Full Text of SB2478 102nd General Assembly
SB2478 102ND GENERAL ASSEMBLY |
| | 102ND GENERAL ASSEMBLY
State of Illinois
2021 and 2022 SB2478 Introduced 2/26/2021, by Sen. Ram Villivalam SYNOPSIS AS INTRODUCED: |
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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.
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| | A BILL FOR |
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| 1 | | AN ACT concerning finance.
| 2 | | Be it enacted by the People of the State of Illinois,
| 3 | | represented in the General Assembly:
| 4 | | Section 5. The Business Enterprise for Minorities, Women, | 5 | | and Persons with
Disabilities Act is amended by changing | 6 | | Section 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| 8 | | (Section scheduled to be repealed on June 30, 2024) | 9 | | Sec. 2.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 | 11 | | have 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 | 8 | | combination of
minority persons, women, or persons with | 9 | | disabilities,
even though none of the 3 classes alone holds at | 10 | | least a 51% interest, the
ownership
requirement for purposes | 11 | | of this Act is considered to be met. The
certification | 12 | | category for the business is that of the class holding the
| 13 | | largest ownership
interest in the business. If 2 or more | 14 | | classes have equal ownership interests,
the certification | 15 | | category 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 | 18 | | 1, 2022.
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