Rep. Arthur Turner

Filed: 5/12/2015

 

 


 

 


 
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1
AMENDMENT TO SENATE BILL 1334

2    AMENDMENT NO. ______. Amend Senate Bill 1334 by replacing
3everything after the enacting clause with the following:
 
4    "Section 5. The Business Enterprise for Minorities,
5Females, and Persons with Disabilities Act is amended by
6changing Sections 2, 3, 4, 5, 6, 6a, 7, 8, and 8f and by adding
7Section 4f as follows:
 
8    (30 ILCS 575/2)
9    (Section scheduled to be repealed on June 30, 2016)
10    Sec. 2. Definitions.
11    (A) For the purpose of this Act, the following terms shall
12have the following definitions:
13        (1) "Minority person" shall mean a person who is a
14    citizen or lawful permanent resident of the United States
15    and who is any of the following:
16            (a) American Indian or Alaska Native (a person

 

 

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1        having origins in any of the original peoples of North
2        and South America, including Central America, and who
3        maintains tribal affiliation or community attachment).
4            (b) Asian (a person having origins in any of the
5        original peoples of the Far East, Southeast Asia, or
6        the Indian subcontinent, including, but not limited
7        to, Cambodia, China, India, Japan, Korea, Malaysia,
8        Pakistan, the Philippine Islands, Thailand, and
9        Vietnam).
10            (c) Black or African American (a person having
11        origins in any of the black racial groups of Africa).
12        Terms such as "Haitian" or "Negro" can be used in
13        addition to "Black or African American".
14            (d) Hispanic or Latino (a person of Cuban, Mexican,
15        Puerto Rican, South or Central American, or other
16        Spanish culture or origin, regardless of race).
17            (e) Native Hawaiian or Other Pacific Islander (a
18        person having origins in any of the original peoples of
19        Hawaii, Guam, Samoa, or other Pacific Islands).
20        (2) "Female" shall mean a person who is a citizen or
21    lawful permanent resident of the United States and who is
22    of the female gender.
23        (2.05) "Person with a disability" means a person who is
24    a citizen or lawful resident of the United States and is a
25    person qualifying as being disabled under subdivision
26    (2.1) of this subsection (A).

 

 

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1        (2.1) "Disabled" means a severe physical or mental
2    disability that:
3            (a) results from:
4            amputation,
5            arthritis,
6            autism,
7            blindness,
8            burn injury,
9            cancer,
10            cerebral palsy,
11            Crohn's disease,
12            cystic fibrosis,
13            deafness,
14            head injury,
15            heart disease,
16            hemiplegia,
17            hemophilia,
18            respiratory or pulmonary dysfunction,
19            an intellectual disability,
20            mental illness,
21            multiple sclerosis,
22            muscular dystrophy,
23            musculoskeletal disorders,
24            neurological disorders, including stroke and
25        epilepsy,
26            paraplegia,

 

 

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1            quadriplegia and other spinal cord conditions,
2            sickle cell anemia,
3            ulcerative colitis,
4            specific learning disabilities, or
5            end stage renal failure disease; and
6            (b) substantially limits one or more of the
7        person's major life activities.
8        Another disability or combination of disabilities may
9    also be considered as a severe disability for the purposes
10    of item (a) of this subdivision (2.1) if it is determined
11    by an evaluation of rehabilitation potential to cause a
12    comparable degree of substantial functional limitation
13    similar to the specific list of disabilities listed in item
14    (a) of this subdivision (2.1).
15        (3) "Minority owned business" means a business concern
16    which is at least 51% owned by one or more minority
17    persons, or in the case of a corporation, at least 51% of
18    the stock in which is owned by one or more minority
19    persons; and the management and daily business operations
20    of which are controlled by one or more of the minority
21    individuals who own it.
22        (4) "Female owned business" means a business concern
23    which is at least 51% owned by one or more females, or, in
24    the case of a corporation, at least 51% of the stock in
25    which is owned by one or more females; and the management
26    and daily business operations of which are controlled by

 

 

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1    one or more of the females who own it.
2        (4.1) "Business owned by a person with a disability"
3    means a business concern that is at least 51% owned by one
4    or more persons with a disability and the management and
5    daily business operations of which are controlled by one or
6    more of the persons with disabilities who own it. A
7    not-for-profit agency for persons with disabilities that
8    is exempt from taxation under Section 501 of the Internal
9    Revenue Code of 1986 is also considered a "business owned
10    by a person with a disability".
11        (4.2) "Council" means the Business Enterprise Council
12    for Minorities, Females, and Persons with Disabilities
13    created under Section 5 of this Act.
14        (5) "State contracts" means all State contracts,
15    regardless of the source of the funds with which the
16    contracts are paid, which are not subject to federal
17    reimbursement. "State contracts" does not include
18    contracts awarded by a retirement system, pension fund, or
19    investment board subject to Section 1-109.1 of the Illinois
20    Pension Code. This definition shall control over any
21    existing definition under this Act or applicable
22    administrative rule. "State contracts" shall mean all
23    State contracts, funded exclusively with State funds which
24    are not subject to federal reimbursement, whether
25    competitively bid or negotiated as defined by the Secretary
26    of the Council and approved by the Council.

 

 

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1        "State construction contracts" means all State
2    contracts entered into by a State agency or public
3    institution of higher education State university for the
4    repair, remodeling, renovation or construction of a
5    building or structure, or for the construction or
6    maintenance of a highway defined in Article 2 of the
7    Illinois Highway Code.
8        (6) "State agencies" shall mean all departments,
9    officers, boards, commissions, institutions and bodies
10    politic and corporate of the State, but does not include
11    the Board of Trustees of the University of Illinois, the
12    Board of Trustees of Southern Illinois University, the
13    Board of Trustees of Chicago State University, the Board of
14    Trustees of Eastern Illinois University, the Board of
15    Trustees of Governors State University, the Board of
16    Trustees of Illinois State University, the Board of
17    Trustees of Northeastern Illinois University, the Board of
18    Trustees of Northern Illinois University, the Board of
19    Trustees of Western Illinois University, municipalities or
20    other local governmental units, or other State
21    constitutional officers.
22        (7) "Public institutions of higher education" means
23    the University of Illinois, Southern Illinois University,
24    Chicago State University, Eastern Illinois University,
25    Governors State University, Illinois State University,
26    Northeastern Illinois University, Northern Illinois

 

 

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1    University, Western Illinois University, the public
2    community colleges of the State, and any other public
3    universities, colleges and community colleges now or
4    hereafter established or authorized by the General
5    Assembly. "State universities" shall mean the Board of
6    Trustees of the University of Illinois, the Board of
7    Trustees of Southern Illinois University, the Board of
8    Trustees of Chicago State University, the Board of Trustees
9    of Eastern Illinois University, the Board of Trustees of
10    Governors State University, the Board of Trustees of
11    Illinois State University, the Board of Trustees of
12    Northeastern Illinois University, the Board of Trustees of
13    Northern Illinois University, and the Board of Trustees of
14    Western Illinois University.
15        (8) "Certification" means a determination made by the
16    Council or by one delegated authority from the Council to
17    make certifications, or by a State agency with statutory
18    authority to make such a certification, that a business
19    entity is a business owned by a minority, female, or person
20    with a disability for whatever purpose. A business owned
21    and controlled by females shall be certified as a "female
22    owned business". A business owned and controlled by females
23    who are also minorities shall be certified as both a
24    "female owned business" and a "minority owned business".
25        (9) "Control" means the exclusive or ultimate and sole
26    control of the business including, but not limited to,

 

 

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1    capital investment and all other financial matters,
2    property, acquisitions, contract negotiations, legal
3    matters, officer-director-employee selection and
4    comprehensive hiring, operating responsibilities,
5    cost-control matters, income and dividend matters,
6    financial transactions and rights of other shareholders or
7    joint partners. Control shall be real, substantial and
8    continuing, not pro forma. Control shall include the power
9    to direct or cause the direction of the management and
10    policies of the business and to make the day-to-day as well
11    as major decisions in matters of policy, management and
12    operations. Control shall be exemplified by possessing the
13    requisite knowledge and expertise to run the particular
14    business and control shall not include simple majority or
15    absentee ownership.
16        (10) "Business concern or business" means a business
17    that has annual gross sales of less than $150,000,000
18    $75,000,000 as evidenced by the federal income tax return
19    of the business. A firm with gross sales in excess of this
20    cap may apply to the Council for certification for a
21    particular contract if the firm can demonstrate that the
22    contract would have significant impact on businesses owned
23    by minorities, females, or persons with disabilities as
24    suppliers or subcontractors or in employment of
25    minorities, females, or persons with disabilities.
26    (B) When a business concern is owned at least 51% by any

 

 

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1combination of minority persons, females, or persons with
2disabilities, even though none of the 3 classes alone holds at
3least a 51% interest, the ownership requirement for purposes of
4this Act is considered to be met. The certification category
5for the business is that of the class holding the largest
6ownership interest in the business. If 2 or more classes have
7equal ownership interests, the certification category shall be
8determined by the business concern.
9(Source: P.A. 97-227, eff. 1-1-12; 97-396, eff. 1-1-12; 97-813,
10eff. 7-13-12; 98-95, eff. 7-17-13.)
 
11    (30 ILCS 575/3)  (from Ch. 127, par. 132.603)
12    (Section scheduled to be repealed on June 30, 2016)
13    Sec. 3. Implementation and applicability. This Act shall be
14applied to all State agencies and public institutions of higher
15education State universities.
16(Source: P.A. 85-729.)
 
17    (30 ILCS 575/4)  (from Ch. 127, par. 132.604)
18    (Section scheduled to be repealed on June 30, 2016)
19    Sec. 4. Award of State contracts.
20    (a) Except as provided in subsections (b) and (c), not less
21than 20% of the total dollar amount of State contracts, as
22defined by the Secretary of the Council and approved by the
23Council, shall be established as a goal to be awarded to
24businesses owned by minorities, females, and persons with

 

 

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1disabilities; provided, however, that of the total amount of
2all State contracts awarded to businesses owned by minorities,
3females, and persons with disabilities pursuant to this
4Section, contracts representing at least 11% shall be awarded
5to businesses owned by minorities, contracts representing at
6least 7% shall be awarded to female-owned businesses, and
7contracts representing at least 2% shall be awarded to
8businesses owned by persons with disabilities.
9    The above percentage relates to the total dollar amount of
10State contracts during each State fiscal year, calculated by
11examining independently each type of contract for each agency
12or public institutions of higher education university which
13lets such contracts. Only that percentage of arrangements which
14represents the participation of businesses owned by
15minorities, females, and persons with disabilities on such
16contracts shall be included.
17    (b) In the case of State construction contracts, the
18provisions of subsection (a) requiring a portion of State
19contracts to be awarded to businesses owned and controlled by
20persons with disabilities do not apply. Not less than 20% 10%
21of the total dollar amount of State construction contracts is
22established as a goal to be awarded to minority and female
23owned businesses, and contracts representing 50% of the amount
24of all State construction contracts awarded to minority and
25female owned businesses shall be awarded to female owned
26businesses.

 

 

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1    (c) In the case of all work undertaken by the University of
2Illinois related to the planning, organization, and staging of
3the games, the University of Illinois shall establish a goal of
4awarding not less than 25% of the annual dollar value of all
5contracts, purchase orders, and other agreements (collectively
6referred to as "the contracts") to minority-owned businesses or
7businesses owned by a person with a disability and 5% of the
8annual dollar value the contracts to female-owned businesses.
9For purposes of this subsection, the term "games" has the
10meaning set forth in the Olympic Games and Paralympic Games
11(2016) Law.
12    (d) Within one year after April 28, 2009 (the effective
13date of Public Act 96-8), the Department of Central Management
14Services shall conduct a social scientific study that measures
15the impact of discrimination on minority and female business
16development in Illinois. Within 18 months after April 28, 2009
17(the effective date of Public Act 96-8), the Department shall
18issue a report of its findings and any recommendations on
19whether to adjust the goals for minority and female
20participation established in this Act. Copies of this report
21and the social scientific study shall be filed with the
22Governor and the General Assembly.
23    (e) Those who submit bids or proposals for State contracts
24shall not be given a period after the bid or proposal is
25submitted to cure deficiencies in the bid or proposal under
26this Act unless mandated by federal law or regulation.

 

 

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1(Source: P.A. 96-7, eff. 4-3-09; 96-8, eff. 4-28-09; 96-706,
2eff. 8-25-09; 96-795, eff. 7-1-10 (see Section 5 of P.A. 96-793
3for the effective date of changes made by P.A. 96-795);
496-1000, eff. 7-2-10.)
 
5    (30 ILCS 575/4f new)
6    Sec. 4f. Award of State contracts.
7        (1) It is hereby declared to be the public policy of
8    the State of Illinois to promote and encourage each State
9    agency and public institution of higher education to use
10    businesses owned by minorities, females, and persons with
11    disabilities in the area of goods and services, including,
12    but not limited to, insurance services, investment
13    management services, information technology services,
14    accounting services, cost containment and auditing
15    services, architectural and engineering services, and
16    legal services. Furthermore, each State agency and public
17    institution of higher education shall utilize such firms to
18    the greatest extent feasible within the bounds of financial
19    and fiduciary prudence, and take affirmative steps to
20    remove any barriers to the full participation of such firms
21    in the procurement and placement opportunities afforded.
22            (a) When a State agency and public institution of
23        higher education enters into a contract for insurance
24        services, for each State agency and public institution
25        of higher education, it shall be the goal to use

 

 

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

 

 

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1            "Accounting services" means the measurement,
2        processing and communication of financial information
3        about economic entities including, but is not limited
4        to, financial accounting, management accounting,
5        auditing, cost containment and auditing services,
6        taxation and accounting information systems.
7            "Architectural and engineering services" means
8        professional services of an architectural or
9        engineering nature, or incidental services, that
10        members of the architectural and engineering
11        professions, and individuals in their employ, may
12        logically or justifiably perform, including studies,
13        investigations, surveying and mapping, tests,
14        evaluations, consultations, comprehensive planning,
15        program management, conceptual designs, plans and
16        specifications, value engineering, construction phase
17        services, soils engineering, drawing reviews,
18        preparation of operating and maintenance manuals, and
19        other related services.
20            "Emerging investment manager" means an investment
21        manager or claims consultant having assets under
22        management below $20 billion or otherwise adjudicating
23        claims.
24            "Information technology services" means, but is
25        not limited to, specialized technology-oriented
26        solutions by combining the processes and functions of

 

 

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1        software, hardware, networks, telecommunications, web
2        designers, cloud developing resellers, and
3        electronics.
4            "Insurance broker" means an insurance brokerage
5        firm, claims administrator, or both, that procures,
6        places all lines of insurance, or administers claims
7        with annual premiums or fees of at least $5,000,000 but
8        not more than $10,000,000.
9            "Legal services" means work performed by a lawyer
10        including, but not limited to, contracts in
11        anticipation of litigation, enforcement actions, or
12        investigations.
13        (3) Each State agency and public institutions of higher
14    education shall adopt policies that identify its plan and
15    implementation procedures for increasing the use of
16    service firms owned by minorities, females, and persons
17    with disabilities.
18        (4) The Council shall file no later than March 1 of
19    each year an annual report to the Governor and the General
20    Assembly. This report shall: (i) identify the services
21    firms used by each State agency and public institution of
22    higher education, (ii) identify the actions it has
23    undertaken to increase the use of service firms owned by
24    minorities, females, and persons with disabilities,
25    including encouraging non-minority owned firms to use
26    other service firms owned by minorities, females, and

 

 

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1    persons with disabilities as subcontractors when the
2    opportunities arise, (iii) state any recommendations made
3    by the Council to each State agency and public institution
4    of higher education to increase participation by the use of
5    service firms owned by minorities, females, and persons
6    with disabilities, and (iv) include the following:
7            (A) For insurance services: the names of the
8        insurance brokers or claims consultants used, the
9        total of risk managed by each State agency and public
10        institution of higher education by insurance brokers,
11        the total commissions, fees paid, or both, the lines or
12        insurance policies placed, and the amount of premiums
13        placed; and the percentage of the risk managed by
14        insurance brokers, the percentage of total commission,
15        fees paid, or both, the lines or insurance policies
16        placed, and the amount of premiums placed with each by
17        the insurance brokers owned by minorities, females,
18        and persons with disabilities by each State agency and
19        public institution of higher education.
20            (B) For investment management services: the names
21        of the investment managers used, the total funds under
22        management of investment managers; the total
23        commissions, fees paid, or both; the total and
24        percentage of funds under management of emerging
25        investment managers owned by minorities, females, and
26        persons with disabilities, including the total and

 

 

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1        percentage of total commissions, fees paid, or both by
2        each State agency and public institution of higher
3        education.
4            (C) The names of service firms, the percentage and
5        total dollar amount paid for professional services by
6        category by each State agency and public institution of
7        higher education.
8            (D) The names of service firms, the percentage and
9        total dollar amount paid for services by category to
10        firms owned by minorities, females, and persons with
11        disabilities by each State agency and public
12        institution of higher education.
13            (E) The total number of contracts awarded for
14        services by category and the total number of contracts
15        awarded to firms owned by minorities, females, and
16        persons with disabilities by each State agency and
17        public institution of higher education.
18        (5) The status of the utilization of services shall be
19    discussed at each of the regularly scheduled Business
20    Enterprise Council meetings. Time shall be allotted for the
21    Council to receive, review, and discuss the progress of the
22    use of service firms owned by minorities, females, and
23    persons with disabilities by each State agency and public
24    institutions of higher education; and any evidence
25    regarding past or present racial, ethnic, or gender-based
26    discrimination which directly impacts State agency or

 

 

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1    public institutions of higher education contracting with
2    such firms. If after reviewing such evidence the Council
3    finds that there is or has been such discrimination against
4    a specific group, race or sex, the Council shall establish
5    sheltered markets or adjust existing sheltered markets
6    tailored to address the Council's specific findings for
7    these divisions of work.
 
8    (30 ILCS 575/5)  (from Ch. 127, par. 132.605)
9    (Section scheduled to be repealed on June 30, 2016)
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, 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 or
21female owned or owned by persons with disabilities, 2
22individuals representing the business community, and a
23representative of public institutions of higher education
24public universities shall be appointed by the Governor. These
25members shall serve 2 year terms and shall be eligible for

 

 

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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,
14Females, 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 State
18university shall appoint a liaison to the Council. The liaison
19shall be responsible for submitting to the Council any reports
20and documents 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, females, or
25    persons with disabilities.
26        (b) Maintain a list of all businesses legitimately

 

 

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

 

 

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

 

 

09900SB1334ham001- 22 -LRB099 10713 SXM 35467 a

1    Such procedures shall require prior approval by Council.
2        (d) To devise appropriate policies, regulations and
3    procedures for including participation by businesses owned
4    by minorities, females, and persons with disabilities as
5    prime contractors including, but not limited to, (i)
6    encouraging the inclusions of qualified businesses owned
7    by minorities, females, and persons with disabilities on
8    solicitation lists, (ii) investigating the potential of
9    blanket bonding programs for small construction jobs,
10    (iii) investigating and making recommendations concerning
11    the use of the sheltered 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. 94-793, eff. 5-19-06.)
 
24    (30 ILCS 575/6)  (from Ch. 127, par. 132.606)
25    (Section scheduled to be repealed on June 30, 2016)

 

 

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1    Sec. 6. Agency compliance plans. Each State agency and
2public institutions of higher education State university under
3the jurisdiction of this Act shall file with the Council an
4annual compliance plan which shall outline the goals of the
5State agency or public institutions of higher education State
6university for contracting with businesses owned by
7minorities, females, and persons with disabilities for the then
8current fiscal year, the manner in which the agency intends to
9reach these goals and a timetable for reaching these goals. The
10Council shall review and approve the plan of each State agency
11and public institutions of higher education State university
12and may reject any plan that does not comply with this Act or
13any rules or regulations promulgated pursuant to this 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 State university
17head, expressing a commitment to encourage the use of
18businesses owned by minorities, females, and persons with
19disabilities, (2) the designation of the liaison officer
20provided for in Section 5 of this Act, (3) procedures to
21distribute to potential contractors and vendors the list of all
22businesses legitimately classified as businesses owned by
23minorities, females, and persons with disabilities and so
24certified under this Act, (4) procedures to set separate
25contract goals on specific prime contracts and purchase orders
26with subcontracting possibilities based upon the type of work

 

 

09900SB1334ham001- 24 -LRB099 10713 SXM 35467 a

1or services and subcontractor availability, (5) procedures to
2assure that contractors and vendors make good faith efforts to
3meet contract goals, (6) procedures for contract goal
4exemption, modification and waiver, and (7) the delineation of
5separate contract goals for businesses owned by minorities,
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 State university as
10the Council deems necessary and appropriate to fulfill the
11purpose of this Act. Such responsibilities may include, but
12need not be limited to those outlined in subsections (1), (2)
13and (3) of Section 7 and paragraph (a) of Section 8.
14    (c) Each State agency and public institution of higher
15education State university under the jurisdiction of this Act
16shall file with the Council an annual report of its utilization
17of businesses owned by minorities, 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 State university to meet
23its goals under the Act.
24    (d) Notwithstanding any provisions to the contrary in this
25Act, any State agency or public institution of higher education
26State university which administers a construction program, for

 

 

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1which federal law or regulations establish standards and
2procedures for the utilization of minority, disadvantaged, and
3female-owned business, shall implement a disadvantaged
4business enterprise program to include minority, disadvantaged
5and female-owned businesses, using the federal standards and
6procedures for the establishment of goals and utilization
7procedures for the State-funded, as well as the federally
8assisted, portions of the program. In such cases, these goals
9shall not exceed those established pursuant to the relevant
10federal statutes or regulations. Notwithstanding the
11provisions of Section 8b, the Illinois Department of
12Transportation is authorized to establish sheltered markets
13for the State-funded portions of the program consistent with
14federal law and regulations. Additionally, a compliance plan
15which is filed by such State agency or public institution of
16higher education State university pursuant to this Act, which
17incorporates equivalent terms and conditions of its
18federally-approved compliance plan, shall be deemed approved
19under this Act.
20(Source: P.A. 88-377; 88-597, eff. 8-28-94.)
 
21    (30 ILCS 575/6a)  (from Ch. 127, par. 132.606a)
22    (Section scheduled to be repealed on June 30, 2016)
23    Sec. 6a. Notice of contracts to Council. Except in case of
24emergency as defined in the Illinois Procurement Code
25Purchasing Act, or as authorized by rule promulgated by the

 

 

09900SB1334ham001- 26 -LRB099 10713 SXM 35467 a

1Department of Central Management Services, each agency and
2public institution of higher education State university under
3the jurisdiction of this Act shall notify the Secretary of the
4Council of proposed contracts for professional and artistic
5services and provide the information in the form and detail as
6required by rule promulgated by the Department of Central
7Management Services. Notification may be made through direct
8written communication to the Secretary to be received at least
914 days before execution of the contract (or the solicitation
10response date, if applicable) or by advertising in the official
11State newspaper for at least 3 days, the last of which must be
12at least 10 days after the first publication. The agency or
13public institution of higher education university must
14consider any vendor referred by the Secretary before execution
15of the contract. The provisions of this Section shall not apply
16to any State agency or public institution of higher education
17State university that has awarded contracts for professional
18and artistic services to businesses owned by minorities,
19females, and persons with disabilities totalling in the
20aggregate $40,000,000 $5,000,000 or more during the preceding
21fiscal year.
22(Source: P.A. 87-628; 88-377; 88-597, eff. 8-28-94.)
 
23    (30 ILCS 575/7)  (from Ch. 127, par. 132.607)
24    (Section scheduled to be repealed on June 30, 2016)
25    Sec. 7. Exemptions and waivers; publication of data.

 

 

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1    (1) Individual contract exemptions. The Council, on its own
2initiative or at the request of the affected agency, public
3institution of higher education university, or recipient of a
4grant or loan of State funds of $250,000 or more complying with
5Section 45 of the State Finance Act, may permit an individual
6contract or contract package, (related contracts being bid or
7awarded simultaneously for the same project or improvements) be
8made wholly or partially exempt from State contracting goals
9for businesses owned by minorities, 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, females, and persons with disabilities to ensure
16adequate competition and an expectation of reasonable prices on
17bids or proposals solicited for the individual contract or
18contract 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 university, may permit an entire class of
23    contracts be made exempt from State contracting goals for
24    businesses owned by minorities, females, and persons with
25    disabilities whenever there has been a determination,
26    reduced to writing and based on the best information

 

 

09900SB1334ham001- 28 -LRB099 10713 SXM 35467 a

1    available at the time of the determination, that there is
2    an insufficient number of qualified businesses owned by
3    minorities, females, and persons with disabilities to
4    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, females, and persons with disabilities.
15    (4) Conflict with other laws. In the event that any State
16contract, which otherwise would be subject to the provisions of
17this Act, is or becomes subject to federal laws or regulations
18which conflict with the provisions of this Act or actions of
19the State taken pursuant hereto, the provisions of the federal
20laws or regulations shall apply and the contract shall be
21interpreted and enforced accordingly.
22    (5) Each chief procurement officer, as defined in the
23Illinois Procurement Code, shall maintain on his or her
24official Internet website a database of waivers granted under
25this Section with respect to contracts under his or her
26jurisdiction. The database, which shall be updated

 

 

09900SB1334ham001- 29 -LRB099 10713 SXM 35467 a

1periodically as necessary, shall be searchable by contractor
2name and by contracting State agency.
3    Each public notice required by law of the award of a State
4contract shall include for each bid submitted for that contract
5the following: (i) the bidder's name, (ii) the bid amount,
6(iii) the bid's percentage of disadvantaged business
7utilization plan, and (iv) the bid's percentage of business
8enterprise program utilization plan.
9(Source: P.A. 96-1064, eff. 7-16-10.)
 
10    (30 ILCS 575/8)  (from Ch. 127, par. 132.608)
11    (Section scheduled to be repealed on June 30, 2016)
12    Sec. 8. Enforcement. The Council shall make such findings,
13recommendations and proposals to the Governor as are necessary
14and appropriate to enforce this Act. If, as a result of its
15monitoring activities, the Council determines that its goals
16and policies are not being met by any State agency or public
17institution of higher education State university, the Council
18may recommend any or all of the following actions:
19    (a) Establish enforcement procedures whereby the Council
20may recommend to the appropriate State agency, public
21institutions of higher education State university, or law
22enforcement officer that legal or administrative remedies be
23initiated for violations of contract provisions or rules issued
24hereunder or by a contracting State agency or public
25institutions of higher education State university. State

 

 

09900SB1334ham001- 30 -LRB099 10713 SXM 35467 a

1agencies and public institutions of higher education State
2universities shall be authorized to adopt remedies for such
3violations which shall include (1) termination of the contract
4involved, (2) prohibition of participation of the respondents
5in public contracts for a period not to exceed one year, (3)
6imposition of a penalty not to exceed any profit acquired as a
7result of violation, or (4) any combination thereof.
8    (b) If the Council concludes that a compliance plan
9submitted under Section 6 is unlikely to produce the
10participation goals for businesses owned by minorities,
11females, and persons with disabilities within the then current
12fiscal year, the Council may recommend that the State agency or
13public institution of higher education State university revise
14its plan to provide additional opportunities for participation
15by businesses owned by minorities, females, and persons with
16disabilities. Such recommended revisions may include, but
17shall not be limited to, the following:
18        (i) assurances of stronger and better focused
19    solicitation efforts to obtain more businesses owned by
20    minorities, females, and persons with disabilities as
21    potential sources of supply;
22        (ii) division of job or project requirements, when
23    economically feasible, into tasks or quantities to permit
24    participation of businesses owned by minorities, females,
25    and persons with disabilities;
26        (iii) elimination of extended experience or

 

 

09900SB1334ham001- 31 -LRB099 10713 SXM 35467 a

1    capitalization requirements, when programmatically
2    feasible, to permit participation of businesses owned by
3    minorities, females, and persons with disabilities;
4        (iv) identification of specific proposed contracts as
5    particularly attractive or appropriate for participation
6    by businesses owned by minorities, females, and persons
7    with disabilities, such identification to result from and
8    be coupled with the efforts of subparagraphs (i) through
9    (iii);
10        (v) implementation of those regulations established
11    for the use of the sheltered market process.
12(Source: P.A. 88-377; 88-597, eff. 8-28-94.)
 
13    (30 ILCS 575/8f)
14    (Section scheduled to be repealed on June 30, 2016)
15    Sec. 8f. Annual report. The Council shall file no later
16than March 1 of each year, an annual report that shall detail
17the level of achievement toward the goals specified in this Act
18over the 3 most recent fiscal years. The annual report shall
19include, but need not be limited to the following:
20        (1) a summary detailing expenditures State
21    appropriations subject to the goals, the actual goals
22    specified, and the goals attained by each State agency and
23    public institution of higher education State university;
24        (2) a summary of the number of contracts awarded and
25    the average contract amount by each State agency and public

 

 

09900SB1334ham001- 32 -LRB099 10713 SXM 35467 a

1    institution of higher education State university;
2        (3) an analysis of the level of overall goal
3    achievement concerning purchases from minority businesses,
4    female-owned businesses, and businesses owned by persons
5    with disabilities;
6        (4) an analysis of the number of businesses owned by
7    minorities, females, and persons with disabilities that
8    are certified under the program as well as the number of
9    those businesses that received State procurement
10    contracts; and
11        (5) a summary of the number of contracts awarded to
12    businesses with annual gross sales of less than $1,000,000;
13    of $1,000,000 or more, but less than $5,000,000; of
14    $5,000,000 or more, but less than $10,000,000; and of
15    $10,000,000 or more.
16(Source: P.A. 88-597, eff. 8-28-94.)
 
17    Section 10. The Illinois Pension Code is amended by
18changing Section 1-109.1 as follows:
 
19    (40 ILCS 5/1-109.1)  (from Ch. 108 1/2, par. 1-109.1)
20    Sec. 1-109.1. Allocation and delegation of fiduciary
21duties.
22    (1) Subject to the provisions of Section 22A-113 of this
23Code and subsections (2) and (3) of this Section, the board of
24trustees of a retirement system or pension fund established

 

 

09900SB1334ham001- 33 -LRB099 10713 SXM 35467 a

1under this Code may:
2        (a) Appoint one or more investment managers as
3    fiduciaries to manage (including the power to acquire and
4    dispose of) any assets of the retirement system or pension
5    fund; and
6        (b) Allocate duties among themselves and designate
7    others as fiduciaries to carry out specific fiduciary
8    activities other than the management of the assets of the
9    retirement system or pension fund.
10    (2) The board of trustees of a pension fund established
11under Article 5, 6, 8, 9, 10, 11, 12 or 17 of this Code may not
12transfer its investment authority, nor transfer the assets of
13the fund to any other person or entity for the purpose of
14consolidating or merging its assets and management with any
15other pension fund or public investment authority, unless the
16board resolution authorizing such transfer is submitted for
17approval to the contributors and pensioners of the fund at
18elections held not less than 30 days after the adoption of such
19resolution by the board, and such resolution is approved by a
20majority of the votes cast on the question in both the
21contributors election and the pensioners election. The
22election procedures and qualifications governing the election
23of trustees shall govern the submission of resolutions for
24approval under this paragraph, insofar as they may be made
25applicable.
26    (3) Pursuant to subsections (h) and (i) of Section 6 of

 

 

09900SB1334ham001- 34 -LRB099 10713 SXM 35467 a

1Article VII of the Illinois Constitution, the investment
2authority of boards of trustees of retirement systems and
3pension funds established under this Code is declared to be a
4subject of exclusive State jurisdiction, and the concurrent
5exercise by a home rule unit of any power affecting such
6investment authority is hereby specifically denied and
7preempted.
8    (4) For the purposes of this Code, "emerging investment
9manager" means a qualified investment adviser that manages an
10investment portfolio of at least $10,000,000 but less than
11$20,000,000,000 $10,000,000,000 and is a "minority owned
12business", "female owned business" or "business owned by a
13person with a disability" as those terms are defined in the
14Business Enterprise for Minorities, Females, and Persons with
15Disabilities Act.
16    It is hereby declared to be the public policy of the State
17of Illinois to encourage the trustees of public employee
18retirement systems, pension funds, and investment boards to use
19emerging investment managers in managing their system's
20assets, encompassing all asset classes, and increase the
21racial, ethnic, and gender diversity of its fiduciaries, to the
22greatest extent feasible within the bounds of financial and
23fiduciary prudence, and to take affirmative steps to remove any
24barriers to the full participation in investment opportunities
25afforded by those retirement systems, pension funds, and
26investment boards.

 

 

09900SB1334ham001- 35 -LRB099 10713 SXM 35467 a

1    On or before January 1, 2010, a retirement system, pension
2fund, or investment board subject to this Code, except those
3whose investments are restricted by Section 1-113.2 of this
4Code, shall adopt a policy that sets forth goals for
5utilization of emerging investment managers. This policy shall
6include quantifiable goals for the management of assets in
7specific asset classes by emerging investment managers. The
8retirement system, pension fund, or investment board shall
9establish 3 separate goals for: (i) emerging investment
10managers that are minority owned businesses; (ii) emerging
11investment managers that are female owned businesses; and (iii)
12emerging investment managers that are businesses owned by a
13person with a disability. The goals established shall be based
14on the percentage of total dollar amount of investment service
15contracts let to minority owned businesses, female owned
16businesses, and businesses owned by a person with a disability,
17as those terms are defined in the Business Enterprise for
18Minorities, Females, and Persons with Disabilities Act. The
19retirement system, pension fund, or investment board shall
20annually review the goals established under this subsection.
21    If in any case an emerging investment manager meets the
22criteria established by a board for a specific search and meets
23the criteria established by a consultant for that search, then
24that emerging investment manager shall receive an invitation by
25the board of trustees, or an investment committee of the board
26of trustees, to present his or her firm for final consideration

 

 

09900SB1334ham001- 36 -LRB099 10713 SXM 35467 a

1of a contract. In the case where multiple emerging investment
2managers meet the criteria of this Section, the staff may
3choose the most qualified firm or firms to present to the
4board.
5    The use of an emerging investment manager does not
6constitute a transfer of investment authority for the purposes
7of subsection (2) of this Section.
8    (5) Each retirement system, pension fund, or investment
9board subject to this Code, except those whose investments are
10restricted by Section 1-113.2 of this Code, shall establish a
11policy that sets forth goals for increasing the racial, ethnic,
12and gender diversity of its fiduciaries, including its
13consultants and senior staff. Each system, fund, and investment
14board shall annually review the goals established under this
15subsection.
16    (6) On or before January 1, 2010, a retirement system,
17pension fund, or investment board subject to this Code, except
18those whose investments are restricted by Section 1-113.2 of
19this Code, shall adopt a policy that sets forth goals for
20utilization of businesses owned by minorities, females, and
21persons with disabilities for all contracts and services. The
22goals established shall be based on the percentage of total
23dollar amount of all contracts let to minority owned
24businesses, female owned businesses, and businesses owned by a
25person with a disability, as those terms are defined in the
26Business Enterprise for Minorities, Females, and Persons with

 

 

09900SB1334ham001- 37 -LRB099 10713 SXM 35467 a

1Disabilities Act. The retirement system, pension fund, or
2investment board shall annually review the goals established
3under this subsection.
4    (7) On or before January 1, 2010, a retirement system,
5pension fund, or investment board subject to this Code, except
6those whose investments are restricted by Section 1-113.2 of
7this Code, shall adopt a policy that sets forth goals for
8increasing the utilization of minority broker-dealers. For the
9purposes of this Code, "minority broker-dealer" means a
10qualified broker-dealer who meets the definition of "minority
11owned business", "female owned business", or "business owned by
12a person with a disability", as those terms are defined in the
13Business Enterprise for Minorities, Females, and Persons with
14Disabilities Act. The retirement system, pension fund, or
15investment board shall annually review the goals established
16under this Section.
17    (8) Each retirement system, pension fund, and investment
18board subject to this Code, except those whose investments are
19restricted by Section 1-113.2 of this Code, shall submit a
20report to the Governor and the General Assembly by January 1 of
21each year that includes the following: (i) the policy adopted
22under subsection (4) of this Section, including the names and
23addresses of the emerging investment managers used, percentage
24of the assets under the investment control of emerging
25investment managers for the 3 separate goals, and the actions
26it has undertaken to increase the use of emerging investment

 

 

09900SB1334ham001- 38 -LRB099 10713 SXM 35467 a

1managers, including encouraging other investment managers to
2use emerging investment managers as subcontractors when the
3opportunity arises; (ii) the policy adopted under subsection
4(5) of this Section; (iii) the policy adopted under subsection
5(6) of this Section; (iv) the policy adopted under subsection
6(7) of this Section, including specific actions undertaken to
7increase the use of minority broker-dealers; and (v) the policy
8adopted under subsection (9) of this Section.
9    (9) On or before February 1, 2015, a retirement system,
10pension fund, or investment board subject to this Code, except
11those whose investments are restricted by Section 1-113.2 of
12this Code, shall adopt a policy that sets forth goals for
13increasing the utilization of minority investment managers.
14For the purposes of this Code, "minority investment manager"
15means a qualified investment manager that manages an investment
16portfolio and meets the definition of "minority owned
17business", "female owned business", or "business owned by a
18person with a disability", as those terms are defined in the
19Business Enterprise for Minorities, Females, and Persons with
20Disabilities Act.
21    It is hereby declared to be the public policy of the State
22of Illinois to encourage the trustees of public employee
23retirement systems, pension funds, and investment boards to use
24minority investment managers in managing their systems'
25assets, encompassing all asset classes, and to increase the
26racial, ethnic, and gender diversity of their fiduciaries, to

 

 

09900SB1334ham001- 39 -LRB099 10713 SXM 35467 a

1the greatest extent feasible within the bounds of financial and
2fiduciary prudence, and to take affirmative steps to remove any
3barriers to the full participation in investment opportunities
4afforded by those retirement systems, pension funds, and
5investment boards.
6    The retirement system, pension fund, or investment board
7shall establish 3 separate goals for: (i) minority investment
8managers that are minority owned businesses; (ii) minority
9investment managers that are female owned businesses; and (iii)
10minority investment managers that are businesses owned by a
11person with a disability. The retirement system, pension fund,
12or investment board shall annually review the goals established
13under this Section.
14    If in any case a minority investment manager meets the
15criteria established by a board for a specific search and meets
16the criteria established by a consultant for that search, then
17that minority investment manager shall receive an invitation by
18the board of trustees, or an investment committee of the board
19of trustees, to present his or her firm for final consideration
20of a contract. In the case where multiple minority investment
21managers meet the criteria of this Section, the staff may
22choose the most qualified firm or firms to present to the
23board.
24    The use of a minority investment manager does not
25constitute a transfer of investment authority for the purposes
26of subsection (2) of this Section.

 

 

09900SB1334ham001- 40 -LRB099 10713 SXM 35467 a

1    (10) Beginning January 1, 2016, it shall be the goal for a
2retirement system, pension fund, or investment board subject to
3this Code to use emerging investment managers for not less than
420% of the total funds under management. Furthermore, it shall
5be the goal that not less than 20% of investment advisors be
6minorities, females, and persons with disabilities as those
7terms are defined in the Business Enterprise for Minorities,
8Females, and Persons with Disabilities Act. It shall be the
9goal to utilize businesses owned by minorities, females, and
10persons with disabilities for not less than 20% of contracts
11awarded for "information technology services", "accounting
12services", "insurance brokers", "architectural and engineering
13services", and "legal services" as those terms are defined in
14the Act.
15(Source: P.A. 98-1022, eff. 1-1-15.)
 
16    Section 99. Effective date. This Act takes effect upon
17becoming law.".