Illinois General Assembly - Full Text of SB1730
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Full Text of SB1730  102nd General Assembly

SB1730enr 102ND GENERAL ASSEMBLY

  
  
  

 


 
SB1730 EnrolledLRB102 14302 JLS 19654 b

1    AN ACT concerning business.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Business Corporation Act of 1983 is amended
5by changing Section 8.12 as follows:
 
6    (805 ILCS 5/8.12)
7    Sec. 8.12. Female, and minority, and LGBTQ directors.
8    (a) Findings and purpose. The General Assembly finds that
9women, and minorities, and LGBTQ people are still largely
10underrepresented nationally in positions of corporate
11authority, such as serving as a director on a corporation's
12board of directors. This low representation could be
13contributing to the disparity seen in wages made by females
14and minorities versus their white male counterparts. Increased
15representation of these individuals as directors on boards of
16directors for corporations may boost the Illinois economy,
17improve opportunities for women, and minorities, and LGBTQ
18people in the workplace, and foster an environment in Illinois
19where the business community is representative of our
20residents. Therefore, it is the intent of the General Assembly
21to gather more data and study this issue within the State so
22that effective policy changes may be implemented to eliminate
23this disparity.

 

 

SB1730 Enrolled- 2 -LRB102 14302 JLS 19654 b

1    (b) As used in this Section:
2    "Annual report" means the report submitted annually to the
3Secretary of State pursuant to this Act.
4    "Female" means a person who is a citizen or lawful
5permanent resident of the United States and who
6self-identifies as a woman, without regard to the individual's
7designated sex at birth.
8    "Minority person" means a person who is a citizen or
9lawful permanent resident of the United States and who is any
10of the following races or ethnicities:
11        (1) American Indian or Alaska Native (a person having
12    origins in any of the original peoples of North and South
13    America, including Central America, and who maintains
14    tribal affiliation or community attachment).
15        (2) Asian (a person having origins in any of the
16    original peoples of the Far East, Southeast Asia, or the
17    Indian subcontinent, including, but not limited to,
18    Cambodia, China, India, Japan, Korea, Malaysia, Pakistan,
19    the Philippine Islands, Thailand, and Vietnam).
20        (3) Black or African American (a person having origins
21    in any of the black racial groups of Africa). Terms such as
22    "Haitian" or "Negro" can be used in addition to "Black" or
23    "African American".
24        (4) Hispanic or Latino (a person of Cuban, Mexican,
25    Puerto Rican, South or Central American, or other Spanish
26    culture or origin, regardless of race).

 

 

SB1730 Enrolled- 3 -LRB102 14302 JLS 19654 b

1        (5) Native Hawaiian or Other Pacific Islander (a
2    person having origins in any of the original peoples of
3    Hawaii, Guam, Samoa, or other Pacific Islands).
4        (6) "Publicly held domestic or foreign corporation"
5    means a corporation with outstanding shares listed on a
6    major United States stock exchange.
7    (c) Reporting to the Secretary of State. As soon as
8practical after the effective date of this amendatory Act of
9the 101st General Assembly, but no later than January 1, 2021,
10the following information shall be provided in a corporation's
11annual report submitted to the Secretary of State under this
12Act and made available by the Secretary of State to the public
13online as it is received:
14        (1) Whether the corporation is a publicly held
15    domestic or foreign corporation with its principal
16    executive office located in Illinois.
17        (2) Where the corporation is a publicly held domestic
18    or foreign corporation with its principal executive office
19    located in Illinois, data on specific qualifications,
20    skills, and experience that the corporation considers for
21    its board of directors, nominees for the board of
22    directors, and executive officers.
23        (3) Where the corporation is a publicly held domestic
24    or foreign corporation with its principal executive office
25    located in Illinois, the self-identified gender of each
26    member of its board of directors.

 

 

SB1730 Enrolled- 4 -LRB102 14302 JLS 19654 b

1        (4) Where the corporation is a publicly held domestic
2    or foreign corporation with its principal executive office
3    located in Illinois, whether each member of its board of
4    directors self-identifies as a minority person and, if so,
5    which race or ethnicity to which the member belongs.
6        (5) Where the corporation is a publicly held domestic
7    or foreign corporation with its principal executive office
8    located in Illinois, the self-identified sexual
9    orientation of each member of its board of directors.
10        (6) Where the corporation is a publicly held domestic
11    or foreign corporation with its principal executive office
12    located in Illinois, the self-identified gender identity
13    of each member of its board of directors.
14        7 (5) Where the corporation is a publicly held
15    domestic or foreign corporation with its principal
16    executive office located in Illinois, a description of the
17    corporation's process for identifying and evaluating
18    nominees for the board of directors, including whether
19    and, if so, how demographic diversity is considered.
20        8 (6) Where the corporation is a publicly held
21    domestic or foreign corporation with its principal
22    executive office located in Illinois, a description of the
23    corporation's process for identifying and appointing
24    executive officers, including whether and, if so, how
25    demographic diversity is considered.
26        9 (7) Where the corporation is a publicly held

 

 

SB1730 Enrolled- 5 -LRB102 14302 JLS 19654 b

1    domestic or foreign corporation with its principal
2    executive office located in Illinois, a description of the
3    corporation's policies and practices for promoting
4    diversity, equity, and inclusion among its board of
5    directors and executive officers.
6    Information reported under this subsection shall be
7updated in each annual report filed with the Secretary of
8State thereafter.
9    (d) Beginning no later than March 1, 2021, and every March
101 thereafter, the University of Illinois Systems shall review
11the information reported and published under subsection (c)
12and shall publish on its website a report that provides
13aggregate data on the demographic characteristics of the
14boards of directors and executive officers of corporations
15filing an annual report for the preceding year along with an
16individualized rating for each corporation. The report shall
17also identify strategies for promoting diversity and inclusion
18among boards of directors and corporate executive officers.
19    (e) The University of Illinois System shall establish a
20rating system assessing the representation of women, and
21minorities, and LGBTQ people on corporate boards of directors
22of those corporations that are publicly held domestic or
23foreign corporations with their principal executive office
24located in Illinois based on the information gathered under
25this Section. The rating system shall consider, among other
26things: compliance with the demographic reporting obligations

 

 

SB1730 Enrolled- 6 -LRB102 14302 JLS 19654 b

1in subsection (c); the corporation's policies and practices
2for encouraging diversity in recruitment, board membership,
3and executive appointments; and the demographic diversity of
4board seats and executive positions.
5(Source: P.A. 101-589, eff. 8-27-19.)
 
6    Section 99. Effective date. This Act takes effect January
71, 2022.