Rep. Arthur Turner

Filed: 5/21/2015

 

 


 

 


 
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1
AMENDMENT TO SENATE BILL 1334

2    AMENDMENT NO. ______. Amend Senate Bill 1334, AS AMENDED,
3by replacing everything after the enacting clause with the
4following:
 
5    "Section 5. The Business Enterprise for Minorities,
6Females, and Persons with Disabilities Act is amended by
7changing Sections 2, 3, 4, 5, 6, 6a, 7, 8, and 8f and by adding
8Section 4f as follows:
 
9    (30 ILCS 575/2)
10    (Section scheduled to be repealed on June 30, 2016)
11    Sec. 2. Definitions.
12    (A) For the purpose of this Act, the following terms shall
13have the following definitions:
14        (1) "Minority person" shall mean a person who is a
15    citizen or lawful permanent resident of the United States
16    and who is any of the following:

 

 

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1            (a) American Indian or Alaska Native (a person
2        having origins in any of the original peoples of North
3        and South America, including Central America, and who
4        maintains tribal affiliation or community attachment).
5            (b) Asian (a person having origins in any of the
6        original peoples of the Far East, Southeast Asia, or
7        the Indian subcontinent, including, but not limited
8        to, Cambodia, China, India, Japan, Korea, Malaysia,
9        Pakistan, the Philippine Islands, Thailand, and
10        Vietnam).
11            (c) Black or African American (a person having
12        origins in any of the black racial groups of Africa).
13        Terms such as "Haitian" or "Negro" can be used in
14        addition to "Black or African American".
15            (d) Hispanic or Latino (a person of Cuban, Mexican,
16        Puerto Rican, South or Central American, or other
17        Spanish culture or origin, regardless of race).
18            (e) Native Hawaiian or Other Pacific Islander (a
19        person having origins in any of the original peoples of
20        Hawaii, Guam, Samoa, or other Pacific Islands).
21        (2) "Female" shall mean a person who is a citizen or
22    lawful permanent resident of the United States and who is
23    of the female gender.
24        (2.05) "Person with a disability" means a person who is
25    a citizen or lawful resident of the United States and is a
26    person qualifying as being disabled under subdivision

 

 

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1    (2.1) of this subsection (A).
2        (2.1) "Disabled" means a severe physical or mental
3    disability that:
4            (a) results from:
5            amputation,
6            arthritis,
7            autism,
8            blindness,
9            burn injury,
10            cancer,
11            cerebral palsy,
12            Crohn's disease,
13            cystic fibrosis,
14            deafness,
15            head injury,
16            heart disease,
17            hemiplegia,
18            hemophilia,
19            respiratory or pulmonary dysfunction,
20            an intellectual disability,
21            mental illness,
22            multiple sclerosis,
23            muscular dystrophy,
24            musculoskeletal disorders,
25            neurological disorders, including stroke and
26        epilepsy,

 

 

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1            paraplegia,
2            quadriplegia and other spinal cord conditions,
3            sickle cell anemia,
4            ulcerative colitis,
5            specific learning disabilities, or
6            end stage renal failure disease; and
7            (b) substantially limits one or more of the
8        person's major life activities.
9        Another disability or combination of disabilities may
10    also be considered as a severe disability for the purposes
11    of item (a) of this subdivision (2.1) if it is determined
12    by an evaluation of rehabilitation potential to cause a
13    comparable degree of substantial functional limitation
14    similar to the specific list of disabilities listed in item
15    (a) of this subdivision (2.1).
16        (3) "Minority owned business" means a business concern
17    which is at least 51% owned by one or more minority
18    persons, or in the case of a corporation, at least 51% of
19    the stock in which is owned by one or more minority
20    persons; and the management and daily business operations
21    of which are controlled by one or more of the minority
22    individuals who own it.
23        (4) "Female owned business" means a business concern
24    which is at least 51% owned by one or more females, or, in
25    the case of a corporation, at least 51% of the stock in
26    which is owned by one or more females; and the management

 

 

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1    and daily business operations of which are controlled by
2    one or more of the females who own it.
3        (4.1) "Business owned by a person with a disability"
4    means a business concern that is at least 51% owned by one
5    or more persons with a disability and the management and
6    daily business operations of which are controlled by one or
7    more of the persons with disabilities who own it. A
8    not-for-profit agency for persons with disabilities that
9    is exempt from taxation under Section 501 of the Internal
10    Revenue Code of 1986 is also considered a "business owned
11    by a person with a disability".
12        (4.2) "Council" means the Business Enterprise Council
13    for Minorities, Females, and Persons with Disabilities
14    created under Section 5 of this Act.
15        (5) "State contracts" means all contracts entered into
16    by the State, any agency or department thereof, or any
17    public institution of higher education including community
18    college districts, regardless of the source of the funds
19    with which the contracts are paid, which are not subject to
20    federal reimbursement. "State contracts" does not include
21    contracts awarded by a retirement system, pension fund, or
22    investment board subject to Section 1-109.1 of the Illinois
23    Pension Code. This definition shall control over any
24    existing definition under this Act or applicable
25    administrative rule. "State contracts" shall mean all
26    State contracts, funded exclusively with State funds which

 

 

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1    are not subject to federal reimbursement, whether
2    competitively bid or negotiated as defined by the Secretary
3    of the Council and approved by the Council.
4        "State construction contracts" means all State
5    contracts entered into by a State agency or public
6    institution of higher education State university for the
7    repair, remodeling, renovation or construction of a
8    building or structure, or for the construction or
9    maintenance of a highway defined in Article 2 of the
10    Illinois Highway Code.
11        (6) "State agencies" shall mean all departments,
12    officers, boards, commissions, institutions and bodies
13    politic and corporate of the State, but does not include
14    the Board of Trustees of the University of Illinois, the
15    Board of Trustees of Southern Illinois University, the
16    Board of Trustees of Chicago State University, the Board of
17    Trustees of Eastern Illinois University, the Board of
18    Trustees of Governors State University, the Board of
19    Trustees of Illinois State University, the Board of
20    Trustees of Northeastern Illinois University, the Board of
21    Trustees of Northern Illinois University, the Board of
22    Trustees of Western Illinois University, municipalities or
23    other local governmental units, or other State
24    constitutional officers.
25        (7) "Public institutions of higher education" means
26    the University of Illinois, Southern Illinois University,

 

 

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1    Chicago State University, Eastern Illinois University,
2    Governors State University, Illinois State University,
3    Northeastern Illinois University, Northern Illinois
4    University, Western Illinois University, the public
5    community colleges of the State, and any other public
6    universities, colleges and community colleges now or
7    hereafter established or authorized by the General
8    Assembly. "State universities" shall mean the Board of
9    Trustees of the University of Illinois, the Board of
10    Trustees of Southern Illinois University, the Board of
11    Trustees of Chicago State University, the Board of Trustees
12    of Eastern Illinois University, the Board of Trustees of
13    Governors State University, the Board of Trustees of
14    Illinois State University, the Board of Trustees of
15    Northeastern Illinois University, the Board of Trustees of
16    Northern Illinois University, and the Board of Trustees of
17    Western Illinois University.
18        (8) "Certification" means a determination made by the
19    Council or by one delegated authority from the Council to
20    make certifications, or by a State agency with statutory
21    authority to make such a certification, that a business
22    entity is a business owned by a minority, female, or person
23    with a disability for whatever purpose. A business owned
24    and controlled by females shall be certified as a "female
25    owned business". A business owned and controlled by females
26    who are also minorities shall be certified as both a

 

 

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1    "female owned business" and a "minority owned business".
2        (9) "Control" means the exclusive or ultimate and sole
3    control of the business including, but not limited to,
4    capital investment and all other financial matters,
5    property, acquisitions, contract negotiations, legal
6    matters, officer-director-employee selection and
7    comprehensive hiring, operating responsibilities,
8    cost-control matters, income and dividend matters,
9    financial transactions and rights of other shareholders or
10    joint partners. Control shall be real, substantial and
11    continuing, not pro forma. Control shall include the power
12    to direct or cause the direction of the management and
13    policies of the business and to make the day-to-day as well
14    as major decisions in matters of policy, management and
15    operations. Control shall be exemplified by possessing the
16    requisite knowledge and expertise to run the particular
17    business and control shall not include simple majority or
18    absentee ownership.
19        (10) "Business concern or business" means a business
20    that has annual gross sales of less than $75,000,000 as
21    evidenced by the federal income tax return of the business.
22    A firm with gross sales in excess of this cap may apply to
23    the Council for certification for a particular contract if
24    the firm can demonstrate that the contract would have
25    significant impact on businesses owned by minorities,
26    females, or persons with disabilities as suppliers or

 

 

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1    subcontractors or in employment of minorities, females, or
2    persons with disabilities.
3    (B) When a business concern is owned at least 51% by any
4combination of minority persons, females, or persons with
5disabilities, even though none of the 3 classes alone holds at
6least a 51% interest, the ownership requirement for purposes of
7this Act is considered to be met. The certification category
8for the business is that of the class holding the largest
9ownership interest in the business. If 2 or more classes have
10equal ownership interests, the certification category shall be
11determined by the business concern.
12(Source: P.A. 97-227, eff. 1-1-12; 97-396, eff. 1-1-12; 97-813,
13eff. 7-13-12; 98-95, eff. 7-17-13.)
 
14    (30 ILCS 575/3)  (from Ch. 127, par. 132.603)
15    (Section scheduled to be repealed on June 30, 2016)
16    Sec. 3. Implementation and applicability. This Act shall be
17applied to all State agencies and public institutions of higher
18education State universities.
19(Source: P.A. 85-729.)
 
20    (30 ILCS 575/4)  (from Ch. 127, par. 132.604)
21    (Section scheduled to be repealed on June 30, 2016)
22    Sec. 4. Award of State contracts.
23    (a) Except as provided in subsections (b) and (c), not less
24than 20% of the total dollar amount of State contracts, as

 

 

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1defined by the Secretary of the Council and approved by the
2Council, shall be established as an aspirational a goal to be
3awarded to businesses owned by minorities, females, and persons
4with disabilities; provided, however, that of the total amount
5of all State contracts awarded to businesses owned by
6minorities, females, and persons with disabilities pursuant to
7this Section, contracts representing at least 11% shall be
8awarded to businesses owned by minorities, contracts
9representing at least 7% shall be awarded to female-owned
10businesses, and contracts representing at least 2% shall be
11awarded to businesses owned by persons with disabilities.
12    The above percentage relates to the total dollar amount of
13State contracts during each State fiscal year, calculated by
14examining independently each type of contract for each agency
15or public institutions of higher education university which
16lets such contracts. Only that percentage of arrangements which
17represents the participation of businesses owned by
18minorities, females, and persons with disabilities on such
19contracts shall be included.
20    (b) In the case of State construction contracts, the
21provisions of subsection (a) requiring a portion of State
22contracts to be awarded to businesses owned and controlled by
23persons with disabilities do not apply. The following
24aspirational goals are established for State construction
25contracts: not Not less than 20% 10% of the total dollar amount
26of State construction contracts is established as a goal to be

 

 

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1awarded to minority and female owned businesses, and contracts
2representing 50% of the amount of all State construction
3contracts awarded to minority and female owned businesses shall
4be awarded to female owned businesses.
5    (c) In the case of all work undertaken by the University of
6Illinois related to the planning, organization, and staging of
7the games, the University of Illinois shall establish a goal of
8awarding not less than 25% of the annual dollar value of all
9contracts, purchase orders, and other agreements (collectively
10referred to as "the contracts") to minority-owned businesses or
11businesses owned by a person with a disability and 5% of the
12annual dollar value the contracts to female-owned businesses.
13For purposes of this subsection, the term "games" has the
14meaning set forth in the Olympic Games and Paralympic Games
15(2016) Law.
16    (d) Within one year after April 28, 2009 (the effective
17date of Public Act 96-8), the Department of Central Management
18Services shall conduct a social scientific study that measures
19the impact of discrimination on minority and female business
20development in Illinois. Within 18 months after April 28, 2009
21(the effective date of Public Act 96-8), the Department shall
22issue a report of its findings and any recommendations on
23whether to adjust the goals for minority and female
24participation established in this Act. Copies of this report
25and the social scientific study shall be filed with the
26Governor and the General Assembly.

 

 

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1    (e) Notwithstanding any provision of law to the contrary
2and except as otherwise mandated by federal law or regulation,
3those who submit bids or proposals for State construction
4contracts subject to the provisions of this Act, whose bids or
5proposals are successful but that fail to meet the goals set
6forth in subsection (b) of this Section, shall be notified of
7that deficiency and shall be afforded a period not to exceed 30
8days to cure that deficiency in the bid or proposal. The
9deficiency in the bid or proposal may only be cured by
10contracting with additional subcontractors who are owned by
11minorities, females, or, where applicable, persons with
12disabilities, but in no case shall an identified subcontractor
13with a certification made pursuant to this Act be terminated
14from the contract without the written consent of the State
15agency or public institution of higher education entering into
16the contract. Those who submit bids or proposals for State
17contracts shall not be given a period after the bid or proposal
18is submitted to cure deficiencies in the bid or proposal under
19this Act unless mandated by federal law or regulation.
20(Source: P.A. 96-7, eff. 4-3-09; 96-8, eff. 4-28-09; 96-706,
21eff. 8-25-09; 96-795, eff. 7-1-10 (see Section 5 of P.A. 96-793
22for the effective date of changes made by P.A. 96-795);
2396-1000, eff. 7-2-10.)
 
24    (30 ILCS 575/4f new)
25    Sec. 4f. Award of State contracts.

 

 

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1    (1) It is hereby declared to be the public policy of the
2State of Illinois to promote and encourage each State agency
3and public institution of higher education to use businesses
4owned by minorities, females, and persons with disabilities in
5the area of goods and services, including, but not limited to,
6insurance services, investment management services,
7information technology services, accounting services,
8architectural and engineering services, and legal services.
9Furthermore, each State agency and public institution of higher
10education shall utilize such firms to the greatest extent
11feasible within the bounds of financial and fiduciary prudence,
12and take affirmative steps to remove any barriers to the full
13participation of such firms in the procurement and contracting
14opportunities afforded.
15        (a) When a State agency or public institution of higher
16    education awards a contract for insurance services, for
17    each State agency or public institution of higher
18    education, it shall be the aspirational goal to use
19    insurance brokers owned by minorities, females, and
20    persons with disabilities as defined by this Act, for not
21    less than 20% of the total annual premiums or fees.
22        (b) When a State agency or public institution of higher
23    education awards a contract for investment services, for
24    each State agency or public institution of higher
25    education, it shall be the aspirational goal to use
26    emerging investment managers owned by minorities, females,

 

 

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1    and persons with disabilities as defined by this Act, for
2    not less than 20% of the total funds under management.
3    Furthermore, it is the aspirational goal that not less than
4    20% of the direct asset managers of the State funds be
5    minorities, females, and persons with disabilities.
6        (c) When a State agency or public institution of higher
7    education awards contracts for information technology
8    services, accounting services, architectural and
9    engineering services, and legal services, for each State
10    agency and public institution of higher education, it shall
11    be the aspirational goal to use such firms owned by
12    minorities, females, and persons with disabilities as
13    defined by this Act and lawyers who are minorities,
14    females, and persons with disabilities as defined by this
15    Act, for not less than 20% of the total dollar amount of
16    State contracts.
17    (2) As used in this Section:
18        "Accounting services" means the measurement,
19    processing and communication of financial information
20    about economic entities including, but is not limited to,
21    financial accounting, management accounting, auditing,
22    cost containment and auditing services, taxation and
23    accounting information systems.
24        "Architectural and engineering services" means
25    professional services of an architectural or engineering
26    nature, or incidental services, that members of the

 

 

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1    architectural and engineering professions, and individuals
2    in their employ, may logically or justifiably perform,
3    including studies, investigations, surveying and mapping,
4    tests, evaluations, consultations, comprehensive planning,
5    program management, conceptual designs, plans and
6    specifications, value engineering, construction phase
7    services, soils engineering, drawing reviews, preparation
8    of operating and maintenance manuals, and other related
9    services.
10        "Emerging investment manager" means an investment
11    manager or claims consultant having assets under
12    management below $10 billion or otherwise adjudicating
13    claims.
14        "Information technology services" means, but is not
15    limited to, specialized technology-oriented solutions by
16    combining the processes and functions of software,
17    hardware, networks, telecommunications, web designers,
18    cloud developing resellers, and electronics.
19        "Insurance broker" means an insurance brokerage firm,
20    claims administrator, or both, that procures, places all
21    lines of insurance, or administers claims with annual
22    premiums or fees of at least $5,000,000 but not more than
23    $10,000,000.
24        "Legal services" means work performed by a lawyer
25    including, but not limited to, contracts in anticipation of
26    litigation, enforcement actions, or investigations.

 

 

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1    (3) Each State agency and public institutions of higher
2education shall adopt policies that identify its plan and
3implementation procedures for increasing the use of service
4firms owned by minorities, females, and persons with
5disabilities.
6    (4) Except as provided in subsection (5), the Council shall
7file no later than March 1 of each year an annual report to the
8Governor and the General Assembly. The report filed with the
9General Assembly shall be filed as required in Section 3.1 of
10the General Assembly Organization Act. This report shall: (i)
11identify the services firms used by each State agency and
12public institution of higher education, (ii) identify the
13actions it has undertaken to increase the use of service firms
14owned by minorities, females, and persons with disabilities,
15including encouraging non-minority owned firms to use other
16service firms owned by minorities, females, and persons with
17disabilities as subcontractors when the opportunities arise,
18(iii) state any recommendations made by the Council to each
19State agency and public institution of higher education to
20increase participation by the use of service firms owned by
21minorities, females, and persons with disabilities, and (iv)
22include the following:
23        (A) For insurance services: the names of the insurance
24    brokers or claims consultants used, the total of risk
25    managed by each State agency and public institution of
26    higher education by insurance brokers, the total

 

 

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1    commissions, fees paid, or both, the lines or insurance
2    policies placed, and the amount of premiums placed; and the
3    percentage of the risk managed by insurance brokers, the
4    percentage of total commission, fees paid, or both, the
5    lines or insurance policies placed, and the amount of
6    premiums placed with each by the insurance brokers owned by
7    minorities, females, and persons with disabilities by each
8    State agency and public institution of higher education.
9        (B) For investment management services: the names of
10    the investment managers used, the total funds under
11    management of investment managers; the total commissions,
12    fees paid, or both; the total and percentage of funds under
13    management of emerging investment managers owned by
14    minorities, females, and persons with disabilities,
15    including the total and percentage of total commissions,
16    fees paid, or both by each State agency and public
17    institution of higher education.
18        (C) The names of service firms, the percentage and
19    total dollar amount paid for professional services by
20    category by each State agency and public institution of
21    higher education.
22        (D) The names of service firms, the percentage and
23    total dollar amount paid for services by category to firms
24    owned by minorities, females, and persons with
25    disabilities by each State agency and public institution of
26    higher education.

 

 

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1        (E) The total number of contracts awarded for services
2    by category and the total number of contracts awarded to
3    firms owned by minorities, females, and persons with
4    disabilities by each State agency and public institution of
5    higher education.
6    (5) For community college districts, the Business
7Enterprise Council shall only report the following information
8for each community college district: (i) the name of the
9community colleges in the district, (ii) the name and contact
10information of a person at each community college appointed to
11be the single point of contact for vendors owned by minorities,
12females, or persons with disabilities, (iii) the policy of the
13community college district concerning certified vendors, (iv)
14the certifications recognized by the community college
15district for determining whether a business is owned or
16controlled by a minority, female, or person with a disability,
17(v) outreach efforts conducted by the community college
18district to increase the use of certified vendors, (vi) the
19total expenditures by the community college district in the
20prior fiscal year in the divisions of work specified in
21paragraphs (a), (b), and (c) of subsection (1) of this Section
22and the amount paid to certified vendors in those divisions of
23work, and (vii) the total number contracts entered into for the
24divisions of work specified in paragraphs (a), (b), and (c) of
25subsection (1) of this Section and the total number of
26contracts awarded to certified vendors providing these

 

 

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1services to the community college district. The Business
2Enterprise Council shall not make any utilization reports under
3this Act for community college districts for Fiscal Year 2015
4and Fiscal Year 2016, but shall make the report required by
5this subsection for Fiscal Year 2017 and for each fiscal year
6thereafter. The Business Enterprise Council shall report the
7information in items (i), (ii), (iii), and (iv) of this
8subsection beginning in September of 2016. The Business
9Enterprise Council may collect the data needed to make its
10report from the Illinois Community College Board.
11    (6) The status of the utilization of services shall be
12discussed at each of the regularly scheduled Business
13Enterprise Council meetings. Time shall be allotted for the
14Council to receive, review, and discuss the progress of the use
15of service firms owned by minorities, females, and persons with
16disabilities by each State agency and public institutions of
17higher education; and any evidence regarding past or present
18racial, ethnic, or gender-based discrimination which directly
19impacts State agency or public institutions of higher education
20contracting with such firms. If after reviewing such evidence
21the Council finds that there is or has been such discrimination
22against a specific group, race or sex, the Council shall
23establish sheltered markets or adjust existing sheltered
24markets tailored to address the Council's specific findings for
25the divisions of work specified in paragraphs (a), (b), and (c)
26of subsection (1) of this Section.
 

 

 

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1    (30 ILCS 575/5)  (from Ch. 127, par. 132.605)
2    (Section scheduled to be repealed on June 30, 2016)
3    Sec. 5. Business Enterprise Council.
4    (1) To help implement, monitor and enforce the goals of
5this Act, there is created the Business Enterprise Council for
6Minorities, Females, and Persons with Disabilities,
7hereinafter referred to as the Council, composed of the
8Secretary of Human Services and the Directors of the Department
9of Human Rights, the Department of Commerce and Economic
10Opportunity, the Department of Central Management Services,
11the Department of Transportation and the Capital Development
12Board, or their duly appointed representatives. Ten
13individuals representing businesses that are minority or
14female owned or owned by persons with disabilities, 2
15individuals representing the business community, and a
16representative of public institutions of higher education
17public universities shall be appointed by the Governor. These
18members shall serve 2 year terms and shall be eligible for
19reappointment. Any vacancy occurring on the Council shall also
20be filled by the Governor. Any member appointed to fill a
21vacancy occurring prior to the expiration of the term for which
22his predecessor was appointed shall be appointed for the
23remainder of such term. Members of the Council shall serve
24without compensation but shall be reimbursed for any ordinary
25and necessary expenses incurred in the performance of their

 

 

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1duties.
2    The Director of the Department of Central Management
3Services shall serve as the Council chairperson and shall
4select, subject to approval of the council, a Secretary
5responsible for the operation of the program who shall serve as
6the Division Manager of the Business Enterprise for Minorities,
7Females, and Persons with Disabilities Division of the
8Department of Central Management Services.
9    The Director of each State agency and the chief executive
10officer of each public institutions of higher education State
11university shall appoint a liaison to the Council. The liaison
12shall be responsible for submitting to the Council any reports
13and documents necessary under this Act.
14    (2) The Council's authority and responsibility shall be to:
15        (a) Devise a certification procedure to assure that
16    businesses taking advantage of this Act are legitimately
17    classified as businesses owned by minorities, females, or
18    persons with disabilities.
19        (b) Maintain a list of all businesses legitimately
20    classified as businesses owned by minorities, females, or
21    persons with disabilities to provide to State agencies and
22    public institutions of higher education State
23    universities.
24        (c) Review rules and regulations for the
25    implementation of the program for businesses owned by
26    minorities, females, and persons with disabilities.

 

 

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1        (d) Review compliance plans submitted by each State
2    agency and public institutions of higher education State
3    university pursuant to this Act.
4        (e) Make annual reports as provided in Section 8f to
5    the Governor and the General Assembly on the status of the
6    program.
7        (f) Serve as a central clearinghouse for information on
8    State contracts, including the maintenance of a list of all
9    pending State contracts upon which businesses owned by
10    minorities, females, and persons with disabilities may
11    bid. At the Council's discretion, maintenance of the list
12    may include 24-hour electronic access to the list along
13    with the bid and application information.
14        (g) Establish a toll free telephone number to
15    facilitate information requests concerning the
16    certification process and pending contracts.
17    (3) No premium bond rate of a surety company for a bond
18required of a business owned by a minority, female, or person
19with a disability bidding for a State contract shall be higher
20than the lowest rate charged by that surety company for a
21similar bond in the same classification of work that would be
22written for a business not owned by a minority, female, or
23person with a disability.
24    (4) Any Council member who has direct financial or personal
25interest in any measure pending before the Council shall
26disclose this fact to the Council and refrain from

 

 

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1participating in the determination upon such measure.
2    (5) The Secretary shall have the following duties and
3responsibilities:
4        (a) To be responsible for the day-to-day operation of
5    the Council.
6        (b) To serve as a coordinator for all of the State's
7    programs for businesses owned by minorities, females, and
8    persons with disabilities and as the information and
9    referral center for all State initiatives for businesses
10    owned by minorities, females, and persons with
11    disabilities.
12        (c) To establish an enforcement procedure whereby the
13    Council may recommend to the appropriate State legal
14    officer that the State exercise its legal remedies which
15    shall include (1) termination of the contract involved, (2)
16    prohibition of participation by the respondent in public
17    contracts for a period not to exceed one year, (3)
18    imposition of a penalty not to exceed any profit acquired
19    as a result of violation, or (4) any combination thereof.
20    Such procedures shall require prior approval by Council.
21        (d) To devise appropriate policies, regulations and
22    procedures for including participation by businesses owned
23    by minorities, females, and persons with disabilities as
24    prime contractors including, but not limited to, (i)
25    encouraging the inclusions of qualified businesses owned
26    by minorities, females, and persons with disabilities on

 

 

09900SB1334ham003- 24 -LRB099 10713 SXM 35931 a

1    solicitation lists, (ii) investigating the potential of
2    blanket bonding programs for small construction jobs,
3    (iii) investigating and making recommendations concerning
4    the use of the sheltered market process.
5        (e) To devise procedures for the waiver of the
6    participation goals in appropriate circumstances.
7        (f) To accept donations and, with the approval of the
8    Council or the Director of Central Management Services,
9    grants related to the purposes of this Act; to conduct
10    seminars related to the purpose of this Act and to charge
11    reasonable registration fees; and to sell directories,
12    vendor lists and other such information to interested
13    parties, except that forms necessary to become eligible for
14    the program shall be provided free of charge to a business
15    or individual applying for the program.
16(Source: P.A. 94-793, eff. 5-19-06.)
 
17    (30 ILCS 575/6)  (from Ch. 127, par. 132.606)
18    (Section scheduled to be repealed on June 30, 2016)
19    Sec. 6. Agency compliance plans. Each State agency and
20public institutions of higher education State university under
21the jurisdiction of this Act shall file with the Council an
22annual compliance plan which shall outline the goals of the
23State agency or public institutions of higher education State
24university for contracting with businesses owned by
25minorities, females, and persons with disabilities for the then

 

 

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1current fiscal year, the manner in which the agency intends to
2reach these goals and a timetable for reaching these goals. The
3Council shall review and approve the plan of each State agency
4and public institutions of higher education State university
5and may reject any plan that does not comply with this Act or
6any rules or regulations promulgated pursuant to this Act.
7    (a) The compliance plan shall also include, but not be
8limited to, (1) a policy statement, signed by the State agency
9or public institution of higher education State university
10head, expressing a commitment to encourage the use of
11businesses owned by minorities, females, and persons with
12disabilities, (2) the designation of the liaison officer
13provided for in Section 5 of this Act, (3) procedures to
14distribute to potential contractors and vendors the list of all
15businesses legitimately classified as businesses owned by
16minorities, females, and persons with disabilities and so
17certified under this Act, (4) procedures to set separate
18contract goals on specific prime contracts and purchase orders
19with subcontracting possibilities based upon the type of work
20or services and subcontractor availability, (5) procedures to
21assure that contractors and vendors make good faith efforts to
22meet contract goals, (6) procedures for contract goal
23exemption, modification and waiver, and (7) the delineation of
24separate contract goals for businesses owned by minorities,
25females, and persons with disabilities.
26    (b) Approval of the compliance plans shall include such

 

 

09900SB1334ham003- 26 -LRB099 10713 SXM 35931 a

1delegation of responsibilities to the requesting State agency
2or public institution of higher education State university as
3the Council deems necessary and appropriate to fulfill the
4purpose of this Act. Such responsibilities may include, but
5need not be limited to those outlined in subsections (1), (2)
6and (3) of Section 7 and paragraph (a) of Section 8.
7    (c) Each State agency and public institution of higher
8education State university under the jurisdiction of this Act
9shall file with the Council an annual report of its utilization
10of businesses owned by minorities, females, and persons with
11disabilities during the preceding fiscal year including lapse
12period spending and a mid-fiscal year report of its utilization
13to date for the then current fiscal year. The reports shall
14include a self-evaluation of the efforts of the State agency or
15public institution of higher education State university to meet
16its goals under the Act.
17    (d) Notwithstanding any provisions to the contrary in this
18Act, any State agency or public institution of higher education
19State university which administers a construction program, for
20which federal law or regulations establish standards and
21procedures for the utilization of minority, disadvantaged, and
22female-owned business, shall implement a disadvantaged
23business enterprise program to include minority, disadvantaged
24and female-owned businesses, using the federal standards and
25procedures for the establishment of goals and utilization
26procedures for the State-funded, as well as the federally

 

 

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1assisted, portions of the program. In such cases, these goals
2shall not exceed those established pursuant to the relevant
3federal statutes or regulations. Notwithstanding the
4provisions of Section 8b, the Illinois Department of
5Transportation is authorized to establish sheltered markets
6for the State-funded portions of the program consistent with
7federal law and regulations. Additionally, a compliance plan
8which is filed by such State agency or public institution of
9higher education State university pursuant to this Act, which
10incorporates equivalent terms and conditions of its
11federally-approved compliance plan, shall be deemed approved
12under this Act.
13(Source: P.A. 88-377; 88-597, eff. 8-28-94.)
 
14    (30 ILCS 575/6a)  (from Ch. 127, par. 132.606a)
15    (Section scheduled to be repealed on June 30, 2016)
16    Sec. 6a. Notice of contracts to Council. Except in case of
17emergency as defined in the Illinois Procurement Code
18Purchasing Act, or as authorized by rule promulgated by the
19Department of Central Management Services, each agency and
20public institution of higher education State university under
21the jurisdiction of this Act shall notify the Secretary of the
22Council of proposed contracts for professional and artistic
23services and provide the information in the form and detail as
24required by rule promulgated by the Department of Central
25Management Services. Notification may be made through direct

 

 

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1written communication to the Secretary to be received at least
214 days before execution of the contract (or the solicitation
3response date, if applicable) or by advertising in the official
4State newspaper for at least 3 days, the last of which must be
5at least 10 days after the first publication. The agency or
6public institution of higher education university must
7consider any vendor referred by the Secretary before execution
8of the contract. The provisions of this Section shall not apply
9to any State agency or public institution of higher education
10State university that has awarded contracts for professional
11and artistic services to businesses owned by minorities,
12females, and persons with disabilities totalling in the
13aggregate $40,000,000 $5,000,000 or more during the preceding
14fiscal year.
15(Source: P.A. 87-628; 88-377; 88-597, eff. 8-28-94.)
 
16    (30 ILCS 575/7)  (from Ch. 127, par. 132.607)
17    (Section scheduled to be repealed on June 30, 2016)
18    Sec. 7. Exemptions and waivers; publication of data.
19    (1) Individual contract exemptions. The Council, on its own
20initiative or at the request of the affected agency, public
21institution of higher education university, or recipient of a
22grant or loan of State funds of $250,000 or more complying with
23Section 45 of the State Finance Act, may permit an individual
24contract or contract package, (related contracts being bid or
25awarded simultaneously for the same project or improvements) be

 

 

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1made wholly or partially exempt from State contracting goals
2for businesses owned by minorities, females, and persons with
3disabilities prior to the advertisement for bids or
4solicitation of proposals whenever there has been a
5determination, reduced to writing and based on the best
6information available at the time of the determination, that
7there is an insufficient number of businesses owned by
8minorities, females, and persons with disabilities to ensure
9adequate competition and an expectation of reasonable prices on
10bids or proposals solicited for the individual contract or
11contract package in question.
12    (2) Class exemptions.
13        (a) Creation. The Council, on its own initiative or at
14    the request of the affected agency or public institution of
15    higher education university, may permit an entire class of
16    contracts be made exempt from State contracting goals for
17    businesses owned by minorities, females, and persons with
18    disabilities whenever there has been a determination,
19    reduced to writing and based on the best information
20    available at the time of the determination, that there is
21    an insufficient number of qualified businesses owned by
22    minorities, females, and persons with disabilities to
23    ensure adequate competition and an expectation of
24    reasonable prices on bids or proposals within that class.
25        (b) Limitation. Any such class exemption shall not be
26    permitted for a period of more than one year at a time.

 

 

09900SB1334ham003- 30 -LRB099 10713 SXM 35931 a

1    (3) Waivers. Where a particular contract requires a
2contractor to meet a goal established pursuant to this Act, the
3contractor shall have the right to request a waiver from such
4requirements. The Council shall grant the waiver where the
5contractor demonstrates that there has been made a good faith
6effort to comply with the goals for participation by businesses
7owned by minorities, females, and persons with disabilities.
8    (4) Conflict with other laws. In the event that any State
9contract, which otherwise would be subject to the provisions of
10this Act, is or becomes subject to federal laws or regulations
11which conflict with the provisions of this Act or actions of
12the State taken pursuant hereto, the provisions of the federal
13laws or regulations shall apply and the contract shall be
14interpreted and enforced accordingly.
15    (5) Each chief procurement officer, as defined in the
16Illinois Procurement Code, shall maintain on his or her
17official Internet website a database of waivers granted under
18this Section with respect to contracts under his or her
19jurisdiction. The database, which shall be updated
20periodically as necessary, shall be searchable by contractor
21name and by contracting State agency.
22    Each public notice required by law of the award of a State
23contract shall include for each bid submitted for that contract
24the following: (i) the bidder's name, (ii) the bid amount,
25(iii) the bid's percentage of disadvantaged business
26utilization plan, and (iv) the bid's percentage of business

 

 

09900SB1334ham003- 31 -LRB099 10713 SXM 35931 a

1enterprise program utilization plan.
2(Source: P.A. 96-1064, eff. 7-16-10.)
 
3    (30 ILCS 575/8)  (from Ch. 127, par. 132.608)
4    (Section scheduled to be repealed on June 30, 2016)
5    Sec. 8. Enforcement. The Council shall make such findings,
6recommendations and proposals to the Governor as are necessary
7and appropriate to enforce this Act. If, as a result of its
8monitoring activities, the Council determines that its goals
9and policies are not being met by any State agency or public
10institution of higher education State university, the Council
11may recommend any or all of the following actions:
12    (a) Establish enforcement procedures whereby the Council
13may recommend to the appropriate State agency, public
14institutions of higher education State university, or law
15enforcement officer that legal or administrative remedies be
16initiated for violations of contract provisions or rules issued
17hereunder or by a contracting State agency or public
18institutions of higher education State university. State
19agencies and public institutions of higher education State
20universities shall be authorized to adopt remedies for such
21violations which shall include (1) termination of the contract
22involved, (2) prohibition of participation of the respondents
23in public contracts for a period not to exceed one year, (3)
24imposition of a penalty not to exceed any profit acquired as a
25result of violation, or (4) any combination thereof.

 

 

09900SB1334ham003- 32 -LRB099 10713 SXM 35931 a

1    (b) If the Council concludes that a compliance plan
2submitted under Section 6 is unlikely to produce the
3participation goals for businesses owned by minorities,
4females, and persons with disabilities within the then current
5fiscal year, the Council may recommend that the State agency or
6public institution of higher education State university revise
7its plan to provide additional opportunities for participation
8by businesses owned by minorities, females, and persons with
9disabilities. Such recommended revisions may include, but
10shall not be limited to, the following:
11        (i) assurances of stronger and better focused
12    solicitation efforts to obtain more businesses owned by
13    minorities, females, and persons with disabilities as
14    potential sources of supply;
15        (ii) division of job or project requirements, when
16    economically feasible, into tasks or quantities to permit
17    participation of businesses owned by minorities, females,
18    and persons with disabilities;
19        (iii) elimination of extended experience or
20    capitalization requirements, when programmatically
21    feasible, to permit participation of businesses owned by
22    minorities, females, and persons with disabilities;
23        (iv) identification of specific proposed contracts as
24    particularly attractive or appropriate for participation
25    by businesses owned by minorities, females, and persons
26    with disabilities, such identification to result from and

 

 

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1    be coupled with the efforts of subparagraphs (i) through
2    (iii);
3        (v) implementation of those regulations established
4    for the use of the sheltered market process.
5(Source: P.A. 88-377; 88-597, eff. 8-28-94.)
 
6    (30 ILCS 575/8f)
7    (Section scheduled to be repealed on June 30, 2016)
8    Sec. 8f. Annual report. The Council shall file no later
9than March 1 of each year, an annual report that shall detail
10the level of achievement toward the goals specified in this Act
11over the 3 most recent fiscal years. The annual report shall
12include, but need not be limited to the following:
13        (1) a summary detailing expenditures State
14    appropriations subject to the goals, the actual goals
15    specified, and the goals attained by each State agency and
16    public institution of higher education State university;
17        (2) a summary of the number of contracts awarded and
18    the average contract amount by each State agency and public
19    institution of higher education State university;
20        (3) an analysis of the level of overall goal
21    achievement concerning purchases from minority businesses,
22    female-owned businesses, and businesses owned by persons
23    with disabilities;
24        (4) an analysis of the number of businesses owned by
25    minorities, females, and persons with disabilities that

 

 

09900SB1334ham003- 34 -LRB099 10713 SXM 35931 a

1    are certified under the program as well as the number of
2    those businesses that received State procurement
3    contracts; and
4        (5) a summary of the number of contracts awarded to
5    businesses with annual gross sales of less than $1,000,000;
6    of $1,000,000 or more, but less than $5,000,000; of
7    $5,000,000 or more, but less than $10,000,000; and of
8    $10,000,000 or more.
9(Source: P.A. 88-597, eff. 8-28-94.)
 
10    Section 10. The Illinois Pension Code is amended by
11changing Section 1-109.1 as follows:
 
12    (40 ILCS 5/1-109.1)  (from Ch. 108 1/2, par. 1-109.1)
13    Sec. 1-109.1. Allocation and delegation of fiduciary
14duties.
15    (1) Subject to the provisions of Section 22A-113 of this
16Code and subsections (2) and (3) of this Section, the board of
17trustees of a retirement system or pension fund established
18under this Code may:
19        (a) Appoint one or more investment managers as
20    fiduciaries to manage (including the power to acquire and
21    dispose of) any assets of the retirement system or pension
22    fund; and
23        (b) Allocate duties among themselves and designate
24    others as fiduciaries to carry out specific fiduciary

 

 

09900SB1334ham003- 35 -LRB099 10713 SXM 35931 a

1    activities other than the management of the assets of the
2    retirement system or pension fund.
3    (2) The board of trustees of a pension fund established
4under Article 5, 6, 8, 9, 10, 11, 12 or 17 of this Code may not
5transfer its investment authority, nor transfer the assets of
6the fund to any other person or entity for the purpose of
7consolidating or merging its assets and management with any
8other pension fund or public investment authority, unless the
9board resolution authorizing such transfer is submitted for
10approval to the contributors and pensioners of the fund at
11elections held not less than 30 days after the adoption of such
12resolution by the board, and such resolution is approved by a
13majority of the votes cast on the question in both the
14contributors election and the pensioners election. The
15election procedures and qualifications governing the election
16of trustees shall govern the submission of resolutions for
17approval under this paragraph, insofar as they may be made
18applicable.
19    (3) Pursuant to subsections (h) and (i) of Section 6 of
20Article VII of the Illinois Constitution, the investment
21authority of boards of trustees of retirement systems and
22pension funds established under this Code is declared to be a
23subject of exclusive State jurisdiction, and the concurrent
24exercise by a home rule unit of any power affecting such
25investment authority is hereby specifically denied and
26preempted.

 

 

09900SB1334ham003- 36 -LRB099 10713 SXM 35931 a

1    (4) For the purposes of this Code, "emerging investment
2manager" means a qualified investment adviser that manages an
3investment portfolio of at least $10,000,000 but less than
4$10,000,000,000 and is a "minority owned business", "female
5owned business" or "business owned by a person with a
6disability" as those terms are defined in the Business
7Enterprise for Minorities, Females, and Persons with
8Disabilities Act.
9    It is hereby declared to be the public policy of the State
10of Illinois to encourage the trustees of public employee
11retirement systems, pension funds, and investment boards to use
12emerging investment managers in managing their system's
13assets, encompassing all asset classes, and increase the
14racial, ethnic, and gender diversity of its fiduciaries, to the
15greatest extent feasible within the bounds of financial and
16fiduciary prudence, and to take affirmative steps to remove any
17barriers to the full participation in investment opportunities
18afforded by those retirement systems, pension funds, and
19investment boards.
20    On or before January 1, 2010, a retirement system, pension
21fund, or investment board subject to this Code, except those
22whose investments are restricted by Section 1-113.2 of this
23Code, shall adopt a policy that sets forth goals for
24utilization of emerging investment managers. This policy shall
25include quantifiable goals for the management of assets in
26specific asset classes by emerging investment managers. The

 

 

09900SB1334ham003- 37 -LRB099 10713 SXM 35931 a

1retirement system, pension fund, or investment board shall
2establish 3 separate goals for: (i) emerging investment
3managers that are minority owned businesses; (ii) emerging
4investment managers that are female owned businesses; and (iii)
5emerging investment managers that are businesses owned by a
6person with a disability. The goals established shall be based
7on the percentage of total dollar amount of investment service
8contracts let to minority owned businesses, female owned
9businesses, and businesses owned by a person with a disability,
10as those terms are defined in the Business Enterprise for
11Minorities, Females, and Persons with Disabilities Act. The
12retirement system, pension fund, or investment board shall
13annually review the goals established under this subsection.
14    If in any case an emerging investment manager meets the
15criteria established by a board for a specific search and meets
16the criteria established by a consultant for that search, then
17that emerging investment manager shall receive an invitation by
18the board of trustees, or an investment committee of the board
19of trustees, to present his or her firm for final consideration
20of a contract. In the case where multiple emerging investment
21managers meet the criteria of this Section, the staff may
22choose the most qualified firm or firms to present to the
23board.
24    The use of an emerging investment manager does not
25constitute a transfer of investment authority for the purposes
26of subsection (2) of this Section.

 

 

09900SB1334ham003- 38 -LRB099 10713 SXM 35931 a

1    (5) Each retirement system, pension fund, or investment
2board subject to this Code, except those whose investments are
3restricted by Section 1-113.2 of this Code, shall establish a
4policy that sets forth goals for increasing the racial, ethnic,
5and gender diversity of its fiduciaries, including its
6consultants and senior staff. Each system, fund, and investment
7board shall annually review the goals established under this
8subsection.
9    (6) On or before January 1, 2010, a retirement system,
10pension fund, or investment board subject to this Code, except
11those whose investments are restricted by Section 1-113.2 of
12this Code, shall adopt a policy that sets forth goals for
13utilization of businesses owned by minorities, females, and
14persons with disabilities for all contracts and services. The
15goals established shall be based on the percentage of total
16dollar amount of all contracts let to minority owned
17businesses, female owned businesses, and businesses owned by a
18person with a disability, as those terms are defined in the
19Business Enterprise for Minorities, Females, and Persons with
20Disabilities Act. The retirement system, pension fund, or
21investment board shall annually review the goals established
22under this subsection.
23    (7) On or before January 1, 2010, a retirement system,
24pension fund, or investment board subject to this Code, except
25those whose investments are restricted by Section 1-113.2 of
26this Code, shall adopt a policy that sets forth goals for

 

 

09900SB1334ham003- 39 -LRB099 10713 SXM 35931 a

1increasing the utilization of minority broker-dealers. For the
2purposes of this Code, "minority broker-dealer" means a
3qualified broker-dealer who meets the definition of "minority
4owned business", "female owned business", or "business owned by
5a person with a disability", as those terms are defined in the
6Business Enterprise for Minorities, Females, and Persons with
7Disabilities Act. The retirement system, pension fund, or
8investment board shall annually review the goals established
9under this Section.
10    (8) Each retirement system, pension fund, and investment
11board subject to this Code, except those whose investments are
12restricted by Section 1-113.2 of this Code, shall submit a
13report to the Governor and the General Assembly by January 1 of
14each year that includes the following: (i) the policy adopted
15under subsection (4) of this Section, including the names and
16addresses of the emerging investment managers used, percentage
17of the assets under the investment control of emerging
18investment managers for the 3 separate goals, and the actions
19it has undertaken to increase the use of emerging investment
20managers, including encouraging other investment managers to
21use emerging investment managers as subcontractors when the
22opportunity arises; (ii) the policy adopted under subsection
23(5) of this Section; (iii) the policy adopted under subsection
24(6) of this Section; (iv) the policy adopted under subsection
25(7) of this Section, including specific actions undertaken to
26increase the use of minority broker-dealers; and (v) the policy

 

 

09900SB1334ham003- 40 -LRB099 10713 SXM 35931 a

1adopted under subsection (9) of this Section.
2    (9) On or before February 1, 2015, a retirement system,
3pension fund, or investment board subject to this Code, except
4those whose investments are restricted by Section 1-113.2 of
5this Code, shall adopt a policy that sets forth goals for
6increasing the utilization of minority investment managers.
7For the purposes of this Code, "minority investment manager"
8means a qualified investment manager that manages an investment
9portfolio and meets the definition of "minority owned
10business", "female owned business", or "business owned by a
11person with a disability", as those terms are defined in the
12Business Enterprise for Minorities, Females, and Persons with
13Disabilities Act.
14    It is hereby declared to be the public policy of the State
15of Illinois to encourage the trustees of public employee
16retirement systems, pension funds, and investment boards to use
17minority investment managers in managing their systems'
18assets, encompassing all asset classes, and to increase the
19racial, ethnic, and gender diversity of their fiduciaries, to
20the greatest extent feasible within the bounds of financial and
21fiduciary prudence, and to take affirmative steps to remove any
22barriers to the full participation in investment opportunities
23afforded by those retirement systems, pension funds, and
24investment boards.
25    The retirement system, pension fund, or investment board
26shall establish 3 separate goals for: (i) minority investment

 

 

09900SB1334ham003- 41 -LRB099 10713 SXM 35931 a

1managers that are minority owned businesses; (ii) minority
2investment managers that are female owned businesses; and (iii)
3minority investment managers that are businesses owned by a
4person with a disability. The retirement system, pension fund,
5or investment board shall annually review the goals established
6under this Section.
7    If in any case a minority investment manager meets the
8criteria established by a board for a specific search and meets
9the criteria established by a consultant for that search, then
10that minority investment manager shall receive an invitation by
11the board of trustees, or an investment committee of the board
12of trustees, to present his or her firm for final consideration
13of a contract. In the case where multiple minority investment
14managers meet the criteria of this Section, the staff may
15choose the most qualified firm or firms to present to the
16board.
17    The use of a minority investment manager does not
18constitute a transfer of investment authority for the purposes
19of subsection (2) of this Section.
20    (10) Beginning January 1, 2016, it shall be the
21aspirational goal for a retirement system, pension fund, or
22investment board subject to this Code to use emerging
23investment managers for not less than 20% of the total funds
24under management. Furthermore, it shall be the aspirational
25goal that not less than 20% of investment advisors be
26minorities, females, and persons with disabilities as those

 

 

09900SB1334ham003- 42 -LRB099 10713 SXM 35931 a

1terms are defined in the Business Enterprise for Minorities,
2Females, and Persons with Disabilities Act. It shall be the
3aspirational goal to utilize businesses owned by minorities,
4females, and persons with disabilities for not less than 20% of
5contracts awarded for "information technology services",
6"accounting services", "insurance brokers", "architectural and
7engineering services", and "legal services" as those terms are
8defined in the Act.
9(Source: P.A. 98-1022, eff. 1-1-15.)
 
10    Section 99. Effective date. This Act takes effect upon
11becoming law.".