economics,
22            mathematics, engineering, or a related area of
23            study;
24                (iii) ten years of experience in the energy
25            sector, including construction and risk management
26            experience;

 

 

SB0262 Engrossed- 212 -LRB100 05183 HLH 15193 b

1                (iv) expertise in assisting companies with
2            obtaining financing for large-scale energy
3            projects, which may be particularized to the
4            specific type of financing associated with the
5            clean coal SNG brownfield facility;
6                (v) expertise in operations and maintenance
7            which may be particularized to the specific type of
8            operations and maintenance associated with the
9            clean coal SNG brownfield facility;
10                (vi) expertise in credit and contract
11            protocols;
12                (vii) adequate resources to perform and
13            fulfill the required functions and
14            responsibilities; and
15                (viii) the absence of a conflict of interest
16            and inappropriate bias for or against an affected
17            gas utility or the clean coal SNG brownfield
18            facility.
19            The clean coal SNG brownfield facility and the
20        Illinois Power Agency shall cooperate with the Capital
21        Development Board in any investigation it deems
22        necessary. The Capital Development Board shall make
23        its final determination of the range of capital costs
24        confidentially and shall submit that range to the
25        Commission in a confidential filing within 120 days
26        after July 13, 2011 (the effective date of Public Act

 

 

SB0262 Engrossed- 213 -LRB100 05183 HLH 15193 b

1        97-096). The clean coal SNG brownfield facility shall
2        submit to the Commission its estimate of the capital
3        costs to be recovered under the sourcing agreement.
4        Only after the clean coal SNG brownfield facility has
5        submitted this estimate shall the Commission publicly
6        announce the range of capital costs submitted by the
7        Capital Development Board.
8            In the event that the estimate submitted by the
9        clean coal SNG brownfield facility is within or below
10        the range submitted by the Capital Development Board,
11        the clean coal SNG brownfield facility's estimate
12        shall be approved by the Commission as the amount of
13        capital costs to be recovered under the sourcing
14        agreement. In the event that the estimate submitted by
15        the clean coal SNG brownfield facility is above the
16        range submitted by the Capital Development Board, the
17        amount of capital costs at the lowest end of the range
18        submitted by the Capital Development Board shall be
19        approved by the Commission as the amount of capital
20        costs to be recovered under the sourcing agreement.
21        Within 15 days after the Capital Development Board has
22        submitted its range and the clean coal SNG brownfield
23        facility has submitted its estimate, the Commission
24        shall approve the capital costs for the clean coal SNG
25        brownfield facility.
26            The Capital Development Board shall monitor the

 

 

SB0262 Engrossed- 214 -LRB100 05183 HLH 15193 b

1        construction of the clean coal SNG brownfield facility
2        for the full duration of construction to assess
3        potential cost overruns. The Capital Development
4        Board, in its discretion, may retain an expert to
5        facilitate such monitoring. The clean coal SNG
6        brownfield facility shall pay a reasonable fee as
7        required by the Capital Development Board for the
8        Capital Development Board's services under this
9        subsection (h-3) to be deposited into the Capital
10        Development Board Revolving Fund, and such fee shall
11        not be passed through to a utility or its customers. If
12        an expert is retained by the Capital Development Board
13        for monitoring of construction, then the clean coal SNG
14        brownfield facility must pay for the expert's
15        reasonable fees and such costs shall not be passed
16        through to a utility or its customers.
17            (B) Rate of Return. No later than 30 days after the
18        date on which the Illinois Power Agency submits a final
19        draft sourcing agreement, the Commission shall hold a
20        public hearing to determine the rate of return to be
21        recovered under the sourcing agreement. Rate of return
22        shall be comprised of the clean coal SNG brownfield
23        facility's actual cost of debt, including
24        mortgage-style amortization, and a reasonable return
25        on equity. The Commission shall post notice of the
26        hearing on its website no later than 10 days prior to

 

 

SB0262 Engrossed- 215 -LRB100 05183 HLH 15193 b

1        the date of the hearing. The Commission shall provide
2        the public and all interested parties, including the
3        gas utilities, the Attorney General, and the Illinois
4        Power Agency, an opportunity to be heard.
5            In determining the return on equity, the
6        Commission shall select a commercially reasonable
7        return on equity taking into account the return on
8        equity being received by developers of similar
9        facilities in or outside of Illinois, the need to
10        balance an incentive for clean-coal technology with
11        the need to protect ratepayers from high gas prices,
12        the risks being borne by the clean coal SNG brownfield
13        facility in the final draft sourcing agreement, and any
14        other information that the Commission may deem
15        relevant. The Commission may establish a return on
16        equity that varies with the amount of savings, if any,
17        to customers during the term of the sourcing agreement,
18        comparing the delivered SNG price to a daily weighted
19        average price of natural gas, based upon an index. The
20        Illinois Power Agency shall recommend a return on
21        equity to the Commission using the same criteria.
22        Within 60 days after receiving the final draft sourcing
23        agreement from the Illinois Power Agency, the
24        Commission shall approve the rate of return for the
25        clean coal brownfield facility. Within 30 days after
26        obtaining debt financing for the clean coal SNG

 

 

SB0262 Engrossed- 216 -LRB100 05183 HLH 15193 b

1        brownfield facility, the clean coal SNG brownfield
2        facility shall file a notice with the Commission
3        identifying the actual cost of debt.
4        (2) Operations and maintenance costs approved by the
5    Commission shall be recoverable by the clean coal SNG
6    brownfield facility under the sourcing agreement. The
7    operations and maintenance costs mean costs that have been
8    incurred for the administration, supervision, operation,
9    maintenance, preservation, and protection of the clean
10    coal SNG brownfield facility's physical plant.
11        The Capital Development Board shall calculate a range
12    of operations and maintenance costs that it believes would
13    be reasonable for the clean coal SNG brownfield facility to
14    recover under the sourcing agreement, incorporating an
15    inflation index or combination of inflation indices to most
16    accurately reflect the actual costs of operating the clean
17    coal SNG brownfield facility. In making this
18    determination, the Capital Development Board shall review
19    the facility cost report, if any, of the clean coal SNG
20    brownfield facility, adjusting the results for inflation
21    based on the change in the Annual Consumer Price Index for
22    All Urban Consumers for the Midwest Region as published in
23    April by the United States Department of Labor, Bureau of
24    Labor Statistics, the final draft of the sourcing
25    agreement, and the rate of return approved by the
26    Commission. In addition, the Capital Development Board may

 

 

SB0262 Engrossed- 217 -LRB100 05183 HLH 15193 b

1    consult as much as it deems necessary with the clean coal
2    SNG brownfield facility and conduct whatever research and
3    investigation it deems necessary. As set forth in
4    subparagraph (A) of paragraph (1) of this subsection (h-3),
5    the Capital Development Board shall retain an independent
6    engineering expert to assist in determining both the range
7    of operations and maintenance costs that it believes would
8    be reasonable for the clean coal SNG brownfield facility to
9    recover under the sourcing agreement. The clean coal SNG
10    brownfield facility and the Illinois Power Agency shall
11    cooperate with the Capital Development Board in any
12    investigation it deems necessary. The Capital Development
13    Board shall make its final determination of the range of
14    operations and maintenance costs confidentially and shall
15    submit that range to the Commission in a confidential
16    filing within 120 days after July 13, 2011.
17        The clean coal SNG brownfield facility shall submit to
18    the Commission its estimate of the operations and
19    maintenance costs to be recovered under the sourcing
20    agreement. Only after the clean coal SNG brownfield
21    facility has submitted this estimate shall the Commission
22    publicly announce the range of operations and maintenance
23    costs submitted by the Capital Development Board. In the
24    event that the estimate submitted by the clean coal SNG
25    brownfield facility is within or below the range submitted
26    by the Capital Development Board, the clean coal SNG

 

 

SB0262 Engrossed- 218 -LRB100 05183 HLH 15193 b

1    brownfield facility's estimate shall be approved by the
2    Commission as the amount of operations and maintenance
3    costs to be recovered under the sourcing agreement. In the
4    event that the estimate submitted by the clean coal SNG
5    brownfield facility is above the range submitted by the
6    Capital Development Board, the amount of operations and
7    maintenance costs at the lowest end of the range submitted
8    by the Capital Development Board shall be approved by the
9    Commission as the amount of operations and maintenance
10    costs to be recovered under the sourcing agreement. Within
11    15 days after the Capital Development Board has submitted
12    its range and the clean coal SNG brownfield facility has
13    submitted its estimate, the Commission shall approve the
14    operations and maintenance costs for the clean coal SNG
15    brownfield facility.
16        The clean coal SNG brownfield facility shall pay for
17    the independent engineering expert's reasonable fees and
18    such costs shall not be passed through to a utility or its
19    customers. The clean coal SNG brownfield facility shall pay
20    a reasonable fee as required by the Capital Development
21    Board for the Capital Development Board's services under
22    this subsection (h-3) to be deposited into the Capital
23    Development Board Revolving Fund, and such fee shall not be
24    passed through to a utility or its customers.
25        (3) Sequestration costs approved by the Commission
26    shall be recoverable by the clean coal SNG brownfield

 

 

SB0262 Engrossed- 219 -LRB100 05183 HLH 15193 b

1    facility. "Sequestration costs" means costs to be incurred
2    by the clean coal SNG brownfield facility in accordance
3    with its Commission-approved carbon capture and
4    sequestration plan to:
5            (A) capture carbon dioxide;
6            (B) build, operate, and maintain a sequestration
7        site in which carbon dioxide may be injected;
8            (C) build, operate, and maintain a carbon dioxide
9        pipeline; and
10            (D) transport the carbon dioxide to the
11        sequestration site or a pipeline.
12        The Commission shall assess the prudency of the
13    sequestration costs for the clean coal SNG brownfield
14    facility before construction commences at the
15    sequestration site or pipeline. Any revenues the clean coal
16    SNG brownfield facility receives as a result of the
17    capture, transportation, or sequestration of carbon
18    dioxide shall be first credited against all sequestration
19    costs, with the positive balance, if any, treated as
20    additional net revenue.
21        The Commission may, in its discretion, retain an expert
22    to assist in its review of sequestration costs. The clean
23    coal SNG brownfield facility shall pay for the expert's
24    reasonable fees if an expert is retained by the Commission,
25    and such costs shall not be passed through to a utility or
26    its customers. Once made, the Commission's determination

 

 

SB0262 Engrossed- 220 -LRB100 05183 HLH 15193 b

1    of the amount of recoverable sequestration costs shall not
2    be increased unless the clean coal SNG brownfield facility
3    can show by clear and convincing evidence that (i) the
4    costs were not reasonably foreseeable; (ii) the costs were
5    due to circumstances beyond the clean coal SNG brownfield
6    facility's control; and (iii) the clean coal SNG brownfield
7    facility took all reasonable steps to mitigate the costs.
8    If the Commission determines that sequestration costs may
9    be increased, the Commission shall provide for notice and a
10    public hearing for approval of the increased sequestration
11    costs.
12        (4) Actual delivered and processed fuel costs shall be
13    set by the Illinois Power Agency through a SNG feedstock
14    procurement, pursuant to Sections 1-20, 1-77, and 1-78 of
15    the Illinois Power Agency Act, to be performed at least
16    every 5 years and purchased by the clean coal SNG
17    brownfield facility pursuant to feedstock procurement
18    contracts developed by the Illinois Power Agency, with coal
19    comprising at least 50% of the total feedstock over the
20    term of the sourcing agreement and petroleum coke
21    comprising the remainder of the SNG feedstock. If the
22    Commission fails to approve a feedstock procurement plan or
23    fails to approve the results of a feedstock procurement
24    event, then the fuel shall be purchased by the company
25    month-by-month on the spot market and those actual
26    delivered and processed fuel costs shall be recoverable

 

 

SB0262 Engrossed- 221 -LRB100 05183 HLH 15193 b

1    under the sourcing agreement. If a supplier defaults under
2    the terms of a procurement contract, then the Illinois
3    Power Agency shall immediately initiate a feedstock
4    procurement process to obtain a replacement supply, and,
5    prior to the conclusion of that process, fuel shall be
6    purchased by the company month-by-month on the spot market
7    and those actual delivered and processed fuel costs shall
8    be recoverable under the sourcing agreement.
9        (5) Taxes and fees imposed by the federal government,
10    the State, or any unit of local government applicable to
11    the clean coal SNG brownfield facility, excluding income
12    tax, shall be recoverable by the clean coal SNG brownfield
13    facility under the sourcing agreement to the extent such
14    taxes and fees were not applicable to the facility on July
15    13, 2011.
16        (6) The actual transportation costs, in accordance
17    with the applicable utility's tariffs, and third-party
18    marketer costs incurred by the company, if any, associated
19    with transporting the SNG from the clean coal SNG
20    brownfield facility to the Chicago City-gate to sell such
21    SNG into the natural gas markets shall be recoverable under
22    the sourcing agreement.
23        (7) Unless otherwise provided, within 30 days after a
24    decision of the Commission on recoverable costs under this
25    Section, any interested party to the Commission's decision
26    may apply for a rehearing with respect to the decision. The

 

 

SB0262 Engrossed- 222 -LRB100 05183 HLH 15193 b

1    Commission shall receive and consider the application for
2    rehearing and shall grant or deny the application in whole
3    or in part within 20 days after the date of the receipt of
4    the application by the Commission. If no rehearing is
5    applied for within the required 30 days or an application
6    for rehearing is denied, then the Commission decision shall
7    be final. If an application for rehearing is granted, then
8    the Commission shall hold a rehearing within 30 days after
9    granting the application. The decision of the Commission
10    upon rehearing shall be final.
11        Any person affected by a decision of the Commission
12    under this subsection (h-3) may have the decision reviewed
13    only under and in accordance with the Administrative Review
14    Law. Unless otherwise provided, the provisions of the
15    Administrative Review Law, all amendments and
16    modifications to that Law, and the rules adopted pursuant
17    to that Law shall apply to and govern all proceedings for
18    the judicial review of final administrative decisions of
19    the Commission under this subsection (h-3). The term
20    "administrative decision" is defined as in Section 3-101 of
21    the Code of Civil Procedure.
22        (8) The Capital Development Board shall adopt and make
23    public a policy detailing the process for retaining experts
24    under this Section. Any experts retained to assist with
25    calculating the range of capital costs or operations and
26    maintenance costs shall be retained no later than 45 days

 

 

SB0262 Engrossed- 223 -LRB100 05183 HLH 15193 b

1    after July 13, 2011.
2    (h-4) No later than 90 days after the Illinois Power Agency
3submits the final draft sourcing agreement pursuant to
4subsection (h-1), the Commission shall approve a sourcing
5agreement containing (i) the capital costs, rate of return, and
6operations and maintenance costs established pursuant to
7subsection (h-3) and (ii) all other terms and conditions,
8rights, provisions, exceptions, and limitations contained in
9the final draft sourcing agreement; provided, however, the
10Commission shall correct typographical and scrivener's errors
11and modify the contract only as necessary to provide that the
12gas utility does not have the right to terminate the sourcing
13agreement due to any future events that may occur other than
14the clean coal SNG brownfield facility's failure to timely meet
15milestones, uncured default, extended force majeure, or
16abandonment. Once the sourcing agreement is approved, then the
17gas utility subject to that sourcing agreement shall have 45
18days after the date of the Commission's approval to enter into
19the sourcing agreement.
20    (h-5) Sequestration enforcement.
21        (A) All contracts entered into under subsection (h) of
22    this Section and all sourcing agreements under subsection
23    (h-1) of this Section, regardless of duration, shall
24    require the owner of any facility supplying SNG under the
25    contract or sourcing agreement to provide certified
26    documentation to the Commission each year, starting in the

 

 

SB0262 Engrossed- 224 -LRB100 05183 HLH 15193 b

1    facility's first year of commercial operation, accurately
2    reporting the quantity of carbon dioxide emissions from the
3    facility that have been captured and sequestered and
4    reporting any quantities of carbon dioxide released from
5    the site or sites at which carbon dioxide emissions were
6    sequestered in prior years, based on continuous monitoring
7    of those sites.
8        (B) If, in any year, the owner of the clean coal SNG
9    facility fails to demonstrate that the SNG facility
10    captured and sequestered at least 90% of the total carbon
11    dioxide emissions that the facility would otherwise emit or
12    that sequestration of emissions from prior years has
13    failed, resulting in the release of carbon dioxide into the
14    atmosphere, then the owner of the clean coal SNG facility
15    must pay a penalty of $20 per ton of excess carbon dioxide
16    emissions not to exceed $40,000,000, in any given year
17    which shall be deposited into the Energy Efficiency Trust
18    Fund and distributed pursuant to subsection (b) of Section
19    6-6 of the Renewable Energy, Energy Efficiency, and Coal
20    Resources Development Law of 1997. On or before the 5-year
21    anniversary of the execution of the contract and every 5
22    years thereafter, an expert hired by the owner of the
23    facility with the approval of the Attorney General shall
24    conduct an analysis to determine the cost of sequestration
25    of at least 90% of the total carbon dioxide emissions the
26    plant would otherwise emit. If the analysis shows that the

 

 

SB0262 Engrossed- 225 -LRB100 05183 HLH 15193 b

1    actual annual cost is greater than the penalty, then the
2    penalty shall be increased to equal the actual cost.
3    Provided, however, to the extent that the owner of the
4    facility described in subsection (h) of this Section can
5    demonstrate that the failure was as a result of acts of God
6    (including fire, flood, earthquake, tornado, lightning,
7    hurricane, or other natural disaster); any amendment,
8    modification, or abrogation of any applicable law or
9    regulation that would prevent performance; war; invasion;
10    act of foreign enemies; hostilities (regardless of whether
11    war is declared); civil war; rebellion; revolution;
12    insurrection; military or usurped power or confiscation;
13    terrorist activities; civil disturbance; riots;
14    nationalization; sabotage; blockage; or embargo, the owner
15    of the facility described in subsection (h) of this Section
16    shall not be subject to a penalty if and only if (i) it
17    promptly provides notice of its failure to the Commission;
18    (ii) as soon as practicable and consistent with any order
19    or direction from the Commission, it submits to the
20    Commission proposed modifications to its carbon capture
21    and sequestration plan; and (iii) it carries out its
22    proposed modifications in the manner and time directed by
23    the Commission.
24        If the Commission finds that the facility has not
25    satisfied each of these requirements, then the facility
26    shall be subject to the penalty. If the owner of the clean

 

 

SB0262 Engrossed- 226 -LRB100 05183 HLH 15193 b

1    coal SNG facility captured and sequestered more than 90% of
2    the total carbon dioxide emissions that the facility would
3    otherwise emit, then the owner of the facility may credit
4    such additional amounts to reduce the amount of any future
5    penalty to be paid. The penalty resulting from the failure
6    to capture and sequester at least the minimum amount of
7    carbon dioxide shall not be passed on to a utility or its
8    customers.
9        If the clean coal SNG facility fails to meet the
10    requirements specified in this subsection (h-5), then the
11    Attorney General, on behalf of the People of the State of
12    Illinois, shall bring an action to enforce the obligations
13    related to the facility set forth in this subsection (h-5),
14    including any penalty payments owed, but not including the
15    physical obligation to capture and sequester at least 90%
16    of the total carbon dioxide emissions that the facility
17    would otherwise emit. Such action may be filed in any
18    circuit court in Illinois. By entering into a contract
19    pursuant to subsection (h) of this Section, the clean coal
20    SNG facility agrees to waive any objections to venue or to
21    the jurisdiction of the court with regard to the Attorney
22    General's action under this subsection (h-5).
23        Compliance with the sequestration requirements and any
24    penalty requirements specified in this subsection (h-5)
25    for the clean coal SNG facility shall be assessed annually
26    by the Commission, which may in its discretion retain an

 

 

SB0262 Engrossed- 227 -LRB100 05183 HLH 15193 b

1    expert to facilitate its assessment. If any expert is
2    retained by the Commission, then the clean coal SNG
3    facility shall pay for the expert's reasonable fees, and
4    such costs shall not be passed through to the utility or
5    its customers.
6        In addition, carbon dioxide emission credits received
7    by the clean coal SNG facility in connection with
8    sequestration of carbon dioxide from the facility must be
9    sold in a timely fashion with any revenue, less applicable
10    fees and expenses and any expenses required to be paid by
11    facility for carbon dioxide transportation or
12    sequestration, deposited into the reconciliation account
13    within 30 days after receipt of such funds by the owner of
14    the clean coal SNG facility.
15        The clean coal SNG facility is prohibited from
16    transporting or sequestering carbon dioxide unless the
17    owner of the carbon dioxide pipeline that transfers the
18    carbon dioxide from the facility and the owner of the
19    sequestration site where the carbon dioxide captured by the
20    facility is stored has acquired all applicable permits
21    under applicable State and federal laws, statutes, rules,
22    or regulations prior to the transfer or sequestration of
23    carbon dioxide. The responsibility for compliance with the
24    sequestration requirements specified in this subsection
25    (h-5) for the clean coal SNG facility shall reside solely
26    with the clean coal SNG facility, regardless of whether the

 

 

SB0262 Engrossed- 228 -LRB100 05183 HLH 15193 b

1    facility has contracted with another party to capture,
2    transport, or sequester carbon dioxide.
3        (C) If, in any year, the owner of a clean coal SNG
4    brownfield facility fails to demonstrate that the clean
5    coal SNG brownfield facility captured and sequestered at
6    least 85% of the total carbon dioxide emissions that the
7    facility would otherwise emit, then the owner of the clean
8    coal SNG brownfield facility must pay a penalty of $20 per
9    ton of excess carbon emissions up to $20,000,000, which
10    shall be deposited into the Energy Efficiency Trust Fund
11    and distributed pursuant to subsection (b) of Section 6-6
12    of the Renewable Energy, Energy Efficiency, and Coal
13    Resources Development Law of 1997. Provided, however, to
14    the extent that the owner of the clean coal SNG brownfield
15    facility can demonstrate that the failure was as a result
16    of acts of God (including fire, flood, earthquake, tornado,
17    lightning, hurricane, or other natural disaster); any
18    amendment, modification, or abrogation of any applicable
19    law or regulation that would prevent performance; war;
20    invasion; act of foreign enemies; hostilities (regardless
21    of whether war is declared); civil war; rebellion;
22    revolution; insurrection; military or usurped power or
23    confiscation; terrorist activities; civil disturbances;
24    riots; nationalization; sabotage; blockage; or embargo,
25    the owner of the clean coal SNG brownfield facility shall
26    not be subject to a penalty if and only if (i) it promptly

 

 

SB0262 Engrossed- 229 -LRB100 05183 HLH 15193 b

1    provides notice of its failure to the Commission; (ii) as
2    soon as practicable and consistent with any order or
3    direction from the Commission, it submits to the Commission
4    proposed modifications to its carbon capture and
5    sequestration plan; and (iii) it carries out its proposed
6    modifications in the manner and time directed by the
7    Commission. If the Commission finds that the facility has
8    not satisfied each of these requirements, then the facility
9    shall be subject to the penalty. If the owner of a clean
10    coal SNG brownfield facility demonstrates that the clean
11    coal SNG brownfield facility captured and sequestered more
12    than 85% of the total carbon emissions that the facility
13    would otherwise emit, the owner of the clean coal SNG
14    brownfield facility may credit such additional amounts to
15    reduce the amount of any future penalty to be paid. The
16    penalty resulting from the failure to capture and sequester
17    at least the minimum amount of carbon dioxide shall not be
18    passed on to a utility or its customers.
19        In addition to any penalty for the clean coal SNG
20    brownfield facility's failure to capture and sequester at
21    least its minimum sequestration requirement, the Attorney
22    General, on behalf of the People of the State of Illinois,
23    shall bring an action for specific performance of this
24    subsection (h-5). Such action may be filed in any circuit
25    court in Illinois. By entering into a sourcing agreement
26    pursuant to subsection (h-1) of this Section, the clean

 

 

SB0262 Engrossed- 230 -LRB100 05183 HLH 15193 b

1    coal SNG brownfield facility agrees to waive any objections
2    to venue or to the jurisdiction of the court with regard to
3    the Attorney General's action for specific performance
4    under this subsection (h-5).
5        Compliance with the sequestration requirements and
6    penalty requirements specified in this subsection (h-5)
7    for the clean coal SNG brownfield facility shall be
8    assessed annually by the Commission, which may in its
9    discretion retain an expert to facilitate its assessment.
10    If an expert is retained by the Commission, then the clean
11    coal SNG brownfield facility shall pay for the expert's
12    reasonable fees, and such costs shall not be passed through
13    to a utility or its customers. A SNG facility operating
14    pursuant to this subsection (h-5) shall not forfeit its
15    designation as a clean coal SNG facility or a clean coal
16    SNG brownfield facility if the facility fails to fully
17    comply with the applicable carbon sequestration
18    requirements in any given year, provided the requisite
19    offsets are purchased or requisite penalties are paid.
20        Responsibility for compliance with the sequestration
21    requirements specified in this subsection (h-5) for the
22    clean coal SNG brownfield facility shall reside solely with
23    the clean coal SNG brownfield facility regardless of
24    whether the facility has contracted with another party to
25    capture, transport, or sequester carbon dioxide.
26    (h-7) Sequestration permitting, oversight, and

 

 

SB0262 Engrossed- 231 -LRB100 05183 HLH 15193 b

1investigations.
2        (1) No clean coal facility or clean coal SNG brownfield
3    facility may transport or sequester carbon dioxide unless
4    the Commission approves the method of carbon dioxide
5    transportation or sequestration. Such approval shall be
6    required regardless of whether the facility has contracted
7    with another to transport or sequester the carbon dioxide.
8    Nothing in this subsection (h-7) shall release the owner or
9    operator of a carbon dioxide sequestration site or carbon
10    dioxide pipeline from any other permitting requirements
11    under applicable State and federal laws, statutes, rules,
12    or regulations.
13        (2) The Commission shall review carbon dioxide
14    transportation and sequestration methods proposed by a
15    clean coal facility or a clean coal SNG brownfield facility
16    and shall approve those methods it deems reasonable and
17    cost-effective. For purposes of this review,
18    "cost-effective" means a commercially reasonable price for
19    similar carbon dioxide transportation or sequestration
20    techniques. In determining whether sequestration is
21    reasonable and cost-effective, the Commission may consult
22    with the Illinois State Geological Survey and retain third
23    parties to assist in its determination, provided that such
24    third parties shall not own or control any direct or
25    indirect interest in the facility that is proposing the
26    carbon dioxide transportation or the carbon dioxide

 

 

SB0262 Engrossed- 232 -LRB100 05183 HLH 15193 b

1    sequestration method and shall have no contractual
2    relationship with that facility. If a third party is
3    retained by the Commission, then the facility proposing the
4    carbon dioxide transportation or sequestration method
5    shall pay for the expert's reasonable fees, and these costs
6    shall not be passed through to a utility or its customers.
7        No later than 6 months prior to the date upon which the
8    owner intends to commence construction of a clean coal
9    facility or the clean coal SNG brownfield facility, the
10    owner of the facility shall file with the Commission a
11    carbon dioxide transportation or sequestration plan. The
12    Commission shall hold a public hearing within 30 days after
13    receipt of the facility's carbon dioxide transportation or
14    sequestration plan. The Commission shall post notice of the
15    review on its website upon submission of a carbon dioxide
16    transportation or sequestration method and shall accept
17    written public comments. The Commission shall take the
18    comments into account when making its decision.
19        The Commission may not approve a carbon dioxide
20    sequestration method if the owner or operator of the
21    sequestration site has not received (i) an Underground
22    Injection Control permit from the United States
23    Environmental Protection Agency, or from the Illinois
24    Environmental Protection Agency pursuant to the
25    Environmental Protection Act; (ii) an Underground
26    Injection Control permit from the Illinois Department of

 

 

SB0262 Engrossed- 233 -LRB100 05183 HLH 15193 b

1    Natural Resources pursuant to the Illinois Oil and Gas Act;
2    or (iii) an Underground Injection Control permit from the
3    United States Environmental Protection Agency or a permit
4    similar to items (i) or (ii) from the state in which the
5    sequestration site is located if the sequestration will
6    take place outside of Illinois. The Commission shall
7    approve or deny the carbon dioxide transportation or
8    sequestration method within 90 days after the receipt of
9    all required information.
10        (3) At least annually, the Illinois Environmental
11    Protection Agency shall inspect all carbon dioxide
12    sequestration sites in Illinois. The Illinois
13    Environmental Protection Agency may, as often as deemed
14    necessary, monitor and conduct investigations of those
15    sites. The owner or operator of the sequestration site must
16    cooperate with the Illinois Environmental Protection
17    Agency investigations of carbon dioxide sequestration
18    sites.
19        If the Illinois Environmental Protection Agency
20    determines at any time a site creates conditions that
21    warrant the issuance of a seal order under Section 34 of
22    the Environmental Protection Act, then the Illinois
23    Environmental Protection Agency shall seal the site
24    pursuant to the Environmental Protection Act. If the
25    Illinois Environmental Protection Agency determines at any
26    time a carbon dioxide sequestration site creates

 

 

SB0262 Engrossed- 234 -LRB100 05183 HLH 15193 b

1    conditions that warrant the institution of a civil action
2    for an injunction under Section 43 of the Environmental
3    Protection Act, then the Illinois Environmental Protection
4    Agency shall request the State's Attorney or the Attorney
5    General institute such action. The Illinois Environmental
6    Protection Agency shall provide notice of any such actions
7    as soon as possible on its website. The SNG facility shall
8    incur all reasonable costs associated with any such
9    inspection or monitoring of the sequestration sites, and
10    these costs shall not be recoverable from utilities or
11    their customers.
12        (4) (Blank).
13    (h-9) The clean coal SNG brownfield facility shall have the
14right to recover prudently incurred increased costs or reduced
15revenue resulting from any new or amendatory legislation or
16other action. The State of Illinois pledges that the State will
17not enact any law or take any action to:
18        (1) break, or repeal the authority for, sourcing
19    agreements approved by the Commission and entered into
20    between public utilities and the clean coal SNG brownfield
21    facility;
22        (2) deny public utilities full cost recovery for their
23    costs incurred under those sourcing agreements; or
24        (3) deny the clean coal SNG brownfield facility full
25    cost and revenue recovery as provided under those sourcing
26    agreements that are recoverable pursuant to subsection

 

 

SB0262 Engrossed- 235 -LRB100 05183 HLH 15193 b

1    (h-3) of this Section.
2    These pledges are for the benefit of the parties to those
3sourcing agreements and the issuers and holders of bonds or
4other obligations issued or incurred to finance or refinance
5the clean coal SNG brownfield facility. The clean coal SNG
6brownfield facility is authorized to include and refer to these
7pledges in any financing agreement into which it may enter in
8regard to those sourcing agreements.
9    The State of Illinois retains and reserves all other rights
10to enact new or amendatory legislation or take any other
11action, without impairment of the right of the clean coal SNG
12brownfield facility to recover prudently incurred increased
13costs or reduced revenue resulting from the new or amendatory
14legislation or other action, including, but not limited to,
15such legislation or other action that would (i) directly or
16indirectly raise the costs the clean coal SNG brownfield
17facility must incur; (ii) directly or indirectly place
18additional restrictions, regulations, or requirements on the
19clean coal SNG brownfield facility; (iii) prohibit
20sequestration in general or prohibit a specific sequestration
21method or project; or (iv) increase minimum sequestration
22requirements for the clean coal SNG brownfield facility to the
23extent technically feasible. The clean coal SNG brownfield
24facility shall have the right to recover prudently incurred
25increased costs or reduced revenue resulting from the new or
26amendatory legislation or other action as described in this

 

 

SB0262 Engrossed- 236 -LRB100 05183 HLH 15193 b

1subsection (h-9).
2    (h-10) Contract costs for SNG incurred by an Illinois gas
3utility are reasonable and prudent and recoverable through the
4purchased gas adjustment clause and are not subject to review
5or disallowance by the Commission. Contract costs are costs
6incurred by the utility under the terms of a contract that
7incorporates the terms stated in subsection (h) of this Section
8as confirmed in writing by the Illinois Power Agency as set
9forth in subsection (h) of this Section, which confirmation
10shall be deemed conclusive, or as a consequence of or condition
11to its performance under the contract, including (i) amounts
12paid for SNG under the SNG contract and (ii) costs of
13transportation and storage services of SNG purchased from
14interstate pipelines under federally approved tariffs. The
15Illinois gas utility shall initiate a clean coal SNG facility
16rider mechanism that (A) shall be applicable to all customers
17who receive transportation service from the utility, (B) shall
18be designed to have an equal percentage impact on the
19transportation services rates of each class of the utility's
20total customers, and (C) shall accurately reflect the net
21customer savings, if any, and above market costs, if any, under
22the SNG contract. Any contract, the terms of which have been
23confirmed in writing by the Illinois Power Agency as set forth
24in subsection (h) of this Section and the performance of the
25parties under such contract cannot be grounds for challenging
26prudence or cost recovery by the utility through the purchased

 

 

SB0262 Engrossed- 237 -LRB100 05183 HLH 15193 b

1gas adjustment clause, and in such cases, the Commission is
2directed not to consider, and has no authority to consider, any
3attempted challenges.
4    The contracts entered into by Illinois gas utilities
5pursuant to subsection (h) of this Section shall provide that
6the utility retains the right to terminate the contract without
7further obligation or liability to any party if the contract
8has been impaired as a result of any legislative,
9administrative, judicial, or other governmental action that is
10taken that eliminates all or part of the prudence protection of
11this subsection (h-10) or denies the recoverability of all or
12part of the contract costs through the purchased gas adjustment
13clause. Should any Illinois gas utility exercise its right
14under this subsection (h-10) to terminate the contract, all
15contract costs incurred prior to termination are and will be
16deemed reasonable, prudent, and recoverable as and when
17incurred and not subject to review or disallowance by the
18Commission. Any order, issued by the State requiring or
19authorizing the discontinuation of the merchant function,
20defined as the purchase and sale of natural gas by an Illinois
21gas utility for the ultimate consumer in its service territory
22shall include provisions necessary to prevent the impairment of
23the value of any contract hereunder over its full term.
24    (h-11) All costs incurred by an Illinois gas utility in
25procuring SNG from a clean coal SNG brownfield facility
26pursuant to subsection (h-1) or a third-party marketer pursuant

 

 

SB0262 Engrossed- 238 -LRB100 05183 HLH 15193 b

1to subsection (h-1) are reasonable and prudent and recoverable
2through the purchased gas adjustment clause in conjunction with
3a SNG brownfield facility rider mechanism and are not subject
4to review or disallowance by the Commission; provided that if a
5utility is required by law or otherwise elects to connect the
6clean coal SNG brownfield facility to an interstate pipeline,
7then the utility shall be entitled to recover pursuant to its
8tariffs all just and reasonable costs that are prudently
9incurred. Sourcing agreement costs are costs incurred by the
10utility under the terms of a sourcing agreement that
11incorporates the terms stated in subsection (h-1) of this
12Section as approved by the Commission as set forth in
13subsection (h-4) of this Section, which approval shall be
14deemed conclusive, or as a consequence of or condition to its
15performance under the contract, including (i) amounts paid for
16SNG under the SNG contract and (ii) costs of transportation and
17storage services of SNG purchased from interstate pipelines
18under federally approved tariffs. Any sourcing agreement, the
19terms of which have been approved by the Commission as set
20forth in subsection (h-4) of this Section, and the performance
21of the parties under the sourcing agreement cannot be grounds
22for challenging prudence or cost recovery by the utility, and
23in these cases, the Commission is directed not to consider, and
24has no authority to consider, any attempted challenges.
25    (h-15) Reconciliation account. The clean coal SNG facility
26shall establish a reconciliation account for the benefit of the

 

 

SB0262 Engrossed- 239 -LRB100 05183 HLH 15193 b

1retail customers of the utilities that have entered into
2contracts with the clean coal SNG facility pursuant to
3subsection (h). The reconciliation account shall be maintained
4and administered by an independent trustee that is mutually
5agreed upon by the owners of the clean coal SNG facility, the
6utilities, and the Commission in an interest-bearing account in
7accordance with the following:
8        (1) The clean coal SNG facility shall conduct an
9    analysis annually within 60 days after receiving the
10    necessary cost information, which shall be provided by the
11    gas utility within 6 months after the end of the preceding
12    calendar year, to determine (i) the average annual contract
13    SNG cost, which shall be calculated as the total amount
14    paid for SNG purchased from the clean coal SNG facility
15    over the preceding 12 months, plus the cost to the utility
16    of the required transportation and storage services of SNG,
17    divided by the total number of MMBtus of SNG actually
18    purchased from the clean coal SNG facility in the preceding
19    12 months under the utility contract; (ii) the average
20    annual natural gas purchase cost, which shall be calculated
21    as the total annual supply costs paid for baseload natural
22    gas (excluding any SNG) purchased by such utility over the
23    preceding 12 months plus the costs of transportation and
24    storage services of such natural gas (excluding such costs
25    for SNG), divided by the total number of MMbtus of baseload
26    natural gas (excluding SNG) actually purchased by the

 

 

SB0262 Engrossed- 240 -LRB100 05183 HLH 15193 b

1    utility during the year; (iii) the cost differential, which
2    shall be the difference between the average annual contract
3    SNG cost and the average annual natural gas purchase cost;
4    and (iv) the revenue share target which shall be the cost
5    differential multiplied by the total amount of SNG
6    purchased over the preceding 12 months under such utility
7    contract.
8            (A) To the extent the annual average contract SNG
9        cost is less than the annual average natural gas
10        purchase cost, the utility shall credit an amount equal
11        to the revenue share target to the reconciliation
12        account. Such credit payment shall be made monthly
13        starting within 30 days after the completed analysis in
14        this subsection (h-15) and based on collections from
15        all customers via a line item charge in all customer
16        bills designed to have an equal percentage impact on
17        the transportation services of each class of
18        customers. Credit payments made pursuant to this
19        subparagraph (A) shall be deemed prudent and
20        reasonable and not subject to Commission prudence
21        review.
22            (B) To the extent the annual average contract SNG
23        cost is greater than the annual average natural gas
24        purchase cost, the reconciliation account shall be
25        used to provide a credit equal to the revenue share
26        target to the utilities to be used to reduce the

 

 

SB0262 Engrossed- 241 -LRB100 05183 HLH 15193 b

1        utility's natural gas costs through the purchased gas
2        adjustment clause. Such payment shall be made within 30
3        days after the completed analysis pursuant to this
4        subsection (h-15), but only to the extent that the
5        reconciliation account has a positive balance.
6        (2) At the conclusion of the term of the SNG contracts
7    pursuant to subsection (h) and the completion of the final
8    annual analysis pursuant to this subsection (h-15), to the
9    extent the facility owes any amount to retail customers,
10    amounts in the account shall be credited to retail
11    customers to the extent the owed amount is repaid; 50% of
12    any additional amount in the reconciliation account shall
13    be distributed to the utilities to be used to reduce the
14    utilities' natural gas costs through the purchase gas
15    adjustment clause with the remaining amount distributed to
16    the clean coal SNG facility. Such payment shall be made
17    within 30 days after the last completed analysis pursuant
18    to this subsection (h-15). If the facility has repaid all
19    owed amounts, if any, to retail customers and has
20    distributed 50% of any additional amount in the account to
21    the utilities, then the owners of the clean coal SNG
22    facility shall have no further obligation to the utility or
23    the retail customers.
24        If, at the conclusion of the term of the contracts
25    pursuant to subsection (h) and the completion of the final
26    annual analysis pursuant to this subsection (h-15), the

 

 

SB0262 Engrossed- 242 -LRB100 05183 HLH 15193 b

1    facility owes any amount to retail customers and the
2    account has been depleted, then the clean coal SNG facility
3    shall be liable for any remaining amount owed to the retail
4    customers. The clean coal SNG facility shall market the
5    daily production of SNG and distribute on a monthly basis
6    5% of the amounts collected with respect to such future
7    sales to the utilities in proportion to each utility's SNG
8    contract to be used to reduce the utility's natural gas
9    costs through the purchase gas adjustment clause; such
10    payments to the utility shall continue until either 15
11    years after the conclusion of the contract or such time as
12    the sum of such payments equals the remaining amount owed
13    to the retail customers at the end of the contract,
14    whichever is earlier. If the debt to the retail customers
15    is not repaid within 15 years after the conclusion of the
16    contract, then the owner of the clean coal SNG facility
17    must sell the facility, and all proceeds from that sale
18    must be used to repay any amount owed to the retail
19    customers under this subsection (h-15).
20        The retail customers shall have first priority in
21    recovering that debt above any creditors, except the
22    secured lenders to the extent that the secured lenders have
23    any secured debt outstanding, including any parent
24    companies or affiliates of the clean coal SNG facility.
25        (3) 50% of all additional net revenue, defined as
26    miscellaneous net revenue after cost allowance and above

 

 

SB0262 Engrossed- 243 -LRB100 05183 HLH 15193 b

1    the budgeted estimate established for revenue pursuant to
2    subsection (h), including sale of substitute natural gas
3    derived from the clean coal SNG facility above the
4    nameplate capacity of the facility and other by-products
5    produced by the facility, shall be credited to the
6    reconciliation account on an annual basis with such payment
7    made within 30 days after the end of each calendar year
8    during the term of the contract.
9        (4) The clean coal SNG facility shall each year,
10    starting in the facility's first year of commercial
11    operation, file with the Commission, in such form as the
12    Commission shall require, a report as to the reconciliation
13    account. The annual report must contain the following
14    information:
15            (A) the revenue share target amount;
16            (B) the amount credited or debited to the
17        reconciliation account during the year;
18            (C) the amount credited to the utilities to be used
19        to reduce the utilities natural gas costs though the
20        purchase gas adjustment clause;
21            (D) the total amount of reconciliation account at
22        the beginning and end of the year;
23            (E) the total amount of consumer savings to date;
24        and
25            (F) any additional information the Commission may
26        require.

 

 

SB0262 Engrossed- 244 -LRB100 05183 HLH 15193 b

1    When any report is erroneous or defective or appears to the
2Commission to be erroneous or defective, the Commission may
3notify the clean coal SNG facility to amend the report within
430 days; before or after the termination of the 30-day period,
5the Commission may examine the trustee of the reconciliation
6account or the officers, agents, employees, books, records, or
7accounts of the clean coal SNG facility and correct such items
8in the report as upon such examination the Commission may find
9defective or erroneous. All reports shall be under oath.
10    All reports made to the Commission by the clean coal SNG
11facility and the contents of the reports shall be open to
12public inspection and shall be deemed a public record under the
13Freedom of Information Act. Such reports shall be preserved in
14the office of the Commission. The Commission shall publish an
15annual summary of the reports prior to February 1 of the
16following year. The annual summary shall be made available to
17the public on the Commission's website and shall be submitted
18to the General Assembly.
19    Any facility that fails to file the report required under
20this paragraph (4) to the Commission within the time specified
21or to make specific answer to any question propounded by the
22Commission within 30 days after the time it is lawfully
23required to do so, or within such further time not to exceed 90
24days as may be allowed by the Commission in its discretion,
25shall pay a penalty of $500 to the Commission for each day it
26is in default.

 

 

SB0262 Engrossed- 245 -LRB100 05183 HLH 15193 b

1    Any person who willfully makes any false report to the
2Commission or to any member, officer, or employee thereof, any
3person who willfully in a report withholds or fails to provide
4material information to which the Commission is entitled under
5this paragraph (4) and which information is either required to
6be filed by statute, rule, regulation, order, or decision of
7the Commission or has been requested by the Commission, and any
8person who willfully aids or abets such person shall be guilty
9of a Class A misdemeanor.
10    (h-20) The General Assembly authorizes the Illinois
11Finance Authority to issue bonds to the maximum extent
12permitted to finance coal gasification facilities described in
13this Section, which constitute both "industrial projects"
14under Article 801 of the Illinois Finance Authority Act and
15"clean coal and energy projects" under Sections 825-65 through
16825-75 of the Illinois Finance Authority Act.
17    Administrative costs incurred by the Illinois Finance
18Authority in performance of this subsection (h-20) shall be
19subject to reimbursement by the clean coal SNG facility on
20terms as the Illinois Finance Authority and the clean coal SNG
21facility may agree. The utility and its customers shall have no
22obligation to reimburse the clean coal SNG facility or the
23Illinois Finance Authority for any such costs.
24    (h-25) The State of Illinois pledges that the State may not
25enact any law or take any action to (1) break or repeal the
26authority for SNG purchase contracts entered into between

 

 

SB0262 Engrossed- 246 -LRB100 05183 HLH 15193 b

1public gas utilities and the clean coal SNG facility pursuant
2to subsection (h) of this Section or (2) deny public gas
3utilities their full cost recovery for contract costs, as
4defined in subsection (h-10), that are incurred under such SNG
5purchase contracts. These pledges are for the benefit of the
6parties to such SNG purchase contracts and the issuers and
7holders of bonds or other obligations issued or incurred to
8finance or refinance the clean coal SNG facility. The
9beneficiaries are authorized to include and refer to these
10pledges in any finance agreement into which they may enter in
11regard to such contracts.
12    (h-30) The State of Illinois retains and reserves all other
13rights to enact new or amendatory legislation or take any other
14action, including, but not limited to, such legislation or
15other action that would (1) directly or indirectly raise the
16costs that the clean coal SNG facility must incur; (2) directly
17or indirectly place additional restrictions, regulations, or
18requirements on the clean coal SNG facility; (3) prohibit
19sequestration in general or prohibit a specific sequestration
20method or project; or (4) increase minimum sequestration
21requirements.
22    (i) If a gas utility or an affiliate of a gas utility has
23an ownership interest in any entity that produces or sells
24synthetic natural gas, Article VII of this Act shall apply.
25(Source: P.A. 97-96, eff. 7-13-11; 97-239, eff. 8-2-11; 97-630,
26eff. 12-8-11; 97-906, eff. 8-7-12; 97-1081, eff. 8-24-12;

 

 

SB0262 Engrossed- 247 -LRB100 05183 HLH 15193 b

198-463, eff. 8-16-13.)
 
2    Section 145. The Illinois Horse Racing Act of 1975 is
3amended by changing Sections 12.1 and 12.2 as follows:
 
4    (230 ILCS 5/12.1)  (from Ch. 8, par. 37-12.1)
5    Sec. 12.1. (a) The General Assembly finds that the Illinois
6Racing Industry does not include a fair proportion of minority
7or female workers.
8    Therefore, the General Assembly urges that the job training
9institutes, trade associations and employers involved in the
10Illinois Horse Racing Industry take affirmative action to
11encourage equal employment opportunity to all workers
12regardless of race, color, creed or sex.
13    Before an organization license, inter-track wagering
14license or inter-track wagering location license can be
15granted, the applicant for any such license shall execute and
16file with the Board a good faith affirmative action plan to
17recruit, train and upgrade minorities and females in all
18classifications with the applicant for license. One year after
19issuance of any such license, and each year thereafter, the
20licensee shall file a report with the Board evidencing and
21certifying compliance with the originally filed affirmative
22action plan.
23    (b) At least 10% of the total amount of all State contracts
24for the infrastructure improvement of any race track grounds in

 

 

SB0262 Engrossed- 248 -LRB100 05183 HLH 15193 b

1this State shall be let to minority-owned minority owned
2businesses or women-owned female owned businesses. "State
3contract", "minority-owned minority owned business" and
4"women-owned female owned business" shall have the meanings
5ascribed to them under the Business Enterprise for Minorities,
6Women Females, and Persons with Disabilities Act.
7(Source: P.A. 92-16, eff. 6-28-01.)
 
8    (230 ILCS 5/12.2)
9    Sec. 12.2. Business enterprise program.
10    (a) For the purposes of this Section, the terms "minority",
11"minority-owned minority owned business", "woman female",
12"women-owned female owned business", "person with a
13disability", and "business owned by a person with a disability"
14have the meanings ascribed to them in the Business Enterprise
15for Minorities, Women Females, and Persons with Disabilities
16Act.
17    (b) The Board shall, by rule, establish goals for the award
18of contracts by each organization licensee or inter-track
19wagering licensee to businesses owned by minorities, women
20females, and persons with disabilities, expressed as
21percentages of an organization licensee's or inter-track
22wagering licensee's total dollar amount of contracts awarded
23during each calendar year. Each organization licensee or
24inter-track wagering licensee must make every effort to meet
25the goals established by the Board pursuant to this Section.

 

 

SB0262 Engrossed- 249 -LRB100 05183 HLH 15193 b

1When setting the goals for the award of contracts, the Board
2shall not include contracts where: (1) licensees are purchasing
3goods or services from vendors or suppliers or in markets where
4there are no or a limited number of minority-owned minority
5owned businesses, women-owned women owned businesses, or
6businesses owned by persons with disabilities that would be
7sufficient to satisfy the goal; (2) there are no or a limited
8number of suppliers licensed by the Board; (3) the licensee or
9its parent company owns a company that provides the goods or
10services; or (4) the goods or services are provided to the
11licensee by a publicly traded company.
12    (c) Each organization licensee or inter-track wagering
13licensee shall file with the Board an annual report of its
14utilization of minority-owned minority owned businesses,
15women-owned female owned businesses, and businesses owned by
16persons with disabilities during the preceding calendar year.
17The reports shall include a self-evaluation of the efforts of
18the organization licensee or inter-track wagering licensee to
19meet its goals under this Section.
20    (d) The organization licensee or inter-track wagering
21licensee shall have the right to request a waiver from the
22requirements of this Section. The Board shall grant the waiver
23where the organization licensee or inter-track wagering
24licensee demonstrates that there has been made a good faith
25effort to comply with the goals for participation by
26minority-owned minority owned businesses, women-owned female

 

 

SB0262 Engrossed- 250 -LRB100 05183 HLH 15193 b

1owned businesses, and businesses owned by persons with
2disabilities.
3    (e) If the Board determines that its goals and policies are
4not being met by any organization licensee or inter-track
5wagering licensee, then the Board may:
6        (1) adopt remedies for such violations; and
7        (2) recommend that the organization licensee or
8    inter-track wagering licensee provide additional
9    opportunities for participation by minority-owned minority
10    owned businesses, women-owned female owned businesses, and
11    businesses owned by persons with disabilities; such
12    recommendations may include, but shall not be limited to:
13            (A) assurances of stronger and better focused
14        solicitation efforts to obtain more minority-owned
15        minority owned businesses, women-owned female owned
16        businesses, and businesses owned by persons with
17        disabilities as potential sources of supply;
18            (B) division of job or project requirements, when
19        economically feasible, into tasks or quantities to
20        permit participation of minority-owned minority owned
21        businesses, women-owned female owned businesses, and
22        businesses owned by persons with disabilities;
23            (C) elimination of extended experience or
24        capitalization requirements, when programmatically
25        feasible, to permit participation of minority-owned
26        minority owned businesses, women-owned female owned

 

 

SB0262 Engrossed- 251 -LRB100 05183 HLH 15193 b

1        businesses, and businesses owned by persons with
2        disabilities;
3            (D) identification of specific proposed contracts
4        as particularly attractive or appropriate for
5        participation by minority-owned minority owned
6        businesses, women-owned female owned businesses, and
7        businesses owned by persons with disabilities, such
8        identification to result from and be coupled with the
9        efforts of items (A) through (C); and
10            (E) implementation of regulations established for
11        the use of the sheltered market process.
12    (f) The Board shall file, no later than March 1 of each
13year, an annual report that shall detail the level of
14achievement toward the goals specified in this Section over the
153 most recent fiscal years. The annual report shall include,
16but need not be limited to:
17        (1) a summary detailing expenditures subject to the
18    goals, the actual goals specified, and the goals attained
19    by each organization licensee or inter-track wagering
20    licensee;
21        (2) a summary of the number of contracts awarded and
22    the average contract amount by each organization licensee
23    or inter-track wagering licensee;
24        (3) an analysis of the level of overall goal
25    achievement concerning purchases from minority-owned
26    minority owned businesses, women-owned female owned

 

 

SB0262 Engrossed- 252 -LRB100 05183 HLH 15193 b

1    businesses, and businesses owned by persons with
2    disabilities;
3        (4) an analysis of the number of minority-owned
4    minority owned businesses, women-owned female owned
5    businesses, and businesses owned by persons with
6    disabilities that are certified under the program as well
7    as the number of those businesses that received State
8    procurement contracts; and
9        (5) (blank).
10(Source: P.A. 98-490, eff. 8-16-13; 99-78, eff. 7-20-15;
1199-891, eff. 1-1-17.)
 
12    Section 150. The Riverboat Gambling Act is amended by
13changing Sections 4, 7, 7.1, 7.4, 7.6, and 11.2 as follows:
 
14    (230 ILCS 10/4)  (from Ch. 120, par. 2404)
15    Sec. 4. Definitions. As used in this Act:
16    (a) "Board" means the Illinois Gaming Board.
17    (b) "Occupational license" means a license issued by the
18Board to a person or entity to perform an occupation which the
19Board has identified as requiring a license to engage in
20riverboat gambling in Illinois.
21    (c) "Gambling game" includes, but is not limited to,
22baccarat, twenty-one, poker, craps, slot machine, video game of
23chance, roulette wheel, klondike table, punchboard, faro
24layout, keno layout, numbers ticket, push card, jar ticket, or

 

 

SB0262 Engrossed- 253 -LRB100 05183 HLH 15193 b

1pull tab which is authorized by the Board as a wagering device
2under this Act.
3    (d) "Riverboat" means a self-propelled excursion boat, a
4permanently moored barge, or permanently moored barges that are
5permanently fixed together to operate as one vessel, on which
6lawful gambling is authorized and licensed as provided in this
7Act.
8    (e) "Managers license" means a license issued by the Board
9to a person or entity to manage gambling operations conducted
10by the State pursuant to Section 7.3.
11    (f) "Dock" means the location where a riverboat moors for
12the purpose of embarking passengers for and disembarking
13passengers from the riverboat.
14    (g) "Gross receipts" means the total amount of money
15exchanged for the purchase of chips, tokens or electronic cards
16by riverboat patrons.
17    (h) "Adjusted gross receipts" means the gross receipts less
18winnings paid to wagerers.
19    (i) "Cheat" means to alter the selection of criteria which
20determine the result of a gambling game or the amount or
21frequency of payment in a gambling game.
22    (j) (Blank).
23    (k) "Gambling operation" means the conduct of authorized
24gambling games upon a riverboat.
25    (l) "License bid" means the lump sum amount of money that
26an applicant bids and agrees to pay the State in return for an

 

 

SB0262 Engrossed- 254 -LRB100 05183 HLH 15193 b

1owners license that is re-issued on or after July 1, 2003.
2    (m) The terms "minority person", "woman female", and
3"person with a disability" shall have the same meaning as
4defined in Section 2 of the Business Enterprise for Minorities,
5Women Females, and Persons with Disabilities Act.
6(Source: P.A. 95-331, eff. 8-21-07; 96-1392, eff. 1-1-11.)
 
7    (230 ILCS 10/7)  (from Ch. 120, par. 2407)
8    Sec. 7. Owners Licenses.
9    (a) The Board shall issue owners licenses to persons, firms
10or corporations which apply for such licenses upon payment to
11the Board of the non-refundable license fee set by the Board,
12upon payment of a $25,000 license fee for the first year of
13operation and a $5,000 license fee for each succeeding year and
14upon a determination by the Board that the applicant is
15eligible for an owners license pursuant to this Act and the
16rules of the Board. From the effective date of this amendatory
17Act of the 95th General Assembly until (i) 3 years after the
18effective date of this amendatory Act of the 95th General
19Assembly, (ii) the date any organization licensee begins to
20operate a slot machine or video game of chance under the
21Illinois Horse Racing Act of 1975 or this Act, (iii) the date
22that payments begin under subsection (c-5) of Section 13 of the
23Act, or (iv) the wagering tax imposed under Section 13 of this
24Act is increased by law to reflect a tax rate that is at least
25as stringent or more stringent than the tax rate contained in

 

 

SB0262 Engrossed- 255 -LRB100 05183 HLH 15193 b

1subsection (a-3) of Section 13, whichever occurs first, as a
2condition of licensure and as an alternative source of payment
3for those funds payable under subsection (c-5) of Section 13 of
4the Riverboat Gambling Act, any owners licensee that holds or
5receives its owners license on or after the effective date of
6this amendatory Act of the 94th General Assembly, other than an
7owners licensee operating a riverboat with adjusted gross
8receipts in calendar year 2004 of less than $200,000,000, must
9pay into the Horse Racing Equity Trust Fund, in addition to any
10other payments required under this Act, an amount equal to 3%
11of the adjusted gross receipts received by the owners licensee.
12The payments required under this Section shall be made by the
13owners licensee to the State Treasurer no later than 3:00
14o'clock p.m. of the day after the day when the adjusted gross
15receipts were received by the owners licensee. A person, firm
16or corporation is ineligible to receive an owners license if:
17        (1) the person has been convicted of a felony under the
18    laws of this State, any other state, or the United States;
19        (2) the person has been convicted of any violation of
20    Article 28 of the Criminal Code of 1961 or the Criminal
21    Code of 2012, or substantially similar laws of any other
22    jurisdiction;
23        (3) the person has submitted an application for a
24    license under this Act which contains false information;
25        (4) the person is a member of the Board;
26        (5) a person defined in (1), (2), (3) or (4) is an

 

 

SB0262 Engrossed- 256 -LRB100 05183 HLH 15193 b

1    officer, director or managerial employee of the firm or
2    corporation;
3        (6) the firm or corporation employs a person defined in
4    (1), (2), (3) or (4) who participates in the management or
5    operation of gambling operations authorized under this
6    Act;
7        (7) (blank); or
8        (8) a license of the person, firm or corporation issued
9    under this Act, or a license to own or operate gambling
10    facilities in any other jurisdiction, has been revoked.
11    The Board is expressly prohibited from making changes to
12the requirement that licensees make payment into the Horse
13Racing Equity Trust Fund without the express authority of the
14Illinois General Assembly and making any other rule to
15implement or interpret this amendatory Act of the 95th General
16Assembly. For the purposes of this paragraph, "rules" is given
17the meaning given to that term in Section 1-70 of the Illinois
18Administrative Procedure Act.
19    (b) In determining whether to grant an owners license to an
20applicant, the Board shall consider:
21        (1) the character, reputation, experience and
22    financial integrity of the applicants and of any other or
23    separate person that either:
24            (A) controls, directly or indirectly, such
25        applicant, or
26            (B) is controlled, directly or indirectly, by such

 

 

SB0262 Engrossed- 257 -LRB100 05183 HLH 15193 b

1        applicant or by a person which controls, directly or
2        indirectly, such applicant;
3        (2) the facilities or proposed facilities for the
4    conduct of riverboat gambling;
5        (3) the highest prospective total revenue to be derived
6    by the State from the conduct of riverboat gambling;
7        (4) the extent to which the ownership of the applicant
8    reflects the diversity of the State by including minority
9    persons, women females, and persons with a disability and
10    the good faith affirmative action plan of each applicant to
11    recruit, train and upgrade minority persons, women
12    females, and persons with a disability in all employment
13    classifications;
14        (5) the financial ability of the applicant to purchase
15    and maintain adequate liability and casualty insurance;
16        (6) whether the applicant has adequate capitalization
17    to provide and maintain, for the duration of a license, a
18    riverboat;
19        (7) the extent to which the applicant exceeds or meets
20    other standards for the issuance of an owners license which
21    the Board may adopt by rule; and
22        (8) The amount of the applicant's license bid.
23    (c) Each owners license shall specify the place where
24riverboats shall operate and dock.
25    (d) Each applicant shall submit with his application, on
26forms provided by the Board, 2 sets of his fingerprints.

 

 

SB0262 Engrossed- 258 -LRB100 05183 HLH 15193 b

1    (e) The Board may issue up to 10 licenses authorizing the
2holders of such licenses to own riverboats. In the application
3for an owners license, the applicant shall state the dock at
4which the riverboat is based and the water on which the
5riverboat will be located. The Board shall issue 5 licenses to
6become effective not earlier than January 1, 1991. Three of
7such licenses shall authorize riverboat gambling on the
8Mississippi River, or, with approval by the municipality in
9which the riverboat was docked on August 7, 2003 and with Board
10approval, be authorized to relocate to a new location, in a
11municipality that (1) borders on the Mississippi River or is
12within 5 miles of the city limits of a municipality that
13borders on the Mississippi River and (2), on August 7, 2003,
14had a riverboat conducting riverboat gambling operations
15pursuant to a license issued under this Act; one of which shall
16authorize riverboat gambling from a home dock in the city of
17East St. Louis. One other license shall authorize riverboat
18gambling on the Illinois River south of Marshall County. The
19Board shall issue one additional license to become effective
20not earlier than March 1, 1992, which shall authorize riverboat
21gambling on the Des Plaines River in Will County. The Board may
22issue 4 additional licenses to become effective not earlier
23than March 1, 1992. In determining the water upon which
24riverboats will operate, the Board shall consider the economic
25benefit which riverboat gambling confers on the State, and
26shall seek to assure that all regions of the State share in the

 

 

SB0262 Engrossed- 259 -LRB100 05183 HLH 15193 b

1economic benefits of riverboat gambling.
2    In granting all licenses, the Board may give favorable
3consideration to economically depressed areas of the State, to
4applicants presenting plans which provide for significant
5economic development over a large geographic area, and to
6applicants who currently operate non-gambling riverboats in
7Illinois. The Board shall review all applications for owners
8licenses, and shall inform each applicant of the Board's
9decision. The Board may grant an owners license to an applicant
10that has not submitted the highest license bid, but if it does
11not select the highest bidder, the Board shall issue a written
12decision explaining why another applicant was selected and
13identifying the factors set forth in this Section that favored
14the winning bidder.
15    In addition to any other revocation powers granted to the
16Board under this Act, the Board may revoke the owners license
17of a licensee which fails to begin conducting gambling within
1815 months of receipt of the Board's approval of the application
19if the Board determines that license revocation is in the best
20interests of the State.
21    (f) The first 10 owners licenses issued under this Act
22shall permit the holder to own up to 2 riverboats and equipment
23thereon for a period of 3 years after the effective date of the
24license. Holders of the first 10 owners licenses must pay the
25annual license fee for each of the 3 years during which they
26are authorized to own riverboats.

 

 

SB0262 Engrossed- 260 -LRB100 05183 HLH 15193 b

1    (g) Upon the termination, expiration, or revocation of each
2of the first 10 licenses, which shall be issued for a 3 year
3period, all licenses are renewable annually upon payment of the
4fee and a determination by the Board that the licensee
5continues to meet all of the requirements of this Act and the
6Board's rules. However, for licenses renewed on or after May 1,
71998, renewal shall be for a period of 4 years, unless the
8Board sets a shorter period.
9    (h) An owners license shall entitle the licensee to own up
10to 2 riverboats. A licensee shall limit the number of gambling
11participants to 1,200 for any such owners license. A licensee
12may operate both of its riverboats concurrently, provided that
13the total number of gambling participants on both riverboats
14does not exceed 1,200. Riverboats licensed to operate on the
15Mississippi River and the Illinois River south of Marshall
16County shall have an authorized capacity of at least 500
17persons. Any other riverboat licensed under this Act shall have
18an authorized capacity of at least 400 persons.
19    (i) A licensed owner is authorized to apply to the Board
20for and, if approved therefor, to receive all licenses from the
21Board necessary for the operation of a riverboat, including a
22liquor license, a license to prepare and serve food for human
23consumption, and other necessary licenses. All use, occupation
24and excise taxes which apply to the sale of food and beverages
25in this State and all taxes imposed on the sale or use of
26tangible personal property apply to such sales aboard the

 

 

SB0262 Engrossed- 261 -LRB100 05183 HLH 15193 b

1riverboat.
2    (j) The Board may issue or re-issue a license authorizing a
3riverboat to dock in a municipality or approve a relocation
4under Section 11.2 only if, prior to the issuance or
5re-issuance of the license or approval, the governing body of
6the municipality in which the riverboat will dock has by a
7majority vote approved the docking of riverboats in the
8municipality. The Board may issue or re-issue a license
9authorizing a riverboat to dock in areas of a county outside
10any municipality or approve a relocation under Section 11.2
11only if, prior to the issuance or re-issuance of the license or
12approval, the governing body of the county has by a majority
13vote approved of the docking of riverboats within such areas.
14(Source: P.A. 96-1392, eff. 1-1-11; 97-1150, eff. 1-25-13.)
 
15    (230 ILCS 10/7.1)
16    Sec. 7.1. Re-issuance of revoked or non-renewed owners
17licenses.
18    (a) If an owners license terminates or expires without
19renewal or the Board revokes or determines not to renew an
20owners license (including, without limitation, an owners
21license for a licensee that was not conducting riverboat
22gambling operations on January 1, 1998) and that revocation or
23determination is final, the Board may re-issue such license to
24a qualified applicant pursuant to an open and competitive
25bidding process, as set forth in Section 7.5, and subject to

 

 

SB0262 Engrossed- 262 -LRB100 05183 HLH 15193 b

1the maximum number of authorized licenses set forth in Section
27(e).
3    (b) To be a qualified applicant, a person, firm, or
4corporation cannot be ineligible to receive an owners license
5under Section 7(a) and must submit an application for an owners
6license that complies with Section 6. Each such applicant must
7also submit evidence to the Board that minority persons and
8women females hold ownership interests in the applicant of at
9least 16% and 4% respectively.
10    (c) Notwithstanding anything to the contrary in Section
117(e), an applicant may apply to the Board for approval of
12relocation of a re-issued license to a new home dock location
13authorized under Section 3(c) upon receipt of the approval from
14the municipality or county, as the case may be, pursuant to
15Section 7(j).
16    (d) In determining whether to grant a re-issued owners
17license to an applicant, the Board shall consider all of the
18factors set forth in Sections 7(b) and (e) as well as the
19amount of the applicant's license bid. The Board may grant the
20re-issued owners license to an applicant that has not submitted
21the highest license bid, but if it does not select the highest
22bidder, the Board shall issue a written decision explaining why
23another applicant was selected and identifying the factors set
24forth in Sections 7(b) and (e) that favored the winning bidder.
25    (e) Re-issued owners licenses shall be subject to annual
26license fees as provided for in Section 7(a) and shall be

 

 

SB0262 Engrossed- 263 -LRB100 05183 HLH 15193 b

1governed by the provisions of Sections 7(f), (g), (h), and (i).
2(Source: P.A. 93-28, eff. 6-20-03.)
 
3    (230 ILCS 10/7.4)
4    Sec. 7.4. Managers licenses.
5    (a) A qualified person may apply to the Board for a
6managers license to operate and manage any gambling operation
7conducted by the State. The application shall be made on forms
8provided by the Board and shall contain such information as the
9Board prescribes, including but not limited to information
10required in Sections 6(a), (b), and (c) and information
11relating to the applicant's proposed price to manage State
12gambling operations and to provide the riverboat, gambling
13equipment, and supplies necessary to conduct State gambling
14operations.
15    (b) Each applicant must submit evidence to the Board that
16minority persons and women females hold ownership interests in
17the applicant of at least 16% and 4%, respectively.
18    (c) A person, firm, or corporation is ineligible to receive
19a managers license if:
20        (1) the person has been convicted of a felony under the
21    laws of this State, any other state, or the United States;
22        (2) the person has been convicted of any violation of
23    Article 28 of the Criminal Code of 1961 or the Criminal
24    Code of 2012, or substantially similar laws of any other
25    jurisdiction;

 

 

SB0262 Engrossed- 264 -LRB100 05183 HLH 15193 b

1        (3) the person has submitted an application for a
2    license under this Act which contains false information;
3        (4) the person is a member of the Board;
4        (5) a person defined in (1), (2), (3), or (4) is an
5    officer, director, or managerial employee of the firm or
6    corporation;
7        (6) the firm or corporation employs a person defined in
8    (1), (2), (3), or (4) who participates in the management or
9    operation of gambling operations authorized under this
10    Act; or
11        (7) a license of the person, firm, or corporation
12    issued under this Act, or a license to own or operate
13    gambling facilities in any other jurisdiction, has been
14    revoked.
15    (d) Each applicant shall submit with his or her
16application, on forms prescribed by the Board, 2 sets of his or
17her fingerprints.
18    (e) The Board shall charge each applicant a fee, set by the
19Board, to defray the costs associated with the background
20investigation conducted by the Board.
21    (f) A person who knowingly makes a false statement on an
22application is guilty of a Class A misdemeanor.
23    (g) The managers license shall be for a term not to exceed
2410 years, shall be renewable at the Board's option, and shall
25contain such terms and provisions as the Board deems necessary
26to protect or enhance the credibility and integrity of State

 

 

SB0262 Engrossed- 265 -LRB100 05183 HLH 15193 b

1gambling operations, achieve the highest prospective total
2revenue to the State, and otherwise serve the interests of the
3citizens of Illinois.
4    (h) Issuance of a managers license shall be subject to an
5open and competitive bidding process. The Board may select an
6applicant other than the lowest bidder by price. If it does not
7select the lowest bidder, the Board shall issue a notice of who
8the lowest bidder was and a written decision as to why another
9bidder was selected.
10(Source: P.A. 97-1150, eff. 1-25-13.)
 
11    (230 ILCS 10/7.6)
12    Sec. 7.6. Business enterprise program.
13    (a) For the purposes of this Section, the terms "minority",
14"minority-owned minority owned business", "woman female", "
15women-owned female owned business", "person with a
16disability", and "business owned by a person with a disability"
17have the meanings ascribed to them in the Business Enterprise
18for Minorities, Women Females, and Persons with Disabilities
19Act.
20    (b) The Board shall, by rule, establish goals for the award
21of contracts by each owners licensee to businesses owned by
22minorities, women females, and persons with disabilities,
23expressed as percentages of an owners licensee's total dollar
24amount of contracts awarded during each calendar year. Each
25owners licensee must make every effort to meet the goals

 

 

SB0262 Engrossed- 266 -LRB100 05183 HLH 15193 b

1established by the Board pursuant to this Section. When setting
2the goals for the award of contracts, the Board shall not
3include contracts where: (1) any purchasing mandates would be
4dependent upon the availability of minority-owned minority
5owned businesses, women-owned female owned businesses, and
6businesses owned by persons with disabilities ready, willing,
7and able with capacity to provide quality goods and services to
8a gaming operation at reasonable prices; (2) there are no or a
9limited number of licensed suppliers as defined by this Act for
10the goods or services provided to the licensee; (3) the
11licensee or its parent company owns a company that provides the
12goods or services; or (4) the goods or services are provided to
13the licensee by a publicly traded company.
14    (c) Each owners licensee shall file with the Board an
15annual report of its utilization of minority-owned minority
16owned businesses, women-owned female owned businesses, and
17businesses owned by persons with disabilities during the
18preceding calendar year. The reports shall include a
19self-evaluation of the efforts of the owners licensee to meet
20its goals under this Section.
21    (d) The owners licensee shall have the right to request a
22waiver from the requirements of this Section. The Board shall
23grant the waiver where the owners licensee demonstrates that
24there has been made a good faith effort to comply with the
25goals for participation by minority-owned minority owned
26businesses, women-owned female owned businesses, and

 

 

SB0262 Engrossed- 267 -LRB100 05183 HLH 15193 b

1businesses owned by persons with disabilities.
2    (e) If the Board determines that its goals and policies are
3not being met by any owners licensee, then the Board may:
4        (1) adopt remedies for such violations; and
5        (2) recommend that the owners licensee provide
6    additional opportunities for participation by
7    minority-owned minority owned businesses, women-owned
8    female owned businesses, and businesses owned by persons
9    with disabilities; such recommendations may include, but
10    shall not be limited to:
11            (A) assurances of stronger and better focused
12        solicitation efforts to obtain more minority-owned
13        minority owned businesses, women-owned female owned
14        businesses, and businesses owned by persons with
15        disabilities as potential sources of supply;
16            (B) division of job or project requirements, when
17        economically feasible, into tasks or quantities to
18        permit participation of minority-owned minority owned
19        businesses, women-owned female owned businesses, and
20        businesses owned by persons with disabilities;
21            (C) elimination of extended experience or
22        capitalization requirements, when programmatically
23        feasible, to permit participation of minority-owned
24        minority owned businesses, women-owned female owned
25        businesses, and businesses owned by persons with
26        disabilities;

 

 

SB0262 Engrossed- 268 -LRB100 05183 HLH 15193 b

1            (D) identification of specific proposed contracts
2        as particularly attractive or appropriate for
3        participation by minority-owned minority owned
4        businesses, women-owned female owned businesses, and
5        businesses owned by persons with disabilities, such
6        identification to result from and be coupled with the
7        efforts of items (A) through (C); and
8            (E) implementation of regulations established for
9        the use of the sheltered market process.
10    (f) The Board shall file, no later than March 1 of each
11year, an annual report that shall detail the level of
12achievement toward the goals specified in this Section over the
133 most recent fiscal years. The annual report shall include,
14but need not be limited to:
15        (1) a summary detailing expenditures subject to the
16    goals, the actual goals specified, and the goals attained
17    by each owners licensee; and
18        (2) an analysis of the level of overall goal
19    achievement concerning purchases from minority-owned
20    minority owned businesses, women-owned female owned
21    businesses, and businesses owned by persons with
22    disabilities.
23(Source: P.A. 98-490, eff. 8-16-13; 99-78, eff. 7-20-15.)
 
24    (230 ILCS 10/11.2)
25    Sec. 11.2. Relocation of riverboat home dock.

 

 

SB0262 Engrossed- 269 -LRB100 05183 HLH 15193 b

1    (a) A licensee that was not conducting riverboat gambling
2on January 1, 1998 may apply to the Board for renewal and
3approval of relocation to a new home dock location authorized
4under Section 3(c) and the Board shall grant the application
5and approval upon receipt by the licensee of approval from the
6new municipality or county, as the case may be, in which the
7licensee wishes to relocate pursuant to Section 7(j).
8    (b) Any licensee that relocates its home dock pursuant to
9this Section shall attain a level of at least 20% minority
10person and woman female ownership, at least 16% and 4%
11respectively, within a time period prescribed by the Board, but
12not to exceed 12 months from the date the licensee begins
13conducting gambling at the new home dock location. The 12-month
14period shall be extended by the amount of time necessary to
15conduct a background investigation pursuant to Section 6. For
16the purposes of this Section, the terms "woman female" and
17"minority person" have the meanings provided in Section 2 of
18the Business Enterprise for Minorities, Women Females, and
19Persons with Disabilities Act.
20(Source: P.A. 91-40, eff. 6-25-99.)
 
21    Section 155. The Environmental Protection Act is amended by
22changing Section 14.7 as follows:
 
23    (415 ILCS 5/14.7)
24    (This Section may contain text from a Public Act with a

 

 

SB0262 Engrossed- 270 -LRB100 05183 HLH 15193 b

1delayed effective date)
2    Sec. 14.7. Preservation of community water supplies.
3    (a) The Agency shall adopt rules governing certain
4corrosion prevention projects carried out on community water
5supplies. Those rules shall not apply to buried pipelines
6including, but not limited to, pipes, mains, and joints. The
7rules shall exclude routine maintenance activities of
8community water supplies including, but not limited to, the use
9of protective coatings applied by the owner's utility personnel
10during the course of performing routine maintenance
11activities. The activities may include, but not be limited to,
12the painting of fire hydrants; routine over-coat painting of
13interior and exterior building surfaces such as floors, doors,
14windows, and ceilings; and routine touch-up and over-coat
15application of protective coatings typically found on water
16utility pumps, pipes, tanks, and other water treatment plant
17appurtenances and utility owned structures. Those rules shall
18include:
19        (1) standards for ensuring that community water
20    supplies carry out corrosion prevention and mitigation
21    methods according to corrosion prevention industry
22    standards adopted by the Agency;
23        (2) requirements that community water supplies use:
24            (A) protective coatings personnel to carry out
25        corrosion prevention and mitigation methods on exposed
26        water treatment tanks, exposed non-concrete water

 

 

SB0262 Engrossed- 271 -LRB100 05183 HLH 15193 b

1        treatment structures, exposed water treatment pipe
2        galleys; exposed pumps; and generators; the Agency
3        shall not limit to protective coatings personnel any
4        other work relating to prevention and mitigation
5        methods on any other water treatment appurtenances
6        where protective coatings are utilized for corrosion
7        control and prevention to prolong the life of the water
8        utility asset; and
9            (B) inspectors to ensure that best practices and
10        standards are adhered to on each corrosion prevention
11        project; and
12        (3) standards to prevent environmental degradation
13    that might occur as a result of carrying out corrosion
14    prevention and mitigation methods including, but not
15    limited to, standards to prevent the improper handling and
16    containment of hazardous materials, especially lead paint,
17    removed from the exterior of a community water supply.
18    In adopting rules under this subsection (a), the Agency
19shall obtain input from corrosion industry experts
20specializing in the training of personnel to carry out
21corrosion prevention and mitigation methods.
22    (b) As used in this Section:
23    "Community water supply" has the meaning ascribed to that
24term in Section 3.145 of this Act.
25    "Corrosion" means a naturally occurring phenomenon
26commonly defined as the deterioration of a metal that results

 

 

SB0262 Engrossed- 272 -LRB100 05183 HLH 15193 b

1from a chemical or electrochemical reaction with its
2environment.
3    "Corrosion prevention and mitigation methods" means the
4preparation, application, installation, removal, or general
5maintenance as necessary of a protective coating system,
6including any or more of the following:
7            (A) surface preparation and coating application on
8        the exterior or interior of a community water supply;
9        or
10            (B) shop painting of structural steel fabricated
11        for installation as part of a community water supply.
12    "Corrosion prevention project" means carrying out
13corrosion prevention and mitigation methods. "Corrosion
14prevention project" does not include clean-up related to
15surface preparation.
16    "Protective coatings personnel" means personnel employed
17or retained by a contractor providing services covered by this
18Section to carry out corrosion prevention or mitigation methods
19or inspections.
20    (c) This Section shall apply to only those projects
21receiving 100% funding from the State.
22    (d) Each contract procured pursuant to the Illinois
23Procurement Code for the provision of services covered by this
24Section (1) shall comply with applicable provisions of the
25Illinois Procurement Code and (2) shall include provisions for
26reporting participation by minority persons, as defined by

 

 

SB0262 Engrossed- 273 -LRB100 05183 HLH 15193 b

1Section 2 of the Business Enterprise for Minorities, Women
2Females, and Persons with Disabilities Act; women females, as
3defined by Section 2 of the Business Enterprise for Minorities,
4Women Females, and Persons with Disabilities Act; and veterans,
5as defined by Section 45-57 of the Illinois Procurement Code,
6in apprenticeship and training programs in which the contractor
7or his or her subcontractors participate. The requirements of
8this Section do not apply to an individual licensed under the
9Professional Engineering Practice Act of 1989 or the Structural
10Engineering Act of 1989.
11(Source: P.A. 99-923, eff. 7-1-17.)
 
12    Section 160. The Public Private Agreements for the Illiana
13Expressway Act is amended by changing Section 20 as follows:
 
14    (605 ILCS 130/20)
15    Sec. 20. Procurement; request for proposals process.
16    (a) Notwithstanding any provision of law to the contrary,
17the Department on behalf of the State shall select a contractor
18through a competitive request for proposals process governed by
19the Illinois Procurement Code and rules adopted under that Code
20and this Act.
21    (b) The competitive request for proposals process shall, at
22a minimum, solicit statements of qualification and proposals
23from offerors.
24    (c) The competitive request for proposals process shall, at

 

 

SB0262 Engrossed- 274 -LRB100 05183 HLH 15193 b

1a minimum, take into account the following criteria:
2        (1) The offeror's plans for the Illiana Expressway
3    project;
4        (2) The offeror's current and past business practices;
5        (3) The offeror's poor or inadequate past performance
6    in developing, financing, constructing, managing, or
7    operating highways or other public assets;
8        (4) The offeror's ability to meet and past performance
9    in meeting or exhausting good faith efforts to meet the
10    utilization goals for business enterprises established in
11    the Business Enterprise for Minorities, Women Females, and
12    Persons with Disabilities Act;
13        (5) The offeror's ability to comply with and past
14    performance in complying with Section 2-105 of the Illinois
15    Human Rights Act; and
16        (6) The offeror's plans to comply with the Business
17    Enterprise for Minorities, Women Females, and Persons with
18    Disabilities Act and Section 2-105 of the Illinois Human
19    Rights Act.
20    (d) The Department shall retain the services of an advisor
21or advisors with significant experience in the development,
22financing, construction, management, or operation of public
23assets to assist in the preparation of the request for
24proposals.
25    (e) The Department shall not include terms in the request
26for proposals that provide an advantage, whether directly or

 

 

SB0262 Engrossed- 275 -LRB100 05183 HLH 15193 b

1indirectly, to any contractor presently providing goods,
2services, or equipment to the Department.
3    (f) The Department shall select at least 2 offerors as
4finalists. The Department shall submit the offerors'
5statements of qualification and proposals to the Commission on
6Government Forecasting and Accountability and the Procurement
7Policy Board, which shall, within 30 days of the submission,
8complete a review of the statements of qualification and
9proposals and, jointly or separately, report on, at a minimum,
10the satisfaction of the criteria contained in the request for
11proposals, the qualifications of the offerors, and the value of
12the proposals to the State. The Department shall not select an
13offeror as the contractor for the Illiana Expressway project
14until it has received and considered the findings of the
15Commission on Government Forecasting and Accountability and
16the Procurement Policy Board as set forth in their respective
17reports.
18    (g) Before awarding a public private agreement to an
19offeror, the Department shall schedule and hold a public
20hearing or hearings on the proposed public private agreement
21and publish notice of the hearing or hearings at least 7 days
22before the hearing and in accordance with Section 4-219 of the
23Illinois Highway Code. The notice must include the following:
24        (1) the date, time, and place of the hearing and the
25    address of the Department;
26        (2) the subject matter of the hearing;

 

 

SB0262 Engrossed- 276 -LRB100 05183 HLH 15193 b

1        (3) a description of the agreement that may be awarded;
2    and
3        (4) the recommendation that has been made to select an
4    offeror as the contractor for the Illiana Expressway
5    project.
6    At the hearing, the Department shall allow the public to be
7heard on the subject of the hearing.
8    (h) After the procedures required in this Section have been
9completed, the Department shall make a determination as to
10whether the offeror should be designated as the contractor for
11the Illiana Expressway project and shall submit the decision to
12the Governor and to the Governor's Office of Management and
13Budget. After review of the Department's determination, the
14Governor may accept or reject the determination. If the
15Governor accepts the determination of the Department, the
16Governor shall designate the offeror for the Illiana Expressway
17project.
18(Source: P.A. 96-913, eff. 6-9-10.)
 
19    Section 165. The Public-Private Agreements for the South
20Suburban Airport Act is amended by changing Section 2-30 as
21follows:
 
22    (620 ILCS 75/2-30)
23    Sec. 2-30. Request for proposals process to enter into
24public-private agreements.

 

 

SB0262 Engrossed- 277 -LRB100 05183 HLH 15193 b

1    (a) Notwithstanding any provisions of the Illinois
2Procurement Code, the Department, on behalf of the State, shall
3select a contractor through a competitive request for proposals
4process governed by Section 2-30 of this Act. The Department
5will consult with the chief procurement officer for
6construction or construction-related activities designated
7pursuant to clause (2) of Section 1-15.15 of the Illinois
8Procurement Code on the competitive request for proposals
9process, and the Secretary will determine, in consultation with
10the chief procurement officer, which procedures to adopt and
11apply to the competitive request for proposals process in order
12to ensure an open, transparent, and efficient process that
13accomplishes the purposes of this Act.
14    (b) The competitive request for proposals process shall, at
15a minimum, solicit statements of qualification and proposals
16from offerors.
17    (c) The competitive request for proposals process shall, at
18a minimum, take into account the following criteria:
19        (1) the offeror's plans for the South Suburban Airport
20    project;
21        (2) the offeror's current and past business practices;
22        (3) the offeror's poor or inadequate past performance
23    in developing, financing, constructing, managing, or
24    operating airports or other public assets;
25        (4) the offeror's ability to meet the utilization goals
26    for business enterprises established in the Business

 

 

SB0262 Engrossed- 278 -LRB100 05183 HLH 15193 b

1    Enterprise for Minorities, Women Females, and Persons with
2    Disabilities Act;
3        (5) the offeror's ability to comply with Section 2-105
4    of the Illinois Human Rights Act; and
5        (6) the offeror's plans to comply with the Business
6    Enterprise for Minorities, Women Females, and Persons with
7    Disabilities Act and Section 2-105 of the Illinois Human
8    Rights Act.
9    (d) The Department shall retain the services of an advisor
10or advisors with significant experience in the development,
11financing, construction, management, or operation of public
12assets to assist in the preparation of the request for
13proposals.
14    (e) The Department shall not include terms in the request
15for proposals that provide an advantage, whether directly or
16indirectly, to any contractor presently providing goods,
17services, or equipment to the Department.
18    (f) The Department shall select one or more offerors as
19finalists. The Department shall submit the offeror's
20statements of qualification and proposals to the Commission on
21Government Forecasting and Accountability and the Procurement
22Policy Board, which shall, within 30 days after the submission,
23complete a review of the statements of qualification and
24proposals and, jointly or separately, report on, at a minimum,
25the satisfaction of the criteria contained in the request for
26proposals, the qualifications of the offerors, and the value of

 

 

SB0262 Engrossed- 279 -LRB100 05183 HLH 15193 b

1the proposals to the State. The Department shall not select an
2offeror as the contractor for the South Suburban Airport
3project until it has received and considered the findings of
4the Commission on Government Forecasting and Accountability
5and the Procurement Policy Board as set forth in their
6respective reports.
7    (g) Before awarding a public-private agreement to an
8offeror, the Department shall schedule and hold a public
9hearing or hearings on the proposed public-private agreement
10and publish notice of the hearing or hearings at least 7 days
11before the hearing. The notice shall include the following:
12        (1) the date, time, and place of the hearing and the
13    address of the Department;
14        (2) the subject matter of the hearing;
15        (3) a description of the agreement that may be awarded;
16    and
17        (4) the recommendation that has been made to select an
18    offeror as the contractor for the South Suburban Airport
19    project.
20    At the hearing, the Department shall allow the public to be
21heard on the subject of the hearing.
22    (h) After the procedures required in this Section have been
23completed, the Department shall make a determination as to
24whether the offeror should be designated as the contractor for
25the South Suburban Airport project and shall submit the
26decision to the Governor and to the Governor's Office of

 

 

SB0262 Engrossed- 280 -LRB100 05183 HLH 15193 b

1Management and Budget. After review of the Department's
2determination, the Governor may accept or reject the
3determination. If the Governor accepts the determination of the
4Department, the Governor shall designate the offeror for the
5South Suburban Airport project.
6(Source: P.A. 98-109, eff. 7-25-13.)
 
7    Section 170. The Public-Private Partnerships for
8Transportation Act is amended by changing Section 25 as
9follows:
 
10    (630 ILCS 5/25)
11    Sec. 25. Design-build procurement.
12    (a) This Section 25 shall apply only to transportation
13projects for which the Department or the Authority intends to
14execute a design-build agreement, in which case the Department
15or the Authority shall abide by the requirements and procedures
16of this Section 25 in addition to other applicable requirements
17and procedures set forth in this Act.
18    (b)(1) The transportation agency must issue a notice of
19intent to receive proposals for the project at least 14 days
20before issuing the request for the qualifications. The
21transportation agency must publish the advance notice in a
22daily newspaper of general circulation in the county where the
23transportation agency is located. The transportation agency is
24encouraged to use publication of the notice in related

 

 

SB0262 Engrossed- 281 -LRB100 05183 HLH 15193 b

1construction industry service publications. A brief
2description of the proposed procurement must be included in the
3notice. The transportation agency must provide a copy of the
4request for qualifications to any party requesting a copy.
5    (2) The request for qualifications shall be prepared for
6each project and must contain, without limitation, the
7following information: (i) the name of the transportation
8agency; (ii) a preliminary schedule for the completion of the
9contract; (iii) the proposed budget for the project and the
10source of funds, to the extent not already reflected in the
11Department's Multi-Year Highway Improvement Program; (iv) the
12shortlisting process for entities or groups of entities such as
13unincorporated joint ventures wishing to submit proposals (the
14transportation agency shall include, at a minimum, its normal
15prequalification, licensing, registration, and other
16requirements, but nothing contained herein precludes the use of
17additional criteria by the transportation agency); (v) a
18summary of anticipated material requirements of the contract,
19including but not limited to, the proposed terms and
20conditions, required performance and payment bonds, insurance,
21and the utilization goals established by the transportation
22agency for minority and women business enterprises and
23compliance with Section 2-105 of the Illinois Human Rights Act;
24and (vi) the anticipated number of entities that will be
25shortlisted for the request for proposals phase.
26    (3) The transportation agency may include any other

 

 

SB0262 Engrossed- 282 -LRB100 05183 HLH 15193 b

1relevant information in the request for qualifications that it
2chooses to supply. The private entity shall be entitled to rely
3upon the accuracy of this documentation in the development of
4its statement of qualifications and its proposal only to the
5extent expressly warranted by the transportation agency.
6    (4) The date that statements of qualifications are due must
7be at least 21 calendar days after the date of the issuance of
8the request for qualifications. In the event the cost of the
9project is estimated to exceed $12,000,000, then the statement
10of qualifications due date must be at least 28 calendar days
11after the date of the issuance of the request for
12qualifications. The transportation agency shall include in the
13request for proposals a minimum of 30 days to develop the
14proposals after the selection of entities from the evaluation
15of the statements of qualifications is completed.
16    (c)(1) The transportation agency shall develop, with the
17assistance of a licensed design professional, the request for
18qualifications and the request for proposals, which shall
19include scope and performance criteria. The scope and
20performance criteria must be in sufficient detail and contain
21adequate information to reasonably apprise the private
22entities of the transportation agency's overall programmatic
23needs and goals, including criteria and preliminary design
24plans, general budget parameters, schedule, and delivery
25requirements.
26    (2) Each request for qualifications and request for

 

 

SB0262 Engrossed- 283 -LRB100 05183 HLH 15193 b

1proposals shall also include a description of the level of
2design to be provided in the proposals. This description must
3include the scope and type of renderings, drawings, and
4specifications that, at a minimum, will be required by the
5transportation agency to be produced by the private entities.
6    (3) The scope and performance criteria shall be prepared by
7a design professional who is an employee of the transportation
8agency, or the transportation agency may contract with an
9independent design professional selected under the
10Architectural, Engineering, and Land Surveying Qualifications
11Based Selection Act to provide these services.
12    (4) The design professional that prepares the scope and
13performance criteria is prohibited from participating in any
14private entity proposal for the project.
15    (d)(1) The transportation agency must use a two phase
16procedure for the selection of the successful design-build
17entity. The request for qualifications phase will evaluate and
18shortlist the private entities based on qualifications, and the
19request for proposals will evaluate the technical and cost
20proposals.
21    (2) The transportation agency shall include in the request
22for qualifications the evaluating factors to be used in the
23request for qualifications phase. These factors are in addition
24to any prequalification requirements of private entities that
25the transportation agency has set forth. Each request for
26qualifications shall establish the relative importance

 

 

SB0262 Engrossed- 284 -LRB100 05183 HLH 15193 b

1assigned to each evaluation factor, including any weighting of
2criteria to be employed by the transportation agency. The
3transportation agency must maintain a record of the evaluation
4scoring to be disclosed in event of a protest regarding the
5solicitation.
6    The transportation agency shall include the following
7criteria in every request for qualifications phase evaluation
8of private entities: (i) experience of personnel; (ii)
9successful experience with similar project types; (iii)
10financial capability; (iv) timeliness of past performance; (v)
11experience with similarly sized projects; (vi) successful
12reference checks of the firm; (vii) commitment to assign
13personnel for the duration of the project and qualifications of
14the entity's consultants; and (viii) ability or past
15performance in meeting or exhausting good faith efforts to meet
16the utilization goals for business enterprises established in
17the Business Enterprise for Minorities, Women Females, and
18Persons with Disabilities Act and in complying with Section
192-105 of the Illinois Human Rights Act. No proposal shall be
20considered that does not include an entity's plan to comply
21with the requirements regarding minority and women business
22enterprises and economically disadvantaged firms established
23by the transportation agency and with Section 2-105 of the
24Illinois Human Rights Act. The transportation agency may
25include any additional relevant criteria in the request for
26qualifications phase that it deems necessary for a proper

 

 

SB0262 Engrossed- 285 -LRB100 05183 HLH 15193 b

1qualification review.
2    Upon completion of the qualifications evaluation, the
3transportation agency shall create a shortlist of the most
4highly qualified private entities.
5    The transportation agency shall notify the entities
6selected for the shortlist in writing. This notification shall
7commence the period for the preparation of the request for
8proposals phase technical and cost evaluations. The
9transportation agency must allow sufficient time for the
10shortlist entities to prepare their proposals considering the
11scope and detail requested by the transportation agency.
12    (3) The transportation agency shall include in the request
13for proposals the evaluating factors to be used in the
14technical and cost submission components. Each request for
15proposals shall establish, for both the technical and cost
16submission components, the relative importance assigned to
17each evaluation factor, including any weighting of criteria to
18be employed by the transportation agency. The transportation
19agency must maintain a record of the evaluation scoring to be
20disclosed in event of a protest regarding the solicitation.
21    The transportation agency shall include the following
22criteria in every request for proposals phase technical
23evaluation of private entities: (i) compliance with objectives
24of the project; (ii) compliance of proposed services to the
25request for proposal requirements; (iii) compliance with the
26request for proposal requirements of products or materials

 

 

SB0262 Engrossed- 286 -LRB100 05183 HLH 15193 b

1proposed; (iv) quality of design parameters; and (v) design
2concepts. The transportation agency may include any additional
3relevant technical evaluation factors it deems necessary for
4proper selection.
5    The transportation agency shall include the following
6criteria in every request for proposals phase cost evaluation:
7the total project cost and the time of completion. The
8transportation agency may include any additional relevant
9technical evaluation factors it deems necessary for proper
10selection. The guaranteed maximum project cost criteria
11weighing factor shall not exceed 30%.
12    The transportation agency shall directly employ or retain a
13licensed design professional to evaluate the technical and cost
14submissions to determine if the technical submissions are in
15accordance with generally accepted industry standards.
16    (e) Statements of qualifications and proposals must be
17properly identified and sealed. Statements of qualifications
18and proposals may not be reviewed until after the deadline for
19submission has passed as set forth in the request for
20qualifications or the request for proposals. All private
21entities submitting statements of qualifications or proposals
22shall be disclosed after the deadline for submission, and all
23private entities who are selected for request for proposals
24phase evaluation shall also be disclosed at the time of that
25determination.
26    Design-build proposals shall include a bid bond in the form

 

 

SB0262 Engrossed- 287 -LRB100 05183 HLH 15193 b

1and security as designated in the request for proposals.
2Proposals shall also contain a separate sealed envelope with
3the cost information within the overall proposal submission.
4Proposals shall include a list of all design professionals and
5other entities to which any work identified in Section 30-30 of
6the Illinois Procurement Code as a subdivision of construction
7work may be subcontracted during the performance of the
8contract to the extent known at the time of proposal. If the
9information is not known at the time of proposal, then the
10design-build agreement shall require the identification prior
11to a previously unlisted subcontractor commencing work on the
12transportation project.
13    Statements of qualifications and proposals must meet all
14material requirements of the request for qualifications or
15request for proposals, or else they may be rejected as
16non-responsive. The transportation agency shall have the right
17to reject any and all statements of qualifications and
18proposals.
19    The private entity's proprietary intellectual property
20contained in the drawings and specifications of any
21unsuccessful statement of qualifications or proposal shall
22remain the property of the private entity.
23    The transportation agency shall review the statements of
24qualifications and the proposals for compliance with the
25performance criteria and evaluation factors.
26    Statements of qualifications and proposals may be

 

 

SB0262 Engrossed- 288 -LRB100 05183 HLH 15193 b

1withdrawn prior to the due date and time for submissions for
2any cause. After evaluation begins by the transportation
3agency, clear and convincing evidence of error is required for
4withdrawal.
5(Source: P.A. 97-502, eff. 8-23-11; 97-858, eff. 7-27-12.)
 
6    Section 175. The Criminal Code of 2012 is amended by
7changing Sections 17-10.3 and 33E-2 as follows:
 
8    (720 ILCS 5/17-10.3)
9    Sec. 17-10.3. Deception relating to certification of
10disadvantaged business enterprises.
11    (a) Fraudulently obtaining or retaining certification. A
12person who, in the course of business, fraudulently obtains or
13retains certification as a minority-owned minority owned
14business, women-owned female owned business, service-disabled
15veteran-owned small business, or veteran-owned small business
16commits a Class 2 felony.
17    (b) Willfully making a false statement. A person who, in
18the course of business, willfully makes a false statement
19whether by affidavit, report or other representation, to an
20official or employee of a State agency or the Minority and
21Female Business Enterprise Council for Minorities, Women, and
22Persons with Disabilities for the purpose of influencing the
23certification or denial of certification of any business entity
24as a minority-owned minority owned business, women-owned

 

 

SB0262 Engrossed- 289 -LRB100 05183 HLH 15193 b

1female owned business, service-disabled veteran-owned small
2business, or veteran-owned small business commits a Class 2
3felony.
4    (c) Willfully obstructing or impeding an official or
5employee of any agency in his or her investigation. Any person
6who, in the course of business, willfully obstructs or impedes
7an official or employee of any State agency or the Minority and
8Female Business Enterprise Council for Minorities, Women, and
9Persons with Disabilities who is investigating the
10qualifications of a business entity which has requested
11certification as a minority-owned minority owned business,
12women-owned female owned business, service-disabled
13veteran-owned small business, or veteran-owned small business
14commits a Class 2 felony.
15    (d) Fraudulently obtaining public moneys reserved for
16disadvantaged business enterprises. Any person who, in the
17course of business, fraudulently obtains public moneys
18reserved for, or allocated or available to, minority-owned
19minority owned businesses, women-owned female owned
20businesses, service-disabled veteran-owned small businesses,
21or veteran-owned small businesses commits a Class 2 felony.
22    (e) Definitions. As used in this Article, "minority-owned
23minority owned business", "women-owned female owned business",
24"State agency" with respect to minority-owned minority owned
25businesses and women-owned female owned businesses, and
26"certification" with respect to minority-owned minority owned

 

 

SB0262 Engrossed- 290 -LRB100 05183 HLH 15193 b

1businesses and women-owned female owned businesses shall have
2the meanings ascribed to them in Section 2 of the Business
3Enterprise for Minorities, Women Females, and Persons with
4Disabilities Act. As used in this Article, "service-disabled
5veteran-owned small business", "veteran-owned small business",
6"State agency" with respect to service-disabled veteran-owned
7small businesses and veteran-owned small businesses, and
8"certification" with respect to service-disabled veteran-owned
9small businesses and veteran-owned small businesses have the
10same meanings as in Section 45-57 of the Illinois Procurement
11Code.
12(Source: P.A. 96-1551, eff. 7-1-11; 97-260, eff. 8-5-11.)
 
13    (720 ILCS 5/33E-2)  (from Ch. 38, par. 33E-2)
14    Sec. 33E-2. Definitions. In this Act:
15    (a) "Public contract" means any contract for goods,
16services or construction let to any person with or without bid
17by any unit of State or local government.
18    (b) "Unit of State or local government" means the State,
19any unit of state government or agency thereof, any county or
20municipal government or committee or agency thereof, or any
21other entity which is funded by or expends tax dollars or the
22proceeds of publicly guaranteed bonds.
23    (c) "Change order" means a change in a contract term other
24than as specifically provided for in the contract which
25authorizes or necessitates any increase or decrease in the cost

 

 

SB0262 Engrossed- 291 -LRB100 05183 HLH 15193 b

1of the contract or the time to completion.
2    (d) "Person" means any individual, firm, partnership,
3corporation, joint venture or other entity, but does not
4include a unit of State or local government.
5    (e) "Person employed by any unit of State or local
6government" means any employee of a unit of State or local
7government and any person defined in subsection (d) who is
8authorized by such unit of State or local government to act on
9its behalf in relation to any public contract.
10    (f) "Sheltered market" has the meaning ascribed to it in
11Section 8b of the Business Enterprise for Minorities, Women
12Females, and Persons with Disabilities Act; except that, with
13respect to State contracts set aside for award to
14service-disabled veteran-owned small businesses and
15veteran-owned small businesses pursuant to Section 45-57 of the
16Illinois Procurement Code, "sheltered market" means
17procurements pursuant to that Section.
18    (g) "Kickback" means any money, fee, commission, credit,
19gift, gratuity, thing of value, or compensation of any kind
20which is provided, directly or indirectly, to any prime
21contractor, prime contractor employee, subcontractor, or
22subcontractor employee for the purpose of improperly obtaining
23or rewarding favorable treatment in connection with a prime
24contract or in connection with a subcontract relating to a
25prime contract.
26    (h) "Prime contractor" means any person who has entered

 

 

SB0262 Engrossed- 292 -LRB100 05183 HLH 15193 b

1into a public contract.
2    (i) "Prime contractor employee" means any officer,
3partner, employee, or agent of a prime contractor.
4    (i-5) "Stringing" means knowingly structuring a contract
5or job order to avoid the contract or job order being subject
6to competitive bidding requirements.
7    (j) "Subcontract" means a contract or contractual action
8entered into by a prime contractor or subcontractor for the
9purpose of obtaining goods or services of any kind under a
10prime contract.
11    (k) "Subcontractor" (1) means any person, other than the
12prime contractor, who offers to furnish or furnishes any goods
13or services of any kind under a prime contract or a subcontract
14entered into in connection with such prime contract; and (2)
15includes any person who offers to furnish or furnishes goods or
16services to the prime contractor or a higher tier
17subcontractor.
18    (l) "Subcontractor employee" means any officer, partner,
19employee, or agent of a subcontractor.
20(Source: P.A. 97-260, eff. 8-5-11.)
 
21    Section 180. The Business Corporation Act of 1983 is
22amended by changing Section 14.05 as follows:
 
23    (805 ILCS 5/14.05)  (from Ch. 32, par. 14.05)
24    Sec. 14.05. Annual report of domestic or foreign

 

 

SB0262 Engrossed- 293 -LRB100 05183 HLH 15193 b

1corporation. Each domestic corporation organized under any
2general law or special act of this State authorizing the
3corporation to issue shares, other than homestead
4associations, building and loan associations, banks and
5insurance companies (which includes a syndicate or limited
6syndicate regulated under Article V 1/2 of the Illinois
7Insurance Code or member of a group of underwriters regulated
8under Article V of that Code), and each foreign corporation
9(except members of a group of underwriters regulated under
10Article V of the Illinois Insurance Code) authorized to
11transact business in this State, shall file, within the time
12prescribed by this Act, an annual report setting forth:
13        (a) The name of the corporation.
14        (b) The address, including street and number, or rural
15    route number, of its registered office in this State, and
16    the name of its registered agent at that address.
17        (c) The address, including street and number, or rural
18    route number, of its principal office.
19        (d) The names and respective addresses, including
20    street and number, or rural route number, of its directors
21    and officers.
22        (e) A statement of the aggregate number of shares which
23    the corporation has authority to issue, itemized by classes
24    and series, if any, within a class.
25        (f) A statement of the aggregate number of issued
26    shares, itemized by classes, and series, if any, within a

 

 

SB0262 Engrossed- 294 -LRB100 05183 HLH 15193 b

1    class.
2        (g) A statement, expressed in dollars, of the amount of
3    paid-in capital of the corporation as defined in this Act.
4        (h) Either a statement that (1) all the property of the
5    corporation is located in this State and all of its
6    business is transacted at or from places of business in
7    this State, or the corporation elects to pay the annual
8    franchise tax on the basis of its entire paid-in capital,
9    or (2) a statement, expressed in dollars, of the value of
10    all the property owned by the corporation, wherever
11    located, and the value of the property located within this
12    State, and a statement, expressed in dollars, of the gross
13    amount of business transacted by the corporation and the
14    gross amount thereof transacted by the corporation at or
15    from places of business in this State as of the close of
16    its fiscal year on or immediately preceding the last day of
17    the third month prior to the anniversary month or in the
18    case of a corporation which has established an extended
19    filing month, as of the close of its fiscal year on or
20    immediately preceding the last day of the third month prior
21    to the extended filing month; however, in the case of a
22    domestic corporation that has not completed its first
23    fiscal year, the statement with respect to property owned
24    shall be as of the last day of the third month preceding
25    the anniversary month and the statement with respect to
26    business transacted shall be furnished for the period

 

 

SB0262 Engrossed- 295 -LRB100 05183 HLH 15193 b

1    between the date of incorporation and the last day of the
2    third month preceding the anniversary month. In the case of
3    a foreign corporation that has not been authorized to
4    transact business in this State for a period of 12 months
5    and has not commenced transacting business prior to
6    obtaining authority, the statement with respect to
7    property owned shall be as of the last day of the third
8    month preceding the anniversary month and the statement
9    with respect to business transacted shall be furnished for
10    the period between the date of its authorization to
11    transact business in this State and the last day of the
12    third month preceding the anniversary month. If the data
13    referenced in item (2) of this subsection is not completed,
14    the franchise tax provided for in this Act shall be
15    computed on the basis of the entire paid-in capital.
16        (i) A statement, including the basis therefor, of
17    status as a "minority-owned minority owned business" or as
18    a "women-owned female owned business" as those terms are
19    defined in the Business Enterprise for Minorities, Women
20    Females, and Persons with Disabilities Act.
21        (j) Additional information as may be necessary or
22    appropriate in order to enable the Secretary of State to
23    administer this Act and to verify the proper amount of fees
24    and franchise taxes payable by the corporation.
25    The annual report shall be made on forms prescribed and
26furnished by the Secretary of State, and the information

 

 

SB0262 Engrossed- 296 -LRB100 05183 HLH 15193 b

1therein required by paragraphs (a) through (d), both inclusive,
2of this Section, shall be given as of the date of the execution
3of the annual report and the information therein required by
4paragraphs (e), (f) and (g) of this Section shall be given as
5of the last day of the third month preceding the anniversary
6month, except that the information required by paragraphs (e),
7(f) and (g) shall, in the case of a corporation which has
8established an extended filing month, be given in its final
9transition annual report and each subsequent annual report as
10of the close of its fiscal year immediately preceding its
11extended filing month. It shall be executed by the corporation
12by its president, a vice-president, secretary, assistant
13secretary, treasurer or other officer duly authorized by the
14board of directors of the corporation to execute those reports,
15and verified by him or her, or, if the corporation is in the
16hands of a receiver or trustee, it shall be executed on behalf
17of the corporation and verified by the receiver or trustee.
18(Source: P.A. 92-16, eff. 6-28-01; 92-33, eff. 7-1-01; 93-59,
197-1-03.)
 
20    Section 999. Effective date. This Act takes effect upon
21becoming law.