98TH GENERAL ASSEMBLY
State of Illinois
2013 and 2014
HB5421

 

Introduced , by Rep. Monique D. Davis

 

SYNOPSIS AS INTRODUCED:
 
215 ILCS 5/Art. XLVI heading new
215 ILCS 5/1700 new
215 ILCS 5/1705 new
215 ILCS 5/1710 new
215 ILCS 5/1715 new
215 ILCS 5/1720 new
215 ILCS 5/1725 new

    Amends the Illinois Insurance Code to create the Diversity Reporting Article within the Code. Sets forth legislative findings and definitions. Provides that all companies that collect premiums greater than $1,000,000 shall submit a report to the Director of Insurance concerning its procurement efforts regarding enterprises owned by minorities, women, qualified service-disabled veterans, and persons with disabilities. Provides that an entity that does not enter into contracts to procure goods or services in this State satisfies the reporting requirements by filing a statement with the Director attesting that it does not enter into procurement contracts in Illinois. Sets forth provisions concerning filing, penalties, and reporting updates and public availability.


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FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

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1    AN ACT concerning regulation.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Illinois Insurance Code is amended by adding
5Art. XLVI as follows:
 
6    (215 ILCS 5/Art. XLVI heading new)
7
ARTICLE XLVI. DIVERSITY REPORTING

 
8    (215 ILCS 5/1700 new)
9    Sec. 1700. Legislative findings. The General Assembly
10finds that enterprises owned by minorities, women, qualified
11service-disabled veterans, and persons with disabilities are
12under-utilized in the sale of goods and services used in the
13insurance industry, and accordingly deems it a prudent business
14practice and in the interests of the people of the State of
15Illinois to develop and promote economic opportunities for
16enterprises owned by minorities, women, qualified
17service-disabled veterans, and persons with disabilities in
18the insurance industry whenever possible.
19    The General Assembly further declares that it is the public
20policy of this State to promote and encourage the continuous
21economic development of businesses owned by minorities, women,
22qualified service-disabled veterans, and persons with

 

 

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1disabilities by providing that each major insurer submit to the
2Director of Insurance a report explaining the reporting
3entity's supplier diversity statement and expressing its goals
4regarding enterprises. The Director shall publish the reports
5on the Department of Insurance's Internet website, so that
6those reports will help facilitate these supplier
7relationships.
 
8    (215 ILCS 5/1705 new)
9    Sec. 1705. Definitions. In this Article:
10    "Department" means the Department of Insurance.
11    "Director" means the Director of Insurance.
12    "Enterprise" means a minority owned business, a business
13owned by a person with a disability, or a female owned
14business, as those terms are defined in the Business Enterprise
15for Minorities, Females, and Persons with Disabilities Act, or
16a business owned by a qualified service-disabled veteran that
17has been certified by the Department of Veterans' Affairs and
18the Department of Central Management Services pursuant to
19Section 45-57 of the Illinois Procurement Code.
20    "Reporting entity" means all companies licensed by the
21Department of Insurance.
 
22    (215 ILCS 5/1710 new)
23    Sec. 1710. Applicability. All companies that collect
24premiums greater than $1,000,000 shall submit a report to the

 

 

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1Director concerning its procurement efforts regarding
2enterprises owned by minorities, women, qualified
3service-disabled veterans, and persons with disabilities
4during the reporting period set forth in Sections 1720 and 1725
5of this Code.
 
6    (215 ILCS 5/1715 new)
7    Sec. 1715. Filing.
8    (a) Each reporting entity shall file a report in accordance
9with this Article concerning its procurement involving
10enterprises owned by minorities, women, qualified
11service-disabled veterans, and persons with disabilities.
12    (b) The contents of the report shall include, but not be
13limited to, all of the following:
14        (1) The reporting entity's supplier diversity policy
15    statement.
16        (2) The reporting entity's outreach and communications
17    to enterprises, including the following:
18            (A) The means by which the reporting entity
19        encourages and seeks out enterprises to become
20        potential suppliers.
21            (B) The means by which the reporting entity
22        encourages its employees involved in procurement to
23        seek enterprises to become potential suppliers.
24            (C) The means by which the reporting entity
25        conducts outreach and communication to enterprises.

 

 

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1            (D) The means by which the reporting entity
2        supports organizations that promote or certify
3        enterprises.
4            (E) Information regarding appropriate contacts at
5        the reporting entity for interested enterprises.
6        (3) Information about which procurements are made from
7    enterprises with at least a majority of the enterprise's
8    workforce in Illinois, with each category aggregated
9    separately, to the extent that information is readily
10    accessible.
11    A reporting entity may include other relevant information
12in the report.
13    (c) A reporting entity that does not enter into contracts
14to procure goods or services in this State satisfies the
15requirements of this Section by filing a statement with the
16Director attesting that it does not enter into procurement
17contracts in Illinois.
18    (d) Nothing in this Section shall be construed to require
19quotas, set-asides, or preferences in a reporting entity's
20procurement of goods or services, nor does this Section apply
21to insurer producer or licensee contracts. Reporting entities
22retain the authority to use business judgment to select the
23supplier for a particular contract.
24    (e) Nothing in this Section shall preclude a reporting
25entity that is a member of an insurance holding company system,
26as defined in Section 131.1 of this Code, from complying with

 

 

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1this Section through a single filing on behalf of the entire
2group of affiliated companies.
 
3    (215 ILCS 5/1720 new)
4    Sec. 1720. Penalties. Failure to file the report required
5by Section 1715 of this Code by July 1, 2015 may subject the
6reporting entity to a civil penalty to be determined by the
7Director, not to exceed $5,000, or, if the act or practice was
8willful, a civil penalty not to exceed $10,000. A reporting
9entity may request, and the Director may grant, a 30-day
10extension to file the report if needed due to unintended or
11unforeseen delays. The Director may adopt rules as may be
12necessary or appropriate for the administration and
13enforcement of this Article.
 
14    (215 ILCS 5/1725 new)
15    Sec. 1725. Updates and public availability.
16    (a) Not later than July 1, 2017, each reporting entity
17shall update its report and submit the new report to the
18Director once every 2 years.
19    (b) By July 31, 2015, the Director shall establish and
20maintain a link on the Department's Internet website that
21provides public access to the contents of each reporting
22entities' report on enterprise procurement efforts. The
23Director shall include a statement on the Department's Internet
24website indicating that the information contained in the

 

 

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1reporting entities' report on enterprise procurement efforts
2is provided for informational purposes only.