HJ0106 97TH GENERAL ASSEMBLY

HJ0106 LRB097 23541 GRL 72545 r

HOUSE JOINT RESOLUTION

WHEREAS, The State of Illinois has deemed it important to undo historical prejudices by creating special classifications for businesses that are majority owned and operated by minorities (MBE), women (WBE), or veterans (VOB and SDVOB); and

WHEREAS, The State of Illinois' procurement policies commonly request that goals be met by MBE, WBE, and VOB/SDVOB businesses; and

WHEREAS, The State of Illinois has defined a special classification company as a company that is at least 51% owned and fully controlled by a special classification individual or a group of special classification individuals; and

WHEREAS, The State of Illinois Central Management Services' Business Enterprise Council has been charged with the task of determining whether a company meets the criteria for a special classification; and

WHEREAS, There have been well documented cases of fraudulent MBE, WBE, SDVOB, and VOD companies being created; it is the responsibility of the Business Enterprise Council to vigilantly oppose these applications for special classification; and

WHEREAS, Small businesses in the present day marketplace will often sell equity in their company to investors, such as angel investors and venture capitalists, in order to raise capital; and

WHEREAS, It is acknowledged that equity investors in companies often will have no say in the operation, control, or direction of the company; therefore, be it

RESOLVED, BY THE HOUSE OF REPRESENTATIVES OF THE NINETY-SEVENTH GENERAL ASSEMBLY OF THE STATE OF ILLINOIS, THE SENATE CONCURRING HEREIN, that we request that the Central Management Services Business Enterprise Council includes the equity ownership of silent investors of the same special classification in the calculations of the majority ownership of a company; and be it further

RESOLVED, That we request that the Central Management Services Business Enterprise Council include silent investor equity when calculating control of a company when the silent investors have given controlling authority to one or more persons of that classification; and be it further

RESOLVED, That a suitable copy of this resolution be delivered to the Central Management Services Business Enterprise Council.