101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020
HB5824

 

Introduced 11/10/2020, by Rep. Emanuel Chris Welch - Mary E. Flowers, Mark L. Walker, Marcus C. Evans, Jr., Barbara Hernandez, et al.

 

SYNOPSIS AS INTRODUCED:
 
New Act
20 ILCS 405/405-530 rep.
20 ILCS 605/605-1055 new
35 ILCS 10/5-57
215 ILCS 5/155.47 new
305 ILCS 5/5-30.13

    Creates the Higher Education Supplier Diversity Act. Provides that every private institution of higher education approved by the Illinois Student Assistance Commission for the purposes of the Monetary Award Program shall submit a report on its voluntary supplier diversity program to the Department of Commerce and Economic Opportunity. Amends the Department of Commerce and Economic Opportunity Law of the Civil Administrative Code of Illinois. Creates the Office of Diversity and Economic Inclusion within the Department of Commerce and Economic Opportunity to assist diverse businesses through targeted programs, matchmaking workshops, resources, and outreach and promotional activities. Amends the Department of Central Management Services Law of the Civil Administrative Code of Illinois. Repeals a provision concerning the higher education supplier diversity report. Amends the Economic Development for a Growing Economy Tax Credit Act. Provides that a taxpayer shall not receive a credit under the Act unless the taxpayer submits a required supplier diversity report. Amends the Illinois Insurance Code. Provides for insurance company supplier diversity reports. Defines terms. Makes other changes. Effective immediately.


LRB101 21608 RJF 73012 b

 

 

A BILL FOR

 

HB5824LRB101 21608 RJF 73012 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 1. Short title. This Act may be cited as the Higher
5Education Supplier Diversity Act.
 
6    Section 5. Higher education supplier diversity report.
7Every private institution of higher education approved by the
8Illinois Student Assistance Commission for the purposes of the
9Monetary Award Program shall submit a report on its voluntary
10supplier diversity program to the Department of Commerce and
11Economic Opportunity in the form and manner required by the
12Department of Commerce and Economic Opportunity by April 1 of
13every year.
 
14    (20 ILCS 405/405-530 rep.)
15    Section 100. The Department of Central Management Services
16Law of the Civil Administrative Code of Illinois is amended by
17repealing Section 405-530.
 
18    Section 105. The Department of Commerce and Economic
19Opportunity Law of the Civil Administrative Code of Illinois is
20amended by adding Section 605-1055 as follows:
 

 

 

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1    (20 ILCS 605/605-1055 new)
2    Sec. 605-1055. Office of Diversity and Economic Inclusion.
3    (a) As used in this Section:
4    "Diverse business" means:
5        (1) a minority-owned business, as defined by Section 2
6    of the Business Enterprise for Minorities, Women, and
7    Persons with Disabilities Act;
8        (2) a women-owned business, as defined by Section 2 of
9    the Business Enterprise for Minorities, Women, and Persons
10    with Disabilities Act;
11        (3) a business owned by a person with a disability, as
12    defined by Section 2 of the Business Enterprise for
13    Minorities, Women, Persons with Disabilities Act;
14        (4) a veteran-owned business; or
15        (5) a business that is at least 51% owned and
16    controlled by one or more socially disadvantaged or
17    economically disadvantaged persons, as the Department
18    shall by rule determine.
19    "Economically disadvantaged person" means a person whose
20ability to compete in the free enterprise system has been
21impaired due to diminished capital and credit opportunities
22because of his or her identity as a member of a group, without
23regard to his or her individual qualities, as compared to
24others in the same line of business and competitive market
25area.
26    "Socially disadvantaged person" means a person who has been

 

 

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1subjected to cultural, racial, or ethnic prejudice because of
2his or her identity as a member of a group, without regard to
3his or her individual qualities.
4    "Veteran-owned business" means a business owned by a
5veteran, as that term is defined under Section 45-57 of the
6Illinois Procurement Code.
7    (b) The Office of Diversity and Economic Inclusion is
8hereby created within the Department. The Office shall assist
9diverse businesses through targeted programs, matchmaking
10workshops, resources, and outreach and promotional activities.
11The Office shall engage in or conduct the following activities:
12        (1) promoting and conducting outreach efforts with
13    respect to the making of small business loans pursuant to
14    Section 9-4.3 of the Build Illinois Act and assisting
15    eligible diverse business under Section 9-4.3 of the Build
16    Illinois Act apply for loan funding;
17        (2) providing and hosting workshops and public forums
18    and engaging in outreach efforts for diverse businesses to
19    encourage participation in programs authorized by the
20    Business Enterprise for Minorities, Women, and Persons
21    with Disabilities Act and the Illinois Procurement Code;
22        (3) providing and hosting workshops and public forums
23    and engaging in outreach efforts that assist and educate
24    diverse businesses on the process of applying for and
25    becoming certified to apply for State grant funds under the
26    Grant Accountability and Transparency Act;

 

 

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1        (4) providing and hosting workshops and public forums
2    and engaging in outreach efforts to assist and educate
3    aspiring and existing diverse businesses in understanding
4    concepts such as, but not limited to, business formation,
5    business planning, capital access, and marketing a
6    business; and
7        (5) conduct matchmaking workshops for established
8    businesses to connect with industries that report their
9    voluntary supplier diversity programs to State agencies
10    for the purpose of assisting diverse businesses to secure
11    additional contractual opportunities from each industry.
12    (c) The Office shall administer programs established by the
13Department, the General Assembly, or both, and may provide
14grants to diverse businesses. The Office may establish
15applications, notifications, contracts, and other forms or
16procedures and may use vendors or contract work to carry out
17the purposes of this Act. The Office may coordinate assistance
18for businesses with other State agencies.
19    (d) The Department shall provide staff, administrative
20support, and related support to the Office as required to
21administer this Section.
22    (e) By July 1, 2021, the Office shall establish a supplier
23diversity program in order to facilitate and encourage the
24growth of supplier diversity, and shall have a least one
25employee that serves as a supplier diversity program manager
26to: (1) collect reports and information concerning entities

 

 

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1that manage supplier diversity programs, and publish the
2reports and information on the website of the Department; and
3(2) conduct workshops focused on specific industries to
4collaboratively connect diverse enterprises with entities that
5manage supplier diversity programs.
6    (f) The Office shall hold matchmaking workshops to help
7connect diverse enterprises with industries that report on
8their voluntary supplier diversity programs. These workshops
9shall be held at least once per quarter and each shall focus on
10a particular industry that files supplier diversity reports.
11Each matchmaking workshop for each industry shall be held on an
12annual basis in as close to the same month as possible. The
13matchmaking workshops for each industry shall include, but not
14be limited to: gaming, hospitals, public and private higher
15education, insurance, health insurance companies holding
16Medicaid contracts, and taxpayers receiving tax credits under
17the Economic Development for a Growing Economy Act.
18Participation in these matchmaking workshops shall be open to
19any kind of diverse business that any company within a
20particular industry recognizes and shall not be limited to
21those diverse businesses certified by the State or defined by
22law or rule.
23    (g) The Office shall compile and publish on the website of
24the Department a master database consisting of the supplier
25diversity reports submitted to State agencies pursuant to the
26following Acts:

 

 

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1        (1) Section 405-530 of the Department of Central
2    Management Services Law of the Civil Administrative Code of
3    Illinois;
4        (2) Section 8f of the Business Enterprise for
5    Minorities, Women, and Persons with Disabilities Act;
6        (3) Section 5-57 of the Economic Development for a
7    Growing Economy Act;
8        (4) Section 5-117 of the Public Utilities Act;
9        (5) Section 12.2 of the Illinois Horse Racing Act of
10    1975;
11        (6) Section 10 of the Railroad Supplier Diversity Act;
12        (7) Section 155.47 of the Illinois Insurance Code; and
13        (8) Section 5-30.13 of the Illinois Public Aid Code.
14    (h) The Department shall publish a template for supplier
15diversity reports to be used for taxpayers receiving tax
16credits under the Economic Development for a Growing Economy
17Act and private higher education institutions. The template
18shall include the following provisions:
19        (1) a point of contact for potential vendors to
20    register with the entity;
21        (2) certifications that the entity accepts or
22    recognizes for minority-owned and women-owned businesses;
23    entities may define diverse businesses in whatever manner
24    they choose;
25        (3) the voluntary supplier diversity goals, if any, of
26    the next fiscal year for the next fiscal year for the

 

 

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1    entire budget of the entity;
2        (4) for the last fiscal year, the actual contractual
3    spending for the entire budget of the entity and the actual
4    spending for minority-owned and-women-owned businesses,
5    expressed as a percentage of the total budget for actual
6    spending for the entity;
7        (5) a narrative explaining the results of the report
8    and the tactics to be employed to achieve the voluntary
9    goals for the next fiscal year; and
10        (6) the particular areas of spending in the next fiscal
11    year that the entity intends to procure that are most
12    relevant to minority-owned and women-owned businesses;
13    The Department may adopt rules necessary to implement this
14Section.
 
15    Section 110. The Economic Development for a Growing Economy
16Tax Credit Act is amended by changing Section 5-57 as follows:
 
17    (35 ILCS 10/5-57)
18    Sec. 5-57. Diversity policy Supplier diversity goals;
19reports. Each taxpayer claiming a credit under this Act shall,
20no later than April 15 of each taxable year for which the
21taxpayer claims a credit under this Act, submit to the
22Department of Commerce and Economic Opportunity an annual
23report containing the information described in subsections
24(b), (c), (d), and (e) of Section 5-117 of the Public Utilities

 

 

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1Act. Those reports shall be submitted in the form and manner
2required by the Department of Commerce and Economic
3Opportunity.
4    Any taxpayer seeking to claim a credit under this Act that
5fails to timely submit the required report shall not receive a
6credit for that taxable year unless and until such report is
7finalized and submitted to the Department.
8    Each taxpayer claiming a credit under this Act shall, no
9later than April 15 of each taxable year for which the taxpayer
10claims a credit under this Act, submit to the Department an
11annual report detailing the diversity of the taxpayer's own
12workforce, including full-time and part-time employees,
13contractors, and board members. The report shall be submitted
14in the form and manner required by the Department. Any taxpayer
15seeking to claim a credit under this Act that fails to timely
16submit the required report shall not receive a credit for that
17taxable year unless and until such report is finalized and
18submitted to the Department.
19(Source: P.A. 100-451, eff. 8-25-17; 100-511, eff. 9-18-17.)
 
20    Section 115. The Illinois Insurance Code is amended by
21adding Section 155.47 as follows:
 
22    (215 ILCS 5/155.47 new)
23    Sec. 155.47. Insurance company supplier diversity report.
24    (a) Every company authorized to do business in this State

 

 

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1or accredited by this State with assets of at least $50,000,000
2shall submit a 2-page report on its voluntary supplier
3diversity program to the Department. The report shall set forth
4all of the following:
5        (1) The name, address, phone number, and e-mail address
6    of the point of contact for the supplier diversity program
7    (or the company's procurement program if there is no
8    supplier diversity program) for vendors to register with
9    the program.
10        (2) Local and State certifications the company accepts
11    or recognizes for minority-owned, women-owned, or
12    veteran-owned business status.
13        (3) On the second page, a narrative explaining the
14    results of the report and the tactics to be employed to
15    achieve the goals of its voluntary supplier diversity
16    program.
17        (4) The voluntary goals, if any, for the calendar year
18    for which the report is made in each category for the
19    entire budget of the company and the commodity codes or a
20    description of particular goods and services for the area
21    of procurement in which the company expects most of those
22    goals to focus on in that year.
23    Each company is required to submit a searchable report, in
24Portable Document Format (PDF), to the Department on or before
25April 15, 2021, and on or before April 15 every year
26thereafter, for the upcoming calendar year.

 

 

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1    (b) For each report submitted under subsection (a) of this
2Section, the Department shall publish the results on its
3Internet website for 5 years after submission. The Department
4is not responsible for collecting the reports or for the
5content of the reports.
6    (c) The Department shall prepare a one-page template (not
7including the narrative section) for the voluntary supplier
8diversity reports.
9    (d) The Department may adopt such rules as it deems
10necessary to implement this Section.
 
11    Section 120. The Illinois Public Aid Code is amended by
12renumbering Section 5-30.11 as added by Public Act 101-209 as
13follows:
 
14    (305 ILCS 5/5-30.13)
15    Sec. 5-30.13 5-30.11. Managed care reports; minority-owned
16and women-owned businesses. Each Medicaid managed care health
17plan shall submit a report to the Department by March 1, 2020,
18and every March 1 thereafter, that includes the following
19information:
20        (1) The administrative expenses paid to the Medicaid
21    managed care health plan.
22        (2) The amount of money the Medicaid managed care
23    health plan has spent with Business Enterprise Program
24    certified businesses.

 

 

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1        (3) The amount of money the Medicaid managed care
2    health plan has spent with minority-owned and women-owned
3    businesses that are certified by other agencies or private
4    organizations.
5        (4) The amount of money the Medicaid managed care
6    health plan has spent with not-for-profit community-based
7    organizations serving predominantly minority communities,
8    as defined by the Department.
9        (5) The proportion of minorities, people with
10    disabilities, and women that make up the staff of the
11    Medicaid managed care health plan.
12        (6) Recommendations for increasing expenditures with
13    minority-owned and women-owned businesses.
14        (7) A list of the types of services to which the
15    Medicaid managed care health plan is contemplating adding
16    new vendors.
17        (8) The certifications the Medicaid managed care
18    health plan accepts for minority-owned and women-owned
19    businesses.
20        (9) The point of contact for potential vendors seeking
21    to do business with the Medicaid managed care health plan.
22    The Department shall publish the reports on its website and
23shall maintain each report on its website for 5 years. In May
24of 2020 and every May thereafter, the Department shall hold 2
25annual public workshops, one in Chicago and one in Springfield.
26The workshops shall include each Medicaid managed care health

 

 

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1plan and shall be open to vendor communities to discuss the
2submitted plans and to seek to connect vendors with the
3Medicaid managed care health plans.
4(Source: P.A. 101-209, eff. 8-5-19; revised 10-22-19.)
 
5    Section 999. Effective date. This Act takes effect upon
6becoming law.