101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020
SB2121

 

Introduced 2/15/2019, by Sen. Omar Aquino - Mattie Hunter

 

SYNOPSIS AS INTRODUCED:
 
30 ILCS 575/2
30 ILCS 575/4f

    Amends the Business Enterprise for Minorities, Women, and Persons with Disabilities Act. Modifies the terms "State contracts" and "public institutions of higher education" to remove references to community colleges and community college districts within the meanings of those terms. Provides aspirational goals for community colleges in the awarding of contracts under the Act. Specifies additional information that the Business Enterprise Council is required to report for each community college district. Provides that the Business Enterprise Council shall (rather than may) collect the data needed to make its report from the Illinois Community College Board. Effective immediately.


LRB101 10969 RJF 56148 b

 

 

A BILL FOR

 

SB2121LRB101 10969 RJF 56148 b

1    AN ACT concerning finance.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Business Enterprise for Minorities, Women,
5and Persons with Disabilities Act is amended by changing
6Sections 2 and 4f as follows:
 
7    (30 ILCS 575/2)
8    (Section scheduled to be repealed on June 30, 2020)
9    Sec. 2. Definitions.
10    (A) For the purpose of this Act, the following terms shall
11have the following definitions:
12        (1) "Minority person" shall mean a person who is a
13    citizen or lawful permanent resident of the United States
14    and who is any of the following:
15            (a) American Indian or Alaska Native (a person
16        having origins in any of the original peoples of North
17        and South America, including Central America, and who
18        maintains tribal affiliation or community attachment).
19            (b) Asian (a person having origins in any of the
20        original peoples of the Far East, Southeast Asia, or
21        the Indian subcontinent, including, but not limited
22        to, Cambodia, China, India, Japan, Korea, Malaysia,
23        Pakistan, the Philippine Islands, Thailand, and

 

 

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

 

 

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

 

 

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1    also be considered as a severe disability for the purposes
2    of item (a) of this subdivision (2.1) if it is determined
3    by an evaluation of rehabilitation potential to cause a
4    comparable degree of substantial functional limitation
5    similar to the specific list of disabilities listed in item
6    (a) of this subdivision (2.1).
7        (3) "Minority-owned business" means a business which
8    is at least 51% owned by one or more minority persons, or
9    in the case of a corporation, at least 51% of the stock in
10    which is owned by one or more minority persons; and the
11    management and daily business operations of which are
12    controlled by one or more of the minority individuals who
13    own it.
14        (4) "Women-owned business" means a business which is at
15    least 51% owned by one or more women, or, in the case of a
16    corporation, at least 51% of the stock in which is owned by
17    one or more women; and the management and daily business
18    operations of which are controlled by one or more of the
19    women who own it.
20        (4.1) "Business owned by a person with a disability"
21    means a business that is at least 51% owned by one or more
22    persons with a disability and the management and daily
23    business operations of which are controlled by one or more
24    of the persons with disabilities who own it. A
25    not-for-profit agency for persons with disabilities that
26    is exempt from taxation under Section 501 of the Internal

 

 

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

 

 

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1    Board of Trustees of Southern Illinois University, the
2    Board of Trustees of Chicago State University, the Board of
3    Trustees of Eastern Illinois University, the Board of
4    Trustees of Governors State University, the Board of
5    Trustees of Illinois State University, the Board of
6    Trustees of Northeastern Illinois University, the Board of
7    Trustees of Northern Illinois University, the Board of
8    Trustees of Western Illinois University, municipalities or
9    other local governmental units, or other State
10    constitutional officers.
11        (7) "Public institutions of higher education" means
12    the University of Illinois, Southern Illinois University,
13    Chicago State University, Eastern Illinois University,
14    Governors State University, Illinois State University,
15    Northeastern Illinois University, Northern Illinois
16    University, Western Illinois University, the public
17    community colleges of the State, and any other public
18    universities, colleges, and community colleges now or
19    hereafter established or authorized by the General
20    Assembly.
21        (8) "Certification" means a determination made by the
22    Council or by one delegated authority from the Council to
23    make certifications, or by a State agency with statutory
24    authority to make such a certification, that a business
25    entity is a business owned by a minority, woman, or person
26    with a disability for whatever purpose. A business owned

 

 

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

 

 

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1    demonstrate that the contract would have significant
2    impact on businesses owned by minorities, women, or persons
3    with disabilities as suppliers or subcontractors or in
4    employment of minorities, women, or persons with
5    disabilities.
6        (11) "Utilization plan" means a form and additional
7    documentations included in all bids or proposals that
8    demonstrates a vendor's proposed utilization of vendors
9    certified by the Business Enterprise Program to meet the
10    targeted goal. The utilization plan shall demonstrate that
11    the Vendor has either: (1) met the entire contract goal or
12    (2) requested a full or partial waiver and made good faith
13    efforts towards meeting the goal.
14        (12) "Business Enterprise Program" means the Business
15    Enterprise Program of the Department of Central Management
16    Services.
17    (B) When a business is owned at least 51% by any
18combination of minority persons, women, or persons with
19disabilities, even though none of the 3 classes alone holds at
20least a 51% interest, the ownership requirement for purposes of
21this Act is considered to be met. The certification category
22for the business is that of the class holding the largest
23ownership interest in the business. If 2 or more classes have
24equal ownership interests, the certification category shall be
25determined by the business.
26(Source: P.A. 99-143, eff. 7-27-15; 99-462, eff. 8-25-15;

 

 

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199-642, eff. 7-28-16; 100-391, eff. 8-25-17.)
 
2    (30 ILCS 575/4f)
3    (Section scheduled to be repealed on June 30, 2020)
4    Sec. 4f. Award of State contracts.
5    (1) It is hereby declared to be the public policy of the
6State of Illinois to promote and encourage each State agency
7and public institution of higher education, including
8community colleges, to use businesses owned by minorities,
9women, and persons with disabilities in the area of goods and
10services, including, but not limited to, insurance services,
11investment management services, information technology
12services, accounting services, architectural and engineering
13services, and legal services. Furthermore, each State agency
14and public institution of higher education, including
15community colleges, shall utilize such firms to the greatest
16extent feasible within the bounds of financial and fiduciary
17prudence, and take affirmative steps to remove any barriers to
18the full participation of such firms in the procurement and
19contracting opportunities afforded.
20        (a) When a State agency or public institution of higher
21    education, other than a community college, awards a
22    contract for insurance services, for each State agency or
23    public institution of higher education, it shall be the
24    aspirational goal to use insurance brokers owned by
25    minorities, women, and persons with disabilities as

 

 

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

 

 

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1    technology services, accounting services, architectural
2    and engineering services, and legal services, it shall be
3    the aspirational goal of each community college to use
4    businesses owned by minorities, women, and persons with
5    disabilities as defined in this Act for not less than 20%
6    of the total amount spent on contracts for these services
7    collectively. When a community college awards contracts
8    for investment services, contracts awarded to investment
9    managers who are not emerging investment managers as
10    defined in this Act shall not be considered businesses
11    owned by minorities, women, or persons with disabilities
12    for the purposes of this Section.
13        (e) When a community college awards a contract, it
14    shall be the aspirational goal of each community college to
15    use businesses owned by minorities, women, and persons with
16    disabilities, as defined in this Act, for not less than 20%
17    of the total dollar amount of all contracts entered into by
18    the community college district, regardless of the source of
19    the funds with which the contracts are paid, which are not
20    subject to federal reimbursement.
21        The percentage specified in this subsection (e)
22    relates to the total dollar amount of contracts during each
23    fiscal year, calculated by examining independently each
24    type of contract for each community college which lets such
25    contracts. Only the percentage of arrangements which
26    represents the participation of businesses owned by

 

 

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1    minorities, women, and persons with disabilities on such
2    contracts shall be included.
3        (f) When a community college awards construction
4    contracts, it shall be the aspirational goal of each
5    community college to use businesses owned by minorities and
6    women, as defined in this Act, for not less than 20% of the
7    total amount of construction contracts entered into by the
8    community college district, regardless of the source of the
9    funds for which the contracts are paid, which are not
10    subject to federal reimbursement. In the case of
11    construction contracts, the provisions of this Act
12    requiring a portion of the contracts awarded to businesses
13    owned and controlled by persons with disabilities do not
14    apply.
15    (2) As used in this Section:
16        "Accounting services" means the measurement,
17    processing and communication of financial information
18    about economic entities including, but is not limited to,
19    financial accounting, management accounting, auditing,
20    cost containment and auditing services, taxation and
21    accounting information systems.
22        "Architectural and engineering services" means
23    professional services of an architectural or engineering
24    nature, or incidental services, that members of the
25    architectural and engineering professions, and individuals
26    in their employ, may logically or justifiably perform,

 

 

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1    including studies, investigations, surveying and mapping,
2    tests, evaluations, consultations, comprehensive planning,
3    program management, conceptual designs, plans and
4    specifications, value engineering, construction phase
5    services, soils engineering, drawing reviews, preparation
6    of operating and maintenance manuals, and other related
7    services.
8        "Emerging investment manager" means an investment
9    manager or claims consultant having assets under
10    management below $10 billion or otherwise adjudicating
11    claims.
12        "Information technology services" means, but is not
13    limited to, specialized technology-oriented solutions by
14    combining the processes and functions of software,
15    hardware, networks, telecommunications, web designers,
16    cloud developing resellers, and electronics.
17        "Insurance broker" means an insurance brokerage firm,
18    claims administrator, or both, that procures, places all
19    lines of insurance, or administers claims with annual
20    premiums or fees of at least $5,000,000 but not more than
21    $10,000,000.
22        "Legal services" means work performed by a lawyer
23    including, but not limited to, contracts in anticipation of
24    litigation, enforcement actions, or investigations.
25    (3) Each State agency and public institution of higher
26education, including community colleges, shall adopt policies

 

 

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1that identify its plan and implementation procedures for
2increasing the use of service firms owned by minorities, women,
3and persons with disabilities.
4    (4) Except as provided in subsection (5), the Council shall
5file no later than March 1 of each year an annual report to the
6Governor and the General Assembly. The report filed with the
7General Assembly shall be filed as required in Section 3.1 of
8the General Assembly Organization Act. This report shall: (i)
9identify the service firms used by each State agency and public
10institution of higher education, (ii) identify the actions it
11has undertaken to increase the use of service firms owned by
12minorities, women, and persons with disabilities, including
13encouraging non-minority-owned firms to use other service
14firms owned by minorities, women, and persons with disabilities
15as subcontractors when the opportunities arise, (iii) state any
16recommendations made by the Council to each State agency and
17public institution of higher education to increase
18participation by the use of service firms owned by minorities,
19women, and persons with disabilities, and (iv) include the
20following:
21        (A) For insurance services: the names of the insurance
22    brokers or claims consultants used, the total of risk
23    managed by each State agency and public institution of
24    higher education by insurance brokers, the total
25    commissions, fees paid, or both, the lines or insurance
26    policies placed, and the amount of premiums placed; and the

 

 

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1    percentage of the risk managed by insurance brokers, the
2    percentage of total commission, fees paid, or both, the
3    lines or insurance policies placed, and the amount of
4    premiums placed with each by the insurance brokers owned by
5    minorities, women, and persons with disabilities by each
6    State agency and public institution of higher education.
7        (B) For investment management services: the names of
8    the investment managers used, the total funds under
9    management of investment managers; the total commissions,
10    fees paid, or both; the total and percentage of funds under
11    management of emerging investment managers owned by
12    minorities, women, and persons with disabilities,
13    including the total and percentage of total commissions,
14    fees paid, or both by each State agency and public
15    institution of higher education.
16        (C) The names of service firms, the percentage and
17    total dollar amount paid for professional services by
18    category by each State agency and public institution of
19    higher education.
20        (D) The names of service firms, the percentage and
21    total dollar amount paid for services by category to firms
22    owned by minorities, women, and persons with disabilities
23    by each State agency and public institution of higher
24    education.
25        (E) The total number of contracts awarded for services
26    by category and the total number of contracts awarded to

 

 

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

 

 

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

 

 

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1education contracting with such firms. If after reviewing such
2evidence the Council finds that there is or has been such
3discrimination against a specific group, race or sex, the
4Council shall establish sheltered markets or adjust existing
5sheltered markets tailored to address the Council's specific
6findings for the divisions of work specified in paragraphs (a),
7(b), and (c) of subsection (1) of this Section.
8(Source: P.A. 99-462, eff. 8-25-15; 99-642, eff. 7-28-16;
9100-391, eff. 8-25-17.)
 
10    Section 99. Effective date. This Act takes effect upon
11becoming law.