SB2399 99TH GENERAL ASSEMBLY

LRB099 17224 MLM 41582 b

99TH GENERAL ASSEMBLY
State of Illinois
2015 and 2016
SB2399

Introduced 2/3/2016, by Sen. Iris Y. Martinez

SYNOPSIS AS INTRODUCED:

New Act

Creates the Chicago Local Government Vendor Diversity Act. Creates the Chicago Local Government Vendor Diversity Task Force to promote and encourage open access in the awarding of governmental contracts to businesses with diverse hiring practices. Sets forth the membership of the Task Force and the terms of office of its members. Provides that the Department of Central Management Services shall house, staff, and otherwise provide day-to-day support to the Task Force necessary to achieve the policy objectives and enforcement described in the Act. Requires vendors who enter into a contracts with a governmental participant on or after January 1, 2017 to file certain reports with the Department of Central Management Services. Provides that each vendor that fails to file a report is ineligible to do any business with or provide any services to any governmental participant. Effective immediately.

FISCAL NOTE ACT MAY APPLY

A BILL FOR

AN ACT concerning finance.

Be it enacted by the People of the State of Illinois, represented in the General Assembly:

Section 1. Short title. This Act may be cited as the Chicago Local Government Vendor Diversity Act.

Section 5. Definitions. For the purposes of this Act:

"Department" means the Department of Central Management Services.

"Governmental participant" means any political subdivision, sanitary district, special district, non-home rule unit of local government, pension fund, or defined contribution plan located or having a principal place of business in the City of Chicago, other than the City of Chicago or any department, agency, or commission of the City of Chicago.

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

(1) American Indian or Alaska Native (a person having origins in any of the original peoples of North and South America, including Central America, and who maintains tribal affiliation or community attachment).

(2) Asian (a person having origins in any of the original peoples of the Far East, Southeast Asia, or the Indian subcontinent, including, but not limited to, Cambodia, China, India, Japan, Korea, Malaysia, Pakistan, the Philippine Islands, Thailand, and Vietnam).

(3) Black or African-American (a person having origins in any of the black racial groups of Africa).

(4) Hispanic or Latino (a person of Cuban, Mexican, Puerto Rican, South or Central American, or other Spanish culture or origin, regardless of race).

(5) Native Hawaiian or Other Pacific Islander (a person having origins in any of the original peoples of Hawaii, Guam, Samoa, or other Pacific Islands).

"Task Force" means the Chicago Local Government Vendor Diversity Task Force.

"Vendor" means any law firm, financial advisor, municipal advisor, bank, trustee, verification agent, fund manager, asset manager, institutional investment manager, fund consultant or underwriter that provides any professional service to any governmental participant (as defined hereafter) in connection with debt obligation transactions, auditing, financial services, asset management services, or brokerage services.

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

Section 10. Chicago Local Government Vendor Diversity Task Force.

(a) There is created the Chicago Local Government Vendor Diversity Task Force to promote and encourage open access in the awarding of governmental contracts to businesses with diverse hiring practices. The State of Illinois further declares that it is the public policy of this State to promote and encourage the continuous economic development of businesses that hire and promote minority persons and women. For this propose, the Task Force has the authority to oversee all aspects of the diversity reporting initiative created by this Act. The Task Force may adopt rules under the Illinois Administrative Procedure Act to further administer the above described policy objective.

(b) The Task Force shall be composed of the following members serving without compensation:

(1) 3 members appointed by the Speaker of the House of Representatives;

(2) 3 members appointed by the President of the Senate; and

(3) 3 members appointed by the Governor.

(c) The Speaker of the House of Representatives, the President of the Senate, and the Governor shall each make their initial appointments to the Task Force within 45 days after the effective date of this Act. The terms of office of the initial members appointed shall begin on January 1, 2017. Of the initial members appointed, one member appointed by each appointing authority shall be appointed for a 2-year term; one member appointed by each appointing authority shall be appointed for a 3-year term; and one member appointed by each appointing authority shall be appointed for a 4-year term. Those members shall serve until their successors are appointed and qualified. Thereafter, all members shall be appointed for terms of 4 years and shall serve until their successors are appointed and qualified. Appointments to fill vacancies shall be made in the same manner as the original appointments for the unexpired portion of the vacated term.

(d) No more than 6 members of the Task Force shall be affiliated with the same political party.

(e) As soon as practicable after the initial members of the Task Force have been appointed, they shall meet and elect a chairman and a secretary. The chairman and secretary shall be elected by the Task Force from among its members for terms of 2 years or for the remainder of their term of office as a member of the Task Force, whichever is shorter. The Task Force is subject to the Open Meetings Act. The Task Force shall hold regular quarterly meetings and such other meetings as may be called by the chairman.

(f) The Department shall house, staff, and otherwise provide day-to-day support to the Task Force necessary to achieve the policy objectives and enforcement described in this Act.

(g) The Task Force has the power to investigate the enforcement of this Act and its rules.

Section 15. Reporting requirements.

(a) The Department shall produce 2 forms requesting from vendors demographic information of those professionals who will participate in the performance required under the contract with the governmental participant: (i) a front-end report of professionals and (ii) a supplemental report of professionals. Each vendor who enters into a contract with a governmental participant on or after January 1, 2017 shall accurately report and file with the Department of Central Management Services both a front-end report upon entering into the contract and a supplemental report upon completion of the contract.

(b) All vendors who are required to file reports under subsection (a) shall, at the time of executing the contract with the governmental participant, complete the front-end report and submit it to the Department. The vendor shall disclose to the Department those professionals who are expected to participate in the performance of the contract and shall provide within the front-end report the following with respect to each such professional:

(1) racial, ethnic background, and gender;

(2) position within the company; and

(3) job title.

(c) Within 30 days after the completion of performance under the contract, the vendor shall file with the Department a supplemental report stating the following:

(1) the total time the vendor worked, per the terms of the contract;

(2) the racial, ethnic background, and gender of each professional who participated in the performance required under the contract; and

(3) the amount of time spent by each such professional to work on the performance required under the contract.

(d) The Department shall, by rule, provide that each vendor that fails to file a report under this Section is ineligible to do any business with or provide services to any governmental participant and may grant extensions of the time to file a report for good cause shown. The Department shall adopt rules necessary to establish procedures to reinstate vendors who have been declared ineligible.

(e) The Department shall deliver to the Task Force each quarter all collected data, vendor forms, information, and reports, together with a list of vendors who failed to comply.

(f) The Task Force shall report its findings and recommendations to the Governor, the General Assembly, and the City Council of the City of Chicago by December 31, 2017 and by December 31 of each year thereafter through December 31, 2026.

Section 20. Repeal. This Act is repealed on January 1, 2028.

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