Bill Text: IL HB3888 | 2023-2024 | 103rd General Assembly | Introduced

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Bill Title: Creates the Diversity in Not-for-Profit Act. Allows any State agency, county, or unit of local government of the State of Illinois that certifies entities under a disadvantaged business enterprise program to certify organizations as minority-led not-for-profit organizations, woman-led not-for-profit organizations, and not-for-profit organizations led by a person with a disability under the Act. Amends the Public Utilities Act. Provides that specified supplier diversity goal requirements under the Act apply to minority-led not-for-profit organizations, woman-led not-for-profit organizations, and not-for-profit organizations led by a person with a disability. Defines terms.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced) 2023-03-10 - Rule 19(a) / Re-referred to Rules Committee [HB3888 Detail]

Download: Illinois-2023-HB3888-Introduced.html

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103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB3888 Introduced , by Rep. Lilian Jiménez SYNOPSIS AS INTRODUCED:
New Act
220 ILCS 5/5-117
Creates the Diversity in Not-for-Profit Act. Allows any State agency, county, or unit of local government of the State of Illinois that certifies entities under a disadvantaged business enterprise program to certify organizations as minority-led not-for-profit organizations, woman-led not-for-profit organizations, and not-for-profit organizations led by a person with a disability under the Act. Amends the Public Utilities Act. Provides that specified supplier diversity goal requirements under the Act apply to minority-led not-for-profit organizations, woman-led not-for-profit organizations, and not-for-profit organizations led by a person with a disability. Defines terms.
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A BILL FOR
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AN ACT concerning State government.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 1. Short title. This Act may be cited as the
Diversity in Not-for-Profit Act.
Section 5. Definitions. As used in this Act:
"Board of directors" has the same meaning as provided
under subsection (d) of Section 101.80 of the General Not For
Profit Corporation Act of 1986.
"Certification" means a determination that a
not-for-profit organization meets the defined classifications
of a "minority-led not-for-profit organization", a "woman-led
not-for-profit organization", or a "not-for-profit
organization led by a person with a disability".
"Key employees" means an employee of the organization who
is:
(1) the person who has ultimate responsibility for
implementing the decisions of the board of directors or
for supervising the management, administration, or
operation of the organization;
(2) the person who has ultimate responsibility for
managing the organization's finances; or
(3) the person who:

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(A) has responsibilities, powers, or influence
over the organization as a whole that is similar to the
persons described in paragraphs (1) and (2);
(B) manages a discrete segment or activity of the
organizations that represents 25% or more of the
activities, assets, income, or expenses of the
organization, as compared to the organization as a
whole, or has or shares authority to control or
determine 25% or more of the organization's capital
expenditures, operating budget, or compensation for
employees; and
(C) is one of the 5 highest compensated employees
in the organization.
"Minority-led not-for-profit organization" means an
organization that is tax-exempt under Sections 501(c)(3) or
501(c)(4) of the Internal Revenue Code of 1986, has filed all
required forms under the Solicitation for Charity Act, and for
which:
(1) at least 51% of the members of the organization's
board of directors are minority persons, or at least 51%
of the members of the organization's board of directors
and key employees are minority persons;
(2) the organization is regularly and actively engaged
in the activity for which it is formed;
(3) the organization is not dependent upon or
influenced by another non-eligible person or organization;

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and
(4) the organization has not been established or
reorganized for the specific purpose of obtaining a
certification under this Act.
"Not-for-profit organization led by a person with a
disability" means an organization that is tax-exempt under
Sections 501(c)(3) or 501(c)(4) of the Internal Revenue Code
of 1986, has filed all required forms under the Solicitation
for Charity Act, and for which:
(1) at least 51% of the members of the organization's
board of directors are persons with a disability, or at
least 51% of the members of the organization's board of
directors and key employees are persons with a disability;
(2) the organization is regularly and actively engaged
in the activity for which it is formed;
(3) the organization is not dependent upon or
influenced by another non-eligible person or organization;
and
(4) the organization has not been established or
reorganized for the specific purpose of obtaining a
certification under this Act.
"Woman-led not-for-profit organization" means an
organization that is tax-exempt under Sections 501(c)(3) or
501(c)(4) of the Internal Revenue Code of 1986, has filed all
required forms under the Solicitation for Charity Act, and for
which:

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(1) at least 51% of the members of the organization's
board of directors are women, or at least 51% of the
members of the organization's board of directors and key
employees are women;
(2) the organization is regularly and actively engaged
in the activity for which it is formed;
(3) the organization is not dependent upon or
influenced by another non-eligible person or organization;
and
(4) the organization has not been established or
reorganized for the specific purpose of obtaining a
certification under this Act.
Section 10. Certification.
(a) For the purpose of assuring that a not-for-profit
organization taking advantage of this Act is legitimately
classified as a minority-led not-for-profit organization, a
woman-led not-for-profit organization, or a not-for-profit
organization led by a person with a disability, any State
agency, county, or unit of local government of the State of
Illinois that, on the effective date of this Act, certifies
entities under a disadvantaged business enterprise program
created under (i) the Business Enterprise for Minorities,
Women, and Persons with Disabilities Act, (ii) home rule
authorization under the Illinois Constitution, or (iii) any
similar statutory or home rule authorizations, may also

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certify the organizations defined under this Act. Any such
State agency, county, or unit of local government, if it
elects to certify hereunder, shall also maintain a list of all
not-for-profit organizations legitimately classified as a
minority-led not-for-profit organization, a woman-led
not-for-profit organization, or a not-for-profit organization
led by a person with a disability.
(b) When a not-for-profit organization's board of
directors, or the board of directors together with key
employees, consists of at least 51% of any combination of
minority persons, women, or persons with disabilities, even
though none of the 3 classes alone holds at least a 51% share,
the 51% membership requirement for purposes of certification
under this Act shall be considered met. The certification
category for not-for-profit organizations shall be that of the
class holding the largest share of positions on the board of
directors, or on the board of directors together with key
employees, of a not-for-profit organization. If 2 or more
classes have an equal share of positions on the board of
directors, or on the board of directors together with key
employees, the certification category shall be determined by
the not-for-profit organization.
Section 15. Rules. Any State agency that elects to certify
organizations under this Act shall adopt rules necessary to
implement and enforce the requirements of this Act.

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Section 100. The Public Utilities Act is amended by
changing Section 5-117 as follows:
(220 ILCS 5/5-117)
Sec. 5-117. Supplier diversity goals.
(a) The public policy of this State is to collaboratively
work with companies and not-for-profit organizations that
serve Illinois residents to improve their supplier diversity
in a non-antagonistic manner.
(a-5) For the purposes of this Section, "minority-led
not-for-profit organization", "woman-led not-for-profit
organization", and "not-for-profit organization led by a
person with a disability" shall have the same meanings as
provided under the Diversity in Not-for-Profit Act.
(b) The Commission shall require all gas, electric, and
water utilities with at least 100,000 customers under its
authority to submit an annual report by April 15, 2015 and
every April 15 thereafter, in a searchable Adobe PDF format,
on all procurement goals and actual spending for female-owned,
minority-owned, veteran-owned, person with a disability-owned,
and small business enterprises, as well as minority-led
not-for-profit organizations, woman-led not-for-profit
organizations, and not-for-profit organizations led by a
person with a disability, in the previous calendar year. These
goals shall be expressed as a percentage of the total work

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performed by the entity submitting the report, and the actual
spending for all female-owned, minority-owned, veteran-owned,
person with a disability-owned, and small business
enterprises, as well as minority-led not-for-profit
organizations, woman-led not-for-profit organizations, and
not-for-profit organizations led by a person with a
disability, shall also be expressed as a percentage of the
total work performed by the entity submitting the report.
(c) Each participating company in its annual report shall
include the following information:
(1) an explanation of the plan for the next year to
increase participation;
(2) an explanation of the plan to increase the goals;
(3) the areas of procurement each company shall be
actively seeking more participation in the next year;
(3.5) a buying plan for the specific goods and
services the company intends to buy in the next 6 to 18
months, that is either (i) organized by and reported at
the level of each applicable North American Industry
Classification System code, (ii) provided using a method,
system, or description similar to the North American
Industry Classification System, or (iii) provided using
the major categories of goods and related services
utilized in the company's procurement system, and
including any procurement codes used by the company, to
assist entrepreneurs and diverse companies to understand

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upcoming opportunities to work with the company, however,
a utility shall not be required to include
commercially-sensitive data, nonpublic procurement
information, or other information that could compromise a
utility's ability to negotiate the most advantageous price
or terms;
(4) an outline of the plan to alert and encourage
potential vendors in that area to seek business from the
company;
(5) an explanation of the challenges faced in finding
quality vendors and offer any suggestions for what the
Commission could do to be helpful to identify those
vendors;
(6) a list of the certifications the company
recognizes;
(7) the point of contact for any potential vendor who
wishes to do business with the company and explain the
process for a vendor to enroll with the company as a
minority-owned, women-owned, or veteran-owned, or person
with a disability-owned company, or a minority-led
not-for-profit organization, a woman-led not-for-profit
organization, or a not-for-profit organization led by a
person with a disability; and
(8) any particular success stories to encourage other
companies to emulate best practices.
(d) Each annual report shall include as much

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State-specific data as possible. If the submitting entity does
not submit State-specific data, then the company shall include
any national data it does have and explain why it could not
submit State-specific data and how it intends to do so in
future reports, if possible.
(e) Each annual report shall include the rules,
regulations, and definitions used for the procurement goals in
the company's annual report.
(f) The Commission and all participating entities shall
hold an annual workshop open to the public in 2015 and every
year thereafter on the state of supplier diversity to
collaboratively seek solutions to structural impediments to
achieving stated goals, including testimony from each
participating entity as well as subject matter experts and
advocates. The Commission shall publish a database on its
website of the point of contact for each participating entity
for supplier diversity, along with a list of certifications
each company recognizes from the information submitted in each
annual report. The Commission shall publish each annual report
on its website and shall maintain each annual report for at
least 5 years.
(Source: P.A. 102-558, eff. 8-20-21; 102-662, eff. 9-15-21;
102-673, eff. 11-30-21; 102-1031, eff. 5-27-22.)