101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020
SB1479

 

Introduced 2/13/2019, by Sen. Ann Gillespie

 

SYNOPSIS AS INTRODUCED:
 
30 ILCS 500/45-37 new
30 ILCS 575/2
220 ILCS 5/5-117

    Amends the Illinois Procurement Code. Creates a procurement preference for not-for-profit organizations owned by women, minorities, and persons with a disability. Amends the Business Enterprise for Minorities, Women, and Persons with Disabilities Act. Allows for the certification of and the preference in awarding of State contracts to not-for-profit organizations owned by women, minorities, and persons with a disability under the Act. Amends the Public Utilities Act. Provides that specified supplier diversity goal requirements under the Act apply to not-for-profit female-owned (women-owned), minority-owned, veteran-owned, and person with a disability-owned companies or businesses.


LRB101 09440 RJF 54538 b

FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

SB1479LRB101 09440 RJF 54538 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 Illinois Procurement Code is amended by
5adding Section 45-37 as follows:
 
6    (30 ILCS 500/45-37 new)
7    Sec. 45-37. Not-for-profit organizations owned by women,
8minorities, and persons with a disability.
9    (a) Qualification. Supplies and services may be procured
10from any qualified not-for-profit organization owned by women,
11minorities, or persons with a disability that:
12        (1) complies with applicable Illinois laws governing
13    private not-for-profit organizations and is recognized by
14    the United States Internal Revenue Service as a tax-exempt
15    entity described in Section 501(c)(3) of the Internal
16    Revenue Code of 1986; and
17        (2) is certified as a "women-owned business", a
18    "minority-owned business", or a "business owned by a person
19    with a disability" as defined under Section 2 of the
20    Business Enterprise for Minorities, Women, and Persons
21    with Disabilities Act.
22    (b) Participation. To participate, the not-for-profit
23organization must have indicated an interest in providing the

 

 

SB1479- 2 -LRB101 09440 RJF 54538 b

1supplies and services, must meet the specifications and needs
2of the using agency, and must set a fair and reasonable price.
3    (c) Conditions for Use. Each chief procurement officer
4shall, in consultation with the Department of Central
5Management Services, determine which articles, materials,
6services, food stuffs, and supplies that are produced,
7manufactured, or provided by a qualified not-for-profit
8organization under this Section shall be given preference by
9purchasing agencies procuring those items.
10    (d) Subcontracts. Subcontracts shall be permitted for
11agreements authorized under this Section. For the purposes of
12this subsection (d), "subcontract" means any acquisition from
13another source of supplies, not including raw materials, or
14services required by a qualified not-for-profit organization
15to provide the supplies or services that are the subject of the
16contract between the State and the qualified not-for-profit
17organization.
18    The Department of Central Management Services shall
19develop guidelines to be followed by qualified not-for-profit
20organizations under this Section when seeking and establishing
21subcontracts in order to fulfill State contract requirements.
22These guidelines shall include the following:
23        (A) The Department must approve all subcontracts and
24    substantive amendments to subcontracts prior to execution
25    or amendment of the subcontract.
26        (B) A qualified not-for-profit organization shall not

 

 

SB1479- 3 -LRB101 09440 RJF 54538 b

1    enter into a subcontract, or any combination of
2    subcontracts, to fulfill an entire requirement, contract,
3    or order without the written approval of the Department.
4        (C) A qualified not-for-profit organization shall make
5    reasonable efforts to utilize subcontracts with other
6    not-for-profit organizations owned by women, minorities,
7    or persons with a disability.
8        (D) For any subcontract not currently performed by a
9    qualified not-for-profit organization, the primary
10    qualified not-for-profit organization must provide to the
11    Department the following: (i) a written explanation as to
12    why the subcontract is not performed by a qualified
13    not-for-profit organization; and (ii) a written plan to
14    transfer the subcontract to a qualified not-for-profit
15    agency, as reasonable.
16    (e) Annual report. Beginning January 1, 2021, and for each
17year thereafter, the Department of Central Management Services
18shall submit a report to the Governor and the General Assembly
19concerning qualified not-for-profit organizations
20participating under this Section, and the report shall include,
21but not be limited to: (i) the services provided by
22participating qualified not-for-profit organizations,
23including the cost for such services; (ii) the State agencies
24to which such services were provided; (iii) whether a
25subcontractor was used in providing the services; and (iv) any
26other information the Department may deem necessary.

 

 

SB1479- 4 -LRB101 09440 RJF 54538 b

1    (f) Rules. The Department of Central Management Services
2shall adopt rules to implement and administer the procurement
3preference provided under this Section.
 
4    Section 10. 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
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
24        Vietnam).

 

 

SB1479- 5 -LRB101 09440 RJF 54538 b

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

 

 

SB1479- 6 -LRB101 09440 RJF 54538 b

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

 

 

SB1479- 7 -LRB101 09440 RJF 54538 b

1    of item (a) of this subdivision (2.1) if it is determined
2    by an evaluation of rehabilitation potential to cause a
3    comparable degree of substantial functional limitation
4    similar to the specific list of disabilities listed in item
5    (a) of this subdivision (2.1).
6        (3) "Minority-owned business" means a business which
7    is at least 51% owned by one or more minority persons, or
8    in the case of a corporation, at least 51% of the stock in
9    which is owned by one or more minority persons; and the
10    management and daily business operations of which are
11    controlled by one or more of the minority individuals who
12    own it. A not-for-profit organization whose Board of
13    Directors consists of at least 51% minority persons or
14    whose Executive Director is a minority person and that is
15    exempt from taxation under Section 501 of the Internal
16    Revenue Code of 1986 is also considered a "minority-owned
17    business".
18        (4) "Women-owned business" means a business which is at
19    least 51% owned by one or more women, or, in the case of a
20    corporation, at least 51% of the stock in which is owned by
21    one or more women; and the management and daily business
22    operations of which are controlled by one or more of the
23    women who own it. A not-for-profit organization whose Board
24    of Directors consists of at least 51% women or whose
25    Executive Director is a woman and that is exempt from
26    taxation under Section 501 of the Internal Revenue Code of

 

 

SB1479- 8 -LRB101 09440 RJF 54538 b

1    1986 is also considered a "women-owned business".
2        (4.1) "Business owned by a person with a disability"
3    means a business that is at least 51% owned by one or more
4    persons with a disability and the management and daily
5    business operations of which are controlled by one or more
6    of the persons with disabilities who own it. A
7    not-for-profit agency for persons with disabilities or a
8    not-for-profit organization whose Board of Directors
9    consists of at least 51% persons with a disability or whose
10    Executive Director is a person with a disability and that
11    is exempt from taxation under Section 501 of the Internal
12    Revenue Code of 1986 is also considered a "business owned
13    by a person with a disability".
14        (4.2) "Council" means the Business Enterprise Council
15    for Minorities, Women, and Persons with Disabilities
16    created under Section 5 of this Act.
17        (5) "State contracts" means all contracts entered into
18    by the State, any agency or department thereof, or any
19    public institution of higher education, including
20    community college districts, regardless of the source of
21    the funds with which the contracts are paid, which are not
22    subject to federal reimbursement. "State contracts" does
23    not include contracts awarded by a retirement system,
24    pension fund, or investment board subject to Section
25    1-109.1 of the Illinois Pension Code. This definition shall
26    control over any existing definition under this Act or

 

 

SB1479- 9 -LRB101 09440 RJF 54538 b

1    applicable administrative rule.
2        "State construction contracts" means all State
3    contracts entered into by a State agency or public
4    institution of higher education for the repair,
5    remodeling, renovation or construction of a building or
6    structure, or for the construction or maintenance of a
7    highway defined in Article 2 of the 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

 

 

SB1479- 10 -LRB101 09440 RJF 54538 b

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.
6        (8) "Certification" means a determination made by the
7    Council or by one delegated authority from the Council to
8    make certifications, or by a State agency with statutory
9    authority to make such a certification, that a business
10    entity is a business owned by a minority, woman, or person
11    with a disability for whatever purpose. A business owned
12    and controlled by women shall be certified as a
13    "woman-owned business". A business owned and controlled by
14    women who are also minorities shall be certified as both a
15    "women-owned business" and a "minority-owned business".
16        (9) "Control" means the exclusive or ultimate and sole
17    control of the business including, but not limited to,
18    capital investment and all other financial matters,
19    property, acquisitions, contract negotiations, legal
20    matters, officer-director-employee selection and
21    comprehensive hiring, operating responsibilities,
22    cost-control matters, income and dividend matters,
23    financial transactions and rights of other shareholders or
24    joint partners. Control shall be real, substantial and
25    continuing, not pro forma. Control shall include the power
26    to direct or cause the direction of the management and

 

 

SB1479- 11 -LRB101 09440 RJF 54538 b

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

 

 

SB1479- 12 -LRB101 09440 RJF 54538 b

1    Services.
2    (B) When a business is owned at least 51% by any
3combination of minority persons, women, or persons with
4disabilities, even though none of the 3 classes alone holds at
5least a 51% interest, the ownership requirement for purposes of
6this Act is considered to be met. When a not-for-profit
7organization's Board of Directors consists of at least 51% of
8any combination of minority persons, women, or persons with
9disabilities even though none of the 3 classes alone holds at
10least 51% share, the Board membership requirement for purposes
11of this Act is considered to be met. The certification category
12for the business or not-for-profit organization is that of the
13class holding the largest ownership interest in the business.
14If 2 or more classes have equal ownership interests, the
15certification category shall be determined by the business or
16not-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 15. 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 that serve Illinois residents to improve

 

 

SB1479- 13 -LRB101 09440 RJF 54538 b

1their supplier diversity in a non-antagonistic manner.
2    (b) The Commission shall require all gas, electric, and
3water companies with at least 100,000 customers under its
4authority, as well as suppliers of wind energy, solar energy,
5hydroelectricity, nuclear energy, and any other supplier of
6energy within this State, to submit an annual report by April
715, 2015 and every April 15 thereafter, in a searchable Adobe
8PDF format, on all procurement goals and actual spending for
9female-owned, minority-owned, veteran-owned, person with a
10disability-owned, and small business enterprises in the
11previous calendar year. These goals shall be expressed as a
12percentage of the total work performed by the entity submitting
13the report, and the actual spending for all female-owned,
14minority-owned, veteran-owned, person with a disability-owned,
15and small business enterprises shall also be expressed as a
16percentage of the total work performed by the entity submitting
17the report.
18    (c) Each participating company in its annual report shall
19include the following information:
20        (1) an explanation of the plan for the next year to
21    increase participation;
22        (2) an explanation of the plan to increase the goals;
23        (3) the areas of procurement each company shall be
24    actively seeking more participation in in the next year;
25        (4) an outline of the plan to alert and encourage
26    potential vendors in that area to seek business from the

 

 

SB1479- 14 -LRB101 09440 RJF 54538 b

1    company;
2        (5) an explanation of the challenges faced in finding
3    quality vendors and offer any suggestions for what the
4    Commission could do to be helpful to identify those
5    vendors;
6        (6) a list of the certifications the company
7    recognizes;
8        (7) the point of contact for any potential vendor who
9    wishes to do business with the company and explain the
10    process for a vendor to enroll with the company as a
11    minority-owned, women-owned, or veteran-owned, or person
12    with a disability-owned company; and
13        (8) any particular success stories to encourage other
14    companies to emulate best practices.
15    (d) Each annual report shall include as much State-specific
16data as possible. If the submitting entity does not submit
17State-specific data, then the company shall include any
18national data it does have and explain why it could not submit
19State-specific data and how it intends to do so in future
20reports, if possible.
21    (e) Each annual report shall include the rules,
22regulations, and definitions used for the procurement goals in
23the company's annual report.
24    (f) The Commission and all participating entities shall
25hold an annual workshop open to the public in 2015 and every
26year thereafter on the state of supplier diversity to

 

 

SB1479- 15 -LRB101 09440 RJF 54538 b

1collaboratively seek solutions to structural impediments to
2achieving stated goals, including testimony from each
3participating entity as well as subject matter experts and
4advocates. The Commission shall publish a database on its
5website of the point of contact for each participating entity
6for supplier diversity, along with a list of certifications
7each company recognizes from the information submitted in each
8annual report. The Commission shall publish each annual report
9on its website and shall maintain each annual report for at
10least 5 years.
11    (g) For the purposes of this Section, female-owned
12(women-owned), minority-owned, veteran-owned, and person with
13a disability-owned companies or businesses include
14not-for-profit organizations that are exempt from taxation
15under Section 501(c)(3) of the Internal Revenue Code of 1986,
16in which at least 50% of the managing board are women,
17minorities, veterans, or persons with a disability, or in which
18the executive director is a woman, minority, veteran, or person
19with a disability.
20(Source: P.A. 98-1056, eff. 8-26-14; 99-906, eff. 6-1-17.)