Rep. Delia C. Ramirez

Filed: 3/11/2019

 

 


 

 


 
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1
AMENDMENT TO HOUSE BILL 2298

2    AMENDMENT NO. ______. Amend House Bill 2298 by replacing
3everything after the enacting clause with the following:
 
4    "Section 5. The Business Enterprise for Minorities, Women,
5and Persons with Disabilities Act is amended by changing
6Section 2 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8    (Section scheduled to be repealed on June 30, 2020)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

 

 

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

 

 

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

 

 

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1            sickle cell anemia,
2            ulcerative colitis,
3            specific learning disabilities, or
4            end stage renal failure disease; and
5            (b) substantially limits one or more of the
6        person's major life activities.
7        Another disability or combination of disabilities may
8    also be considered as a severe disability for the purposes
9    of item (a) of this subdivision (2.1) if it is determined
10    by an evaluation of rehabilitation potential to cause a
11    comparable degree of substantial functional limitation
12    similar to the specific list of disabilities listed in item
13    (a) of this subdivision (2.1).
14        (2.5) "Minority-led not-for-profit" means an
15    organization that is tax-exempt under Sections 501(c)(3)
16    or 501(c)(4) of the Internal Revenue Code of 1986, and for
17    which:
18            (a) at least 51% of the organization's Board of
19        Directors are minority persons,
20            (b) the Board of Directors controls the
21        organization's daily and long-term operations,
22            (c) the organization is regularly and actively
23        engaged in business activity,
24            (d) the organization is not dependent upon or
25        influenced by another non-eligible person or
26        organization, and

 

 

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1            (e) the organization has not been established or
2        reorganized for the specific purpose of participating
3        in the Business Enterprise Program.
4        (3) "Minority-owned business" means a business which
5    is at least 51% owned by one or more minority persons, or
6    in the case of a corporation, at least 51% of the stock in
7    which is owned by one or more minority persons; and the
8    management and daily business operations of which are
9    controlled by one or more of the minority individuals who
10    own it.
11        (3.5) "Woman-led not-for-profit" means an organization
12    that is tax-exempt under Sections 501(c)(3) or 501(c)(4) of
13    the Internal Revenue Code of 1986, and for which:
14            (a) at least 51% of the organization's Board of
15        Directors are women,
16            (b) the Board of Directors controls the
17        organization's daily and long-term operations,
18            (c) the organization is regularly and actively
19        engaged in business activity,
20            (d) the organization is not dependent upon or
21        influenced by another non-eligible person or
22        organization, and
23            (e) the organization has not been established or
24        reorganized for the specific purpose of participating
25        in the Business Enterprise Program.
26        (4) "Women-owned business" means a business which is at

 

 

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1    least 51% owned by one or more women, or, in the case of a
2    corporation, at least 51% of the stock in which is owned by
3    one or more women; and the management and daily business
4    operations of which are controlled by one or more of the
5    women who own it.
6        (4.05) "Not-for-profit led by a person with a
7    disability" means an organization that is tax-exempt under
8    Sections 501(c)(3) or 501(c)(4) of the Internal Revenue
9    Code of 1986, and for which:
10            (a) at least 51% of the organization's Board of
11        Directors are persons with a disability,
12            (b) the Board of Directors controls the
13        organization's daily and long-term operations,
14            (c) the organization is regularly and actively
15        engaged in business activity,
16            (d) the organization is not dependent upon or
17        influenced by another non-eligible person or
18        organization, and
19            (e) the organization has not been established or
20        reorganized for the specific purpose of participating
21        in the Business Enterprise Program.
22        (4.1) "Business owned by a person with a disability"
23    means a business that is at least 51% owned by one or more
24    persons with a disability and the management and daily
25    business operations of which are controlled by one or more
26    of the persons with disabilities who own it. A

 

 

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1    not-for-profit agency for persons with disabilities that
2    is exempt from taxation under Section 501 of the Internal
3    Revenue Code of 1986 is also considered a "business owned
4    by a person with a disability".
5        (4.2) "Council" means the Business Enterprise Council
6    for Minorities, Women, and Persons with Disabilities
7    created under Section 5 of this Act.
8        (5) "State contracts" means all contracts entered into
9    by the State, any agency or department thereof, or any
10    public institution of higher education, including
11    community college districts, regardless of the source of
12    the funds with which the contracts are paid, which are not
13    subject to federal reimbursement. "State contracts" does
14    not include contracts awarded by a retirement system,
15    pension fund, or investment board subject to Section
16    1-109.1 of the Illinois Pension Code. This definition shall
17    control over any existing definition under this Act or
18    applicable administrative rule.
19        (5.5) "State construction contracts" means all State
20    contracts entered into by a State agency or public
21    institution of higher education for the repair,
22    remodeling, renovation or construction of a building or
23    structure, or for the construction or maintenance of a
24    highway defined in Article 2 of the Illinois Highway Code.
25        (6) "State agencies" shall mean all departments,
26    officers, boards, commissions, institutions and bodies

 

 

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

 

 

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1    entity is classified as a business owned by a minority,
2    woman, or person with a disability for whatever purpose, or
3    that a not-for-profit organization meets the defined
4    classifications in this Section of a "minority-led
5    not-for-profit", "woman-led not-for-profit", or
6    "not-for-profit led by a person with a disability". A
7    business owned and controlled by women shall be certified
8    as a "woman-owned business". A business owned and
9    controlled by women who are also minorities shall be
10    certified as both a "women-owned business" and a
11    "minority-owned business". A not-for-profit organization
12    that meets 2 or more of the classifications specified under
13    this paragraph (8) shall be certified as having all of the
14    certifications met.
15        (9) "Control" means the exclusive or ultimate and sole
16    control of the business or not-for-profit organization
17    including, but not limited to, capital investment and all
18    other financial matters, property, acquisitions, contract
19    negotiations, legal matters, officer-director-employee
20    selection and comprehensive hiring, operating
21    responsibilities, cost-control matters, income and
22    dividend matters, financial transactions and rights of
23    other shareholders or joint partners. Control shall be
24    real, substantial and continuing, not pro forma. Control
25    shall include the power to direct or cause the direction of
26    the management and policies of the business and to make the

 

 

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1    day-to-day as well as major decisions in matters of policy,
2    management and operations. Control shall be exemplified by
3    possessing the requisite knowledge and expertise to run the
4    particular business and control shall not include simple
5    majority or absentee ownership.
6        (10) "Business" means a business that has annual gross
7    sales of less than $75,000,000 as evidenced by the federal
8    income tax return of the business. A firm with gross sales
9    in excess of this cap may apply to the Council for
10    certification for a particular contract if the firm can
11    demonstrate that the contract would have significant
12    impact on businesses owned by minorities, women, or persons
13    with disabilities as suppliers or subcontractors or in
14    employment of minorities, women, or persons with
15    disabilities.
16        (11) "Utilization plan" means a form and additional
17    documentations included in all bids or proposals that
18    demonstrates a vendor's proposed utilization of vendors
19    certified by the Business Enterprise Program to meet the
20    targeted goal. The utilization plan shall demonstrate that
21    the Vendor has either: (1) met the entire contract goal or
22    (2) requested a full or partial waiver and made good faith
23    efforts towards meeting the goal.
24        (12) "Business Enterprise Program" means the Business
25    Enterprise Program of the Department of Central Management
26    Services.

 

 

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1    (B) When a business is owned at least 51% by any
2combination of minority persons, women, or persons with
3disabilities, even though none of the 3 classes alone holds at
4least a 51% interest, the ownership requirement for purposes of
5this Act is considered to be met. When a not-for-profit
6organization's Board of Directors consists of at least 51% of
7any combination of minority persons, women, or persons with
8disabilities even though none of the 3 classes alone holds at
9least 51% share, the Board membership requirement for purposes
10of this Act is considered to be met. The certification category
11for the business or not-for-profit organization is that of the
12class holding the largest ownership interest in the business,
13or the largest share of positions on the Board of Directors of
14a not-for-profit organization. If 2 or more classes have equal
15ownership interests, the certification category shall be
16determined by the business or not-for-profit organization.
17(Source: P.A. 99-143, eff. 7-27-15; 99-462, eff. 8-25-15;
1899-642, eff. 7-28-16; 100-391, eff. 8-25-17.)
 
19    Section 10. The Public Utilities Act is amended by changing
20Section 5-117 as follows:
 
21    (220 ILCS 5/5-117)
22    Sec. 5-117. Supplier diversity goals.
23    (a) The public policy of this State is to collaboratively
24work with companies and not-for-profit organizations that

 

 

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1serve Illinois residents to improve their supplier diversity in
2a non-antagonistic manner.
3    (a-5) For the purposes of this Section, "minority-led
4not-for-profit", "woman-led not-for-profit", and
5"not-for-profit led by a person with a disability" shall have
6the same meanings as provided under the Business Enterprise for
7Minorities, Women, and Persons with Disabilities Act.
8    (b) The Commission shall require all gas, electric, and
9water companies with at least 100,000 customers under its
10authority, as well as suppliers of wind energy, solar energy,
11hydroelectricity, nuclear energy, and any other supplier of
12energy within this State, to submit an annual report by April
1315, 2015 and every April 15 thereafter, in a searchable Adobe
14PDF format, on all procurement goals and actual spending for
15female-owned, minority-owned, veteran-owned, person with a
16disability-owned, and small business enterprises, as well as
17minority-led not-for-profit organizations, woman-led
18not-for-profit organizations, and organizations that are
19not-for-profit led by a person with a disability in the
20previous calendar year. These goals shall be expressed as a
21percentage of the total work performed by the entity submitting
22the report, and the actual spending for all female-owned,
23minority-owned, veteran-owned, person with a disability-owned,
24and small business enterprises, as well as minority-led
25not-for-profit organizations, woman-led not-for-profit
26organizations, and organizations that are not-for-profit led

 

 

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1by a person with a disability, shall also be expressed as a
2percentage of the total work performed by the entity submitting
3the report.
4    (c) Each participating company in its annual report shall
5include the following information:
6        (1) an explanation of the plan for the next year to
7    increase participation;
8        (2) an explanation of the plan to increase the goals;
9        (3) the areas of procurement each company shall be
10    actively seeking more participation in in the next year;
11        (4) an outline of the plan to alert and encourage
12    potential vendors in that area to seek business from the
13    company;
14        (5) an explanation of the challenges faced in finding
15    quality vendors and offer any suggestions for what the
16    Commission could do to be helpful to identify those
17    vendors;
18        (6) a list of the certifications the company
19    recognizes;
20        (7) the point of contact for any potential vendor who
21    wishes to do business with the company and explain the
22    process for a vendor to enroll with the company as a
23    minority-owned, women-owned, or veteran-owned, or person
24    with a disability-owned company, or as a minority-led
25    not-for-profit organization, woman-led not-for-profit
26    organization, or as an organization that is a

 

 

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1    not-for-profit led by a person with a disability; and
2        (8) any particular success stories to encourage other
3    companies to emulate best practices.
4    (d) Each annual report shall include as much State-specific
5data as possible. If the submitting entity does not submit
6State-specific data, then the company shall include any
7national data it does have and explain why it could not submit
8State-specific data and how it intends to do so in future
9reports, if possible.
10    (e) Each annual report shall include the rules,
11regulations, and definitions used for the procurement goals in
12the company's annual report.
13    (f) The Commission and all participating entities shall
14hold an annual workshop open to the public in 2015 and every
15year thereafter on the state of supplier diversity to
16collaboratively seek solutions to structural impediments to
17achieving stated goals, including testimony from each
18participating entity as well as subject matter experts and
19advocates. The Commission shall publish a database on its
20website of the point of contact for each participating entity
21for supplier diversity, along with a list of certifications
22each company recognizes from the information submitted in each
23annual report. The Commission shall publish each annual report
24on its website and shall maintain each annual report for at
25least 5 years.
26(Source: P.A. 98-1056, eff. 8-26-14; 99-906, eff. 6-1-17.)".