HB0445ham001 97TH GENERAL ASSEMBLY

Rep. Mary E. Flowers

Filed: 4/1/2011

09700HB0445ham001 LRB097 03911 RLJ 53605 a

AMENDMENT TO HOUSE BILL 445

AMENDMENT NO. ______. Amend House Bill 445 by replacing everything after the enacting clause with the following:

"Section 1. Short title. This Act may be cited as the Department of Minority and Women Inclusion Act.

Section 5. Purpose. The purpose of this Act is to provide for diversity in the employment, management, and business activities of State Executive Branch agencies and to increase the level of participation by minorities and women in such employment, management, and business activities.

Section 10. Definitions. In this Act:

"Department" means the Department of Minority and Women Inclusion.

"Director" means the Director of Minority and Women Inclusion.

"Minority person" means a person who is a citizen or lawful permanent resident of the United States and who is:

(1) African American (a person having origins in any of the black racial groups in Africa);

(2) Hispanic (a person of Spanish or Portuguese culture with origins in Mexico, South or Central America, or the Caribbean Islands, regardless of race);

(3) Asian American (a person having origins in any of the original peoples of the Far East, Southeast Asia, the Indian Subcontinent, or the Pacific Islands); or

(4) Native American or Alaskan Native (a person having origins in any of the original peoples of North America).

"Minority-owned business" means a business concern (i) which is at least 51% owned by one or more minority persons, or, in the case of a corporation, at least 51% of the stock in which is owned by one or more minority persons, and (ii) the management and daily business operations of which are controlled by one or more of the minority individuals who own it.

"State Executive Branch agency" means each State agency, department, board, and commission directly responsible to the Governor. The term does not include any State university.

"Woman" means a person who is a citizen or lawful permanent resident of the United States and who is of the female gender.

"Women-owned business" means a business concern (i) which is at least 51% owned by one or more women, or, in the case of a corporation, at least 51% of the stock in which is owned by one or more women, and (ii) the management and daily business operations of which are controlled by one or more of the women who own it.

Section 15. Creation of Department; Director.

(a) The Department of Minority and Women Inclusion is created as a department of State government. The Department shall be responsible for all matters of the State Executive Branch agencies relating to diversity in management, employment, and business activities. The Department shall monitor the activities of the Business Enterprise Council for Minorities, Females, and Persons with Disabilities created under the Business Enterprise for Minorities, Females, and Persons with Disabilities Act.

(b) The Governor shall appoint the Director as the head of the Department.

Section 20. Director's duties.

(a) The Director shall develop standards for the following:

(1) Equal employment opportunity and the racial, ethnic, and gender diversity of the workforce and senior management of each State Executive Branch agency.

(2) Increased participation of minority-owned and women-owned businesses in the programs and contracts of each State Executive Branch agency, including standards for coordinating technical assistance to such businesses.

(3) Assessing the diversity policies and practices of entities regulated by each State Executive Branch agency.

(b) The Director shall develop and implement standards and procedures to ensure, to the maximum extent possible, the fair inclusion and utilization of minority persons, women, and minority-owned and women-owned businesses in all business and activities of each State Executive Branch agency at all levels, including in procurement, insurance, and all types of contracts.

(c) The Director shall ensure that each State Executive Branch agency establishes procedures for review and evaluation of contract proposals and for hiring service providers that include, to the extent consistent with applicable law, a component that gives consideration to the diversity of the applicant. The procedures shall include a written statement, in the form and with the content prescribed by the Director, that a contractor shall ensure, to the maximum extent possible, the fair inclusion of women and minority persons in the workforce of the contractor and, as applicable, subcontractors.

(d) The standards and procedures developed and implemented under this Section shall include a procedure for the Director to determine whether a State Executive Branch agency contractor or subcontractor has failed to make a good faith effort to include minority persons and women in its workforce. If the Director determines that a State Executive Branch agency contractor or subcontractor has failed to make a good faith effort to include minority persons and women in its workforce, the Director shall recommend to the head of the State Executive Branch agency that the contract be terminated. Upon receiving such a recommendation from the Director, the head of the affected agency may terminate the contract or take other appropriate action.

Section 25. Diversity in agency workforce. The Director shall ensure that each State Executive Branch agency takes affirmative steps to seek diversity in the workforce of the agency at all levels of the agency in a manner consistent with applicable law. These steps shall include the following:

(1) Recruiting at historically black colleges and universities, Hispanic-serving institutions, women's colleges, and colleges that typically serve majority minority populations.

(2) Sponsoring and recruiting at job fairs in urban communities.

(3) Placing employment advertisements in newspapers and magazines oriented toward minorities and women.

(4) Partnering with organizations that are focused on developing opportunities for minorities and women to place talented young minority persons and women in industry internships, summer employment, and full-time positions.

(5) When feasible, partnering with inner-city high schools, girls' high schools, and high schools with majority minority populations to establish or enhance economic literacy programs and provide mentoring.

(6) Producing any other mass media communications that the Director deems necessary.

Section 30. Application of Act. This Act applies to all contracts of a State Executive Branch agency for services of any kind and for all business and activities of the agency, including contracts for implementing the agency's programs. The requirements of this Act are in addition to the requirements of the Business Enterprise for Minorities, Females, and Persons with Disabilities Act and all other applicable laws.

Section 35. Reports. Each year, on or before March 1, the Director shall report the following to the Governor and the General Assembly for the preceding calendar year:

(1) A statement of the total amounts paid by each State Executive Branch agency to contractors since the previous report.

(2) The percentage of the amounts described in paragraph (1) that were paid to minority-owned and women-owned businesses.

(3) The successes achieved and the challenges faced by each State Executive Branch agency in operating minority and women outreach programs.

(4) The challenges each State Executive Branch agency may face in hiring qualified minority and women employees and contracting with qualified minority-owned and women-owned businesses.

(5) Any other information, findings, conclusions, and recommendations for legislative or agency action, as the Director deems appropriate.

Section 40. Fee; Minority and Women Inclusion Fund. A minority-owned or women-owned business, as certified by the Business Enterprise Council for Minorities, Females, and Persons with Disabilities under the Business Enterprise for Minorities, Females, and Persons with Disabilities Act, awarded a contract under the Illinois Procurement Code on or after the effective date of this amendatory Act of the 97th General Assembly shall pay a fee of $15. The fee shall be deducted by the Comptroller from the first check issued to the business under the contract and deposited into the Minority and Women Inclusion Fund, which is created as a special fund in the State treasury. Moneys in the fund shall be used by the Department, subject to appropriation, to cover expenses related to the administration and implementation of this Act.

Section 90. The Civil Administrative Code of Illinois is amended by changing Sections 5-15 and 5-20 and by adding Sections 5-195 and 5-425 as follows:

(20 ILCS 5/5-15) (was 20 ILCS 5/3)

Sec. 5-15. Departments of State government. The Departments of State government are created as follows:

The Department on Aging.

The Department of Agriculture.

The Department of Central Management Services.

The Department of Children and Family Services.

The Department of Commerce and Economic Opportunity.

The Department of Corrections.

The Department of Employment Security.

The Illinois Emergency Management Agency.

The Department of Financial and Professional Regulation.

The Department of Healthcare and Family Services.

The Department of Human Rights.

The Department of Human Services.

The Illinois Power Agency.

The Department of Juvenile Justice.

The Department of Labor.

The Department of the Lottery.

The Department of Minority and Women Inclusion.

The Department of Natural Resources.

The Department of Public Health.

The Department of Revenue.

The Department of State Police.

The Department of Transportation.

The Department of Veterans' Affairs.

(Source: P.A. 95-331, eff. 8-21-07; 95-481, eff. 8-28-07; 95-777, eff. 8-4-08; 96-328, eff. 8-11-09.)

(20 ILCS 5/5-20) (was 20 ILCS 5/4)

Sec. 5-20. Heads of departments. Each department shall have an officer as its head who shall be known as director or secretary and who shall, subject to the provisions of the Civil Administrative Code of Illinois, execute the powers and discharge the duties vested by law in his or her respective department.

The following officers are hereby created:

Director of Aging, for the Department on Aging.

Director of Agriculture, for the Department of Agriculture.

Director of Central Management Services, for the Department of Central Management Services.

Director of Children and Family Services, for the Department of Children and Family Services.

Director of Commerce and Economic Opportunity, for the Department of Commerce and Economic Opportunity.

Director of Corrections, for the Department of Corrections.

Director of the Illinois Emergency Management Agency, for the Illinois Emergency Management Agency.

Director of Employment Security, for the Department of Employment Security.

Secretary of Financial and Professional Regulation, for the Department of Financial and Professional Regulation.

Director of Healthcare and Family Services, for the Department of Healthcare and Family Services.

Director of Human Rights, for the Department of Human Rights.

Secretary of Human Services, for the Department of Human Services.

Director of the Illinois Power Agency, for the Illinois Power Agency.

Director of Juvenile Justice, for the Department of Juvenile Justice.

Director of Labor, for the Department of Labor.

Director of the Lottery, for the Department of the Lottery.

Director of Minority and Women Inclusion, for the Department of Minority and Women Inclusion.

Director of Natural Resources, for the Department of Natural Resources.

Director of Public Health, for the Department of Public Health.

Director of Revenue, for the Department of Revenue.

Director of State Police, for the Department of State Police.

Secretary of Transportation, for the Department of Transportation.

Director of Veterans' Affairs, for the Department of Veterans' Affairs.

(Source: P.A. 95-331, eff. 8-21-07; 95-481, eff. 8-28-07; 95-777, eff. 8-4-08; 96-328, eff. 8-11-09.)

(20 ILCS 5/5-195 new)

Sec. 5-195. In the Department of Minority and Women Inclusion. Assistant Director of Minority and Women Inclusion.

(20 ILCS 5/5-425 new)

Sec. 5-425. In the Department of Minority and Women Inclusion. The Director of Minority and Women Inclusion shall receive an annual salary as set by the Governor from time to time or as set by the Compensation Review Board, whichever is greater.

Section 91. The State Finance Act is amended by adding Section 5.786 as follows:

(30 ILCS 105/5.786 new)

Sec. 5.786. The Minority and Women Inclusion Fund.

Section 92. The Business Enterprise for Minorities, Females, and Persons with Disabilities Act is amended by changing Section 5 as follows:

(30 ILCS 575/5) (from Ch. 127, par. 132.605)

(Section scheduled to be repealed on June 30, 2012)

Sec. 5. Business Enterprise Council.

(1) To help implement, monitor and enforce the goals of this Act, there is created the Business Enterprise Council for Minorities, Females, and Persons with Disabilities, hereinafter referred to as the Council, composed of the Secretary of Human Services and the Directors of the Department of Human Rights, the Department of Commerce and Economic Opportunity, the Department of Central Management Services, the Department of Transportation and the Capital Development Board, or their duly appointed representatives. Ten individuals representing businesses that are minority or female owned or owned by persons with disabilities, 2 individuals representing the business community, and a representative of public universities shall be appointed by the Governor. These members shall serve 2 year terms and shall be eligible for reappointment. Any vacancy occurring on the Council shall also be filled by the Governor. Any member appointed to fill a vacancy occurring prior to the expiration of the term for which his predecessor was appointed shall be appointed for the remainder of such term. Members of the Council shall serve without compensation but shall be reimbursed for any ordinary and necessary expenses incurred in the performance of their duties.

The Director of the Department of Central Management Services shall serve as the Council chairperson and shall select, subject to approval of the council, a Secretary responsible for the operation of the program who shall serve as the Division Manager of the Business Enterprise for Minorities, Females, and Persons with Disabilities Division of the Department of Central Management Services.

The Director of each State agency and the chief executive officer of each State university shall appoint a liaison to the Council. The liaison shall be responsible for submitting to the Council any reports and documents necessary under this Act.

(2) The Council's authority and responsibility shall be to:

(a) Devise a certification procedure to assure that businesses taking advantage of this Act are legitimately classified as businesses owned by minorities, females, or persons with disabilities.

(b) Maintain a list of all businesses legitimately classified as businesses owned by minorities, females, or persons with disabilities to provide to State agencies and State universities.

(c) Review rules and regulations for the implementation of the program for businesses owned by minorities, females, and persons with disabilities.

(d) Review compliance plans submitted by each State agency and State university pursuant to this Act.

(e) Make annual reports as provided in Section 8f to the Governor and the General Assembly on the status of the program.

(f) Serve as a central clearinghouse for information on State contracts, including the maintenance of a list of all pending State contracts upon which businesses owned by minorities, females, and persons with disabilities may bid. At the Council's discretion, maintenance of the list may include 24-hour electronic access to the list along with the bid and application information.

(g) Establish a toll free telephone number to facilitate information requests concerning the certification process and pending contracts.

(3) No premium bond rate of a surety company for a bond required of a business owned by a minority, female, or person with a disability bidding for a State contract shall be higher than the lowest rate charged by that surety company for a similar bond in the same classification of work that would be written for a business not owned by a minority, female, or person with a disability.

(4) Any Council member who has direct financial or personal interest in any measure pending before the Council shall disclose this fact to the Council and refrain from participating in the determination upon such measure.

(5) The Secretary shall have the following duties and responsibilities:

(a) To be responsible for the day-to-day operation of the Council.

(b) To serve as a coordinator for all of the State's programs for businesses owned by minorities, females, and persons with disabilities and as the information and referral center for all State initiatives for businesses owned by minorities, females, and persons with disabilities.

(c) To establish an enforcement procedure whereby the Council may recommend to the appropriate State legal officer that the State exercise its legal remedies which shall include (1) termination of the contract involved, (2) prohibition of participation by the respondent in public contracts for a period not to exceed one year, (3) imposition of a penalty not to exceed any profit acquired as a result of violation, or (4) any combination thereof. Such procedures shall require prior approval by Council.

(d) To devise appropriate policies, regulations and procedures for including participation by businesses owned by minorities, females, and persons with disabilities as prime contractors including, but not limited to, (i) encouraging the inclusions of qualified businesses owned by minorities, females, and persons with disabilities on solicitation lists, (ii) investigating the potential of blanket bonding programs for small construction jobs, (iii) investigating and making recommendations concerning the use of the sheltered market process.

(e) To devise procedures for the waiver of the participation goals in appropriate circumstances.

(f) To accept donations and, with the approval of the Council or the Director of Central Management Services, grants related to the purposes of this Act; to conduct seminars related to the purpose of this Act and to charge reasonable registration fees; and to sell directories, vendor lists and other such information to interested parties, except that forms necessary to become eligible for the program shall be provided free of charge to a business or individual applying for the program.

(6) The Department of Minority and Women Inclusion shall monitor the Council's activities, as provided in the Department of Minority and Women Inclusion Act.

(Source: P.A. 94-793, eff. 5-19-06.)

Section 99. Effective date. This Act takes effect upon becoming law.".