Full Text of HB3720 103rd General Assembly
HB3720ham001 103RD GENERAL ASSEMBLY | Rep. Elizabeth "Lisa" Hernandez Filed: 3/21/2023
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| 1 | | AMENDMENT TO HOUSE BILL 3720
| 2 | | AMENDMENT NO. ______. Amend House Bill 3720 by replacing | 3 | | everything after the enacting clause with the following:
| 4 | | "Section 5. The Business Corporation Act of 1983 is | 5 | | amended by changing Section 8.12 as follows: | 6 | | (805 ILCS 5/8.12) | 7 | | Sec. 8.12. Female, minority, and LGBTQ directors. | 8 | | (a) Findings and purpose. The General Assembly finds that | 9 | | women, minorities, and LGBTQ people are still largely | 10 | | underrepresented nationally in positions of corporate | 11 | | authority, such as serving as a director on a corporation's | 12 | | board of directors. This low representation could be | 13 | | contributing to the disparity seen in wages made by females | 14 | | and minorities versus their white male counterparts. Increased | 15 | | representation of these individuals as directors on boards of | 16 | | directors for corporations may boost the Illinois economy, |
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| 1 | | improve opportunities for women, minorities, and LGBTQ people | 2 | | in the workplace, and foster an environment in Illinois where | 3 | | the business community is representative of our residents. | 4 | | Therefore, it is the intent of the General Assembly to gather | 5 | | more data and study this issue within the State so that | 6 | | effective policy changes may be implemented to eliminate this | 7 | | disparity. | 8 | | (b) As used in this Section: | 9 | | "Annual report" means the report submitted annually to the | 10 | | Secretary of State pursuant to this Act. | 11 | | "Female" means a person who is a citizen or
lawful | 12 | | permanent resident of the United States and who | 13 | | self-identifies as a woman, without regard to the individual's | 14 | | designated sex at birth. | 15 | | "Minority person" means a person who is a
citizen or | 16 | | lawful permanent resident of the United States and who is any | 17 | | of the following races or ethnicities: | 18 | | (1) American Indian or Alaska Native (a person
having | 19 | | origins in any of the original peoples of North and South | 20 | | America, including Central America, and who maintains | 21 | | tribal affiliation or community attachment). | 22 | | (2) Asian (a person having origins in any of the
| 23 | | original peoples of the Far East, Southeast Asia, or the | 24 | | Indian subcontinent, including, but not limited to, | 25 | | Cambodia, China, India, Japan, Korea, Malaysia, Pakistan, | 26 | | the Philippine Islands, Thailand, and Vietnam). |
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| 1 | | (3) Black or African American (a person having
origins | 2 | | in any of the black racial groups of Africa). Terms such as | 3 | | "Haitian" or "Negro" can be used in addition to "Black" or | 4 | | "African American". | 5 | | (4) Hispanic or Latino (a person of Cuban,
Mexican, | 6 | | Puerto Rican, South or Central American, or other Spanish | 7 | | culture or origin, regardless of race). | 8 | | (5) Native Hawaiian or Other Pacific Islander (a
| 9 | | person having origins in any of the original peoples of | 10 | | Hawaii, Guam, Samoa, or other Pacific Islands). | 11 | | (6) "Publicly held domestic or foreign corporation" | 12 | | means a corporation with outstanding shares listed on a | 13 | | major United States stock exchange. | 14 | | (c) Reporting to the Secretary of State. As soon as | 15 | | practical after August 27, 2019 (the effective date of Public | 16 | | Act 101-589), but no later than January 1, 2021, the following | 17 | | information shall be provided in a corporation's annual report | 18 | | submitted to the Secretary of State under this Act and made | 19 | | available by the Secretary of State to the public online as it | 20 | | is received: | 21 | | (1) Whether the corporation is a publicly held | 22 | | domestic or foreign corporation with its principal | 23 | | executive office located in Illinois. | 24 | | (2) Where the corporation is a publicly held domestic | 25 | | or foreign corporation with its principal executive office | 26 | | located in Illinois, data on specific qualifications, |
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| 1 | | skills, and experience that the corporation considers for | 2 | | its board of directors, nominees for the board of | 3 | | directors, and executive officers. | 4 | | (3) Where the corporation is a publicly held domestic | 5 | | or foreign corporation with its principal executive office | 6 | | located in Illinois, the self-identified gender of each | 7 | | member of its board of directors. | 8 | | (4) Where the corporation is a publicly held domestic | 9 | | or foreign corporation with its principal executive office | 10 | | located in Illinois, whether each member of its board of | 11 | | directors self-identifies as a minority person and, if so, | 12 | | which race or ethnicity to which the member belongs. | 13 | | (5) Where the corporation is a publicly held domestic | 14 | | or foreign corporation with its principal executive office | 15 | | located in Illinois, the self-identified sexual | 16 | | orientation of each member of its board of directors. | 17 | | (6) Where the corporation is a publicly held domestic | 18 | | or foreign corporation with its principal executive office | 19 | | located in Illinois, the self-identified gender identity | 20 | | of each member of its board of directors. | 21 | | (7) Where the corporation is a publicly held domestic | 22 | | or foreign corporation with its principal executive office | 23 | | located in Illinois, a description of the corporation's | 24 | | process for identifying and evaluating nominees for the | 25 | | board of directors, including whether and, if so, how | 26 | | demographic diversity is considered. |
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| 1 | | (8) Where the corporation is a publicly held domestic | 2 | | or foreign corporation with its principal executive office | 3 | | located in Illinois, a description of the corporation's | 4 | | process for identifying and appointing executive officers, | 5 | | including whether and, if so, how demographic diversity is | 6 | | considered. | 7 | | (9) Where the corporation is a publicly held domestic | 8 | | or foreign corporation with its principal executive office | 9 | | located in Illinois, a description of the corporation's | 10 | | policies and practices for promoting diversity, equity, | 11 | | and inclusion among its board of directors and executive | 12 | | officers. | 13 | | (10) Where the corporation is a publicly held domestic | 14 | | or foreign corporation with its principal executive office | 15 | | located in Illinois, the percentage of minority supplier | 16 | | procurements from business enterprises owned by minority | 17 | | persons, women, or persons with disabilities as those | 18 | | terms are defined in Section 2 of the Business Enterprise | 19 | | for Minorities, Women, and Persons with Disabilities Act. | 20 | | Information reported under this subsection shall be | 21 | | updated in each annual report filed with the Secretary of | 22 | | State thereafter. The Secretary of State shall establish a | 23 | | publicly accessible and searchable database of the information | 24 | | in each annual report. | 25 | | (d) Beginning no later than March 1, 2021, and every March | 26 | | 1 thereafter, the University of Illinois Systems shall review |
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| 1 | | the information reported and published under subsection (c) | 2 | | and shall publish on its website a report that provides | 3 | | aggregate data on the demographic characteristics of the | 4 | | boards of directors and executive officers of corporations | 5 | | filing an annual report for the preceding year along with an | 6 | | individualized rating for each corporation. The report shall | 7 | | also identify strategies for promoting diversity and inclusion | 8 | | among boards of directors and corporate executive officers. | 9 | | (e) The University of Illinois System shall establish a | 10 | | rating system assessing the representation of women, | 11 | | minorities, and LGBTQ people on corporate boards of directors | 12 | | of those corporations that are publicly held domestic or | 13 | | foreign corporations with their principal executive office | 14 | | located in Illinois based on the information gathered under | 15 | | this Section. The rating system shall consider, among other | 16 | | things: compliance with the demographic reporting obligations | 17 | | in subsection (c); the corporation's policies and practices | 18 | | for encouraging diversity in recruitment, board membership, | 19 | | and executive appointments; and the demographic diversity of | 20 | | board seats and executive positions.
| 21 | | (Source: P.A. 101-589, eff. 8-27-19; 102-223, eff. 1-1-22; | 22 | | 102-813, eff. 5-13-22.)".
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