Bill Amendment: IL SB1334 | 2015-2016 | 99th General Assembly

NOTE: For additional amemendments please see the Bill Drafting List

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Bill Title: BUSINESS ENTERPRISE-HIGHER ED

Status: 2015-08-25 - Public Act . . . . . . . . . 99-0462 [SB1334 Detail]

Download: Illinois-2015-SB1334-House_Amendment_003.html

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Rep. Arthur Turner

Filed: 5/21/2015

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AMENDMENT TO SENATE BILL 1334
AMENDMENT NO. ______. Amend Senate Bill 1334, AS AMENDED,
by replacing everything after the enacting clause with the
following:
"Section 5. The Business Enterprise for Minorities,
Females, and Persons with Disabilities Act is amended by
changing Sections 2, 3, 4, 5, 6, 6a, 7, 8, and 8f and by adding
Section 4f as follows:
(30 ILCS 575/2)
(Section scheduled to be repealed on June 30, 2016)
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:

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(a) 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).
(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) "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 being disabled under subdivision

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(2.1) of this subsection (A).
(2.1) "Disabled" means 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,

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paraplegia,
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 business" means a business concern
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) "Female owned business" means a business concern
which is at least 51% owned by one or more females, or, in
the case of a corporation, at least 51% of the stock in
which is owned by one or more females; and the management

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and daily business operations of which are controlled by
one or more of the females who own it.
(4.1) "Business owned by a person with a disability"
means a business concern 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, 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 contracts" shall mean all
State contracts, funded exclusively with State funds which

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are not subject to federal reimbursement, whether
competitively bid or negotiated as defined by the Secretary
of the Council and approved by the Council.
"State construction contracts" means all State
contracts entered into by a State agency or public
institution of higher education State university 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,

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Chicago State University, Eastern Illinois University,
Governors State University, Illinois State University,
Northeastern Illinois University, Northern Illinois
University, Western Illinois University, the public
community colleges of the State, and any other public
universities, colleges and community colleges now or
hereafter established or authorized by the General
Assembly. "State universities" shall mean 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, and the Board of Trustees of
Western Illinois University.
(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, female, or person
with a disability for whatever purpose. A business owned
and controlled by females shall be certified as a "female
owned business". A business owned and controlled by females
who are also minorities shall be certified as both a

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"female owned business" and a "minority owned business".
(9) "Control" means the exclusive or ultimate and sole
control of the business including, but not limited to,
capital investment and all other financial matters,
property, acquisitions, contract negotiations, legal
matters, officer-director-employee selection and
comprehensive hiring, operating responsibilities,
cost-control matters, income and dividend matters,
financial transactions and rights of other shareholders or
joint partners. Control shall be real, substantial and
continuing, not pro forma. Control shall include the power
to direct or cause the direction of the management and
policies of the business and to make the day-to-day as well
as major decisions in matters of policy, management and
operations. Control shall be exemplified by possessing the
requisite knowledge and expertise to run the particular
business and control shall not include simple majority or
absentee ownership.
(10) "Business concern or 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,
females, or persons with disabilities as suppliers or

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subcontractors or in employment of minorities, females, or
persons with disabilities.
(B) When a business concern is owned at least 51% by any
combination of minority persons, 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 concern.
(Source: P.A. 97-227, eff. 1-1-12; 97-396, eff. 1-1-12; 97-813,
eff. 7-13-12; 98-95, eff. 7-17-13.)
(30 ILCS 575/3) (from Ch. 127, par. 132.603)
(Section scheduled to be repealed on June 30, 2016)
Sec. 3. Implementation and applicability. This Act shall be
applied to all State agencies and public institutions of higher
education State universities.
(Source: P.A. 85-729.)
(30 ILCS 575/4) (from Ch. 127, par. 132.604)
(Section scheduled to be repealed on June 30, 2016)
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

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defined by the Secretary of the Council and approved by the
Council, shall be established as an aspirational a goal to be
awarded to businesses owned by minorities, females, and persons
with disabilities; provided, however, that of the total amount
of all State contracts awarded to businesses owned by
minorities, 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 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 university which
lets such contracts. Only that percentage of arrangements which
represents the participation of businesses owned by
minorities, 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 Not less than 20% 10% of the total dollar amount
of State construction contracts is established as a goal to be

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awarded to minority and 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
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 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 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 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.

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(e) Notwithstanding any provision of law to the contrary
and except 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 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 to exceed 30
days 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, females, or, where applicable, persons with
disabilities, 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. Those who submit bids or proposals for State
contracts shall not be given a period after the bid or proposal
is submitted to cure deficiencies in the bid or proposal under
this Act unless mandated by federal law or regulation.
(Source: P.A. 96-7, eff. 4-3-09; 96-8, eff. 4-28-09; 96-706,
eff. 8-25-09; 96-795, eff. 7-1-10 (see Section 5 of P.A. 96-793
for the effective date of changes made by P.A. 96-795);
96-1000, eff. 7-2-10.)
(30 ILCS 575/4f new)
Sec. 4f. Award of State contracts.

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(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, females, and persons with disabilities in
the area of goods and services, including, but not limited to,
insurance services, investment management services,
information technology services, accounting services,
architectural and engineering services, and legal services.
Furthermore, each State agency and public institution of higher
education 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 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, 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 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, females,

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and persons with disabilities as defined by this Act, for
not less than 20% of the total funds under management.
Furthermore, it is the aspirational goal that not less than
20% of the direct asset managers of the State funds be
minorities, females, and persons with disabilities.
(c) When a State agency or public institution of higher
education 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, females, and persons with disabilities as
defined by this Act and lawyers who are minorities,
females, and persons with disabilities as defined by this
Act, for not less than 20% of the total dollar amount of
State contracts.
(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

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

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(3) Each State agency and public institutions of higher
education shall adopt policies that identify its plan and
implementation procedures for increasing the use of service
firms owned by minorities, 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 services 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, females, and persons with disabilities,
including encouraging non-minority owned firms to use other
service firms owned by minorities, 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, 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

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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, 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
minorities, 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, females, and persons with
disabilities by each State agency and public institution of
higher education.

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(E) The total number of contracts awarded for services
by category and the total number of contracts awarded to
firms owned by minorities, 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,
females, or persons with disabilities, (iii) the policy of the
community college district concerning certified vendors, (iv)
the certifications recognized by the community college
district for determining whether a business is owned or
controlled by a minority, 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 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

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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
Council to receive, review, and discuss the progress of the use
of service firms owned by minorities, females, and persons with
disabilities by each State agency and public institutions of
higher education; and any evidence regarding past or present
racial, ethnic, or gender-based discrimination which directly
impacts State agency or public institutions 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.

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(30 ILCS 575/5) (from Ch. 127, par. 132.605)
(Section scheduled to be repealed on June 30, 2016)
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, 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
Board, or their duly appointed representatives. Ten
individuals representing businesses that are minority or
female owned or owned by persons with disabilities, 2
individuals representing the business community, and a
representative of public institutions of higher education
public universities 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

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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,
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 State
university shall appoint a liaison to the Council. The liaison
shall be responsible for submitting to the Council any reports
and 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, females, or
persons with disabilities.
(b) Maintain a list of all businesses legitimately
classified as businesses owned by minorities, females, or
persons with disabilities to provide to State agencies and
public institutions of higher education State
universities.
(c) Review rules and regulations for the
implementation of the program for businesses owned by
minorities, females, and persons with disabilities.

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(d) Review compliance plans submitted by each State
agency and public institutions of higher education State
university 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, 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.
(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, 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, 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

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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, females, and
persons with disabilities and as the information and
referral center for all State initiatives for businesses
owned by minorities, females, and persons with
disabilities.
(c) To establish an enforcement procedure whereby the
Council may recommend to the appropriate State legal
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 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, females, and persons with disabilities as
prime contractors including, but not limited to, (i)
encouraging the inclusions of qualified businesses owned
by minorities, females, and persons with disabilities on

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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
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. 94-793, eff. 5-19-06.)
(30 ILCS 575/6) (from Ch. 127, par. 132.606)
(Section scheduled to be repealed on June 30, 2016)
Sec. 6. Agency compliance plans. Each State agency and
public institutions of higher education State university 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 State
university for contracting with businesses owned by
minorities, females, and persons with disabilities for the then

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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 State university
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 State university
head, expressing a commitment to encourage the use of
businesses owned by minorities, females, and persons with
disabilities, (2) the designation of the liaison officer
provided for in Section 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, 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,
females, and persons with disabilities.
(b) Approval of the compliance plans shall include such

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delegation of responsibilities to the requesting State agency
or public institution of higher education State university 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.
(c) Each State agency and public institution of higher
education State university under the jurisdiction of this Act
shall file with the Council an annual report of its utilization
of businesses owned by minorities, females, and persons with
disabilities during the preceding fiscal year including lapse
period spending and a mid-fiscal year report of its utilization
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 State university 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
State university which administers a construction program, for
which federal law or regulations establish standards and
procedures for the utilization of minority, disadvantaged, and
female-owned business, shall implement a disadvantaged
business enterprise program to include 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

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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 State university pursuant to this Act, which
incorporates equivalent terms and conditions of its
federally-approved compliance plan, shall be deemed approved
under this Act.
(Source: P.A. 88-377; 88-597, eff. 8-28-94.)
(30 ILCS 575/6a) (from Ch. 127, par. 132.606a)
(Section scheduled to be repealed on June 30, 2016)
Sec. 6a. Notice of contracts to Council. Except in case of
emergency as defined in the Illinois Procurement Code
Purchasing Act, or as authorized by rule promulgated by the
Department of Central Management Services, each agency and
public institution of higher education State university 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

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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 university 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
State university that has awarded contracts for professional
and artistic services to businesses owned by minorities,
females, and persons with disabilities totalling in the
aggregate $40,000,000 $5,000,000 or more during the preceding
fiscal year.
(Source: P.A. 87-628; 88-377; 88-597, eff. 8-28-94.)
(30 ILCS 575/7) (from Ch. 127, par. 132.607)
(Section scheduled to be repealed on June 30, 2016)
Sec. 7. Exemptions and waivers; 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 university, 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

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made wholly or partially exempt from State contracting goals
for businesses owned by minorities, 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, 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.
(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 university, may permit an entire class of
contracts be made exempt from State contracting goals for
businesses owned by minorities, 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, 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.

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(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, 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
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.
Each public notice required by law of the award of a State
contract shall include for each bid submitted for that contract
the following: (i) the bidder's name, (ii) the bid amount,
(iii) the bid's percentage of disadvantaged business
utilization plan, and (iv) the bid's percentage of business

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enterprise program utilization plan.
(Source: P.A. 96-1064, eff. 7-16-10.)
(30 ILCS 575/8) (from Ch. 127, par. 132.608)
(Section scheduled to be repealed on June 30, 2016)
Sec. 8. Enforcement. 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 State university, 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 State university, 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 university. State
agencies and public institutions of higher education State
universities 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.

09900SB1334ham003 - 32 - LRB099 10713 SXM 35931 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,
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 State university revise
its plan to provide additional opportunities for participation
by businesses owned by minorities, 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, 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, females,
and persons with disabilities;
(iii) elimination of extended experience or
capitalization requirements, when programmatically
feasible, to permit participation of businesses owned by
minorities, females, and persons with disabilities;
(iv) identification of specific proposed contracts as
particularly attractive or appropriate for participation
by businesses owned by minorities, females, and persons
with disabilities, such identification to result from and

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be coupled with the efforts of subparagraphs (i) through
(iii);
(v) implementation of those regulations established
for the use of the sheltered market process.
(Source: P.A. 88-377; 88-597, eff. 8-28-94.)
(30 ILCS 575/8f)
(Section scheduled to be repealed on June 30, 2016)
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 State
appropriations subject to the goals, the actual goals
specified, and the goals attained by each State agency and
public institution of higher education State university;
(2) a summary of the number of contracts awarded and
the average contract amount by each State agency and public
institution of higher education State university;
(3) an analysis of the level of overall goal
achievement concerning purchases from minority businesses,
female-owned businesses, and businesses owned by persons
with disabilities;
(4) an analysis of the number of businesses owned by
minorities, females, and persons with disabilities that

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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. 88-597, eff. 8-28-94.)
Section 10. The Illinois Pension Code is amended by
changing Section 1-109.1 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

09900SB1334ham003 - 35 - LRB099 10713 SXM 35931 a
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
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.

09900SB1334ham003 - 36 - LRB099 10713 SXM 35931 a
(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 business", "female
owned business" or "business owned by a person with a
disability" as those terms are defined in the Business
Enterprise for Minorities, 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
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

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retirement system, pension fund, or investment board shall
establish 3 separate goals for: (i) emerging investment
managers that are minority owned businesses; (ii) emerging
investment managers that are 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 businesses, female owned
businesses, and businesses owned by a person with a disability,
as those terms are defined in the Business Enterprise for
Minorities, 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.

09900SB1334ham003 - 38 - LRB099 10713 SXM 35931 a
(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.
(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, 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
businesses, female owned businesses, and businesses owned by a
person with a disability, as those terms are defined in the
Business Enterprise for Minorities, 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

09900SB1334ham003 - 39 - LRB099 10713 SXM 35931 a
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 business", "female owned business", or "business owned by
a person with a disability", as those terms are defined in the
Business Enterprise for Minorities, Females, and Persons with
Disabilities Act. The retirement system, pension fund, or
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

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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"
means a qualified investment manager that manages an investment
portfolio and meets the definition of "minority owned
business", "female owned business", or "business owned by a
person with a disability", as those terms are defined in the
Business Enterprise for Minorities, 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

09900SB1334ham003 - 41 - LRB099 10713 SXM 35931 a
managers that are minority owned businesses; (ii) minority
investment managers that are 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
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, females, and persons with disabilities as those

09900SB1334ham003 - 42 - LRB099 10713 SXM 35931 a
terms are defined in the Business Enterprise for Minorities,
Females, and Persons with Disabilities Act. It shall be the
aspirational goal to utilize businesses owned by minorities,
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 services" as those terms are
defined in the Act.
(Source: P.A. 98-1022, eff. 1-1-15.)
Section 99. Effective date. This Act takes effect upon
becoming law.".