Full Text of SB1334 99th General Assembly
SB1334ham003 99TH GENERAL ASSEMBLY | 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, | 3 | | by replacing everything after the enacting clause with the | 4 | | following:
| 5 | | "Section 5. The Business Enterprise for Minorities, | 6 | | Females, and Persons with
Disabilities Act is amended by | 7 | | changing Sections 2, 3, 4, 5, 6, 6a, 7, 8, and 8f and by adding | 8 | | Section 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| 10 | | (Section scheduled to be repealed on June 30, 2016) | 11 | | Sec. 2.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 | 13 | | have 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 | 4 | | combination of
minority persons, females, or persons with | 5 | | disabilities,
even though none of the 3 classes alone holds at | 6 | | least a 51% interest, the
ownership
requirement for purposes of | 7 | | this Act is considered to be met. The
certification category | 8 | | for the business is that of the class holding the
largest | 9 | | ownership
interest in the business. If 2 or more classes have | 10 | | equal ownership interests,
the certification category shall be | 11 | | determined by
the business concern .
| 12 | | (Source: P.A. 97-227, eff. 1-1-12; 97-396, eff. 1-1-12; 97-813, | 13 | | eff. 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 | 17 | | applied
to all State agencies and public institutions of higher | 18 | | education 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 | 24 | | than 20% of
the total dollar amount of State contracts, as |
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| 1 | | defined by the Secretary of
the Council and approved by the | 2 | | Council, shall be established as an aspirational a goal to
be | 3 | | awarded to businesses owned by minorities,
females, and persons | 4 | | with disabilities; provided, however, that
of the total amount | 5 | | of all
State contracts awarded to businesses owned by
| 6 | | minorities, females, and persons with disabilities pursuant to
| 7 | | this Section, contracts representing at least 11% shall be | 8 | | awarded to businesses owned by minorities, contracts | 9 | | representing at least 7% shall be awarded to female-owned | 10 | | businesses, and contracts representing at least 2% shall be | 11 | | awarded to businesses owned by persons with disabilities.
| 12 | | The above percentage relates to the total dollar amount of | 13 | | State
contracts during each State fiscal year, calculated by | 14 | | examining
independently each type of contract for each agency | 15 | | or public institutions of higher education university which
| 16 | | lets such contracts. Only that percentage of arrangements which | 17 | | represents the participation of businesses owned by
| 18 | | minorities, females, and persons with disabilities on such | 19 | | contracts shall
be included.
| 20 | | (b) In the case of State construction contracts, the | 21 | | provisions of
subsection (a) requiring a portion of State | 22 | | contracts to be awarded to
businesses owned and controlled by | 23 | | persons with
disabilities do not apply. The following | 24 | | aspirational goals are established for State construction | 25 | | contracts: not Not less
than 20% 10% of the total dollar amount | 26 | | of State construction contracts is
established as a goal to be |
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| 1 | | awarded to minority and female owned
businesses, and contracts | 2 | | representing 50% of the amount of all State
construction | 3 | | contracts awarded to minority and female owned businesses
shall | 4 | | be awarded to female owned businesses.
| 5 | | (c) In the case of all work undertaken by the University of | 6 | | Illinois related to the planning, organization, and staging of | 7 | | the games, the University of Illinois shall establish a goal of | 8 | | awarding not less than 25% of the annual dollar value of all | 9 | | contracts, purchase orders, and other agreements (collectively | 10 | | referred to as "the contracts") to minority-owned businesses or | 11 | | businesses owned by a person with a disability and 5% of the | 12 | | annual dollar value the contracts to female-owned businesses. | 13 | | For purposes of this subsection, the term "games" has the | 14 | | meaning set forth in the Olympic Games and Paralympic Games | 15 | | (2016) Law. | 16 | | (d) Within one year after April 28, 2009 (the effective | 17 | | date of Public Act 96-8), the Department of Central Management | 18 | | Services shall conduct a social scientific study that measures | 19 | | the impact of discrimination on minority and female business | 20 | | development in Illinois. Within 18 months after April 28, 2009 | 21 | | (the effective date of Public Act 96-8), the Department shall | 22 | | issue a report of its findings and any recommendations on | 23 | | whether to adjust the goals for minority and female | 24 | | participation established in this Act. Copies of this report | 25 | | and the social scientific study shall be filed with the | 26 | | Governor and the General Assembly. |
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| 1 | | (e) Notwithstanding any provision of law to the contrary | 2 | | and except as otherwise mandated by federal law or regulation, | 3 | | those who submit bids or proposals for State construction | 4 | | contracts subject to the provisions of this Act, whose bids or | 5 | | proposals are successful but that fail to meet the goals set | 6 | | forth in subsection (b) of this Section, shall be notified of | 7 | | that deficiency and shall be afforded a period not to exceed 30 | 8 | | days to cure that deficiency in the bid or proposal. The | 9 | | deficiency in the bid or proposal may only be cured by | 10 | | contracting with additional subcontractors who are owned by | 11 | | minorities, females, or, where applicable, persons with | 12 | | disabilities, but in no case shall an identified subcontractor | 13 | | with a certification made pursuant to this Act be terminated | 14 | | from the contract without the written consent of the State | 15 | | agency or public institution of higher education entering into | 16 | | the contract. Those who submit bids or proposals for State | 17 | | contracts shall not be given a period after the bid or proposal | 18 | | is submitted to cure deficiencies in the bid or proposal under | 19 | | this 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, | 21 | | eff. 8-25-09; 96-795, eff. 7-1-10 (see Section 5 of P.A. 96-793 | 22 | | for the effective date of changes made by P.A. 96-795); | 23 | | 96-1000, 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 | 2 | | State of Illinois to promote and encourage each State agency | 3 | | and public institution of higher education to use businesses | 4 | | owned by minorities, females, and persons with disabilities in | 5 | | the area of goods and services, including, but not limited to, | 6 | | insurance services, investment management services, | 7 | | information technology services, accounting services, | 8 | | architectural and engineering services, and legal services. | 9 | | Furthermore, each State agency and public institution of higher | 10 | | education shall utilize such firms to the greatest extent | 11 | | feasible within the bounds of financial and fiduciary prudence, | 12 | | and take affirmative steps to remove any barriers to the full | 13 | | participation of such firms in the procurement and contracting | 14 | | opportunities 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 | 2 | | education shall adopt policies that identify its plan and | 3 | | implementation procedures for increasing the use of service | 4 | | firms owned by minorities, females, and persons with | 5 | | disabilities. | 6 | | (4) Except as provided in subsection (5), the Council shall | 7 | | file no later than March 1 of each year an annual report to the | 8 | | Governor and the General Assembly. The report filed with the | 9 | | General Assembly shall be filed as required in Section 3.1 of | 10 | | the General Assembly Organization Act. This report shall: (i) | 11 | | identify the services firms used by each State agency and | 12 | | public institution of higher education, (ii) identify the | 13 | | actions it has undertaken to increase the use of service firms | 14 | | owned by minorities, females, and persons with disabilities, | 15 | | including encouraging non-minority owned firms to use other | 16 | | service firms owned by minorities, females, and persons with | 17 | | disabilities as subcontractors when the opportunities arise, | 18 | | (iii) state any recommendations made by the Council to each | 19 | | State agency and public institution of higher education to | 20 | | increase participation by the use of service firms owned by | 21 | | minorities, females, and persons with disabilities, and (iv) | 22 | | include 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 | 7 | | Enterprise Council shall only report the following information | 8 | | for each community college district: (i) the name of the | 9 | | community colleges in the district, (ii) the name and contact | 10 | | information of a person at each community college appointed to | 11 | | be the single point of contact for vendors owned by minorities, | 12 | | females, or persons with disabilities, (iii) the policy of the | 13 | | community college district concerning certified vendors, (iv) | 14 | | the certifications recognized by the community college | 15 | | district for determining whether a business is owned or | 16 | | controlled by a minority, female, or person with a disability, | 17 | | (v) outreach efforts conducted by the community college | 18 | | district to increase the use of certified vendors, (vi) the | 19 | | total expenditures by the community college district in the | 20 | | prior fiscal year in the divisions of work specified in | 21 | | paragraphs (a), (b), and (c) of subsection (1) of this Section | 22 | | and the amount paid to certified vendors in those divisions of | 23 | | work, and (vii) the total number contracts entered into for the | 24 | | divisions of work specified in paragraphs (a), (b), and (c) of | 25 | | subsection (1) of this Section and the total number of | 26 | | contracts awarded to certified vendors providing these |
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| 1 | | services to the community college district. The Business | 2 | | Enterprise Council shall not make any utilization reports under | 3 | | this Act for community college districts for Fiscal Year 2015 | 4 | | and Fiscal Year 2016, but shall make the report required by | 5 | | this subsection for Fiscal Year 2017 and for each fiscal year | 6 | | thereafter. The Business Enterprise Council shall report the | 7 | | information in items (i), (ii), (iii), and (iv) of this | 8 | | subsection beginning in September of 2016. The Business | 9 | | Enterprise Council may collect the data needed to make its | 10 | | report from the Illinois Community College Board. | 11 | | (6) The status of the utilization of services shall be | 12 | | discussed at each of the regularly scheduled Business | 13 | | Enterprise Council meetings. Time shall be allotted for the | 14 | | Council to receive, review, and discuss the progress of the use | 15 | | of service firms owned by minorities, females, and persons with | 16 | | disabilities by each State agency and public institutions of | 17 | | higher education; and any evidence regarding past or present | 18 | | racial, ethnic, or gender-based discrimination which directly | 19 | | impacts State agency or public institutions of higher education | 20 | | contracting with such firms. If after reviewing such evidence | 21 | | the Council finds that there is or has been such discrimination | 22 | | against a specific group, race or sex, the Council shall | 23 | | establish sheltered markets or adjust existing sheltered | 24 | | markets tailored to address the Council's specific findings for | 25 | | the divisions of work specified in paragraphs (a), (b), and (c) | 26 | | of 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 | 5 | | this Act, there
is created the Business Enterprise Council for
| 6 | | Minorities, Females, and Persons with Disabilities, | 7 | | hereinafter
referred to as the Council, composed of the | 8 | | Secretary of Human Services and
the Directors of the Department | 9 | | of
Human Rights, the Department of Commerce and Economic | 10 | | Opportunity, the
Department of Central Management Services, | 11 | | the Department of Transportation and
the
Capital Development | 12 | | Board, or their duly appointed representatives. Ten
| 13 | | individuals representing businesses that are minority or | 14 | | female owned or
owned by persons with disabilities, 2 | 15 | | individuals representing the business
community, and a | 16 | | representative of public institutions of higher education | 17 | | public
universities shall be appointed by the Governor. These | 18 | | members shall serve 2
year terms and shall be eligible for | 19 | | reappointment. Any vacancy occurring on
the Council shall also | 20 | | be filled by the Governor. Any member appointed to fill
a | 21 | | vacancy occurring prior to the expiration of the term for which | 22 | | his
predecessor was appointed shall be appointed for the | 23 | | remainder of such term.
Members of the Council shall serve | 24 | | without compensation but shall be reimbursed
for any ordinary | 25 | | and necessary expenses incurred in the performance of their
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| 1 | | duties.
| 2 | | The Director of the Department of Central Management | 3 | | Services shall serve
as the Council chairperson and shall | 4 | | select, subject to approval of the
council, a Secretary | 5 | | responsible for the operation of the program who shall
serve as | 6 | | the Division Manager of the Business
Enterprise for Minorities, | 7 | | Females, and Persons with Disabilities Division
of the | 8 | | Department of Central Management Services.
| 9 | | The Director of each State agency and the chief executive | 10 | | officer of
each public institutions of higher education State | 11 | | university shall appoint a liaison to the Council. The liaison
| 12 | | shall be responsible for submitting to the Council any reports | 13 | | and
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 | 18 | | required of a business owned by a minority, female, or person
| 19 | | with a disability bidding for a State contract shall be
higher | 20 | | than the lowest rate charged by that surety company for a | 21 | | similar
bond in the same classification of work that would be | 22 | | written for a business not owned by a minority,
female, or | 23 | | person with a disability.
| 24 | | (4) Any Council member who has direct financial or personal | 25 | | interest in
any measure pending before the Council shall | 26 | | disclose this fact to the
Council and refrain from |
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| 1 | | participating in the determination upon such measure.
| 2 | | (5) The Secretary shall have the following duties and | 3 | | responsibilities:
| 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 |
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| 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 | 20 | | public institutions of higher education State university
under | 21 | | the
jurisdiction of this Act
shall file
with the Council an | 22 | | annual compliance plan which shall outline the
goals of the | 23 | | State agency or public institutions of higher education State
| 24 | | university for contracting with businesses owned by | 25 | | minorities, females, and
persons with disabilities for the then |
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| 1 | | current fiscal
year, the manner in which the agency intends to | 2 | | reach these goals and a
timetable for reaching these goals. The | 3 | | Council shall review and approve
the plan of each State agency | 4 | | and public institutions of higher education State university | 5 | | and may reject any
plan that does
not comply with
this Act or | 6 | | any rules or regulations promulgated pursuant to this Act.
| 7 | | (a) The compliance plan shall also include, but not be | 8 | | limited to, (1) a
policy statement, signed by the State agency | 9 | | or public institution of higher education State university | 10 | | head,
expressing a
commitment to
encourage the use of
| 11 | | businesses owned by
minorities, females, and persons with | 12 | | disabilities, (2) the designation of
the liaison
officer
| 13 | | provided for in Section 5 of this Act, (3) procedures to | 14 | | distribute to
potential contractors and vendors the list of all | 15 | | businesses legitimately classified as businesses owned by
| 16 | | minorities, females, and persons with disabilities and so | 17 | | certified under
this Act, (4) procedures to set
separate | 18 | | contract goals on specific prime contracts and purchase orders
| 19 | | with subcontracting possibilities based upon the type of work | 20 | | or services
and subcontractor availability, (5) procedures to | 21 | | assure that contractors
and vendors make good faith efforts to | 22 | | meet contract goals, (6) procedures
for contract goal | 23 | | exemption, modification and waiver, and (7) the delineation
of | 24 | | separate contract goals for businesses owned by minorities, | 25 | | females, and persons with
disabilities.
| 26 | | (b) Approval of the compliance plans shall include such |
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| 1 | | delegation of
responsibilities to the requesting State agency | 2 | | or public institution of higher education State university as
| 3 | | the Council
deems necessary
and appropriate to fulfill the | 4 | | purpose of this Act. Such responsibilities
may include, but | 5 | | need not be limited to those outlined in subsections (1),
(2) | 6 | | and (3) of Section 7 and paragraph (a) of Section 8.
| 7 | | (c) Each State agency and public institution of higher | 8 | | education State university under the jurisdiction of
this Act
| 9 | | shall
file with the Council an annual report of its utilization | 10 | | of businesses owned
by minorities, females, and persons with | 11 | | disabilities during the preceding fiscal year including lapse | 12 | | period spending
and a mid-fiscal year report of its utilization | 13 | | to date for the then current
fiscal year. The reports shall | 14 | | include a self-evaluation of the efforts of the
State agency or | 15 | | public institution of higher education State
university to meet | 16 | | its goals under the
Act.
| 17 | | (d) Notwithstanding any provisions to the contrary in this | 18 | | Act,
any State
agency or public institution of higher education | 19 | | State university which administers a construction program,
for | 20 | | which federal law or regulations establish standards and | 21 | | procedures for
the utilization of minority, disadvantaged, and | 22 | | female-owned business,
shall implement a disadvantaged | 23 | | business enterprise program to include
minority, disadvantaged | 24 | | and female-owned businesses, using
the federal
standards and | 25 | | procedures for the establishment of goals and
utilization | 26 | | procedures for the State-funded, as well as the federally
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| 1 | | assisted, portions of the program. In such cases, these goals | 2 | | shall not
exceed those established pursuant to the relevant | 3 | | federal statutes or
regulations.
Notwithstanding the | 4 | | provisions of Section 8b, the Illinois Department of
| 5 | | Transportation is authorized to establish sheltered markets | 6 | | for the
State-funded portions of the program consistent with | 7 | | federal law and
regulations.
Additionally, a compliance plan | 8 | | which is filed by such State
agency or public institution of | 9 | | higher education State university pursuant to this Act, which | 10 | | incorporates
equivalent terms and
conditions of its | 11 | | federally-approved compliance plan, shall be deemed
approved | 12 | | under 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 | 17 | | emergency as
defined in the Illinois Procurement Code
| 18 | | Purchasing Act , or as authorized by rule promulgated by the | 19 | | Department of
Central Management Services, each agency and | 20 | | public institution of higher education State university under | 21 | | the
jurisdiction of
this Act shall notify the Secretary of the
| 22 | | Council
of proposed contracts
for professional and artistic | 23 | | services and provide the information in the
form and detail as | 24 | | required by rule promulgated by the Department of Central
| 25 | | Management Services. Notification may be made through
direct |
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| 1 | | written communication to the Secretary to be received at least | 2 | | 14 days
before execution of the contract (or the solicitation | 3 | | response date, if
applicable) or by advertising in the
official | 4 | | State newspaper for at least 3 days, the last of which must be | 5 | | at
least 10 days after the first publication. The agency or | 6 | | public institution of higher education university must
| 7 | | consider any vendor referred by the Secretary before execution | 8 | | of the
contract. The provisions of this Section
shall not apply | 9 | | to any State agency or public institution of higher education | 10 | | State university that has awarded
contracts for
professional | 11 | | and artistic services to businesses
owned by minorities, | 12 | | females, and persons with disabilities
totalling in the | 13 | | aggregate $40,000,000 $5,000,000 or more during the preceding | 14 | | fiscal 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 | 20 | | initiative or at the request of the affected agency,
public | 21 | | institution of higher education university , or recipient of a | 22 | | grant or loan of State funds of $250,000 or more complying with | 23 | | Section 45 of the State Finance Act, may permit an individual | 24 | | contract or contract package,
(related contracts being bid or | 25 | | awarded simultaneously for the same project
or improvements) be |
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| 1 | | made wholly or partially exempt from State contracting
goals | 2 | | for businesses owned by
minorities, females, and persons with | 3 | | disabilities prior to the advertisement
for bids or | 4 | | solicitation of proposals whenever there has been a
| 5 | | determination, reduced to writing and based on the best | 6 | | information
available at the time of the determination, that | 7 | | there is an insufficient
number of businesses owned by | 8 | | minorities,
females, and persons with disabilities to ensure | 9 | | adequate
competition and an expectation of reasonable prices on | 10 | | bids or proposals
solicited for the individual contract or | 11 | | contract 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. |
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| 1 | | (3) Waivers. Where a particular contract requires a | 2 | | contractor to meet
a goal established pursuant to this Act, the | 3 | | contractor shall have the right
to request a waiver from such | 4 | | requirements. The Council shall grant the
waiver where the | 5 | | contractor demonstrates that there has been made a good
faith | 6 | | effort to comply with the goals for
participation by businesses | 7 | | owned by minorities, females, and persons with
disabilities. | 8 | | (4) Conflict with other laws. In the event that any State | 9 | | contract, which
otherwise would be subject to the provisions of | 10 | | this Act, is or becomes
subject to federal laws or regulations | 11 | | which conflict with the provisions
of this Act or actions of | 12 | | the State taken pursuant hereto, the provisions
of the federal | 13 | | laws or regulations shall apply and the contract shall be
| 14 | | interpreted and enforced accordingly. | 15 | | (5) Each chief procurement officer, as defined in the | 16 | | Illinois Procurement Code, shall maintain on his or her | 17 | | official Internet website a database of waivers granted under | 18 | | this Section with respect to contracts under his or her | 19 | | jurisdiction. The database, which shall be updated | 20 | | periodically as necessary, shall be searchable by contractor | 21 | | name and by contracting State agency. | 22 | | Each public notice required by law of the award of a State | 23 | | contract shall include for each bid submitted for that contract | 24 | | the following: (i) the bidder's name, (ii) the bid amount, | 25 | | (iii) the bid's percentage of disadvantaged business | 26 | | utilization plan, and (iv) the bid's percentage of business |
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| 1 | | enterprise 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, | 6 | | recommendations
and proposals to the Governor as are necessary | 7 | | and appropriate to enforce
this Act. If, as a result of its | 8 | | monitoring activities, the Council determines
that its goals | 9 | | and policies are not being met by any State agency or public | 10 | | institution of higher education
State university ,
the Council
| 11 | | may recommend any or all of the following actions:
| 12 | | (a) Establish enforcement procedures whereby the Council | 13 | | may recommend
to the appropriate State agency, public | 14 | | institutions of higher education State university , or law | 15 | | enforcement
officer that legal or
administrative remedies be | 16 | | initiated for violations of contract provisions
or rules issued | 17 | | hereunder or by a contracting State agency or public | 18 | | institutions of higher education State
university . State | 19 | | agencies and public institutions of higher education State | 20 | | universities
shall be authorized to adopt remedies for such | 21 | | violations which shall include
(1) termination of the contract | 22 | | involved, (2) prohibition of participation
of the respondents | 23 | | in public contracts for a period not to exceed one year,
(3) | 24 | | imposition of a penalty not to exceed any profit acquired as a | 25 | | result
of violation, or (4) any combination thereof.
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| 1 | | (b) If the Council concludes that a compliance plan | 2 | | submitted under Section
6 is unlikely to produce the
| 3 | | participation
goals for businesses owned by minorities, | 4 | | females, and persons with
disabilities within the then current | 5 | | fiscal year, the Council may recommend
that
the State agency or | 6 | | public institution of higher education State university revise | 7 | | its plan to provide
additional
opportunities
for participation | 8 | | by businesses owned by minorities,
females, and persons with | 9 | | disabilities. Such recommended revisions may
include, but | 10 | | shall 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 | 9 | | than March 1
of each year, an annual report that shall detail | 10 | | the level of achievement
toward the
goals specified in this Act | 11 | | over the 3 most recent fiscal years. The annual
report shall | 12 | | include, 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 |
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| 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 | 11 | | changing 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 | 14 | | duties.
| 15 | | (1) Subject to the provisions of Section 22A-113 of this | 16 | | Code and
subsections (2) and (3) of this Section, the board of | 17 | | trustees of a
retirement system or pension fund established | 18 | | under 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 |
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| 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 | 4 | | under Article 5, 6,
8, 9, 10, 11, 12 or 17 of this Code may not | 5 | | transfer its investment authority,
nor transfer the assets of | 6 | | the fund to any other person or entity for the
purpose of | 7 | | consolidating or merging its assets and management with any | 8 | | other
pension fund or public investment authority, unless the | 9 | | board resolution
authorizing such transfer is submitted for | 10 | | approval to the contributors and
pensioners of the fund at | 11 | | elections held not less than 30 days after the
adoption of such | 12 | | resolution by the board, and such resolution is approved by a
| 13 | | majority of the votes cast on the question in both the | 14 | | contributors election
and the pensioners election. The | 15 | | election procedures and qualifications
governing the election | 16 | | of trustees shall govern the submission of resolutions
for | 17 | | approval under this paragraph, insofar as they may be made | 18 | | applicable.
| 19 | | (3) Pursuant to subsections (h) and (i) of Section 6 of | 20 | | Article VII of
the Illinois Constitution, the investment | 21 | | authority of boards of trustees
of retirement systems and | 22 | | pension funds established under this Code is declared
to be a | 23 | | subject of exclusive State jurisdiction, and the concurrent | 24 | | exercise
by a home rule unit of any power affecting such | 25 | | investment authority is
hereby specifically denied and | 26 | | preempted.
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| 1 | | (4) For the purposes of this Code, "emerging investment | 2 | | manager" means a
qualified investment adviser that manages an | 3 | | investment portfolio of at
least $10,000,000 but less than | 4 | | $10,000,000,000 and is a
"minority owned business", "female | 5 | | owned business" or "business owned by a person with a | 6 | | disability" as those terms are
defined in the Business | 7 | | Enterprise for Minorities,
Females, and Persons with | 8 | | Disabilities Act.
| 9 | | It is hereby declared to be the public policy of the State | 10 | | of Illinois to
encourage the trustees of public employee | 11 | | retirement systems, pension funds, and investment boards
to use | 12 | | emerging investment managers in managing their system's | 13 | | assets, encompassing all asset classes, and increase the | 14 | | racial, ethnic, and gender diversity of its fiduciaries, to the
| 15 | | greatest extent feasible within the bounds of financial and | 16 | | fiduciary
prudence, and to take affirmative steps to remove any | 17 | | barriers to the full
participation in investment opportunities
| 18 | | afforded by those retirement systems, pension funds, and | 19 | | investment boards.
| 20 | | On or before January 1, 2010, a retirement system, pension | 21 | | fund, or investment board subject to this Code, except those | 22 | | whose investments are restricted by Section 1-113.2 of this | 23 | | Code, shall adopt a policy that sets forth goals for | 24 | | utilization of emerging investment managers. This policy shall | 25 | | include quantifiable goals for the management of assets in | 26 | | specific asset classes by emerging investment managers. The |
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| 1 | | retirement system, pension fund, or investment board shall | 2 | | establish 3 separate goals for: (i) emerging investment | 3 | | managers that are minority owned businesses; (ii) emerging | 4 | | investment managers that are female owned businesses; and (iii) | 5 | | emerging investment managers that are businesses owned by a | 6 | | person with a disability. The goals established shall be based | 7 | | on the percentage of total dollar amount of investment service | 8 | | contracts let to minority owned businesses, female owned | 9 | | businesses, and businesses owned by a person with a disability, | 10 | | as those terms are defined in the Business Enterprise for | 11 | | Minorities, Females, and Persons with Disabilities Act. The | 12 | | retirement system, pension fund, or investment board shall | 13 | | annually review the goals established under this subsection. | 14 | | If in any case an emerging investment manager meets the | 15 | | criteria established by a board for a specific search and meets | 16 | | the criteria established by a consultant for that search, then | 17 | | that emerging investment manager shall receive an invitation by | 18 | | the board of trustees, or an investment committee of the board | 19 | | of trustees, to present his or her firm for final consideration | 20 | | of a contract. In the case where multiple emerging investment | 21 | | managers meet the criteria of this Section, the staff may | 22 | | choose the most qualified firm or firms to present to the | 23 | | board.
| 24 | | The use of an emerging investment manager does not | 25 | | constitute a transfer
of investment authority for the purposes | 26 | | of subsection (2) of this Section.
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| 1 | | (5) Each retirement system, pension fund, or investment | 2 | | board subject to this Code, except those whose investments are | 3 | | restricted by Section 1-113.2 of this Code, shall establish a | 4 | | policy that sets forth goals for increasing the racial, ethnic, | 5 | | and gender diversity of its fiduciaries, including its | 6 | | consultants and senior staff. Each system, fund, and investment | 7 | | board shall annually review the goals established under this | 8 | | subsection. | 9 | | (6) On or before January 1, 2010, a retirement system, | 10 | | pension fund, or investment board subject to this Code, except | 11 | | those whose investments are restricted by Section 1-113.2 of | 12 | | this Code, shall adopt a policy that sets forth goals for | 13 | | utilization of businesses owned by minorities, females, and | 14 | | persons with disabilities for all contracts and services. The | 15 | | goals established shall be based on the percentage of total | 16 | | dollar amount of all contracts let to minority owned | 17 | | businesses, female owned businesses, and businesses owned by a | 18 | | person with a disability, as those terms are defined in the | 19 | | Business Enterprise for Minorities, Females, and Persons with | 20 | | Disabilities Act. The retirement system, pension fund, or | 21 | | investment board shall annually review the goals established | 22 | | under this subsection. | 23 | | (7) On or before January 1, 2010, a retirement system, | 24 | | pension fund, or investment board subject to this Code, except | 25 | | those whose investments are restricted by Section 1-113.2 of | 26 | | this Code, shall adopt a policy that sets forth goals for |
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| 1 | | increasing the utilization of minority broker-dealers. For the | 2 | | purposes of this Code, "minority broker-dealer" means a | 3 | | qualified broker-dealer who meets the definition of "minority | 4 | | owned business", "female owned business", or "business owned by | 5 | | a person with a disability", as those terms are defined in the | 6 | | Business Enterprise for Minorities, Females, and Persons with | 7 | | Disabilities Act. The retirement system, pension fund, or | 8 | | investment board shall annually review the goals established | 9 | | under this Section. | 10 | | (8) Each retirement system, pension fund, and investment | 11 | | board subject to this Code, except those whose investments are | 12 | | restricted by Section 1-113.2 of this Code, shall submit a | 13 | | report to the Governor and the General Assembly by January 1 of | 14 | | each year that includes the following: (i) the policy adopted | 15 | | under subsection (4) of this Section, including the names and | 16 | | addresses of the emerging investment managers used, percentage | 17 | | of the assets under the investment control of emerging | 18 | | investment managers for the 3 separate goals, and the actions | 19 | | it has undertaken to increase the use of emerging investment | 20 | | managers, including encouraging other investment managers to | 21 | | use emerging investment managers as subcontractors when the | 22 | | opportunity 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 | 26 | | increase the use of minority broker-dealers; and (v) the policy |
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| 1 | | adopted under subsection (9) of this Section. | 2 | | (9) On or before February 1, 2015, a retirement system, | 3 | | pension fund, or investment board subject to this Code, except | 4 | | those whose investments are restricted by Section 1-113.2 of | 5 | | this Code, shall adopt a policy that sets forth goals for | 6 | | increasing the utilization of minority investment managers. | 7 | | For the purposes of this Code, "minority investment manager" | 8 | | means a qualified investment manager that manages an investment | 9 | | portfolio and meets the definition of "minority owned | 10 | | business", "female owned business", or "business owned by a | 11 | | person with a disability", as those terms are defined in the | 12 | | Business Enterprise for Minorities, Females, and Persons with | 13 | | Disabilities Act. | 14 | | It is hereby declared to be the public policy of the State | 15 | | of Illinois to
encourage the trustees of public employee | 16 | | retirement systems, pension funds, and investment boards
to use | 17 | | minority investment managers in managing their systems' | 18 | | assets, encompassing all asset classes, and to increase the | 19 | | racial, ethnic, and gender diversity of their fiduciaries, to | 20 | | the
greatest extent feasible within the bounds of financial and | 21 | | fiduciary
prudence, and to take affirmative steps to remove any | 22 | | barriers to the full
participation in investment opportunities
| 23 | | afforded by those retirement systems, pension funds, and | 24 | | investment boards. | 25 | | The retirement system, pension fund, or investment board | 26 | | shall establish 3 separate goals for: (i) minority investment |
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| 1 | | managers that are minority owned businesses; (ii) minority | 2 | | investment managers that are female owned businesses; and (iii) | 3 | | minority investment managers that are businesses owned by a | 4 | | person with a disability. The retirement system, pension fund, | 5 | | or investment board shall annually review the goals established | 6 | | under this Section. | 7 | | If in any case a minority investment manager meets the | 8 | | criteria established by a board for a specific search and meets | 9 | | the criteria established by a consultant for that search, then | 10 | | that minority investment manager shall receive an invitation by | 11 | | the board of trustees, or an investment committee of the board | 12 | | of trustees, to present his or her firm for final consideration | 13 | | of a contract. In the case where multiple minority investment | 14 | | managers meet the criteria of this Section, the staff may | 15 | | choose the most qualified firm or firms to present to the | 16 | | board. | 17 | | The use of a minority investment manager does not | 18 | | constitute a transfer
of investment authority for the purposes | 19 | | of subsection (2) of this Section. | 20 | | (10) Beginning January 1, 2016, it shall be the | 21 | | aspirational goal for a retirement system, pension fund, or | 22 | | investment board subject to this Code to use emerging | 23 | | investment managers for not less than 20% of the total funds | 24 | | under management. Furthermore, it shall be the aspirational | 25 | | goal that not less than 20% of investment advisors be | 26 | | minorities, females, and persons with disabilities as those |
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| 1 | | terms are defined in the Business Enterprise for Minorities, | 2 | | Females, and Persons with Disabilities Act. It shall be the | 3 | | aspirational goal to utilize businesses owned by minorities, | 4 | | females, and persons with disabilities for not less than 20% of | 5 | | contracts awarded for "information technology services", | 6 | | "accounting services", "insurance brokers", "architectural and | 7 | | engineering services", and "legal services" as those terms are | 8 | | defined in the Act. | 9 | | (Source: P.A. 98-1022, eff. 1-1-15 .)
| 10 | | Section 99. Effective date. This Act takes effect upon | 11 | | becoming law.".
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