Rep. Delia C. Ramirez

Filed: 3/22/2021

 

 


 

 


 
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1
AMENDMENT TO HOUSE BILL 721

2    AMENDMENT NO. ______. Amend House Bill 721 by replacing
3everything after the enacting clause with the following:
 
4    "Section 1. Short title. This Act may be cited as the
5Diversity in Not-for-Profit Act.
 
6    Section 5. Definitions. As used in this Act:
7    "Board of directors" has the same meaning as provided
8under subsection (d) of Section 101.80 of the General Not For
9Profit Corporation Act of 1986.
10    "Certification" means a determination that a
11not-for-profit organization meets the defined classifications
12of a "minority-led not-for-profit organization", a "woman-led
13not-for-profit organization", or a "not-for-profit
14organization led by a person with a disability".
15    "Key employees" means an employee of the organization who
16is:

 

 

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1        (1) the person who has ultimate responsibility for
2    implementing the decisions of the board of directors or
3    for supervising the management, administration, or
4    operation of the organization;
5        (2) the person who has ultimate responsibility for
6    managing the organization's finances; or
7        (3) the person who:
8            (A) has responsibilities, powers, or influence
9        over the organization as a whole that is similar to the
10        persons described in paragraphs (1) and (2);
11            (B) manages a discrete segment or activity of the
12        organizations that represents 25% or more of the
13        activities, assets, income, or expenses of the
14        organization, as compared to the organization as a
15        whole, or has or shares authority to control or
16        determine 25% or more of the organization's capital
17        expenditures, operating budget, or compensation for
18        employees; and
19            (C) is one of the 5 highest compensated employees
20        in the organization.
21    "Minority-led not-for-profit organization" means an
22organization that is tax-exempt under Sections 501(c)(3) or
23501(c)(4) of the Internal Revenue Code of 1986, has filed all
24required forms under the Solicitation for Charity Act, and for
25which:
26        (1) at least 51% of the members of the organization's

 

 

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1    board of directors are minority persons, or at least 51%
2    of the members of the organization's board of directors
3    and key employees are minority persons;
4        (2) the organization is regularly and actively engaged
5    in the activity for which it is formed;
6        (3) the organization is not dependent upon or
7    influenced by another non-eligible person or organization;
8    and
9        (4) the organization has not been established or
10    reorganized for the specific purpose of obtaining a
11    certification under this Act.
12    "Not-for-profit organization led by a person with a
13disability" means an organization that is tax-exempt under
14Sections 501(c)(3) or 501(c)(4) of the Internal Revenue Code
15of 1986, has filed all required forms under the Solicitation
16for Charity Act, and for which:
17        (1) at least 51% of the members of the organization's
18    board of directors are persons with a disability, or at
19    least 51% of the members of the organization's board of
20    directors and key employees are persons with a disability;
21        (2) the organization is regularly and actively engaged
22    in the activity for which it is formed;
23        (3) the organization is not dependent upon or
24    influenced by another non-eligible person or organization;
25    and
26        (4) the organization has not been established or

 

 

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1    reorganized for the specific purpose of obtaining a
2    certification under this Act.
3    "Woman-led not-for-profit organization" means an
4organization that is tax-exempt under Sections 501(c)(3) or
5501(c)(4) of the Internal Revenue Code of 1986, has filed all
6required forms under the Solicitation for Charity Act, and for
7which:
8        (1) at least 51% of the members of the organization's
9    board of directors are women, or at least 51% of the
10    members of the organization's board of directors and key
11    employees are women;
12        (2) the organization is regularly and actively engaged
13    in the activity for which it is formed;
14        (3) the organization is not dependent upon or
15    influenced by another non-eligible person or organization;
16    and
17        (4) the organization has not been established or
18    reorganized for the specific purpose of obtaining a
19    certification under this Act.
 
20    Section 10. Certification.
21    (a) For the purpose of assuring that a not-for-profit
22organization taking advantage of this Act is legitimately
23classified as a minority-led not-for-profit organization, a
24woman-led not-for-profit organization, or a not-for-profit
25organization led by a person with a disability, any State

 

 

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1agency, county, or unit of local government of the State of
2Illinois that, on the effective date of this Act, certifies
3entities under a disadvantaged business enterprise program
4created under (i) the Business Enterprise for Minorities,
5Women, and Persons with Disabilities Act, (ii) home rule
6authorization under the Illinois Constitution, or (iii) any
7similar statutory or home rule authorizations, may also
8certify the organizations defined under this Act. Any such
9State agency, county, or unit of local government, if it
10elects to certify hereunder, shall also maintain a list of all
11not-for-profit organizations legitimately classified as a
12minority-led not-for-profit organization, a woman-led
13not-for-profit organization, or a not-for-profit organization
14led by a person with a disability.
15    (b) When a not-for-profit organization's board of
16directors, or the board of directors together with key
17employees, consists of at least 51% of any combination of
18minority persons, women, or persons with disabilities, even
19though none of the 3 classes alone holds at least a 51% share,
20the 51% membership requirement for purposes of certification
21under this Act shall be considered met. The certification
22category for not-for-profit organizations shall be that of the
23class holding the largest share of positions on the board of
24directors, or on the board of directors together with key
25employees, of a not-for-profit organization. If 2 or more
26classes have an equal share of positions on the board of

 

 

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1directors, or on the board of directors together with key
2employees, the certification category shall be determined by
3the not-for-profit organization.
 
4    Section 15. Rules. Any State agency that elects to certify
5organizations under this Act shall adopt rules necessary to
6implement and enforce the requirements of this Act.
 
7    Section 100. The Public Utilities Act is amended by
8changing Section 5-117 as follows:
 
9    (220 ILCS 5/5-117)
10    Sec. 5-117. Supplier diversity goals.
11    (a) The public policy of this State is to collaboratively
12work with companies and not-for-profit organizations that
13serve Illinois residents to improve their supplier diversity
14in a non-antagonistic manner.
15    (a-5) For the purposes of this Section, "minority-led
16not-for-profit organization", "woman-led not-for-profit
17organization", and "not-for-profit organization led by a
18person with a disability" shall have the same meanings as
19provided under the Diversity in Not-for-Profit Act.
20    (b) The Commission shall require all gas, electric, and
21water companies with at least 100,000 customers under its
22authority, as well as suppliers of wind energy, solar energy,
23hydroelectricity, nuclear energy, and any other supplier of

 

 

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1energy within this State, to submit an annual report by April
215, 2015 and every April 15 thereafter, in a searchable Adobe
3PDF format, on all procurement goals and actual spending for
4female-owned, minority-owned, veteran-owned, person with a
5disability-owned, and small business enterprises, as well as
6minority-led not-for-profit organizations, woman-led
7not-for-profit organizations, and not-for-profit
8organizations led by a person with a disability, in the
9previous calendar year. These goals shall be expressed as a
10percentage of the total work performed by the entity
11submitting the report, and the actual spending for all
12female-owned, minority-owned, veteran-owned, person with a
13disability-owned, and small business enterprises, as well as
14minority-led not-for-profit organizations, woman-led
15not-for-profit organizations, and not-for-profit
16organizations led by a person with a disability, shall also be
17expressed as a percentage of the total work performed by the
18entity submitting the report.
19    (c) Each participating company in its annual report shall
20include the following information:
21        (1) an explanation of the plan for the next year to
22    increase participation;
23        (2) an explanation of the plan to increase the goals;
24        (3) the areas of procurement each company shall be
25    actively seeking more participation in in the next year;
26        (4) an outline of the plan to alert and encourage

 

 

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1    potential vendors in that area to seek business from the
2    company;
3        (5) an explanation of the challenges faced in finding
4    quality vendors and offer any suggestions for what the
5    Commission could do to be helpful to identify those
6    vendors;
7        (6) a list of the certifications the company
8    recognizes;
9        (7) the point of contact for any potential vendor who
10    wishes to do business with the company and explain the
11    process for a vendor to enroll with the company as a
12    minority-owned, women-owned, or veteran-owned, or person
13    with a disability-owned company, or a minority-led
14    not-for-profit organization, a woman-led not-for-profit
15    organization, or a not-for-profit organization led by a
16    person with a disability; and
17        (8) any particular success stories to encourage other
18    companies to emulate best practices.
19    (d) Each annual report shall include as much
20State-specific data as possible. If the submitting entity does
21not submit State-specific data, then the company shall include
22any national data it does have and explain why it could not
23submit State-specific data and how it intends to do so in
24future reports, if possible.
25    (e) Each annual report shall include the rules,
26regulations, and definitions used for the procurement goals in

 

 

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1the company's annual report.
2    (f) The Commission and all participating entities shall
3hold an annual workshop open to the public in 2015 and every
4year thereafter on the state of supplier diversity to
5collaboratively seek solutions to structural impediments to
6achieving stated goals, including testimony from each
7participating entity as well as subject matter experts and
8advocates. The Commission shall publish a database on its
9website of the point of contact for each participating entity
10for supplier diversity, along with a list of certifications
11each company recognizes from the information submitted in each
12annual report. The Commission shall publish each annual report
13on its website and shall maintain each annual report for at
14least 5 years.
15(Source: P.A. 98-1056, eff. 8-26-14; 99-906, eff. 6-1-17;
16revised 7-22-19.)".