Bill Amendment: IL HB0142 | 2019-2020 | 101st General Assembly

NOTE: For additional amemendments please see the Bill Drafting List

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Bill Title: FINANCE-TECH

Status: 2019-06-28 - Public Act . . . . . . . . . 101-0030 [HB0142 Detail]

Download: Illinois-2019-HB0142-House_Amendment_001.html

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Rep. Maurice A. West, II

Filed: 3/19/2019

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AMENDMENT TO HOUSE BILL 142
AMENDMENT NO. ______. Amend House Bill 142 by replacing
everything after the enacting clause with the following:
"Section 5. The Business Enterprise for Minorities, Women,
and Persons with Disabilities Act is amended by changing
Sections 2 and 4f as follows:
(30 ILCS 575/2)
(Section scheduled to be repealed on June 30, 2020)
Sec. 2. Definitions.
(A) For the purpose of this Act, the following terms shall
have the following definitions:
(1) "Minority person" shall mean a person who is a
citizen or lawful permanent resident of the United States
and who is any of the following:
(a) American Indian or Alaska Native (a person
having origins in any of the original peoples of North

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and South America, including Central America, and who
maintains tribal affiliation or community attachment).
(b) Asian (a person having origins in any of the
original peoples of the Far East, Southeast Asia, or
the Indian subcontinent, including, but not limited
to, Cambodia, China, India, Japan, Korea, Malaysia,
Pakistan, the Philippine Islands, Thailand, and
Vietnam).
(c) Black or African American (a person having
origins in any of the black racial groups of Africa).
Terms such as "Haitian" or "Negro" can be used in
addition to "Black or African American".
(d) Hispanic or Latino (a person of Cuban, Mexican,
Puerto Rican, South or Central American, or other
Spanish culture or origin, regardless of race).
(e) Native Hawaiian or Other Pacific Islander (a
person having origins in any of the original peoples of
Hawaii, Guam, Samoa, or other Pacific Islands).
(2) "Woman" shall mean a person who is a citizen or
lawful permanent resident of the United States and who is
of the female gender.
(2.05) "Person with a disability" means a person who is
a citizen or lawful resident of the United States and is a
person qualifying as a person with a disability under
subdivision (2.1) of this subsection (A).
(2.1) "Person with a disability" means a person with a

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severe physical or mental disability that:
(a) results from:
amputation,
arthritis,
autism,
blindness,
burn injury,
cancer,
cerebral palsy,
Crohn's disease,
cystic fibrosis,
deafness,
head injury,
heart disease,
hemiplegia,
hemophilia,
respiratory or pulmonary dysfunction,
an intellectual disability,
mental illness,
multiple sclerosis,
muscular dystrophy,
musculoskeletal disorders,
neurological disorders, including stroke and
epilepsy,
paraplegia,
quadriplegia and other spinal cord conditions,

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sickle cell anemia,
ulcerative colitis,
specific learning disabilities, or
end stage renal failure disease; and
(b) substantially limits one or more of the
person's major life activities.
Another disability or combination of disabilities may
also be considered as a severe disability for the purposes
of item (a) of this subdivision (2.1) if it is determined
by an evaluation of rehabilitation potential to cause a
comparable degree of substantial functional limitation
similar to the specific list of disabilities listed in item
(a) of this subdivision (2.1).
(3) "Minority-owned business" means a business which
is at least 51% owned by one or more minority persons, or
in the case of a corporation, at least 51% of the stock in
which is owned by one or more minority persons; and the
management and daily business operations of which are
controlled by one or more of the minority individuals who
own it.
(4) "Women-owned business" means a business which is at
least 51% owned by one or more women, or, in the case of a
corporation, at least 51% of the stock in which is owned by
one or more women; and the management and daily business
operations of which are controlled by one or more of the
women who own it.

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(4.1) "Business owned by a person with a disability"
means a business that is at least 51% owned by one or more
persons with a disability and the management and daily
business operations of which are controlled by one or more
of the persons with disabilities who own it. A
not-for-profit agency for persons with disabilities that
is exempt from taxation under Section 501 of the Internal
Revenue Code of 1986 is also considered a "business owned
by a person with a disability".
(4.2) "Council" means the Business Enterprise Council
for Minorities, Women, and Persons with Disabilities
created under Section 5 of this Act.
(5) "State contracts" means all contracts entered into
by the State, any agency or department thereof, or any
public institution of higher education, including
community college districts, regardless of the source of
the funds with which the contracts are paid, which are not
subject to federal reimbursement. "State contracts" does
not include contracts awarded by a retirement system,
pension fund, or investment board subject to Section
1-109.1 of the Illinois Pension Code. This definition shall
control over any existing definition under this Act or
applicable administrative rule.
"State construction contracts" means all State
contracts entered into by a State agency or public
institution of higher education for the repair,

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remodeling, renovation or construction of a building or
structure, or for the construction or maintenance of a
highway defined in Article 2 of the Illinois Highway Code.
(6) "State agencies" shall mean all departments,
officers, boards, commissions, institutions and bodies
politic and corporate of the State, but does not include
the Board of Trustees of the University of Illinois, the
Board of Trustees of Southern Illinois University, the
Board of Trustees of Chicago State University, the Board of
Trustees of Eastern Illinois University, the Board of
Trustees of Governors State University, the Board of
Trustees of Illinois State University, the Board of
Trustees of Northeastern Illinois University, the Board of
Trustees of Northern Illinois University, the Board of
Trustees of Western Illinois University, municipalities or
other local governmental units, or other State
constitutional officers.
(7) "Public institutions of higher education" means
the University of Illinois, Southern Illinois University,
Chicago State University, Eastern Illinois University,
Governors State University, Illinois State University,
Northeastern Illinois University, Northern Illinois
University, Western Illinois University, the public
community colleges of the State, and any other public
universities, colleges, and community colleges now or
hereafter established or authorized by the General

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Assembly.
(8) "Certification" means a determination made by the
Council or by one delegated authority from the Council to
make certifications, or by a State agency with statutory
authority to make such a certification, that a business
entity is a business owned by a minority, woman, or person
with a disability for whatever purpose. A business owned
and controlled by women shall be certified as a
"woman-owned business". A business owned and controlled by
women who are also minorities shall be certified as both a
"women-owned business" and a "minority-owned business".
(9) "Control" means the exclusive or ultimate and sole
control of the business including, but not limited to,
capital investment and all other financial matters,
property, acquisitions, contract negotiations, legal
matters, officer-director-employee selection and
comprehensive hiring, operating responsibilities,
cost-control matters, income and dividend matters,
financial transactions and rights of other shareholders or
joint partners. Control shall be real, substantial and
continuing, not pro forma. Control shall include the power
to direct or cause the direction of the management and
policies of the business and to make the day-to-day as well
as major decisions in matters of policy, management and
operations. Control shall be exemplified by possessing the
requisite knowledge and expertise to run the particular

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business and control shall not include simple majority or
absentee ownership.
(10) "Business" means a business that has annual gross
sales of less than $75,000,000 as evidenced by the federal
income tax return of the business. A firm with gross sales
in excess of this cap may apply to the Council for
certification for a particular contract if the firm can
demonstrate that the contract would have significant
impact on businesses owned by minorities, women, or persons
with disabilities as suppliers or subcontractors or in
employment of minorities, women, or persons with
disabilities.
(11) "Utilization plan" means a form and additional
documentations included in all bids or proposals that
demonstrates a vendor's proposed utilization of vendors
certified by the Business Enterprise Program to meet the
targeted goal. The utilization plan shall demonstrate that
the Vendor has either: (1) met the entire contract goal or
(2) requested a full or partial waiver and made good faith
efforts towards meeting the goal.
(12) "Business Enterprise Program" means the Business
Enterprise Program of the Department of Central Management
Services.
(B) When a business is owned at least 51% by any
combination of minority persons, women, or persons with
disabilities, even though none of the 3 classes alone holds at

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least a 51% interest, the ownership requirement for purposes of
this Act is considered to be met. The certification category
for the business is that of the class holding the largest
ownership interest in the business. If 2 or more classes have
equal ownership interests, the certification category shall be
determined by the business.
(Source: P.A. 99-143, eff. 7-27-15; 99-462, eff. 8-25-15;
99-642, eff. 7-28-16; 100-391, eff. 8-25-17.)
(30 ILCS 575/4f)
(Section scheduled to be repealed on June 30, 2020)
Sec. 4f. Award of State contracts.
(1) It is hereby declared to be the public policy of the
State of Illinois to promote and encourage each State agency
and public institution of higher education, including
community colleges, to use businesses owned by minorities,
women, and persons with disabilities in the area of goods and
services, including, but not limited to, insurance services,
investment management services, information technology
services, accounting services, architectural and engineering
services, and legal services. Furthermore, each State agency
and public institution of higher education, including
community colleges, shall utilize such firms to the greatest
extent feasible within the bounds of financial and fiduciary
prudence, and take affirmative steps to remove any barriers to
the full participation of such firms in the procurement and

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contracting opportunities afforded.
(a) When a State agency or public institution of higher
education, other than a community college, awards a
contract for insurance services, for each State agency or
public institution of higher education, it shall be the
aspirational goal to use insurance brokers owned by
minorities, women, and persons with disabilities as
defined by this Act, for not less than 20% of the total
annual premiums or fees.
(b) When a State agency or public institution of higher
education, other than a community college, awards a
contract for investment services, for each State agency or
public institution of higher education, it shall be the
aspirational goal to use emerging investment managers
owned by minorities, women, and persons with disabilities
as defined by this Act, for not less than 20% of the total
funds under management. Furthermore, it is the
aspirational goal that not less than 20% of the direct
asset managers of the State funds be minorities, women, and
persons with disabilities.
(c) When a State agency or public institution of higher
education, other than a community college, awards
contracts for information technology services, accounting
services, architectural and engineering services, and
legal services, for each State agency and public
institution of higher education, it shall be the

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aspirational goal to use such firms owned by minorities,
women, and persons with disabilities as defined by this Act
and lawyers who are minorities, women, and persons with
disabilities as defined by this Act, for not less than 20%
of the total dollar amount of State contracts.
(d) When a community college awards a contract for
insurance services, investment services, information
technology services, accounting services, architectural
and engineering services, and legal services, it shall be
the aspirational goal of each community college to use
businesses owned by minorities, women, and persons with
disabilities as defined in this Act for not less than 20%
of the total amount spent on contracts for these services
collectively. When a community college awards contracts
for investment services, contracts awarded to investment
managers who are not emerging investment managers as
defined in this Act shall not be considered businesses
owned by minorities, women, or persons with disabilities
for the purposes of this Section.
(e) When a community college awards a contract, it
shall be the aspirational goal of each community college to
use businesses owned by minorities, women, and persons with
disabilities, as defined in this Act, for not less than 20%
of the total dollar amount of all contracts entered into by
the community college district, regardless of the source of
the funds with which the contracts are paid, which are not

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subject to federal reimbursement.
The percentage specified in this subsection (e)
relates to the total dollar amount of contracts during each
fiscal year, calculated by examining independently each
type of contract for each community college which lets such
contracts. Only the percentage of arrangements which
represents the participation of businesses owned by
minorities, women, and persons with disabilities on such
contracts shall be included.
(f) When a community college awards construction
contracts, it shall be the aspirational goal of each
community college to use businesses owned by minorities and
women, as defined in this Act, for not less than 20% of the
total amount of construction contracts entered into by the
community college district, regardless of the source of the
funds for which the contracts are paid, which are not
subject to federal reimbursement. In the case of
construction contracts, the provisions of this Act
requiring a portion of the contracts awarded to businesses
owned and controlled by persons with disabilities do not
apply.
(2) As used in this Section:
"Accounting services" means the measurement,
processing and communication of financial information
about economic entities including, but is not limited to,
financial accounting, management accounting, auditing,

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cost containment and auditing services, taxation and
accounting information systems.
"Architectural and engineering services" means
professional services of an architectural or engineering
nature, or incidental services, that members of the
architectural and engineering professions, and individuals
in their employ, may logically or justifiably perform,
including studies, investigations, surveying and mapping,
tests, evaluations, consultations, comprehensive planning,
program management, conceptual designs, plans and
specifications, value engineering, construction phase
services, soils engineering, drawing reviews, preparation
of operating and maintenance manuals, and other related
services.
"Emerging investment manager" means an investment
manager or claims consultant having assets under
management below $10 billion or otherwise adjudicating
claims.
"Information technology services" means, but is not
limited to, specialized technology-oriented solutions by
combining the processes and functions of software,
hardware, networks, telecommunications, web designers,
cloud developing resellers, and electronics.
"Insurance broker" means an insurance brokerage firm,
claims administrator, or both, that procures, places all
lines of insurance, or administers claims with annual

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premiums or fees of at least $5,000,000 but not more than
$10,000,000.
"Legal services" means work performed by a lawyer
including, but not limited to, contracts in anticipation of
litigation, enforcement actions, or investigations.
(3) Each State agency and public institution of higher
education, including community colleges, shall adopt policies
that identify its plan and implementation procedures for
increasing the use of service firms owned by minorities, women,
and persons with disabilities.
(4) Except as provided in subsection (5), the Council shall
file no later than March 1 of each year an annual report to the
Governor and the General Assembly. The report filed with the
General Assembly shall be filed as required in Section 3.1 of
the General Assembly Organization Act. This report shall: (i)
identify the service firms used by each State agency and public
institution of higher education, (ii) identify the actions it
has undertaken to increase the use of service firms owned by
minorities, women, and persons with disabilities, including
encouraging non-minority-owned firms to use other service
firms owned by minorities, women, and persons with disabilities
as subcontractors when the opportunities arise, (iii) state any
recommendations made by the Council to each State agency and
public institution of higher education to increase
participation by the use of service firms owned by minorities,
women, and persons with disabilities, and (iv) include the

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following:
(A) For insurance services: the names of the insurance
brokers or claims consultants used, the total of risk
managed by each State agency and public institution of
higher education by insurance brokers, the total
commissions, fees paid, or both, the lines or insurance
policies placed, and the amount of premiums placed; and the
percentage of the risk managed by insurance brokers, the
percentage of total commission, fees paid, or both, the
lines or insurance policies placed, and the amount of
premiums placed with each by the insurance brokers owned by
minorities, women, and persons with disabilities by each
State agency and public institution of higher education.
(B) For investment management services: the names of
the investment managers used, the total funds under
management of investment managers; the total commissions,
fees paid, or both; the total and percentage of funds under
management of emerging investment managers owned by
minorities, women, and persons with disabilities,
including the total and percentage of total commissions,
fees paid, or both by each State agency and public
institution of higher education.
(C) The names of service firms, the percentage and
total dollar amount paid for professional services by
category by each State agency and public institution of
higher education.

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(D) The names of service firms, the percentage and
total dollar amount paid for services by category to firms
owned by minorities, women, and persons with disabilities
by each State agency and public institution of higher
education.
(E) The total number of contracts awarded for services
by category and the total number of contracts awarded to
firms owned by minorities, women, and persons with
disabilities by each State agency and public institution of
higher education.
(5) For community college districts, the Business
Enterprise Council shall only report the following information
for each community college district: (i) the name of the
community colleges in the district, (ii) the name and contact
information of a person at each community college appointed to
be the single point of contact for vendors owned by minorities,
women, or persons with disabilities, (iii) the policy of the
community college district concerning certified vendors, (iv)
the certifications recognized by the community college
district for determining whether a business is owned or
controlled by a minority, woman, or person with a disability,
(v) outreach efforts conducted by the community college
district to increase the use of certified vendors, (vi) the
total expenditures by the community college district in the
prior fiscal year in the divisions of work specified in
paragraphs (a), (b), and (c) of subsection (1) of this Section

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and the amount paid to certified vendors in those divisions of
work, and (vii) the total number of contracts entered into for
the divisions of work specified in paragraphs (a), (b), and (c)
of subsection (1) of this Section and the total number of
contracts awarded to certified vendors providing these
services to the community college district, (viii) the total
expenditures and the total number of contracts entered into by
the community college district in the prior fiscal year as
specified in paragraph (e) of subsection (1), and the amount
paid to certified vendors and the total number of contracts
awarded to vendors, and (ix) the total expenditures and the
total number of contracts entered into by the community college
district in the prior fiscal years as specified under paragraph
(f) of subsection (1), and the amount paid to certified vendors
and the total number of contracts awarded to certified venders.
The Business Enterprise Council shall not make any utilization
reports under this Act for community college districts for
Fiscal Year 2015 and Fiscal Year 2016, but shall make the
report required by this subsection for Fiscal Year 2017 and for
each fiscal year thereafter. The Business Enterprise Council
shall report the information in items (i), (ii), (iii), and
(iv) of this subsection beginning in September of 2016. The
Business Enterprise Council shall may collect the data needed
to make its report from the Illinois Community College Board.
(6) The status of the utilization of services shall be
discussed at each of the regularly scheduled Business

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Enterprise Council meetings. Time shall be allotted for the
Council to receive, review, and discuss the progress of the use
of service firms owned by minorities, women, and persons with
disabilities by each State agency and public institution of
higher education; and any evidence regarding past or present
racial, ethnic, or gender-based discrimination which directly
impacts a State agency or public institution of higher
education contracting with such firms. If after reviewing such
evidence the Council finds that there is or has been such
discrimination against a specific group, race or sex, the
Council shall establish sheltered markets or adjust existing
sheltered markets tailored to address the Council's specific
findings for the divisions of work specified in paragraphs (a),
(b), and (c) of subsection (1) of this Section.
(Source: P.A. 99-462, eff. 8-25-15; 99-642, eff. 7-28-16;
100-391, eff. 8-25-17.)
Section 99. Effective date. This Act takes effect upon
becoming law.".