Bill Amendment: IL SB0262 | 2017-2018 | 100th General Assembly

NOTE: For additional amemendments please see the Bill Drafting List

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Bill Title: MINORITY/WOMEN-OWNED BUSINESS

Status: 2017-08-25 - Public Act . . . . . . . . . 100-0391 [SB0262 Detail]

Download: Illinois-2017-SB0262-Senate_Amendment_003.html

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Sen. James F. Clayborne, Jr.

Filed: 4/24/2017

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AMENDMENT TO SENATE BILL 262
AMENDMENT NO. ______. Amend Senate Bill 262 by replacing
everything after the enacting clause with the following:
"Section 5. The State Comptroller Act is amended by
changing Section 23.9 as follows:
(15 ILCS 405/23.9)
Sec. 23.9. Minority Contractor Opportunity Initiative. The
State Comptroller Minority Contractor Opportunity Initiative
is created to provide greater opportunities for minority-owned
businesses, women-owned female-owned businesses, businesses
owned by persons with disabilities, and small businesses with
20 or fewer employees in this State to participate in the State
procurement process. The initiative shall be administered by
the Comptroller. Under this initiative, the Comptroller is
responsible for the following: (i) outreach to minority-owned
businesses, women-owned female-owned businesses, businesses

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owned by persons with disabilities, and small businesses
capable of providing services to the State; (ii) education of
minority-owned businesses, women-owned female-owned
businesses, businesses owned by persons with disabilities, and
small businesses concerning State contracting and procurement;
(iii) notification of minority-owned businesses, women-owned
female-owned businesses, businesses owned by persons with
disabilities, and small businesses of State contracting
opportunities; and (iv) maintenance of an online database of
State contracts that identifies the contracts awarded to
minority-owned businesses, women-owned female-owned
businesses, businesses owned by persons with disabilities, and
small businesses that includes the total amount paid by State
agencies to contractors and the percentage paid to
minority-owned businesses, women-owned female-owned
businesses, businesses owned by persons with disabilities, and
small businesses.
The Comptroller shall work with the Business Enterprise
Council created under Section 5 of the Business Enterprise for
Minorities, Women Females, and Persons with Disabilities Act to
fulfill the Comptroller's responsibilities under this Section.
The Comptroller may rely on the Business Enterprise Council's
identification of minority-owned businesses, women-owned
female-owned businesses, and businesses owned by persons with
disabilities.
The Comptroller shall annually prepare and submit a report

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to the Governor and the General Assembly concerning the
progress of this initiative including the following
information for the preceding calendar year: (i) a statement of
the total amounts paid by each executive branch agency to
contractors since the previous report; (ii) the percentage of
the amounts that were paid to minority-owned businesses,
women-owned female-owned businesses, businesses owned by
persons with disabilities, and small businesses; (iii) the
successes achieved and the challenges faced by the Comptroller
in operating outreach programs for minorities, women, persons
with disabilities, and small businesses; (iv) the challenges
each executive branch agency may face in hiring qualified
minority, woman female, and small business employees and
employees with disabilities and contracting with qualified
minority-owned businesses, women-owned female-owned
businesses, businesses owned by persons with disabilities, and
small businesses; and (iv) any other information, findings,
conclusions, and recommendations for legislative or agency
action, as the Comptroller deems appropriate.
On and after the effective date of this amendatory Act of
the 97th General Assembly, any bidder or offeror awarded a
contract of $1,000 or more under Section 20-10, 20-15, 20-25,
or 20-30 of the Illinois Procurement Code is required to pay a
fee of $15 to cover expenses related to the administration of
this Section. The Comptroller shall deduct the fee from the
first check issued to the vendor under the contract and deposit

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the fee into the Comptroller's Administrative Fund. Contracts
administered for statewide orders placed by agencies (commonly
referred to as "statewide master contracts") are exempt from
this fee.
(Source: P.A. 98-797, eff. 7-31-14; 99-143, eff. 7-27-15.)
(20 ILCS 605/605-525 rep.)
Section 10. The Department of Commerce and Economic
Opportunity Law of the Civil Administrative Code of Illinois is
amended by repealing Section 605-525.
Section 15. The Illinois Lottery Law is amended by changing
Section 9.1 as follows:
(20 ILCS 1605/9.1)
Sec. 9.1. Private manager and management agreement.
(a) As used in this Section:
"Offeror" means a person or group of persons that responds
to a request for qualifications under this Section.
"Request for qualifications" means all materials and
documents prepared by the Department to solicit the following
from offerors:
(1) Statements of qualifications.
(2) Proposals to enter into a management agreement,
including the identity of any prospective vendor or vendors
that the offeror intends to initially engage to assist the

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offeror in performing its obligations under the management
agreement.
"Final offer" means the last proposal submitted by an
offeror in response to the request for qualifications,
including the identity of any prospective vendor or vendors
that the offeror intends to initially engage to assist the
offeror in performing its obligations under the management
agreement.
"Final offeror" means the offeror ultimately selected by
the Governor to be the private manager for the Lottery under
subsection (h) of this Section.
(b) By September 15, 2010, the Governor shall select a
private manager for the total management of the Lottery with
integrated functions, such as lottery game design, supply of
goods and services, and advertising and as specified in this
Section.
(c) Pursuant to the terms of this subsection, the
Department shall endeavor to expeditiously terminate the
existing contracts in support of the Lottery in effect on the
effective date of this amendatory Act of the 96th General
Assembly in connection with the selection of the private
manager. As part of its obligation to terminate these contracts
and select the private manager, the Department shall establish
a mutually agreeable timetable to transfer the functions of
existing contractors to the private manager so that existing
Lottery operations are not materially diminished or impaired

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during the transition. To that end, the Department shall do the
following:
(1) where such contracts contain a provision
authorizing termination upon notice, the Department shall
provide notice of termination to occur upon the mutually
agreed timetable for transfer of functions;
(2) upon the expiration of any initial term or renewal
term of the current Lottery contracts, the Department shall
not renew such contract for a term extending beyond the
mutually agreed timetable for transfer of functions; or
(3) in the event any current contract provides for
termination of that contract upon the implementation of a
contract with the private manager, the Department shall
perform all necessary actions to terminate the contract on
the date that coincides with the mutually agreed timetable
for transfer of functions.
If the contracts to support the current operation of the
Lottery in effect on the effective date of this amendatory Act
of the 96th General Assembly are not subject to termination as
provided for in this subsection (c), then the Department may
include a provision in the contract with the private manager
specifying a mutually agreeable methodology for incorporation.
(c-5) The Department shall include provisions in the
management agreement whereby the private manager shall, for a
fee, and pursuant to a contract negotiated with the Department
(the "Employee Use Contract"), utilize the services of current

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Department employees to assist in the administration and
operation of the Lottery. The Department shall be the employer
of all such bargaining unit employees assigned to perform such
work for the private manager, and such employees shall be State
employees, as defined by the Personnel Code. Department
employees shall operate under the same employment policies,
rules, regulations, and procedures, as other employees of the
Department. In addition, neither historical representation
rights under the Illinois Public Labor Relations Act, nor
existing collective bargaining agreements, shall be disturbed
by the management agreement with the private manager for the
management of the Lottery.
(d) The management agreement with the private manager shall
include all of the following:
(1) A term not to exceed 10 years, including any
renewals.
(2) A provision specifying that the Department:
(A) shall exercise actual control over all
significant business decisions;
(A-5) has the authority to direct or countermand
operating decisions by the private manager at any time;
(B) has ready access at any time to information
regarding Lottery operations;
(C) has the right to demand and receive information
from the private manager concerning any aspect of the
Lottery operations at any time; and

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(D) retains ownership of all trade names,
trademarks, and intellectual property associated with
the Lottery.
(3) A provision imposing an affirmative duty on the
private manager to provide the Department with material
information and with any information the private manager
reasonably believes the Department would want to know to
enable the Department to conduct the Lottery.
(4) A provision requiring the private manager to
provide the Department with advance notice of any operating
decision that bears significantly on the public interest,
including, but not limited to, decisions on the kinds of
games to be offered to the public and decisions affecting
the relative risk and reward of the games being offered, so
the Department has a reasonable opportunity to evaluate and
countermand that decision.
(5) A provision providing for compensation of the
private manager that may consist of, among other things, a
fee for services and a performance based bonus as
consideration for managing the Lottery, including terms
that may provide the private manager with an increase in
compensation if Lottery revenues grow by a specified
percentage in a given year.
(6) (Blank).
(7) A provision requiring the deposit of all Lottery
proceeds to be deposited into the State Lottery Fund except

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as otherwise provided in Section 20 of this Act.
(8) A provision requiring the private manager to locate
its principal office within the State.
(8-5) A provision encouraging that at least 20% of the
cost of contracts entered into for goods and services by
the private manager in connection with its management of
the Lottery, other than contracts with sales agents or
technical advisors, be awarded to businesses that are a
minority-owned minority owned business, a women-owned
female owned business, or a business owned by a person with
disability, as those terms are defined in the Business
Enterprise for Minorities, Women Females, and Persons with
Disabilities Act.
(9) A requirement that so long as the private manager
complies with all the conditions of the agreement under the
oversight of the Department, the private manager shall have
the following duties and obligations with respect to the
management of the Lottery:
(A) The right to use equipment and other assets
used in the operation of the Lottery.
(B) The rights and obligations under contracts
with retailers and vendors.
(C) The implementation of a comprehensive security
program by the private manager.
(D) The implementation of a comprehensive system
of internal audits.

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(E) The implementation of a program by the private
manager to curb compulsive gambling by persons playing
the Lottery.
(F) A system for determining (i) the type of
Lottery games, (ii) the method of selecting winning
tickets, (iii) the manner of payment of prizes to
holders of winning tickets, (iv) the frequency of
drawings of winning tickets, (v) the method to be used
in selling tickets, (vi) a system for verifying the
validity of tickets claimed to be winning tickets,
(vii) the basis upon which retailer commissions are
established by the manager, and (viii) minimum
payouts.
(10) A requirement that advertising and promotion must
be consistent with Section 7.8a of this Act.
(11) A requirement that the private manager market the
Lottery to those residents who are new, infrequent, or
lapsed players of the Lottery, especially those who are
most likely to make regular purchases on the Internet as
permitted by law.
(12) A code of ethics for the private manager's
officers and employees.
(13) A requirement that the Department monitor and
oversee the private manager's practices and take action
that the Department considers appropriate to ensure that
the private manager is in compliance with the terms of the

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management agreement, while allowing the manager, unless
specifically prohibited by law or the management
agreement, to negotiate and sign its own contracts with
vendors.
(14) A provision requiring the private manager to
periodically file, at least on an annual basis, appropriate
financial statements in a form and manner acceptable to the
Department.
(15) Cash reserves requirements.
(16) Procedural requirements for obtaining the prior
approval of the Department when a management agreement or
an interest in a management agreement is sold, assigned,
transferred, or pledged as collateral to secure financing.
(17) Grounds for the termination of the management
agreement by the Department or the private manager.
(18) Procedures for amendment of the agreement.
(19) A provision requiring the private manager to
engage in an open and competitive bidding process for any
procurement having a cost in excess of $50,000 that is not
a part of the private manager's final offer. The process
shall favor the selection of a vendor deemed to have
submitted a proposal that provides the Lottery with the
best overall value. The process shall not be subject to the
provisions of the Illinois Procurement Code, unless
specifically required by the management agreement.
(20) The transition of rights and obligations,

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including any associated equipment or other assets used in
the operation of the Lottery, from the manager to any
successor manager of the lottery, including the
Department, following the termination of or foreclosure
upon the management agreement.
(21) Right of use of copyrights, trademarks, and
service marks held by the Department in the name of the
State. The agreement must provide that any use of them by
the manager shall only be for the purpose of fulfilling its
obligations under the management agreement during the term
of the agreement.
(22) The disclosure of any information requested by the
Department to enable it to comply with the reporting
requirements and information requests provided for under
subsection (p) of this Section.
(e) Notwithstanding any other law to the contrary, the
Department shall select a private manager through a competitive
request for qualifications process consistent with Section
20-35 of the Illinois Procurement Code, which shall take into
account:
(1) the offeror's ability to market the Lottery to
those residents who are new, infrequent, or lapsed players
of the Lottery, especially those who are most likely to
make regular purchases on the Internet;
(2) the offeror's ability to address the State's
concern with the social effects of gambling on those who

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can least afford to do so;
(3) the offeror's ability to provide the most
successful management of the Lottery for the benefit of the
people of the State based on current and past business
practices or plans of the offeror; and
(4) the offeror's poor or inadequate past performance
in servicing, equipping, operating or managing a lottery on
behalf of Illinois, another State or foreign government and
attracting persons who are not currently regular players of
a lottery.
(f) The Department may retain the services of an advisor or
advisors with significant experience in financial services or
the management, operation, and procurement of goods, services,
and equipment for a government-run lottery to assist in the
preparation of the terms of the request for qualifications and
selection of the private manager. Any prospective advisor
seeking to provide services under this subsection (f) shall
disclose any material business or financial relationship
during the past 3 years with any potential offeror, or with a
contractor or subcontractor presently providing goods,
services, or equipment to the Department to support the
Lottery. The Department shall evaluate the material business or
financial relationship of each prospective advisor. The
Department shall not select any prospective advisor with a
substantial business or financial relationship that the
Department deems to impair the objectivity of the services to

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be provided by the prospective advisor. During the course of
the advisor's engagement by the Department, and for a period of
one year thereafter, the advisor shall not enter into any
business or financial relationship with any offeror or any
vendor identified to assist an offeror in performing its
obligations under the management agreement. Any advisor
retained by the Department shall be disqualified from being an
offeror. The Department shall not include terms in the request
for qualifications that provide a material advantage whether
directly or indirectly to any potential offeror, or any
contractor or subcontractor presently providing goods,
services, or equipment to the Department to support the
Lottery, including terms contained in previous responses to
requests for proposals or qualifications submitted to
Illinois, another State or foreign government when those terms
are uniquely associated with a particular potential offeror,
contractor, or subcontractor. The request for proposals
offered by the Department on December 22, 2008 as
"LOT08GAMESYS" and reference number "22016176" is declared
void.
(g) The Department shall select at least 2 offerors as
finalists to potentially serve as the private manager no later
than August 9, 2010. Upon making preliminary selections, the
Department shall schedule a public hearing on the finalists'
proposals and provide public notice of the hearing at least 7
calendar days before the hearing. The notice must include all

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of the following:
(1) The date, time, and place of the hearing.
(2) The subject matter of the hearing.
(3) A brief description of the management agreement to
be awarded.
(4) The identity of the offerors that have been
selected as finalists to serve as the private manager.
(5) The address and telephone number of the Department.
(h) At the public hearing, the Department shall (i) provide
sufficient time for each finalist to present and explain its
proposal to the Department and the Governor or the Governor's
designee, including an opportunity to respond to questions
posed by the Department, Governor, or designee and (ii) allow
the public and non-selected offerors to comment on the
presentations. The Governor or a designee shall attend the
public hearing. After the public hearing, the Department shall
have 14 calendar days to recommend to the Governor whether a
management agreement should be entered into with a particular
finalist. After reviewing the Department's recommendation, the
Governor may accept or reject the Department's recommendation,
and shall select a final offeror as the private manager by
publication of a notice in the Illinois Procurement Bulletin on
or before September 15, 2010. The Governor shall include in the
notice a detailed explanation and the reasons why the final
offeror is superior to other offerors and will provide
management services in a manner that best achieves the

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objectives of this Section. The Governor shall also sign the
management agreement with the private manager.
(i) Any action to contest the private manager selected by
the Governor under this Section must be brought within 7
calendar days after the publication of the notice of the
designation of the private manager as provided in subsection
(h) of this Section.
(j) The Lottery shall remain, for so long as a private
manager manages the Lottery in accordance with provisions of
this Act, a Lottery conducted by the State, and the State shall
not be authorized to sell or transfer the Lottery to a third
party.
(k) Any tangible personal property used exclusively in
connection with the lottery that is owned by the Department and
leased to the private manager shall be owned by the Department
in the name of the State and shall be considered to be public
property devoted to an essential public and governmental
function.
(l) The Department may exercise any of its powers under
this Section or any other law as necessary or desirable for the
execution of the Department's powers under this Section.
(m) Neither this Section nor any management agreement
entered into under this Section prohibits the General Assembly
from authorizing forms of gambling that are not in direct
competition with the Lottery.
(n) The private manager shall be subject to a complete

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investigation in the third, seventh, and tenth years of the
agreement (if the agreement is for a 10-year term) by the
Department in cooperation with the Auditor General to determine
whether the private manager has complied with this Section and
the management agreement. The private manager shall bear the
cost of an investigation or reinvestigation of the private
manager under this subsection.
(o) The powers conferred by this Section are in addition
and supplemental to the powers conferred by any other law. If
any other law or rule is inconsistent with this Section,
including, but not limited to, provisions of the Illinois
Procurement Code, then this Section controls as to any
management agreement entered into under this Section. This
Section and any rules adopted under this Section contain full
and complete authority for a management agreement between the
Department and a private manager. No law, procedure,
proceeding, publication, notice, consent, approval, order, or
act by the Department or any other officer, Department, agency,
or instrumentality of the State or any political subdivision is
required for the Department to enter into a management
agreement under this Section. This Section contains full and
complete authority for the Department to approve any contracts
entered into by a private manager with a vendor providing
goods, services, or both goods and services to the private
manager under the terms of the management agreement, including
subcontractors of such vendors.

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Upon receipt of a written request from the Chief
Procurement Officer, the Department shall provide to the Chief
Procurement Officer a complete and un-redacted copy of the
management agreement or any contract that is subject to the
Department's approval authority under this subsection (o). The
Department shall provide a copy of the agreement or contract to
the Chief Procurement Officer in the time specified by the
Chief Procurement Officer in his or her written request, but no
later than 5 business days after the request is received by the
Department. The Chief Procurement Officer must retain any
portions of the management agreement or of any contract
designated by the Department as confidential, proprietary, or
trade secret information in complete confidence pursuant to
subsection (g) of Section 7 of the Freedom of Information Act.
The Department shall also provide the Chief Procurement Officer
with reasonable advance written notice of any contract that is
pending Department approval.
Notwithstanding any other provision of this Section to the
contrary, the Chief Procurement Officer shall adopt
administrative rules, including emergency rules, to establish
a procurement process to select a successor private manager if
a private management agreement has been terminated. The
selection process shall at a minimum take into account the
criteria set forth in items (1) through (4) of subsection (e)
of this Section and may include provisions consistent with
subsections (f), (g), (h), and (i) of this Section. The Chief

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Procurement Officer shall also implement and administer the
adopted selection process upon the termination of a private
management agreement. The Department, after the Chief
Procurement Officer certifies that the procurement process has
been followed in accordance with the rules adopted under this
subsection (o), shall select a final offeror as the private
manager and sign the management agreement with the private
manager.
Except as provided in Sections 21.5, 21.6, 21.7, 21.8, and
21.9, the Department shall distribute all proceeds of lottery
tickets and shares sold in the following priority and manner:
(1) The payment of prizes and retailer bonuses.
(2) The payment of costs incurred in the operation and
administration of the Lottery, including the payment of
sums due to the private manager under the management
agreement with the Department.
(3) On the last day of each month or as soon thereafter
as possible, the State Comptroller shall direct and the
State Treasurer shall transfer from the State Lottery Fund
to the Common School Fund an amount that is equal to the
proceeds transferred in the corresponding month of fiscal
year 2009, as adjusted for inflation, to the Common School
Fund.
(4) On or before the last day of each fiscal year,
deposit any remaining proceeds, subject to payments under
items (1), (2), and (3) into the Capital Projects Fund each

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fiscal year.
(p) The Department shall be subject to the following
reporting and information request requirements:
(1) the Department shall submit written quarterly
reports to the Governor and the General Assembly on the
activities and actions of the private manager selected
under this Section;
(2) upon request of the Chief Procurement Officer, the
Department shall promptly produce information related to
the procurement activities of the Department and the
private manager requested by the Chief Procurement
Officer; the Chief Procurement Officer must retain
confidential, proprietary, or trade secret information
designated by the Department in complete confidence
pursuant to subsection (g) of Section 7 of the Freedom of
Information Act; and
(3) at least 30 days prior to the beginning of the
Department's fiscal year, the Department shall prepare an
annual written report on the activities of the private
manager selected under this Section and deliver that report
to the Governor and General Assembly.
(Source: P.A. 98-463, eff. 8-16-13; 98-649, eff. 6-16-14;
99-933, eff. 1-27-17.)
Section 20. The Department of Transportation Law of the
Civil Administrative Code of Illinois is amended by changing

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Sections 2705-585 and 2705-600 as follows:
(20 ILCS 2705/2705-585)
Sec. 2705-585. Diversity goals.
(a) To the extent permitted by any applicable federal law
or regulation, all State construction projects funded from
amounts (i) made available under the Governor's Fiscal Year
2009 supplemental budget or the American Recovery and
Reinvestment Act of 2009 and (ii) that are appropriated to the
Illinois Department of Transportation shall comply with the
Business Enterprise for Minorities, Women Females, and Persons
with Disabilities Act.
(b) The Illinois Department of Transportation shall
appoint representatives to professional and artistic services
selection committees representative of the State's ethnic,
cultural, and geographic diversity, including, but not limited
to, at least one person from each of the following: an
association representing the interests of African American
business owners, an association representing the interests of
Latino business owners, and an association representing the
interests of women business owners. These committees shall
comply with all requirements of the Open Meetings Act.
(Source: P.A. 96-8, eff. 4-28-09.)
(20 ILCS 2705/2705-600)
(Section scheduled to be repealed on June 30, 2017)

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Sec. 2705-600. Target market program. In order to remedy
particular incidents and patterns of egregious race or gender
discrimination, the chief procurement officer, in consultation
with the Department, shall have the power to implement a target
market program incorporating the following terms:
(0.5) Each fiscal year, the Department shall review any
and all evidence of discrimination related to
transportation construction projects. Evidence of
discrimination may include, but is not limited to: (i) the
determination of the Department's utilization of
minority-owned and women-owned female-owned firms in its
prime contracts and associated subcontracts; (ii) the
availability of minority-owned and women-owned
female-owned firms in the Department's geographic market
areas and specific construction industry markets; (iii)
any disparities between the utilization of minority-owned
and women-owned female-owned firms in the Department's
markets and the utilization of those firms on the
Department's prime contracts and subcontracts in those
markets; (iv) any disparities between the utilization of
minority-owned and women-owned female-owned firms in the
overall construction markets in which the Department
purchases and the utilization of those firms in the overall
construction economy in which the Department operates; (v)
evidence of discrimination in the rates at which
minority-owned and women-owned female-owned firms in the

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Department's markets form businesses compared to similar
non-minority-owned and non-women-owned non-female-owned
firms in the Department's markets and in the dollars earned
by such businesses; and (vi) quantitative and qualitative
anecdotal evidence of discrimination. If after reviewing
such evidence, the Department finds and the chief
procurement officer concurs in the findings that the
Department has a strong basis in evidence that it has a
compelling interest in remedying the identified
discrimination against a specific group, race, or gender,
and that the only remedy for such discrimination is a
narrowly tailored target market, the chief procurement
officer, in consultation with the Department, has the power
to establish and implement a target market program tailored
to address the specific findings of egregious
discrimination made by the Department, after a public
hearing at which minority, women female, and general
contractor groups, community organizations, and other
interested parties shall have the opportunity to provide
comments.
(1) In January of each year, the Department and the
chief procurement officer shall report jointly to the
General Assembly the results of any evidentiary inquiries
or studies that establish the Department's compelling
interest in remedying egregious discrimination based upon
strong evidence of the need for a narrowly tailored target

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market to remedy such discrimination and public hearings
held pursuant to this Section, and shall report the actions
to be taken to address the findings, including, if
warranted, the establishment and implementation of any
target market initiatives.
(2) The chief procurement officer shall work with the
officers and divisions of the Department to determine the
appropriate designation of contracts as target market
contracts. The chief procurement officer, in consultation
with the Department, shall determine appropriate contract
formation and bidding procedures for target market
contracts, including, but not limited to, the dividing of
procurements so designated into contract award units in
order to facilitate offers or bids from minority-owned
businesses and women-owned female-owned businesses and the
removal of bid bond requirements for minority-owned
businesses and women-owned female-owned businesses.
Minority-owned businesses and women-owned female-owned
businesses shall remain eligible to seek the procurement
award of contracts that have not been designated as target
market contracts.
(3) The chief procurement officer may make
participation in the target market program dependent upon
submission to stricter compliance audits than are
generally applicable. No contract shall be eligible for
inclusion in the target market program unless the

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Department determines that there are at least 3
minority-owned businesses or women-owned female-owned
businesses interested in participating in that type of
contract. The Department, with the concurrence of the chief
procurement officer, may develop guidelines to regulate
the level of participation of individual minority-owned
businesses and women-owned female-owned businesses in the
target market program in order to prevent the domination of
the target market program by a small number of those
entities. The Department may require minority-owned
businesses and women-owned female-owned businesses to
participate in training programs offered by the Department
or other State agencies as a condition precedent to
participation in the target market program.
(4) Participation in the target market program shall be
limited to minority-owned businesses and women-owned
female-owned businesses and joint ventures consisting
exclusively of minority-owned businesses, women-owned
female-owned businesses, or both, that are certified as
disadvantaged businesses pursuant to the provisions of
Section 6(d) of the Business Enterprise for Minorities,
Women Females, and Persons with Disabilities Act. A firm
awarded a target market contract may subcontract up to 50%
of the dollar value of the target market contract to
subcontractors who are not minority-owned businesses or
women-owned female-owned businesses.

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(5) The Department may include in the target market
program contracts that are funded by the federal government
to the extent allowed by federal law and may vary the
standards of eligibility of the target market program to
the extent necessary to comply with the federal funding
requirements.
(6) If no satisfactory bid or response is received with
respect to a contract that has been designated as part of
the target market program, the chief procurement officer,
in consultation with the Department, may delete that
contract from the target market program. In addition, the
chief procurement officer, in consultation with the
Department, may thereupon designate and set aside for the
target market program additional contracts corresponding
in approximate value to the contract that was deleted from
the target market program, in keeping with the narrowly
tailored process used for selecting contracts suitable for
the program and to the extent feasible.
(7) The chief procurement officer, in consultation
with the Department, shall promulgate such rules as he or
she deems necessary to administer the target market
program.
If any part, sentence, or clause of this Section is for any
reason held invalid or to be unconstitutional, such decision
shall not affect the validity of the remaining portions of this
Section.

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This Section is repealed on June 30, 2017.
(Source: P.A. 97-228, eff. 7-28-11; 98-670, eff. 6-27-14.)
Section 25. The Capital Development Board Act is amended by
changing Section 16 as follows:
(20 ILCS 3105/16) (from Ch. 127, par. 783b)
Sec. 16. (a) In addition to any other power granted in this
Act to adopt rules or regulations, the Board may adopt
regulations or rules relating to the issuance or renewal of the
prequalification of an architect, engineer or contractor or the
suspension or modification of the prequalification of any such
person or entity including, without limitation, an interim or
emergency suspension or modification without a hearing founded
on any one or more of the bases set forth in this Section.
(b) Among the bases for an interim or emergency suspension
or modification of prequalification are:
(1) A finding by the Board that the public interest,
safety or welfare requires a summary suspension or
modification of a prequalification without hearings.
(2) The occurrence of an event or series of events
which, in the Board's opinion, warrants a summary
suspension or modification of a prequalification without a
hearing including, without limitation, (i) the indictment
of the holder of the prequalification by a State or federal
agency or other branch of government for a crime; (ii) the

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suspension or modification of a license or
prequalification by another State agency or federal agency
or other branch of government after hearings; (iii) a
material breach of a contract made between the Board and an
architect, engineer or contractor; and (iv) the failure to
comply with State law including, without limitation, the
Business Enterprise for Minorities, Women Females, and
Persons with Disabilities Act, the prevailing wage
requirements, and the Steel Products Procurement Act.
(c) If a prequalification is suspended or modified by the
Board without hearings for any reason set forth in this Section
or in Section 10-65 of the Illinois Administrative Procedure
Act, as amended, the Board shall within 30 days of the issuance
of an order of suspension or modification of a prequalification
initiate proceedings for the suspension or modification of or
other action upon the prequalification.
(Source: P.A. 92-16, eff. 6-28-01.)
Section 30. The Illinois Health Information Exchange and
Technology Act is amended by changing Section 20 as follows:
(20 ILCS 3860/20)
(Section scheduled to be repealed on January 1, 2021)
Sec. 20. Powers and duties of the Illinois Health
Information Exchange Authority. The Authority has the
following powers, together with all powers incidental or

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necessary to accomplish the purposes of this Act:
(1) The Authority shall create and administer the ILHIE
using information systems and processes that are secure,
are cost effective, and meet all other relevant privacy and
security requirements under State and federal law.
(2) The Authority shall establish and adopt standards
and requirements for the use of health information and the
requirements for participation in the ILHIE by persons or
entities including, but not limited to, health care
providers, payors, and local health information exchanges.
(3) The Authority shall establish minimum standards
for accessing the ILHIE to ensure that the appropriate
security and privacy protections apply to health
information, consistent with applicable federal and State
standards and laws. The Authority shall have the power to
suspend, limit, or terminate the right to participate in
the ILHIE for non-compliance or failure to act, with
respect to applicable standards and laws, in the best
interests of patients, users of the ILHIE, or the public.
The Authority may seek all remedies allowed by law to
address any violation of the terms of participation in the
ILHIE.
(4) The Authority shall identify barriers to the
adoption of electronic health records systems, including
researching the rates and patterns of dissemination and use
of electronic health record systems throughout the State.

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The Authority shall make the results of the research
available on its website.
(5) The Authority shall prepare educational materials
and educate the general public on the benefits of
electronic health records, the ILHIE, and the safeguards
available to prevent unauthorized disclosure of health
information.
(6) The Authority may appoint or designate an
institutional review board in accordance with federal and
State law to review and approve requests for research in
order to ensure compliance with standards and patient
privacy and security protections as specified in paragraph
(3) of this Section.
(7) The Authority may enter into all contracts and
agreements necessary or incidental to the performance of
its powers under this Act. The Authority's expenditures of
private funds are exempt from the Illinois Procurement
Code, pursuant to Section 1-10 of that Act. Notwithstanding
this exception, the Authority shall comply with the
Business Enterprise for Minorities, Women Females, and
Persons with Disabilities Act.
(8) The Authority may solicit and accept grants, loans,
contributions, or appropriations from any public or
private source and may expend those moneys, through
contracts, grants, loans, or agreements, on activities it
considers suitable to the performance of its duties under

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this Act.
(9) The Authority may determine, charge, and collect
any fees, charges, costs, and expenses from any healthcare
provider or entity in connection with its duties under this
Act. Moneys collected under this paragraph (9) shall be
deposited into the Health Information Exchange Fund.
(10) The Authority may, under the direction of the
Executive Director, employ and discharge staff, including
administrative, technical, expert, professional, and legal
staff, as is necessary or convenient to carry out the
purposes of this Act. The Authority may establish and
administer standards of classification regarding
compensation, benefits, duties, performance, and tenure
for that staff and may enter into contracts of employment
with members of that staff for such periods and on such
terms as the Authority deems desirable. All employees of
the Authority are exempt from the Personnel Code as
provided by Section 4 of the Personnel Code.
(11) The Authority shall consult and coordinate with
the Department of Public Health to further the Authority's
collection of health information from health care
providers for public health purposes. The collection of
public health information shall include identifiable
information for use by the Authority or other State
agencies to comply with State and federal laws. Any
identifiable information so collected shall be privileged

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and confidential in accordance with Sections 8-2101,
8-2102, 8-2103, 8-2104, and 8-2105 of the Code of Civil
Procedure.
(12) All identified or deidentified health information
in the form of health data or medical records contained in,
stored in, submitted to, transferred by, or released from
the Illinois Health Information Exchange, and identified
or deidentified health information in the form of health
data and medical records of the Illinois Health Information
Exchange in the possession of the Illinois Health
Information Exchange Authority due to its administration
of the Illinois Health Information Exchange, shall be
exempt from inspection and copying under the Freedom of
Information Act. The terms "identified" and "deidentified"
shall be given the same meaning as in the Health Insurance
Portability and Accountability Act of 1996, Public Law
104-191, or any subsequent amendments thereto, and any
regulations promulgated thereunder.
(13) To address gaps in the adoption of, workforce
preparation for, and exchange of electronic health records
that result in regional and socioeconomic disparities in
the delivery of care, the Authority may evaluate such gaps
and provide resources as available, giving priority to
healthcare providers serving a significant percentage of
Medicaid or uninsured patients and in medically
underserved or rural areas.

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(Source: P.A. 99-642, eff. 7-28-16.)
Section 35. The Illinois Global Partnership Act is amended
by changing Section 20 as follows:
(20 ILCS 3948/20)
Sec. 20. Board of directors. IGP shall be governed by a
board of directors. The IGP board of directors shall consist of
14 members. Five of the members shall be voting members
appointed by the Governor with the advice and consent of the
Senate. The Speaker and Minority Leader of the House of
Representatives, the President and Minority Leader of the
Senate, the Lieutenant Governor, the Director of Agriculture,
the Director of Commerce and Economic Opportunity, the
Chairperson of the Illinois Arts Council, and the Director of
the Illinois Finance Authority, or the designee of each, shall
be non-voting ex officio members.
Of the members appointed by the Governor, one member must
have a background in agriculture, one member must have a
background in manufacturing, and one member must have a
background in international business relations.
Of the initial members appointed by the Governor, 3 members
shall serve 4-year terms and 2 members shall serve 2-year terms
as designated by the Governor. Thereafter, members appointed by
the Governor shall serve 4-year terms. A vacancy among members
appointed by the Governor shall be filled by appointment by the

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Governor for the remainder of the vacated term.
Members of the board shall receive no compensation but
shall be reimbursed for expenses incurred in the performance of
their duties.
The Governor shall designate the chairman of the board
until a successor is designated. The board shall meet at the
call of the chair.
No less than 90 days after a majority of the members of the
board of directors of the IGP is appointed by the Governor, the
board shall develop a policy adopted by resolution of the board
stating the board's plan for the use of services provided by
businesses owned by minorities, women females, and persons with
disabilities, as defined under the Business Enterprise for
Minorities, Women Females, and Persons with Disabilities Act.
The board shall provide a copy of this resolution to the
Governor and the General Assembly upon its adoption.
On December 31 of each year, the board shall report to the
General Assembly and the Governor regarding the use of services
provided by businesses owned by minorities, women females, and
persons with disabilities, as defined under the Business
Enterprise for Minorities, Women Females, and Persons with
Disabilities Act.
(Source: P.A. 94-388, eff. 7-29-05.)
Section 40. The State Finance Act is amended by changing
Sections 8.32 and 45 as follows:

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(30 ILCS 105/8.32) (from Ch. 127, par. 144.32)
Sec. 8.32. All moneys received by the Minority and Women
Female Business Enterprise Council, or by the Department of
Central Management Services on behalf of the Council or the
Department's Minority and Female Business Enterprise for
Minorities, Women, and Persons with Disabilities Division,
from grants, donations, seminar registration fees, and the sale
of directories, lists and other such information, shall be
deposited into the Minority and Female Business Enterprise Fund
in the State treasury. Expenses of the Council or the
Department's Minority and Female Business Enterprise for
Minorities, Women, and Persons with Disabilities Division may
be paid from this Fund.
(Source: P.A. 86-1482.)
(30 ILCS 105/45)
Sec. 45. Award of capital funds. Each award by grant or
loan of State funds of $250,000 or more for capital
construction costs or professional services is conditioned
upon the recipient's written certification that the recipient
shall comply with the business enterprise program practices for
minority-owned businesses, women-owned female-owned
businesses, and businesses owned by persons with disabilities
of the Business Enterprise for Minorities, Women Females, and
Persons with Disabilities Act (30 ILCS 575/) and the equal

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employment practices of Section 2-105 of the Illinois Human
Rights Act (775 ILCS 5/2-105). This Section, however, does not
apply to any grant or loan (i) for which a grant or loan
agreement was executed before the effective date of this
amendatory Act of the 96th General Assembly, (ii) for which
prior-incurred costs are being reimbursed, or (iii) for a
federally funded program under which the requirement of this
Section would contravene federal law. Each recipient shall
submit the written certification and business enterprise
program plan for minority-owned businesses, women-owned
female-owned businesses, and businesses owned by persons with
disabilities before signing the relevant grant or loan
agreement. Each grant or loan agreement shall include a
provision that the grant or loan recipient agrees to comply
with the provisions of the Business Enterprise for Minorities,
Women Females, and Persons with Disabilities Act (30 ILCS 575/)
and the equal employment practices of Section 2-105 of the
Illinois Human Rights Act (775 ILCS 5/2-105).
Each business enterprise program plan shall apply only to
the State-funded portion of the relevant capital project and
must be in compliance with all certification and other
requirements of the Business Enterprise for Minorities, Women
Females, and Persons with Disabilities Act.
(Source: P.A. 96-1064, eff. 7-16-10.)
Section 45. The General Obligation Bond Act is amended by

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changing Sections 8 and 15.5 as follows:
(30 ILCS 330/8) (from Ch. 127, par. 658)
Sec. 8. Bond sale expenses.
(a) An amount not to exceed 0.5 percent of the principal
amount of the proceeds of sale of each bond sale is authorized
to be used to pay the reasonable costs of issuance and sale,
including, without limitation, underwriter's discounts and
fees, but excluding bond insurance, of State of Illinois
general obligation bonds authorized and sold pursuant to this
Act, provided that no salaries of State employees or other
State office operating expenses shall be paid out of
non-appropriated proceeds, provided further that the percent
shall be 1.0% for each sale of "Build America Bonds" or
"Qualified School Construction Bonds" as defined in
subsections (d) and (e) of Section 9, respectively. The
Governor's Office of Management and Budget shall compile a
summary of all costs of issuance on each sale (including both
costs paid out of proceeds and those paid out of appropriated
funds) and post that summary on its web site within 20 business
days after the issuance of the Bonds. The summary shall
include, as applicable, the respective percentages of
participation and compensation of each underwriter that is a
member of the underwriting syndicate, legal counsel, financial
advisors, and other professionals for the bond issue and an
identification of all costs of issuance paid to minority-owned

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minority owned businesses, women-owned female owned
businesses, and businesses owned by persons with disabilities.
The terms "minority-owned minority owned businesses",
"women-owned female owned businesses", and "business owned by a
person with a disability" have the meanings given to those
terms in the Business Enterprise for Minorities, Women Females,
and Persons with Disabilities Act. That posting shall be
maintained on the web site for a period of at least 30 days. In
addition, the Governor's Office of Management and Budget shall
provide a written copy of each summary of costs to the Speaker
and Minority Leader of the House of Representatives, the
President and Minority Leader of the Senate, and the Commission
on Government Forecasting and Accountability within 20
business days after each issuance of the Bonds. In addition,
the Governor's Office of Management and Budget shall provide
copies of all contracts under which any costs of issuance are
paid or to be paid to the Commission on Government Forecasting
and Accountability within 20 business days after the issuance
of Bonds for which those costs are paid or to be paid. Instead
of filing a second or subsequent copy of the same contract, the
Governor's Office of Management and Budget may file a statement
that specified costs are paid under specified contracts filed
earlier with the Commission.
(b) The Director of the Governor's Office of Management and
Budget shall not, in connection with the issuance of Bonds,
contract with any underwriter, financial advisor, or attorney

10000SB0262sam003 - 39 - LRB100 05183 MLM 25333 a
unless that underwriter, financial advisor, or attorney
certifies that the underwriter, financial advisor, or attorney
has not and will not pay a contingent fee, whether directly or
indirectly, to a third party for having promoted the selection
of the underwriter, financial advisor, or attorney for that
contract. In the event that the Governor's Office of Management
and Budget determines that an underwriter, financial advisor,
or attorney has filed a false certification with respect to the
payment of contingent fees, the Governor's Office of Management
and Budget shall not contract with that underwriter, financial
advisor, or attorney, or with any firm employing any person who
signed false certifications, for a period of 2 calendar years,
beginning with the date the determination is made. The validity
of Bonds issued under such circumstances of violation pursuant
to this Section shall not be affected.
(Source: P.A. 96-828, eff. 12-2-09.)
(30 ILCS 330/15.5)
Sec. 15.5. Compliance with the Business Enterprise for
Minorities, Women Females, and Persons with Disabilities Act.
Notwithstanding any other provision of law, the Governor's
Office of Management and Budget shall comply with the Business
Enterprise for Minorities, Women Females, and Persons with
Disabilities Act.
(Source: P.A. 93-839, eff. 7-30-04.)

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Section 50. The Build Illinois Bond Act is amended by
changing Sections 5 and 8.3 as follows:
(30 ILCS 425/5) (from Ch. 127, par. 2805)
Sec. 5. Bond Sale Expenses.
(a) An amount not to exceed 0.5% of the principal amount of
the proceeds of the sale of each bond sale is authorized to be
used to pay reasonable costs of each issuance and sale of Bonds
authorized and sold pursuant to this Act, including, without
limitation, underwriter's discounts and fees, but excluding
bond insurance, advertising, printing, bond rating, travel of
outside vendors, security, delivery, legal and financial
advisory services, initial fees of trustees, registrars,
paying agents and other fiduciaries, initial costs of credit or
liquidity enhancement arrangements, initial fees of indexing
and remarketing agents, and initial costs of interest rate
swaps, guarantees or arrangements to limit interest rate risk,
as determined in the related Bond Sale Order, from the proceeds
of each Bond sale, provided that no salaries of State employees
or other State office operating expenses shall be paid out of
non-appropriated proceeds, and provided further that the
percent shall be 1.0% for each sale of "Build America Bonds" as
defined in subsection (c) of Section 6. The Governor's Office
of Management and Budget shall compile a summary of all costs
of issuance on each sale (including both costs paid out of
proceeds and those paid out of appropriated funds) and post

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that summary on its web site within 20 business days after the
issuance of the bonds. That posting shall be maintained on the
web site for a period of at least 30 days. In addition, the
Governor's Office of Management and Budget shall provide a
written copy of each summary of costs to the Speaker and
Minority Leader of the House of Representatives, the President
and Minority Leader of the Senate, and the Commission on
Government Forecasting and Accountability within 20 business
days after each issuance of the bonds. This summary shall
include, as applicable, the respective percentage of
participation and compensation of each underwriter that is a
member of the underwriting syndicate, legal counsel, financial
advisors, and other professionals for the Bond issue, and an
identification of all costs of issuance paid to minority-owned
minority owned businesses, women-owned female owned
businesses, and businesses owned by persons with disabilities.
The terms "minority-owned minority owned businesses",
"women-owned female owned businesses", and "business owned by a
person with a disability" have the meanings given to those
terms in the Business Enterprise for Minorities, Women Females,
and Persons with Disabilities Act. In addition, the Governor's
Office of Management and Budget shall provide copies of all
contracts under which any costs of issuance are paid or to be
paid to the Commission on Government Forecasting and
Accountability within 20 business days after the issuance of
Bonds for which those costs are paid or to be paid. Instead of

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filing a second or subsequent copy of the same contract, the
Governor's Office of Management and Budget may file a statement
that specified costs are paid under specified contracts filed
earlier with the Commission.
(b) The Director of the Governor's Office of Management and
Budget shall not, in connection with the issuance of Bonds,
contract with any underwriter, financial advisor, or attorney
unless that underwriter, financial advisor, or attorney
certifies that the underwriter, financial advisor, or attorney
has not and will not pay a contingent fee, whether directly or
indirectly, to any third party for having promoted the
selection of the underwriter, financial advisor, or attorney
for that contract. In the event that the Governor's Office of
Management and Budget determines that an underwriter,
financial advisor, or attorney has filed a false certification
with respect to the payment of contingent fees, the Governor's
Office of Management and Budget shall not contract with that
underwriter, financial advisor, or attorney, or with any firm
employing any person who signed false certifications, for a
period of 2 calendar years, beginning with the date the
determination is made. The validity of Bonds issued under such
circumstances of violation pursuant to this Section shall not
be affected.
(Source: P.A. 96-828, eff. 12-2-09.)
(30 ILCS 425/8.3)

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Sec. 8.3. Compliance with the Business Enterprise for
Minorities, Women Females, and Persons with Disabilities Act.
Notwithstanding any other provision of law, the Governor's
Office of Management and Budget shall comply with the Business
Enterprise for Minorities, Women Females, and Persons with
Disabilities Act.
(Source: P.A. 93-839, eff. 7-30-04.)
Section 55. The Illinois Procurement Code is amended by
changing Sections 15-25, 30-30, 45-45, 45-57, and 45-65 as
follows:
(30 ILCS 500/15-25)
Sec. 15-25. Bulletin content.
(a) Invitations for bids. Notice of each and every contract
that is offered, including renegotiated contracts and change
orders, shall be published in the Bulletin. All businesses
listed on the Department of Transportation Disadvantaged
Business Enterprise Directory, the Department of Central
Management Services Business Enterprise Program, and the Chief
Procurement Office's Small Business Vendors Directory shall be
furnished written instructions and information on how to
register on each Procurement Bulletin maintained by the State.
Such information shall be provided to each business within 30
calendar days after the business' notice of certification. The
applicable chief procurement officer may provide by rule an

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organized format for the publication of this information, but
in any case it must include at least the date first offered,
the date submission of offers is due, the location that offers
are to be submitted to, the purchasing State agency, the
responsible State purchasing officer, a brief purchase
description, the method of source selection, information of how
to obtain a comprehensive purchase description and any
disclosure and contract forms, and encouragement to potential
contractors to hire qualified veterans, as defined by Section
45-67 of this Code, and qualified Illinois minorities, women,
persons with disabilities, and residents discharged from any
Illinois adult correctional center.
(b) Contracts let. Notice of each and every contract that
is let, including renegotiated contracts and change orders,
shall be issued electronically to those bidders submitting
responses to the solicitations, inclusive of the unsuccessful
bidders, immediately upon contract let. Failure of any chief
procurement officer to give such notice shall result in tolling
the time for filing a bid protest up to 7 calendar days.
For purposes of this subsection (b), "contracts let" means
a construction agency's act of advertising an invitation for
bids for one or more construction projects.
(b-5) Contracts awarded. Notice of each and every contract
that is awarded, including renegotiated contracts and change
orders, shall be issued electronically to the successful
responsible bidder, offeror, or contractor and published in the

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next available subsequent Bulletin. The applicable chief
procurement officer may provide by rule an organized format for
the publication of this information, but in any case it must
include at least all of the information specified in subsection
(a) as well as the name of the successful responsible bidder,
offeror, the contract price, the number of unsuccessful bidders
or offerors and any other disclosure specified in any Section
of this Code. This notice must be posted in the online
electronic Bulletin prior to execution of the contract.
For purposes of this subsection (b-5), "contract award"
means the determination that a particular bidder or offeror has
been selected from among other bidders or offerors to receive a
contract, subject to the successful completion of final
negotiations. "Contract award" is evidenced by the posting of a
Notice of Award or a Notice of Intent to Award to the
respective volume of the Illinois Procurement Bulletin.
(c) Emergency purchase disclosure. Any chief procurement
officer or State purchasing officer exercising emergency
purchase authority under this Code shall publish a written
description and reasons and the total cost, if known, or an
estimate if unknown and the name of the responsible chief
procurement officer and State purchasing officer, and the
business or person contracted with for all emergency purchases
in the next timely, practicable Bulletin. This notice must be
posted in the online electronic Bulletin no later than 5
calendar days after the contract is awarded. Notice of a

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hearing to extend an emergency contract must be posted in the
online electronic Procurement Bulletin no later than 14
calendar days prior to the hearing.
(c-5) Business Enterprise Program report. Each purchasing
agency shall, with the assistance of the applicable chief
procurement officer, post in the online electronic Bulletin a
copy of its annual report of utilization of businesses owned by
minorities, women females, and persons with disabilities as
submitted to the Business Enterprise Council for Minorities,
Women Females, and Persons with Disabilities pursuant to
Section 6(c) of the Business Enterprise for Minorities, Women
Females, and Persons with Disabilities Act within 10 calendar
days after its submission of its report to the Council.
(c-10) Renewals. Notice of each contract renewal shall be
posted in the online electronic Bulletin within 14 calendar
days of the determination to renew the contract and the next
available subsequent Bulletin. The notice shall include at
least all of the information required in subsection (b).
(c-15) Sole source procurements. Before entering into a
sole source contract, a chief procurement officer exercising
sole source procurement authority under this Code shall publish
a written description of intent to enter into a sole source
contract along with a description of the item to be procured
and the intended sole source contractor. This notice must be
posted in the online electronic Procurement Bulletin before a
sole source contract is awarded and at least 14 calendar days

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before the hearing required by Section 20-25.
(d) Other required disclosure. The applicable chief
procurement officer shall provide by rule for the organized
publication of all other disclosure required in other Sections
of this Code in a timely manner.
(e) The changes to subsections (b), (c), (c-5), (c-10), and
(c-15) of this Section made by this amendatory Act of the 96th
General Assembly apply to reports submitted, offers made, and
notices on contracts executed on or after its effective date.
(f) Each chief procurement officer shall, in consultation
with the agencies under his or her jurisdiction, provide the
Procurement Policy Board with the information and resources
necessary, and in a manner, to effectuate the purpose of this
amendatory Act of the 96th General Assembly.
(Source: P.A. 97-895, eff. 8-3-12; 98-1038, eff. 8-25-14;
98-1076, eff. 1-1-15.)
(30 ILCS 500/30-30)
Sec. 30-30. Design-bid-build construction.
(a) The provisions of this subsection are operative through
December 31, 2019.
For building construction contracts in excess of $250,000,
separate specifications may be prepared for all equipment,
labor, and materials in connection with the following 5
subdivisions of the work to be performed:
(1) plumbing;

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(2) heating, piping, refrigeration, and automatic
temperature control systems, including the testing and
balancing of those systems;
(3) ventilating and distribution systems for
conditioned air, including the testing and balancing of
those systems;
(4) electric wiring; and
(5) general contract work.
The specifications may be so drawn as to permit separate
and independent bidding upon each of the 5 subdivisions of
work. All contracts awarded for any part thereof may award the
5 subdivisions of work separately to responsible and reliable
persons, firms, or corporations engaged in these classes of
work. The contracts, at the discretion of the construction
agency, may be assigned to the successful bidder on the general
contract work or to the successful bidder on the subdivision of
work designated by the construction agency before the bidding
as the prime subdivision of work, provided that all payments
will be made directly to the contractors for the 5 subdivisions
of work upon compliance with the conditions of the contract.
Beginning on the effective date of this amendatory Act of
the 99th General Assembly and through December 31, 2019, for
single prime projects: (i) the bid of the successful low bidder
shall identify the name of the subcontractor, if any, and the
bid proposal costs for each of the 5 subdivisions of work set
forth in this Section; (ii) the contract entered into with the

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successful bidder shall provide that no identified
subcontractor may be terminated without the written consent of
the Capital Development Board; (iii) the contract shall comply
with the disadvantaged business practices of the Business
Enterprise for Minorities, Women Females, and Persons with
Disabilities Act and the equal employment practices of Section
2-105 of the Illinois Human Rights Act; (iv) the Capital
Development Board shall submit a quarterly report to the
Procurement Policy Board with information on the general scope,
project budget, and established Business Enterprise Program
goals for any single prime procurement bid in the previous 3
months with a total construction cost valued at $10,000,000 or
less; and (v) the Capital Development Board shall submit an
annual report to the General Assembly and Governor on the
bidding, award, and performance of all single prime projects.
For building construction projects with a total
construction cost valued at $5,000,000 or less, the Capital
Development Board shall not use the single prime procurement
delivery method for more than 50% of the total number of
projects bid for each fiscal year. Any project with a total
construction cost valued greater than $5,000,000 may be bid
using single prime at the discretion of the Executive Director
of the Capital Development Board.
Beginning on the effective date of this amendatory Act of
the 99th General Assembly and through December 31, 2017, the
Capital Development Board shall, on a weekly basis: review the

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projects that have been designed, and approved to bid; and, for
every fifth determination to use the single prime procurement
delivery method for a project under $10,000,000, submit to the
Procurement Policy Board a written notice of its intent to use
the single prime method on the project. The notice shall
include the reasons for using the single prime method and an
explanation of why the use of that method is in the best
interest of the State. The Capital Development Board shall post
the notice on its online procurement webpage and on the online
Procurement Bulletin at least 3 business days following
submission. The Procurement Policy Board shall review and
provide its decision on the use of the single prime method for
every fifth use of the single prime procurement delivery method
for a project under $10,000,000 within 7 business days of
receipt of the notice from the Capital Development Board.
Approval by the Procurement Policy Board shall not be
unreasonably withheld and shall be provided unless the
Procurement Policy Board finds that the use of the single prime
method is not in the best interest of the State. Any decision
by the Procurement Policy Board to disapprove the use of the
single prime method shall be made in writing to the Capital
Development Board, posted on the online Procurement Bulletin,
and shall state the reasons why the single prime method was
disapproved and why it is not in the best interest of the
State.
(b) The provisions of this subsection are operative on and

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after January 1, 2020. For building construction contracts in
excess of $250,000, separate specifications shall be prepared
for all equipment, labor, and materials in connection with the
following 5 subdivisions of the work to be performed:
(1) plumbing;
(2) heating, piping, refrigeration, and automatic
temperature control systems, including the testing and
balancing of those systems;
(3) ventilating and distribution systems for
conditioned air, including the testing and balancing of
those systems;
(4) electric wiring; and
(5) general contract work.
The specifications must be so drawn as to permit separate
and independent bidding upon each of the 5 subdivisions of
work. All contracts awarded for any part thereof shall award
the 5 subdivisions of work separately to responsible and
reliable persons, firms, or corporations engaged in these
classes of work. The contracts, at the discretion of the
construction agency, may be assigned to the successful bidder
on the general contract work or to the successful bidder on the
subdivision of work designated by the construction agency
before the bidding as the prime subdivision of work, provided
that all payments will be made directly to the contractors for
the 5 subdivisions of work upon compliance with the conditions
of the contract.

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(Source: P.A. 98-431, eff. 8-16-13; 98-1076, eff. 1-1-15;
99-257, eff. 8-4-15.)
(30 ILCS 500/45-45)
Sec. 45-45. Small businesses.
(a) Set-asides. Each chief procurement officer has
authority to designate as small business set-asides a fair
proportion of construction, supply, and service contracts for
award to small businesses in Illinois. Advertisements for bids
or offers for those contracts shall specify designation as
small business set-asides. In awarding the contracts, only bids
or offers from qualified small businesses shall be considered.
(b) Small business. "Small business" means a business that
is independently owned and operated and that is not dominant in
its field of operation. The chief procurement officer shall
establish a detailed definition by rule, using in addition to
the foregoing criteria other criteria, including the number of
employees and the dollar volume of business. When computing the
size status of a potential contractor, annual sales and
receipts of the potential contractor and all of its affiliates
shall be included. The maximum number of employees and the
maximum dollar volume that a small business may have under the
rules promulgated by the chief procurement officer may vary
from industry to industry to the extent necessary to reflect
differing characteristics of those industries, subject to the
following limitations:

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(1) No wholesale business is a small business if its
annual sales for its most recently completed fiscal year
exceed $13,000,000.
(2) No retail business or business selling services is
a small business if its annual sales and receipts exceed
$8,000,000.
(3) No manufacturing business is a small business if it
employs more than 250 persons.
(4) No construction business is a small business if its
annual sales and receipts exceed $14,000,000.
(c) Fair proportion. For the purpose of subsection (a), for
State agencies of the executive branch, a fair proportion of
construction contracts shall be no less than 25% nor more than
40% of the annual total contracts for construction.
(d) Withdrawal of designation. A small business set-aside
designation may be withdrawn by the purchasing agency when
deemed in the best interests of the State. Upon withdrawal, all
bids or offers shall be rejected, and the bidders or offerors
shall be notified of the reason for rejection. The contract
shall then be awarded in accordance with this Code without the
designation of small business set-aside.
(e) Small business specialist. The chief procurement
officer shall designate a State purchasing officer who will be
responsible for engaging an experienced contract negotiator to
serve as its small business specialist, whose duties shall
include:

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(1) Compiling and maintaining a comprehensive list of
potential small contractors. In this duty, he or she shall
cooperate with the Federal Small Business Administration
in locating potential sources for various products and
services.
(2) Assisting small businesses in complying with the
procedures for bidding on State contracts.
(3) Examining requests from State agencies for the
purchase of property or services to help determine which
invitations to bid are to be designated small business
set-asides.
(4) Making recommendations to the chief procurement
officer for the simplification of specifications and terms
in order to increase the opportunities for small business
participation.
(5) Assisting in investigations by purchasing agencies
to determine the responsibility of bidders or offerors on
small business set-asides.
(f) Small business annual report. The State purchasing
officer designated under subsection (e) shall annually before
December 1 report in writing to the General Assembly concerning
the awarding of contracts to small businesses. The report shall
include the total value of awards made in the preceding fiscal
year under the designation of small business set-aside. The
report shall also include the total value of awards made to
businesses owned by minorities, women females, and persons with

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disabilities, as defined in the Business Enterprise for
Minorities, Women Females, and Persons with Disabilities Act,
in the preceding fiscal year under the designation of small
business set-aside.
The requirement for reporting to the General Assembly shall
be satisfied by filing copies of the report as required by
Section 3.1 of the General Assembly Organization Act.
(Source: P.A. 98-1076, eff. 1-1-15.)
(30 ILCS 500/45-57)
Sec. 45-57. Veterans.
(a) Set-aside goal. It is the goal of the State to promote
and encourage the continued economic development of small
businesses owned and controlled by qualified veterans and that
qualified service-disabled veteran-owned small businesses
(referred to as SDVOSB) and veteran-owned small businesses
(referred to as VOSB) participate in the State's procurement
process as both prime contractors and subcontractors. Not less
than 3% of the total dollar amount of State contracts, as
defined by the Director of Central Management Services, shall
be established as a goal to be awarded to SDVOSB and VOSB. That
portion of a contract under which the contractor subcontracts
with a SDVOSB or VOSB may be counted toward the goal of this
subsection. The Department of Central Management Services
shall adopt rules to implement compliance with this subsection
by all State agencies.

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(b) Fiscal year reports. By each September 1, each chief
procurement officer shall report to the Department of Central
Management Services on all of the following for the immediately
preceding fiscal year, and by each March 1 the Department of
Central Management Services shall compile and report that
information to the General Assembly:
(1) The total number of VOSB, and the number of SDVOSB,
who submitted bids for contracts under this Code.
(2) The total number of VOSB, and the number of SDVOSB,
who entered into contracts with the State under this Code
and the total value of those contracts.
(c) Yearly review and recommendations. Each year, each
chief procurement officer shall review the progress of all
State agencies under its jurisdiction in meeting the goal
described in subsection (a), with input from statewide
veterans' service organizations and from the business
community, including businesses owned by qualified veterans,
and shall make recommendations to be included in the Department
of Central Management Services' report to the General Assembly
regarding continuation, increases, or decreases of the
percentage goal. The recommendations shall be based upon the
number of businesses that are owned by qualified veterans and
on the continued need to encourage and promote businesses owned
by qualified veterans.
(d) Governor's recommendations. To assist the State in
reaching the goal described in subsection (a), the Governor

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shall recommend to the General Assembly changes in programs to
assist businesses owned by qualified veterans.
(e) Definitions. As used in this Section:
"Armed forces of the United States" means the United States
Army, Navy, Air Force, Marine Corps, Coast Guard, or service in
active duty as defined under 38 U.S.C. Section 101. Service in
the Merchant Marine that constitutes active duty under Section
401 of federal Public Act 95-202 shall also be considered
service in the armed forces for purposes of this Section.
"Certification" means a determination made by the Illinois
Department of Veterans' Affairs and the Department of Central
Management Services that a business entity is a qualified
service-disabled veteran-owned small business or a qualified
veteran-owned small business for whatever purpose. A SDVOSB or
VOSB owned and controlled by women females, minorities, or
persons with disabilities, as those terms are defined in
Section 2 of the Business Enterprise for Minorities, Women
Females, and Persons with Disabilities Act, may also select and
designate whether that business is to be certified as a
"women-owned female-owned business", "minority-owned
business", or "business owned by a person with a disability",
as defined in Section 2 of the Business Enterprise for
Minorities, Women Females, and Persons with Disabilities Act.
"Control" means the exclusive, ultimate, majority, or sole
control of the business, including but not limited to capital
investment and all other financial matters, property,

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acquisitions, contract negotiations, legal matters,
officer-director-employee selection and comprehensive hiring,
operation 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 business, and control shall not include simple
majority or absentee ownership.
"Qualified service-disabled veteran" means a veteran who
has been found to have 10% or more service-connected disability
by the United States Department of Veterans Affairs or the
United States Department of Defense.
"Qualified service-disabled veteran-owned small business"
or "SDVOSB" means a small business (i) that is at least 51%
owned by one or more qualified service-disabled veterans living
in Illinois or, in the case of a corporation, at least 51% of
the stock of which is owned by one or more qualified
service-disabled veterans living in Illinois; (ii) that has its
home office in Illinois; and (iii) for which items (i) and (ii)
are factually verified annually by the Department of Central
Management Services.

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"Qualified veteran-owned small business" or "VOSB" means a
small business (i) that is at least 51% owned by one or more
qualified veterans living in Illinois or, in the case of a
corporation, at least 51% of the stock of which is owned by one
or more qualified veterans living in Illinois; (ii) that has
its home office in Illinois; and (iii) for which items (i) and
(ii) are factually verified annually by the Department of
Central Management Services.
"Service-connected disability" means a disability incurred
in the line of duty in the active military, naval, or air
service as described in 38 U.S.C. 101(16).
"Small 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 Department of Central
Management Services for certification for a particular
contract if the firm can demonstrate that the contract would
have significant impact on SDVOSB or VOSB as suppliers or
subcontractors or in employment of veterans or
service-disabled veterans.
"State agency" has the same meaning as in Section 2 of the
Business Enterprise for Minorities, Women Females, and Persons
with Disabilities Act.
"Time of hostilities with a foreign country" means any
period of time in the past, present, or future during which a
declaration of war by the United States Congress has been or is

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in effect or during which an emergency condition has been or is
in effect that is recognized by the issuance of a Presidential
proclamation or a Presidential executive order and in which the
armed forces expeditionary medal or other campaign service
medals are awarded according to Presidential executive order.
"Veteran" means a person who (i) has been a member of the
armed forces of the United States or, while a citizen of the
United States, was a member of the armed forces of allies of
the United States in time of hostilities with a foreign country
and (ii) has served under one or more of the following
conditions: (a) the veteran served a total of at least 6
months; (b) the veteran served for the duration of hostilities
regardless of the length of the engagement; (c) the veteran was
discharged on the basis of hardship; or (d) the veteran was
released from active duty because of a service connected
disability and was discharged under honorable conditions.
(f) Certification program. The Illinois Department of
Veterans' Affairs and the Department of Central Management
Services shall work together to devise a certification
procedure to assure that businesses taking advantage of this
Section are legitimately classified as qualified
service-disabled veteran-owned small businesses or qualified
veteran-owned small businesses.
(g) Penalties.
(1) Administrative penalties. The chief procurement
officers appointed pursuant to Section 10-20 shall suspend

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any person who commits a violation of Section 17-10.3 or
subsection (d) of Section 33E-6 of the Criminal Code of
2012 relating to this Section from bidding on, or
participating as a contractor, subcontractor, or supplier
in, any State contract or project for a period of not less
than 3 years, and, if the person is certified as a
service-disabled veteran-owned small business or a
veteran-owned small business, then the Department shall
revoke the business's certification for a period of not
less than 3 years. An additional or subsequent violation
shall extend the periods of suspension and revocation for a
period of not less than 5 years. The suspension and
revocation shall apply to the principals of the business
and any subsequent business formed or financed by, or
affiliated with, those principals.
(2) Reports of violations. Each State agency shall
report any alleged violation of Section 17-10.3 or
subsection (d) of Section 33E-6 of the Criminal Code of
2012 relating to this Section to the chief procurement
officers appointed pursuant to Section 10-20. The chief
procurement officers appointed pursuant to Section 10-20
shall subsequently report all such alleged violations to
the Attorney General, who shall determine whether to bring
a civil action against any person for the violation.
(3) List of suspended persons. The chief procurement
officers appointed pursuant to Section 10-20 shall monitor

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the status of all reported violations of Section 17-10.3 or
subsection (d) of Section 33E-6 of the Criminal Code of
1961 or the Criminal Code of 2012 relating to this Section
and shall maintain and make available to all State agencies
a central listing of all persons that committed violations
resulting in suspension.
(4) Use of suspended persons. During the period of a
person's suspension under paragraph (1) of this
subsection, a State agency shall not enter into any
contract with that person or with any contractor using the
services of that person as a subcontractor.
(5) Duty to check list. Each State agency shall check
the central listing provided by the chief procurement
officers appointed pursuant to Section 10-20 under
paragraph (3) of this subsection to verify that a person
being awarded a contract by that State agency, or to be
used as a subcontractor or supplier on a contract being
awarded by that State agency, is not under suspension
pursuant to paragraph (1) of this subsection.
(Source: P.A. 97-260, eff. 8-5-11; 97-1150, eff. 1-25-13;
98-307, eff. 8-12-13; 98-1076, eff. 1-1-15.)
(30 ILCS 500/45-65)
Sec. 45-65. Additional preferences. This Code is subject to
applicable provisions of:
(1) the Public Purchases in Other States Act;

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(2) the Illinois Mined Coal Act;
(3) the Steel Products Procurement Act;
(4) the Veterans Preference Act;
(5) the Business Enterprise for Minorities, Women
Females, and Persons with Disabilities Act; and
(6) the Procurement of Domestic Products Act.
(Source: P.A. 93-954, eff. 1-1-05.)
Section 60. The Design-Build Procurement Act is amended by
changing Sections 5, 15, 30, and 46 as follows:
(30 ILCS 537/5)
(Section scheduled to be repealed on July 1, 2019)
Sec. 5. Legislative policy. It is the intent of the
General Assembly that the Capital Development Board be allowed
to use the design-build delivery method for public projects if
it is shown to be in the State's best interest for that
particular project. It shall be the policy of the Capital
Development Board in the procurement of design-build services
to publicly announce all requirements for design-build
services and to procure these services on the basis of
demonstrated competence and qualifications and with due regard
for the principles of competitive selection.
The Capital Development Board shall, prior to issuing
requests for proposals, promulgate and publish procedures for
the solicitation and award of contracts pursuant to this Act.

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The Capital Development Board shall, for each public
project or projects permitted under this Act, make a written
determination, including a description as to the particular
advantages of the design-build procurement method, that it is
in the best interests of this State to enter into a
design-build contract for the project or projects. In making
that determination, the following factors shall be considered:
(1) The probability that the design-build procurement
method will be in the best interests of the State by
providing a material savings of time or cost over the
design-bid-build or other delivery system.
(2) The type and size of the project and its
suitability to the design-build procurement method.
(3) The ability of the State construction agency to
define and provide comprehensive scope and performance
criteria for the project.
No State construction agency may use a design-build
procurement method unless the agency determines in writing that
the project will comply with the disadvantaged business and
equal employment practices of the State as established in the
Business Enterprise for Minorities, Women Females, and Persons
with Disabilities Act and Section 2-105 of the Illinois Human
Rights Act.
The Capital Development Board shall within 15 days after
the initial determination provide an advisory copy to the
Procurement Policy Board and maintain the full record of

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determination for 5 years.
(Source: P.A. 94-716, eff. 12-13-05.)
(30 ILCS 537/15)
(Section scheduled to be repealed on July 1, 2019)
Sec. 15. Solicitation of proposals.
(a) When the State construction agency elects to use the
design-build delivery method, it must issue a notice of intent
to receive requests for proposals for the project at least 14
days before issuing the request for the proposal. The State
construction agency must publish the advance notice in the
official procurement bulletin of the State or the professional
services bulletin of the State construction agency, if any. The
agency is encouraged to use publication of the notice in
related construction industry service publications. A brief
description of the proposed procurement must be included in the
notice. The State construction agency must provide a copy of
the request for proposal to any party requesting a copy.
(b) The request for proposal shall be prepared for each
project and must contain, without limitation, the following
information:
(1) The name of the State construction agency.
(2) A preliminary schedule for the completion of the
contract.
(3) The proposed budget for the project, the source of
funds, and the currently available funds at the time the

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request for proposal is submitted.
(4) Prequalification criteria for design-build
entities wishing to submit proposals. The State
construction agency shall include, at a minimum, its normal
prequalification, licensing, registration, and other
requirements, but nothing contained herein precludes the
use of additional prequalification criteria by the State
construction agency.
(5) Material requirements of the contract, including
but not limited to, the proposed terms and conditions,
required performance and payment bonds, insurance, and the
entity's plan to comply with the utilization goals for
business enterprises established in the Business
Enterprise for Minorities, Women Females, and Persons with
Disabilities Act, and with Section 2-105 of the Illinois
Human Rights Act.
(6) The performance criteria.
(7) The evaluation criteria for each phase of the
solicitation.
(8) The number of entities that will be considered for
the technical and cost evaluation phase.
(c) The State construction agency may include any other
relevant information that it chooses to supply. The
design-build entity shall be entitled to rely upon the accuracy
of this documentation in the development of its proposal.
(d) The date that proposals are due must be at least 21

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calendar days after the date of the issuance of the request for
proposal. In the event the cost of the project is estimated to
exceed $10 million, then the proposal due date must be at least
28 calendar days after the date of the issuance of the request
for proposal. The State construction agency shall include in
the request for proposal a minimum of 30 days to develop the
Phase II submissions after the selection of entities from the
Phase I evaluation is completed.
(Source: P.A. 94-716, eff. 12-13-05.)
(30 ILCS 537/30)
(Section scheduled to be repealed on July 1, 2019)
Sec. 30. Procedures for Selection.
(a) The State construction agency must use a two-phase
procedure for the selection of the successful design-build
entity. Phase I of the procedure will evaluate and shortlist
the design-build entities based on qualifications, and Phase II
will evaluate the technical and cost proposals.
(b) The State construction agency shall include in the
request for proposal the evaluating factors to be used in Phase
I. These factors are in addition to any prequalification
requirements of design-build entities that the agency has set
forth. Each request for proposal shall establish the relative
importance assigned to each evaluation factor and subfactor,
including any weighting of criteria to be employed by the State
construction agency. The State construction agency must

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maintain a record of the evaluation scoring to be disclosed in
event of a protest regarding the solicitation.
The State construction agency shall include the following
criteria in every Phase I evaluation of design-build entities:
(1) experience of personnel; (2) successful experience with
similar project types; (3) financial capability; (4)
timeliness of past performance; (5) experience with similarly
sized projects; (6) successful reference checks of the firm;
(7) commitment to assign personnel for the duration of the
project and qualifications of the entity's consultants; and (8)
ability or past performance in meeting or exhausting good faith
efforts to meet the utilization goals for business enterprises
established in the Business Enterprise for Minorities, Women
Females, and Persons with Disabilities Act and with Section
2-105 of the Illinois Human Rights Act. The State construction
agency may include any additional relevant criteria in Phase I
that it deems necessary for a proper qualification review.
The State construction agency may not consider any
design-build entity for evaluation or award if the entity has
any pecuniary interest in the project or has other
relationships or circumstances, including but not limited to,
long-term leasehold, mutual performance, or development
contracts with the State construction agency, that may give the
design-build entity a financial or tangible advantage over
other design-build entities in the preparation, evaluation, or
performance of the design-build contract or that create the

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appearance of impropriety. No proposal shall be considered that
does not include an entity's plan to comply with the
requirements established in the Business Enterprise for
Minorities, Women Females, and Persons with Disabilities Act,
for both the design and construction areas of performance, and
with Section 2-105 of the Illinois Human Rights Act.
Upon completion of the qualifications evaluation, the
State construction agency shall create a shortlist of the most
highly qualified design-build entities. The State construction
agency, in its discretion, is not required to shortlist the
maximum number of entities as identified for Phase II
evaluation, provided however, no less than 2 design-build
entities nor more than 6 are selected to submit Phase II
proposals.
The State construction agency shall notify the entities
selected for the shortlist in writing. This notification shall
commence the period for the preparation of the Phase II
technical and cost evaluations. The State construction agency
must allow sufficient time for the shortlist entities to
prepare their Phase II submittals considering the scope and
detail requested by the State agency.
(c) The State construction agency shall include in the
request for proposal the evaluating factors to be used in the
technical and cost submission components of Phase II. Each
request for proposal shall establish, for both the technical
and cost submission components of Phase II, the relative

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importance assigned to each evaluation factor and subfactor,
including any weighting of criteria to be employed by the State
construction agency. The State construction agency must
maintain a record of the evaluation scoring to be disclosed in
event of a protest regarding the solicitation.
The State construction agency shall include the following
criteria in every Phase II technical evaluation of design-build
entities: (1) compliance with objectives of the project; (2)
compliance of proposed services to the request for proposal
requirements; (3) quality of products or materials proposed;
(4) quality of design parameters; (5) design concepts; (6)
innovation in meeting the scope and performance criteria; and
(7) constructability of the proposed project. The State
construction agency may include any additional relevant
technical evaluation factors it deems necessary for proper
selection.
The State construction agency shall include the following
criteria in every Phase II cost evaluation: the total project
cost, the construction costs, and the time of completion. The
State construction agency may include any additional relevant
technical evaluation factors it deems necessary for proper
selection. The total project cost criteria weighing factor
shall be 25%.
The State construction agency shall directly employ or
retain a licensed design professional to evaluate the technical
and cost submissions to determine if the technical submissions

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are in accordance with generally accepted industry standards.
Upon completion of the technical submissions and cost
submissions evaluation, the State construction agency may
award the design-build contract to the highest overall ranked
entity.
(Source: P.A. 96-21, eff. 6-30-09.)
(30 ILCS 537/46)
(Section scheduled to be repealed on July 1, 2019)
Sec. 46. Reports and evaluation. At the end of every 6
month period following the contract award, and again prior to
final contract payout and closure, a selected design-build
entity shall detail, in a written report submitted to the State
agency, its efforts and success in implementing the entity's
plan to comply with the utilization goals for business
enterprises established in the Business Enterprise for
Minorities, Women Females, and Persons with Disabilities Act
and the provisions of Section 2-105 of the Illinois Human
Rights Act. If the entity's performance in implementing the
plan falls short of the performance measures and outcomes set
forth in the plans submitted by the entity during the proposal
process, the entity shall, in a detailed written report, inform
the General Assembly and the Governor whether and to what
degree each design-build contract authorized under this Act
promoted the utilization goals for business enterprises
established in the Business Enterprise for Minorities, Women

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Females, and Persons with Disabilities Act and the provisions
of Section 2-105 of the Illinois Human Rights Act.
(Source: P.A. 94-716, eff. 12-13-05.)
Section 65. The Project Labor Agreements Act is amended by
changing Sections 25 and 37 as follows:
(30 ILCS 571/25)
Sec. 25. Contents of agreement. Pursuant to this Act, any
project labor agreement shall:
(a) Set forth effective, immediate, and mutually
binding procedures for resolving jurisdictional labor
disputes and grievances arising before the completion of
work.
(b) Contain guarantees against strikes, lockouts, or
similar actions.
(c) Ensure a reliable source of skilled and experienced
labor.
(d) For minorities and women females as defined under
the Business Enterprise for Minorities, Women Females, and
Persons with Disabilities Act, set forth goals for
apprenticeship hours to be performed by minorities and
women females and set forth goals for total hours to be
performed by underrepresented minorities and women
females.
(e) Permit the selection of the lowest qualified

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responsible bidder, without regard to union or non-union
status at other construction sites.
(f) Bind all contractors and subcontractors on the
public works project through the inclusion of appropriate
bid specifications in all relevant bid documents.
(g) Include such other terms as the parties deem
appropriate.
(Source: P.A. 97-199, eff. 7-27-11.)
(30 ILCS 571/37)
Sec. 37. Quarterly report; annual report. A State
department, agency, authority, board, or instrumentality that
has a project labor agreement in connection with a public works
project shall prepare a quarterly report that includes
workforce participation under the agreement by minorities and
women females as defined under the Business Enterprise for
Minorities, Women Females, and Persons with Disabilities Act.
These reports shall be submitted to the Illinois Department of
Labor. The Illinois Department of Labor shall submit to the
General Assembly and the Governor an annual report that details
the number of minorities and women females employed under all
public labor agreements within the State.
(Source: P.A. 97-199, eff. 7-27-11.)
Section 70. The Business Enterprise for Minorities,
Females, and Persons with Disabilities Act is amended by

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changing Sections 0.01, 1, 2, 4, 4f, 5, 6, 6a, 7, 8, 8a, 8b, and
8f and by adding Sections 8g, 8h, and 8i as follows:
(30 ILCS 575/0.01) (from Ch. 127, par. 132.600)
(Section scheduled to be repealed on June 30, 2020)
Sec. 0.01. Short title. This Act may be cited as the
Business Enterprise for Minorities, Women Females, and Persons
with Disabilities Act.
(Source: P.A. 88-597, eff. 8-28-94.)
(30 ILCS 575/1) (from Ch. 127, par. 132.601)
(Section scheduled to be repealed on June 30, 2020)
Sec. 1. Purpose. The State of Illinois declares that it is
the public policy of the State to promote and encourage the
continuing economic development of minority-owned minority and
women-owned female owned and operated businesses and that
minority-owned minority and women-owned female owned and
operated businesses participate in the State's procurement
process as both prime and subcontractors. The State of Illinois
has observed that the goals established in this Act have served
to increase the participation of minority and women female
businesses in contracts awarded by the State. The State hereby
declares that the adoption of this amendatory Act of 1989 shall
serve the State's continuing interest in promoting open access
in the awarding of State contracts to disadvantaged small
business enterprises victimized by discriminatory practices.

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Furthermore, after reviewing evidence of the high level of
attainment of the 10% minimum goals established under this Act,
and, after considering evidence that minority and women female
businesses, as established in 1982, constituted and continue to
constitute more than 10% of the businesses operating in this
State, the State declares that the continuation of such 10%
minimum goals under this amendatory Act of 1989 is a narrowly
tailored means of promoting open access and thus the further
growth and development of minority and women female businesses.
The State of Illinois further declares that it is the
public policy of this State to promote and encourage the
continuous economic development of businesses owned by persons
with disabilities and a 2% contracting goal is a narrowly
tailored means of promoting open access and thus the further
growth and development of those businesses.
(Source: P.A. 88-597, eff. 8-28-94.)
(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

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having origins in any of the original peoples of North
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 Female" 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).

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(2.1) "Person with a disability" means a person with a
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,

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quadriplegia and other spinal cord conditions,
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 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 Female owned business" means a
business which is at least 51% owned by one or more women
females, or, in the case of a corporation, at least 51% of
the stock in which is owned by one or more women females;
and the management and daily business operations of which

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are controlled by one or more of the women females who own
it.
(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 Females, 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

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contracts entered into by a State agency or public
institution of higher education for the repair,
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

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universities, colleges, and community colleges now or
hereafter established or authorized by the General
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 female, or
person with a disability for whatever purpose. A business
owned and controlled by women females shall be certified as
a "woman-owned female owned business". A business owned and
controlled by women females who are also minorities shall
be certified as both a "women-owned female owned business"
and a "minority-owned 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

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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
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 females, or
persons with disabilities as suppliers or subcontractors
or in employment of minorities, women females, 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.

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(B) When a business is owned at least 51% by any
combination of minority persons, women females, or persons with
disabilities, even though none of the 3 classes alone holds at
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. 98-95, eff. 7-17-13; 99-143, eff. 7-27-15;
99-462, eff. 8-25-15; 99-642, eff. 7-28-16.)
(30 ILCS 575/4) (from Ch. 127, par. 132.604)
(Section scheduled to be repealed on June 30, 2020)
Sec. 4. Award of State contracts.
(a) Except as provided in subsections (b) and (c), not less
than 20% of the total dollar amount of State contracts, as
defined by the Secretary of the Council and approved by the
Council, shall be established as an aspirational goal to be
awarded to businesses owned by minorities, women females, and
persons with disabilities; provided, however, that of the total
amount of all State contracts awarded to businesses owned by
minorities, women females, and persons with disabilities
pursuant to this Section, contracts representing at least 11%
shall be awarded to businesses owned by minorities, contracts
representing at least 7% shall be awarded to women-owned

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female-owned businesses, and contracts representing at least
2% shall be awarded to businesses owned by persons with
disabilities.
The above percentage relates to the total dollar amount of
State contracts during each State fiscal year, calculated by
examining independently each type of contract for each agency
or public institutions of higher education which lets such
contracts. Only that percentage of arrangements which
represents the participation of businesses owned by
minorities, women females, and persons with disabilities on
such contracts shall be included.
(b) In the case of State construction contracts, the
provisions of subsection (a) requiring a portion of State
contracts to be awarded to businesses owned and controlled by
persons with disabilities do not apply. The following
aspirational goals are established for State construction
contracts: not less than 20% of the total dollar amount of
State construction contracts is established as a goal to be
awarded to minority-owned minority and women-owned female
owned businesses, and contracts representing 50% of the amount
of all State construction contracts awarded to minority and
female owned businesses shall be awarded to female owned
businesses.
(c) In the case of all work undertaken by the University of
Illinois related to the planning, organization, and staging of
the games, the University of Illinois shall establish a goal of

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awarding not less than 25% of the annual dollar value of all
contracts, purchase orders, and other agreements (collectively
referred to as "the contracts") to minority-owned businesses or
businesses owned by a person with a disability and 5% of the
annual dollar value the contracts to women-owned female-owned
businesses. For purposes of this subsection, the term "games"
has the meaning set forth in the Olympic Games and Paralympic
Games (2016) Law.
(d) Within one year after April 28, 2009 (the effective
date of Public Act 96-8), the Department of Central Management
Services shall conduct a social scientific study that measures
the impact of discrimination on minority and women female
business development in Illinois. Within 18 months after April
28, 2009 (the effective date of Public Act 96-8), the
Department shall issue a report of its findings and any
recommendations on whether to adjust the goals for minority and
women female participation established in this Act. Copies of
this report and the social scientific study shall be filed with
the Governor and the General Assembly.
(e) Except as permitted under this Act or as otherwise
mandated by federal law or regulation, those who submit bids or
proposals for State construction contracts subject to the
provisions of this Act, whose bids or proposals are successful
and include a completed utilization plan but that fail to meet
the goals set forth in subsection (b) of this Section, shall be
notified of that deficiency and shall be afforded a period not

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to exceed 5 10 days from the date of notification to cure that
deficiency in the bid or proposal. The deficiency in the bid or
proposal may only be cured by contracting with additional
subcontractors who are owned by minorities or women females,
but in no case shall an identified subcontractor with a
certification made pursuant to this Act be terminated from the
contract without the written consent of the State agency or
public institution of higher education entering into the
contract.
(f) Non-construction solicitations that include Business
Enterprise Program participation goals shall include the
utilization plan in the solicitation. Utilization plans are due
at the time of bid or offer submission. Failure to complete and
include a utilization plan, including documentation
demonstrating good faith effort when requesting a waiver, shall
render the bid or offer non-responsive.
(Source: P.A. 99-462, eff. 8-25-15; 99-514, eff. 6-30-16.)
(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 to use businesses
owned by minorities, women females, and persons with
disabilities in the area of goods and services, including, but

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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 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 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 females, 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 females, 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

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asset managers of the State funds be minorities, women
females, 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
aspirational goal to use such firms owned by minorities,
women females, and persons with disabilities as defined by
this Act and lawyers who are minorities, women females, 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 females, 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

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businesses owned by minorities, women females, or persons
with disabilities for the purposes of this Section.
(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,
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

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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
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 shall adopt policies that identify its plan and
implementation procedures for increasing the use of service
firms owned by minorities, women females, 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 females, and persons with disabilities,

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including encouraging non-minority-owned non-minority owned
firms to use other service firms owned by minorities, women
females, 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 females, and persons
with disabilities, and (iv) include the 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 females, 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

10000SB0262sam003 - 92 - LRB100 05183 MLM 25333 a
minorities, women females, 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.
(D) The names of service firms, the percentage and
total dollar amount paid for services by category to firms
owned by minorities, women females, 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 females, 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 females, or persons with disabilities, (iii) the policy
of the community college district concerning certified

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vendors, (iv) the certifications recognized by the community
college district for determining whether a business is owned or
controlled by a minority, woman female, 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
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. 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 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
Enterprise Council meetings. Time shall be allotted for the

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Council to receive, review, and discuss the progress of the use
of service firms owned by minorities, women females, 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.)
(30 ILCS 575/5) (from Ch. 127, par. 132.605)
(Section scheduled to be repealed on June 30, 2020)
Sec. 5. Business Enterprise Council.
(1) To help implement, monitor and enforce the goals of
this Act, there is created the Business Enterprise Council for
Minorities, Women Females, and Persons with Disabilities,
hereinafter referred to as the Council, composed of the
Secretary of Human Services and the Directors of the Department
of Human Rights, the Department of Commerce and Economic
Opportunity, the Department of Central Management Services,
the Department of Transportation and the Capital Development

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Board, or their duly appointed representatives. Ten
individuals representing businesses that are minority-owned
minority or women-owned female owned or owned by persons with
disabilities, 2 individuals representing the business
community, and a representative of public institutions of
higher education shall be appointed by the Governor. These
members shall serve 2 year terms and shall be eligible for
reappointment. Any vacancy occurring on the Council shall also
be filled by the Governor. Any member appointed to fill a
vacancy occurring prior to the expiration of the term for which
his predecessor was appointed shall be appointed for the
remainder of such term. Members of the Council shall serve
without compensation but shall be reimbursed for any ordinary
and necessary expenses incurred in the performance of their
duties.
The Director of the Department of Central Management
Services shall serve as the Council chairperson and shall
select, subject to approval of the council, a Secretary
responsible for the operation of the program who shall serve as
the Division Manager of the Business Enterprise for Minorities,
Women Females, and Persons with Disabilities Division of the
Department of Central Management Services.
The Director of each State agency and the chief executive
officer of each public institutions of higher education shall
appoint a liaison to the Council. The liaison shall be
responsible for submitting to the Council any reports and

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documents necessary under this Act.
(2) The Council's authority and responsibility shall be to:
(a) Devise a certification procedure to assure that
businesses taking advantage of this Act are legitimately
classified as businesses owned by minorities, women
females, or persons with disabilities.
(b) Maintain a list of all businesses legitimately
classified as businesses owned by minorities, women
females, or persons with disabilities to provide to State
agencies and public institutions of higher education.
(c) Review rules and regulations for the
implementation of the program for businesses owned by
minorities, women females, and persons with disabilities.
(d) Review compliance plans submitted by each State
agency and public institutions of higher education
pursuant to this Act.
(e) Make annual reports as provided in Section 8f to
the Governor and the General Assembly on the status of the
program.
(f) Serve as a central clearinghouse for information on
State contracts, including the maintenance of a list of all
pending State contracts upon which businesses owned by
minorities, women females, and persons with disabilities
may bid. At the Council's discretion, maintenance of the
list may include 24-hour electronic access to the list
along with the bid and application information.

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(g) Establish a toll free telephone number to
facilitate information requests concerning the
certification process and pending contracts.
(3) No premium bond rate of a surety company for a bond
required of a business owned by a minority, woman female, or
person with a disability bidding for a State contract shall be
higher than the lowest rate charged by that surety company for
a similar bond in the same classification of work that would be
written for a business not owned by a minority, woman female,
or person with a disability.
(4) Any Council member who has direct financial or personal
interest in any measure pending before the Council shall
disclose this fact to the Council and refrain from
participating in the determination upon such measure.
(5) The Secretary shall have the following duties and
responsibilities:
(a) To be responsible for the day-to-day operation of
the Council.
(b) To serve as a coordinator for all of the State's
programs for businesses owned by minorities, women
females, and persons with disabilities and as the
information and referral center for all State initiatives
for businesses owned by minorities, women females, and
persons with disabilities.
(c) To establish an enforcement procedure whereby the
Council may recommend to the appropriate State legal

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officer that the State exercise its legal remedies which
shall include (1) termination of the contract involved, (2)
prohibition of participation by the respondent in public
contracts for a period not to exceed 3 years one year, (3)
imposition of a penalty not to exceed any profit acquired
as a result of violation, or (4) any combination thereof.
Such procedures shall require prior approval by Council.
(d) To devise appropriate policies, regulations and
procedures for including participation by businesses owned
by minorities, women females, and persons with
disabilities as prime contractors including, but not
limited to, (i) encouraging the inclusions of qualified
businesses owned by minorities, women females, and persons
with disabilities on solicitation lists, (ii)
investigating the potential of blanket bonding programs
for small construction jobs, (iii) investigating and
making recommendations concerning the use of the sheltered
market process.
(e) To devise procedures for the waiver of the
participation goals in appropriate circumstances.
(f) To accept donations and, with the approval of the
Council or the Director of Central Management Services,
grants related to the purposes of this Act; to conduct
seminars related to the purpose of this Act and to charge
reasonable registration fees; and to sell directories,
vendor lists and other such information to interested

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parties, except that forms necessary to become eligible for
the program shall be provided free of charge to a business
or individual applying for the program.
(Source: P.A. 99-462, eff. 8-25-15.)
(30 ILCS 575/6) (from Ch. 127, par. 132.606)
(Section scheduled to be repealed on June 30, 2020)
Sec. 6. Agency compliance plans. Each State agency and
public institutions of higher education under the jurisdiction
of this Act shall file with the Council an annual compliance
plan which shall outline the goals of the State agency or
public institutions of higher education for contracting with
businesses owned by minorities, women females, and persons with
disabilities for the then current fiscal year, the manner in
which the agency intends to reach these goals and a timetable
for reaching these goals. The Council shall review and approve
the plan of each State agency and public institutions of higher
education and may reject any plan that does not comply with
this Act or any rules or regulations promulgated pursuant to
this Act.
(a) The compliance plan shall also include, but not be
limited to, (1) a policy statement, signed by the State agency
or public institution of higher education head, expressing a
commitment to encourage the use of businesses owned by
minorities, women females, and persons with disabilities, (2)
the designation of the liaison officer provided for in Section

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5 of this Act, (3) procedures to distribute to potential
contractors and vendors the list of all businesses legitimately
classified as businesses owned by minorities, women females,
and persons with disabilities and so certified under this Act,
(4) procedures to set separate contract goals on specific prime
contracts and purchase orders with subcontracting
possibilities based upon the type of work or services and
subcontractor availability, (5) procedures to assure that
contractors and vendors make good faith efforts to meet
contract goals, (6) procedures for contract goal exemption,
modification and waiver, and (7) the delineation of separate
contract goals for businesses owned by minorities, women
females, and persons with disabilities.
(b) Approval of the compliance plans shall include such
delegation of responsibilities to the requesting State agency
or public institution of higher education as the Council deems
necessary and appropriate to fulfill the purpose of this Act.
Such responsibilities may include, but need not be limited to
those outlined in subsections (1), (2) and (3) of Section 7,
and paragraph (a) of Section 8 , and Section 8a of this Act.
(c) Each State agency and public institution of higher
education under the jurisdiction of this Act shall file with
the Council an annual report of its utilization of businesses
owned by minorities, women females, and persons with
disabilities during the preceding fiscal year including lapse
period spending and a mid-fiscal year report of its utilization

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to date for the then current fiscal year. The reports shall
include a self-evaluation of the efforts of the State agency or
public institution of higher education to meet its goals under
the Act.
(d) Notwithstanding any provisions to the contrary in this
Act, any State agency or public institution of higher education
which administers a construction program, for which federal law
or regulations establish standards and procedures for the
utilization of minority-owned and women-owned businesses and
disadvantaged businesses minority, disadvantaged, and
female-owned business, shall implement a disadvantaged
business enterprise program to include minority-owned and
women-owned businesses and disadvantaged businesses minority,
disadvantaged and female-owned businesses, using the federal
standards and procedures for the establishment of goals and
utilization procedures for the State-funded, as well as the
federally assisted, portions of the program. In such cases,
these goals shall not exceed those established pursuant to the
relevant federal statutes or regulations. Notwithstanding the
provisions of Section 8b, the Illinois Department of
Transportation is authorized to establish sheltered markets
for the State-funded portions of the program consistent with
federal law and regulations. Additionally, a compliance plan
which is filed by such State agency or public institution of
higher education pursuant to this Act, which incorporates
equivalent terms and conditions of its federally-approved

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compliance plan, shall be deemed approved under this Act.
(Source: P.A. 99-462, eff. 8-25-15.)
(30 ILCS 575/6a) (from Ch. 127, par. 132.606a)
(Section scheduled to be repealed on June 30, 2020)
Sec. 6a. Notice of contracts to Council. Except in case of
emergency as defined in the Illinois Procurement Code, or as
authorized by rule promulgated by the Department of Central
Management Services, each agency and public institution of
higher education under the jurisdiction of this Act shall
notify the Secretary of the Council of proposed contracts for
professional and artistic services and provide the information
in the form and detail as required by rule promulgated by the
Department of Central Management Services. Notification may be
made through direct written communication to the Secretary to
be received at least 14 days before execution of the contract
(or the solicitation response date, if applicable) or by
advertising in the official State newspaper for at least 3
days, the last of which must be at least 10 days after the
first publication. The agency or public institution of higher
education must consider any vendor referred by the Secretary
before execution of the contract. The provisions of this
Section shall not apply to any State agency or public
institution of higher education that has awarded contracts for
professional and artistic services to businesses owned by
minorities, women females, and persons with disabilities

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totaling totalling in the aggregate $40,000,000 or more during
the preceding fiscal year.
(Source: P.A. 99-462, eff. 8-25-15.)
(30 ILCS 575/7) (from Ch. 127, par. 132.607)
(Section scheduled to be repealed on June 30, 2020)
Sec. 7. Exemptions; and waivers; debarment; publication of
data.
(1) Individual contract exemptions. The Council, on its own
initiative or at the request of the affected agency, public
institution of higher education, or recipient of a grant or
loan of State funds of $250,000 or more complying with Section
45 of the State Finance Act, may permit an individual contract
or contract package, (related contracts being bid or awarded
simultaneously for the same project or improvements) be made
wholly or partially exempt from State contracting goals for
businesses owned by minorities, women females, and persons with
disabilities prior to the advertisement for bids or
solicitation of proposals whenever there has been a
determination, reduced to writing and based on the best
information available at the time of the determination, that
there is an insufficient number of businesses owned by
minorities, women females, and persons with disabilities to
ensure adequate competition and an expectation of reasonable
prices on bids or proposals solicited for the individual
contract or contract package in question.

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(2) Class exemptions.
(a) Creation. The Council, on its own initiative or at
the request of the affected agency or public institution of
higher education, may permit an entire class of contracts
be made exempt from State contracting goals for businesses
owned by minorities, women females, and persons with
disabilities whenever there has been a determination,
reduced to writing and based on the best information
available at the time of the determination, that there is
an insufficient number of qualified businesses owned by
minorities, women females, and persons with disabilities
to ensure adequate competition and an expectation of
reasonable prices on bids or proposals within that class.
(b) Limitation. Any such class exemption shall not be
permitted for a period of more than one year at a time.
(3) Waivers. Where a particular contract requires a
contractor to meet a goal established pursuant to this Act, the
contractor shall have the right to request a waiver from such
requirements. The Council shall grant the waiver where the
contractor demonstrates that there has been made a good faith
effort to comply with the goals for participation by businesses
owned by minorities, women females, and persons with
disabilities.
(4) Conflict with other laws. In the event that any State
contract, which otherwise would be subject to the provisions of
this Act, is or becomes subject to federal laws or regulations

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which conflict with the provisions of this Act or actions of
the State taken pursuant hereto, the provisions of the federal
laws or regulations shall apply and the contract shall be
interpreted and enforced accordingly.
(5) Each chief procurement officer, as defined in the
Illinois Procurement Code, shall maintain on his or her
official Internet website a database of waivers granted under
this Section with respect to contracts under his or her
jurisdiction. The database, which shall be updated
periodically as necessary, shall be searchable by contractor
name and by contracting State agency.
(6) Each chief procurement officer, as defined by the
Illinois Procurement Code, shall maintain on its website a list
of all firms that have been debarred as a result of not
achieving the firm's diversity goal.
Each public notice required by law of the award of a State
contract shall include for each bid or offer submitted for that
contract the following: (i) the bidder's or offeror's name,
(ii) the bid amount, (iii) the name or names of the certified
firms identified in the bidder's or offeror's submitted
utilization plan, and (iv) (iii) the bid's amount and
percentage of the contract awarded to businesses owned by
minorities, women, and persons with disabilities identified in
the of disadvantaged business utilization plan , and (iv) the
bid's percentage of business enterprise program utilization
plan.

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(Source: P.A. 99-462, eff. 8-25-15.)
(30 ILCS 575/8) (from Ch. 127, par. 132.608)
(Section scheduled to be repealed on June 30, 2020)
Sec. 8. Enforcement.
(1) The Council shall make such findings, recommendations
and proposals to the Governor as are necessary and appropriate
to enforce this Act. If, as a result of its monitoring
activities, the Council determines that its goals and policies
are not being met by any State agency or public institution of
higher education, the Council may recommend any or all of the
following actions:
(a) Establish enforcement procedures whereby the
Council may recommend to the appropriate State agency,
public institutions of higher education, or law
enforcement officer that legal or administrative remedies
be initiated for violations of contract provisions or rules
issued hereunder or by a contracting State agency or public
institutions of higher education. State agencies and
public institutions of higher education shall be
authorized to adopt remedies for such violations which
shall include (1) termination of the contract involved, (2)
prohibition of participation of the respondents in public
contracts for a period not to exceed one year, (3)
imposition of a penalty not to exceed any profit acquired
as a result of violation, or (4) any combination thereof.

10000SB0262sam003 - 107 - LRB100 05183 MLM 25333 a
(b) If the Council concludes that a compliance plan
submitted under Section 6 is unlikely to produce the
participation goals for businesses owned by minorities,
women females, and persons with disabilities within the
then current fiscal year, the Council may recommend that
the State agency or public institution of higher education
revise its plan to provide additional opportunities for
participation by businesses owned by minorities, women
females, and persons with disabilities. Such recommended
revisions may include, but shall not be limited to, the
following:
(i) assurances of stronger and better focused
solicitation efforts to obtain more businesses owned
by minorities, women females, and persons with
disabilities as potential sources of supply;
(ii) division of job or project requirements, when
economically feasible, into tasks or quantities to
permit participation of businesses owned by
minorities, women females, and persons with
disabilities;
(iii) elimination of extended experience or
capitalization requirements, when programmatically
feasible, to permit participation of businesses owned
by minorities, women females, and persons with
disabilities;
(iv) identification of specific proposed contracts

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as particularly attractive or appropriate for
participation by businesses owned by minorities, women
females, and persons with disabilities, such
identification to result from and be coupled with the
efforts of subparagraphs (i) through (iii);
(v) implementation of those regulations
established for the use of the sheltered market
process.
(2) State agencies and public institutions of higher
education shall review a vendor's compliance with its
utilization plan and the terms of its contract. Without
limitation, a vendor's failure to comply with its contractual
commitments as contained in the utilization plan; failure to
cooperate in providing information regarding its compliance
with its utilization plan; or the provision of false or
misleading information or statements concerning compliance,
certification status, or eligibility of the Business
Enterprise Program-certified vendor, good faith efforts, or
any other material fact or representation shall constitute a
material breach of the contract and entitle the State agency or
public institution of higher education to declare a default,
terminate the contract, or exercise those remedies provided for
in the contract, at law, or in equity.
(3) A vendor shall be in breach of the contract and may be
subject to penalties for failure to meet its diversity
commitments.

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(a) If the Council or its delegate determines, upon
reviewing a particular contract, that the diversity
participation commitments have not been met, a penalty in
the amount of the discrepancy between the amount of the
commitment, as the amount may be amended through change
orders or otherwise over the term of the contract, and the
achieved amount may be applied to the contractor.
(b) Prior to imposing a penalty specified by this
subsection (3), the Council shall notify the contractor of
the fact and amount of the proposed penalty. The contractor
shall have the opportunity to present evidence to the
Council to controvert the fact or amount of the proposed
penalty. Within 15 days of receiving the final decision of
the Council on the matter, and in the event that the final
decision is adverse to the contractor, the contractor may
submit to the Council a written request for a hearing to be
conducted by the legal counsel for the Business Enterprise
Program.
(c) Upon receipt of a timely request for a hearing, the
Council shall institute an action with the legal counsel of
the Business Enterprise Program, which shall conduct the
hearing within 30 days of receiving the request.
(d) The penalty specified by this subsection (3) shall
be imposed either upon expiration of the time period in
which the contractor may seek review by the legal counsel
of the Business Enterprise Program, or upon the legal

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counsel's finding adverse to the contractor, as
applicable.
(e) The Council shall use all funds collected as
penalties under this subsection (3) exclusively for
development of businesses owned by minorities, women, and
persons with disabilities programs and encouragement of
such businesses' participation in the State.
(f) In addition to the penalty specified by this
subsection (d), after a contractor's second failure to meet
diversity commitments, the Council may declare the
contractor ineligible for an award of contracts for a
period of up to 3 years, following the procedures set forth
in paragraphs (b), (c), and (d) of this subsection (3). In
determining whether to declare a contractor ineligible,
the Council shall take into account the contractor's record
for meeting its commitments regarding diversity
participation in contracts with the State.
(4) The decisions of the legal counsel of the Business
Enterprise Program under this Section are final and are subject
to review as final decisions under the provisions of the
Administrative Review Law, and shall only be overturned if the
court finds that they are against the manifest weight of the
evidence.
(Source: P.A. 99-462, eff. 8-25-15.)
(30 ILCS 575/8a) (from Ch. 127, par. 132.608a)

10000SB0262sam003 - 111 - LRB100 05183 MLM 25333 a
(Section scheduled to be repealed on June 30, 2020)
Sec. 8a. Advance and progress payments. Any contract
awarded to a business owned by a minority, woman female, or
person with a disability pursuant to this Act may contain a
provision for advance or progress payments, or both, except
that a State construction contract awarded to a minority-owned
minority or women-owned female owned business pursuant to this
Act may contain a provision for progress payments but may not
contain a provision for advance payments.
(Source: P.A. 88-597, eff. 8-28-94.)
(30 ILCS 575/8b) (from Ch. 127, par. 132.608b)
(Section scheduled to be repealed on June 30, 2020)
Sec. 8b. Scheduled council meetings; sheltered market. The
Council shall conduct regular meetings to carry out its
responsibilities under this Act. At each of the regularly
scheduled meetings, time shall be allocated for the Council to
receive, review and discuss any evidence regarding past or
present racial, ethnic or gender based discrimination which
directly impacts State contracting with businesses owned by
minorities, women females, and persons with disabilities. 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.

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"Sheltered market" shall mean a procurement procedure
whereby certain contracts are selected and specifically set
aside for businesses owned by minorities, women females, and
persons with disabilities on a competitive bid or negotiated
basis.
As part of the annual report which the Council must file
pursuant to paragraph (e) of subsection (2) of Section 5, the
Council shall report on any findings made pursuant to this
Section.
(Source: P.A. 88-597, eff. 8-28-94.)
(30 ILCS 575/8f)
(Section scheduled to be repealed on June 30, 2020)
Sec. 8f. Annual report. The Council shall file no later
than March 1 of each year, an annual report that shall detail
the level of achievement toward the goals specified in this Act
over the 3 most recent fiscal years. The annual report shall
include, but need not be limited to the following:
(1) a summary detailing expenditures subject to the
goals, the actual goals specified, and the goals attained
by each State agency and public institution of higher
education;
(2) a summary of the number of contracts awarded and
the average contract amount by each State agency and public
institution of higher education;
(3) an analysis of the level of overall goal

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achievement concerning purchases from minority-owned
minority businesses, women-owned female-owned businesses,
and businesses owned by persons with disabilities;
(4) an analysis of the number of businesses owned by
minorities, women females, and persons with disabilities
that are certified under the program as well as the number
of those businesses that received State procurement
contracts; and
(5) a summary of the number of contracts awarded to
businesses with annual gross sales of less than $1,000,000;
of $1,000,000 or more, but less than $5,000,000; of
$5,000,000 or more, but less than $10,000,000; and of
$10,000,000 or more.
(Source: P.A. 99-462, eff. 8-25-15.)
(30 ILCS 575/8g new)
Sec. 8g. Business Enterprise Program Council reports.
(a) The Department of Central Management Services shall
provide a report to the Council identifying all State agency
non-construction solicitations that exceed $20,000,000 and
that have less than a 20% established goal prior to
publication.
(b) The Department of Central Management Services shall
provide a report to the Council all State agency
non-construction contracts that exceed $20,000,000 prior to
award. The report shall contain the following: (i) the name of

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the proposed awardee, (ii) the total bid amount, (iii) the
established Business Enterprise Program goal, (iv) the dollar
amount and percentage of participation by businesses owned by
minorities, women, and persons with disabilities, and (v) the
names of the certified firms identified in the utilization
plan.
(30 ILCS 575/8h new)
Sec. 8h. Encouragement for telecom and communications
entities to submit supplier diversity reports.
(1) The General Assembly declares that the State of
Illinois supports the hiring of a workforce on construction
contracts to reflect the diversity of the communities where the
contracts are performed, in accordance with the State
Construction Minority and Female Building Trades Act.
(2) The following entities that do business in Illinois or
serve Illinois customers shall be subject to this Section:
(i) all local exchange telecommunications carriers
with at least 35,000 subscriber access lines;
(ii) cable and video providers, as defined in Section
21-20l of the Public Utilities Act;
(iii) interconnected VoIP providers, as defined in
Section 13-235 of the Public Utilities Act;
(iv) wireless service providers;
(v) broadband internet access services providers; and
(vi) any other entity that provides messaging, voice,

10000SB0262sam003 - 115 - LRB100 05183 MLM 25333 a
or video services via the Internet or a social media
platform.
(3) Each entity listed in subsection (1) of this Section
may submit to the Illinois Commerce Commission and the Business
Enterprise Council an annual report by April 15, 20l8, and
every April 15 thereafter, which provides, for the previous
calendar year, information and data on diversity goals, and
progress toward achieving those goals, by certified businesses
owned by minorities, women, persons with disabilities, and
service-disabled veterans, provided that if the entity does not
track such information and data for businesses owned by
service-disabled veterans, the entity may provide information
and data for businesses owned by veterans.
The diversity report shall include the following:
(i) Overall spending on all certified businesses.
(ii) A narrative description of the entity's supplier
diversity goals and plans for meeting those goals.
(iii) The entity's best estimate of its annual spending
in professional services and spending with certified
businesses owned by minorities, women, persons with
disabilities, and service-disabled veterans (or veterans,
if the reporting entity does not track spending with
service-disabled veterans), including, but not limited to,
the following professional services categories:
accounting; architecture and engineering; consulting;
information technology; insurance; financial, legal, and

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marketing services; and other professional services.
(iv) The entity's overall annual spending in the listed
professional service categories. For the diversity reports
due on April 15, 2018 and April 15, 2019, the information
on annual spending with certified businesses for
professional services required by this Section may be
provided for all professional services on an aggregated
basis.
(v) The total number and percentage of women and
minorities that provided services for each construction
and professional services project in the State.
An entity subject to this Section which is part of an
affiliated group of entities may provide information for the
affiliated group as a whole.
(4) Any entity that is subject to this Section that does
not submit a report shall be reported by the Business
Enterprise Council to each chief procurement officer. Upon
receiving a report from the Business Enterprise Council, the
chief procurement officer shall prohibit any entities that do
not submit a report from bidding on State contracts for a
period of one year beginning the first day of the following
fiscal year and post on its respective bulletin the names of
all entities that fail to comply with the provisions of this
Section.
(5) The decisions of the Council under this Section are
final and are subject to review as final decisions under the

10000SB0262sam003 - 117 - LRB100 05183 MLM 25333 a
provisions of the Administrative Review Law, and shall only be
overturned if the court finds that they are against the
manifest weight of the evidence.
(30 ILCS 575/8i new)
Sec. 8i. Renewals. State agencies and public institutions
of higher education shall:
(a) within 30 days of the effective date of this
amendatory Act of the 100th General Assembly, review all
solicitations and establish diversity goals on a
contract-by-contract basis;
(b) review all existing contracts prior to the time of
renewal to determine if the diversity goal is being met by
the prime vendor;
(c) review all existing contracts prior to the time of
renewal to determine if the diversity goal should be
increased based upon market conditions and availability of
certified diverse firms;
(d) review existing contracts with no diversity goal to
determine if a diversity goal should be established; if it
is determined that a diversity goal should be established,
the State agency or public institution of higher education
shall amend the contract to include the diversity goal;
prime contractors shall be required to complete a
utilization plan to demonstrate how it intends to meet the
diversity goal; and

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(e) review renewals at least 6 months prior to renewal
to allow adequate time to rebid if it is determined that
the prime contractor has not demonstrated good faith
efforts towards meeting the diversity goal.
Section 75. The Film Production Services Tax Credit Act of
2008 is amended by changing Sections 30 and 45 as follows:
(35 ILCS 16/30)
Sec. 30. Review of application for accredited production
certificate.
(a) In determining whether to issue an accredited
production certificate, the Department must determine that a
preponderance of the following conditions exist:
(1) The applicant's production intends to make the
expenditure in the State required for certification.
(2) The applicant's production is economically sound
and will benefit the people of the State of Illinois by
increasing opportunities for employment and strengthen the
economy of Illinois.
(3) The applicant has filed a diversity plan with the
Department outlining specific goals (i) for hiring
minority persons and women females, as defined in the
Business Enterprise for Minorities, Women Females, and
Persons with Disabilities Act, and (ii) for using vendors
receiving certification under the Business Enterprise for

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Minorities, Women Females, and Persons with Disabilities
Act; the Department has approved the plan as meeting the
requirements established by the Department; and the
Department has verified that the applicant has met or made
good-faith efforts in achieving those goals. The
Department must adopt any rules that are necessary to
ensure compliance with the provisions of this item (3) and
that are necessary to require that the applicant's plan
reflects the diversity of this State.
(4) The applicant's production application indicates
whether the applicant intends to participate in training,
education, and recruitment programs that are organized in
cooperation with Illinois colleges and universities, labor
organizations, and the motion picture industry and are
designed to promote and encourage the training and hiring
of Illinois residents who represent the diversity of the
Illinois population.
(5) That, if not for the credit, the applicant's
production would not occur in Illinois, which may be
demonstrated by any means including, but not limited to,
evidence that the applicant has multi-state or
international location options and could reasonably and
efficiently locate outside of the State, or demonstration
that at least one other state or nation is being considered
for the production, or evidence that the receipt of the
credit is a major factor in the applicant's decision and

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that without the credit the applicant likely would not
create or retain jobs in Illinois, or demonstration that
receiving the credit is essential to the applicant's
decision to create or retain new jobs in the State.
(6) Awarding the credit will result in an overall
positive impact to the State, as determined by the
Department using the best available data.
(b) If any of the provisions in this Section conflict with
any existing collective bargaining agreements, the terms and
conditions of those collective bargaining agreements shall
control.
(Source: P.A. 95-720, eff. 5-27-08.)
(35 ILCS 16/45)
Sec. 45. Evaluation of tax credit program; reports to the
General Assembly.
(a) The Department shall evaluate the tax credit program.
The evaluation must include an assessment of the effectiveness
of the program in creating and retaining new jobs in Illinois
and of the revenue impact of the program, and may include a
review of the practices and experiences of other states or
nations with similar programs. Upon completion of this
evaluation, the Department shall determine the overall success
of the program, and may make a recommendation to extend,
modify, or not extend the program based on this evaluation.
(b) At the end of each fiscal quarter, the Department must

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submit to the General Assembly a report that includes, without
limitation, the following information:
(1) the economic impact of the tax credit program,
including the number of jobs created and retained,
including whether the job positions are entry level,
management, talent-related, vendor-related, or
production-related;
(2) the amount of film production spending brought to
Illinois, including the amount of spending and type of
Illinois vendors hired in connection with an accredited
production; and
(3) an overall picture of whether the human
infrastructure of the motion picture industry in Illinois
reflects the geographical, racial and ethnic, gender, and
income-level diversity of the State of Illinois.
(c) At the end of each fiscal year, the Department must
submit to the General Assembly a report that includes, without
limitation, the following information:
(1) an identification of each vendor that provided
goods or services that were included in an accredited
production's Illinois production spending;
(2) the amount paid to each identified vendor by the
accredited production;
(3) for each identified vendor, a statement as to
whether the vendor is a minority-owned minority owned
business or a women-owned female owned business, as defined

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under Section 2 of the Business Enterprise for Minorities,
Women Females, and Persons with Disabilities Act; and
(4) a description of any steps taken by the Department
to encourage accredited productions to use vendors who are
a minority-owned minority owned business or a women-owned
female owned business.
(Source: P.A. 95-720, eff. 5-27-08.)
Section 80. The Live Theater Production Tax Credit Act is
amended by changing Sections 10-30 and 10-50 as follows:
(35 ILCS 17/10-30)
Sec. 10-30. Review of application for accredited theater
production certificate.
(a) The Department shall issue an accredited theater
production certificate to an applicant if it finds that by a
preponderance the following conditions exist:
(1) the applicant intends to make the expenditure in
the State required for certification of the accredited
theater production;
(2) the applicant's accredited theater production is
economically sound and will benefit the people of the State
of Illinois by increasing opportunities for employment and
will strengthen the economy of Illinois;
(3) the following requirements related to the
implementation of a diversity plan have been met: (i) the

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applicant has filed with the Department a diversity plan
outlining specific goals for hiring Illinois labor
expenditure eligible minority persons and women females,
as defined in the Business Enterprise for Minorities, Women
Females, and Persons with Disabilities Act, and for using
vendors receiving certification under the Business
Enterprise for Minorities, Women Females, and Persons with
Disabilities Act; (ii) the Department has approved the plan
as meeting the requirements established by the Department
and verified that the applicant has met or made good faith
efforts in achieving those goals; and (iii) the Department
has adopted any rules that are necessary to ensure
compliance with the provisions set forth in this paragraph
and necessary to require that the applicant's plan reflects
the diversity of the population of this State;
(4) the applicant's accredited theater production
application indicates whether the applicant intends to
participate in training, education, and recruitment
programs that are organized in cooperation with Illinois
colleges and universities, labor organizations, and the
holders of accredited theater production certificates and
are designed to promote and encourage the training and
hiring of Illinois residents who represent the diversity of
Illinois;
(5) if not for the tax credit award, the applicant's
accredited theater production would not occur in Illinois,

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which may be demonstrated by any means, including, but not
limited to, evidence that: (i) the applicant, presenter,
owner, or licensee of the production rights has other state
or international location options at which to present the
production and could reasonably and efficiently locate
outside of the State, (ii) at least one other state or
nation could be considered for the production, (iii) the
receipt of the tax award credit is a major factor in the
decision of the applicant, presenter, production owner or
licensee as to where the production will be presented and
that without the tax credit award the applicant likely
would not create or retain jobs in Illinois, or (iv)
receipt of the tax credit award is essential to the
applicant's decision to create or retain new jobs in the
State; and
(6) the tax credit award will result in an overall
positive impact to the State, as determined by the
Department using the best available data.
(b) If any of the provisions in this Section conflict with
any existing collective bargaining agreements, the terms and
conditions of those collective bargaining agreements shall
control.
(c) The Department shall act expeditiously regarding
approval of applications for accredited theater production
certificates so as to accommodate the pre-production work,
booking, commencement of ticket sales, determination of

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performance dates, load in, and other matters relating to the
live theater productions for which approval is sought.
(Source: P.A. 97-636, eff. 6-1-12.)
(35 ILCS 17/10-50)
Sec. 10-50. Live theater tax credit award program
evaluation and reports.
(a) The Department's live theater tax credit award
evaluation must include:
(i) an assessment of the effectiveness of the program
in creating and retaining new jobs in Illinois;
(ii) an assessment of the revenue impact of the
program;
(iii) in the discretion of the Department, a review of
the practices and experiences of other states or nations
with similar programs; and
(iv) an assessment of the overall success of the
program. The Department may make a recommendation to
extend, modify, or not extend the program based on the
evaluation.
(b) At the end of each fiscal quarter, the Department shall
submit to the General Assembly a report that includes, without
limitation:
(i) an assessment of the economic impact of the
program, including the number of jobs created and retained,
and whether the job positions are entry level, management,

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vendor, or production related;
(ii) the amount of accredited theater production
spending brought to Illinois, including the amount of
spending and type of Illinois vendors hired in connection
with an accredited theater production; and
(iii) a determination of whether those receiving
qualifying Illinois labor expenditure salaries or wages
reflect the geographical, racial and ethnic, gender, and
income level diversity of the State of Illinois.
(c) At the end of each fiscal year, the Department shall
submit to the General Assembly a report that includes, without
limitation:
(i) the identification of each vendor that provided
goods or services that were included in an accredited
theater production's Illinois production spending;
(ii) a statement of the amount paid to each identified
vendor by the accredited theater production and whether the
vendor is a minority-owned minority or women-owned female
owned business as defined in Section 2 of the Business
Enterprise for Minorities, Women Females, and Persons with
Disabilities Act; and
(iii) a description of the steps taken by the
Department to encourage accredited theater productions to
use vendors who are minority-owned minority or women-owned
female owned businesses.
(Source: P.A. 97-636, eff. 6-1-12.)

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Section 85. The Illinois Pension Code is amended by
changing Sections 1-109.1 and 1-113.21 as follows:
(40 ILCS 5/1-109.1) (from Ch. 108 1/2, par. 1-109.1)
Sec. 1-109.1. Allocation and delegation of fiduciary
duties.
(1) Subject to the provisions of Section 22A-113 of this
Code and subsections (2) and (3) of this Section, the board of
trustees of a retirement system or pension fund established
under this Code may:
(a) Appoint one or more investment managers as
fiduciaries to manage (including the power to acquire and
dispose of) any assets of the retirement system or pension
fund; and
(b) Allocate duties among themselves and designate
others as fiduciaries to carry out specific fiduciary
activities other than the management of the assets of the
retirement system or pension fund.
(2) The board of trustees of a pension fund established
under Article 5, 6, 8, 9, 10, 11, 12 or 17 of this Code may not
transfer its investment authority, nor transfer the assets of
the fund to any other person or entity for the purpose of
consolidating or merging its assets and management with any
other pension fund or public investment authority, unless the
board resolution authorizing such transfer is submitted for

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approval to the contributors and pensioners of the fund at
elections held not less than 30 days after the adoption of such
resolution by the board, and such resolution is approved by a
majority of the votes cast on the question in both the
contributors election and the pensioners election. The
election procedures and qualifications governing the election
of trustees shall govern the submission of resolutions for
approval under this paragraph, insofar as they may be made
applicable.
(3) Pursuant to subsections (h) and (i) of Section 6 of
Article VII of the Illinois Constitution, the investment
authority of boards of trustees of retirement systems and
pension funds established under this Code is declared to be a
subject of exclusive State jurisdiction, and the concurrent
exercise by a home rule unit of any power affecting such
investment authority is hereby specifically denied and
preempted.
(4) For the purposes of this Code, "emerging investment
manager" means a qualified investment adviser that manages an
investment portfolio of at least $10,000,000 but less than
$10,000,000,000 and is a "minority-owned minority owned
business", "women-owned female owned business" or "business
owned by a person with a disability" as those terms are defined
in the Business Enterprise for Minorities, Women Females, and
Persons with Disabilities Act.
It is hereby declared to be the public policy of the State

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of Illinois to encourage the trustees of public employee
retirement systems, pension funds, and investment boards to use
emerging investment managers in managing their system's
assets, encompassing all asset classes, and increase the
racial, ethnic, and gender diversity of its fiduciaries, to the
greatest extent feasible within the bounds of financial and
fiduciary prudence, and to take affirmative steps to remove any
barriers to the full participation in investment opportunities
afforded by those retirement systems, pension funds, and
investment boards.
On or before January 1, 2010, a retirement system, pension
fund, or investment board subject to this Code, except those
whose investments are restricted by Section 1-113.2 of this
Code, shall adopt a policy that sets forth goals for
utilization of emerging investment managers. This policy shall
include quantifiable goals for the management of assets in
specific asset classes by emerging investment managers. The
retirement system, pension fund, or investment board shall
establish 3 separate goals for: (i) emerging investment
managers that are minority-owned minority owned businesses;
(ii) emerging investment managers that are women-owned female
owned businesses; and (iii) emerging investment managers that
are businesses owned by a person with a disability. The goals
established shall be based on the percentage of total dollar
amount of investment service contracts let to minority-owned
minority owned businesses, women-owned female owned

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businesses, and businesses owned by a person with a disability,
as those terms are defined in the Business Enterprise for
Minorities, Women Females, and Persons with Disabilities Act.
The retirement system, pension fund, or investment board shall
annually review the goals established under this subsection.
If in any case an emerging investment manager meets the
criteria established by a board for a specific search and meets
the criteria established by a consultant for that search, then
that emerging investment manager shall receive an invitation by
the board of trustees, or an investment committee of the board
of trustees, to present his or her firm for final consideration
of a contract. In the case where multiple emerging investment
managers meet the criteria of this Section, the staff may
choose the most qualified firm or firms to present to the
board.
The use of an emerging investment manager does not
constitute a transfer of investment authority for the purposes
of subsection (2) of this Section.
(5) Each retirement system, pension fund, or investment
board subject to this Code, except those whose investments are
restricted by Section 1-113.2 of this Code, shall establish a
policy that sets forth goals for increasing the racial, ethnic,
and gender diversity of its fiduciaries, including its
consultants and senior staff. Each system, fund, and investment
board shall annually review the goals established under this
subsection.

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(6) On or before January 1, 2010, a retirement system,
pension fund, or investment board subject to this Code, except
those whose investments are restricted by Section 1-113.2 of
this Code, shall adopt a policy that sets forth goals for
utilization of businesses owned by minorities, women females,
and persons with disabilities for all contracts and services.
The goals established shall be based on the percentage of total
dollar amount of all contracts let to minority-owned minority
owned businesses, women-owned female owned businesses, and
businesses owned by a person with a disability, as those terms
are defined in the Business Enterprise for Minorities, Women
Females, and Persons with Disabilities Act. The retirement
system, pension fund, or investment board shall annually review
the goals established under this subsection.
(7) On or before January 1, 2010, a retirement system,
pension fund, or investment board subject to this Code, except
those whose investments are restricted by Section 1-113.2 of
this Code, shall adopt a policy that sets forth goals for
increasing the utilization of minority broker-dealers. For the
purposes of this Code, "minority broker-dealer" means a
qualified broker-dealer who meets the definition of
"minority-owned minority owned business", "women-owned female
owned business", or "business owned by a person with a
disability", as those terms are defined in the Business
Enterprise for Minorities, Women Females, and Persons with
Disabilities Act. The retirement system, pension fund, or

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investment board shall annually review the goals established
under this Section.
(8) Each retirement system, pension fund, and investment
board subject to this Code, except those whose investments are
restricted by Section 1-113.2 of this Code, shall submit a
report to the Governor and the General Assembly by January 1 of
each year that includes the following: (i) the policy adopted
under subsection (4) of this Section, including the names and
addresses of the emerging investment managers used, percentage
of the assets under the investment control of emerging
investment managers for the 3 separate goals, and the actions
it has undertaken to increase the use of emerging investment
managers, including encouraging other investment managers to
use emerging investment managers as subcontractors when the
opportunity arises; (ii) the policy adopted under subsection
(5) of this Section; (iii) the policy adopted under subsection
(6) of this Section; (iv) the policy adopted under subsection
(7) of this Section, including specific actions undertaken to
increase the use of minority broker-dealers; and (v) the policy
adopted under subsection (9) of this Section.
(9) On or before February 1, 2015, a retirement system,
pension fund, or investment board subject to this Code, except
those whose investments are restricted by Section 1-113.2 of
this Code, shall adopt a policy that sets forth goals for
increasing the utilization of minority investment managers.
For the purposes of this Code, "minority investment manager"

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means a qualified investment manager that manages an investment
portfolio and meets the definition of "minority-owned minority
owned business", "women-owned female owned business", or
"business owned by a person with a disability", as those terms
are defined in the Business Enterprise for Minorities, Women
Females, and Persons with Disabilities Act.
It is hereby declared to be the public policy of the State
of Illinois to encourage the trustees of public employee
retirement systems, pension funds, and investment boards to use
minority investment managers in managing their systems'
assets, encompassing all asset classes, and to increase the
racial, ethnic, and gender diversity of their fiduciaries, to
the greatest extent feasible within the bounds of financial and
fiduciary prudence, and to take affirmative steps to remove any
barriers to the full participation in investment opportunities
afforded by those retirement systems, pension funds, and
investment boards.
The retirement system, pension fund, or investment board
shall establish 3 separate goals for: (i) minority investment
managers that are minority-owned minority owned businesses;
(ii) minority investment managers that are women-owned female
owned businesses; and (iii) minority investment managers that
are businesses owned by a person with a disability. The
retirement system, pension fund, or investment board shall
annually review the goals established under this Section.
If in any case a minority investment manager meets the

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criteria established by a board for a specific search and meets
the criteria established by a consultant for that search, then
that minority investment manager shall receive an invitation by
the board of trustees, or an investment committee of the board
of trustees, to present his or her firm for final consideration
of a contract. In the case where multiple minority investment
managers meet the criteria of this Section, the staff may
choose the most qualified firm or firms to present to the
board.
The use of a minority investment manager does not
constitute a transfer of investment authority for the purposes
of subsection (2) of this Section.
(10) Beginning January 1, 2016, it shall be the
aspirational goal for a retirement system, pension fund, or
investment board subject to this Code to use emerging
investment managers for not less than 20% of the total funds
under management. Furthermore, it shall be the aspirational
goal that not less than 20% of investment advisors be
minorities, women females, and persons with disabilities as
those terms are defined in the Business Enterprise for
Minorities, Women Females, and Persons with Disabilities Act.
It shall be the aspirational goal to utilize businesses owned
by minorities, women females, and persons with disabilities for
not less than 20% of contracts awarded for "information
technology services", "accounting services", "insurance
brokers", "architectural and engineering services", and "legal

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services" as those terms are defined in the Act.
(Source: P.A. 98-1022, eff. 1-1-15; 99-462, eff. 8-25-15.)
(40 ILCS 5/1-113.21)
Sec. 1-113.21. Contracts for services.
(a) Beginning January 1, 2015, no contract, oral or
written, for investment services, consulting services, or
commitment to a private market fund shall be awarded by a
retirement system, pension fund, or investment board
established under this Code unless the investment advisor,
consultant, or private market fund first discloses:
(1) the number of its investment and senior staff and
the percentage of its investment and senior staff who are
(i) a minority person, (ii) a woman female, and (iii) a
person with a disability; and
(2) the number of contracts, oral or written, for
investment services, consulting services, and professional
and artistic services that the investment advisor,
consultant, or private market fund has with (i) a
minority-owned minority owned business, (ii) a women-owned
female owned business, or (iii) a business owned by a
person with a disability; and
(3) the number of contracts, oral or written, for
investment services, consulting services, and professional
and artistic services the investment advisor, consultant,
or private market fund has with a business other than (i) a

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minority-owned minority owned business, (ii) a women-owned
female owned business or (iii) a business owned by a person
with a disability, if more than 50% of services performed
pursuant to the contract are performed by (i) a minority
person, (ii) a woman female, and (iii) a person with a
disability.
(b) The disclosures required by this Section shall be
considered, within the bounds of financial and fiduciary
prudence, prior to the awarding of a contract, oral or written,
for investment services, consulting services, or commitment to
a private market fund.
(c) For the purposes of this Section, the terms "minority
person", "woman female", "person with a disability",
"minority-owned minority owned business", "women-owned female
owned business", and "business owned by a person with a
disability" have the same meaning as those terms have in the
Business Enterprise for Minorities, Women Females, and Persons
with Disabilities Act.
(d) For purposes of this Section, the term "private market
fund" means any private equity fund, private equity fund of
funds, venture capital fund, hedge fund, hedge fund of funds,
real estate fund, or other investment vehicle that is not
publicly traded.
(Source: P.A. 98-1022, eff. 1-1-15.)
Section 90. The Counties Code is amended by changing

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Section 5-1134 as follows:
(55 ILCS 5/5-1134)
Sec. 5-1134. Project labor agreements.
(a) Any sports, arts, or entertainment facilities that
receive revenue from a tax imposed under subsection (b) of
Section 5-1030 of this Code shall be considered to be public
works within the meaning of the Prevailing Wage Act. The county
authorities responsible for the construction, renovation,
modification, or alteration of the sports, arts, or
entertainment facilities shall enter into project labor
agreements with labor organizations as defined in the National
Labor Relations Act to assure that no labor dispute interrupts
or interferes with the construction, renovation, modification,
or alteration of the projects.
(b) The project labor agreements must include the
following:
(1) provisions establishing the minimum hourly wage
for each class of labor organization employees;
(2) provisions establishing the benefits and other
compensation for such class of labor organization; and
(3) provisions establishing that no strike or disputes
will be engaged in by the labor organization employees.
The county, taxing bodies, municipalities, and the labor
organizations shall have the authority to include other terms
and conditions as they deem necessary.

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(c) The project labor agreement shall be filed with the
Director of the Illinois Department of Labor in accordance with
procedures established by the Department. At a minimum, the
project labor agreement must provide the names, addresses, and
occupations of the owner of the facilities and the individuals
representing the labor organization employees participating in
the project labor agreement. The agreement must also specify
the terms and conditions required in subsection (b) of this
Section.
(d) In any agreement for the construction or rehabilitation
of a facility using revenue generated under subsection (b) of
Section 5-1030 of this Code, in connection with the
prequalification of general contractors for construction or
rehabilitation of the facility, it shall be required that a
commitment will be submitted detailing how the general
contractor will expend 15% or more of the aggregate dollar
value of the project as a whole with one or more minority-owned
businesses, women-owned female-owned businesses, or businesses
owned by a person with a disability, as these terms are defined
in Section 2 of the Business Enterprise for Minorities, Women
Females, and Persons with Disabilities Act.
(Source: P.A. 98-313, eff. 8-12-13; 98-756, eff. 7-16-14.)
Section 95. The River Edge Redevelopment Zone Act is
amended by changing Section 10-5.3 as follows:

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(65 ILCS 115/10-5.3)
Sec. 10-5.3. Certification of River Edge Redevelopment
Zones.
(a) Approval of designated River Edge Redevelopment Zones
shall be made by the Department by certification of the
designating ordinance. The Department shall promptly issue a
certificate for each zone upon its approval. The certificate
shall be signed by the Director of the Department, shall make
specific reference to the designating ordinance, which shall be
attached thereto, and shall be filed in the office of the
Secretary of State. A certified copy of the River Edge
Redevelopment Zone Certificate, or a duplicate original
thereof, shall be recorded in the office of the recorder of
deeds of the county in which the River Edge Redevelopment Zone
lies.
(b) A River Edge Redevelopment Zone shall be effective upon
its certification. The Department shall transmit a copy of the
certification to the Department of Revenue, and to the
designating municipality. Upon certification of a River Edge
Redevelopment Zone, the terms and provisions of the designating
ordinance shall be in effect, and may not be amended or
repealed except in accordance with Section 10-5.4.
(c) A River Edge Redevelopment Zone shall be in effect for
the period stated in the certificate, which shall in no event
exceed 30 calendar years. Zones shall terminate at midnight of
December 31 of the final calendar year of the certified term,

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except as provided in Section 10-5.4.
(d) In calendar years 2006 and 2007, the Department may
certify one pilot River Edge Redevelopment Zone in the City of
East St. Louis, one pilot River Edge Redevelopment Zone in the
City of Rockford, and one pilot River Edge Redevelopment Zone
in the City of Aurora.
In calendar year 2009, the Department may certify one pilot
River Edge Redevelopment Zone in the City of Elgin.
On or after the effective date of this amendatory Act of
the 97th General Assembly, the Department may certify one
additional pilot River Edge Redevelopment Zone in the City of
Peoria.
Thereafter the Department may not certify any additional
River Edge Redevelopment Zones, but may amend and rescind
certifications of existing River Edge Redevelopment Zones in
accordance with Section 10-5.4, except that no River Edge
Redevelopment Zone may be extended on or after the effective
date of this amendatory Act of the 97th General Assembly. Each
River Edge Redevelopment Zone in existence on the effective
date of this amendatory Act of the 97th General Assembly shall
continue until its scheduled termination under this Act, unless
the Zone is decertified sooner. At the time of its term
expiration each River Edge Redevelopment Zone will become an
open enterprise zone, available for the previously designated
area or a different area to compete for designation as an
enterprise zone. No preference for designation as a Zone will

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be given to the previously designated area.
(e) A municipality in which a River Edge Redevelopment Zone
has been certified must submit to the Department, within 60
days after the certification, a plan for encouraging the
participation by minority persons, women females, persons with
disabilities, and veterans in the zone. The Department may
assist the municipality in developing and implementing the
plan. The terms "minority person", "woman female", and "person
with a disability" have the meanings set forth under Section 2
of the Business Enterprise for Minorities, Women Females, and
Persons with Disabilities Act. "Veteran" means an Illinois
resident who is a veteran as defined in subsection (h) of
Section 1491 of Title 10 of the United States Code.
(Source: P.A. 96-37, eff. 7-13-09; 97-203, eff. 7-28-11;
97-905, eff. 8-7-12.)
Section 100. The Metropolitan Pier and Exposition
Authority Act is amended by changing Sections 10.2 and 23.1 as
follows:
(70 ILCS 210/10.2)
Sec. 10.2. Bonding disclosure.
(a) Truth in borrowing disclosure. Within 60 business days
after the issuance of any bonds under this Act, the Authority
shall disclose the total principal and interest payments to be
paid on the bonds over the full stated term of the bonds. The

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disclosure also shall include principal and interest payments
to be made by each fiscal year over the full stated term of the
bonds and total principal and interest payments to be made by
each fiscal year on all other outstanding bonds issued under
this Act over the full stated terms of those bonds. These
disclosures shall be calculated assuming bonds are not redeemed
or refunded prior to their stated maturities. Amounts included
in these disclosures as payment of interest on variable rate
bonds shall be computed at an interest rate equal to the rate
at which the variable rate bonds are first set upon issuance,
plus 2.5%, after taking into account any credits permitted in
the related indenture or other instrument against the amount of
such interest for each fiscal year.
(b) Bond sale expenses disclosure. Within 60 business days
after the issuance of any bonds under this Act, the Authority
shall disclose all costs of issuance on each sale of bonds
under this Act. The disclosure shall include, as applicable,
the respective percentages of participation and compensation
of each underwriter that is a member of the underwriting
syndicate, legal counsel, financial advisors, and other
professionals for the bond issue and an identification of all
costs of issuance paid to minority-owned minority owned
businesses, women-owned female owned businesses, and
businesses owned by persons with disabilities. The terms
"minority-owned minority owned businesses", "women-owned
female owned businesses", and "business owned by a person with

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a disability" have the meanings given to those terms in the
Business Enterprise for Minorities, Women Females, and Persons
with Disabilities Act. In addition, the Authority shall provide
copies of all contracts under which any costs of issuance are
paid or to be paid to the Commission on Government Forecasting
and Accountability within 60 business days after the issuance
of bonds for which those costs are paid or to be paid. Instead
of filing a second or subsequent copy of the same contract, the
Authority may file a statement that specified costs are paid
under specified contracts filed earlier with the Commission.
(c) The disclosures required in this Section shall be
published by posting the disclosures for no less than 30 days
on the website of the Authority and shall be available to the
public upon request. The Authority shall also provide the
disclosures to the Governor's Office of Management and Budget,
the Commission on Government Forecasting and Accountability,
and the General Assembly.
(Source: P.A. 96-898, eff. 5-27-10.)
(70 ILCS 210/23.1) (from Ch. 85, par. 1243.1)
Sec. 23.1. Affirmative action.
(a) The Authority shall, within 90 days after the effective
date of this amendatory Act of 1984, establish and maintain an
affirmative action program designed to promote equal
employment opportunity and eliminate the effects of past
discrimination. Such program shall include a plan, including

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timetables where appropriate, which shall specify goals and
methods for increasing participation by women and minorities in
employment, including employment related to the planning,
organization, and staging of the games, by the Authority and by
parties which contract with the Authority. The Authority shall
submit a detailed plan with the General Assembly prior to
September 1 of each year. Such program shall also establish
procedures and sanctions (including debarment), which the
Authority shall enforce to ensure compliance with the plan
established pursuant to this Section and with State and federal
laws and regulations relating to the employment of women and
minorities. A determination by the Authority as to whether a
party to a contract with the Authority has achieved the goals
or employed the methods for increasing participation by women
and minorities shall be determined in accordance with the terms
of such contracts or the applicable provisions of rules and
regulations of the Authority existing at the time such contract
was executed, including any provisions for consideration of
good faith efforts at compliance which the Authority may
reasonably adopt.
(b) The Authority shall adopt and maintain minority-owned
minority and women-owned female owned business enterprise
procurement programs under the affirmative action program
described in subsection (a) for any and all work, including all
contracting related to the planning, organization, and staging
of the games, undertaken by the Authority. That work shall

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include, but is not limited to, the purchase of professional
services, construction services, supplies, materials, and
equipment. The programs shall establish goals of awarding not
less than 25% of the annual dollar value of all contracts,
purchase orders, or other agreements (collectively referred to
as "contracts") to minority-owned minority owned businesses
and 5% of the annual dollar value of all contracts to
women-owned female owned businesses. Without limiting the
generality of the foregoing, the programs shall require in
connection with the prequalification or consideration of
vendors for professional service contracts, construction
contracts, and contracts for supplies, materials, equipment,
and services that each proposer or bidder submit as part of his
or her proposal or bid a commitment detailing how he or she
will expend 25% or more of the dollar value of his or her
contracts with one or more minority-owned minority owned
businesses and 5% or more of the dollar value with one or more
women-owned female owned businesses. Bids or proposals that do
not include such detailed commitments are not responsive and
shall be rejected unless the Authority deems it appropriate to
grant a waiver of these requirements. In addition the Authority
may, in connection with the selection of providers of
professional services, reserve the right to select a
minority-owned minority or women-owned female owned business
or businesses to fulfill the commitment to minority and woman
female business participation. The commitment to minority and

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woman female business participation may be met by the
contractor or professional service provider's status as a
minority-owned minority or women-owned female owned business,
by joint venture or by subcontracting a portion of the work
with or purchasing materials for the work from one or more such
businesses, or by any combination thereof. Each contract shall
require the contractor or provider to submit a certified
monthly report detailing the status of that contractor or
provider's compliance with the Authority's minority-owned
minority and women-owned female owned business enterprise
procurement program. The Authority, after reviewing the
monthly reports of the contractors and providers, shall compile
a comprehensive report regarding compliance with this
procurement program and file it quarterly with the General
Assembly. If, in connection with a particular contract, the
Authority determines that it is impracticable or excessively
costly to obtain minority-owned minority or women-owned female
owned businesses to perform sufficient work to fulfill the
commitment required by this subsection, the Authority shall
reduce or waive the commitment in the contract, as may be
appropriate. The Authority shall establish rules and
regulations setting forth the standards to be used in
determining whether or not a reduction or waiver is
appropriate. The terms "minority-owned minority owned
business" and "women-owned female owned business" have the
meanings given to those terms in the Business Enterprise for

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Minorities, Women Females, and Persons with Disabilities Act.
(c) The Authority shall adopt and maintain an affirmative
action program in connection with the hiring of minorities and
women on the Expansion Project and on any and all construction
projects, including all contracting related to the planning,
organization, and staging of the games, undertaken by the
Authority. The program shall be designed to promote equal
employment opportunity and shall specify the goals and methods
for increasing the participation of minorities and women in a
representative mix of job classifications required to perform
the respective contracts awarded by the Authority.
(d) In connection with the Expansion Project, the Authority
shall incorporate the following elements into its
minority-owned minority and women-owned female owned business
procurement programs to the extent feasible: (1) a major
contractors program that permits minority-owned minority owned
businesses and women-owned female owned businesses to bear
significant responsibility and risk for a portion of the
project; (2) a mentor/protege program that provides financial,
technical, managerial, equipment, and personnel support to
minority-owned minority owned businesses and women-owned
female owned businesses; (3) an emerging firms program that
includes minority-owned minority owned businesses and
women-owned female owned businesses that would not otherwise
qualify for the project due to inexperience or limited
resources; (4) a small projects program that includes

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participation by smaller minority-owned minority owned
businesses and women-owned female owned businesses on jobs
where the total dollar value is $5,000,000 or less; and (5) a
set-aside program that will identify contracts requiring the
expenditure of funds less than $50,000 for bids to be submitted
solely by minority-owned minority owned businesses and
women-owned female owned businesses.
(e) The Authority is authorized to enter into agreements
with contractors' associations, labor unions, and the
contractors working on the Expansion Project to establish an
Apprenticeship Preparedness Training Program to provide for an
increase in the number of minority and women female journeymen
and apprentices in the building trades and to enter into
agreements with Community College District 508 to provide
readiness training. The Authority is further authorized to
enter into contracts with public and private educational
institutions and persons in the hospitality industry to provide
training for employment in the hospitality industry.
(f) McCormick Place Advisory Board. There is created a
McCormick Place Advisory Board composed as follows: 2 members
shall be appointed by the Mayor of Chicago; 2 members shall be
appointed by the Governor; 2 members shall be State Senators
appointed by the President of the Senate; 2 members shall be
State Senators appointed by the Minority Leader of the Senate;
2 members shall be State Representatives appointed by the
Speaker of the House of Representatives; and 2 members shall be

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State Representatives appointed by the Minority Leader of the
House of Representatives. The terms of all previously appointed
members of the Advisory Board expire on the effective date of
this amendatory Act of the 92nd General Assembly. A State
Senator or State Representative member may appoint a designee
to serve on the McCormick Place Advisory Board in his or her
absence.
A "member of a minority group" shall mean a person who is a
citizen or lawful permanent resident of the United States and
who is any of the following:
(1) American Indian or Alaska Native (a person having
origins in any of the original peoples of North and South
America, including Central America, and who maintains
tribal affiliation or community attachment).
(2) 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).
(3) 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".
(4) Hispanic or Latino (a person of Cuban, Mexican,
Puerto Rican, South or Central American, or other Spanish
culture or origin, regardless of race).

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(5) Native Hawaiian or Other Pacific Islander (a person
having origins in any of the original peoples of Hawaii,
Guam, Samoa, or other Pacific Islands).
Members of the McCormick Place Advisory Board shall serve
2-year terms and until their successors are appointed, except
members who serve as a result of their elected position whose
terms shall continue as long as they hold their designated
elected positions. Vacancies shall be filled by appointment for
the unexpired term in the same manner as original appointments
are made. The McCormick Place Advisory Board shall elect its
own chairperson.
Members of the McCormick Place Advisory Board shall serve
without compensation but, at the Authority's discretion, shall
be reimbursed for necessary expenses in connection with the
performance of their duties.
The McCormick Place Advisory Board shall meet quarterly, or
as needed, shall produce any reports it deems necessary, and
shall:
(1) Work with the Authority on ways to improve the area
physically and economically;
(2) Work with the Authority regarding potential means
for providing increased economic opportunities to
minorities and women produced indirectly or directly from
the construction and operation of the Expansion Project;
(3) Work with the Authority to minimize any potential
impact on the area surrounding the McCormick Place

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Expansion Project, including any impact on minority-owned
minority or women-owned female owned businesses, resulting
from the construction and operation of the Expansion
Project;
(4) Work with the Authority to find candidates for
building trades apprenticeships, for employment in the
hospitality industry, and to identify job training
programs;
(5) Work with the Authority to implement the provisions
of subsections (a) through (e) of this Section in the
construction of the Expansion Project, including the
Authority's goal of awarding not less than 25% and 5% of
the annual dollar value of contracts to minority-owned
minority and women-owned female owned businesses, the
outreach program for minorities and women, and the
mentor/protege program for providing assistance to
minority-owned minority and women-owned female owned
businesses.
(g) The Authority shall comply with subsection (e) of
Section 5-42 of the Olympic Games and Paralympic Games (2016)
Law. For purposes of this Section, the term "games" has the
meaning set forth in the Olympic Games and Paralympic Games
(2016) Law.
(Source: P.A. 96-7, eff. 4-3-09; 97-396, eff. 1-1-12.)
Section 105. The Illinois Sports Facilities Authority Act

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is amended by changing Section 9 as follows:
(70 ILCS 3205/9) (from Ch. 85, par. 6009)
Sec. 9. Duties. In addition to the powers set forth
elsewhere in this Act, subject to the terms of any agreements
with the holders of the Authority's bonds or notes, the
Authority shall:
(1) Comply with all zoning, building, and land use
controls of the municipality within which is located any
stadium facility owned by the Authority or for which the
Authority provides financial assistance.
(2) With respect to a facility owned or to be owned by
the Authority, enter or have entered into a management
agreement with a tenant of the Authority to operate the
facility that requires the tenant to operate the facility
for a period at least as long as the term of any bonds
issued to finance the development, establishment,
construction, erection, acquisition, repair,
reconstruction, remodeling, adding to, extension,
improvement, equipping, operation, and maintenance of the
facility. Such agreement shall contain appropriate and
reasonable provisions with respect to termination, default
and legal remedies.
(3) With respect to a facility owned or to be owned by
a governmental owner other than the Authority, enter into
an assistance agreement with either a governmental owner of

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a facility or its tenant, or both, that requires the
tenant, or if the tenant is not a party to the assistance
agreement requires the governmental owner to enter into an
agreement with the tenant that requires the tenant to use
the facility for a period at least as long as the term of
any bonds issued to finance the reconstruction,
renovation, remodeling, extension or improvement of all or
substantially all of the facility.
(4) Create and maintain a separate financial reserve
for repair and replacement of capital assets of any
facility owned by the Authority or for which the Authority
provides financial assistance and deposit into this
reserve not less than $1,000,000 per year for each such
facility beginning at such time as the Authority and the
tenant, or the Authority and a governmental owner of a
facility, as applicable, shall agree.
(5) In connection with prequalification of general
contractors for the construction of a new stadium facility
or the reconstruction, renovation, remodeling, extension,
or improvement of all or substantially all of an existing
facility, the Authority shall require submission of a
commitment detailing how the general contractor will
expend 25% or more of the dollar value of the general
contract with one or more minority-owned businesses
minority business enterprises and 5% or more of the dollar
value with one or more women-owned businesses female

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business enterprises. This commitment may be met by
contractor's status as a minority-owned businesses
minority business enterprise or women-owned businesses
female business enterprise, by a joint venture or by
subcontracting a portion of the work with or by purchasing
materials for the work from one or more such businesses
enterprises, or by any combination thereof. Any contract
with the general contractor for construction of the new
stadium facility and any contract for the reconstruction,
renovation, remodeling, adding to, extension or
improvement of all or substantially all of an existing
facility shall require the general contractor to meet the
foregoing obligations and shall require monthly reporting
to the Authority with respect to the status of the
implementation of the contractor's affirmative action plan
and compliance with that plan. This report shall be filed
with the General Assembly. The Authority shall establish
and maintain an affirmative action program designed to
promote equal employment opportunity which specifies the
goals and methods for increasing participation by
minorities and women in a representative mix of job
classifications required to perform the respective
contracts. The Authority shall file a report before March 1
of each year with the General Assembly detailing its
implementation of this paragraph. The terms
"minority-owned businesses", "women-owned businesses", and

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"business owned by a person with a disability" have the
meanings given to those terms The terms "minority business
enterprise" and "female business enterprise" shall have
the same meanings as "minority owned business" and "female
owned business", respectively, as defined in the Business
Enterprise for Minorities, Women Females, and Persons with
Disabilities Act.
(6) Provide for the construction of any new facility
pursuant to one or more contracts which require delivery of
a completed facility at a fixed maximum price to be insured
or guaranteed by a third party determined by the Authority
to be financially capable of causing completion of such
construction of the new facility.
In connection with any assistance agreement with a
governmental owner that provides financial assistance for a
facility to be used by a National Football League team, the
assistance agreement shall provide that the Authority or its
agent shall enter into the contract or contracts for the design
and construction services or design/build services for such
facility and thereafter transfer its rights and obligations
under the contract or contracts to the governmental owner of
the facility. In seeking parties to provide design and
construction services or design/build services with respect to
such facility, the Authority may use such procurement
procedures as it may determine, including, without limitation,
the selection of design professionals and construction

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managers or design/builders as may be required by a team that
is at risk, in whole or in part, for the cost of design and
construction of the facility.
An assistance agreement may not provide, directly or
indirectly, for the payment to the Chicago Park District of
more than a total of $10,000,000 on account of the District's
loss of property or revenue in connection with the renovation
of a facility pursuant to the assistance agreement.
(Source: P.A. 91-935, eff. 6-1-01; 92-16, eff. 6-28-01.)
Section 110. The Downstate Illinois Sports Facilities
Authority Act is amended by changing Section 40 as follows:
(70 ILCS 3210/40)
Sec. 40. Duties.
(a) In addition to the powers set forth elsewhere in this
Act, subject to the terms of any agreements with the holders of
the Authority's evidences of indebtedness, the Authority shall
do the following:
(1) Comply with all zoning, building, and land use
controls of the municipality within which is located any
stadium facility owned by the Authority or for which the
Authority provides financial assistance.
(2) Enter into a loan agreement with an owner of a
facility to finance the acquisition, construction,
maintenance, or rehabilitation of the facility. The

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agreement shall contain appropriate and reasonable
provisions with respect to termination, default, and legal
remedies. The loan may be at below-market interest rates.
(3) Create and maintain a financial reserve for repair
and replacement of capital assets.
(b) In a loan agreement for the construction of a new
facility, in connection with prequalification of general
contractors for construction of the facility, the Authority
shall require that the owner of the facility require submission
of a commitment detailing how the general contractor will
expend 25% or more of the dollar value of the general contract
with one or more minority-owned businesses minority business
enterprises and 5% or more of the dollar value with one or more
women-owned businesses female business enterprises. This
commitment may be met by contractor's status as a
minority-owned businesses minority business enterprise or
women-owned businesses female business enterprise, by a joint
venture, or by subcontracting a portion of the work with or by
purchasing materials for the work from one or more such
businesses enterprises, or by any combination thereof. Any
contract with the general contractor for construction of the
new facility shall require the general contractor to meet the
foregoing obligations and shall require monthly reporting to
the Authority with respect to the status of the implementation
of the contractor's affirmative action plan and compliance with
that plan. This report shall be filed with the General

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Assembly. The Authority shall require that the facility owner
establish and maintain an affirmative action program designed
to promote equal employment opportunity and that specifies the
goals and methods for increasing participation by minorities
and women in a representative mix of job classifications
required to perform the respective contracts. The Authority
shall file a report before March 1 of each year with the
General Assembly detailing its implementation of this
subsection. The terms "minority-owned businesses minority
business enterprise" and "women-owned businesses female
business enterprise" have the meanings provided in the Business
Enterprise for Minorities, Women Females, and Persons with
Disabilities Act.
(c) With respect to a facility owned or to be owned by the
Authority, enter or have entered into a management agreement
with a tenant of the Authority to operate the facility that
requires the tenant to operate the facility for a period at
least as long as the term of any bonds issued to finance the
development, establishment, construction, erection,
acquisition, repair, reconstruction, remodeling, adding to,
extension, improvement, equipping, operation, and maintenance
of the facility. Such agreement shall contain appropriate and
reasonable provisions with respect to termination, default,
and legal remedies.
(Source: P.A. 93-227, eff. 1-1-04.)

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Section 115. The Metropolitan Transit Authority Act is
amended by changing Section 12c as follows:
(70 ILCS 3605/12c)
Sec. 12c. Retiree Benefits Bonds and Notes.
(a) In addition to all other bonds or notes that it is
authorized to issue, the Authority is authorized to issue its
bonds or notes for the purposes of providing funds for the
Authority to make the deposits described in Section 12c(b)(1)
and (2), for refunding any bonds authorized to be issued under
this Section, as well as for the purposes of paying costs of
issuance, obtaining bond insurance or other credit enhancement
or liquidity facilities, paying costs of obtaining related
swaps as authorized in the Bond Authorization Act ("Swaps"),
providing a debt service reserve fund, paying Debt Service (as
defined in paragraph (i) of this Section 12c), and paying all
other costs related to any such bonds or notes.
(b)(1) After its receipt of a certified copy of a report of
the Auditor General of the State of Illinois meeting the
requirements of Section 3-2.3 of the Illinois State Auditing
Act, the Authority may issue $1,348,550,000 aggregate original
principal amount of bonds and notes. After payment of the costs
of issuance and necessary deposits to funds and accounts
established with respect to debt service, the net proceeds of
such bonds or notes shall be deposited only in the Retirement
Plan for Chicago Transit Authority Employees and used only for

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the purposes required by Section 22-101 of the Illinois Pension
Code. Provided that no less than $1,110,500,000 has been
deposited in the Retirement Plan, remaining proceeds of bonds
issued under this subparagraph (b)(1) may be used to pay costs
of issuance and make necessary deposits to funds and accounts
with respect to debt service for bonds and notes issued under
this subparagraph or subparagraph (b)(2).
(2) After its receipt of a certified copy of a report of
the Auditor General of the State of Illinois meeting the
requirements of Section 3-2.3 of the Illinois State Auditing
Act, the Authority may issue $639,680,000 aggregate original
principal amount of bonds and notes. After payment of the costs
of issuance and necessary deposits to funds and accounts
established with respect to debt service, the net proceeds of
such bonds or notes shall be deposited only in the Retiree
Health Care Trust and used only for the purposes required by
Section 22-101B of the Illinois Pension Code. Provided that no
less than $528,800,000 has been deposited in the Retiree Health
Care Trust, remaining proceeds of bonds issued under this
subparagraph (b)(2) may be used to pay costs of issuance and
make necessary deposits to funds and accounts with respect to
debt service for bonds and notes issued under this subparagraph
or subparagraph (b)(1).
(3) In addition, refunding bonds are authorized to be
issued for the purpose of refunding outstanding bonds or notes
issued under this Section 12c.

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(4) The bonds or notes issued under 12c(b)(1) shall be
issued as soon as practicable after the Auditor General issues
the report provided in Section 3-2.3(b) of the Illinois State
Auditing Act. The bonds or notes issued under 12c(b)(2) shall
be issued as soon as practicable after the Auditor General
issues the report provided in Section 3-2.3(c) of the Illinois
State Auditing Act.
(5) With respect to bonds and notes issued under
subparagraph (b), scheduled aggregate annual payments of
interest or deposits into funds and accounts established for
the purpose of such payment shall commence within one year
after the bonds and notes are issued. With respect to principal
and interest, scheduled aggregate annual payments of principal
and interest or deposits into funds and accounts established
for the purpose of such payment shall be not less than 70% in
2009, 80% in 2010, and 90% in 2011, respectively, of scheduled
payments or deposits of principal and interest in 2012 and
shall be substantially equal beginning in 2012 and each year
thereafter. For purposes of this subparagraph (b),
"substantially equal" means that debt service in any full year
after calendar year 2011 is not more than 115% of debt service
in any other full year after calendar year 2011 during the term
of the bonds or notes. For the purposes of this subsection (b),
with respect to bonds and notes that bear interest at a
variable rate, interest shall be assumed at a rate equal to the
rate for United States Treasury Securities - State and Local

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Government Series for the same maturity, plus 75 basis points.
If the Authority enters into a Swap with a counterparty
requiring the Authority to pay a fixed interest rate on a
notional amount, and the Authority has made a determination
that such Swap was entered into for the purpose of providing
substitute interest payments for variable interest rate bonds
or notes of a particular maturity or maturities in a principal
amount equal to the notional amount of the Swap, then during
the term of the Swap for purposes of any calculation of
interest payable on such bonds or notes, the interest rate on
the bonds or notes of such maturity or maturities shall be
determined as if such bonds or notes bore interest at the fixed
interest rate payable by the Authority under such Swap.
(6) No bond or note issued under this Section 12c shall
mature later than December 31, 2040.
(c) The Chicago Transit Board shall provide for the
issuance of bonds or notes as authorized in this Section 12c by
the adoption of an ordinance. The ordinance, together with the
bonds or notes, shall constitute a contract among the
Authority, the owners from time to time of the bonds or notes,
any bond trustee with respect to the bonds or notes, any
related credit enhancer and any provider of any related Swaps.
(d) The Authority is authorized to cause the proceeds of
the bonds or notes, and any interest or investment earnings on
the bonds or notes, and of any Swaps, to be invested until the
proceeds and any interest or investment earnings have been

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deposited with the Retirement Plan or the Retiree Health Care
Trust.
(e) Bonds or notes issued pursuant to this Section 12c may
be general obligations of the Authority, to which shall be
pledged the full faith and credit of the Authority, or may be
obligations payable solely from particular sources of funds all
as may be provided in the authorizing ordinance. The
authorizing ordinance for the bonds and notes, whether or not
general obligations of the Authority, may provide for the Debt
Service (as defined in paragraph (i) of this Section 12c) to
have a claim for payment from particular sources of funds,
including, without limitation, amounts to be paid to the
Authority or a bond trustee. The authorizing ordinance may
provide for the means by which the bonds or notes (and any
related Swaps) may be secured, which may include, a pledge of
any revenues or funds of the Authority from whatever source
which may by law be utilized for paying Debt Service. In
addition to any other security, upon the written approval of
the Regional Transportation Authority by the affirmative vote
of 12 of its then Directors, the ordinance may provide a
specific pledge or assignment of and lien on or security
interest in amounts to be paid to the Authority by the Regional
Transportation Authority and direct payment thereof to the bond
trustee for payment of Debt Service with respect to the bonds
or notes, subject to the provisions of existing lease
agreements of the Authority with any public building

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commission. The authorizing ordinance may also provide a
specific pledge or assignment of and lien on or security
interest in and direct payment to the trustee of all or a
portion of the moneys otherwise payable to the Authority from
the City of Chicago pursuant to an intergovernmental agreement
with the Authority to provide financial assistance to the
Authority. Any such pledge, assignment, lien or security
interest for the benefit of owners of bonds or notes shall be
valid and binding from the time the bonds or notes are issued,
without any physical delivery or further act, and shall be
valid and binding as against and prior to the claims of all
other parties having claims of any kind against the Authority
or any other person, irrespective of whether such other parties
have notice of such pledge, assignment, lien or security
interest, all as provided in the Local Government Debt Reform
Act, as it may be amended from time to time. The bonds or notes
of the Authority issued pursuant to this Section 12c shall have
such priority of payment and as to their claim for payment from
particular sources of funds, including their priority with
respect to obligations of the Authority issued under other
Sections of this Act, all as shall be provided in the
ordinances authorizing the issuance of the bonds or notes. The
ordinance authorizing the issuance of any bonds or notes under
this Section may provide for the creation of, deposits in, and
regulation and disposition of sinking fund or reserve accounts
relating to those bonds or notes and related agreements. The

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ordinance authorizing the issuance of any such bonds or notes
authorized under this Section 12c may contain provisions for
the creation of a separate fund to provide for the payment of
principal of and interest on those bonds or notes and related
agreements. The ordinance may also provide limitations on the
issuance of additional bonds or notes of the Authority.
(f) Bonds or notes issued under this Section 12c shall not
constitute an indebtedness of the Regional Transportation
Authority, the State of Illinois, or of any other political
subdivision of or municipality within the State, except the
Authority.
(g) The ordinance of the Chicago Transit Board authorizing
the issuance of bonds or notes pursuant to this Section 12c may
provide for the appointment of a corporate trustee (which may
be any trust company or bank having the powers of a trust
company within Illinois) with respect to bonds or notes issued
pursuant to this Section 12c. The ordinance shall prescribe the
rights, duties, and powers of the trustee to be exercised for
the benefit of the Authority and the protection of the owners
of bonds or notes issued pursuant to this Section 12c. The
ordinance may provide for the trustee to hold in trust, invest
and use amounts in funds and accounts created as provided by
the ordinance with respect to the bonds or notes in accordance
with this Section 12c. The Authority may apply, as it shall
determine, any amounts received upon the sale of the bonds or
notes to pay any Debt Service on the bonds or notes. The

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ordinance may provide for a trust indenture to set forth terms
of, sources of payment for and security for the bonds and
notes.
(h) The State of Illinois pledges to and agrees with the
owners of the bonds or notes issued pursuant to Section 12c
that the State of Illinois will not limit the powers vested in
the Authority by this Act to pledge and assign its revenues and
funds as security for the payment of the bonds or notes, or
vested in the Regional Transportation Authority by the Regional
Transportation Authority Act or this Act, so as to materially
impair the payment obligations of the Authority under the terms
of any contract made by the Authority with those owners or to
materially impair the rights and remedies of those owners until
those bonds or notes, together with interest and any redemption
premium, and all costs and expenses in connection with any
action or proceedings by or on behalf of such owners are fully
met and discharged. The Authority is authorized to include
these pledges and agreements of the State of Illinois in any
contract with owners of bonds or notes issued pursuant to this
Section 12c.
(i) For purposes of this Section, "Debt Service" with
respect to bonds or notes includes, without limitation,
principal (at maturity or upon mandatory redemption),
redemption premium, interest, periodic, upfront, and
termination payments on Swaps, fees for bond insurance or other
credit enhancement, liquidity facilities, the funding of bond

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or note reserves, bond trustee fees, and all other costs of
providing for the security or payment of the bonds or notes.
(j) The Authority shall adopt a procurement program with
respect to contracts relating to the following service
providers in connection with the issuance of debt for the
benefit of the Retirement Plan for Chicago Transit Authority
Employees: underwriters, bond counsel, financial advisors, and
accountants. The program shall include goals for the payment of
not less than 30% of the total dollar value of the fees from
these contracts to minority-owned minority owned businesses
and women-owned female owned businesses as defined in the
Business Enterprise for Minorities, Women Females, and Persons
with Disabilities Act. The Authority shall conduct outreach to
minority-owned minority owned businesses and women-owned
female owned businesses. Outreach shall include, but is not
limited to, advertisements in periodicals and newspapers,
mailings, and other appropriate media. The Authority shall
submit to the General Assembly a comprehensive report that
shall include, at a minimum, the details of the procurement
plan, outreach efforts, and the results of the efforts to
achieve goals for the payment of fees. The service providers
selected by the Authority pursuant to such program shall not be
subject to approval by the Regional Transportation Authority,
and the Regional Transportation Authority's approval pursuant
to subsection (e) of this Section 12c related to the issuance
of debt shall not be based in any way on the service providers

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selected by the Authority pursuant to this Section.
(k) No person holding an elective office in this State,
holding a seat in the General Assembly, serving as a director,
trustee, officer, or employee of the Regional Transportation
Authority or the Chicago Transit Authority, including the
spouse or minor child of that person, may receive a legal,
banking, consulting, or other fee related to the issuance of
any bond issued by the Chicago Transit Authority pursuant to
this Section.
(Source: P.A. 95-708, eff. 1-18-08.)
Section 120. The School Code is amended by changing Section
10-20.44 as follows:
(105 ILCS 5/10-20.44)
Sec. 10-20.44. Report on contracts.
(a) This Section applies to all school districts, including
a school district organized under Article 34 of this Code.
(b) A school board must list on the district's Internet
website, if any, all contracts over $25,000 and any contract
that the school board enters into with an exclusive bargaining
representative.
(c) Each year, in conjunction with the submission of the
Statement of Affairs to the State Board of Education prior to
December 1, provided for in Section 10-17, each school district
shall submit to the State Board of Education an annual report

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on all contracts over $25,000 awarded by the school district
during the previous fiscal year. The report shall include at
least the following:
(1) the total number of all contracts awarded by the
school district;
(2) the total value of all contracts awarded;
(3) the number of contracts awarded to minority-owned
minority owned businesses, women-owned female owned
businesses, and businesses owned by persons with
disabilities, as defined in the Business Enterprise for
Minorities, Women, Females and Persons with Disabilities
Act, and locally owned businesses; and
(4) the total value of contracts awarded to
minority-owned minority owned businesses, women-owned
female owned businesses, and businesses owned by persons
with disabilities, as defined in the Business Enterprise
for Minorities, Women, Females and Persons with
Disabilities Act, and locally owned businesses.
The report shall be made available to the public, including
publication on the school district's Internet website, if any.
(Source: P.A. 95-707, eff. 1-11-08; 96-328, eff. 8-11-09.)
Section 125. The Public University Energy Conservation Act
is amended by changing Sections 3 and 5-10 as follows:
(110 ILCS 62/3)

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Sec. 3. Applicable laws. Other State laws and related
administrative requirements apply to this Act, including, but
not limited to, the following laws and related administrative
requirements: the Illinois Human Rights Act, the Prevailing
Wage Act, the Public Construction Bond Act, the Public Works
Preference Act (repealed on June 16, 2010 by Public Act
96-929), the Employment of Illinois Workers on Public Works
Act, the Freedom of Information Act, the Open Meetings Act, the
Illinois Architecture Practice Act of 1989, the Professional
Engineering Practice Act of 1989, the Structural Engineering
Practice Act of 1989, the Architectural, Engineering, and Land
Surveying Qualifications Based Selection Act, the Public
Contract Fraud Act, the Business Enterprise for Minorities,
Women Females, and Persons with Disabilities Act, and the
Public Works Employment Discrimination Act.
(Source: P.A. 97-333, eff. 8-12-11.)
(110 ILCS 62/5-10)
Sec. 5-10. Energy conservation measure.
(a) "Energy conservation measure" means any improvement,
repair, alteration, or betterment of any building or facility,
subject to all applicable building codes, owned or operated by
a public university or any equipment, fixture, or furnishing to
be added to or used in any such building or facility that is
designed to reduce energy consumption or operating costs, and
may include, without limitation, one or more of the following:

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(1) Insulation of the building structure or systems
within the building.
(2) Storm windows or doors, caulking or
weatherstripping, multiglazed windows or doors, heat
absorbing or heat reflective glazed and coated window or
door systems, additional glazing, reductions in glass
area, or other window and door system modifications that
reduce energy consumption.
(3) Automated or computerized energy control systems.
(4) Heating, ventilating, or air conditioning system
modifications or replacements.
(5) Replacement or modification of lighting fixtures
to increase the energy efficiency of the lighting system
without increasing the overall illumination of a facility,
unless an increase in illumination is necessary to conform
to the applicable State or local building code for the
lighting system after the proposed modifications are made.
(6) Energy recovery systems.
(7) Energy conservation measures that provide
long-term operating cost reductions.
(b) From the effective date of this amendatory Act of the
96th General Assembly until January 1, 2015, "energy
conservation measure" includes a renewable energy center pilot
project at Eastern Illinois University, provided that:
(1) the University signs a partnership contract with a
qualified energy conservation measure provider as provided

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in this Act;
(2) the University has responsibility for the
qualified provider's actions with regard to applicable
laws;
(3) the University obtains a performance bond in
accordance with this Act;
(4) the University and the qualified provider follow
all aspects of the Prevailing Wage Act as provided by this
Act;
(5) the University and the qualified provider use an
approved list of firms from the Capital Development Board
(CDB), unless the University requires services that are not
typically performed by the firms on CDB's list;
(6) the University provides monthly progress reports
to the Procurement Policy Board, and the University allows
a representative from CDB to monitor the project, provided
that such involvement is at no cost to the University;
(7) the University requires the qualified provider to
follow the provisions of the Business Enterprise for
Minorities, Women Females, and Persons with Disabilities
Act and the Public Works Employment Discrimination Act as
provided in this Act;
(8) the University agrees to award new building
construction work to a responsible bidder, as defined in
Section 30-22 of the Illinois Procurement Code;
(9) the University includes in its contract with the

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qualified provider a requirement that the qualified
provider name the sub-contractors that it will use, and the
qualified provider may not change these without the
University's written approval;
(10) the University follows, to the extent possible,
the Design-Build Procurement Act for construction of the
project, taking into consideration the current status of
the project; for purposes of this Act, the definition of
"State construction agency" in the Design-Build
Procurement Act means Eastern Illinois University for the
purpose of this project;
(11) the University follows, to the extent possible,
the Architectural, Engineering, and Land Surveying
Qualifications Based Selection Act;
(12) the University requires all engineering,
architecture, and design work related to the installation
or modification of facilities be performed by design
professionals licensed by the State of Illinois and
professional design firms registered in the State of
Illinois; and
(13) the University produces annual reports and a final
report describing the project upon completion and files the
reports with the Procurement Policy Board, CDB, and the
General Assembly.
The provisions of this subsection (b), other than this
sentence, are inoperative after January 1, 2015.

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(Source: P.A. 96-16, eff. 6-22-09.)
(110 ILCS 320/1.1 rep.)
Section 130. The University of Illinois at Chicago Act is
amended by repealing Section 1.1.
Section 135. The Illinois State University Law is amended
by changing Section 20-115 as follows:
(110 ILCS 675/20-115)
Sec. 20-115. Illinois Institute for Entrepreneurship
Education.
(a) There is created, effective July 1, 1997, within the
State at Illinois State University, the Illinois Institute for
Entrepreneurship Education, hereinafter referred to as the
Institute.
(b) The Institute created under this Section shall commence
its operations on July 1, 1997 and shall have a board composed
of 15 members representative of education, commerce and
industry, government, or labor, appointed as follows: 2 members
shall be appointees of the Governor, one of whom shall be a
minority or woman female person as defined in Section 2 of the
Business Enterprise for Minorities, Women Females, and Persons
with Disabilities Act; one member shall be an appointee of the
President of the Senate; one member shall be an appointee of
the Minority Leader of the Senate; one member shall be an

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appointee of the Speaker of the House of Representatives; one
member shall be an appointee of the Minority Leader of the
House of Representatives; 2 members shall be appointees of
Illinois State University; one member shall be an appointee of
the Board of Higher Education; one member shall be an appointee
of the State Board of Education; one member shall be an
appointee of the Department of Commerce and Economic
Opportunity; one member shall be an appointee of the Illinois
chapter of Economics America; and 3 members shall be appointed
by majority vote of the other 12 appointed members to represent
business owner-entrepreneurs. Each member shall have expertise
and experience in the area of entrepreneurship education,
including small business and entrepreneurship. The majority of
voting members must be from the private sector. The members
initially appointed to the board of the Institute created under
this Section shall be appointed to take office on July 1, 1997
and shall by lot determine the length of their respective terms
as follows: 5 members shall be selected by lot to serve terms
of one year, 5 members shall be selected by lot to serve terms
of 2 years, and 5 members shall be selected by lot to serve
terms of 3 years. Subsequent appointees shall each serve terms
of 3 years. The board shall annually select a chairperson from
among its members. Each board member shall serve without
compensation but shall be reimbursed for expenses incurred in
the performance of his or her duties.
(c) The purpose of the Institute shall be to foster the

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growth and development of entrepreneurship education in the
State of Illinois. The Institute shall help remedy the
deficiencies in the preparation of entrepreneurship education
teachers, increase the quality and quantity of
entrepreneurship education programs, improve instructional
materials, and prepare personnel to serve as leaders and
consultants in the field of entrepreneurship education and
economic development. The Institute shall promote
entrepreneurship as a career option, promote and support the
development of innovative entrepreneurship education materials
and delivery systems, promote business, industry, and
education partnerships, promote collaboration and involvement
in entrepreneurship education programs, encourage and support
in-service and preservice teacher education programs within
various educational systems, and develop and distribute
relevant materials. The Institute shall provide a framework
under which the public and private sectors may work together
toward entrepreneurship education goals. These goals shall be
achieved by bringing together programs that have an impact on
entrepreneurship education to achieve coordination among
agencies and greater efficiency in the expenditure of funds.
(d) Beginning July 1, 1997, the Institute shall have the
following powers subject to State and Illinois State University
Board of Trustees regulations and guidelines:
(1) To employ and determine the compensation of an
executive director and such staff as it deems necessary;

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(2) To own property and expend and receive funds and
generate funds;
(3) To enter into agreements with public and private
entities in the furtherance of its purpose; and
(4) To request and receive the cooperation and
assistance of all State departments and agencies in the
furtherance of its purpose.
(e) The board of the Institute shall be a policy making
body with the responsibility for planning and developing
Institute programs. The Institute, through the Board of
Trustees of Illinois State University, shall annually report to
the Governor and General Assembly by January 31 as to its
activities and operations, including its findings and
recommendations.
(f) Beginning on July 1, 1997, the Institute created under
this Section shall be deemed designated by law as the successor
to the Illinois Institute for Entrepreneurship Education,
previously created and existing under Section 2-11.5 of the
Public Community College Act until its abolition on July 1,
1997 as provided in that Section. On July 1, 1997, all
financial and other records of the Institute so abolished and
all of its property, whether real or personal, including but
not limited to all inventory and equipment, shall be deemed
transferred by operation of law to the Illinois Institute for
Entrepreneurship Education created under this Section 20-115.
The Illinois Institute for Entrepreneurship Education created

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under this Section 20-115 shall have, with respect to the
predecessor Institute so abolished, all authority, powers, and
duties of a successor agency under Section 10-15 of the
Successor Agency Act.
(Source: P.A. 94-793, eff. 5-19-06.)
Section 140. The Public Utilities Act is amended by
changing Section 9-220 as follows:
(220 ILCS 5/9-220) (from Ch. 111 2/3, par. 9-220)
Sec. 9-220. Rate changes based on changes in fuel costs.
(a) Notwithstanding the provisions of Section 9-201, the
Commission may authorize the increase or decrease of rates and
charges based upon changes in the cost of fuel used in the
generation or production of electric power, changes in the cost
of purchased power, or changes in the cost of purchased gas
through the application of fuel adjustment clauses or purchased
gas adjustment clauses. The Commission may also authorize the
increase or decrease of rates and charges based upon
expenditures or revenues resulting from the purchase or sale of
emission allowances created under the federal Clean Air Act
Amendments of 1990, through such fuel adjustment clauses, as a
cost of fuel. For the purposes of this paragraph, cost of fuel
used in the generation or production of electric power shall
include the amount of any fees paid by the utility for the
implementation and operation of a process for the

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desulfurization of the flue gas when burning high sulfur coal
at any location within the State of Illinois irrespective of
the attainment status designation of such location; but shall
not include transportation costs of coal (i) except to the
extent that for contracts entered into on and after the
effective date of this amendatory Act of 1997, the cost of the
coal, including transportation costs, constitutes the lowest
cost for adequate and reliable fuel supply reasonably available
to the public utility in comparison to the cost, including
transportation costs, of other adequate and reliable sources of
fuel supply reasonably available to the public utility, or (ii)
except as otherwise provided in the next 3 sentences of this
paragraph. Such costs of fuel shall, when requested by a
utility or at the conclusion of the utility's next general
electric rate proceeding, whichever shall first occur, include
transportation costs of coal purchased under existing coal
purchase contracts. For purposes of this paragraph "existing
coal purchase contracts" means contracts for the purchase of
coal in effect on the effective date of this amendatory Act of
1991, as such contracts may thereafter be amended, but only to
the extent that any such amendment does not increase the
aggregate quantity of coal to be purchased under such contract.
Nothing herein shall authorize an electric utility to recover
through its fuel adjustment clause any amounts of
transportation costs of coal that were included in the revenue
requirement used to set base rates in its most recent general

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rate proceeding. Cost shall be based upon uniformly applied
accounting principles. Annually, the Commission shall initiate
public hearings to determine whether the clauses reflect actual
costs of fuel, gas, power, or coal transportation purchased to
determine whether such purchases were prudent, and to reconcile
any amounts collected with the actual costs of fuel, power,
gas, or coal transportation prudently purchased. In each such
proceeding, the burden of proof shall be upon the utility to
establish the prudence of its cost of fuel, power, gas, or coal
transportation purchases and costs. The Commission shall issue
its final order in each such annual proceeding for an electric
utility by December 31 of the year immediately following the
year to which the proceeding pertains, provided, that the
Commission shall issue its final order with respect to such
annual proceeding for the years 1996 and earlier by December
31, 1998.
(b) A public utility providing electric service, other than
a public utility described in subsections (e) or (f) of this
Section, may at any time during the mandatory transition period
file with the Commission proposed tariff sheets that eliminate
the public utility's fuel adjustment clause and adjust the
public utility's base rate tariffs by the amount necessary for
the base fuel component of the base rates to recover the public
utility's average fuel and power supply costs per kilowatt-hour
for the 2 most recent years for which the Commission has issued
final orders in annual proceedings pursuant to subsection (a),

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where the average fuel and power supply costs per kilowatt-hour
shall be calculated as the sum of the public utility's prudent
and allowable fuel and power supply costs as found by the
Commission in the 2 proceedings divided by the public utility's
actual jurisdictional kilowatt-hour sales for those 2 years.
Notwithstanding any contrary or inconsistent provisions in
Section 9-201 of this Act, in subsection (a) of this Section or
in any rules or regulations promulgated by the Commission
pursuant to subsection (g) of this Section, the Commission
shall review and shall by order approve, or approve as
modified, the proposed tariff sheets within 60 days after the
date of the public utility's filing. The Commission may modify
the public utility's proposed tariff sheets only to the extent
the Commission finds necessary to achieve conformance to the
requirements of this subsection (b). During the 5 years
following the date of the Commission's order, but in any event
no earlier than January 1, 2007, a public utility whose fuel
adjustment clause has been eliminated pursuant to this
subsection shall not file proposed tariff sheets seeking, or
otherwise petition the Commission for, reinstatement of a fuel
adjustment clause.
(c) Notwithstanding any contrary or inconsistent
provisions in Section 9-201 of this Act, in subsection (a) of
this Section or in any rules or regulations promulgated by the
Commission pursuant to subsection (g) of this Section, a public
utility providing electric service, other than a public utility

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described in subsection (e) or (f) of this Section, may at any
time during the mandatory transition period file with the
Commission proposed tariff sheets that establish the rate per
kilowatt-hour to be applied pursuant to the public utility's
fuel adjustment clause at the average value for such rate
during the preceding 24 months, provided that such average rate
results in a credit to customers' bills, without making any
revisions to the public utility's base rate tariffs. The
proposed tariff sheets shall establish the fuel adjustment rate
for a specific time period of at least 3 years but not more
than 5 years, provided that the terms and conditions for any
reinstatement earlier than 5 years shall be set forth in the
proposed tariff sheets and subject to modification or approval
by the Commission. The Commission shall review and shall by
order approve the proposed tariff sheets if it finds that the
requirements of this subsection are met. The Commission shall
not conduct the annual hearings specified in the last 3
sentences of subsection (a) of this Section for the utility for
the period that the factor established pursuant to this
subsection is in effect.
(d) A public utility providing electric service, or a
public utility providing gas service may file with the
Commission proposed tariff sheets that eliminate the public
utility's fuel or purchased gas adjustment clause and adjust
the public utility's base rate tariffs to provide for recovery
of power supply costs or gas supply costs that would have been

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recovered through such clause; provided, that the provisions of
this subsection (d) shall not be available to a public utility
described in subsections (e) or (f) of this Section to
eliminate its fuel adjustment clause. Notwithstanding any
contrary or inconsistent provisions in Section 9-201 of this
Act, in subsection (a) of this Section, or in any rules or
regulations promulgated by the Commission pursuant to
subsection (g) of this Section, the Commission shall review and
shall by order approve, or approve as modified in the
Commission's order, the proposed tariff sheets within 240 days
after the date of the public utility's filing. The Commission's
order shall approve rates and charges that the Commission,
based on information in the public utility's filing or on the
record if a hearing is held by the Commission, finds will
recover the reasonable, prudent and necessary jurisdictional
power supply costs or gas supply costs incurred or to be
incurred by the public utility during a 12 month period found
by the Commission to be appropriate for these purposes,
provided, that such period shall be either (i) a 12 month
historical period occurring during the 15 months ending on the
date of the public utility's filing, or (ii) a 12 month future
period ending no later than 15 months following the date of the
public utility's filing. The public utility shall include with
its tariff filing information showing both (1) its actual
jurisdictional power supply costs or gas supply costs for a 12
month historical period conforming to (i) above and (2) its

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projected jurisdictional power supply costs or gas supply costs
for a future 12 month period conforming to (ii) above. If the
Commission's order requires modifications in the tariff sheets
filed by the public utility, the public utility shall have 7
days following the date of the order to notify the Commission
whether the public utility will implement the modified tariffs
or elect to continue its fuel or purchased gas adjustment
clause in force as though no order had been entered. The
Commission's order shall provide for any reconciliation of
power supply costs or gas supply costs, as the case may be, and
associated revenues through the date that the public utility's
fuel or purchased gas adjustment clause is eliminated. During
the 5 years following the date of the Commission's order, a
public utility whose fuel or purchased gas adjustment clause
has been eliminated pursuant to this subsection shall not file
proposed tariff sheets seeking, or otherwise petition the
Commission for, reinstatement or adoption of a fuel or
purchased gas adjustment clause. Nothing in this subsection (d)
shall be construed as limiting the Commission's authority to
eliminate a public utility's fuel adjustment clause or
purchased gas adjustment clause in accordance with any other
applicable provisions of this Act.
(e) Notwithstanding any contrary or inconsistent
provisions in Section 9-201 of this Act, in subsection (a) of
this Section, or in any rules promulgated by the Commission
pursuant to subsection (g) of this Section, a public utility

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providing electric service to more than 1,000,000 customers in
this State may, within the first 6 months after the effective
date of this amendatory Act of 1997, file with the Commission
proposed tariff sheets that eliminate, effective January 1,
1997, the public utility's fuel adjustment clause without
adjusting its base rates, and such tariff sheets shall be
effective upon filing. To the extent the application of the
fuel adjustment clause had resulted in net charges to customers
after January 1, 1997, the utility shall also file a tariff
sheet that provides for a refund stated on a per kilowatt-hour
basis of such charges over a period not to exceed 6 months;
provided however, that such refund shall not include the
proportional amounts of taxes paid under the Use Tax Act,
Service Use Tax Act, Service Occupation Tax Act, and Retailers'
Occupation Tax Act on fuel used in generation. The Commission
shall issue an order within 45 days after the date of the
public utility's filing approving or approving as modified such
tariff sheet. If the fuel adjustment clause is eliminated
pursuant to this subsection, the Commission shall not conduct
the annual hearings specified in the last 3 sentences of
subsection (a) of this Section for the utility for any period
after December 31, 1996 and prior to any reinstatement of such
clause. A public utility whose fuel adjustment clause has been
eliminated pursuant to this subsection shall not file a
proposed tariff sheet seeking, or otherwise petition the
Commission for, reinstatement of the fuel adjustment clause

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prior to January 1, 2007.
(f) Notwithstanding any contrary or inconsistent
provisions in Section 9-201 of this Act, in subsection (a) of
this Section, or in any rules or regulations promulgated by the
Commission pursuant to subsection (g) of this Section, a public
utility providing electric service to more than 500,000
customers but fewer than 1,000,000 customers in this State may,
within the first 6 months after the effective date of this
amendatory Act of 1997, file with the Commission proposed
tariff sheets that eliminate, effective January 1, 1997, the
public utility's fuel adjustment clause and adjust its base
rates by the amount necessary for the base fuel component of
the base rates to recover 91% of the public utility's average
fuel and power supply costs for the 2 most recent years for
which the Commission, as of January 1, 1997, has issued final
orders in annual proceedings pursuant to subsection (a), where
the average fuel and power supply costs per kilowatt-hour shall
be calculated as the sum of the public utility's prudent and
allowable fuel and power supply costs as found by the
Commission in the 2 proceedings divided by the public utility's
actual jurisdictional kilowatt-hour sales for those 2 years,
provided, that such tariff sheets shall be effective upon
filing. To the extent the application of the fuel adjustment
clause had resulted in net charges to customers after January
1, 1997, the utility shall also file a tariff sheet that
provides for a refund stated on a per kilowatt-hour basis of

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such charges over a period not to exceed 6 months. Provided
however, that such refund shall not include the proportional
amounts of taxes paid under the Use Tax Act, Service Use Tax
Act, Service Occupation Tax Act, and Retailers' Occupation Tax
Act on fuel used in generation. The Commission shall issue an
order within 45 days after the date of the public utility's
filing approving or approving as modified such tariff sheet. If
the fuel adjustment clause is eliminated pursuant to this
subsection, the Commission shall not conduct the annual
hearings specified in the last 3 sentences of subsection (a) of
this Section for the utility for any period after December 31,
1996 and prior to any reinstatement of such clause. A public
utility whose fuel adjustment clause has been eliminated
pursuant to this subsection shall not file a proposed tariff
sheet seeking, or otherwise petition the Commission for,
reinstatement of the fuel adjustment clause prior to January 1,
2007.
(g) The Commission shall have authority to promulgate rules
and regulations to carry out the provisions of this Section.
(h) Any Illinois gas utility may enter into a contract on
or before September 30, 2011 for up to 10 years of supply with
any company for the purchase of substitute natural gas (SNG)
produced from coal through the gasification process if the
company has commenced construction of a clean coal SNG facility
by July 1, 2012 and commencement of construction shall mean
that material physical site work has occurred, such as site

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clearing and excavation, water runoff prevention, water
retention reservoir preparation, or foundation development.
The contract shall contain the following provisions: (i) at
least 90% of feedstock to be used in the gasification process
shall be coal with a high volatile bituminous rank and greater
than 1.7 pounds of sulfur per million Btu content; (ii) at the
time the contract term commences, the price per million Btu may
not exceed $7.95 in 2008 dollars, adjusted annually based on
the change in the Annual Consumer Price Index for All Urban
Consumers for the Midwest Region as published in April by the
United States Department of Labor, Bureau of Labor Statistics
(or a suitable Consumer Price Index calculation if this
Consumer Price Index is not available) for the previous
calendar year; provided that the price per million Btu shall
not exceed $9.95 at any time during the contract; (iii) the
utility's supply contract for the purchase of SNG does not
exceed 15% of the annual system supply requirements of the
utility as of 2008; and (iv) the contract costs pursuant to
subsection (h-10) of this Section shall not include any
lobbying expenses, charitable contributions, advertising,
organizational memberships, carbon dioxide pipeline or
sequestration expenses, or marketing expenses.
Any gas utility that is providing service to more than
150,000 customers on August 2, 2011 (the effective date of
Public Act 97-239) shall either elect to enter into a contract
on or before September 30, 2011 for 10 years of SNG supply with

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the owner of a clean coal SNG facility or to file biennial rate
proceedings before the Commission in the years 2012, 2014, and
2016, with such filings made after August 2, 2011 and no later
than September 30 of the years 2012, 2014, and 2016 consistent
with all requirements of 83 Ill. Adm. Code 255 and 285 as
though the gas utility were filing for an increase in its
rates, without regard to whether such filing would produce an
increase, a decrease, or no change in the gas utility's rates,
and the Commission shall review the gas utility's filing and
shall issue its order in accordance with the provisions of
Section 9-201 of this Act.
Within 7 days after August 2, 2011, the owner of the clean
coal SNG facility shall submit to the Illinois Power Agency and
each gas utility that is providing service to more than 150,000
customers on August 2, 2011 a copy of a draft contract. Within
30 days after the receipt of the draft contract, each such gas
utility shall provide the Illinois Power Agency and the owner
of the clean coal SNG facility with its comments and
recommended revisions to the draft contract. Within 7 days
after the receipt of the gas utility's comments and recommended
revisions, the owner of the facility shall submit its
responsive comments and a further revised draft of the contract
to the Illinois Power Agency. The Illinois Power Agency shall
review the draft contract and comments.
During its review of the draft contract, the Illinois Power
Agency shall:

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(1) review and confirm in writing that the terms stated
in this subsection (h) are incorporated in the SNG
contract;
(2) review the SNG pricing formula included in the
contract and approve that formula if the Illinois Power
Agency determines that the formula, at the time the
contract term commences: (A) starts with a price of $6.50
per MMBtu adjusted by the adjusted final capitalized plant
cost; (B) takes into account budgeted miscellaneous net
revenue after cost allowance, including sale of SNG
produced by the clean coal SNG facility above the nameplate
capacity of the facility and other by-products produced by
the facility, as approved by the Illinois Power Agency; (C)
does not include carbon dioxide transportation or
sequestration expenses; and (D) includes all provisions
required under this subsection (h); if the Illinois Power
Agency does not approve of the SNG pricing formula, then
the Illinois Power Agency shall modify the formula to
ensure that it meets the requirements of this subsection
(h);
(3) review and approve the amount of budgeted
miscellaneous net revenue after cost allowance, including
sale of SNG produced by the clean coal SNG facility above
the nameplate capacity of the facility and other
by-products produced by the facility, to be included in the
pricing formula; the Illinois Power Agency shall approve

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the amount of budgeted miscellaneous net revenue to be
included in the pricing formula if it determines the
budgeted amount to be reasonable and accurate;
(4) review and confirm in writing that using the EIA
Annual Energy Outlook-2011 Henry Hub Spot Price, the
contract terms set out in subsection (h), the
reconciliation account terms as set out in subsection
(h-15), and an estimated inflation rate of 2.5% for each
corresponding year, that there will be no cumulative
estimated increase for residential customers; and
(5) allocate the nameplate capacity of the clean coal
SNG by total therms sold to ultimate customers by each gas
utility in 2008; provided, however, no utility shall be
required to purchase more than 42% of the projected annual
output of the facility; additionally, the Illinois Power
Agency shall further adjust the allocation only as required
to take into account (A) adverse consolidation,
derivative, or lease impacts to the balance sheet or income
statement of any gas utility or (B) the physical capacity
of the gas utility to accept SNG.
If the parties to the contract do not agree on the terms
therein, then the Illinois Power Agency shall retain an
independent mediator to mediate the dispute between the
parties. If the parties are in agreement on the terms of the
contract, then the Illinois Power Agency shall approve the
contract. If after mediation the parties have failed to come to

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agreement, then the Illinois Power Agency shall revise the
draft contract as necessary to confirm that the contract
contains only terms that are reasonable and equitable. The
Illinois Power Agency may, in its discretion, retain an
independent, qualified, and experienced expert to assist in its
obligations under this subsection (h). The Illinois Power
Agency shall adopt and make public policies detailing the
processes for retaining a mediator and an expert under this
subsection (h). Any mediator or expert retained under this
subsection (h) shall be retained no later than 60 days after
August 2, 2011.
The Illinois Power Agency shall complete all of its
responsibilities under this subsection (h) within 60 days after
August 2, 2011. The clean coal SNG facility shall pay a
reasonable fee as required by the Illinois Power Agency for its
services under this subsection (h) and shall pay the mediator's
and expert's reasonable fees, if any. A gas utility and its
customers shall have no obligation to reimburse the clean coal
SNG facility or the Illinois Power Agency of any such costs.
Within 30 days after commercial production of SNG has
begun, the Commission shall initiate a review to determine
whether the final capitalized plant cost of the clean coal SNG
facility reflects actual incurred costs and whether the
incurred costs were reasonable. In determining the actual
incurred costs included in the final capitalized plant cost and
the reasonableness of those costs, the Commission may in its

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discretion retain independent, qualified, and experienced
experts to assist in its determination. The expert shall not
own or control any direct or indirect interest in the clean
coal SNG facility and shall have no contractual relationship
with the clean coal SNG facility. If an expert is retained by
the Commission, then the clean coal SNG facility shall pay the
expert's reasonable fees. The fees shall not be passed on to a
utility or its customers. The Commission shall adopt and make
public a policy detailing the process for retaining experts
under this subsection (h).
Within 30 days after completion of its review, the
Commission shall initiate a formal proceeding on the final
capitalized plant cost of the clean coal SNG facility at which
comments and testimony may be submitted by any interested
parties and the public. If the Commission finds that the final
capitalized plant cost includes costs that were not actually
incurred or costs that were unreasonably incurred, then the
Commission shall disallow the amount of non-incurred or
unreasonable costs from the SNG price under contracts entered
into under this subsection (h). If the Commission disallows any
costs, then the Commission shall adjust the SNG price using the
price formula in the contract approved by the Illinois Power
Agency under this subsection (h) to reflect the disallowed
costs and shall enter an order specifying the revised price. In
addition, the Commission's order shall direct the clean coal
SNG facility to issue refunds of such sums as shall represent

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the difference between actual gross revenues and the gross
revenue that would have been obtained based upon the same
volume, from the price revised by the Commission. Any refund
shall include interest calculated at a rate determined by the
Commission and shall be returned according to procedures
prescribed by the Commission.
Nothing in this subsection (h) shall preclude any party
affected by a decision of the Commission under this subsection
(h) from seeking judicial review of the Commission's decision.
(h-1) Any Illinois gas utility may enter into a sourcing
agreement for up to 30 years of supply with the clean coal SNG
brownfield facility if the clean coal SNG brownfield facility
has commenced construction. Any gas utility that is providing
service to more than 150,000 customers on July 13, 2011 (the
effective date of Public Act 97-096) shall either elect to file
biennial rate proceedings before the Commission in the years
2012, 2014, and 2016 or enter into a sourcing agreement or
sourcing agreements with a clean coal SNG brownfield facility
with an initial term of 30 years for either (i) a percentage of
43,500,000,000 cubic feet per year, such that the utilities
entering into sourcing agreements with the clean coal SNG
brownfield facility purchase 100%, allocated by total therms
sold to ultimate customers by each gas utility in 2008 or (ii)
such lesser amount as may be available from the clean coal SNG
brownfield facility; provided that no utility shall be required
to purchase more than 42% of the projected annual output of the

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clean coal SNG brownfield facility, with the remainder of such
utility's obligation to be divided proportionately between the
other utilities, and provided that the Illinois Power Agency
shall further adjust the allocation only as required to take
into account adverse consolidation, derivative, or lease
impacts to the balance sheet or income statement of any gas
utility.
A gas utility electing to file biennial rate proceedings
before the Commission must file a notice of its election with
the Commission within 60 days after July 13, 2011 or its right
to make the election is irrevocably waived. A gas utility
electing to file biennial rate proceedings shall make such
filings no later than August 1 of the years 2012, 2014, and
2016, consistent with all requirements of 83 Ill. Adm. Code 255
and 285 as though the gas utility were filing for an increase
in its rates, without regard to whether such filing would
produce an increase, a decrease, or no change in the gas
utility's rates, and notwithstanding any other provisions of
this Act, the Commission shall fully review the gas utility's
filing and shall issue its order in accordance with the
provisions of Section 9-201 of this Act, regardless of whether
the Commission has approved a formula rate for the gas utility.
Within 15 days after July 13, 2011, the owner of the clean
coal SNG brownfield facility shall submit to the Illinois Power
Agency and each gas utility that is providing service to more
than 150,000 customers on July 13, 2011 a copy of a draft

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sourcing agreement. Within 45 days after receipt of the draft
sourcing agreement, each such gas utility shall provide the
Illinois Power Agency and the owner of a clean coal SNG
brownfield facility with its comments and recommended
revisions to the draft sourcing agreement. Within 15 days after
the receipt of the gas utility's comments and recommended
revisions, the owner of the clean coal SNG brownfield facility
shall submit its responsive comments and a further revised
draft of the sourcing agreement to the Illinois Power Agency.
The Illinois Power Agency shall review the draft sourcing
agreement and comments.
If the parties to the sourcing agreement do not agree on
the terms therein, then the Illinois Power Agency shall retain
an independent mediator to mediate the dispute between the
parties. If the parties are in agreement on the terms of the
sourcing agreement, the Illinois Power Agency shall approve the
final draft sourcing agreement. If after mediation the parties
have failed to come to agreement, then the Illinois Power
Agency shall revise the draft sourcing agreement as necessary
to confirm that the final draft sourcing agreement contains
only terms that are reasonable and equitable. The Illinois
Power Agency shall adopt and make public a policy detailing the
process for retaining a mediator under this subsection (h-1).
Any mediator retained to assist with mediating disputes between
the parties regarding the sourcing agreement shall be retained
no later than 60 days after July 13, 2011.

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Upon approval of a final draft agreement, the Illinois
Power Agency shall submit the final draft agreement to the
Capital Development Board and the Commission no later than 90
days after July 13, 2011. The gas utility and the clean coal
SNG brownfield facility shall pay a reasonable fee as required
by the Illinois Power Agency for its services under this
subsection (h-1) and shall pay the mediator's reasonable fees,
if any. The Illinois Power Agency shall adopt and make public a
policy detailing the process for retaining a mediator under
this Section.
The sourcing agreement between a gas utility and the clean
coal SNG brownfield facility shall contain the following
provisions:
(1) Any and all coal used in the gasification process
must be coal that has high volatile bituminous rank and
greater than 1.7 pounds of sulfur per million Btu content.
(2) Coal and petroleum coke are feedstocks for the
gasification process, with coal comprising at least 50% of
the total feedstock over the term of the sourcing agreement
unless the facility reasonably determines that it is
necessary to use additional petroleum coke to deliver net
consumer savings, in which case the facility shall use coal
for at least 35% of the total feedstock over the term of
any sourcing agreement and with the feedstocks to be
procured in accordance with requirements of Section 1-78 of
the Illinois Power Agency Act.

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(3) The sourcing agreement has an initial term that
once entered into terminates no more than 30 years after
the commencement of the commercial production of SNG at the
clean coal SNG brownfield facility.
(4) The clean coal SNG brownfield facility guarantees a
minimum of $100,000,000 in consumer savings to customers of
the utilities that have entered into sourcing agreements
with the clean coal SNG brownfield facility, calculated in
real 2010 dollars at the conclusion of the term of the
sourcing agreement by comparing the delivered SNG price to
the Chicago City-gate price on a weighted daily basis for
each day over the entire term of the sourcing agreement, to
be provided in accordance with subsection (h-2) of this
Section.
(5) Prior to the clean coal SNG brownfield facility
issuing a notice to proceed to construction, the clean coal
SNG brownfield facility shall establish a consumer
protection reserve account for the benefit of the customers
of the utilities that have entered into sourcing agreements
with the clean coal SNG brownfield facility pursuant to
this subsection (h-1), with cash principal in the amount of
$150,000,000. This cash principal shall only be
recoverable through the consumer protection reserve
account and not as a cost to be recovered in the delivered
SNG price pursuant to subsection (h-3) of this Section. The
consumer protection reserve account shall be maintained

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and administered by an independent trustee that is mutually
agreed upon by the clean coal SNG brownfield facility, the
utilities, and the Commission in an interest-bearing
account in accordance with subsection (h-2) of this
Section.
"Consumer protection reserve account principal maximum
amount" shall mean the maximum amount of principal to be
maintained in the consumer protection reserve account.
During the first 2 years of operation of the facility,
there shall be no consumer protection reserve account
maximum amount. After the first 2 years of operation of the
facility, the consumer protection reserve account maximum
amount shall be $150,000,000. After 5 years of operation,
and every 5 years thereafter, the trustee shall calculate
the 5-year average balance of the consumer protection
reserve account. If the trustee determines that during the
prior 5 years the consumer protection reserve account has
had an average account balance of less than $75,000,000,
then the consumer protection reserve account principal
maximum amount shall be increased by $5,000,000. If the
trustee determines that during the prior 5 years the
consumer protection reserve account has had an average
account balance of more than $75,000,000, then the consumer
protection reserve account principal maximum amount shall
be decreased by $5,000,000.
(6) The clean coal SNG brownfield facility shall

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identify and sell economically viable by-products produced
by the facility.
(7) Fifty percent of all additional net revenue,
defined as miscellaneous net revenue from products
produced by the facility and delivered during the month
after cost allowance for costs associated with additional
net revenue that are not otherwise recoverable pursuant to
subsection (h-3) of this Section, including net revenue
from sales of substitute natural gas derived from the
facility above the nameplate capacity of the facility and
other by-products produced by the facility, shall be
credited to the consumer protection reserve account
pursuant to subsection (h-2) of this Section.
(8) The delivered SNG price per million btu to be paid
monthly by the utility to the clean coal SNG brownfield
facility, which shall be based only upon the following: (A)
a capital recovery charge, operations and maintenance
costs, and sequestration costs, only to the extent approved
by the Commission pursuant to paragraphs (1), (2), and (3)
of subsection (h-3) of this Section; (B) the actual
delivered and processed fuel costs pursuant to paragraph
(4) of subsection (h-3) of this Section; (C) actual costs
of SNG transportation pursuant to paragraph (6) of
subsection (h-3) of this Section; (D) certain taxes and
fees imposed by the federal government, the State, or any
unit of local government as provided in paragraph (6) of

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subsection (h-3) of this Section; and (E) the credit, if
any, from the consumer protection reserve account pursuant
to subsection (h-2) of this Section. The delivered SNG
price per million Btu shall proportionately reflect these
elements over the term of the sourcing agreement.
(9) A formula to translate the recoverable costs and
charges under subsection (h-3) of this Section into the
delivered SNG price per million btu.
(10) Title to the SNG shall pass at a mutually
agreeable point in Illinois, and may provide that, rather
than the utility taking title to the SNG, a mutually agreed
upon third-party gas marketer pursuant to a contract
approved by the Illinois Power Agency or its designee may
take title to the SNG pursuant to an agreement between the
utility, the owner of the clean coal SNG brownfield
facility, and the third-party gas marketer.
(11) A utility may exit the sourcing agreement without
penalty if the clean coal SNG brownfield facility does not
commence construction by July 1, 2015.
(12) A utility is responsible to pay only the
Commission determined unit price cost of SNG that is
purchased by the utility. Nothing in the sourcing agreement
will obligate a utility to invest capital in a clean coal
SNG brownfield facility.
(13) The quality of SNG must, at a minimum, be
equivalent to the quality required for interstate pipeline

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gas before a utility is required to accept and pay for SNG
gas.
(14) Nothing in the sourcing agreement will require a
utility to construct any facilities to accept delivery of
SNG. Provided, however, if a utility is required by law or
otherwise elects to connect the clean coal SNG brownfield
facility to an interstate pipeline, then the utility shall
be entitled to recover pursuant to its tariffs all just and
reasonable costs that are prudently incurred. Any costs
incurred by the utility to receive, deliver, manage, or
otherwise accommodate purchases under the SNG sourcing
agreement will be fully recoverable through a utility's
purchased gas adjustment clause rider mechanism in
conjunction with a SNG brownfield facility rider
mechanism. The SNG brownfield facility rider mechanism (A)
shall be applicable to all customers who receive
transportation service from the utility, (B) shall be
designed to have an equal percent impact on the
transportation services rates of each class of the
utility's customers, and (C) shall accurately reflect the
net consumer savings, if any, and above-market costs, if
any, associated with the utility receiving, delivering,
managing, or otherwise accommodating purchases under the
SNG sourcing agreement.
(15) Remedies for the clean coal SNG brownfield
facility's failure to deliver a designated amount for a

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designated period.
(16) The clean coal SNG brownfield facility shall make
a good faith effort to ensure that an amount equal to not
less than 15% of the value of its prime construction
contract for the facility shall be established as a goal to
be awarded to minority-owned minority owned businesses,
women-owned female owned businesses, and businesses owned
by a person with a disability; provided that at least 75%
of the amount of such total goal shall be for
minority-owned minority owned businesses. "Minority-owned
Minority owned business", "women-owned female owned
business", and "business owned by a person with a
disability" shall have the meanings ascribed to them in
Section 2 of the Business Enterprise for Minorities, Women,
Females and Persons with Disabilities Act.
(17) Prior to the clean coal SNG brownfield facility
issuing a notice to proceed to construction, the clean coal
SNG brownfield facility shall file with the Commission a
certificate from an independent engineer that the clean
coal SNG brownfield facility has (A) obtained all
applicable State and federal environmental permits
required for construction; (B) obtained approval from the
Commission of a carbon capture and sequestration plan; and
(C) obtained all necessary permits required for
construction for the transportation and sequestration of
carbon dioxide as set forth in the Commission-approved

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carbon capture and sequestration plan.
(h-2) Consumer protection reserve account. The clean coal
SNG brownfield facility shall guarantee a minimum of
$100,000,000 in consumer savings to customers of the utilities
that have entered into sourcing agreements with the clean coal
SNG brownfield facility, calculated in real 2010 dollars at the
conclusion of the term of the sourcing agreement by comparing
the delivered SNG price to the Chicago City-gate price on a
weighted daily basis for each day over the entire term of the
sourcing agreement. Prior to the clean coal SNG brownfield
facility issuing a notice to proceed to construction, the clean
coal SNG brownfield facility shall establish a consumer
protection reserve account for the benefit of the retail
customers of the utilities that have entered into sourcing
agreements with the clean coal SNG brownfield facility pursuant
to subsection (h-1), with cash principal in the amount of
$150,000,000. Such cash principal shall only be recovered
through the consumer protection reserve account and not as a
cost to be recovered in the delivered SNG price pursuant to
subsection (h-3) of this Section. The consumer protection
reserve account shall be maintained and administered by an
independent trustee that is mutually agreed upon by the clean
coal SNG brownfield facility, the utilities, and the Commission
in an interest-bearing account in accordance with the
following:
(1) The clean coal SNG brownfield facility monthly

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shall calculate (A) the difference between the monthly
delivered SNG price and the Chicago City-gate price, by
comparing the delivered SNG price, which shall include the
cost of transportation to the delivery point, if any, to
the Chicago City-gate price on a weighted daily basis for
each day of the prior month based upon a mutually agreed
upon published index and (B) the overage amount, if any, by
calculating the annualized incremental additional cost, if
any, of the delivered SNG in excess of 2.015% of the
average annual inflation-adjusted amounts paid by all gas
distribution customers in connection with natural gas
service during the 5 years ending May 31, 2010.
(2) During the first 2 years of operation of the
facility:
(A) to the extent there is an overage amount, the
consumer protection reserve account shall be used to
provide a credit to reduce the SNG price by an amount
equal to the overage amount; and
(B) to the extent the monthly delivered SNG price
is less than or equal to the Chicago City-gate price,
the utility shall credit the difference between the
monthly delivered SNG price and the monthly Chicago
City-gate price, if any, to the consumer protection
reserve account. Such credit issued pursuant to this
paragraph (B) shall be deemed prudent and reasonable
and not subject to a Commission prudence review;

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(3) After 2 years of operation of the facility, and
monthly, on an on-going basis, thereafter:
(A) to the extent that the monthly delivered SNG
price is less than or equal to the Chicago City-gate
price, calculated using the weighted average of the
daily Chicago City-gate price on a daily basis over the
entire month, the utility shall credit the difference,
if any, to the consumer protection reserve account.
Such credit issued pursuant to this subparagraph (A)
shall be deemed prudent and reasonable and not subject
to a Commission prudence review;
(B) any amounts in the consumer protection reserve
account in excess of the consumer protection reserve
account principal maximum amount shall be distributed
as follows: (i) if retail customers have not realized
net consumer savings, calculated by comparing the
delivered SNG price to the weighted average of the
daily Chicago City-gate price on a daily basis over the
entire term of the sourcing agreement to date, then 50%
of any amounts in the consumer protection reserve
account in excess of the consumer protection reserve
account principal maximum shall be distributed to the
clean coal SNG brownfield facility, with the remaining
50% of any such additional amounts being credited to
retail customers, and (ii) if retail customers have
realized net consumer savings, then 100% of any amounts

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in the consumer protection reserve account in excess of
the consumer protection reserve account principal
maximum shall be distributed to the clean coal SNG
brownfield facility; provided, however, that under no
circumstances shall the total cumulative amount
distributed to the clean coal SNG brownfield facility
under this subparagraph (B) exceed $150,000,000;
(C) to the extent there is an overage amount, after
distributing the amounts pursuant to subparagraph (B)
of this paragraph (3), if any, the consumer protection
reserve account shall be used to provide a credit to
reduce the SNG price by an amount equal to the overage
amount;
(D) if retail customers have realized net consumer
savings, calculated by comparing the delivered SNG
price to the weighted average of the daily Chicago
City-gate price on a daily basis over the entire term
of the sourcing agreement to date, then after
distributing the amounts pursuant to subparagraphs (B)
and (C) of this paragraph (3), 50% of any additional
amounts in the consumer protection reserve account in
excess of the consumer protection reserve account
principal maximum shall be distributed to the clean
coal SNG brownfield facility, with the remaining 50% of
any such additional amounts being credited to retail
customers; provided, however, that if retail customers

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have not realized such net consumer savings, no such
distribution shall be made to the clean coal SNG
brownfield facility, and 100% of such additional
amounts shall be credited to the retail customers to
the extent the consumer protection reserve account
exceeds the consumer protection reserve account
principal maximum amount.
(4) Fifty percent of all additional net revenue,
defined as miscellaneous net revenue after cost allowance
for costs associated with additional net revenue that are
not otherwise recoverable pursuant to subsection (h-3) of
this Section, including net revenue from sales of
substitute natural gas derived from the facility above the
nameplate capacity of the facility and other by-products
produced by the facility, shall be credited to the consumer
protection reserve account.
(5) At the conclusion of the term of the sourcing
agreement, to the extent retail customers have not saved
the minimum of $100,000,000 in consumer savings as
guaranteed in this subsection (h-2), amounts in the
consumer protection reserve account shall be credited to
retail customers to the extent the retail customers have
saved the minimum of $100,000,000; 50% of any additional
amounts in the consumer protection reserve account shall be
distributed to the company, and the remaining 50% shall be
distributed to retail customers.

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(6) If, at the conclusion of the term of the sourcing
agreement, the customers have not saved the minimum
$100,000,000 in savings as guaranteed in this subsection
(h-2) and the consumer protection reserve account has been
depleted, then the clean coal SNG brownfield facility shall
be liable for any remaining amount owed to the retail
customers to the extent that the customers are provided
with the $100,000,000 in savings as guaranteed in this
subsection (h-2). The retail customers shall have first
priority in recovering that debt above any creditors,
except the original senior secured lender to the extent
that the original senior secured lender has any senior
secured debt outstanding, including any clean coal SNG
brownfield facility parent companies or affiliates.
(7) The clean coal SNG brownfield facility, the
utilities, and the trustee shall work together to take
commercially reasonable steps to minimize the tax impact of
these transactions, while preserving the consumer
benefits.
(8) The clean coal SNG brownfield facility shall each
month, starting in the facility's first year of commercial
operation, file with the Commission, in such form as the
Commission shall require, a report as to the consumer
protection reserve account. The monthly report must
contain the following information:
(A) the extent the monthly delivered SNG price is

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greater than, less than, or equal to the Chicago
City-gate price;
(B) the amount credited or debited to the consumer
protection reserve account during the month;
(C) the amounts credited to consumers and
distributed to the clean coal SNG brownfield facility
during the month;
(D) the total amount of the consumer protection
reserve account at the beginning and end of the month;
(E) the total amount of consumer savings to date;
(F) a confidential summary of the inputs used to
calculate the additional net revenue; and
(G) any other additional information the
Commission shall require.
When any report is erroneous or defective or appears to
the Commission to be erroneous or defective, the Commission
may notify the clean coal SNG brownfield facility to amend
the report within 30 days, and, before or after the
termination of the 30-day period, the Commission may
examine the trustee of the consumer protection reserve
account or the officers, agents, employees, books,
records, or accounts of the clean coal SNG brownfield
facility and correct such items in the report as upon such
examination the Commission may find defective or
erroneous. All reports shall be under oath.
All reports made to the Commission by the clean coal

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SNG brownfield facility and the contents of the reports
shall be open to public inspection and shall be deemed a
public record under the Freedom of Information Act. Such
reports shall be preserved in the office of the Commission.
The Commission shall publish an annual summary of the
reports prior to February 1 of the following year. The
annual summary shall be made available to the public on the
Commission's website and shall be submitted to the General
Assembly.
Any facility that fails to file a report required under
this paragraph (8) to the Commission within the time
specified or to make specific answer to any question
propounded by the Commission within 30 days from the time
it is lawfully required to do so, or within such further
time not to exceed 90 days as may in its discretion be
allowed by the Commission, shall pay a penalty of $500 to
the Commission for each day it is in default.
Any person who willfully makes any false report to the
Commission or to any member, officer, or employee thereof,
any person who willfully in a report withholds or fails to
provide material information to which the Commission is
entitled under this paragraph (8) and which information is
either required to be filed by statute, rule, regulation,
order, or decision of the Commission or has been requested
by the Commission, and any person who willfully aids or
abets such person shall be guilty of a Class A misdemeanor.

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(h-3) Recoverable costs and revenue by the clean coal SNG
brownfield facility.
(1) A capital recovery charge approved by the
Commission shall be recoverable by the clean coal SNG
brownfield facility under a sourcing agreement. The
capital recovery charge shall be comprised of capital costs
and a reasonable rate of return. "Capital costs" means
costs to be incurred in connection with the construction
and development of a facility, as defined in Section 1-10
of the Illinois Power Agency Act, and such other costs as
the Capital Development Board deems appropriate to be
recovered in the capital recovery charge.
(A) Capital costs. The Capital Development Board
shall calculate a range of capital costs that it
believes would be reasonable for the clean coal SNG
brownfield facility to recover under the sourcing
agreement. In making this determination, the Capital
Development Board shall review the facility cost
report, if any, of the clean coal SNG brownfield
facility, adjusting the results based on the change in
the Annual Consumer Price Index for All Urban Consumers
for the Midwest Region as published in April by the
United States Department of Labor, Bureau of Labor
Statistics, the final draft of the sourcing agreement,
and the rate of return approved by the Commission. In
addition, the Capital Development Board may consult as

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much as it deems necessary with the clean coal SNG
brownfield facility and conduct whatever research and
investigation it deems necessary.
The Capital Development Board shall retain an
engineering expert to assist in determining both the
range of capital costs and the range of operations and
maintenance costs that it believes would be reasonable
for the clean coal SNG brownfield facility to recover
under the sourcing agreement. Provided, however, that
such expert shall: (i) not have been involved in the
clean coal SNG brownfield facility's facility cost
report, if any, (ii) not own or control any direct or
indirect interest in the initial clean coal facility,
and (iii) have no contractual relationship with the
clean coal SNG brownfield facility. In order to qualify
as an independent expert, a person or company must
have:
(i) direct previous experience conducting
front-end engineering and design studies for
large-scale energy facilities and administering
large-scale energy operations and maintenance
contracts, which may be particularized to the
specific type of financing associated with the
clean coal SNG brownfield facility;
(ii) an advanced degree in economics,
mathematics, engineering, or a related area of

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study;
(iii) ten years of experience in the energy
sector, including construction and risk management
experience;
(iv) expertise in assisting companies with
obtaining financing for large-scale energy
projects, which may be particularized to the
specific type of financing associated with the
clean coal SNG brownfield facility;
(v) expertise in operations and maintenance
which may be particularized to the specific type of
operations and maintenance associated with the
clean coal SNG brownfield facility;
(vi) expertise in credit and contract
protocols;
(vii) adequate resources to perform and
fulfill the required functions and
responsibilities; and
(viii) the absence of a conflict of interest
and inappropriate bias for or against an affected
gas utility or the clean coal SNG brownfield
facility.
The clean coal SNG brownfield facility and the
Illinois Power Agency shall cooperate with the Capital
Development Board in any investigation it deems
necessary. The Capital Development Board shall make

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its final determination of the range of capital costs
confidentially and shall submit that range to the
Commission in a confidential filing within 120 days
after July 13, 2011 (the effective date of Public Act
97-096). The clean coal SNG brownfield facility shall
submit to the Commission its estimate of the capital
costs to be recovered under the sourcing agreement.
Only after the clean coal SNG brownfield facility has
submitted this estimate shall the Commission publicly
announce the range of capital costs submitted by the
Capital Development Board.
In the event that the estimate submitted by the
clean coal SNG brownfield facility is within or below
the range submitted by the Capital Development Board,
the clean coal SNG brownfield facility's estimate
shall be approved by the Commission as the amount of
capital costs to be recovered under the sourcing
agreement. In the event that the estimate submitted by
the clean coal SNG brownfield facility is above the
range submitted by the Capital Development Board, the
amount of capital costs at the lowest end of the range
submitted by the Capital Development Board shall be
approved by the Commission as the amount of capital
costs to be recovered under the sourcing agreement.
Within 15 days after the Capital Development Board has
submitted its range and the clean coal SNG brownfield

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facility has submitted its estimate, the Commission
shall approve the capital costs for the clean coal SNG
brownfield facility.
The Capital Development Board shall monitor the
construction of the clean coal SNG brownfield facility
for the full duration of construction to assess
potential cost overruns. The Capital Development
Board, in its discretion, may retain an expert to
facilitate such monitoring. The clean coal SNG
brownfield facility shall pay a reasonable fee as
required by the Capital Development Board for the
Capital Development Board's services under this
subsection (h-3) to be deposited into the Capital
Development Board Revolving Fund, and such fee shall
not be passed through to a utility or its customers. If
an expert is retained by the Capital Development Board
for monitoring of construction, then the clean coal SNG
brownfield facility must pay for the expert's
reasonable fees and such costs shall not be passed
through to a utility or its customers.
(B) Rate of Return. No later than 30 days after the
date on which the Illinois Power Agency submits a final
draft sourcing agreement, the Commission shall hold a
public hearing to determine the rate of return to be
recovered under the sourcing agreement. Rate of return
shall be comprised of the clean coal SNG brownfield

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facility's actual cost of debt, including
mortgage-style amortization, and a reasonable return
on equity. The Commission shall post notice of the
hearing on its website no later than 10 days prior to
the date of the hearing. The Commission shall provide
the public and all interested parties, including the
gas utilities, the Attorney General, and the Illinois
Power Agency, an opportunity to be heard.
In determining the return on equity, the
Commission shall select a commercially reasonable
return on equity taking into account the return on
equity being received by developers of similar
facilities in or outside of Illinois, the need to
balance an incentive for clean-coal technology with
the need to protect ratepayers from high gas prices,
the risks being borne by the clean coal SNG brownfield
facility in the final draft sourcing agreement, and any
other information that the Commission may deem
relevant. The Commission may establish a return on
equity that varies with the amount of savings, if any,
to customers during the term of the sourcing agreement,
comparing the delivered SNG price to a daily weighted
average price of natural gas, based upon an index. The
Illinois Power Agency shall recommend a return on
equity to the Commission using the same criteria.
Within 60 days after receiving the final draft sourcing

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agreement from the Illinois Power Agency, the
Commission shall approve the rate of return for the
clean coal brownfield facility. Within 30 days after
obtaining debt financing for the clean coal SNG
brownfield facility, the clean coal SNG brownfield
facility shall file a notice with the Commission
identifying the actual cost of debt.
(2) Operations and maintenance costs approved by the
Commission shall be recoverable by the clean coal SNG
brownfield facility under the sourcing agreement. The
operations and maintenance costs mean costs that have been
incurred for the administration, supervision, operation,
maintenance, preservation, and protection of the clean
coal SNG brownfield facility's physical plant.
The Capital Development Board shall calculate a range
of operations and maintenance costs that it believes would
be reasonable for the clean coal SNG brownfield facility to
recover under the sourcing agreement, incorporating an
inflation index or combination of inflation indices to most
accurately reflect the actual costs of operating the clean
coal SNG brownfield facility. In making this
determination, the Capital Development Board shall review
the facility cost report, if any, of the clean coal SNG
brownfield facility, adjusting the results for inflation
based on the change in the Annual Consumer Price Index for
All Urban Consumers for the Midwest Region as published in

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April by the United States Department of Labor, Bureau of
Labor Statistics, the final draft of the sourcing
agreement, and the rate of return approved by the
Commission. In addition, the Capital Development Board may
consult as much as it deems necessary with the clean coal
SNG brownfield facility and conduct whatever research and
investigation it deems necessary. As set forth in
subparagraph (A) of paragraph (1) of this subsection (h-3),
the Capital Development Board shall retain an independent
engineering expert to assist in determining both the range
of operations and maintenance costs that it believes would
be reasonable for the clean coal SNG brownfield facility to
recover under the sourcing agreement. The clean coal SNG
brownfield facility and the Illinois Power Agency shall
cooperate with the Capital Development Board in any
investigation it deems necessary. The Capital Development
Board shall make its final determination of the range of
operations and maintenance costs confidentially and shall
submit that range to the Commission in a confidential
filing within 120 days after July 13, 2011.
The clean coal SNG brownfield facility shall submit to
the Commission its estimate of the operations and
maintenance costs to be recovered under the sourcing
agreement. Only after the clean coal SNG brownfield
facility has submitted this estimate shall the Commission
publicly announce the range of operations and maintenance

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costs submitted by the Capital Development Board. In the
event that the estimate submitted by the clean coal SNG
brownfield facility is within or below the range submitted
by the Capital Development Board, the clean coal SNG
brownfield facility's estimate shall be approved by the
Commission as the amount of operations and maintenance
costs to be recovered under the sourcing agreement. In the
event that the estimate submitted by the clean coal SNG
brownfield facility is above the range submitted by the
Capital Development Board, the amount of operations and
maintenance costs at the lowest end of the range submitted
by the Capital Development Board shall be approved by the
Commission as the amount of operations and maintenance
costs to be recovered under the sourcing agreement. Within
15 days after the Capital Development Board has submitted
its range and the clean coal SNG brownfield facility has
submitted its estimate, the Commission shall approve the
operations and maintenance costs for the clean coal SNG
brownfield facility.
The clean coal SNG brownfield facility shall pay for
the independent engineering expert's reasonable fees and
such costs shall not be passed through to a utility or its
customers. The clean coal SNG brownfield facility shall pay
a reasonable fee as required by the Capital Development
Board for the Capital Development Board's services under
this subsection (h-3) to be deposited into the Capital

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Development Board Revolving Fund, and such fee shall not be
passed through to a utility or its customers.
(3) Sequestration costs approved by the Commission
shall be recoverable by the clean coal SNG brownfield
facility. "Sequestration costs" means costs to be incurred
by the clean coal SNG brownfield facility in accordance
with its Commission-approved carbon capture and
sequestration plan to:
(A) capture carbon dioxide;
(B) build, operate, and maintain a sequestration
site in which carbon dioxide may be injected;
(C) build, operate, and maintain a carbon dioxide
pipeline; and
(D) transport the carbon dioxide to the
sequestration site or a pipeline.
The Commission shall assess the prudency of the
sequestration costs for the clean coal SNG brownfield
facility before construction commences at the
sequestration site or pipeline. Any revenues the clean coal
SNG brownfield facility receives as a result of the
capture, transportation, or sequestration of carbon
dioxide shall be first credited against all sequestration
costs, with the positive balance, if any, treated as
additional net revenue.
The Commission may, in its discretion, retain an expert
to assist in its review of sequestration costs. The clean

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coal SNG brownfield facility shall pay for the expert's
reasonable fees if an expert is retained by the Commission,
and such costs shall not be passed through to a utility or
its customers. Once made, the Commission's determination
of the amount of recoverable sequestration costs shall not
be increased unless the clean coal SNG brownfield facility
can show by clear and convincing evidence that (i) the
costs were not reasonably foreseeable; (ii) the costs were
due to circumstances beyond the clean coal SNG brownfield
facility's control; and (iii) the clean coal SNG brownfield
facility took all reasonable steps to mitigate the costs.
If the Commission determines that sequestration costs may
be increased, the Commission shall provide for notice and a
public hearing for approval of the increased sequestration
costs.
(4) Actual delivered and processed fuel costs shall be
set by the Illinois Power Agency through a SNG feedstock
procurement, pursuant to Sections 1-20, 1-77, and 1-78 of
the Illinois Power Agency Act, to be performed at least
every 5 years and purchased by the clean coal SNG
brownfield facility pursuant to feedstock procurement
contracts developed by the Illinois Power Agency, with coal
comprising at least 50% of the total feedstock over the
term of the sourcing agreement and petroleum coke
comprising the remainder of the SNG feedstock. If the
Commission fails to approve a feedstock procurement plan or

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fails to approve the results of a feedstock procurement
event, then the fuel shall be purchased by the company
month-by-month on the spot market and those actual
delivered and processed fuel costs shall be recoverable
under the sourcing agreement. If a supplier defaults under
the terms of a procurement contract, then the Illinois
Power Agency shall immediately initiate a feedstock
procurement process to obtain a replacement supply, and,
prior to the conclusion of that process, fuel shall be
purchased by the company month-by-month on the spot market
and those actual delivered and processed fuel costs shall
be recoverable under the sourcing agreement.
(5) Taxes and fees imposed by the federal government,
the State, or any unit of local government applicable to
the clean coal SNG brownfield facility, excluding income
tax, shall be recoverable by the clean coal SNG brownfield
facility under the sourcing agreement to the extent such
taxes and fees were not applicable to the facility on July
13, 2011.
(6) The actual transportation costs, in accordance
with the applicable utility's tariffs, and third-party
marketer costs incurred by the company, if any, associated
with transporting the SNG from the clean coal SNG
brownfield facility to the Chicago City-gate to sell such
SNG into the natural gas markets shall be recoverable under
the sourcing agreement.

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(7) Unless otherwise provided, within 30 days after a
decision of the Commission on recoverable costs under this
Section, any interested party to the Commission's decision
may apply for a rehearing with respect to the decision. The
Commission shall receive and consider the application for
rehearing and shall grant or deny the application in whole
or in part within 20 days after the date of the receipt of
the application by the Commission. If no rehearing is
applied for within the required 30 days or an application
for rehearing is denied, then the Commission decision shall
be final. If an application for rehearing is granted, then
the Commission shall hold a rehearing within 30 days after
granting the application. The decision of the Commission
upon rehearing shall be final.
Any person affected by a decision of the Commission
under this subsection (h-3) may have the decision reviewed
only under and in accordance with the Administrative Review
Law. Unless otherwise provided, the provisions of the
Administrative Review Law, all amendments and
modifications to that Law, and the rules adopted pursuant
to that Law shall apply to and govern all proceedings for
the judicial review of final administrative decisions of
the Commission under this subsection (h-3). The term
"administrative decision" is defined as in Section 3-101 of
the Code of Civil Procedure.
(8) The Capital Development Board shall adopt and make

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public a policy detailing the process for retaining experts
under this Section. Any experts retained to assist with
calculating the range of capital costs or operations and
maintenance costs shall be retained no later than 45 days
after July 13, 2011.
(h-4) No later than 90 days after the Illinois Power Agency
submits the final draft sourcing agreement pursuant to
subsection (h-1), the Commission shall approve a sourcing
agreement containing (i) the capital costs, rate of return, and
operations and maintenance costs established pursuant to
subsection (h-3) and (ii) all other terms and conditions,
rights, provisions, exceptions, and limitations contained in
the final draft sourcing agreement; provided, however, the
Commission shall correct typographical and scrivener's errors
and modify the contract only as necessary to provide that the
gas utility does not have the right to terminate the sourcing
agreement due to any future events that may occur other than
the clean coal SNG brownfield facility's failure to timely meet
milestones, uncured default, extended force majeure, or
abandonment. Once the sourcing agreement is approved, then the
gas utility subject to that sourcing agreement shall have 45
days after the date of the Commission's approval to enter into
the sourcing agreement.
(h-5) Sequestration enforcement.
(A) All contracts entered into under subsection (h) of
this Section and all sourcing agreements under subsection

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(h-1) of this Section, regardless of duration, shall
require the owner of any facility supplying SNG under the
contract or sourcing agreement to provide certified
documentation to the Commission each year, starting in the
facility's first year of commercial operation, accurately
reporting the quantity of carbon dioxide emissions from the
facility that have been captured and sequestered and
reporting any quantities of carbon dioxide released from
the site or sites at which carbon dioxide emissions were
sequestered in prior years, based on continuous monitoring
of those sites.
(B) If, in any year, the owner of the clean coal SNG
facility fails to demonstrate that the SNG facility
captured and sequestered at least 90% of the total carbon
dioxide emissions that the facility would otherwise emit or
that sequestration of emissions from prior years has
failed, resulting in the release of carbon dioxide into the
atmosphere, then the owner of the clean coal SNG facility
must pay a penalty of $20 per ton of excess carbon dioxide
emissions not to exceed $40,000,000, in any given year
which shall be deposited into the Energy Efficiency Trust
Fund and distributed pursuant to subsection (b) of Section
6-6 of the Renewable Energy, Energy Efficiency, and Coal
Resources Development Law of 1997. On or before the 5-year
anniversary of the execution of the contract and every 5
years thereafter, an expert hired by the owner of the

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facility with the approval of the Attorney General shall
conduct an analysis to determine the cost of sequestration
of at least 90% of the total carbon dioxide emissions the
plant would otherwise emit. If the analysis shows that the
actual annual cost is greater than the penalty, then the
penalty shall be increased to equal the actual cost.
Provided, however, to the extent that the owner of the
facility described in subsection (h) of this Section can
demonstrate that the failure was as a result of acts of God
(including fire, flood, earthquake, tornado, lightning,
hurricane, or other natural disaster); any amendment,
modification, or abrogation of any applicable law or
regulation that would prevent performance; war; invasion;
act of foreign enemies; hostilities (regardless of whether
war is declared); civil war; rebellion; revolution;
insurrection; military or usurped power or confiscation;
terrorist activities; civil disturbance; riots;
nationalization; sabotage; blockage; or embargo, the owner
of the facility described in subsection (h) of this Section
shall not be subject to a penalty if and only if (i) it
promptly provides notice of its failure to the Commission;
(ii) as soon as practicable and consistent with any order
or direction from the Commission, it submits to the
Commission proposed modifications to its carbon capture
and sequestration plan; and (iii) it carries out its
proposed modifications in the manner and time directed by

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the Commission.
If the Commission finds that the facility has not
satisfied each of these requirements, then the facility
shall be subject to the penalty. If the owner of the clean
coal SNG facility captured and sequestered more than 90% of
the total carbon dioxide emissions that the facility would
otherwise emit, then the owner of the facility may credit
such additional amounts to reduce the amount of any future
penalty to be paid. The penalty resulting from the failure
to capture and sequester at least the minimum amount of
carbon dioxide shall not be passed on to a utility or its
customers.
If the clean coal SNG facility fails to meet the
requirements specified in this subsection (h-5), then the
Attorney General, on behalf of the People of the State of
Illinois, shall bring an action to enforce the obligations
related to the facility set forth in this subsection (h-5),
including any penalty payments owed, but not including the
physical obligation to capture and sequester at least 90%
of the total carbon dioxide emissions that the facility
would otherwise emit. Such action may be filed in any
circuit court in Illinois. By entering into a contract
pursuant to subsection (h) of this Section, the clean coal
SNG facility agrees to waive any objections to venue or to
the jurisdiction of the court with regard to the Attorney
General's action under this subsection (h-5).

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Compliance with the sequestration requirements and any
penalty requirements specified in this subsection (h-5)
for the clean coal SNG facility shall be assessed annually
by the Commission, which may in its discretion retain an
expert to facilitate its assessment. If any expert is
retained by the Commission, then the clean coal SNG
facility shall pay for the expert's reasonable fees, and
such costs shall not be passed through to the utility or
its customers.
In addition, carbon dioxide emission credits received
by the clean coal SNG facility in connection with
sequestration of carbon dioxide from the facility must be
sold in a timely fashion with any revenue, less applicable
fees and expenses and any expenses required to be paid by
facility for carbon dioxide transportation or
sequestration, deposited into the reconciliation account
within 30 days after receipt of such funds by the owner of
the clean coal SNG facility.
The clean coal SNG facility is prohibited from
transporting or sequestering carbon dioxide unless the
owner of the carbon dioxide pipeline that transfers the
carbon dioxide from the facility and the owner of the
sequestration site where the carbon dioxide captured by the
facility is stored has acquired all applicable permits
under applicable State and federal laws, statutes, rules,
or regulations prior to the transfer or sequestration of

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carbon dioxide. The responsibility for compliance with the
sequestration requirements specified in this subsection
(h-5) for the clean coal SNG facility shall reside solely
with the clean coal SNG facility, regardless of whether the
facility has contracted with another party to capture,
transport, or sequester carbon dioxide.
(C) If, in any year, the owner of a clean coal SNG
brownfield facility fails to demonstrate that the clean
coal SNG brownfield facility captured and sequestered at
least 85% of the total carbon dioxide emissions that the
facility would otherwise emit, then the owner of the clean
coal SNG brownfield facility must pay a penalty of $20 per
ton of excess carbon emissions up to $20,000,000, which
shall be deposited into the Energy Efficiency Trust Fund
and distributed pursuant to subsection (b) of Section 6-6
of the Renewable Energy, Energy Efficiency, and Coal
Resources Development Law of 1997. Provided, however, to
the extent that the owner of the clean coal SNG brownfield
facility can demonstrate that the failure was as a result
of acts of God (including fire, flood, earthquake, tornado,
lightning, hurricane, or other natural disaster); any
amendment, modification, or abrogation of any applicable
law or regulation that would prevent performance; war;
invasion; act of foreign enemies; hostilities (regardless
of whether war is declared); civil war; rebellion;
revolution; insurrection; military or usurped power or

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confiscation; terrorist activities; civil disturbances;
riots; nationalization; sabotage; blockage; or embargo,
the owner of the clean coal SNG brownfield facility shall
not be subject to a penalty if and only if (i) it promptly
provides notice of its failure to the Commission; (ii) as
soon as practicable and consistent with any order or
direction from the Commission, it submits to the Commission
proposed modifications to its carbon capture and
sequestration plan; and (iii) it carries out its proposed
modifications in the manner and time directed by the
Commission. If the Commission finds that the facility has
not satisfied each of these requirements, then the facility
shall be subject to the penalty. If the owner of a clean
coal SNG brownfield facility demonstrates that the clean
coal SNG brownfield facility captured and sequestered more
than 85% of the total carbon emissions that the facility
would otherwise emit, the owner of the clean coal SNG
brownfield facility may credit such additional amounts to
reduce the amount of any future penalty to be paid. The
penalty resulting from the failure to capture and sequester
at least the minimum amount of carbon dioxide shall not be
passed on to a utility or its customers.
In addition to any penalty for the clean coal SNG
brownfield facility's failure to capture and sequester at
least its minimum sequestration requirement, the Attorney
General, on behalf of the People of the State of Illinois,

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shall bring an action for specific performance of this
subsection (h-5). Such action may be filed in any circuit
court in Illinois. By entering into a sourcing agreement
pursuant to subsection (h-1) of this Section, the clean
coal SNG brownfield facility agrees to waive any objections
to venue or to the jurisdiction of the court with regard to
the Attorney General's action for specific performance
under this subsection (h-5).
Compliance with the sequestration requirements and
penalty requirements specified in this subsection (h-5)
for the clean coal SNG brownfield facility shall be
assessed annually by the Commission, which may in its
discretion retain an expert to facilitate its assessment.
If an expert is retained by the Commission, then the clean
coal SNG brownfield facility shall pay for the expert's
reasonable fees, and such costs shall not be passed through
to a utility or its customers. A SNG facility operating
pursuant to this subsection (h-5) shall not forfeit its
designation as a clean coal SNG facility or a clean coal
SNG brownfield facility if the facility fails to fully
comply with the applicable carbon sequestration
requirements in any given year, provided the requisite
offsets are purchased or requisite penalties are paid.
Responsibility for compliance with the sequestration
requirements specified in this subsection (h-5) for the
clean coal SNG brownfield facility shall reside solely with

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the clean coal SNG brownfield facility regardless of
whether the facility has contracted with another party to
capture, transport, or sequester carbon dioxide.
(h-7) Sequestration permitting, oversight, and
investigations.
(1) No clean coal facility or clean coal SNG brownfield
facility may transport or sequester carbon dioxide unless
the Commission approves the method of carbon dioxide
transportation or sequestration. Such approval shall be
required regardless of whether the facility has contracted
with another to transport or sequester the carbon dioxide.
Nothing in this subsection (h-7) shall release the owner or
operator of a carbon dioxide sequestration site or carbon
dioxide pipeline from any other permitting requirements
under applicable State and federal laws, statutes, rules,
or regulations.
(2) The Commission shall review carbon dioxide
transportation and sequestration methods proposed by a
clean coal facility or a clean coal SNG brownfield facility
and shall approve those methods it deems reasonable and
cost-effective. For purposes of this review,
"cost-effective" means a commercially reasonable price for
similar carbon dioxide transportation or sequestration
techniques. In determining whether sequestration is
reasonable and cost-effective, the Commission may consult
with the Illinois State Geological Survey and retain third

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parties to assist in its determination, provided that such
third parties shall not own or control any direct or
indirect interest in the facility that is proposing the
carbon dioxide transportation or the carbon dioxide
sequestration method and shall have no contractual
relationship with that facility. If a third party is
retained by the Commission, then the facility proposing the
carbon dioxide transportation or sequestration method
shall pay for the expert's reasonable fees, and these costs
shall not be passed through to a utility or its customers.
No later than 6 months prior to the date upon which the
owner intends to commence construction of a clean coal
facility or the clean coal SNG brownfield facility, the
owner of the facility shall file with the Commission a
carbon dioxide transportation or sequestration plan. The
Commission shall hold a public hearing within 30 days after
receipt of the facility's carbon dioxide transportation or
sequestration plan. The Commission shall post notice of the
review on its website upon submission of a carbon dioxide
transportation or sequestration method and shall accept
written public comments. The Commission shall take the
comments into account when making its decision.
The Commission may not approve a carbon dioxide
sequestration method if the owner or operator of the
sequestration site has not received (i) an Underground
Injection Control permit from the United States

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Environmental Protection Agency, or from the Illinois
Environmental Protection Agency pursuant to the
Environmental Protection Act; (ii) an Underground
Injection Control permit from the Illinois Department of
Natural Resources pursuant to the Illinois Oil and Gas Act;
or (iii) an Underground Injection Control permit from the
United States Environmental Protection Agency or a permit
similar to items (i) or (ii) from the state in which the
sequestration site is located if the sequestration will
take place outside of Illinois. The Commission shall
approve or deny the carbon dioxide transportation or
sequestration method within 90 days after the receipt of
all required information.
(3) At least annually, the Illinois Environmental
Protection Agency shall inspect all carbon dioxide
sequestration sites in Illinois. The Illinois
Environmental Protection Agency may, as often as deemed
necessary, monitor and conduct investigations of those
sites. The owner or operator of the sequestration site must
cooperate with the Illinois Environmental Protection
Agency investigations of carbon dioxide sequestration
sites.
If the Illinois Environmental Protection Agency
determines at any time a site creates conditions that
warrant the issuance of a seal order under Section 34 of
the Environmental Protection Act, then the Illinois

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Environmental Protection Agency shall seal the site
pursuant to the Environmental Protection Act. If the
Illinois Environmental Protection Agency determines at any
time a carbon dioxide sequestration site creates
conditions that warrant the institution of a civil action
for an injunction under Section 43 of the Environmental
Protection Act, then the Illinois Environmental Protection
Agency shall request the State's Attorney or the Attorney
General institute such action. The Illinois Environmental
Protection Agency shall provide notice of any such actions
as soon as possible on its website. The SNG facility shall
incur all reasonable costs associated with any such
inspection or monitoring of the sequestration sites, and
these costs shall not be recoverable from utilities or
their customers.
(4) (Blank).
(h-9) The clean coal SNG brownfield facility shall have the
right to recover prudently incurred increased costs or reduced
revenue resulting from any new or amendatory legislation or
other action. The State of Illinois pledges that the State will
not enact any law or take any action to:
(1) break, or repeal the authority for, sourcing
agreements approved by the Commission and entered into
between public utilities and the clean coal SNG brownfield
facility;
(2) deny public utilities full cost recovery for their

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costs incurred under those sourcing agreements; or
(3) deny the clean coal SNG brownfield facility full
cost and revenue recovery as provided under those sourcing
agreements that are recoverable pursuant to subsection
(h-3) of this Section.
These pledges are for the benefit of the parties to those
sourcing agreements and the issuers and holders of bonds or
other obligations issued or incurred to finance or refinance
the clean coal SNG brownfield facility. The clean coal SNG
brownfield facility is authorized to include and refer to these
pledges in any financing agreement into which it may enter in
regard to those sourcing agreements.
The State of Illinois retains and reserves all other rights
to enact new or amendatory legislation or take any other
action, without impairment of the right of the clean coal SNG
brownfield facility to recover prudently incurred increased
costs or reduced revenue resulting from the new or amendatory
legislation or other action, including, but not limited to,
such legislation or other action that would (i) directly or
indirectly raise the costs the clean coal SNG brownfield
facility must incur; (ii) directly or indirectly place
additional restrictions, regulations, or requirements on the
clean coal SNG brownfield facility; (iii) prohibit
sequestration in general or prohibit a specific sequestration
method or project; or (iv) increase minimum sequestration
requirements for the clean coal SNG brownfield facility to the

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extent technically feasible. The clean coal SNG brownfield
facility shall have the right to recover prudently incurred
increased costs or reduced revenue resulting from the new or
amendatory legislation or other action as described in this
subsection (h-9).
(h-10) Contract costs for SNG incurred by an Illinois gas
utility are reasonable and prudent and recoverable through the
purchased gas adjustment clause and are not subject to review
or disallowance by the Commission. Contract costs are costs
incurred by the utility under the terms of a contract that
incorporates the terms stated in subsection (h) of this Section
as confirmed in writing by the Illinois Power Agency as set
forth in subsection (h) of this Section, which confirmation
shall be deemed conclusive, or as a consequence of or condition
to its performance under the contract, including (i) amounts
paid for SNG under the SNG contract and (ii) costs of
transportation and storage services of SNG purchased from
interstate pipelines under federally approved tariffs. The
Illinois gas utility shall initiate a clean coal SNG facility
rider mechanism that (A) shall be applicable to all customers
who receive transportation service from the utility, (B) shall
be designed to have an equal percentage impact on the
transportation services rates of each class of the utility's
total customers, and (C) shall accurately reflect the net
customer savings, if any, and above market costs, if any, under
the SNG contract. Any contract, the terms of which have been

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confirmed in writing by the Illinois Power Agency as set forth
in subsection (h) of this Section and the performance of the
parties under such contract cannot be grounds for challenging
prudence or cost recovery by the utility through the purchased
gas adjustment clause, and in such cases, the Commission is
directed not to consider, and has no authority to consider, any
attempted challenges.
The contracts entered into by Illinois gas utilities
pursuant to subsection (h) of this Section shall provide that
the utility retains the right to terminate the contract without
further obligation or liability to any party if the contract
has been impaired as a result of any legislative,
administrative, judicial, or other governmental action that is
taken that eliminates all or part of the prudence protection of
this subsection (h-10) or denies the recoverability of all or
part of the contract costs through the purchased gas adjustment
clause. Should any Illinois gas utility exercise its right
under this subsection (h-10) to terminate the contract, all
contract costs incurred prior to termination are and will be
deemed reasonable, prudent, and recoverable as and when
incurred and not subject to review or disallowance by the
Commission. Any order, issued by the State requiring or
authorizing the discontinuation of the merchant function,
defined as the purchase and sale of natural gas by an Illinois
gas utility for the ultimate consumer in its service territory
shall include provisions necessary to prevent the impairment of

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the value of any contract hereunder over its full term.
(h-11) All costs incurred by an Illinois gas utility in
procuring SNG from a clean coal SNG brownfield facility
pursuant to subsection (h-1) or a third-party marketer pursuant
to subsection (h-1) are reasonable and prudent and recoverable
through the purchased gas adjustment clause in conjunction with
a SNG brownfield facility rider mechanism and are not subject
to review or disallowance by the Commission; provided that if a
utility is required by law or otherwise elects to connect the
clean coal SNG brownfield facility to an interstate pipeline,
then the utility shall be entitled to recover pursuant to its
tariffs all just and reasonable costs that are prudently
incurred. Sourcing agreement costs are costs incurred by the
utility under the terms of a sourcing agreement that
incorporates the terms stated in subsection (h-1) of this
Section as approved by the Commission as set forth in
subsection (h-4) of this Section, which approval shall be
deemed conclusive, or as a consequence of or condition to its
performance under the contract, including (i) amounts paid for
SNG under the SNG contract and (ii) costs of transportation and
storage services of SNG purchased from interstate pipelines
under federally approved tariffs. Any sourcing agreement, the
terms of which have been approved by the Commission as set
forth in subsection (h-4) of this Section, and the performance
of the parties under the sourcing agreement cannot be grounds
for challenging prudence or cost recovery by the utility, and

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in these cases, the Commission is directed not to consider, and
has no authority to consider, any attempted challenges.
(h-15) Reconciliation account. The clean coal SNG facility
shall establish a reconciliation account for the benefit of the
retail customers of the utilities that have entered into
contracts with the clean coal SNG facility pursuant to
subsection (h). The reconciliation account shall be maintained
and administered by an independent trustee that is mutually
agreed upon by the owners of the clean coal SNG facility, the
utilities, and the Commission in an interest-bearing account in
accordance with the following:
(1) The clean coal SNG facility shall conduct an
analysis annually within 60 days after receiving the
necessary cost information, which shall be provided by the
gas utility within 6 months after the end of the preceding
calendar year, to determine (i) the average annual contract
SNG cost, which shall be calculated as the total amount
paid for SNG purchased from the clean coal SNG facility
over the preceding 12 months, plus the cost to the utility
of the required transportation and storage services of SNG,
divided by the total number of MMBtus of SNG actually
purchased from the clean coal SNG facility in the preceding
12 months under the utility contract; (ii) the average
annual natural gas purchase cost, which shall be calculated
as the total annual supply costs paid for baseload natural
gas (excluding any SNG) purchased by such utility over the

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preceding 12 months plus the costs of transportation and
storage services of such natural gas (excluding such costs
for SNG), divided by the total number of MMbtus of baseload
natural gas (excluding SNG) actually purchased by the
utility during the year; (iii) the cost differential, which
shall be the difference between the average annual contract
SNG cost and the average annual natural gas purchase cost;
and (iv) the revenue share target which shall be the cost
differential multiplied by the total amount of SNG
purchased over the preceding 12 months under such utility
contract.
(A) To the extent the annual average contract SNG
cost is less than the annual average natural gas
purchase cost, the utility shall credit an amount equal
to the revenue share target to the reconciliation
account. Such credit payment shall be made monthly
starting within 30 days after the completed analysis in
this subsection (h-15) and based on collections from
all customers via a line item charge in all customer
bills designed to have an equal percentage impact on
the transportation services of each class of
customers. Credit payments made pursuant to this
subparagraph (A) shall be deemed prudent and
reasonable and not subject to Commission prudence
review.
(B) To the extent the annual average contract SNG

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cost is greater than the annual average natural gas
purchase cost, the reconciliation account shall be
used to provide a credit equal to the revenue share
target to the utilities to be used to reduce the
utility's natural gas costs through the purchased gas
adjustment clause. Such payment shall be made within 30
days after the completed analysis pursuant to this
subsection (h-15), but only to the extent that the
reconciliation account has a positive balance.
(2) At the conclusion of the term of the SNG contracts
pursuant to subsection (h) and the completion of the final
annual analysis pursuant to this subsection (h-15), to the
extent the facility owes any amount to retail customers,
amounts in the account shall be credited to retail
customers to the extent the owed amount is repaid; 50% of
any additional amount in the reconciliation account shall
be distributed to the utilities to be used to reduce the
utilities' natural gas costs through the purchase gas
adjustment clause with the remaining amount distributed to
the clean coal SNG facility. Such payment shall be made
within 30 days after the last completed analysis pursuant
to this subsection (h-15). If the facility has repaid all
owed amounts, if any, to retail customers and has
distributed 50% of any additional amount in the account to
the utilities, then the owners of the clean coal SNG
facility shall have no further obligation to the utility or

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the retail customers.
If, at the conclusion of the term of the contracts
pursuant to subsection (h) and the completion of the final
annual analysis pursuant to this subsection (h-15), the
facility owes any amount to retail customers and the
account has been depleted, then the clean coal SNG facility
shall be liable for any remaining amount owed to the retail
customers. The clean coal SNG facility shall market the
daily production of SNG and distribute on a monthly basis
5% of the amounts collected with respect to such future
sales to the utilities in proportion to each utility's SNG
contract to be used to reduce the utility's natural gas
costs through the purchase gas adjustment clause; such
payments to the utility shall continue until either 15
years after the conclusion of the contract or such time as
the sum of such payments equals the remaining amount owed
to the retail customers at the end of the contract,
whichever is earlier. If the debt to the retail customers
is not repaid within 15 years after the conclusion of the
contract, then the owner of the clean coal SNG facility
must sell the facility, and all proceeds from that sale
must be used to repay any amount owed to the retail
customers under this subsection (h-15).
The retail customers shall have first priority in
recovering that debt above any creditors, except the
secured lenders to the extent that the secured lenders have

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any secured debt outstanding, including any parent
companies or affiliates of the clean coal SNG facility.
(3) 50% of all additional net revenue, defined as
miscellaneous net revenue after cost allowance and above
the budgeted estimate established for revenue pursuant to
subsection (h), including sale of substitute natural gas
derived from the clean coal SNG facility above the
nameplate capacity of the facility and other by-products
produced by the facility, shall be credited to the
reconciliation account on an annual basis with such payment
made within 30 days after the end of each calendar year
during the term of the contract.
(4) The clean coal SNG facility shall each year,
starting in the facility's first year of commercial
operation, file with the Commission, in such form as the
Commission shall require, a report as to the reconciliation
account. The annual report must contain the following
information:
(A) the revenue share target amount;
(B) the amount credited or debited to the
reconciliation account during the year;
(C) the amount credited to the utilities to be used
to reduce the utilities natural gas costs though the
purchase gas adjustment clause;
(D) the total amount of reconciliation account at
the beginning and end of the year;

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(E) the total amount of consumer savings to date;
and
(F) any additional information the Commission may
require.
When any report is erroneous or defective or appears to the
Commission to be erroneous or defective, the Commission may
notify the clean coal SNG facility to amend the report within
30 days; before or after the termination of the 30-day period,
the Commission may examine the trustee of the reconciliation
account or the officers, agents, employees, books, records, or
accounts of the clean coal SNG facility and correct such items
in the report as upon such examination the Commission may find
defective or erroneous. All reports shall be under oath.
All reports made to the Commission by the clean coal SNG
facility and the contents of the reports shall be open to
public inspection and shall be deemed a public record under the
Freedom of Information Act. Such reports shall be preserved in
the office of the Commission. The Commission shall publish an
annual summary of the reports prior to February 1 of the
following year. The annual summary shall be made available to
the public on the Commission's website and shall be submitted
to the General Assembly.
Any facility that fails to file the report required under
this paragraph (4) to the Commission within the time specified
or to make specific answer to any question propounded by the
Commission within 30 days after the time it is lawfully

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required to do so, or within such further time not to exceed 90
days as may be allowed by the Commission in its discretion,
shall pay a penalty of $500 to the Commission for each day it
is in default.
Any person who willfully makes any false report to the
Commission or to any member, officer, or employee thereof, any
person who willfully in a report withholds or fails to provide
material information to which the Commission is entitled under
this paragraph (4) and which information is either required to
be filed by statute, rule, regulation, order, or decision of
the Commission or has been requested by the Commission, and any
person who willfully aids or abets such person shall be guilty
of a Class A misdemeanor.
(h-20) The General Assembly authorizes the Illinois
Finance Authority to issue bonds to the maximum extent
permitted to finance coal gasification facilities described in
this Section, which constitute both "industrial projects"
under Article 801 of the Illinois Finance Authority Act and
"clean coal and energy projects" under Sections 825-65 through
825-75 of the Illinois Finance Authority Act.
Administrative costs incurred by the Illinois Finance
Authority in performance of this subsection (h-20) shall be
subject to reimbursement by the clean coal SNG facility on
terms as the Illinois Finance Authority and the clean coal SNG
facility may agree. The utility and its customers shall have no
obligation to reimburse the clean coal SNG facility or the

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Illinois Finance Authority for any such costs.
(h-25) The State of Illinois pledges that the State may not
enact any law or take any action to (1) break or repeal the
authority for SNG purchase contracts entered into between
public gas utilities and the clean coal SNG facility pursuant
to subsection (h) of this Section or (2) deny public gas
utilities their full cost recovery for contract costs, as
defined in subsection (h-10), that are incurred under such SNG
purchase contracts. These pledges are for the benefit of the
parties to such SNG purchase contracts and the issuers and
holders of bonds or other obligations issued or incurred to
finance or refinance the clean coal SNG facility. The
beneficiaries are authorized to include and refer to these
pledges in any finance agreement into which they may enter in
regard to such contracts.
(h-30) The State of Illinois retains and reserves all other
rights to enact new or amendatory legislation or take any other
action, including, but not limited to, such legislation or
other action that would (1) directly or indirectly raise the
costs that the clean coal SNG facility must incur; (2) directly
or indirectly place additional restrictions, regulations, or
requirements on the clean coal SNG facility; (3) prohibit
sequestration in general or prohibit a specific sequestration
method or project; or (4) increase minimum sequestration
requirements.
(i) If a gas utility or an affiliate of a gas utility has

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an ownership interest in any entity that produces or sells
synthetic natural gas, Article VII of this Act shall apply.
(Source: P.A. 97-96, eff. 7-13-11; 97-239, eff. 8-2-11; 97-630,
eff. 12-8-11; 97-906, eff. 8-7-12; 97-1081, eff. 8-24-12;
98-463, eff. 8-16-13.)
Section 145. The Illinois Horse Racing Act of 1975 is
amended by changing Sections 12.1 and 12.2 as follows:
(230 ILCS 5/12.1) (from Ch. 8, par. 37-12.1)
Sec. 12.1. (a) The General Assembly finds that the Illinois
Racing Industry does not include a fair proportion of minority
or female workers.
Therefore, the General Assembly urges that the job training
institutes, trade associations and employers involved in the
Illinois Horse Racing Industry take affirmative action to
encourage equal employment opportunity to all workers
regardless of race, color, creed or sex.
Before an organization license, inter-track wagering
license or inter-track wagering location license can be
granted, the applicant for any such license shall execute and
file with the Board a good faith affirmative action plan to
recruit, train and upgrade minorities and females in all
classifications with the applicant for license. One year after
issuance of any such license, and each year thereafter, the
licensee shall file a report with the Board evidencing and

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certifying compliance with the originally filed affirmative
action plan.
(b) At least 10% of the total amount of all State contracts
for the infrastructure improvement of any race track grounds in
this State shall be let to minority-owned minority owned
businesses or women-owned female owned businesses. "State
contract", "minority-owned minority owned business" and
"women-owned female owned business" shall have the meanings
ascribed to them under the Business Enterprise for Minorities,
Women Females, and Persons with Disabilities Act.
(Source: P.A. 92-16, eff. 6-28-01.)
(230 ILCS 5/12.2)
Sec. 12.2. Business enterprise program.
(a) For the purposes of this Section, the terms "minority",
"minority-owned minority owned business", "woman female",
"women-owned female owned business", "person with a
disability", and "business owned by a person with a disability"
have the meanings ascribed to them in the Business Enterprise
for Minorities, Women Females, and Persons with Disabilities
Act.
(b) The Board shall, by rule, establish goals for the award
of contracts by each organization licensee or inter-track
wagering licensee to businesses owned by minorities, women
females, and persons with disabilities, expressed as
percentages of an organization licensee's or inter-track

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wagering licensee's total dollar amount of contracts awarded
during each calendar year. Each organization licensee or
inter-track wagering licensee must make every effort to meet
the goals established by the Board pursuant to this Section.
When setting the goals for the award of contracts, the Board
shall not include contracts where: (1) licensees are purchasing
goods or services from vendors or suppliers or in markets where
there are no or a limited number of minority-owned minority
owned businesses, women-owned women owned businesses, or
businesses owned by persons with disabilities that would be
sufficient to satisfy the goal; (2) there are no or a limited
number of suppliers licensed by the Board; (3) the licensee or
its parent company owns a company that provides the goods or
services; or (4) the goods or services are provided to the
licensee by a publicly traded company.
(c) Each organization licensee or inter-track wagering
licensee shall file with the Board an annual report of its
utilization of minority-owned minority owned businesses,
women-owned female owned businesses, and businesses owned by
persons with disabilities during the preceding calendar year.
The reports shall include a self-evaluation of the efforts of
the organization licensee or inter-track wagering licensee to
meet its goals under this Section.
(d) The organization licensee or inter-track wagering
licensee shall have the right to request a waiver from the
requirements of this Section. The Board shall grant the waiver

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where the organization licensee or inter-track wagering
licensee demonstrates that there has been made a good faith
effort to comply with the goals for participation by
minority-owned minority owned businesses, women-owned female
owned businesses, and businesses owned by persons with
disabilities.
(e) If the Board determines that its goals and policies are
not being met by any organization licensee or inter-track
wagering licensee, then the Board may:
(1) adopt remedies for such violations; and
(2) recommend that the organization licensee or
inter-track wagering licensee provide additional
opportunities for participation by minority-owned minority
owned businesses, women-owned female owned businesses, and
businesses owned by persons with disabilities; such
recommendations may include, but shall not be limited to:
(A) assurances of stronger and better focused
solicitation efforts to obtain more minority-owned
minority owned businesses, women-owned female owned
businesses, and businesses owned by persons with
disabilities as potential sources of supply;
(B) division of job or project requirements, when
economically feasible, into tasks or quantities to
permit participation of minority-owned minority owned
businesses, women-owned female owned businesses, and
businesses owned by persons with disabilities;

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(C) elimination of extended experience or
capitalization requirements, when programmatically
feasible, to permit participation of minority-owned
minority owned businesses, women-owned female owned
businesses, and businesses owned by persons with
disabilities;
(D) identification of specific proposed contracts
as particularly attractive or appropriate for
participation by minority-owned minority owned
businesses, women-owned female owned businesses, and
businesses owned by persons with disabilities, such
identification to result from and be coupled with the
efforts of items (A) through (C); and
(E) implementation of regulations established for
the use of the sheltered market process.
(f) The Board shall file, no later than March 1 of each
year, an annual report that shall detail the level of
achievement toward the goals specified in this Section over the
3 most recent fiscal years. The annual report shall include,
but need not be limited to:
(1) a summary detailing expenditures subject to the
goals, the actual goals specified, and the goals attained
by each organization licensee or inter-track wagering
licensee;
(2) a summary of the number of contracts awarded and
the average contract amount by each organization licensee

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or inter-track wagering licensee;
(3) an analysis of the level of overall goal
achievement concerning purchases from minority-owned
minority owned businesses, women-owned female owned
businesses, and businesses owned by persons with
disabilities;
(4) an analysis of the number of minority-owned
minority owned businesses, women-owned female owned
businesses, and businesses owned by persons with
disabilities that are certified under the program as well
as the number of those businesses that received State
procurement contracts; and
(5) (blank).
(Source: P.A. 98-490, eff. 8-16-13; 99-78, eff. 7-20-15;
99-891, eff. 1-1-17.)
Section 150. The Riverboat Gambling Act is amended by
changing Sections 4, 7, 7.1, 7.4, 7.6, and 11.2 as follows:
(230 ILCS 10/4) (from Ch. 120, par. 2404)
Sec. 4. Definitions. As used in this Act:
(a) "Board" means the Illinois Gaming Board.
(b) "Occupational license" means a license issued by the
Board to a person or entity to perform an occupation which the
Board has identified as requiring a license to engage in
riverboat gambling in Illinois.

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(c) "Gambling game" includes, but is not limited to,
baccarat, twenty-one, poker, craps, slot machine, video game of
chance, roulette wheel, klondike table, punchboard, faro
layout, keno layout, numbers ticket, push card, jar ticket, or
pull tab which is authorized by the Board as a wagering device
under this Act.
(d) "Riverboat" means a self-propelled excursion boat, a
permanently moored barge, or permanently moored barges that are
permanently fixed together to operate as one vessel, on which
lawful gambling is authorized and licensed as provided in this
Act.
(e) "Managers license" means a license issued by the Board
to a person or entity to manage gambling operations conducted
by the State pursuant to Section 7.3.
(f) "Dock" means the location where a riverboat moors for
the purpose of embarking passengers for and disembarking
passengers from the riverboat.
(g) "Gross receipts" means the total amount of money
exchanged for the purchase of chips, tokens or electronic cards
by riverboat patrons.
(h) "Adjusted gross receipts" means the gross receipts less
winnings paid to wagerers.
(i) "Cheat" means to alter the selection of criteria which
determine the result of a gambling game or the amount or
frequency of payment in a gambling game.
(j) (Blank).

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(k) "Gambling operation" means the conduct of authorized
gambling games upon a riverboat.
(l) "License bid" means the lump sum amount of money that
an applicant bids and agrees to pay the State in return for an
owners license that is re-issued on or after July 1, 2003.
(m) The terms "minority person", "woman female", and
"person with a disability" shall have the same meaning as
defined in Section 2 of the Business Enterprise for Minorities,
Women Females, and Persons with Disabilities Act.
(Source: P.A. 95-331, eff. 8-21-07; 96-1392, eff. 1-1-11.)
(230 ILCS 10/7) (from Ch. 120, par. 2407)
Sec. 7. Owners Licenses.
(a) The Board shall issue owners licenses to persons, firms
or corporations which apply for such licenses upon payment to
the Board of the non-refundable license fee set by the Board,
upon payment of a $25,000 license fee for the first year of
operation and a $5,000 license fee for each succeeding year and
upon a determination by the Board that the applicant is
eligible for an owners license pursuant to this Act and the
rules of the Board. From the effective date of this amendatory
Act of the 95th General Assembly until (i) 3 years after the
effective date of this amendatory Act of the 95th General
Assembly, (ii) the date any organization licensee begins to
operate a slot machine or video game of chance under the
Illinois Horse Racing Act of 1975 or this Act, (iii) the date

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that payments begin under subsection (c-5) of Section 13 of the
Act, or (iv) the wagering tax imposed under Section 13 of this
Act is increased by law to reflect a tax rate that is at least
as stringent or more stringent than the tax rate contained in
subsection (a-3) of Section 13, whichever occurs first, as a
condition of licensure and as an alternative source of payment
for those funds payable under subsection (c-5) of Section 13 of
the Riverboat Gambling Act, any owners licensee that holds or
receives its owners license on or after the effective date of
this amendatory Act of the 94th General Assembly, other than an
owners licensee operating a riverboat with adjusted gross
receipts in calendar year 2004 of less than $200,000,000, must
pay into the Horse Racing Equity Trust Fund, in addition to any
other payments required under this Act, an amount equal to 3%
of the adjusted gross receipts received by the owners licensee.
The payments required under this Section shall be made by the
owners licensee to the State Treasurer no later than 3:00
o'clock p.m. of the day after the day when the adjusted gross
receipts were received by the owners licensee. A person, firm
or corporation is ineligible to receive an owners license if:
(1) the person has been convicted of a felony under the
laws of this State, any other state, or the United States;
(2) the person has been convicted of any violation of
Article 28 of the Criminal Code of 1961 or the Criminal
Code of 2012, or substantially similar laws of any other
jurisdiction;

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(3) the person has submitted an application for a
license under this Act which contains false information;
(4) the person is a member of the Board;
(5) a person defined in (1), (2), (3) or (4) is an
officer, director or managerial employee of the firm or
corporation;
(6) the firm or corporation employs a person defined in
(1), (2), (3) or (4) who participates in the management or
operation of gambling operations authorized under this
Act;
(7) (blank); or
(8) a license of the person, firm or corporation issued
under this Act, or a license to own or operate gambling
facilities in any other jurisdiction, has been revoked.
The Board is expressly prohibited from making changes to
the requirement that licensees make payment into the Horse
Racing Equity Trust Fund without the express authority of the
Illinois General Assembly and making any other rule to
implement or interpret this amendatory Act of the 95th General
Assembly. For the purposes of this paragraph, "rules" is given
the meaning given to that term in Section 1-70 of the Illinois
Administrative Procedure Act.
(b) In determining whether to grant an owners license to an
applicant, the Board shall consider:
(1) the character, reputation, experience and
financial integrity of the applicants and of any other or

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separate person that either:
(A) controls, directly or indirectly, such
applicant, or
(B) is controlled, directly or indirectly, by such
applicant or by a person which controls, directly or
indirectly, such applicant;
(2) the facilities or proposed facilities for the
conduct of riverboat gambling;
(3) the highest prospective total revenue to be derived
by the State from the conduct of riverboat gambling;
(4) the extent to which the ownership of the applicant
reflects the diversity of the State by including minority
persons, women females, and persons with a disability and
the good faith affirmative action plan of each applicant to
recruit, train and upgrade minority persons, women
females, and persons with a disability in all employment
classifications;
(5) the financial ability of the applicant to purchase
and maintain adequate liability and casualty insurance;
(6) whether the applicant has adequate capitalization
to provide and maintain, for the duration of a license, a
riverboat;
(7) the extent to which the applicant exceeds or meets
other standards for the issuance of an owners license which
the Board may adopt by rule; and
(8) The amount of the applicant's license bid.

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(c) Each owners license shall specify the place where
riverboats shall operate and dock.
(d) Each applicant shall submit with his application, on
forms provided by the Board, 2 sets of his fingerprints.
(e) The Board may issue up to 10 licenses authorizing the
holders of such licenses to own riverboats. In the application
for an owners license, the applicant shall state the dock at
which the riverboat is based and the water on which the
riverboat will be located. The Board shall issue 5 licenses to
become effective not earlier than January 1, 1991. Three of
such licenses shall authorize riverboat gambling on the
Mississippi River, or, with approval by the municipality in
which the riverboat was docked on August 7, 2003 and with Board
approval, be authorized to relocate to a new location, in a
municipality that (1) borders on the Mississippi River or is
within 5 miles of the city limits of a municipality that
borders on the Mississippi River and (2), on August 7, 2003,
had a riverboat conducting riverboat gambling operations
pursuant to a license issued under this Act; one of which shall
authorize riverboat gambling from a home dock in the city of
East St. Louis. One other license shall authorize riverboat
gambling on the Illinois River south of Marshall County. The
Board shall issue one additional license to become effective
not earlier than March 1, 1992, which shall authorize riverboat
gambling on the Des Plaines River in Will County. The Board may
issue 4 additional licenses to become effective not earlier

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than March 1, 1992. In determining the water upon which
riverboats will operate, the Board shall consider the economic
benefit which riverboat gambling confers on the State, and
shall seek to assure that all regions of the State share in the
economic benefits of riverboat gambling.
In granting all licenses, the Board may give favorable
consideration to economically depressed areas of the State, to
applicants presenting plans which provide for significant
economic development over a large geographic area, and to
applicants who currently operate non-gambling riverboats in
Illinois. The Board shall review all applications for owners
licenses, and shall inform each applicant of the Board's
decision. The Board may grant an owners license to an applicant
that has not submitted the highest license bid, but if it does
not select the highest bidder, the Board shall issue a written
decision explaining why another applicant was selected and
identifying the factors set forth in this Section that favored
the winning bidder.
In addition to any other revocation powers granted to the
Board under this Act, the Board may revoke the owners license
of a licensee which fails to begin conducting gambling within
15 months of receipt of the Board's approval of the application
if the Board determines that license revocation is in the best
interests of the State.
(f) The first 10 owners licenses issued under this Act
shall permit the holder to own up to 2 riverboats and equipment

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thereon for a period of 3 years after the effective date of the
license. Holders of the first 10 owners licenses must pay the
annual license fee for each of the 3 years during which they
are authorized to own riverboats.
(g) Upon the termination, expiration, or revocation of each
of the first 10 licenses, which shall be issued for a 3 year
period, all licenses are renewable annually upon payment of the
fee and a determination by the Board that the licensee
continues to meet all of the requirements of this Act and the
Board's rules. However, for licenses renewed on or after May 1,
1998, renewal shall be for a period of 4 years, unless the
Board sets a shorter period.
(h) An owners license shall entitle the licensee to own up
to 2 riverboats. A licensee shall limit the number of gambling
participants to 1,200 for any such owners license. A licensee
may operate both of its riverboats concurrently, provided that
the total number of gambling participants on both riverboats
does not exceed 1,200. Riverboats licensed to operate on the
Mississippi River and the Illinois River south of Marshall
County shall have an authorized capacity of at least 500
persons. Any other riverboat licensed under this Act shall have
an authorized capacity of at least 400 persons.
(i) A licensed owner is authorized to apply to the Board
for and, if approved therefor, to receive all licenses from the
Board necessary for the operation of a riverboat, including a
liquor license, a license to prepare and serve food for human

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consumption, and other necessary licenses. All use, occupation
and excise taxes which apply to the sale of food and beverages
in this State and all taxes imposed on the sale or use of
tangible personal property apply to such sales aboard the
riverboat.
(j) The Board may issue or re-issue a license authorizing a
riverboat to dock in a municipality or approve a relocation
under Section 11.2 only if, prior to the issuance or
re-issuance of the license or approval, the governing body of
the municipality in which the riverboat will dock has by a
majority vote approved the docking of riverboats in the
municipality. The Board may issue or re-issue a license
authorizing a riverboat to dock in areas of a county outside
any municipality or approve a relocation under Section 11.2
only if, prior to the issuance or re-issuance of the license or
approval, the governing body of the county has by a majority
vote approved of the docking of riverboats within such areas.
(Source: P.A. 96-1392, eff. 1-1-11; 97-1150, eff. 1-25-13.)
(230 ILCS 10/7.1)
Sec. 7.1. Re-issuance of revoked or non-renewed owners
licenses.
(a) If an owners license terminates or expires without
renewal or the Board revokes or determines not to renew an
owners license (including, without limitation, an owners
license for a licensee that was not conducting riverboat

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gambling operations on January 1, 1998) and that revocation or
determination is final, the Board may re-issue such license to
a qualified applicant pursuant to an open and competitive
bidding process, as set forth in Section 7.5, and subject to
the maximum number of authorized licenses set forth in Section
7(e).
(b) To be a qualified applicant, a person, firm, or
corporation cannot be ineligible to receive an owners license
under Section 7(a) and must submit an application for an owners
license that complies with Section 6. Each such applicant must
also submit evidence to the Board that minority persons and
women females hold ownership interests in the applicant of at
least 16% and 4% respectively.
(c) Notwithstanding anything to the contrary in Section
7(e), an applicant may apply to the Board for approval of
relocation of a re-issued license to a new home dock location
authorized under Section 3(c) upon receipt of the approval from
the municipality or county, as the case may be, pursuant to
Section 7(j).
(d) In determining whether to grant a re-issued owners
license to an applicant, the Board shall consider all of the
factors set forth in Sections 7(b) and (e) as well as the
amount of the applicant's license bid. The Board may grant the
re-issued owners license to an applicant that has not submitted
the highest license bid, but if it does not select the highest
bidder, the Board shall issue a written decision explaining why

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another applicant was selected and identifying the factors set
forth in Sections 7(b) and (e) that favored the winning bidder.
(e) Re-issued owners licenses shall be subject to annual
license fees as provided for in Section 7(a) and shall be
governed by the provisions of Sections 7(f), (g), (h), and (i).
(Source: P.A. 93-28, eff. 6-20-03.)
(230 ILCS 10/7.4)
Sec. 7.4. Managers licenses.
(a) A qualified person may apply to the Board for a
managers license to operate and manage any gambling operation
conducted by the State. The application shall be made on forms
provided by the Board and shall contain such information as the
Board prescribes, including but not limited to information
required in Sections 6(a), (b), and (c) and information
relating to the applicant's proposed price to manage State
gambling operations and to provide the riverboat, gambling
equipment, and supplies necessary to conduct State gambling
operations.
(b) Each applicant must submit evidence to the Board that
minority persons and women females hold ownership interests in
the applicant of at least 16% and 4%, respectively.
(c) A person, firm, or corporation is ineligible to receive
a managers license if:
(1) the person has been convicted of a felony under the
laws of this State, any other state, or the United States;

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(2) the person has been convicted of any violation of
Article 28 of the Criminal Code of 1961 or the Criminal
Code of 2012, or substantially similar laws of any other
jurisdiction;
(3) the person has submitted an application for a
license under this Act which contains false information;
(4) the person is a member of the Board;
(5) a person defined in (1), (2), (3), or (4) is an
officer, director, or managerial employee of the firm or
corporation;
(6) the firm or corporation employs a person defined in
(1), (2), (3), or (4) who participates in the management or
operation of gambling operations authorized under this
Act; or
(7) a license of the person, firm, or corporation
issued under this Act, or a license to own or operate
gambling facilities in any other jurisdiction, has been
revoked.
(d) Each applicant shall submit with his or her
application, on forms prescribed by the Board, 2 sets of his or
her fingerprints.
(e) The Board shall charge each applicant a fee, set by the
Board, to defray the costs associated with the background
investigation conducted by the Board.
(f) A person who knowingly makes a false statement on an
application is guilty of a Class A misdemeanor.

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(g) The managers license shall be for a term not to exceed
10 years, shall be renewable at the Board's option, and shall
contain such terms and provisions as the Board deems necessary
to protect or enhance the credibility and integrity of State
gambling operations, achieve the highest prospective total
revenue to the State, and otherwise serve the interests of the
citizens of Illinois.
(h) Issuance of a managers license shall be subject to an
open and competitive bidding process. The Board may select an
applicant other than the lowest bidder by price. If it does not
select the lowest bidder, the Board shall issue a notice of who
the lowest bidder was and a written decision as to why another
bidder was selected.
(Source: P.A. 97-1150, eff. 1-25-13.)
(230 ILCS 10/7.6)
Sec. 7.6. Business enterprise program.
(a) For the purposes of this Section, the terms "minority",
"minority-owned minority owned business", "woman female", "
women-owned female owned business", "person with a
disability", and "business owned by a person with a disability"
have the meanings ascribed to them in the Business Enterprise
for Minorities, Women Females, and Persons with Disabilities
Act.
(b) The Board shall, by rule, establish goals for the award
of contracts by each owners licensee to businesses owned by

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minorities, women females, and persons with disabilities,
expressed as percentages of an owners licensee's total dollar
amount of contracts awarded during each calendar year. Each
owners licensee must make every effort to meet the goals
established by the Board pursuant to this Section. When setting
the goals for the award of contracts, the Board shall not
include contracts where: (1) any purchasing mandates would be
dependent upon the availability of minority-owned minority
owned businesses, women-owned female owned businesses, and
businesses owned by persons with disabilities ready, willing,
and able with capacity to provide quality goods and services to
a gaming operation at reasonable prices; (2) there are no or a
limited number of licensed suppliers as defined by this Act for
the goods or services provided to the licensee; (3) the
licensee or its parent company owns a company that provides the
goods or services; or (4) the goods or services are provided to
the licensee by a publicly traded company.
(c) Each owners licensee shall file with the Board an
annual report of its utilization of minority-owned minority
owned businesses, women-owned female owned businesses, and
businesses owned by persons with disabilities during the
preceding calendar year. The reports shall include a
self-evaluation of the efforts of the owners licensee to meet
its goals under this Section.
(d) The owners licensee shall have the right to request a
waiver from the requirements of this Section. The Board shall

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grant the waiver where the owners licensee demonstrates that
there has been made a good faith effort to comply with the
goals for participation by minority-owned minority owned
businesses, women-owned female owned businesses, and
businesses owned by persons with disabilities.
(e) If the Board determines that its goals and policies are
not being met by any owners licensee, then the Board may:
(1) adopt remedies for such violations; and
(2) recommend that the owners licensee provide
additional opportunities for participation by
minority-owned minority owned businesses, women-owned
female owned businesses, and businesses owned by persons
with disabilities; such recommendations may include, but
shall not be limited to:
(A) assurances of stronger and better focused
solicitation efforts to obtain more minority-owned
minority owned businesses, women-owned female owned
businesses, and businesses owned by persons with
disabilities as potential sources of supply;
(B) division of job or project requirements, when
economically feasible, into tasks or quantities to
permit participation of minority-owned minority owned
businesses, women-owned female owned businesses, and
businesses owned by persons with disabilities;
(C) elimination of extended experience or
capitalization requirements, when programmatically

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feasible, to permit participation of minority-owned
minority owned businesses, women-owned female owned
businesses, and businesses owned by persons with
disabilities;
(D) identification of specific proposed contracts
as particularly attractive or appropriate for
participation by minority-owned minority owned
businesses, women-owned female owned businesses, and
businesses owned by persons with disabilities, such
identification to result from and be coupled with the
efforts of items (A) through (C); and
(E) implementation of regulations established for
the use of the sheltered market process.
(f) The Board shall file, no later than March 1 of each
year, an annual report that shall detail the level of
achievement toward the goals specified in this Section over the
3 most recent fiscal years. The annual report shall include,
but need not be limited to:
(1) a summary detailing expenditures subject to the
goals, the actual goals specified, and the goals attained
by each owners licensee; and
(2) an analysis of the level of overall goal
achievement concerning purchases from minority-owned
minority owned businesses, women-owned female owned
businesses, and businesses owned by persons with
disabilities.

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(Source: P.A. 98-490, eff. 8-16-13; 99-78, eff. 7-20-15.)
(230 ILCS 10/11.2)
Sec. 11.2. Relocation of riverboat home dock.
(a) A licensee that was not conducting riverboat gambling
on January 1, 1998 may apply to the Board for renewal and
approval of relocation to a new home dock location authorized
under Section 3(c) and the Board shall grant the application
and approval upon receipt by the licensee of approval from the
new municipality or county, as the case may be, in which the
licensee wishes to relocate pursuant to Section 7(j).
(b) Any licensee that relocates its home dock pursuant to
this Section shall attain a level of at least 20% minority
person and woman female ownership, at least 16% and 4%
respectively, within a time period prescribed by the Board, but
not to exceed 12 months from the date the licensee begins
conducting gambling at the new home dock location. The 12-month
period shall be extended by the amount of time necessary to
conduct a background investigation pursuant to Section 6. For
the purposes of this Section, the terms "woman female" and
"minority person" have the meanings provided in Section 2 of
the Business Enterprise for Minorities, Women Females, and
Persons with Disabilities Act.
(Source: P.A. 91-40, eff. 6-25-99.)
Section 155. The Environmental Protection Act is amended by

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changing Section 14.7 as follows:
(415 ILCS 5/14.7)
(This Section may contain text from a Public Act with a
delayed effective date)
Sec. 14.7. Preservation of community water supplies.
(a) The Agency shall adopt rules governing certain
corrosion prevention projects carried out on community water
supplies. Those rules shall not apply to buried pipelines
including, but not limited to, pipes, mains, and joints. The
rules shall exclude routine maintenance activities of
community water supplies including, but not limited to, the use
of protective coatings applied by the owner's utility personnel
during the course of performing routine maintenance
activities. The activities may include, but not be limited to,
the painting of fire hydrants; routine over-coat painting of
interior and exterior building surfaces such as floors, doors,
windows, and ceilings; and routine touch-up and over-coat
application of protective coatings typically found on water
utility pumps, pipes, tanks, and other water treatment plant
appurtenances and utility owned structures. Those rules shall
include:
(1) standards for ensuring that community water
supplies carry out corrosion prevention and mitigation
methods according to corrosion prevention industry
standards adopted by the Agency;

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(2) requirements that community water supplies use:
(A) protective coatings personnel to carry out
corrosion prevention and mitigation methods on exposed
water treatment tanks, exposed non-concrete water
treatment structures, exposed water treatment pipe
galleys; exposed pumps; and generators; the Agency
shall not limit to protective coatings personnel any
other work relating to prevention and mitigation
methods on any other water treatment appurtenances
where protective coatings are utilized for corrosion
control and prevention to prolong the life of the water
utility asset; and
(B) inspectors to ensure that best practices and
standards are adhered to on each corrosion prevention
project; and
(3) standards to prevent environmental degradation
that might occur as a result of carrying out corrosion
prevention and mitigation methods including, but not
limited to, standards to prevent the improper handling and
containment of hazardous materials, especially lead paint,
removed from the exterior of a community water supply.
In adopting rules under this subsection (a), the Agency
shall obtain input from corrosion industry experts
specializing in the training of personnel to carry out
corrosion prevention and mitigation methods.
(b) As used in this Section:

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"Community water supply" has the meaning ascribed to that
term in Section 3.145 of this Act.
"Corrosion" means a naturally occurring phenomenon
commonly defined as the deterioration of a metal that results
from a chemical or electrochemical reaction with its
environment.
"Corrosion prevention and mitigation methods" means the
preparation, application, installation, removal, or general
maintenance as necessary of a protective coating system,
including any or more of the following:
(A) surface preparation and coating application on
the exterior or interior of a community water supply;
or
(B) shop painting of structural steel fabricated
for installation as part of a community water supply.
"Corrosion prevention project" means carrying out
corrosion prevention and mitigation methods. "Corrosion
prevention project" does not include clean-up related to
surface preparation.
"Protective coatings personnel" means personnel employed
or retained by a contractor providing services covered by this
Section to carry out corrosion prevention or mitigation methods
or inspections.
(c) This Section shall apply to only those projects
receiving 100% funding from the State.
(d) Each contract procured pursuant to the Illinois

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Procurement Code for the provision of services covered by this
Section (1) shall comply with applicable provisions of the
Illinois Procurement Code and (2) shall include provisions for
reporting participation by minority persons, as defined by
Section 2 of the Business Enterprise for Minorities, Women
Females, and Persons with Disabilities Act; women females, as
defined by Section 2 of the Business Enterprise for Minorities,
Women Females, and Persons with Disabilities Act; and veterans,
as defined by Section 45-57 of the Illinois Procurement Code,
in apprenticeship and training programs in which the contractor
or his or her subcontractors participate. The requirements of
this Section do not apply to an individual licensed under the
Professional Engineering Practice Act of 1989 or the Structural
Engineering Act of 1989.
(Source: P.A. 99-923, eff. 7-1-17.)
Section 160. The Public Private Agreements for the Illiana
Expressway Act is amended by changing Section 20 as follows:
(605 ILCS 130/20)
Sec. 20. Procurement; request for proposals process.
(a) Notwithstanding any provision of law to the contrary,
the Department on behalf of the State shall select a contractor
through a competitive request for proposals process governed by
the Illinois Procurement Code and rules adopted under that Code
and this Act.

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(b) The competitive request for proposals process shall, at
a minimum, solicit statements of qualification and proposals
from offerors.
(c) The competitive request for proposals process shall, at
a minimum, take into account the following criteria:
(1) The offeror's plans for the Illiana Expressway
project;
(2) The offeror's current and past business practices;
(3) The offeror's poor or inadequate past performance
in developing, financing, constructing, managing, or
operating highways or other public assets;
(4) The offeror's ability to meet and past performance
in meeting or exhausting good faith efforts to meet the
utilization goals for business enterprises established in
the Business Enterprise for Minorities, Women Females, and
Persons with Disabilities Act;
(5) The offeror's ability to comply with and past
performance in complying with Section 2-105 of the Illinois
Human Rights Act; and
(6) The offeror's plans to comply with the Business
Enterprise for Minorities, Women Females, and Persons with
Disabilities Act and Section 2-105 of the Illinois Human
Rights Act.
(d) The Department shall retain the services of an advisor
or advisors with significant experience in the development,
financing, construction, management, or operation of public

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assets to assist in the preparation of the request for
proposals.
(e) The Department shall not include terms in the request
for proposals that provide an advantage, whether directly or
indirectly, to any contractor presently providing goods,
services, or equipment to the Department.
(f) The Department shall select at least 2 offerors as
finalists. The Department shall submit the offerors'
statements of qualification and proposals to the Commission on
Government Forecasting and Accountability and the Procurement
Policy Board, which shall, within 30 days of the submission,
complete a review of the statements of qualification and
proposals and, jointly or separately, report on, at a minimum,
the satisfaction of the criteria contained in the request for
proposals, the qualifications of the offerors, and the value of
the proposals to the State. The Department shall not select an
offeror as the contractor for the Illiana Expressway project
until it has received and considered the findings of the
Commission on Government Forecasting and Accountability and
the Procurement Policy Board as set forth in their respective
reports.
(g) Before awarding a public private agreement to an
offeror, the Department shall schedule and hold a public
hearing or hearings on the proposed public private agreement
and publish notice of the hearing or hearings at least 7 days
before the hearing and in accordance with Section 4-219 of the

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Illinois Highway Code. The notice must include the following:
(1) the date, time, and place of the hearing and the
address of the Department;
(2) the subject matter of the hearing;
(3) a description of the agreement that may be awarded;
and
(4) the recommendation that has been made to select an
offeror as the contractor for the Illiana Expressway
project.
At the hearing, the Department shall allow the public to be
heard on the subject of the hearing.
(h) After the procedures required in this Section have been
completed, the Department shall make a determination as to
whether the offeror should be designated as the contractor for
the Illiana Expressway project and shall submit the decision to
the Governor and to the Governor's Office of Management and
Budget. After review of the Department's determination, the
Governor may accept or reject the determination. If the
Governor accepts the determination of the Department, the
Governor shall designate the offeror for the Illiana Expressway
project.
(Source: P.A. 96-913, eff. 6-9-10.)
Section 165. The Public-Private Agreements for the South
Suburban Airport Act is amended by changing Section 2-30 as
follows:

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(620 ILCS 75/2-30)
Sec. 2-30. Request for proposals process to enter into
public-private agreements.
(a) Notwithstanding any provisions of the Illinois
Procurement Code, the Department, on behalf of the State, shall
select a contractor through a competitive request for proposals
process governed by Section 2-30 of this Act. The Department
will consult with the chief procurement officer for
construction or construction-related activities designated
pursuant to clause (2) of Section 1-15.15 of the Illinois
Procurement Code on the competitive request for proposals
process, and the Secretary will determine, in consultation with
the chief procurement officer, which procedures to adopt and
apply to the competitive request for proposals process in order
to ensure an open, transparent, and efficient process that
accomplishes the purposes of this Act.
(b) The competitive request for proposals process shall, at
a minimum, solicit statements of qualification and proposals
from offerors.
(c) The competitive request for proposals process shall, at
a minimum, take into account the following criteria:
(1) the offeror's plans for the South Suburban Airport
project;
(2) the offeror's current and past business practices;
(3) the offeror's poor or inadequate past performance

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in developing, financing, constructing, managing, or
operating airports or other public assets;
(4) the offeror's ability to meet the utilization goals
for business enterprises established in the Business
Enterprise for Minorities, Women Females, and Persons with
Disabilities Act;
(5) the offeror's ability to comply with Section 2-105
of the Illinois Human Rights Act; and
(6) the offeror's plans to comply with the Business
Enterprise for Minorities, Women Females, and Persons with
Disabilities Act and Section 2-105 of the Illinois Human
Rights Act.
(d) The Department shall retain the services of an advisor
or advisors with significant experience in the development,
financing, construction, management, or operation of public
assets to assist in the preparation of the request for
proposals.
(e) The Department shall not include terms in the request
for proposals that provide an advantage, whether directly or
indirectly, to any contractor presently providing goods,
services, or equipment to the Department.
(f) The Department shall select one or more offerors as
finalists. The Department shall submit the offeror's
statements of qualification and proposals to the Commission on
Government Forecasting and Accountability and the Procurement
Policy Board, which shall, within 30 days after the submission,

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complete a review of the statements of qualification and
proposals and, jointly or separately, report on, at a minimum,
the satisfaction of the criteria contained in the request for
proposals, the qualifications of the offerors, and the value of
the proposals to the State. The Department shall not select an
offeror as the contractor for the South Suburban Airport
project until it has received and considered the findings of
the Commission on Government Forecasting and Accountability
and the Procurement Policy Board as set forth in their
respective reports.
(g) Before awarding a public-private agreement to an
offeror, the Department shall schedule and hold a public
hearing or hearings on the proposed public-private agreement
and publish notice of the hearing or hearings at least 7 days
before the hearing. The notice shall include the following:
(1) the date, time, and place of the hearing and the
address of the Department;
(2) the subject matter of the hearing;
(3) a description of the agreement that may be awarded;
and
(4) the recommendation that has been made to select an
offeror as the contractor for the South Suburban Airport
project.
At the hearing, the Department shall allow the public to be
heard on the subject of the hearing.
(h) After the procedures required in this Section have been

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completed, the Department shall make a determination as to
whether the offeror should be designated as the contractor for
the South Suburban Airport project and shall submit the
decision to the Governor and to the Governor's Office of
Management and Budget. After review of the Department's
determination, the Governor may accept or reject the
determination. If the Governor accepts the determination of the
Department, the Governor shall designate the offeror for the
South Suburban Airport project.
(Source: P.A. 98-109, eff. 7-25-13.)
Section 170. The Public-Private Partnerships for
Transportation Act is amended by changing Section 25 as
follows:
(630 ILCS 5/25)
Sec. 25. Design-build procurement.
(a) This Section 25 shall apply only to transportation
projects for which the Department or the Authority intends to
execute a design-build agreement, in which case the Department
or the Authority shall abide by the requirements and procedures
of this Section 25 in addition to other applicable requirements
and procedures set forth in this Act.
(b)(1) The transportation agency must issue a notice of
intent to receive proposals for the project at least 14 days
before issuing the request for the qualifications. The

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transportation agency must publish the advance notice in a
daily newspaper of general circulation in the county where the
transportation agency is located. The transportation agency is
encouraged to use publication of the notice in related
construction industry service publications. A brief
description of the proposed procurement must be included in the
notice. The transportation agency must provide a copy of the
request for qualifications to any party requesting a copy.
(2) The request for qualifications shall be prepared for
each project and must contain, without limitation, the
following information: (i) the name of the transportation
agency; (ii) a preliminary schedule for the completion of the
contract; (iii) the proposed budget for the project and the
source of funds, to the extent not already reflected in the
Department's Multi-Year Highway Improvement Program; (iv) the
shortlisting process for entities or groups of entities such as
unincorporated joint ventures wishing to submit proposals (the
transportation agency shall include, at a minimum, its normal
prequalification, licensing, registration, and other
requirements, but nothing contained herein precludes the use of
additional criteria by the transportation agency); (v) a
summary of anticipated material requirements of the contract,
including but not limited to, the proposed terms and
conditions, required performance and payment bonds, insurance,
and the utilization goals established by the transportation
agency for minority and women business enterprises and

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compliance with Section 2-105 of the Illinois Human Rights Act;
and (vi) the anticipated number of entities that will be
shortlisted for the request for proposals phase.
(3) The transportation agency may include any other
relevant information in the request for qualifications that it
chooses to supply. The private entity shall be entitled to rely
upon the accuracy of this documentation in the development of
its statement of qualifications and its proposal only to the
extent expressly warranted by the transportation agency.
(4) The date that statements of qualifications are due must
be at least 21 calendar days after the date of the issuance of
the request for qualifications. In the event the cost of the
project is estimated to exceed $12,000,000, then the statement
of qualifications due date must be at least 28 calendar days
after the date of the issuance of the request for
qualifications. The transportation agency shall include in the
request for proposals a minimum of 30 days to develop the
proposals after the selection of entities from the evaluation
of the statements of qualifications is completed.
(c)(1) The transportation agency shall develop, with the
assistance of a licensed design professional, the request for
qualifications and the request for proposals, which shall
include scope and performance criteria. The scope and
performance criteria must be in sufficient detail and contain
adequate information to reasonably apprise the private
entities of the transportation agency's overall programmatic

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needs and goals, including criteria and preliminary design
plans, general budget parameters, schedule, and delivery
requirements.
(2) Each request for qualifications and request for
proposals shall also include a description of the level of
design to be provided in the proposals. This description must
include the scope and type of renderings, drawings, and
specifications that, at a minimum, will be required by the
transportation agency to be produced by the private entities.
(3) The scope and performance criteria shall be prepared by
a design professional who is an employee of the transportation
agency, or the transportation agency may contract with an
independent design professional selected under the
Architectural, Engineering, and Land Surveying Qualifications
Based Selection Act to provide these services.
(4) The design professional that prepares the scope and
performance criteria is prohibited from participating in any
private entity proposal for the project.
(d)(1) The transportation agency must use a two phase
procedure for the selection of the successful design-build
entity. The request for qualifications phase will evaluate and
shortlist the private entities based on qualifications, and the
request for proposals will evaluate the technical and cost
proposals.
(2) The transportation agency shall include in the request
for qualifications the evaluating factors to be used in the

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request for qualifications phase. These factors are in addition
to any prequalification requirements of private entities that
the transportation agency has set forth. Each request for
qualifications shall establish the relative importance
assigned to each evaluation factor, including any weighting of
criteria to be employed by the transportation agency. The
transportation agency must maintain a record of the evaluation
scoring to be disclosed in event of a protest regarding the
solicitation.
The transportation agency shall include the following
criteria in every request for qualifications phase evaluation
of private entities: (i) experience of personnel; (ii)
successful experience with similar project types; (iii)
financial capability; (iv) timeliness of past performance; (v)
experience with similarly sized projects; (vi) successful
reference checks of the firm; (vii) commitment to assign
personnel for the duration of the project and qualifications of
the entity's consultants; and (viii) ability or past
performance in meeting or exhausting good faith efforts to meet
the utilization goals for business enterprises established in
the Business Enterprise for Minorities, Women Females, and
Persons with Disabilities Act and in complying with Section
2-105 of the Illinois Human Rights Act. No proposal shall be
considered that does not include an entity's plan to comply
with the requirements regarding minority and women business
enterprises and economically disadvantaged firms established

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by the transportation agency and with Section 2-105 of the
Illinois Human Rights Act. The transportation agency may
include any additional relevant criteria in the request for
qualifications phase that it deems necessary for a proper
qualification review.
Upon completion of the qualifications evaluation, the
transportation agency shall create a shortlist of the most
highly qualified private entities.
The transportation agency shall notify the entities
selected for the shortlist in writing. This notification shall
commence the period for the preparation of the request for
proposals phase technical and cost evaluations. The
transportation agency must allow sufficient time for the
shortlist entities to prepare their proposals considering the
scope and detail requested by the transportation agency.
(3) The transportation agency shall include in the request
for proposals the evaluating factors to be used in the
technical and cost submission components. Each request for
proposals shall establish, for both the technical and cost
submission components, the relative importance assigned to
each evaluation factor, including any weighting of criteria to
be employed by the transportation agency. The transportation
agency must maintain a record of the evaluation scoring to be
disclosed in event of a protest regarding the solicitation.
The transportation agency shall include the following
criteria in every request for proposals phase technical

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evaluation of private entities: (i) compliance with objectives
of the project; (ii) compliance of proposed services to the
request for proposal requirements; (iii) compliance with the
request for proposal requirements of products or materials
proposed; (iv) quality of design parameters; and (v) design
concepts. The transportation agency may include any additional
relevant technical evaluation factors it deems necessary for
proper selection.
The transportation agency shall include the following
criteria in every request for proposals phase cost evaluation:
the total project cost and the time of completion. The
transportation agency may include any additional relevant
technical evaluation factors it deems necessary for proper
selection. The guaranteed maximum project cost criteria
weighing factor shall not exceed 30%.
The transportation agency shall directly employ or retain a
licensed design professional to evaluate the technical and cost
submissions to determine if the technical submissions are in
accordance with generally accepted industry standards.
(e) Statements of qualifications and proposals must be
properly identified and sealed. Statements of qualifications
and proposals may not be reviewed until after the deadline for
submission has passed as set forth in the request for
qualifications or the request for proposals. All private
entities submitting statements of qualifications or proposals
shall be disclosed after the deadline for submission, and all

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private entities who are selected for request for proposals
phase evaluation shall also be disclosed at the time of that
determination.
Design-build proposals shall include a bid bond in the form
and security as designated in the request for proposals.
Proposals shall also contain a separate sealed envelope with
the cost information within the overall proposal submission.
Proposals shall include a list of all design professionals and
other entities to which any work identified in Section 30-30 of
the Illinois Procurement Code as a subdivision of construction
work may be subcontracted during the performance of the
contract to the extent known at the time of proposal. If the
information is not known at the time of proposal, then the
design-build agreement shall require the identification prior
to a previously unlisted subcontractor commencing work on the
transportation project.
Statements of qualifications and proposals must meet all
material requirements of the request for qualifications or
request for proposals, or else they may be rejected as
non-responsive. The transportation agency shall have the right
to reject any and all statements of qualifications and
proposals.
The private entity's proprietary intellectual property
contained in the drawings and specifications of any
unsuccessful statement of qualifications or proposal shall
remain the property of the private entity.

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The transportation agency shall review the statements of
qualifications and the proposals for compliance with the
performance criteria and evaluation factors.
Statements of qualifications and proposals may be
withdrawn prior to the due date and time for submissions for
any cause. After evaluation begins by the transportation
agency, clear and convincing evidence of error is required for
withdrawal.
(Source: P.A. 97-502, eff. 8-23-11; 97-858, eff. 7-27-12.)
Section 175. The Criminal Code of 2012 is amended by
changing Sections 17-10.3 and 33E-2 as follows:
(720 ILCS 5/17-10.3)
Sec. 17-10.3. Deception relating to certification of
disadvantaged business enterprises.
(a) Fraudulently obtaining or retaining certification. A
person who, in the course of business, fraudulently obtains or
retains certification as a minority-owned minority owned
business, women-owned female owned business, service-disabled
veteran-owned small business, or veteran-owned small business
commits a Class 2 felony.
(b) Willfully making a false statement. A person who, in
the course of business, willfully makes a false statement
whether by affidavit, report or other representation, to an
official or employee of a State agency or the Minority and

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Female Business Enterprise Council for Minorities, Women, and
Persons with Disabilities for the purpose of influencing the
certification or denial of certification of any business entity
as a minority-owned minority owned business, women-owned
female owned business, service-disabled veteran-owned small
business, or veteran-owned small business commits a Class 2
felony.
(c) Willfully obstructing or impeding an official or
employee of any agency in his or her investigation. Any person
who, in the course of business, willfully obstructs or impedes
an official or employee of any State agency or the Minority and
Female Business Enterprise Council for Minorities, Women, and
Persons with Disabilities who is investigating the
qualifications of a business entity which has requested
certification as a minority-owned minority owned business,
women-owned female owned business, service-disabled
veteran-owned small business, or veteran-owned small business
commits a Class 2 felony.
(d) Fraudulently obtaining public moneys reserved for
disadvantaged business enterprises. Any person who, in the
course of business, fraudulently obtains public moneys
reserved for, or allocated or available to, minority-owned
minority owned businesses, women-owned female owned
businesses, service-disabled veteran-owned small businesses,
or veteran-owned small businesses commits a Class 2 felony.
(e) Definitions. As used in this Article, "minority-owned

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minority owned business", "women-owned female owned business",
"State agency" with respect to minority-owned minority owned
businesses and women-owned female owned businesses, and
"certification" with respect to minority-owned minority owned
businesses and women-owned female owned businesses shall have
the meanings ascribed to them in Section 2 of the Business
Enterprise for Minorities, Women Females, and Persons with
Disabilities Act. As used in this Article, "service-disabled
veteran-owned small business", "veteran-owned small business",
"State agency" with respect to service-disabled veteran-owned
small businesses and veteran-owned small businesses, and
"certification" with respect to service-disabled veteran-owned
small businesses and veteran-owned small businesses have the
same meanings as in Section 45-57 of the Illinois Procurement
Code.
(Source: P.A. 96-1551, eff. 7-1-11; 97-260, eff. 8-5-11.)
(720 ILCS 5/33E-2) (from Ch. 38, par. 33E-2)
Sec. 33E-2. Definitions. In this Act:
(a) "Public contract" means any contract for goods,
services or construction let to any person with or without bid
by any unit of State or local government.
(b) "Unit of State or local government" means the State,
any unit of state government or agency thereof, any county or
municipal government or committee or agency thereof, or any
other entity which is funded by or expends tax dollars or the

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proceeds of publicly guaranteed bonds.
(c) "Change order" means a change in a contract term other
than as specifically provided for in the contract which
authorizes or necessitates any increase or decrease in the cost
of the contract or the time to completion.
(d) "Person" means any individual, firm, partnership,
corporation, joint venture or other entity, but does not
include a unit of State or local government.
(e) "Person employed by any unit of State or local
government" means any employee of a unit of State or local
government and any person defined in subsection (d) who is
authorized by such unit of State or local government to act on
its behalf in relation to any public contract.
(f) "Sheltered market" has the meaning ascribed to it in
Section 8b of the Business Enterprise for Minorities, Women
Females, and Persons with Disabilities Act; except that, with
respect to State contracts set aside for award to
service-disabled veteran-owned small businesses and
veteran-owned small businesses pursuant to Section 45-57 of the
Illinois Procurement Code, "sheltered market" means
procurements pursuant to that Section.
(g) "Kickback" means any money, fee, commission, credit,
gift, gratuity, thing of value, or compensation of any kind
which is provided, directly or indirectly, to any prime
contractor, prime contractor employee, subcontractor, or
subcontractor employee for the purpose of improperly obtaining

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or rewarding favorable treatment in connection with a prime
contract or in connection with a subcontract relating to a
prime contract.
(h) "Prime contractor" means any person who has entered
into a public contract.
(i) "Prime contractor employee" means any officer,
partner, employee, or agent of a prime contractor.
(i-5) "Stringing" means knowingly structuring a contract
or job order to avoid the contract or job order being subject
to competitive bidding requirements.
(j) "Subcontract" means a contract or contractual action
entered into by a prime contractor or subcontractor for the
purpose of obtaining goods or services of any kind under a
prime contract.
(k) "Subcontractor" (1) means any person, other than the
prime contractor, who offers to furnish or furnishes any goods
or services of any kind under a prime contract or a subcontract
entered into in connection with such prime contract; and (2)
includes any person who offers to furnish or furnishes goods or
services to the prime contractor or a higher tier
subcontractor.
(l) "Subcontractor employee" means any officer, partner,
employee, or agent of a subcontractor.
(Source: P.A. 97-260, eff. 8-5-11.)
Section 180. The Business Corporation Act of 1983 is

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amended by changing Section 14.05 as follows:
(805 ILCS 5/14.05) (from Ch. 32, par. 14.05)
Sec. 14.05. Annual report of domestic or foreign
corporation. Each domestic corporation organized under any
general law or special act of this State authorizing the
corporation to issue shares, other than homestead
associations, building and loan associations, banks and
insurance companies (which includes a syndicate or limited
syndicate regulated under Article V 1/2 of the Illinois
Insurance Code or member of a group of underwriters regulated
under Article V of that Code), and each foreign corporation
(except members of a group of underwriters regulated under
Article V of the Illinois Insurance Code) authorized to
transact business in this State, shall file, within the time
prescribed by this Act, an annual report setting forth:
(a) The name of the corporation.
(b) The address, including street and number, or rural
route number, of its registered office in this State, and
the name of its registered agent at that address.
(c) The address, including street and number, or rural
route number, of its principal office.
(d) The names and respective addresses, including
street and number, or rural route number, of its directors
and officers.
(e) A statement of the aggregate number of shares which

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the corporation has authority to issue, itemized by classes
and series, if any, within a class.
(f) A statement of the aggregate number of issued
shares, itemized by classes, and series, if any, within a
class.
(g) A statement, expressed in dollars, of the amount of
paid-in capital of the corporation as defined in this Act.
(h) Either a statement that (1) all the property of the
corporation is located in this State and all of its
business is transacted at or from places of business in
this State, or the corporation elects to pay the annual
franchise tax on the basis of its entire paid-in capital,
or (2) a statement, expressed in dollars, of the value of
all the property owned by the corporation, wherever
located, and the value of the property located within this
State, and a statement, expressed in dollars, of the gross
amount of business transacted by the corporation and the
gross amount thereof transacted by the corporation at or
from places of business in this State as of the close of
its fiscal year on or immediately preceding the last day of
the third month prior to the anniversary month or in the
case of a corporation which has established an extended
filing month, as of the close of its fiscal year on or
immediately preceding the last day of the third month prior
to the extended filing month; however, in the case of a
domestic corporation that has not completed its first

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fiscal year, the statement with respect to property owned
shall be as of the last day of the third month preceding
the anniversary month and the statement with respect to
business transacted shall be furnished for the period
between the date of incorporation and the last day of the
third month preceding the anniversary month. In the case of
a foreign corporation that has not been authorized to
transact business in this State for a period of 12 months
and has not commenced transacting business prior to
obtaining authority, the statement with respect to
property owned shall be as of the last day of the third
month preceding the anniversary month and the statement
with respect to business transacted shall be furnished for
the period between the date of its authorization to
transact business in this State and the last day of the
third month preceding the anniversary month. If the data
referenced in item (2) of this subsection is not completed,
the franchise tax provided for in this Act shall be
computed on the basis of the entire paid-in capital.
(i) A statement, including the basis therefor, of
status as a "minority-owned minority owned business" or as
a "women-owned female owned business" as those terms are
defined in the Business Enterprise for Minorities, Women
Females, and Persons with Disabilities Act.
(j) Additional information as may be necessary or
appropriate in order to enable the Secretary of State to

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administer this Act and to verify the proper amount of fees
and franchise taxes payable by the corporation.
The annual report shall be made on forms prescribed and
furnished by the Secretary of State, and the information
therein required by paragraphs (a) through (d), both inclusive,
of this Section, shall be given as of the date of the execution
of the annual report and the information therein required by
paragraphs (e), (f) and (g) of this Section shall be given as
of the last day of the third month preceding the anniversary
month, except that the information required by paragraphs (e),
(f) and (g) shall, in the case of a corporation which has
established an extended filing month, be given in its final
transition annual report and each subsequent annual report as
of the close of its fiscal year immediately preceding its
extended filing month. It shall be executed by the corporation
by its president, a vice-president, secretary, assistant
secretary, treasurer or other officer duly authorized by the
board of directors of the corporation to execute those reports,
and verified by him or her, or, if the corporation is in the
hands of a receiver or trustee, it shall be executed on behalf
of the corporation and verified by the receiver or trustee.
(Source: P.A. 92-16, eff. 6-28-01; 92-33, eff. 7-1-01; 93-59,
7-1-03.)
Section 999. Effective date. This Act takes effect upon
becoming law.".