Illinois General Assembly - Full Text of HB3958
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Full Text of HB3958  103rd General Assembly




State of Illinois
2023 and 2024


Introduced 2/17/2023, by Rep. William "Will" Davis


30 ILCS 575/2

    Amends the Business Enterprise for Minorities, Women, and Persons with Disabilities Actor Removes other State constitutional officers from the definition of "State agencies".

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HB3958LRB103 31069 DTM 57692 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8    (Section scheduled to be repealed on June 30, 2024)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        (2) "Woman" shall mean a person who is a citizen or
11    lawful permanent resident of the United States and who is
12    of the female gender.
13        (2.05) "Person with a disability" means a person who
14    is a citizen or lawful resident of the United States and is
15    a person qualifying as a person with a disability under
16    subdivision (2.1) of this subsection (A).
17        (2.1) "Person with a disability" means a person with a
18    severe physical or mental disability that:
19            (a) results from:
20            amputation,
21            arthritis,
22            autism,
23            blindness,
24            burn injury,
25            cancer,
26            cerebral palsy,



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1            Crohn's disease,
2            cystic fibrosis,
3            deafness,
4            head injury,
5            heart disease,
6            hemiplegia,
7            hemophilia,
8            respiratory or pulmonary dysfunction,
9            an intellectual disability,
10            mental illness,
11            multiple sclerosis,
12            muscular dystrophy,
13            musculoskeletal disorders,
14            neurological disorders, including stroke and
15        epilepsy,
16            paraplegia,
17            quadriplegia and other spinal cord conditions,
18            sickle cell anemia,
19            ulcerative colitis,
20            specific learning disabilities, or
21            end stage renal failure disease; and
22            (b) substantially limits one or more of the
23        person's major life activities.
24        Another disability or combination of disabilities may
25    also be considered as a severe disability for the purposes
26    of item (a) of this subdivision (2.1) if it is determined



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1    by an evaluation of rehabilitation potential to cause a
2    comparable degree of substantial functional limitation
3    similar to the specific list of disabilities listed in
4    item (a) of this subdivision (2.1).
5        (3) "Minority-owned business" means a business which
6    is at least 51% owned by one or more minority persons, or
7    in the case of a corporation, at least 51% of the stock in
8    which is owned by one or more minority persons; and the
9    management and daily business operations of which are
10    controlled by one or more of the minority individuals who
11    own it.
12        (4) "Women-owned business" means a business which is
13    at least 51% owned by one or more women, or, in the case of
14    a corporation, at least 51% of the stock in which is owned
15    by one or more women; and the management and daily
16    business operations of which are controlled by one or more
17    of the women who own it.
18        (4.1) "Business owned by a person with a disability"
19    means a business that is at least 51% owned by one or more
20    persons with a disability and the management and daily
21    business operations of which are controlled by one or more
22    of the persons with disabilities who own it. A
23    not-for-profit agency for persons with disabilities that
24    is exempt from taxation under Section 501 of the Internal
25    Revenue Code of 1986 is also considered a "business owned
26    by a person with a disability".



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1        (4.2) "Council" means the Business Enterprise Council
2    for Minorities, Women, and Persons with Disabilities
3    created under Section 5 of this Act.
4        (4.3) "Commission" means, unless the context clearly
5    indicates otherwise, the Commission on Equity and
6    Inclusion created under the Commission on Equity and
7    Inclusion 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, or municipalities
11    or 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 $150,000,000 as evidenced by the
26    federal income tax return of the business. A firm with



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1    gross sales in excess of this cap may apply to the Council
2    for certification for a particular contract if the firm
3    can 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. Firms with gross sales in excess of this cap
8    that are granted certification by the Council shall be
9    granted certification for the life of the contract,
10    including available renewals.
11        (11) "Utilization plan" means a form and additional
12    documentations included in all bids or proposals that
13    demonstrates a vendor's proposed utilization of vendors
14    certified by the Business Enterprise Program to meet the
15    targeted goal. The utilization plan shall demonstrate that
16    the Vendor has either: (1) met the entire contract goal or
17    (2) requested a full or partial waiver and made good faith
18    efforts towards meeting the goal.
19        (12) "Business Enterprise Program" means the Business
20    Enterprise Program of the Commission on Equity and
21    Inclusion.
22    (B) When a business is owned at least 51% by any
23combination of minority persons, women, or persons with
24disabilities, even though none of the 3 classes alone holds at
25least a 51% interest, the ownership requirement for purposes
26of this Act is considered to be met. The certification



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1category for the business is that of the class holding the
2largest ownership interest in the business. If 2 or more
3classes have equal ownership interests, the certification
4category shall be determined by the business.
5(Source: P.A. 101-601, eff. 1-1-20; 101-657, eff. 1-1-22;
6102-29, eff. 6-25-21; 102-1119, eff. 1-23-23.)