HB0721eng 102ND GENERAL ASSEMBLY

HB0721 Engrossed LRB102 04028 RJF 14044 b

AN ACT concerning finance.

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

Section 1. Short title. This Act may be cited as the Diversity in Not-for-Profit Act.

Section 5. Definitions. As used in this Act:

"Board of directors" has the same meaning as provided under subsection (d) of Section 101.80 of the General Not For Profit Corporation Act of 1986.

"Certification" means a determination that a not-for-profit organization meets the defined classifications of a "minority-led not-for-profit organization", a "woman-led not-for-profit organization", or a "not-for-profit organization led by a person with a disability".

"Key employees" means an employee of the organization who is:

(1) the person who has ultimate responsibility for implementing the decisions of the board of directors or for supervising the management, administration, or operation of the organization;

(2) the person who has ultimate responsibility for managing the organization's finances; or

(3) the person who:

(A) has responsibilities, powers, or influence over the organization as a whole that is similar to the persons described in paragraphs (1) and (2);

(B) manages a discrete segment or activity of the organizations that represents 25% or more of the activities, assets, income, or expenses of the organization, as compared to the organization as a whole, or has or shares authority to control or determine 25% or more of the organization's capital expenditures, operating budget, or compensation for employees; and

(C) is one of the 5 highest compensated employees in the organization.

"Minority-led not-for-profit organization" means an organization that is tax-exempt under Sections 501(c)(3) or 501(c)(4) of the Internal Revenue Code of 1986, has filed all required forms under the Solicitation for Charity Act, and for which:

(1) at least 51% of the members of the organization's board of directors are minority persons, or at least 51% of the members of the organization's board of directors and key employees are minority persons;

(2) the organization is regularly and actively engaged in the activity for which it is formed;

(3) the organization is not dependent upon or influenced by another non-eligible person or organization; and

(4) the organization has not been established or reorganized for the specific purpose of obtaining a certification under this Act.

"Not-for-profit organization led by a person with a disability" means an organization that is tax-exempt under Sections 501(c)(3) or 501(c)(4) of the Internal Revenue Code of 1986, has filed all required forms under the Solicitation for Charity Act, and for which:

(1) at least 51% of the members of the organization's board of directors are persons with a disability, or at least 51% of the members of the organization's board of directors and key employees are persons with a disability;

(2) the organization is regularly and actively engaged in the activity for which it is formed;

(3) the organization is not dependent upon or influenced by another non-eligible person or organization; and

(4) the organization has not been established or reorganized for the specific purpose of obtaining a certification under this Act.

"Woman-led not-for-profit organization" means an organization that is tax-exempt under Sections 501(c)(3) or 501(c)(4) of the Internal Revenue Code of 1986, has filed all required forms under the Solicitation for Charity Act, and for which:

(1) at least 51% of the members of the organization's board of directors are women, or at least 51% of the members of the organization's board of directors and key employees are women;

(2) the organization is regularly and actively engaged in the activity for which it is formed;

(3) the organization is not dependent upon or influenced by another non-eligible person or organization; and

(4) the organization has not been established or reorganized for the specific purpose of obtaining a certification under this Act.

Section 10. Certification.

(a) For the purpose of assuring that a not-for-profit organization taking advantage of this Act is legitimately classified as a minority-led not-for-profit organization, a woman-led not-for-profit organization, or a not-for-profit organization led by a person with a disability, any State agency, county, or unit of local government of the State of Illinois that, on the effective date of this Act, certifies entities under a disadvantaged business enterprise program created under (i) the Business Enterprise for Minorities, Women, and Persons with Disabilities Act, (ii) home rule authorization under the Illinois Constitution, or (iii) any similar statutory or home rule authorizations, may also certify the organizations defined under this Act. Any such State agency, county, or unit of local government, if it elects to certify hereunder, shall also maintain a list of all not-for-profit organizations legitimately classified as a minority-led not-for-profit organization, a woman-led not-for-profit organization, or a not-for-profit organization led by a person with a disability.

(b) When a not-for-profit organization's board of directors, or the board of directors together with key employees, consists of at least 51% of any combination of minority persons, women, or persons with disabilities, even though none of the 3 classes alone holds at least a 51% share, the 51% membership requirement for purposes of certification under this Act shall be considered met. The certification category for not-for-profit organizations shall be that of the class holding the largest share of positions on the board of directors, or on the board of directors together with key employees, of a not-for-profit organization. If 2 or more classes have an equal share of positions on the board of directors, or on the board of directors together with key employees, the certification category shall be determined by the not-for-profit organization.

Section 15. Rules. Any State agency that elects to certify organizations under this Act shall adopt rules necessary to implement and enforce the requirements of this Act.

Section 100. The Public Utilities Act is amended by changing Section 5-117 as follows:

(220 ILCS 5/5-117)

Sec. 5-117. Supplier diversity goals.

(a) The public policy of this State is to collaboratively work with companies and not-for-profit organizations that serve Illinois residents to improve their supplier diversity in a non-antagonistic manner.

(a-5) For the purposes of this Section, "minority-led not-for-profit organization", "woman-led not-for-profit organization", and "not-for-profit organization led by a person with a disability" shall have the same meanings as provided under the Diversity in Not-for-Profit Act.

(b) The Commission shall require all gas, electric, and water companies with at least 100,000 customers under its authority, as well as suppliers of wind energy, solar energy, hydroelectricity, nuclear energy, and any other supplier of energy within this State, to submit an annual report by April 15, 2015 and every April 15 thereafter, in a searchable Adobe PDF format, on all procurement goals and actual spending for female-owned, minority-owned, veteran-owned, person with a disability-owned, and small business enterprises, as well as minority-led not-for-profit organizations, woman-led not-for-profit organizations, and not-for-profit organizations led by a person with a disability, in the previous calendar year. These goals shall be expressed as a percentage of the total work performed by the entity submitting the report, and the actual spending for all female-owned, minority-owned, veteran-owned, person with a disability-owned, and small business enterprises, as well as minority-led not-for-profit organizations, woman-led not-for-profit organizations, and not-for-profit organizations led by a person with a disability, shall also be expressed as a percentage of the total work performed by the entity submitting the report.

(c) Each participating company in its annual report shall include the following information:

(1) an explanation of the plan for the next year to increase participation;

(2) an explanation of the plan to increase the goals;

(3) the areas of procurement each company shall be actively seeking more participation in in the next year;

(4) an outline of the plan to alert and encourage potential vendors in that area to seek business from the company;

(5) an explanation of the challenges faced in finding quality vendors and offer any suggestions for what the Commission could do to be helpful to identify those vendors;

(6) a list of the certifications the company recognizes;

(7) the point of contact for any potential vendor who wishes to do business with the company and explain the process for a vendor to enroll with the company as a minority-owned, women-owned, or veteran-owned, or person with a disability-owned company, or a minority-led not-for-profit organization, a woman-led not-for-profit organization, or a not-for-profit organization led by a person with a disability; and

(8) any particular success stories to encourage other companies to emulate best practices.

(d) Each annual report shall include as much State-specific data as possible. If the submitting entity does not submit State-specific data, then the company shall include any national data it does have and explain why it could not submit State-specific data and how it intends to do so in future reports, if possible.

(e) Each annual report shall include the rules, regulations, and definitions used for the procurement goals in the company's annual report.

(f) The Commission and all participating entities shall hold an annual workshop open to the public in 2015 and every year thereafter on the state of supplier diversity to collaboratively seek solutions to structural impediments to achieving stated goals, including testimony from each participating entity as well as subject matter experts and advocates. The Commission shall publish a database on its website of the point of contact for each participating entity for supplier diversity, along with a list of certifications each company recognizes from the information submitted in each annual report. The Commission shall publish each annual report on its website and shall maintain each annual report for at least 5 years.

(Source: P.A. 98-1056, eff. 8-26-14; 99-906, eff. 6-1-17; revised 7-22-19.)