Full Text of HB3888 103rd General Assembly
HB3888 103RD GENERAL ASSEMBLY |
| | 103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024 HB3888 Introduced 2/17/2023, by Rep. Lilian Jiménez SYNOPSIS AS INTRODUCED: |
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Creates the Diversity in Not-for-Profit Act. Allows any State agency, county, or unit of local government of the State of Illinois that certifies entities under a disadvantaged business enterprise program to certify organizations 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 under the Act. Amends the Public Utilities Act. Provides that specified supplier diversity goal requirements under the Act apply to minority-led not-for-profit organizations, woman-led not-for-profit organizations, and not-for-profit organizations led by a person with a disability. Defines terms.
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| | A BILL FOR |
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| 1 | | AN ACT concerning State government.
| 2 | | Be it enacted by the People of the State of Illinois,
| 3 | | represented in the General Assembly:
| 4 | | Section 1. Short title. This Act may be cited as the | 5 | | Diversity in Not-for-Profit Act. | 6 | | Section 5. Definitions. As used in this Act:
| 7 | | "Board of directors" has the same meaning as provided | 8 | | under subsection (d) of Section 101.80 of the General Not For | 9 | | Profit Corporation Act of 1986. | 10 | | "Certification" means a determination that a | 11 | | not-for-profit organization meets the defined classifications | 12 | | of a "minority-led not-for-profit organization", a "woman-led | 13 | | not-for-profit organization", or a "not-for-profit | 14 | | organization led by a person with a disability".
| 15 | | "Key employees" means an employee of the organization who | 16 | | is: | 17 | | (1) the person who has ultimate responsibility for | 18 | | implementing the decisions of the board of directors or | 19 | | for supervising the management, administration, or | 20 | | operation of the organization; | 21 | | (2) the person who has ultimate responsibility for | 22 | | managing the organization's finances; or | 23 | | (3) the person who: |
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| 1 | | (A) has responsibilities, powers, or influence | 2 | | over the organization as a whole that is similar to the | 3 | | persons described in paragraphs (1) and (2); | 4 | | (B) manages a discrete segment or activity of the | 5 | | organizations that represents 25% or more of the | 6 | | activities, assets, income, or expenses of the | 7 | | organization, as compared to the organization as a | 8 | | whole, or has or shares authority to control or | 9 | | determine 25% or more of the organization's capital | 10 | | expenditures, operating budget, or compensation for | 11 | | employees; and | 12 | | (C) is one of the 5 highest compensated employees | 13 | | in the organization. | 14 | | "Minority-led not-for-profit organization" means an | 15 | | organization that is tax-exempt under Sections 501(c)(3) or | 16 | | 501(c)(4) of the Internal Revenue Code of 1986, has filed all | 17 | | required forms under the Solicitation for Charity Act, and for | 18 | | which:
| 19 | | (1) at least 51% of the members of the organization's | 20 | | board of directors are minority persons, or at least 51% | 21 | | of the members of the organization's board of directors | 22 | | and key employees are minority persons;
| 23 | | (2) the organization is regularly and actively engaged | 24 | | in the activity for which it is formed;
| 25 | | (3) the organization is not dependent upon or | 26 | | influenced by another non-eligible person or organization; |
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| 2 | | (4) the organization has not been established or | 3 | | reorganized for the specific purpose of obtaining a | 4 | | certification under this Act.
| 5 | | "Not-for-profit organization led by a person with a | 6 | | disability" means an organization that is tax-exempt under | 7 | | Sections 501(c)(3) or 501(c)(4) of the Internal Revenue Code | 8 | | of 1986, has filed all required forms under the Solicitation | 9 | | for Charity Act, and for which:
| 10 | | (1) at least 51% of the members of the organization's | 11 | | board of directors are persons with a disability, or at | 12 | | least 51% of the members of the organization's board of | 13 | | directors and key employees are persons with a disability;
| 14 | | (2) the organization is regularly and actively engaged | 15 | | in the activity for which it is formed;
| 16 | | (3) the organization is not dependent upon or | 17 | | influenced by another non-eligible person or organization; | 18 | | and
| 19 | | (4) the organization has not been established or | 20 | | reorganized for the specific purpose of obtaining a | 21 | | certification under this Act.
| 22 | | "Woman-led not-for-profit organization" means an | 23 | | organization that is tax-exempt under Sections 501(c)(3) or | 24 | | 501(c)(4) of the Internal Revenue Code of 1986, has filed all | 25 | | required forms under the Solicitation for Charity Act, and for | 26 | | which:
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| 1 | | (1) at least 51% of the members of the organization's | 2 | | board of directors are women, or at least 51% of the | 3 | | members of the organization's board of directors and key | 4 | | employees are women;
| 5 | | (2) the organization is regularly and actively engaged | 6 | | in the activity for which it is formed;
| 7 | | (3) the organization is not dependent upon or | 8 | | influenced by another non-eligible person or organization; | 9 | | and
| 10 | | (4) the organization has not been established or | 11 | | reorganized for the specific purpose of obtaining a | 12 | | certification under this Act.
| 13 | | Section 10. Certification.
| 14 | | (a) For the purpose of assuring that a not-for-profit | 15 | | organization taking advantage of this Act is legitimately | 16 | | classified as a minority-led not-for-profit organization, a | 17 | | woman-led not-for-profit organization, or a not-for-profit | 18 | | organization led by a person with a disability, any State | 19 | | agency, county, or unit of local government of the State of | 20 | | Illinois that, on the effective date of this Act, certifies | 21 | | entities under a disadvantaged business enterprise program | 22 | | created under (i) the Business Enterprise for Minorities, | 23 | | Women, and Persons with Disabilities Act, (ii) home rule | 24 | | authorization under the Illinois Constitution, or (iii) any | 25 | | similar statutory or home rule authorizations, may also |
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| 1 | | certify the organizations defined under this Act. Any such | 2 | | State agency, county, or unit of local government, if it | 3 | | elects to certify hereunder, shall also maintain a list of all | 4 | | not-for-profit organizations legitimately classified as a | 5 | | minority-led not-for-profit organization, a woman-led | 6 | | not-for-profit organization, or a not-for-profit organization | 7 | | led by a person with a disability. | 8 | | (b) When a not-for-profit organization's board of | 9 | | directors, or the board of directors together with key | 10 | | employees, consists of at least 51% of any combination of | 11 | | minority persons, women, or persons with disabilities, even | 12 | | though none of the 3 classes alone holds at least a 51% share, | 13 | | the 51% membership requirement for purposes of certification | 14 | | under this Act shall be considered met. The certification | 15 | | category for not-for-profit organizations shall be that of the | 16 | | class holding the largest share of positions on the board of | 17 | | directors, or on the board of directors together with key | 18 | | employees, of a not-for-profit organization. If 2 or more | 19 | | classes have an equal share of positions on the board of | 20 | | directors, or on the board of directors together with key | 21 | | employees, the certification category shall be determined by | 22 | | the not-for-profit organization.
| 23 | | Section 15. Rules. Any State agency that elects to certify | 24 | | organizations under this Act shall adopt rules necessary to | 25 | | implement and enforce the requirements of this Act. |
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| 1 | | Section 100. The Public Utilities Act is amended by | 2 | | changing Section 5-117 as follows: | 3 | | (220 ILCS 5/5-117) | 4 | | Sec. 5-117. Supplier diversity goals. | 5 | | (a) The public policy of this State is to collaboratively | 6 | | work with companies and not-for-profit organizations that | 7 | | serve Illinois residents to improve their supplier diversity | 8 | | in a non-antagonistic manner. | 9 | | (a-5) For the purposes of this Section, "minority-led
| 10 | | not-for-profit organization", "woman-led not-for-profit | 11 | | organization", and "not-for-profit organization led by a | 12 | | person with a disability" shall have the same meanings as | 13 | | provided under the Diversity in Not-for-Profit Act. | 14 | | (b) The Commission shall require all gas, electric, and | 15 | | water utilities with at least 100,000 customers under its | 16 | | authority to submit an annual report by April 15, 2015 and | 17 | | every April 15 thereafter, in a searchable Adobe PDF format, | 18 | | on all procurement goals and actual spending for female-owned, | 19 | | minority-owned, veteran-owned, person with a disability-owned, | 20 | | and small business enterprises , as well as minority-led | 21 | | not-for-profit organizations, woman-led not-for-profit | 22 | | organizations, and not-for-profit organizations led by a | 23 | | person with a disability, in the previous calendar year. These | 24 | | goals shall be expressed as a percentage of the total work |
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| 1 | | performed by the entity submitting the report, and the actual | 2 | | spending for all female-owned, minority-owned, veteran-owned, | 3 | | person with a disability-owned, and small business | 4 | | enterprises , as well as minority-led not-for-profit | 5 | | organizations, woman-led not-for-profit organizations, and | 6 | | not-for-profit organizations led by a person with a | 7 | | disability, shall also be expressed as a percentage of the | 8 | | total work performed by the entity submitting the report. | 9 | | (c) Each participating company in its annual report shall | 10 | | include the following information: | 11 | | (1) an explanation of the plan for the next year to | 12 | | increase participation; | 13 | | (2) an explanation of the plan to increase the goals; | 14 | | (3) the areas of procurement each company shall be | 15 | | actively seeking more participation in the next year; | 16 | | (3.5) a buying plan for the specific goods and | 17 | | services the company intends to buy in the next 6 to 18 | 18 | | months, that is either (i) organized by and reported at | 19 | | the level of each applicable North American Industry | 20 | | Classification System code, (ii) provided using a method, | 21 | | system, or description similar to the North American | 22 | | Industry Classification System, or (iii) provided using | 23 | | the major categories of goods and related services | 24 | | utilized in the company's procurement system, and | 25 | | including any procurement codes used by the company, to | 26 | | assist entrepreneurs and diverse companies to understand |
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| 1 | | upcoming opportunities to work with the company, however, | 2 | | a utility shall not be required to include | 3 | | commercially-sensitive data, nonpublic procurement | 4 | | information, or other information that could compromise a | 5 | | utility's ability to negotiate the most advantageous price | 6 | | or terms; | 7 | | (4) an outline of the plan to alert and encourage | 8 | | potential vendors in that area to seek business from the | 9 | | company; | 10 | | (5) an explanation of the challenges faced in finding | 11 | | quality vendors and offer any suggestions for what the | 12 | | Commission could do to be helpful to identify those | 13 | | vendors; | 14 | | (6) a list of the certifications the company | 15 | | recognizes; | 16 | | (7) the point of contact for any potential vendor who | 17 | | wishes to do business with the company and explain the | 18 | | process for a vendor to enroll with the company as a | 19 | | minority-owned, women-owned, or veteran-owned , or person | 20 | | with a disability-owned company , or a minority-led | 21 | | not-for-profit organization, a woman-led not-for-profit | 22 | | organization, or a not-for-profit organization led by a | 23 | | person with a disability ; and | 24 | | (8) any particular success stories to encourage other | 25 | | companies to emulate best practices. | 26 | | (d) Each annual report shall include as much |
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| 1 | | State-specific data as possible. If the submitting entity does | 2 | | not submit State-specific data, then the company shall include | 3 | | any national data it does have and explain why it could not | 4 | | submit State-specific data and how it intends to do so in | 5 | | future reports, if possible. | 6 | | (e) Each annual report shall include the rules, | 7 | | regulations, and definitions used for the procurement goals in | 8 | | the company's annual report. | 9 | | (f) The Commission and all participating entities shall | 10 | | hold an annual workshop open to the public in 2015 and every | 11 | | year thereafter on the state of supplier diversity to | 12 | | collaboratively seek solutions to structural impediments to | 13 | | achieving stated goals, including testimony from each | 14 | | participating entity as well as subject matter experts and | 15 | | advocates. The Commission shall publish a database on its | 16 | | website of the point of contact for each participating entity | 17 | | for supplier diversity, along with a list of certifications | 18 | | each company recognizes from the information submitted in each | 19 | | annual report. The Commission shall publish each annual report | 20 | | on its website and shall maintain each annual report for at | 21 | | least 5 years.
| 22 | | (Source: P.A. 102-558, eff. 8-20-21; 102-662, eff. 9-15-21; | 23 | | 102-673, eff. 11-30-21; 102-1031, eff. 5-27-22.)
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