102ND GENERAL ASSEMBLY
State of Illinois
2021 and 2022
SB2478

 

Introduced 2/26/2021, by Sen. Ram Villivalam

 

SYNOPSIS AS INTRODUCED:
 
30 ILCS 575/2

    Amends the Business Enterprise for Minorities, Women, and Persons with Disabilities Act. Provides that certain economically disadvantaged persons, among other specified individuals, are considered minority persons under the Act. Provides additional requirements concerning qualification as a socially disadvantaged person. Defines "economically disadvantaged person". Provides requirements concerning qualification as an economically disadvantaged person. Makes other changes. Effective January 1, 2022.


LRB102 16422 RJF 21813 b

 

 

A BILL FOR

 

SB2478LRB102 16422 RJF 21813 b

1    AN ACT concerning finance.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Business Enterprise for Minorities, Women,
5and Persons with Disabilities Act is amended by changing
6Section 2 as follows:
 
7    (30 ILCS 575/2)
8    (Section scheduled to be repealed on June 30, 2024)
9    Sec. 2. Definitions.
10    (A) For the purpose of this Act, the following terms shall
11have the following definitions:
12        (1) "Minority person" shall mean a person who is a
13    citizen or lawful permanent resident of the United States
14    and who is any of the following:
15            (a) American Indian or Alaska Native (a person
16        having origins in any of the original peoples of North
17        and South America, including Central America, and who
18        maintains tribal affiliation or community attachment).
19            (b) Asian (a person having origins in any of the
20        original peoples of the Far East, Southeast Asia, or
21        the Indian subcontinent, including, but not limited
22        to, Cambodia, China, India, Japan, Korea, Malaysia,
23        Pakistan, the Philippine Islands, Thailand, and

 

 

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

 

 

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

 

 

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1        person's major life activities.
2        Another disability or combination of disabilities may
3    also be considered as a severe disability for the purposes
4    of item (a) of this subdivision (2.1) if it is determined
5    by an evaluation of rehabilitation potential to cause a
6    comparable degree of substantial functional limitation
7    similar to the specific list of disabilities listed in
8    item (a) of this subdivision (2.1).
9        (3) "Minority-owned business" means a business which
10    is at least 51% owned by one or more minority persons, or
11    in the case of a corporation, at least 51% of the stock in
12    which is owned by one or more minority persons; and the
13    management and daily business operations of which are
14    controlled by one or more of the minority individuals who
15    own it.
16        (4) "Women-owned business" means a business which is
17    at least 51% owned by one or more women, or, in the case of
18    a corporation, at least 51% of the stock in which is owned
19    by one or more women; and the management and daily
20    business operations of which are controlled by one or more
21    of the women who own it.
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
17    shall control over any existing definition under this Act
18    or applicable administrative rule.
19        "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
5    of 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 a business owned by a minority, woman, or person
2    with a disability for whatever purpose. A business owned
3    and controlled by women shall be certified as a
4    "woman-owned business". A business owned and controlled by
5    women who are also minorities shall be certified as both a
6    "women-owned business" and a "minority-owned business".
7        (9) "Control" means the exclusive or ultimate and sole
8    control of the business including, but not limited to,
9    capital investment and all other financial matters,
10    property, acquisitions, contract negotiations, legal
11    matters, officer-director-employee selection and
12    comprehensive hiring, operating responsibilities,
13    cost-control matters, income and dividend matters,
14    financial transactions and rights of other shareholders or
15    joint partners. Control shall be real, substantial and
16    continuing, not pro forma. Control shall include the power
17    to direct or cause the direction of the management and
18    policies of the business and to make the day-to-day as
19    well as major decisions in matters of policy, management
20    and operations. Control shall be exemplified by possessing
21    the requisite knowledge and expertise to run the
22    particular business and control shall not include simple
23    majority or absentee ownership.
24        (10) "Business" means a business that has annual gross
25    sales of less than $75,000,000 as evidenced by the federal
26    income tax return of the business. A firm with gross sales

 

 

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1    in excess of this cap may apply to the Council for
2    certification for a particular contract if the firm can
3    demonstrate that the contract would have significant
4    impact on businesses owned by minorities, women, or
5    persons with disabilities as suppliers or subcontractors
6    or in employment of minorities, women, or persons with
7    disabilities.
8        (11) "Utilization plan" means a form and additional
9    documentations included in all bids or proposals that
10    demonstrates a vendor's proposed utilization of vendors
11    certified by the Business Enterprise Program to meet the
12    targeted goal. The utilization plan shall demonstrate that
13    the Vendor has either: (1) met the entire contract goal or
14    (2) requested a full or partial waiver and made good faith
15    efforts towards meeting the goal.
16        (12) "Business Enterprise Program" means the Business
17    Enterprise Program of the Department of Central Management
18    Services.
19        (13) "Socially disadvantaged person" means a person
20    individually certified by the Council as having been
21    subjected to racial or ethnic prejudice or cultural bias
22    within American society because of his or her identity as
23    a member of a group and without regard to his or her
24    individual qualities.
25            (a) Social disadvantage must include the
26        following:

 

 

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1                (i) at least one objective distinguishing
2            feature that has contributed to social
3            disadvantage, such as race, ethnic origin, gender,
4            disability, long-term residence in an environment
5            isolated from the mainstream of American society,
6            or other similar causes not common to individuals
7            who are not socially disadvantaged;
8                (ii) personal experiences of substantial and
9            chronic social disadvantage in American society;
10            and
11                (iii) negative impact on entry into or
12            advancement in the business world because of the
13            disadvantage. The Business Enterprise Program will
14            consider any relevant evidence in assessing this
15            element, and in every case, as provided under
16            subparagraph (b), the Business Enterprise Program
17            will consider education, employment, and business
18            history, when applicable, to determine whether the
19            totality of circumstances shows disadvantage in
20            entering into or advancing in the business world.
21            (b) In determining whether a person qualifies as a
22        socially disadvantaged person, the Business Enterprise
23        Program will further consider the following:
24                (i) Education. Such factors as denial of equal
25            access to institutions of higher education and
26            vocational training, exclusion from social and

 

 

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1            professional association with students or
2            teachers, denial of educational honors rightfully
3            earned, and social patterns or pressures which
4            discouraged the individual from pursuing a
5            professional or business education.
6                (ii) Employment. Such factors as unequal
7            treatment in hiring, promotions and other aspects
8            of professional advancement, pay and fringe
9            benefits, and other terms and conditions of
10            employment; retaliatory or discriminatory behavior
11            by an employer or labor union; and social patterns
12            or pressures which have channeled the individual
13            into non-professional or non-business fields.
14                (iii) Business history. Such factors as
15            unequal access to credit or capital, acquisition
16            of credit or capital under commercially
17            unfavorable circumstances, unequal treatment in
18            opportunities for government contracts or other
19            work, unequal treatment by potential customers and
20            business associates, and exclusion from business
21            or professional organizations.
22        (14) "Economically disadvantaged person" means a
23    socially disadvantaged person whose ability to compete in
24    the free enterprise system has been impaired due to
25    diminished capital and credit opportunities as compared to
26    others in the same or similar line of business who are not

 

 

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1    socially disadvantaged.
2            (a) Each individual claiming economic disadvantage
3        must describe the conditions which are the basis for
4        the claim in a narrative statement, and must submit
5        personal financial information. If that individual is
6        married, he or she must also submit separate financial
7        information for his or her spouse, unless the
8        individual and the spouse are legally separated.
9            (b) In considering diminished capital and credit
10        opportunities, the Business Enterprise Program will
11        examine factors relating to the personal financial
12        condition of any individual claiming disadvantaged
13        status, including personal income for the preceding 2
14        years (including bonuses and the value of company
15        stock given in lieu of cash), personal net worth, and
16        the fair market value of all assets, whether
17        encumbered or not. The Business Enterprise Program
18        will also consider the financial condition of the
19        applicant compared to the financial profiles of small
20        businesses in the same primary industry
21        classification, or, if not available, in similar lines
22        of business, which are not owned and controlled by
23        socially and economically disadvantaged persons in
24        evaluating the individual's access to credit and
25        capital. The financial profiles that the Business
26        Enterprise Program will compare shall include total

 

 

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1        assets, net sales, pre-tax profit, sales or working
2        capital ratio, and net worth.
3            (c) Asset transfers within 2 years.
4                (i) Except as set forth in item (ii) of this
5            subparagraph (c), the Business Enterprise Program
6            will attribute to an individual claiming
7            disadvantaged status any assets which that
8            individual has transferred to an immediate family
9            member, or to a trust, a beneficiary of which is an
10            immediate family member, for less than fair market
11            value, within 2 years prior to a concern's
12            application for participation in the Business
13            Enterprise Program, unless the individual claiming
14            disadvantaged status can demonstrate that the
15            transfer is to or on behalf of an immediate family
16            member for that individual's education, medical
17            expenses, or some other form of essential support.
18                (ii) The Business Enterprise Program will not
19            attribute to an individual claiming disadvantaged
20            status any assets transferred by that individual
21            to an immediate family member that are consistent
22            with the customary recognition of special
23            occasions, such as birthdays, graduations,
24            anniversaries, and retirements.
25                (iii) In determining an individual's access to
26            capital and credit, the Business Enterprise

 

 

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1            Program may consider any assets that the
2            individual transferred within the 2-year period
3            described by item (i) of this subparagraph (c)
4            that are not considered in evaluating the
5            individual's assets and net worth, such as
6            transfers to charities.
7    (B) When a business is owned at least 51% by any
8combination of minority persons, women, or persons with
9disabilities, even though none of the 3 classes alone holds at
10least a 51% interest, the ownership requirement for purposes
11of this Act is considered to be met. The certification
12category for the business is that of the class holding the
13largest ownership interest in the business. If 2 or more
14classes have equal ownership interests, the certification
15category shall be determined by the business.
16(Source: P.A. 100-391, eff. 8-25-17; 101-601, eff. 1-1-20.)
 
17    Section 99. Effective date. This Act takes effect January
181, 2022.