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


Bill Title: Amends the Taxation Disclosure Act. Makes a technical change in a Section concerning the short title.

Spectrum: Partisan Bill (Democrat 8-0)

Status: (Engrossed) 2017-05-26 - Final Action Deadline Extended-9(b) May 31, 2017 [SB0262 Detail]

Download: Illinois-2017-SB0262-Engrossed.html



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1 AN ACT concerning State government.
2 Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
4 Section 5. The State Comptroller Act is amended by changing
5Section 23.9 as follows:
6 (15 ILCS 405/23.9)
7 Sec. 23.9. Minority Contractor Opportunity Initiative. The
8State Comptroller Minority Contractor Opportunity Initiative
9is created to provide greater opportunities for minority-owned
10businesses, women-owned female-owned businesses, businesses
11owned by persons with disabilities, and small businesses with
1220 or fewer employees in this State to participate in the State
13procurement process. The initiative shall be administered by
14the Comptroller. Under this initiative, the Comptroller is
15responsible for the following: (i) outreach to minority-owned
16businesses, women-owned female-owned businesses, businesses
17owned by persons with disabilities, and small businesses
18capable of providing services to the State; (ii) education of
19minority-owned businesses, women-owned female-owned
20businesses, businesses owned by persons with disabilities, and
21small businesses concerning State contracting and procurement;
22(iii) notification of minority-owned businesses, women-owned
23female-owned businesses, businesses owned by persons with

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1disabilities, and small businesses of State contracting
2opportunities; and (iv) maintenance of an online database of
3State contracts that identifies the contracts awarded to
4minority-owned businesses, women-owned female-owned
5businesses, businesses owned by persons with disabilities, and
6small businesses that includes the total amount paid by State
7agencies to contractors and the percentage paid to
8minority-owned businesses, women-owned female-owned
9businesses, businesses owned by persons with disabilities, and
10small businesses.
11 The Comptroller shall work with the Business Enterprise
12Council created under Section 5 of the Business Enterprise for
13Minorities, Women Females, and Persons with Disabilities Act to
14fulfill the Comptroller's responsibilities under this Section.
15The Comptroller may rely on the Business Enterprise Council's
16identification of minority-owned businesses, women-owned
17female-owned businesses, and businesses owned by persons with
18disabilities.
19 The Comptroller shall annually prepare and submit a report
20to the Governor and the General Assembly concerning the
21progress of this initiative including the following
22information for the preceding calendar year: (i) a statement of
23the total amounts paid by each executive branch agency to
24contractors since the previous report; (ii) the percentage of
25the amounts that were paid to minority-owned businesses,
26women-owned female-owned businesses, businesses owned by

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1persons with disabilities, and small businesses; (iii) the
2successes achieved and the challenges faced by the Comptroller
3in operating outreach programs for minorities, women, persons
4with disabilities, and small businesses; (iv) the challenges
5each executive branch agency may face in hiring qualified
6minority, woman female, and small business employees and
7employees with disabilities and contracting with qualified
8minority-owned businesses, women-owned female-owned
9businesses, businesses owned by persons with disabilities, and
10small businesses; and (iv) any other information, findings,
11conclusions, and recommendations for legislative or agency
12action, as the Comptroller deems appropriate.
13 On and after the effective date of this amendatory Act of
14the 97th General Assembly, any bidder or offeror awarded a
15contract of $1,000 or more under Section 20-10, 20-15, 20-25,
16or 20-30 of the Illinois Procurement Code is required to pay a
17fee of $15 to cover expenses related to the administration of
18this Section. The Comptroller shall deduct the fee from the
19first check issued to the vendor under the contract and deposit
20the fee into the Comptroller's Administrative Fund. Contracts
21administered for statewide orders placed by agencies (commonly
22referred to as "statewide master contracts") are exempt from
23this fee.
24(Source: P.A. 98-797, eff. 7-31-14; 99-143, eff. 7-27-15.)
25 (20 ILCS 605/605-525 rep.)

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1 Section 10. The Department of Commerce and Economic
2Opportunity Law of the Civil Administrative Code of Illinois is
3amended by repealing Section 605-525.
4 Section 15. The Illinois Lottery Law is amended by changing
5Section 9.1 as follows:
6 (20 ILCS 1605/9.1)
7 Sec. 9.1. Private manager and management agreement.
8 (a) As used in this Section:
9 "Offeror" means a person or group of persons that responds
10to a request for qualifications under this Section.
11 "Request for qualifications" means all materials and
12documents prepared by the Department to solicit the following
13from offerors:
14 (1) Statements of qualifications.
15 (2) Proposals to enter into a management agreement,
16 including the identity of any prospective vendor or vendors
17 that the offeror intends to initially engage to assist the
18 offeror in performing its obligations under the management
19 agreement.
20 "Final offer" means the last proposal submitted by an
21offeror in response to the request for qualifications,
22including the identity of any prospective vendor or vendors
23that the offeror intends to initially engage to assist the
24offeror in performing its obligations under the management

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1agreement.
2 "Final offeror" means the offeror ultimately selected by
3the Governor to be the private manager for the Lottery under
4subsection (h) of this Section.
5 (b) By September 15, 2010, the Governor shall select a
6private manager for the total management of the Lottery with
7integrated functions, such as lottery game design, supply of
8goods and services, and advertising and as specified in this
9Section.
10 (c) Pursuant to the terms of this subsection, the
11Department shall endeavor to expeditiously terminate the
12existing contracts in support of the Lottery in effect on the
13effective date of this amendatory Act of the 96th General
14Assembly in connection with the selection of the private
15manager. As part of its obligation to terminate these contracts
16and select the private manager, the Department shall establish
17a mutually agreeable timetable to transfer the functions of
18existing contractors to the private manager so that existing
19Lottery operations are not materially diminished or impaired
20during the transition. To that end, the Department shall do the
21following:
22 (1) where such contracts contain a provision
23 authorizing termination upon notice, the Department shall
24 provide notice of termination to occur upon the mutually
25 agreed timetable for transfer of functions;
26 (2) upon the expiration of any initial term or renewal

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1 term of the current Lottery contracts, the Department shall
2 not renew such contract for a term extending beyond the
3 mutually agreed timetable for transfer of functions; or
4 (3) in the event any current contract provides for
5 termination of that contract upon the implementation of a
6 contract with the private manager, the Department shall
7 perform all necessary actions to terminate the contract on
8 the date that coincides with the mutually agreed timetable
9 for transfer of functions.
10 If the contracts to support the current operation of the
11Lottery in effect on the effective date of this amendatory Act
12of the 96th General Assembly are not subject to termination as
13provided for in this subsection (c), then the Department may
14include a provision in the contract with the private manager
15specifying a mutually agreeable methodology for incorporation.
16 (c-5) The Department shall include provisions in the
17management agreement whereby the private manager shall, for a
18fee, and pursuant to a contract negotiated with the Department
19(the "Employee Use Contract"), utilize the services of current
20Department employees to assist in the administration and
21operation of the Lottery. The Department shall be the employer
22of all such bargaining unit employees assigned to perform such
23work for the private manager, and such employees shall be State
24employees, as defined by the Personnel Code. Department
25employees shall operate under the same employment policies,
26rules, regulations, and procedures, as other employees of the

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1Department. In addition, neither historical representation
2rights under the Illinois Public Labor Relations Act, nor
3existing collective bargaining agreements, shall be disturbed
4by the management agreement with the private manager for the
5management of the Lottery.
6 (d) The management agreement with the private manager shall
7include all of the following:
8 (1) A term not to exceed 10 years, including any
9 renewals.
10 (2) A provision specifying that the Department:
11 (A) shall exercise actual control over all
12 significant business decisions;
13 (A-5) has the authority to direct or countermand
14 operating decisions by the private manager at any time;
15 (B) has ready access at any time to information
16 regarding Lottery operations;
17 (C) has the right to demand and receive information
18 from the private manager concerning any aspect of the
19 Lottery operations at any time; and
20 (D) retains ownership of all trade names,
21 trademarks, and intellectual property associated with
22 the Lottery.
23 (3) A provision imposing an affirmative duty on the
24 private manager to provide the Department with material
25 information and with any information the private manager
26 reasonably believes the Department would want to know to

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1 enable the Department to conduct the Lottery.
2 (4) A provision requiring the private manager to
3 provide the Department with advance notice of any operating
4 decision that bears significantly on the public interest,
5 including, but not limited to, decisions on the kinds of
6 games to be offered to the public and decisions affecting
7 the relative risk and reward of the games being offered, so
8 the Department has a reasonable opportunity to evaluate and
9 countermand that decision.
10 (5) A provision providing for compensation of the
11 private manager that may consist of, among other things, a
12 fee for services and a performance based bonus as
13 consideration for managing the Lottery, including terms
14 that may provide the private manager with an increase in
15 compensation if Lottery revenues grow by a specified
16 percentage in a given year.
17 (6) (Blank).
18 (7) A provision requiring the deposit of all Lottery
19 proceeds to be deposited into the State Lottery Fund except
20 as otherwise provided in Section 20 of this Act.
21 (8) A provision requiring the private manager to locate
22 its principal office within the State.
23 (8-5) A provision encouraging that at least 20% of the
24 cost of contracts entered into for goods and services by
25 the private manager in connection with its management of
26 the Lottery, other than contracts with sales agents or

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1 technical advisors, be awarded to businesses that are a
2 minority-owned minority owned business, a women-owned
3 female owned business, or a business owned by a person with
4 disability, as those terms are defined in the Business
5 Enterprise for Minorities, Women Females, and Persons with
6 Disabilities Act.
7 (9) A requirement that so long as the private manager
8 complies with all the conditions of the agreement under the
9 oversight of the Department, the private manager shall have
10 the following duties and obligations with respect to the
11 management of the Lottery:
12 (A) The right to use equipment and other assets
13 used in the operation of the Lottery.
14 (B) The rights and obligations under contracts
15 with retailers and vendors.
16 (C) The implementation of a comprehensive security
17 program by the private manager.
18 (D) The implementation of a comprehensive system
19 of internal audits.
20 (E) The implementation of a program by the private
21 manager to curb compulsive gambling by persons playing
22 the Lottery.
23 (F) A system for determining (i) the type of
24 Lottery games, (ii) the method of selecting winning
25 tickets, (iii) the manner of payment of prizes to
26 holders of winning tickets, (iv) the frequency of

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1 drawings of winning tickets, (v) the method to be used
2 in selling tickets, (vi) a system for verifying the
3 validity of tickets claimed to be winning tickets,
4 (vii) the basis upon which retailer commissions are
5 established by the manager, and (viii) minimum
6 payouts.
7 (10) A requirement that advertising and promotion must
8 be consistent with Section 7.8a of this Act.
9 (11) A requirement that the private manager market the
10 Lottery to those residents who are new, infrequent, or
11 lapsed players of the Lottery, especially those who are
12 most likely to make regular purchases on the Internet as
13 permitted by law.
14 (12) A code of ethics for the private manager's
15 officers and employees.
16 (13) A requirement that the Department monitor and
17 oversee the private manager's practices and take action
18 that the Department considers appropriate to ensure that
19 the private manager is in compliance with the terms of the
20 management agreement, while allowing the manager, unless
21 specifically prohibited by law or the management
22 agreement, to negotiate and sign its own contracts with
23 vendors.
24 (14) A provision requiring the private manager to
25 periodically file, at least on an annual basis, appropriate
26 financial statements in a form and manner acceptable to the

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1 Department.
2 (15) Cash reserves requirements.
3 (16) Procedural requirements for obtaining the prior
4 approval of the Department when a management agreement or
5 an interest in a management agreement is sold, assigned,
6 transferred, or pledged as collateral to secure financing.
7 (17) Grounds for the termination of the management
8 agreement by the Department or the private manager.
9 (18) Procedures for amendment of the agreement.
10 (19) A provision requiring the private manager to
11 engage in an open and competitive bidding process for any
12 procurement having a cost in excess of $50,000 that is not
13 a part of the private manager's final offer. The process
14 shall favor the selection of a vendor deemed to have
15 submitted a proposal that provides the Lottery with the
16 best overall value. The process shall not be subject to the
17 provisions of the Illinois Procurement Code, unless
18 specifically required by the management agreement.
19 (20) The transition of rights and obligations,
20 including any associated equipment or other assets used in
21 the operation of the Lottery, from the manager to any
22 successor manager of the lottery, including the
23 Department, following the termination of or foreclosure
24 upon the management agreement.
25 (21) Right of use of copyrights, trademarks, and
26 service marks held by the Department in the name of the

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1 State. The agreement must provide that any use of them by
2 the manager shall only be for the purpose of fulfilling its
3 obligations under the management agreement during the term
4 of the agreement.
5 (22) The disclosure of any information requested by the
6 Department to enable it to comply with the reporting
7 requirements and information requests provided for under
8 subsection (p) of this Section.
9 (e) Notwithstanding any other law to the contrary, the
10Department shall select a private manager through a competitive
11request for qualifications process consistent with Section
1220-35 of the Illinois Procurement Code, which shall take into
13account:
14 (1) the offeror's ability to market the Lottery to
15 those residents who are new, infrequent, or lapsed players
16 of the Lottery, especially those who are most likely to
17 make regular purchases on the Internet;
18 (2) the offeror's ability to address the State's
19 concern with the social effects of gambling on those who
20 can least afford to do so;
21 (3) the offeror's ability to provide the most
22 successful management of the Lottery for the benefit of the
23 people of the State based on current and past business
24 practices or plans of the offeror; and
25 (4) the offeror's poor or inadequate past performance
26 in servicing, equipping, operating or managing a lottery on

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1 behalf of Illinois, another State or foreign government and
2 attracting persons who are not currently regular players of
3 a lottery.
4 (f) The Department may retain the services of an advisor or
5advisors with significant experience in financial services or
6the management, operation, and procurement of goods, services,
7and equipment for a government-run lottery to assist in the
8preparation of the terms of the request for qualifications and
9selection of the private manager. Any prospective advisor
10seeking to provide services under this subsection (f) shall
11disclose any material business or financial relationship
12during the past 3 years with any potential offeror, or with a
13contractor or subcontractor presently providing goods,
14services, or equipment to the Department to support the
15Lottery. The Department shall evaluate the material business or
16financial relationship of each prospective advisor. The
17Department shall not select any prospective advisor with a
18substantial business or financial relationship that the
19Department deems to impair the objectivity of the services to
20be provided by the prospective advisor. During the course of
21the advisor's engagement by the Department, and for a period of
22one year thereafter, the advisor shall not enter into any
23business or financial relationship with any offeror or any
24vendor identified to assist an offeror in performing its
25obligations under the management agreement. Any advisor
26retained by the Department shall be disqualified from being an

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1offeror. The Department shall not include terms in the request
2for qualifications that provide a material advantage whether
3directly or indirectly to any potential offeror, or any
4contractor or subcontractor presently providing goods,
5services, or equipment to the Department to support the
6Lottery, including terms contained in previous responses to
7requests for proposals or qualifications submitted to
8Illinois, another State or foreign government when those terms
9are uniquely associated with a particular potential offeror,
10contractor, or subcontractor. The request for proposals
11offered by the Department on December 22, 2008 as
12"LOT08GAMESYS" and reference number "22016176" is declared
13void.
14 (g) The Department shall select at least 2 offerors as
15finalists to potentially serve as the private manager no later
16than August 9, 2010. Upon making preliminary selections, the
17Department shall schedule a public hearing on the finalists'
18proposals and provide public notice of the hearing at least 7
19calendar days before the hearing. The notice must include all
20of the following:
21 (1) The date, time, and place of the hearing.
22 (2) The subject matter of the hearing.
23 (3) A brief description of the management agreement to
24 be awarded.
25 (4) The identity of the offerors that have been
26 selected as finalists to serve as the private manager.

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1 (5) The address and telephone number of the Department.
2 (h) At the public hearing, the Department shall (i) provide
3sufficient time for each finalist to present and explain its
4proposal to the Department and the Governor or the Governor's
5designee, including an opportunity to respond to questions
6posed by the Department, Governor, or designee and (ii) allow
7the public and non-selected offerors to comment on the
8presentations. The Governor or a designee shall attend the
9public hearing. After the public hearing, the Department shall
10have 14 calendar days to recommend to the Governor whether a
11management agreement should be entered into with a particular
12finalist. After reviewing the Department's recommendation, the
13Governor may accept or reject the Department's recommendation,
14and shall select a final offeror as the private manager by
15publication of a notice in the Illinois Procurement Bulletin on
16or before September 15, 2010. The Governor shall include in the
17notice a detailed explanation and the reasons why the final
18offeror is superior to other offerors and will provide
19management services in a manner that best achieves the
20objectives of this Section. The Governor shall also sign the
21management agreement with the private manager.
22 (i) Any action to contest the private manager selected by
23the Governor under this Section must be brought within 7
24calendar days after the publication of the notice of the
25designation of the private manager as provided in subsection
26(h) of this Section.

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1 (j) The Lottery shall remain, for so long as a private
2manager manages the Lottery in accordance with provisions of
3this Act, a Lottery conducted by the State, and the State shall
4not be authorized to sell or transfer the Lottery to a third
5party.
6 (k) Any tangible personal property used exclusively in
7connection with the lottery that is owned by the Department and
8leased to the private manager shall be owned by the Department
9in the name of the State and shall be considered to be public
10property devoted to an essential public and governmental
11function.
12 (l) The Department may exercise any of its powers under
13this Section or any other law as necessary or desirable for the
14execution of the Department's powers under this Section.
15 (m) Neither this Section nor any management agreement
16entered into under this Section prohibits the General Assembly
17from authorizing forms of gambling that are not in direct
18competition with the Lottery.
19 (n) The private manager shall be subject to a complete
20investigation in the third, seventh, and tenth years of the
21agreement (if the agreement is for a 10-year term) by the
22Department in cooperation with the Auditor General to determine
23whether the private manager has complied with this Section and
24the management agreement. The private manager shall bear the
25cost of an investigation or reinvestigation of the private
26manager under this subsection.

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1 (o) The powers conferred by this Section are in addition
2and supplemental to the powers conferred by any other law. If
3any other law or rule is inconsistent with this Section,
4including, but not limited to, provisions of the Illinois
5Procurement Code, then this Section controls as to any
6management agreement entered into under this Section. This
7Section and any rules adopted under this Section contain full
8and complete authority for a management agreement between the
9Department and a private manager. No law, procedure,
10proceeding, publication, notice, consent, approval, order, or
11act by the Department or any other officer, Department, agency,
12or instrumentality of the State or any political subdivision is
13required for the Department to enter into a management
14agreement under this Section. This Section contains full and
15complete authority for the Department to approve any contracts
16entered into by a private manager with a vendor providing
17goods, services, or both goods and services to the private
18manager under the terms of the management agreement, including
19subcontractors of such vendors.
20 Upon receipt of a written request from the Chief
21Procurement Officer, the Department shall provide to the Chief
22Procurement Officer a complete and un-redacted copy of the
23management agreement or any contract that is subject to the
24Department's approval authority under this subsection (o). The
25Department shall provide a copy of the agreement or contract to
26the Chief Procurement Officer in the time specified by the

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1Chief Procurement Officer in his or her written request, but no
2later than 5 business days after the request is received by the
3Department. The Chief Procurement Officer must retain any
4portions of the management agreement or of any contract
5designated by the Department as confidential, proprietary, or
6trade secret information in complete confidence pursuant to
7subsection (g) of Section 7 of the Freedom of Information Act.
8The Department shall also provide the Chief Procurement Officer
9with reasonable advance written notice of any contract that is
10pending Department approval.
11 Notwithstanding any other provision of this Section to the
12contrary, the Chief Procurement Officer shall adopt
13administrative rules, including emergency rules, to establish
14a procurement process to select a successor private manager if
15a private management agreement has been terminated. The
16selection process shall at a minimum take into account the
17criteria set forth in items (1) through (4) of subsection (e)
18of this Section and may include provisions consistent with
19subsections (f), (g), (h), and (i) of this Section. The Chief
20Procurement Officer shall also implement and administer the
21adopted selection process upon the termination of a private
22management agreement. The Department, after the Chief
23Procurement Officer certifies that the procurement process has
24been followed in accordance with the rules adopted under this
25subsection (o), shall select a final offeror as the private
26manager and sign the management agreement with the private

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1manager.
2 Except as provided in Sections 21.5, 21.6, 21.7, 21.8, and
321.9, the Department shall distribute all proceeds of lottery
4tickets and shares sold in the following priority and manner:
5 (1) The payment of prizes and retailer bonuses.
6 (2) The payment of costs incurred in the operation and
7 administration of the Lottery, including the payment of
8 sums due to the private manager under the management
9 agreement with the Department.
10 (3) On the last day of each month or as soon thereafter
11 as possible, the State Comptroller shall direct and the
12 State Treasurer shall transfer from the State Lottery Fund
13 to the Common School Fund an amount that is equal to the
14 proceeds transferred in the corresponding month of fiscal
15 year 2009, as adjusted for inflation, to the Common School
16 Fund.
17 (4) On or before the last day of each fiscal year,
18 deposit any remaining proceeds, subject to payments under
19 items (1), (2), and (3) into the Capital Projects Fund each
20 fiscal year.
21 (p) The Department shall be subject to the following
22reporting and information request requirements:
23 (1) the Department shall submit written quarterly
24 reports to the Governor and the General Assembly on the
25 activities and actions of the private manager selected
26 under this Section;

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1 (2) upon request of the Chief Procurement Officer, the
2 Department shall promptly produce information related to
3 the procurement activities of the Department and the
4 private manager requested by the Chief Procurement
5 Officer; the Chief Procurement Officer must retain
6 confidential, proprietary, or trade secret information
7 designated by the Department in complete confidence
8 pursuant to subsection (g) of Section 7 of the Freedom of
9 Information Act; and
10 (3) at least 30 days prior to the beginning of the
11 Department's fiscal year, the Department shall prepare an
12 annual written report on the activities of the private
13 manager selected under this Section and deliver that report
14 to the Governor and General Assembly.
15(Source: P.A. 98-463, eff. 8-16-13; 98-649, eff. 6-16-14;
1699-933, eff. 1-27-17.)
17 Section 20. The Department of Transportation Law of the
18Civil Administrative Code of Illinois is amended by changing
19Sections 2705-585 and 2705-600 as follows:
20 (20 ILCS 2705/2705-585)
21 Sec. 2705-585. Diversity goals.
22 (a) To the extent permitted by any applicable federal law
23or regulation, all State construction projects funded from
24amounts (i) made available under the Governor's Fiscal Year

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12009 supplemental budget or the American Recovery and
2Reinvestment Act of 2009 and (ii) that are appropriated to the
3Illinois Department of Transportation shall comply with the
4Business Enterprise for Minorities, Women Females, and Persons
5with Disabilities Act.
6 (b) The Illinois Department of Transportation shall
7appoint representatives to professional and artistic services
8selection committees representative of the State's ethnic,
9cultural, and geographic diversity, including, but not limited
10to, at least one person from each of the following: an
11association representing the interests of African American
12business owners, an association representing the interests of
13Latino business owners, and an association representing the
14interests of women business owners. These committees shall
15comply with all requirements of the Open Meetings Act.
16(Source: P.A. 96-8, eff. 4-28-09.)
17 (20 ILCS 2705/2705-600)
18 (Section scheduled to be repealed on June 30, 2017)
19 Sec. 2705-600. Target market program. In order to remedy
20particular incidents and patterns of egregious race or gender
21discrimination, the chief procurement officer, in consultation
22with the Department, shall have the power to implement a target
23market program incorporating the following terms:
24 (0.5) Each fiscal year, the Department shall review any
25 and all evidence of discrimination related to

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1 transportation construction projects. Evidence of
2 discrimination may include, but is not limited to: (i) the
3 determination of the Department's utilization of
4 minority-owned and women-owned female-owned firms in its
5 prime contracts and associated subcontracts; (ii) the
6 availability of minority-owned and women-owned
7 female-owned firms in the Department's geographic market
8 areas and specific construction industry markets; (iii)
9 any disparities between the utilization of minority-owned
10 and women-owned female-owned firms in the Department's
11 markets and the utilization of those firms on the
12 Department's prime contracts and subcontracts in those
13 markets; (iv) any disparities between the utilization of
14 minority-owned and women-owned female-owned firms in the
15 overall construction markets in which the Department
16 purchases and the utilization of those firms in the overall
17 construction economy in which the Department operates; (v)
18 evidence of discrimination in the rates at which
19 minority-owned and women-owned female-owned firms in the
20 Department's markets form businesses compared to similar
21 non-minority-owned and non-women-owned non-female-owned
22 firms in the Department's markets and in the dollars earned
23 by such businesses; and (vi) quantitative and qualitative
24 anecdotal evidence of discrimination. If after reviewing
25 such evidence, the Department finds and the chief
26 procurement officer concurs in the findings that the

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1 Department has a strong basis in evidence that it has a
2 compelling interest in remedying the identified
3 discrimination against a specific group, race, or gender,
4 and that the only remedy for such discrimination is a
5 narrowly tailored target market, the chief procurement
6 officer, in consultation with the Department, has the power
7 to establish and implement a target market program tailored
8 to address the specific findings of egregious
9 discrimination made by the Department, after a public
10 hearing at which minority, women female, and general
11 contractor groups, community organizations, and other
12 interested parties shall have the opportunity to provide
13 comments.
14 (1) In January of each year, the Department and the
15 chief procurement officer shall report jointly to the
16 General Assembly the results of any evidentiary inquiries
17 or studies that establish the Department's compelling
18 interest in remedying egregious discrimination based upon
19 strong evidence of the need for a narrowly tailored target
20 market to remedy such discrimination and public hearings
21 held pursuant to this Section, and shall report the actions
22 to be taken to address the findings, including, if
23 warranted, the establishment and implementation of any
24 target market initiatives.
25 (2) The chief procurement officer shall work with the
26 officers and divisions of the Department to determine the

SB0262 Engrossed- 24 -LRB100 05183 HLH 15193 b
1 appropriate designation of contracts as target market
2 contracts. The chief procurement officer, in consultation
3 with the Department, shall determine appropriate contract
4 formation and bidding procedures for target market
5 contracts, including, but not limited to, the dividing of
6 procurements so designated into contract award units in
7 order to facilitate offers or bids from minority-owned
8 businesses and women-owned female-owned businesses and the
9 removal of bid bond requirements for minority-owned
10 businesses and women-owned female-owned businesses.
11 Minority-owned businesses and women-owned female-owned
12 businesses shall remain eligible to seek the procurement
13 award of contracts that have not been designated as target
14 market contracts.
15 (3) The chief procurement officer may make
16 participation in the target market program dependent upon
17 submission to stricter compliance audits than are
18 generally applicable. No contract shall be eligible for
19 inclusion in the target market program unless the
20 Department determines that there are at least 3
21 minority-owned businesses or women-owned female-owned
22 businesses interested in participating in that type of
23 contract. The Department, with the concurrence of the chief
24 procurement officer, may develop guidelines to regulate
25 the level of participation of individual minority-owned
26 businesses and women-owned female-owned businesses in the

SB0262 Engrossed- 25 -LRB100 05183 HLH 15193 b
1 target market program in order to prevent the domination of
2 the target market program by a small number of those
3 entities. The Department may require minority-owned
4 businesses and women-owned female-owned businesses to
5 participate in training programs offered by the Department
6 or other State agencies as a condition precedent to
7 participation in the target market program.
8 (4) Participation in the target market program shall be
9 limited to minority-owned businesses and women-owned
10 female-owned businesses and joint ventures consisting
11 exclusively of minority-owned businesses, women-owned
12 female-owned businesses, or both, that are certified as
13 disadvantaged businesses pursuant to the provisions of
14 Section 6(d) of the Business Enterprise for Minorities,
15 Women Females, and Persons with Disabilities Act. A firm
16 awarded a target market contract may subcontract up to 50%
17 of the dollar value of the target market contract to
18 subcontractors who are not minority-owned businesses or
19 women-owned female-owned businesses.
20 (5) The Department may include in the target market
21 program contracts that are funded by the federal government
22 to the extent allowed by federal law and may vary the
23 standards of eligibility of the target market program to
24 the extent necessary to comply with the federal funding
25 requirements.
26 (6) If no satisfactory bid or response is received with

SB0262 Engrossed- 26 -LRB100 05183 HLH 15193 b
1 respect to a contract that has been designated as part of
2 the target market program, the chief procurement officer,
3 in consultation with the Department, may delete that
4 contract from the target market program. In addition, the
5 chief procurement officer, in consultation with the
6 Department, may thereupon designate and set aside for the
7 target market program additional contracts corresponding
8 in approximate value to the contract that was deleted from
9 the target market program, in keeping with the narrowly
10 tailored process used for selecting contracts suitable for
11 the program and to the extent feasible.
12 (7) The chief procurement officer, in consultation
13 with the Department, shall promulgate such rules as he or
14 she deems necessary to administer the target market
15 program.
16 If any part, sentence, or clause of this Section is for any
17reason held invalid or to be unconstitutional, such decision
18shall not affect the validity of the remaining portions of this
19Section.
20 This Section is repealed on June 30, 2017.
21(Source: P.A. 97-228, eff. 7-28-11; 98-670, eff. 6-27-14.)
22 Section 25. The Capital Development Board Act is amended by
23changing Section 16 as follows:
24 (20 ILCS 3105/16) (from Ch. 127, par. 783b)

SB0262 Engrossed- 27 -LRB100 05183 HLH 15193 b
1 Sec. 16. (a) In addition to any other power granted in this
2Act to adopt rules or regulations, the Board may adopt
3regulations or rules relating to the issuance or renewal of the
4prequalification of an architect, engineer or contractor or the
5suspension or modification of the prequalification of any such
6person or entity including, without limitation, an interim or
7emergency suspension or modification without a hearing founded
8on any one or more of the bases set forth in this Section.
9 (b) Among the bases for an interim or emergency suspension
10or modification of prequalification are:
11 (1) A finding by the Board that the public interest,
12 safety or welfare requires a summary suspension or
13 modification of a prequalification without hearings.
14 (2) The occurrence of an event or series of events
15 which, in the Board's opinion, warrants a summary
16 suspension or modification of a prequalification without a
17 hearing including, without limitation, (i) the indictment
18 of the holder of the prequalification by a State or federal
19 agency or other branch of government for a crime; (ii) the
20 suspension or modification of a license or
21 prequalification by another State agency or federal agency
22 or other branch of government after hearings; (iii) a
23 material breach of a contract made between the Board and an
24 architect, engineer or contractor; and (iv) the failure to
25 comply with State law including, without limitation, the
26 Business Enterprise for Minorities, Women Females, and

SB0262 Engrossed- 28 -LRB100 05183 HLH 15193 b
1 Persons with Disabilities Act, the prevailing wage
2 requirements, and the Steel Products Procurement Act.
3 (c) If a prequalification is suspended or modified by the
4Board without hearings for any reason set forth in this Section
5or in Section 10-65 of the Illinois Administrative Procedure
6Act, as amended, the Board shall within 30 days of the issuance
7of an order of suspension or modification of a prequalification
8initiate proceedings for the suspension or modification of or
9other action upon the prequalification.
10(Source: P.A. 92-16, eff. 6-28-01.)
11 Section 30. The Illinois Health Information Exchange and
12Technology Act is amended by changing Section 20 as follows:
13 (20 ILCS 3860/20)
14 (Section scheduled to be repealed on January 1, 2021)
15 Sec. 20. Powers and duties of the Illinois Health
16Information Exchange Authority. The Authority has the
17following powers, together with all powers incidental or
18necessary to accomplish the purposes of this Act:
19 (1) The Authority shall create and administer the ILHIE
20 using information systems and processes that are secure,
21 are cost effective, and meet all other relevant privacy and
22 security requirements under State and federal law.
23 (2) The Authority shall establish and adopt standards
24 and requirements for the use of health information and the

SB0262 Engrossed- 29 -LRB100 05183 HLH 15193 b
1 requirements for participation in the ILHIE by persons or
2 entities including, but not limited to, health care
3 providers, payors, and local health information exchanges.
4 (3) The Authority shall establish minimum standards
5 for accessing the ILHIE to ensure that the appropriate
6 security and privacy protections apply to health
7 information, consistent with applicable federal and State
8 standards and laws. The Authority shall have the power to
9 suspend, limit, or terminate the right to participate in
10 the ILHIE for non-compliance or failure to act, with
11 respect to applicable standards and laws, in the best
12 interests of patients, users of the ILHIE, or the public.
13 The Authority may seek all remedies allowed by law to
14 address any violation of the terms of participation in the
15 ILHIE.
16 (4) The Authority shall identify barriers to the
17 adoption of electronic health records systems, including
18 researching the rates and patterns of dissemination and use
19 of electronic health record systems throughout the State.
20 The Authority shall make the results of the research
21 available on its website.
22 (5) The Authority shall prepare educational materials
23 and educate the general public on the benefits of
24 electronic health records, the ILHIE, and the safeguards
25 available to prevent unauthorized disclosure of health
26 information.

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1 (6) The Authority may appoint or designate an
2 institutional review board in accordance with federal and
3 State law to review and approve requests for research in
4 order to ensure compliance with standards and patient
5 privacy and security protections as specified in paragraph
6 (3) of this Section.
7 (7) The Authority may enter into all contracts and
8 agreements necessary or incidental to the performance of
9 its powers under this Act. The Authority's expenditures of
10 private funds are exempt from the Illinois Procurement
11 Code, pursuant to Section 1-10 of that Act. Notwithstanding
12 this exception, the Authority shall comply with the
13 Business Enterprise for Minorities, Women Females, and
14 Persons with Disabilities Act.
15 (8) The Authority may solicit and accept grants, loans,
16 contributions, or appropriations from any public or
17 private source and may expend those moneys, through
18 contracts, grants, loans, or agreements, on activities it
19 considers suitable to the performance of its duties under
20 this Act.
21 (9) The Authority may determine, charge, and collect
22 any fees, charges, costs, and expenses from any healthcare
23 provider or entity in connection with its duties under this
24 Act. Moneys collected under this paragraph (9) shall be
25 deposited into the Health Information Exchange Fund.
26 (10) The Authority may, under the direction of the

SB0262 Engrossed- 31 -LRB100 05183 HLH 15193 b
1 Executive Director, employ and discharge staff, including
2 administrative, technical, expert, professional, and legal
3 staff, as is necessary or convenient to carry out the
4 purposes of this Act. The Authority may establish and
5 administer standards of classification regarding
6 compensation, benefits, duties, performance, and tenure
7 for that staff and may enter into contracts of employment
8 with members of that staff for such periods and on such
9 terms as the Authority deems desirable. All employees of
10 the Authority are exempt from the Personnel Code as
11 provided by Section 4 of the Personnel Code.
12 (11) The Authority shall consult and coordinate with
13 the Department of Public Health to further the Authority's
14 collection of health information from health care
15 providers for public health purposes. The collection of
16 public health information shall include identifiable
17 information for use by the Authority or other State
18 agencies to comply with State and federal laws. Any
19 identifiable information so collected shall be privileged
20 and confidential in accordance with Sections 8-2101,
21 8-2102, 8-2103, 8-2104, and 8-2105 of the Code of Civil
22 Procedure.
23 (12) All identified or deidentified health information
24 in the form of health data or medical records contained in,
25 stored in, submitted to, transferred by, or released from
26 the Illinois Health Information Exchange, and identified

SB0262 Engrossed- 32 -LRB100 05183 HLH 15193 b
1 or deidentified health information in the form of health
2 data and medical records of the Illinois Health Information
3 Exchange in the possession of the Illinois Health
4 Information Exchange Authority due to its administration
5 of the Illinois Health Information Exchange, shall be
6 exempt from inspection and copying under the Freedom of
7 Information Act. The terms "identified" and "deidentified"
8 shall be given the same meaning as in the Health Insurance
9 Portability and Accountability Act of 1996, Public Law
10 104-191, or any subsequent amendments thereto, and any
11 regulations promulgated thereunder.
12 (13) To address gaps in the adoption of, workforce
13 preparation for, and exchange of electronic health records
14 that result in regional and socioeconomic disparities in
15 the delivery of care, the Authority may evaluate such gaps
16 and provide resources as available, giving priority to
17 healthcare providers serving a significant percentage of
18 Medicaid or uninsured patients and in medically
19 underserved or rural areas.
20(Source: P.A. 99-642, eff. 7-28-16.)
21 Section 35. The Illinois Global Partnership Act is amended
22by changing Section 20 as follows:
23 (20 ILCS 3948/20)
24 Sec. 20. Board of directors. IGP shall be governed by a

SB0262 Engrossed- 33 -LRB100 05183 HLH 15193 b
1board of directors. The IGP board of directors shall consist of
214 members. Five of the members shall be voting members
3appointed by the Governor with the advice and consent of the
4Senate. The Speaker and Minority Leader of the House of
5Representatives, the President and Minority Leader of the
6Senate, the Lieutenant Governor, the Director of Agriculture,
7the Director of Commerce and Economic Opportunity, the
8Chairperson of the Illinois Arts Council, and the Director of
9the Illinois Finance Authority, or the designee of each, shall
10be non-voting ex officio members.
11 Of the members appointed by the Governor, one member must
12have a background in agriculture, one member must have a
13background in manufacturing, and one member must have a
14background in international business relations.
15 Of the initial members appointed by the Governor, 3 members
16shall serve 4-year terms and 2 members shall serve 2-year terms
17as designated by the Governor. Thereafter, members appointed by
18the Governor shall serve 4-year terms. A vacancy among members
19appointed by the Governor shall be filled by appointment by the
20Governor for the remainder of the vacated term.
21 Members of the board shall receive no compensation but
22shall be reimbursed for expenses incurred in the performance of
23their duties.
24 The Governor shall designate the chairman of the board
25until a successor is designated. The board shall meet at the
26call of the chair.

SB0262 Engrossed- 34 -LRB100 05183 HLH 15193 b
1 No less than 90 days after a majority of the members of the
2board of directors of the IGP is appointed by the Governor, the
3board shall develop a policy adopted by resolution of the board
4stating the board's plan for the use of services provided by
5businesses owned by minorities, women females, and persons with
6disabilities, as defined under the Business Enterprise for
7Minorities, Women Females, and Persons with Disabilities Act.
8The board shall provide a copy of this resolution to the
9Governor and the General Assembly upon its adoption.
10 On December 31 of each year, the board shall report to the
11General Assembly and the Governor regarding the use of services
12provided by businesses owned by minorities, women females, and
13persons with disabilities, as defined under the Business
14Enterprise for Minorities, Women Females, and Persons with
15Disabilities Act.
16(Source: P.A. 94-388, eff. 7-29-05.)
17 Section 40. The State Finance Act is amended by changing
18Sections 8.32 and 45 as follows:
19 (30 ILCS 105/8.32) (from Ch. 127, par. 144.32)
20 Sec. 8.32. All moneys received by the Minority and Women
21Female Business Enterprise Council, or by the Department of
22Central Management Services on behalf of the Council or the
23Department's Minority and Female Business Enterprise for
24Minorities, Women, and Persons with Disabilities Division,

SB0262 Engrossed- 35 -LRB100 05183 HLH 15193 b
1from grants, donations, seminar registration fees, and the sale
2of directories, lists and other such information, shall be
3deposited into the Minority and Female Business Enterprise Fund
4in the State treasury. Expenses of the Council or the
5Department's Minority and Female Business Enterprise for
6Minorities, Women, and Persons with Disabilities Division may
7be paid from this Fund.
8(Source: P.A. 86-1482.)
9 (30 ILCS 105/45)
10 Sec. 45. Award of capital funds. Each award by grant or
11loan of State funds of $250,000 or more for capital
12construction costs or professional services is conditioned
13upon the recipient's written certification that the recipient
14shall comply with the business enterprise program practices for
15minority-owned businesses, women-owned female-owned
16businesses, and businesses owned by persons with disabilities
17of the Business Enterprise for Minorities, Women Females, and
18Persons with Disabilities Act (30 ILCS 575/) and the equal
19employment practices of Section 2-105 of the Illinois Human
20Rights Act (775 ILCS 5/2-105). This Section, however, does not
21apply to any grant or loan (i) for which a grant or loan
22agreement was executed before the effective date of this
23amendatory Act of the 96th General Assembly, (ii) for which
24prior-incurred costs are being reimbursed, or (iii) for a
25federally funded program under which the requirement of this

SB0262 Engrossed- 36 -LRB100 05183 HLH 15193 b
1Section would contravene federal law. Each recipient shall
2submit the written certification and business enterprise
3program plan for minority-owned businesses, women-owned
4female-owned businesses, and businesses owned by persons with
5disabilities before signing the relevant grant or loan
6agreement. Each grant or loan agreement shall include a
7provision that the grant or loan recipient agrees to comply
8with the provisions of the Business Enterprise for Minorities,
9Women Females, and Persons with Disabilities Act (30 ILCS 575/)
10and the equal employment practices of Section 2-105 of the
11Illinois Human Rights Act (775 ILCS 5/2-105).
12 Each business enterprise program plan shall apply only to
13the State-funded portion of the relevant capital project and
14must be in compliance with all certification and other
15requirements of the Business Enterprise for Minorities, Women
16Females, and Persons with Disabilities Act.
17(Source: P.A. 96-1064, eff. 7-16-10.)
18 Section 45. The General Obligation Bond Act is amended by
19changing Sections 8 and 15.5 as follows:
20 (30 ILCS 330/8) (from Ch. 127, par. 658)
21 Sec. 8. Bond sale expenses.
22 (a) An amount not to exceed 0.5 percent of the principal
23amount of the proceeds of sale of each bond sale is authorized
24to be used to pay the reasonable costs of issuance and sale,

SB0262 Engrossed- 37 -LRB100 05183 HLH 15193 b
1including, without limitation, underwriter's discounts and
2fees, but excluding bond insurance, of State of Illinois
3general obligation bonds authorized and sold pursuant to this
4Act, provided that no salaries of State employees or other
5State office operating expenses shall be paid out of
6non-appropriated proceeds, provided further that the percent
7shall be 1.0% for each sale of "Build America Bonds" or
8"Qualified School Construction Bonds" as defined in
9subsections (d) and (e) of Section 9, respectively. The
10Governor's Office of Management and Budget shall compile a
11summary of all costs of issuance on each sale (including both
12costs paid out of proceeds and those paid out of appropriated
13funds) and post that summary on its web site within 20 business
14days after the issuance of the Bonds. The summary shall
15include, as applicable, the respective percentages of
16participation and compensation of each underwriter that is a
17member of the underwriting syndicate, legal counsel, financial
18advisors, and other professionals for the bond issue and an
19identification of all costs of issuance paid to minority-owned
20minority owned businesses, women-owned female owned
21businesses, and businesses owned by persons with disabilities.
22The terms "minority-owned minority owned businesses",
23"women-owned female owned businesses", and "business owned by a
24person with a disability" have the meanings given to those
25terms in the Business Enterprise for Minorities, Women Females,
26and Persons with Disabilities Act. That posting shall be

SB0262 Engrossed- 38 -LRB100 05183 HLH 15193 b
1maintained on the web site for a period of at least 30 days. In
2addition, the Governor's Office of Management and Budget shall
3provide a written copy of each summary of costs to the Speaker
4and Minority Leader of the House of Representatives, the
5President and Minority Leader of the Senate, and the Commission
6on Government Forecasting and Accountability within 20
7business days after each issuance of the Bonds. In addition,
8the Governor's Office of Management and Budget shall provide
9copies of all contracts under which any costs of issuance are
10paid or to be paid to the Commission on Government Forecasting
11and Accountability within 20 business days after the issuance
12of Bonds for which those costs are paid or to be paid. Instead
13of filing a second or subsequent copy of the same contract, the
14Governor's Office of Management and Budget may file a statement
15that specified costs are paid under specified contracts filed
16earlier with the Commission.
17 (b) The Director of the Governor's Office of Management and
18Budget shall not, in connection with the issuance of Bonds,
19contract with any underwriter, financial advisor, or attorney
20unless that underwriter, financial advisor, or attorney
21certifies that the underwriter, financial advisor, or attorney
22has not and will not pay a contingent fee, whether directly or
23indirectly, to a third party for having promoted the selection
24of the underwriter, financial advisor, or attorney for that
25contract. In the event that the Governor's Office of Management
26and Budget determines that an underwriter, financial advisor,

SB0262 Engrossed- 39 -LRB100 05183 HLH 15193 b
1or attorney has filed a false certification with respect to the
2payment of contingent fees, the Governor's Office of Management
3and Budget shall not contract with that underwriter, financial
4advisor, or attorney, or with any firm employing any person who
5signed false certifications, for a period of 2 calendar years,
6beginning with the date the determination is made. The validity
7of Bonds issued under such circumstances of violation pursuant
8to this Section shall not be affected.
9(Source: P.A. 96-828, eff. 12-2-09.)
10 (30 ILCS 330/15.5)
11 Sec. 15.5. Compliance with the Business Enterprise for
12Minorities, Women Females, and Persons with Disabilities Act.
13Notwithstanding any other provision of law, the Governor's
14Office of Management and Budget shall comply with the Business
15Enterprise for Minorities, Women Females, and Persons with
16Disabilities Act.
17(Source: P.A. 93-839, eff. 7-30-04.)
18 Section 50. The Build Illinois Bond Act is amended by
19changing Sections 5 and 8.3 as follows:
20 (30 ILCS 425/5) (from Ch. 127, par. 2805)
21 Sec. 5. Bond Sale Expenses.
22 (a) An amount not to exceed 0.5% of the principal amount of
23the proceeds of the sale of each bond sale is authorized to be

SB0262 Engrossed- 40 -LRB100 05183 HLH 15193 b
1used to pay reasonable costs of each issuance and sale of Bonds
2authorized and sold pursuant to this Act, including, without
3limitation, underwriter's discounts and fees, but excluding
4bond insurance, advertising, printing, bond rating, travel of
5outside vendors, security, delivery, legal and financial
6advisory services, initial fees of trustees, registrars,
7paying agents and other fiduciaries, initial costs of credit or
8liquidity enhancement arrangements, initial fees of indexing
9and remarketing agents, and initial costs of interest rate
10swaps, guarantees or arrangements to limit interest rate risk,
11as determined in the related Bond Sale Order, from the proceeds
12of each Bond sale, provided that no salaries of State employees
13or other State office operating expenses shall be paid out of
14non-appropriated proceeds, and provided further that the
15percent shall be 1.0% for each sale of "Build America Bonds" as
16defined in subsection (c) of Section 6. The Governor's Office
17of Management and Budget shall compile a summary of all costs
18of issuance on each sale (including both costs paid out of
19proceeds and those paid out of appropriated funds) and post
20that summary on its web site within 20 business days after the
21issuance of the bonds. That posting shall be maintained on the
22web site for a period of at least 30 days. In addition, the
23Governor's Office of Management and Budget shall provide a
24written copy of each summary of costs to the Speaker and
25Minority Leader of the House of Representatives, the President
26and Minority Leader of the Senate, and the Commission on

SB0262 Engrossed- 41 -LRB100 05183 HLH 15193 b
1Government Forecasting and Accountability within 20 business
2days after each issuance of the bonds. This summary shall
3include, as applicable, the respective percentage of
4participation and compensation of each underwriter that is a
5member of the underwriting syndicate, legal counsel, financial
6advisors, and other professionals for the Bond issue, and an
7identification of all costs of issuance paid to minority-owned
8minority owned businesses, women-owned female owned
9businesses, and businesses owned by persons with disabilities.
10The terms "minority-owned minority owned businesses",
11"women-owned female owned businesses", and "business owned by a
12person with a disability" have the meanings given to those
13terms in the Business Enterprise for Minorities, Women Females,
14and Persons with Disabilities Act. In addition, the Governor's
15Office of Management and Budget shall provide copies of all
16contracts under which any costs of issuance are paid or to be
17paid to the Commission on Government Forecasting and
18Accountability within 20 business days after the issuance of
19Bonds for which those costs are paid or to be paid. Instead of
20filing a second or subsequent copy of the same contract, the
21Governor's Office of Management and Budget may file a statement
22that specified costs are paid under specified contracts filed
23earlier with the Commission.
24 (b) The Director of the Governor's Office of Management and
25Budget shall not, in connection with the issuance of Bonds,
26contract with any underwriter, financial advisor, or attorney

SB0262 Engrossed- 42 -LRB100 05183 HLH 15193 b
1unless that underwriter, financial advisor, or attorney
2certifies that the underwriter, financial advisor, or attorney
3has not and will not pay a contingent fee, whether directly or
4indirectly, to any third party for having promoted the
5selection of the underwriter, financial advisor, or attorney
6for that contract. In the event that the Governor's Office of
7Management and Budget determines that an underwriter,
8financial advisor, or attorney has filed a false certification
9with respect to the payment of contingent fees, the Governor's
10Office of Management and Budget shall not contract with that
11underwriter, financial advisor, or attorney, or with any firm
12employing any person who signed false certifications, for a
13period of 2 calendar years, beginning with the date the
14determination is made. The validity of Bonds issued under such
15circumstances of violation pursuant to this Section shall not
16be affected.
17(Source: P.A. 96-828, eff. 12-2-09.)
18 (30 ILCS 425/8.3)
19 Sec. 8.3. Compliance with the Business Enterprise for
20Minorities, Women Females, and Persons with Disabilities Act.
21Notwithstanding any other provision of law, the Governor's
22Office of Management and Budget shall comply with the Business
23Enterprise for Minorities, Women Females, and Persons with
24Disabilities Act.
25(Source: P.A. 93-839, eff. 7-30-04.)

SB0262 Engrossed- 43 -LRB100 05183 HLH 15193 b
1 Section 55. The Illinois Procurement Code is amended by
2changing Sections 15-25, 30-30, 45-45, 45-57, and 45-65 as
3follows:
4 (30 ILCS 500/15-25)
5 Sec. 15-25. Bulletin content.
6 (a) Invitations for bids. Notice of each and every contract
7that is offered, including renegotiated contracts and change
8orders, shall be published in the Bulletin. All businesses
9listed on the Department of Transportation Disadvantaged
10Business Enterprise Directory, the Department of Central
11Management Services Business Enterprise Program, and the Chief
12Procurement Office's Small Business Vendors Directory shall be
13furnished written instructions and information on how to
14register on each Procurement Bulletin maintained by the State.
15Such information shall be provided to each business within 30
16calendar days after the business' notice of certification. The
17applicable chief procurement officer may provide by rule an
18organized format for the publication of this information, but
19in any case it must include at least the date first offered,
20the date submission of offers is due, the location that offers
21are to be submitted to, the purchasing State agency, the
22responsible State purchasing officer, a brief purchase
23description, the method of source selection, information of how
24to obtain a comprehensive purchase description and any

SB0262 Engrossed- 44 -LRB100 05183 HLH 15193 b
1disclosure and contract forms, and encouragement to potential
2contractors to hire qualified veterans, as defined by Section
345-67 of this Code, and qualified Illinois minorities, women,
4persons with disabilities, and residents discharged from any
5Illinois adult correctional center.
6 (b) Contracts let. Notice of each and every contract that
7is let, including renegotiated contracts and change orders,
8shall be issued electronically to those bidders submitting
9responses to the solicitations, inclusive of the unsuccessful
10bidders, immediately upon contract let. Failure of any chief
11procurement officer to give such notice shall result in tolling
12the time for filing a bid protest up to 7 calendar days.
13 For purposes of this subsection (b), "contracts let" means
14a construction agency's act of advertising an invitation for
15bids for one or more construction projects.
16 (b-5) Contracts awarded. Notice of each and every contract
17that is awarded, including renegotiated contracts and change
18orders, shall be issued electronically to the successful
19responsible bidder, offeror, or contractor and published in the
20next available subsequent Bulletin. The applicable chief
21procurement officer may provide by rule an organized format for
22the publication of this information, but in any case it must
23include at least all of the information specified in subsection
24(a) as well as the name of the successful responsible bidder,
25offeror, the contract price, the number of unsuccessful bidders
26or offerors and any other disclosure specified in any Section

SB0262 Engrossed- 45 -LRB100 05183 HLH 15193 b
1of this Code. This notice must be posted in the online
2electronic Bulletin prior to execution of the contract.
3 For purposes of this subsection (b-5), "contract award"
4means the determination that a particular bidder or offeror has
5been selected from among other bidders or offerors to receive a
6contract, subject to the successful completion of final
7negotiations. "Contract award" is evidenced by the posting of a
8Notice of Award or a Notice of Intent to Award to the
9respective volume of the Illinois Procurement Bulletin.
10 (c) Emergency purchase disclosure. Any chief procurement
11officer or State purchasing officer exercising emergency
12purchase authority under this Code shall publish a written
13description and reasons and the total cost, if known, or an
14estimate if unknown and the name of the responsible chief
15procurement officer and State purchasing officer, and the
16business or person contracted with for all emergency purchases
17in the next timely, practicable Bulletin. This notice must be
18posted in the online electronic Bulletin no later than 5
19calendar days after the contract is awarded. Notice of a
20hearing to extend an emergency contract must be posted in the
21online electronic Procurement Bulletin no later than 14
22calendar days prior to the hearing.
23 (c-5) Business Enterprise Program report. Each purchasing
24agency shall, with the assistance of the applicable chief
25procurement officer, post in the online electronic Bulletin a
26copy of its annual report of utilization of businesses owned by

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1minorities, women females, and persons with disabilities as
2submitted to the Business Enterprise Council for Minorities,
3Women Females, and Persons with Disabilities pursuant to
4Section 6(c) of the Business Enterprise for Minorities, Women
5Females, and Persons with Disabilities Act within 10 calendar
6days after its submission of its report to the Council.
7 (c-10) Renewals. Notice of each contract renewal shall be
8posted in the online electronic Bulletin within 14 calendar
9days of the determination to renew the contract and the next
10available subsequent Bulletin. The notice shall include at
11least all of the information required in subsection (b).
12 (c-15) Sole source procurements. Before entering into a
13sole source contract, a chief procurement officer exercising
14sole source procurement authority under this Code shall publish
15a written description of intent to enter into a sole source
16contract along with a description of the item to be procured
17and the intended sole source contractor. This notice must be
18posted in the online electronic Procurement Bulletin before a
19sole source contract is awarded and at least 14 calendar days
20before the hearing required by Section 20-25.
21 (d) Other required disclosure. The applicable chief
22procurement officer shall provide by rule for the organized
23publication of all other disclosure required in other Sections
24of this Code in a timely manner.
25 (e) The changes to subsections (b), (c), (c-5), (c-10), and
26(c-15) of this Section made by this amendatory Act of the 96th

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1General Assembly apply to reports submitted, offers made, and
2notices on contracts executed on or after its effective date.
3 (f) Each chief procurement officer shall, in consultation
4with the agencies under his or her jurisdiction, provide the
5Procurement Policy Board with the information and resources
6necessary, and in a manner, to effectuate the purpose of this
7amendatory Act of the 96th General Assembly.
8(Source: P.A. 97-895, eff. 8-3-12; 98-1038, eff. 8-25-14;
998-1076, eff. 1-1-15.)
10 (30 ILCS 500/30-30)
11 Sec. 30-30. Design-bid-build construction.
12 (a) The provisions of this subsection are operative through
13December 31, 2019.
14 For building construction contracts in excess of $250,000,
15separate specifications may be prepared for all equipment,
16labor, and materials in connection with the following 5
17subdivisions of the work to be performed:
18 (1) plumbing;
19 (2) heating, piping, refrigeration, and automatic
20 temperature control systems, including the testing and
21 balancing of those systems;
22 (3) ventilating and distribution systems for
23 conditioned air, including the testing and balancing of
24 those systems;
25 (4) electric wiring; and

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1 (5) general contract work.
2 The specifications may be so drawn as to permit separate
3and independent bidding upon each of the 5 subdivisions of
4work. All contracts awarded for any part thereof may award the
55 subdivisions of work separately to responsible and reliable
6persons, firms, or corporations engaged in these classes of
7work. The contracts, at the discretion of the construction
8agency, may be assigned to the successful bidder on the general
9contract work or to the successful bidder on the subdivision of
10work designated by the construction agency before the bidding
11as the prime subdivision of work, provided that all payments
12will be made directly to the contractors for the 5 subdivisions
13of work upon compliance with the conditions of the contract.
14 Beginning on the effective date of this amendatory Act of
15the 99th General Assembly and through December 31, 2019, for
16single prime projects: (i) the bid of the successful low bidder
17shall identify the name of the subcontractor, if any, and the
18bid proposal costs for each of the 5 subdivisions of work set
19forth in this Section; (ii) the contract entered into with the
20successful bidder shall provide that no identified
21subcontractor may be terminated without the written consent of
22the Capital Development Board; (iii) the contract shall comply
23with the disadvantaged business practices of the Business
24Enterprise for Minorities, Women Females, and Persons with
25Disabilities Act and the equal employment practices of Section
262-105 of the Illinois Human Rights Act; (iv) the Capital

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1Development Board shall submit a quarterly report to the
2Procurement Policy Board with information on the general scope,
3project budget, and established Business Enterprise Program
4goals for any single prime procurement bid in the previous 3
5months with a total construction cost valued at $10,000,000 or
6less; and (v) the Capital Development Board shall submit an
7annual report to the General Assembly and Governor on the
8bidding, award, and performance of all single prime projects.
9 For building construction projects with a total
10construction cost valued at $5,000,000 or less, the Capital
11Development Board shall not use the single prime procurement
12delivery method for more than 50% of the total number of
13projects bid for each fiscal year. Any project with a total
14construction cost valued greater than $5,000,000 may be bid
15using single prime at the discretion of the Executive Director
16of the Capital Development Board.
17 Beginning on the effective date of this amendatory Act of
18the 99th General Assembly and through December 31, 2017, the
19Capital Development Board shall, on a weekly basis: review the
20projects that have been designed, and approved to bid; and, for
21every fifth determination to use the single prime procurement
22delivery method for a project under $10,000,000, submit to the
23Procurement Policy Board a written notice of its intent to use
24the single prime method on the project. The notice shall
25include the reasons for using the single prime method and an
26explanation of why the use of that method is in the best

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1interest of the State. The Capital Development Board shall post
2the notice on its online procurement webpage and on the online
3Procurement Bulletin at least 3 business days following
4submission. The Procurement Policy Board shall review and
5provide its decision on the use of the single prime method for
6every fifth use of the single prime procurement delivery method
7for a project under $10,000,000 within 7 business days of
8receipt of the notice from the Capital Development Board.
9Approval by the Procurement Policy Board shall not be
10unreasonably withheld and shall be provided unless the
11Procurement Policy Board finds that the use of the single prime
12method is not in the best interest of the State. Any decision
13by the Procurement Policy Board to disapprove the use of the
14single prime method shall be made in writing to the Capital
15Development Board, posted on the online Procurement Bulletin,
16and shall state the reasons why the single prime method was
17disapproved and why it is not in the best interest of the
18State.
19 (b) The provisions of this subsection are operative on and
20after January 1, 2020. For building construction contracts in
21excess of $250,000, separate specifications shall be prepared
22for all equipment, labor, and materials in connection with the
23following 5 subdivisions of the work to be performed:
24 (1) plumbing;
25 (2) heating, piping, refrigeration, and automatic
26 temperature control systems, including the testing and

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1 balancing of those systems;
2 (3) ventilating and distribution systems for
3 conditioned air, including the testing and balancing of
4 those systems;
5 (4) electric wiring; and
6 (5) general contract work.
7 The specifications must be so drawn as to permit separate
8and independent bidding upon each of the 5 subdivisions of
9work. All contracts awarded for any part thereof shall award
10the 5 subdivisions of work separately to responsible and
11reliable persons, firms, or corporations engaged in these
12classes of work. The contracts, at the discretion of the
13construction agency, may be assigned to the successful bidder
14on the general contract work or to the successful bidder on the
15subdivision of work designated by the construction agency
16before the bidding as the prime subdivision of work, provided
17that all payments will be made directly to the contractors for
18the 5 subdivisions of work upon compliance with the conditions
19of the contract.
20(Source: P.A. 98-431, eff. 8-16-13; 98-1076, eff. 1-1-15;
2199-257, eff. 8-4-15.)
22 (30 ILCS 500/45-45)
23 Sec. 45-45. Small businesses.
24 (a) Set-asides. Each chief procurement officer has
25authority to designate as small business set-asides a fair

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1proportion of construction, supply, and service contracts for
2award to small businesses in Illinois. Advertisements for bids
3or offers for those contracts shall specify designation as
4small business set-asides. In awarding the contracts, only bids
5or offers from qualified small businesses shall be considered.
6 (b) Small business. "Small business" means a business that
7is independently owned and operated and that is not dominant in
8its field of operation. The chief procurement officer shall
9establish a detailed definition by rule, using in addition to
10the foregoing criteria other criteria, including the number of
11employees and the dollar volume of business. When computing the
12size status of a potential contractor, annual sales and
13receipts of the potential contractor and all of its affiliates
14shall be included. The maximum number of employees and the
15maximum dollar volume that a small business may have under the
16rules promulgated by the chief procurement officer may vary
17from industry to industry to the extent necessary to reflect
18differing characteristics of those industries, subject to the
19following limitations:
20 (1) No wholesale business is a small business if its
21 annual sales for its most recently completed fiscal year
22 exceed $13,000,000.
23 (2) No retail business or business selling services is
24 a small business if its annual sales and receipts exceed
25 $8,000,000.
26 (3) No manufacturing business is a small business if it

SB0262 Engrossed- 53 -LRB100 05183 HLH 15193 b
1 employs more than 250 persons.
2 (4) No construction business is a small business if its
3 annual sales and receipts exceed $14,000,000.
4 (c) Fair proportion. For the purpose of subsection (a), for
5State agencies of the executive branch, a fair proportion of
6construction contracts shall be no less than 25% nor more than
740% of the annual total contracts for construction.
8 (d) Withdrawal of designation. A small business set-aside
9designation may be withdrawn by the purchasing agency when
10deemed in the best interests of the State. Upon withdrawal, all
11bids or offers shall be rejected, and the bidders or offerors
12shall be notified of the reason for rejection. The contract
13shall then be awarded in accordance with this Code without the
14designation of small business set-aside.
15 (e) Small business specialist. The chief procurement
16officer shall designate a State purchasing officer who will be
17responsible for engaging an experienced contract negotiator to
18serve as its small business specialist, whose duties shall
19include:
20 (1) Compiling and maintaining a comprehensive list of
21 potential small contractors. In this duty, he or she shall
22 cooperate with the Federal Small Business Administration
23 in locating potential sources for various products and
24 services.
25 (2) Assisting small businesses in complying with the
26 procedures for bidding on State contracts.

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1 (3) Examining requests from State agencies for the
2 purchase of property or services to help determine which
3 invitations to bid are to be designated small business
4 set-asides.
5 (4) Making recommendations to the chief procurement
6 officer for the simplification of specifications and terms
7 in order to increase the opportunities for small business
8 participation.
9 (5) Assisting in investigations by purchasing agencies
10 to determine the responsibility of bidders or offerors on
11 small business set-asides.
12 (f) Small business annual report. The State purchasing
13officer designated under subsection (e) shall annually before
14December 1 report in writing to the General Assembly concerning
15the awarding of contracts to small businesses. The report shall
16include the total value of awards made in the preceding fiscal
17year under the designation of small business set-aside. The
18report shall also include the total value of awards made to
19businesses owned by minorities, women females, and persons with
20disabilities, as defined in the Business Enterprise for
21Minorities, Women Females, and Persons with Disabilities Act,
22in the preceding fiscal year under the designation of small
23business set-aside.
24 The requirement for reporting to the General Assembly shall
25be satisfied by filing copies of the report as required by
26Section 3.1 of the General Assembly Organization Act.

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1(Source: P.A. 98-1076, eff. 1-1-15.)
2 (30 ILCS 500/45-57)
3 Sec. 45-57. Veterans.
4 (a) Set-aside goal. It is the goal of the State to promote
5and encourage the continued economic development of small
6businesses owned and controlled by qualified veterans and that
7qualified service-disabled veteran-owned small businesses
8(referred to as SDVOSB) and veteran-owned small businesses
9(referred to as VOSB) participate in the State's procurement
10process as both prime contractors and subcontractors. Not less
11than 3% of the total dollar amount of State contracts, as
12defined by the Director of Central Management Services, shall
13be established as a goal to be awarded to SDVOSB and VOSB. That
14portion of a contract under which the contractor subcontracts
15with a SDVOSB or VOSB may be counted toward the goal of this
16subsection. The Department of Central Management Services
17shall adopt rules to implement compliance with this subsection
18by all State agencies.
19 (b) Fiscal year reports. By each September 1, each chief
20procurement officer shall report to the Department of Central
21Management Services on all of the following for the immediately
22preceding fiscal year, and by each March 1 the Department of
23Central Management Services shall compile and report that
24information to the General Assembly:
25 (1) The total number of VOSB, and the number of SDVOSB,

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1 who submitted bids for contracts under this Code.
2 (2) The total number of VOSB, and the number of SDVOSB,
3 who entered into contracts with the State under this Code
4 and the total value of those contracts.
5 (c) Yearly review and recommendations. Each year, each
6chief procurement officer shall review the progress of all
7State agencies under its jurisdiction in meeting the goal
8described in subsection (a), with input from statewide
9veterans' service organizations and from the business
10community, including businesses owned by qualified veterans,
11and shall make recommendations to be included in the Department
12of Central Management Services' report to the General Assembly
13regarding continuation, increases, or decreases of the
14percentage goal. The recommendations shall be based upon the
15number of businesses that are owned by qualified veterans and
16on the continued need to encourage and promote businesses owned
17by qualified veterans.
18 (d) Governor's recommendations. To assist the State in
19reaching the goal described in subsection (a), the Governor
20shall recommend to the General Assembly changes in programs to
21assist businesses owned by qualified veterans.
22 (e) Definitions. As used in this Section:
23 "Armed forces of the United States" means the United States
24Army, Navy, Air Force, Marine Corps, Coast Guard, or service in
25active duty as defined under 38 U.S.C. Section 101. Service in
26the Merchant Marine that constitutes active duty under Section

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1401 of federal Public Act 95-202 shall also be considered
2service in the armed forces for purposes of this Section.
3 "Certification" means a determination made by the Illinois
4Department of Veterans' Affairs and the Department of Central
5Management Services that a business entity is a qualified
6service-disabled veteran-owned small business or a qualified
7veteran-owned small business for whatever purpose. A SDVOSB or
8VOSB owned and controlled by women females, minorities, or
9persons with disabilities, as those terms are defined in
10Section 2 of the Business Enterprise for Minorities, Women
11Females, and Persons with Disabilities Act, may also select and
12designate whether that business is to be certified as a
13"women-owned female-owned business", "minority-owned
14business", or "business owned by a person with a disability",
15as defined in Section 2 of the Business Enterprise for
16Minorities, Women Females, and Persons with Disabilities Act.
17 "Control" means the exclusive, ultimate, majority, or sole
18control of the business, including but not limited to capital
19investment and all other financial matters, property,
20acquisitions, contract negotiations, legal matters,
21officer-director-employee selection and comprehensive hiring,
22operation responsibilities, cost-control matters, income and
23dividend matters, financial transactions, and rights of other
24shareholders or joint partners. Control shall be real,
25substantial, and continuing, not pro forma. Control shall
26include the power to direct or cause the direction of the

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1management and policies of the business and to make the
2day-to-day as well as major decisions in matters of policy,
3management, and operations. Control shall be exemplified by
4possessing the requisite knowledge and expertise to run the
5particular business, and control shall not include simple
6majority or absentee ownership.
7 "Qualified service-disabled veteran" means a veteran who
8has been found to have 10% or more service-connected disability
9by the United States Department of Veterans Affairs or the
10United States Department of Defense.
11 "Qualified service-disabled veteran-owned small business"
12or "SDVOSB" means a small business (i) that is at least 51%
13owned by one or more qualified service-disabled veterans living
14in Illinois or, in the case of a corporation, at least 51% of
15the stock of which is owned by one or more qualified
16service-disabled veterans living in Illinois; (ii) that has its
17home office in Illinois; and (iii) for which items (i) and (ii)
18are factually verified annually by the Department of Central
19Management Services.
20 "Qualified veteran-owned small business" or "VOSB" means a
21small business (i) that is at least 51% owned by one or more
22qualified veterans living in Illinois or, in the case of a
23corporation, at least 51% of the stock of which is owned by one
24or more qualified veterans living in Illinois; (ii) that has
25its home office in Illinois; and (iii) for which items (i) and
26(ii) are factually verified annually by the Department of

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1Central Management Services.
2 "Service-connected disability" means a disability incurred
3in the line of duty in the active military, naval, or air
4service as described in 38 U.S.C. 101(16).
5 "Small business" means a business that has annual gross
6sales of less than $75,000,000 as evidenced by the federal
7income tax return of the business. A firm with gross sales in
8excess of this cap may apply to the Department of Central
9Management Services for certification for a particular
10contract if the firm can demonstrate that the contract would
11have significant impact on SDVOSB or VOSB as suppliers or
12subcontractors or in employment of veterans or
13service-disabled veterans.
14 "State agency" has the same meaning as in Section 2 of the
15Business Enterprise for Minorities, Women Females, and Persons
16with Disabilities Act.
17 "Time of hostilities with a foreign country" means any
18period of time in the past, present, or future during which a
19declaration of war by the United States Congress has been or is
20in effect or during which an emergency condition has been or is
21in effect that is recognized by the issuance of a Presidential
22proclamation or a Presidential executive order and in which the
23armed forces expeditionary medal or other campaign service
24medals are awarded according to Presidential executive order.
25 "Veteran" means a person who (i) has been a member of the
26armed forces of the United States or, while a citizen of the

SB0262 Engrossed- 60 -LRB100 05183 HLH 15193 b
1United States, was a member of the armed forces of allies of
2the United States in time of hostilities with a foreign country
3and (ii) has served under one or more of the following
4conditions: (a) the veteran served a total of at least 6
5months; (b) the veteran served for the duration of hostilities
6regardless of the length of the engagement; (c) the veteran was
7discharged on the basis of hardship; or (d) the veteran was
8released from active duty because of a service connected
9disability and was discharged under honorable conditions.
10 (f) Certification program. The Illinois Department of
11Veterans' Affairs and the Department of Central Management
12Services shall work together to devise a certification
13procedure to assure that businesses taking advantage of this
14Section are legitimately classified as qualified
15service-disabled veteran-owned small businesses or qualified
16veteran-owned small businesses.
17 (g) Penalties.
18 (1) Administrative penalties. The chief procurement
19 officers appointed pursuant to Section 10-20 shall suspend
20 any person who commits a violation of Section 17-10.3 or
21 subsection (d) of Section 33E-6 of the Criminal Code of
22 2012 relating to this Section from bidding on, or
23 participating as a contractor, subcontractor, or supplier
24 in, any State contract or project for a period of not less
25 than 3 years, and, if the person is certified as a
26 service-disabled veteran-owned small business or a

SB0262 Engrossed- 61 -LRB100 05183 HLH 15193 b
1 veteran-owned small business, then the Department shall
2 revoke the business's certification for a period of not
3 less than 3 years. An additional or subsequent violation
4 shall extend the periods of suspension and revocation for a
5 period of not less than 5 years. The suspension and
6 revocation shall apply to the principals of the business
7 and any subsequent business formed or financed by, or
8 affiliated with, those principals.
9 (2) Reports of violations. Each State agency shall
10 report any alleged violation of Section 17-10.3 or
11 subsection (d) of Section 33E-6 of the Criminal Code of
12 2012 relating to this Section to the chief procurement
13 officers appointed pursuant to Section 10-20. The chief
14 procurement officers appointed pursuant to Section 10-20
15 shall subsequently report all such alleged violations to
16 the Attorney General, who shall determine whether to bring
17 a civil action against any person for the violation.
18 (3) List of suspended persons. The chief procurement
19 officers appointed pursuant to Section 10-20 shall monitor
20 the status of all reported violations of Section 17-10.3 or
21 subsection (d) of Section 33E-6 of the Criminal Code of
22 1961 or the Criminal Code of 2012 relating to this Section
23 and shall maintain and make available to all State agencies
24 a central listing of all persons that committed violations
25 resulting in suspension.
26 (4) Use of suspended persons. During the period of a

SB0262 Engrossed- 62 -LRB100 05183 HLH 15193 b
1 person's suspension under paragraph (1) of this
2 subsection, a State agency shall not enter into any
3 contract with that person or with any contractor using the
4 services of that person as a subcontractor.
5 (5) Duty to check list. Each State agency shall check
6 the central listing provided by the chief procurement
7 officers appointed pursuant to Section 10-20 under
8 paragraph (3) of this subsection to verify that a person
9 being awarded a contract by that State agency, or to be
10 used as a subcontractor or supplier on a contract being
11 awarded by that State agency, is not under suspension
12 pursuant to paragraph (1) of this subsection.
13(Source: P.A. 97-260, eff. 8-5-11; 97-1150, eff. 1-25-13;
1498-307, eff. 8-12-13; 98-1076, eff. 1-1-15.)
15 (30 ILCS 500/45-65)
16 Sec. 45-65. Additional preferences. This Code is subject to
17applicable provisions of:
18 (1) the Public Purchases in Other States Act;
19 (2) the Illinois Mined Coal Act;
20 (3) the Steel Products Procurement Act;
21 (4) the Veterans Preference Act;
22 (5) the Business Enterprise for Minorities, Women
23 Females, and Persons with Disabilities Act; and
24 (6) the Procurement of Domestic Products Act.
25(Source: P.A. 93-954, eff. 1-1-05.)

SB0262 Engrossed- 63 -LRB100 05183 HLH 15193 b
1 Section 60. The Design-Build Procurement Act is amended by
2changing Sections 5, 15, 30, and 46 as follows:
3 (30 ILCS 537/5)
4 (Section scheduled to be repealed on July 1, 2019)
5 Sec. 5. Legislative policy. It is the intent of the
6General Assembly that the Capital Development Board be allowed
7to use the design-build delivery method for public projects if
8it is shown to be in the State's best interest for that
9particular project. It shall be the policy of the Capital
10Development Board in the procurement of design-build services
11to publicly announce all requirements for design-build
12services and to procure these services on the basis of
13demonstrated competence and qualifications and with due regard
14for the principles of competitive selection.
15 The Capital Development Board shall, prior to issuing
16requests for proposals, promulgate and publish procedures for
17the solicitation and award of contracts pursuant to this Act.
18 The Capital Development Board shall, for each public
19project or projects permitted under this Act, make a written
20determination, including a description as to the particular
21advantages of the design-build procurement method, that it is
22in the best interests of this State to enter into a
23design-build contract for the project or projects. In making
24that determination, the following factors shall be considered:

SB0262 Engrossed- 64 -LRB100 05183 HLH 15193 b
1 (1) The probability that the design-build procurement
2 method will be in the best interests of the State by
3 providing a material savings of time or cost over the
4 design-bid-build or other delivery system.
5 (2) The type and size of the project and its
6 suitability to the design-build procurement method.
7 (3) The ability of the State construction agency to
8 define and provide comprehensive scope and performance
9 criteria for the project.
10 No State construction agency may use a design-build
11procurement method unless the agency determines in writing that
12the project will comply with the disadvantaged business and
13equal employment practices of the State as established in the
14Business Enterprise for Minorities, Women Females, and Persons
15with Disabilities Act and Section 2-105 of the Illinois Human
16Rights Act.
17 The Capital Development Board shall within 15 days after
18the initial determination provide an advisory copy to the
19Procurement Policy Board and maintain the full record of
20determination for 5 years.
21(Source: P.A. 94-716, eff. 12-13-05.)
22 (30 ILCS 537/15)
23 (Section scheduled to be repealed on July 1, 2019)
24 Sec. 15. Solicitation of proposals.
25 (a) When the State construction agency elects to use the

SB0262 Engrossed- 65 -LRB100 05183 HLH 15193 b
1design-build delivery method, it must issue a notice of intent
2to receive requests for proposals for the project at least 14
3days before issuing the request for the proposal. The State
4construction agency must publish the advance notice in the
5official procurement bulletin of the State or the professional
6services bulletin of the State construction agency, if any. The
7agency is encouraged to use publication of the notice in
8related construction industry service publications. A brief
9description of the proposed procurement must be included in the
10notice. The State construction agency must provide a copy of
11the request for proposal to any party requesting a copy.
12 (b) The request for proposal shall be prepared for each
13project and must contain, without limitation, the following
14information:
15 (1) The name of the State construction agency.
16 (2) A preliminary schedule for the completion of the
17 contract.
18 (3) The proposed budget for the project, the source of
19 funds, and the currently available funds at the time the
20 request for proposal is submitted.
21 (4) Prequalification criteria for design-build
22 entities wishing to submit proposals. The State
23 construction agency shall include, at a minimum, its normal
24 prequalification, licensing, registration, and other
25 requirements, but nothing contained herein precludes the
26 use of additional prequalification criteria by the State

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1 construction agency.
2 (5) Material requirements of the contract, including
3 but not limited to, the proposed terms and conditions,
4 required performance and payment bonds, insurance, and the
5 entity's plan to comply with the utilization goals for
6 business enterprises established in the Business
7 Enterprise for Minorities, Women Females, and Persons with
8 Disabilities Act, and with Section 2-105 of the Illinois
9 Human Rights Act.
10 (6) The performance criteria.
11 (7) The evaluation criteria for each phase of the
12 solicitation.
13 (8) The number of entities that will be considered for
14 the technical and cost evaluation phase.
15 (c) The State construction agency may include any other
16relevant information that it chooses to supply. The
17design-build entity shall be entitled to rely upon the accuracy
18of this documentation in the development of its proposal.
19 (d) The date that proposals are due must be at least 21
20calendar days after the date of the issuance of the request for
21proposal. In the event the cost of the project is estimated to
22exceed $10 million, then the proposal due date must be at least
2328 calendar days after the date of the issuance of the request
24for proposal. The State construction agency shall include in
25the request for proposal a minimum of 30 days to develop the
26Phase II submissions after the selection of entities from the

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1Phase I evaluation is completed.
2(Source: P.A. 94-716, eff. 12-13-05.)
3 (30 ILCS 537/30)
4 (Section scheduled to be repealed on July 1, 2019)
5 Sec. 30. Procedures for Selection.
6 (a) The State construction agency must use a two-phase
7procedure for the selection of the successful design-build
8entity. Phase I of the procedure will evaluate and shortlist
9the design-build entities based on qualifications, and Phase II
10will evaluate the technical and cost proposals.
11 (b) The State construction agency shall include in the
12request for proposal the evaluating factors to be used in Phase
13I. These factors are in addition to any prequalification
14requirements of design-build entities that the agency has set
15forth. Each request for proposal shall establish the relative
16importance assigned to each evaluation factor and subfactor,
17including any weighting of criteria to be employed by the State
18construction agency. The State construction agency must
19maintain a record of the evaluation scoring to be disclosed in
20event of a protest regarding the solicitation.
21 The State construction agency shall include the following
22criteria in every Phase I evaluation of design-build entities:
23(1) experience of personnel; (2) successful experience with
24similar project types; (3) financial capability; (4)
25timeliness of past performance; (5) experience with similarly

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1sized projects; (6) successful reference checks of the firm;
2(7) commitment to assign personnel for the duration of the
3project and qualifications of the entity's consultants; and (8)
4ability or past performance in meeting or exhausting good faith
5efforts to meet the utilization goals for business enterprises
6established in the Business Enterprise for Minorities, Women
7Females, and Persons with Disabilities Act and with Section
82-105 of the Illinois Human Rights Act. The State construction
9agency may include any additional relevant criteria in Phase I
10that it deems necessary for a proper qualification review.
11 The State construction agency may not consider any
12design-build entity for evaluation or award if the entity has
13any pecuniary interest in the project or has other
14relationships or circumstances, including but not limited to,
15long-term leasehold, mutual performance, or development
16contracts with the State construction agency, that may give the
17design-build entity a financial or tangible advantage over
18other design-build entities in the preparation, evaluation, or
19performance of the design-build contract or that create the
20appearance of impropriety. No proposal shall be considered that
21does not include an entity's plan to comply with the
22requirements established in the Business Enterprise for
23Minorities, Women Females, and Persons with Disabilities Act,
24for both the design and construction areas of performance, and
25with Section 2-105 of the Illinois Human Rights Act.
26 Upon completion of the qualifications evaluation, the

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1State construction agency shall create a shortlist of the most
2highly qualified design-build entities. The State construction
3agency, in its discretion, is not required to shortlist the
4maximum number of entities as identified for Phase II
5evaluation, provided however, no less than 2 design-build
6entities nor more than 6 are selected to submit Phase II
7proposals.
8 The State construction agency shall notify the entities
9selected for the shortlist in writing. This notification shall
10commence the period for the preparation of the Phase II
11technical and cost evaluations. The State construction agency
12must allow sufficient time for the shortlist entities to
13prepare their Phase II submittals considering the scope and
14detail requested by the State agency.
15 (c) The State construction agency shall include in the
16request for proposal the evaluating factors to be used in the
17technical and cost submission components of Phase II. Each
18request for proposal shall establish, for both the technical
19and cost submission components of Phase II, the relative
20importance assigned to each evaluation factor and subfactor,
21including any weighting of criteria to be employed by the State
22construction agency. The State construction agency must
23maintain a record of the evaluation scoring to be disclosed in
24event of a protest regarding the solicitation.
25 The State construction agency shall include the following
26criteria in every Phase II technical evaluation of design-build

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1entities: (1) compliance with objectives of the project; (2)
2compliance of proposed services to the request for proposal
3requirements; (3) quality of products or materials proposed;
4(4) quality of design parameters; (5) design concepts; (6)
5innovation in meeting the scope and performance criteria; and
6(7) constructability of the proposed project. The State
7construction agency may include any additional relevant
8technical evaluation factors it deems necessary for proper
9selection.
10 The State construction agency shall include the following
11criteria in every Phase II cost evaluation: the total project
12cost, the construction costs, and the time of completion. The
13State construction agency may include any additional relevant
14technical evaluation factors it deems necessary for proper
15selection. The total project cost criteria weighing factor
16shall be 25%.
17 The State construction agency shall directly employ or
18retain a licensed design professional to evaluate the technical
19and cost submissions to determine if the technical submissions
20are in accordance with generally accepted industry standards.
21 Upon completion of the technical submissions and cost
22submissions evaluation, the State construction agency may
23award the design-build contract to the highest overall ranked
24entity.
25(Source: P.A. 96-21, eff. 6-30-09.)

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1 (30 ILCS 537/46)
2 (Section scheduled to be repealed on July 1, 2019)
3 Sec. 46. Reports and evaluation. At the end of every 6
4month period following the contract award, and again prior to
5final contract payout and closure, a selected design-build
6entity shall detail, in a written report submitted to the State
7agency, its efforts and success in implementing the entity's
8plan to comply with the utilization goals for business
9enterprises established in the Business Enterprise for
10Minorities, Women Females, and Persons with Disabilities Act
11and the provisions of Section 2-105 of the Illinois Human
12Rights Act. If the entity's performance in implementing the
13plan falls short of the performance measures and outcomes set
14forth in the plans submitted by the entity during the proposal
15process, the entity shall, in a detailed written report, inform
16the General Assembly and the Governor whether and to what
17degree each design-build contract authorized under this Act
18promoted the utilization goals for business enterprises
19established in the Business Enterprise for Minorities, Women
20Females, and Persons with Disabilities Act and the provisions
21of Section 2-105 of the Illinois Human Rights Act.
22(Source: P.A. 94-716, eff. 12-13-05.)
23 Section 65. The Project Labor Agreements Act is amended by
24changing Sections 25 and 37 as follows:

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1 (30 ILCS 571/25)
2 Sec. 25. Contents of agreement. Pursuant to this Act, any
3project labor agreement shall:
4 (a) Set forth effective, immediate, and mutually
5 binding procedures for resolving jurisdictional labor
6 disputes and grievances arising before the completion of
7 work.
8 (b) Contain guarantees against strikes, lockouts, or
9 similar actions.
10 (c) Ensure a reliable source of skilled and experienced
11 labor.
12 (d) For minorities and women females as defined under
13 the Business Enterprise for Minorities, Women Females, and
14 Persons with Disabilities Act, set forth goals for
15 apprenticeship hours to be performed by minorities and
16 women females and set forth goals for total hours to be
17 performed by underrepresented minorities and women
18 females.
19 (e) Permit the selection of the lowest qualified
20 responsible bidder, without regard to union or non-union
21 status at other construction sites.
22 (f) Bind all contractors and subcontractors on the
23 public works project through the inclusion of appropriate
24 bid specifications in all relevant bid documents.
25 (g) Include such other terms as the parties deem
26 appropriate.

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1(Source: P.A. 97-199, eff. 7-27-11.)
2 (30 ILCS 571/37)
3 Sec. 37. Quarterly report; annual report. A State
4department, agency, authority, board, or instrumentality that
5has a project labor agreement in connection with a public works
6project shall prepare a quarterly report that includes
7workforce participation under the agreement by minorities and
8women females as defined under the Business Enterprise for
9Minorities, Women Females, and Persons with Disabilities Act.
10These reports shall be submitted to the Illinois Department of
11Labor. The Illinois Department of Labor shall submit to the
12General Assembly and the Governor an annual report that details
13the number of minorities and women females employed under all
14public labor agreements within the State.
15(Source: P.A. 97-199, eff. 7-27-11.)
16 Section 70. The Business Enterprise for Minorities,
17Females, and Persons with Disabilities Act is amended by
18changing Sections 0.01, 1, 2, 4, 4f, 5, 6, 6a, 7, 8, 8a, 8b, and
198f and by adding Sections 8g, 8h, and 8i as follows:
20 (30 ILCS 575/0.01) (from Ch. 127, par. 132.600)
21 (Section scheduled to be repealed on June 30, 2020)
22 Sec. 0.01. Short title. This Act may be cited as the
23Business Enterprise for Minorities, Women Females, and Persons

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1with Disabilities Act.
2(Source: P.A. 88-597, eff. 8-28-94.)
3 (30 ILCS 575/1) (from Ch. 127, par. 132.601)
4 (Section scheduled to be repealed on June 30, 2020)
5 Sec. 1. Purpose. The State of Illinois declares that it is
6the public policy of the State to promote and encourage the
7continuing economic development of minority-owned minority and
8women-owned female owned and operated businesses and that
9minority-owned minority and women-owned female owned and
10operated businesses participate in the State's procurement
11process as both prime and subcontractors. The State of Illinois
12has observed that the goals established in this Act have served
13to increase the participation of minority and women female
14businesses in contracts awarded by the State. The State hereby
15declares that the adoption of this amendatory Act of 1989 shall
16serve the State's continuing interest in promoting open access
17in the awarding of State contracts to disadvantaged small
18business enterprises victimized by discriminatory practices.
19Furthermore, after reviewing evidence of the high level of
20attainment of the 10% minimum goals established under this Act,
21and, after considering evidence that minority and women female
22businesses, as established in 1982, constituted and continue to
23constitute more than 10% of the businesses operating in this
24State, the State declares that the continuation of such 10%
25minimum goals under this amendatory Act of 1989 is a narrowly

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1tailored means of promoting open access and thus the further
2growth and development of minority and women female businesses.
3 The State of Illinois further declares that it is the
4public policy of this State to promote and encourage the
5continuous economic development of businesses owned by persons
6with disabilities and a 2% contracting goal is a narrowly
7tailored means of promoting open access and thus the further
8growth and development of those businesses.
9(Source: P.A. 88-597, eff. 8-28-94.)
10 (30 ILCS 575/2)
11 (Section scheduled to be repealed on June 30, 2020)
12 Sec. 2. Definitions.
13 (A) For the purpose of this Act, the following terms shall
14have the following definitions:
15 (1) "Minority person" shall mean a person who is a
16 citizen or lawful permanent resident of the United States
17 and who is any of the following:
18 (a) American Indian or Alaska Native (a person
19 having origins in any of the original peoples of North
20 and South America, including Central America, and who
21 maintains tribal affiliation or community attachment).
22 (b) Asian (a person having origins in any of the
23 original peoples of the Far East, Southeast Asia, or
24 the Indian subcontinent, including, but not limited
25 to, Cambodia, China, India, Japan, Korea, Malaysia,

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1 Pakistan, the Philippine Islands, Thailand, and
2 Vietnam).
3 (c) Black or African American (a person having
4 origins in any of the black racial groups of Africa).
5 Terms such as "Haitian" or "Negro" can be used in
6 addition to "Black or African American".
7 (d) Hispanic or Latino (a person of Cuban, Mexican,
8 Puerto Rican, South or Central American, or other
9 Spanish culture or origin, regardless of race).
10 (e) Native Hawaiian or Other Pacific Islander (a
11 person having origins in any of the original peoples of
12 Hawaii, Guam, Samoa, or other Pacific Islands).
13 (2) "Woman Female" shall mean a person who is a citizen
14 or lawful permanent resident of the United States and who
15 is of the female gender.
16 (2.05) "Person with a disability" means a person who is
17 a citizen or lawful resident of the United States and is a
18 person qualifying as a person with a disability under
19 subdivision (2.1) of this subsection (A).
20 (2.1) "Person with a disability" means a person with a
21 severe physical or mental disability that:
22 (a) results from:
23 amputation,
24 arthritis,
25 autism,
26 blindness,

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1 burn injury,
2 cancer,
3 cerebral palsy,
4 Crohn's disease,
5 cystic fibrosis,
6 deafness,
7 head injury,
8 heart disease,
9 hemiplegia,
10 hemophilia,
11 respiratory or pulmonary dysfunction,
12 an intellectual disability,
13 mental illness,
14 multiple sclerosis,
15 muscular dystrophy,
16 musculoskeletal disorders,
17 neurological disorders, including stroke and
18 epilepsy,
19 paraplegia,
20 quadriplegia and other spinal cord conditions,
21 sickle cell anemia,
22 ulcerative colitis,
23 specific learning disabilities, or
24 end stage renal failure disease; and
25 (b) substantially limits one or more of the
26 person's major life activities.

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1 Another disability or combination of disabilities may
2 also be considered as a severe disability for the purposes
3 of item (a) of this subdivision (2.1) if it is determined
4 by an evaluation of rehabilitation potential to cause a
5 comparable degree of substantial functional limitation
6 similar to the specific list of disabilities listed in item
7 (a) of this subdivision (2.1).
8 (3) "Minority-owned Minority owned business" means a
9 business which is at least 51% owned by one or more
10 minority persons, or in the case of a corporation, at least
11 51% of the stock in which is owned by one or more minority
12 persons; and the management and daily business operations
13 of which are controlled by one or more of the minority
14 individuals who own it.
15 (4) "Women-owned Female owned business" means a
16 business which is at least 51% owned by one or more women
17 females, or, in the case of a corporation, at least 51% of
18 the stock in which is owned by one or more women females;
19 and the management and daily business operations of which
20 are controlled by one or more of the women females who own
21 it.
22 (4.1) "Business owned by a person with a disability"
23 means a business that is at least 51% owned by one or more
24 persons with a disability and the management and daily
25 business operations of which are controlled by one or more
26 of the persons with disabilities who own it. A

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1 not-for-profit agency for persons with disabilities that
2 is exempt from taxation under Section 501 of the Internal
3 Revenue Code of 1986 is also considered a "business owned
4 by a person with a disability".
5 (4.2) "Council" means the Business Enterprise Council
6 for Minorities, Women Females, and Persons with
7 Disabilities created under Section 5 of this Act.
8 (5) "State contracts" means all contracts entered into
9 by the State, any agency or department thereof, or any
10 public institution of higher education, including
11 community college districts, regardless of the source of
12 the funds with which the contracts are paid, which are not
13 subject to federal reimbursement. "State contracts" does
14 not include contracts awarded by a retirement system,
15 pension fund, or investment board subject to Section
16 1-109.1 of the Illinois Pension Code. This definition shall
17 control over any existing definition under this Act or
18 applicable administrative rule.
19 "State construction contracts" means all State
20 contracts entered into by a State agency or public
21 institution of higher education for the repair,
22 remodeling, renovation or construction of a building or
23 structure, or for the construction or maintenance of a
24 highway defined in Article 2 of the Illinois Highway Code.
25 (6) "State agencies" shall mean all departments,
26 officers, boards, commissions, institutions and bodies

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1 politic and corporate of the State, but does not include
2 the Board of Trustees of the University of Illinois, the
3 Board of Trustees of Southern Illinois University, the
4 Board of Trustees of Chicago State University, the Board of
5 Trustees of Eastern Illinois University, the Board of
6 Trustees of Governors State University, the Board of
7 Trustees of Illinois State University, the Board of
8 Trustees of Northeastern Illinois University, the Board of
9 Trustees of Northern Illinois University, the Board of
10 Trustees of Western Illinois University, municipalities or
11 other local governmental units, or other State
12 constitutional officers.
13 (7) "Public institutions of higher education" means
14 the University of Illinois, Southern Illinois University,
15 Chicago State University, Eastern Illinois University,
16 Governors State University, Illinois State University,
17 Northeastern Illinois University, Northern Illinois
18 University, Western Illinois University, the public
19 community colleges of the State, and any other public
20 universities, colleges, and community colleges now or
21 hereafter established or authorized by the General
22 Assembly.
23 (8) "Certification" means a determination made by the
24 Council or by one delegated authority from the Council to
25 make certifications, or by a State agency with statutory
26 authority to make such a certification, that a business

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1 entity is a business owned by a minority, woman female, or
2 person with a disability for whatever purpose. A business
3 owned and controlled by women females shall be certified as
4 a "woman-owned female owned business". A business owned and
5 controlled by women females who are also minorities shall
6 be certified as both a "women-owned female owned business"
7 and a "minority-owned minority owned business".
8 (9) "Control" means the exclusive or ultimate and sole
9 control of the business including, but not limited to,
10 capital investment and all other financial matters,
11 property, acquisitions, contract negotiations, legal
12 matters, officer-director-employee selection and
13 comprehensive hiring, operating responsibilities,
14 cost-control matters, income and dividend matters,
15 financial transactions and rights of other shareholders or
16 joint partners. Control shall be real, substantial and
17 continuing, not pro forma. Control shall include the power
18 to direct or cause the direction of the management and
19 policies of the business and to make the day-to-day as well
20 as major decisions in matters of policy, management and
21 operations. Control shall be exemplified by possessing the
22 requisite knowledge and expertise to run the particular
23 business and control shall not include simple majority or
24 absentee ownership.
25 (10) "Business" means a business that has annual gross
26 sales of less than $75,000,000 as evidenced by the federal

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1 income tax return of the business. A firm with gross sales
2 in excess of this cap may apply to the Council for
3 certification for a particular contract if the firm can
4 demonstrate that the contract would have significant
5 impact on businesses owned by minorities, women females, or
6 persons with disabilities as suppliers or subcontractors
7 or in employment of minorities, women females, or persons
8 with disabilities.
9 (11) "Utilization plan" means a form and additional
10 documentations included in all bids or proposals that
11 demonstrates a vendor's proposed utilization of vendors
12 certified by the Business Enterprise Program to meet the
13 targeted goal. The utilization plan shall demonstrate that
14 the Vendor has either: (1) met the entire contract goal or
15 (2) requested a full or partial waiver and made good faith
16 efforts towards meeting the goal.
17 (12) "Business Enterprise Program" means the Business
18 Enterprise Program of the Department of Central Management
19 Services.
20 (B) When a business is owned at least 51% by any
21combination of minority persons, women females, or persons with
22disabilities, even though none of the 3 classes alone holds at
23least a 51% interest, the ownership requirement for purposes of
24this Act is considered to be met. The certification category
25for the business is that of the class holding the largest
26ownership interest in the business. If 2 or more classes have

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1equal ownership interests, the certification category shall be
2determined by the business.
3(Source: P.A. 98-95, eff. 7-17-13; 99-143, eff. 7-27-15;
499-462, eff. 8-25-15; 99-642, eff. 7-28-16.)
5 (30 ILCS 575/4) (from Ch. 127, par. 132.604)
6 (Section scheduled to be repealed on June 30, 2020)
7 Sec. 4. Award of State contracts.
8 (a) Except as provided in subsections (b) and (c), not less
9than 20% of the total dollar amount of State contracts, as
10defined by the Secretary of the Council and approved by the
11Council, shall be established as an aspirational goal to be
12awarded to businesses owned by minorities, women females, and
13persons with disabilities; provided, however, that of the total
14amount of all State contracts awarded to businesses owned by
15minorities, women females, and persons with disabilities
16pursuant to this Section, contracts representing at least 11%
17shall be awarded to businesses owned by minorities, contracts
18representing at least 7% shall be awarded to women-owned
19female-owned businesses, and contracts representing at least
202% shall be awarded to businesses owned by persons with
21disabilities.
22 The above percentage relates to the total dollar amount of
23State contracts during each State fiscal year, calculated by
24examining independently each type of contract for each agency
25or public institutions of higher education which lets such

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1contracts. Only that percentage of arrangements which
2represents the participation of businesses owned by
3minorities, women females, and persons with disabilities on
4such contracts shall be included.
5 (b) In the case of State construction contracts, the
6provisions of subsection (a) requiring a portion of State
7contracts to be awarded to businesses owned and controlled by
8persons with disabilities do not apply. The following
9aspirational goals are established for State construction
10contracts: not less than 20% of the total dollar amount of
11State construction contracts is established as a goal to be
12awarded to minority-owned minority and women-owned female
13owned businesses, and contracts representing 50% of the amount
14of all State construction contracts awarded to minority and
15female owned businesses shall be awarded to female owned
16businesses.
17 (c) In the case of all work undertaken by the University of
18Illinois related to the planning, organization, and staging of
19the games, the University of Illinois shall establish a goal of
20awarding not less than 25% of the annual dollar value of all
21contracts, purchase orders, and other agreements (collectively
22referred to as "the contracts") to minority-owned businesses or
23businesses owned by a person with a disability and 5% of the
24annual dollar value the contracts to women-owned female-owned
25businesses. For purposes of this subsection, the term "games"
26has the meaning set forth in the Olympic Games and Paralympic

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1Games (2016) Law.
2 (d) Within one year after April 28, 2009 (the effective
3date of Public Act 96-8), the Department of Central Management
4Services shall conduct a social scientific study that measures
5the impact of discrimination on minority and women female
6business development in Illinois. Within 18 months after April
728, 2009 (the effective date of Public Act 96-8), the
8Department shall issue a report of its findings and any
9recommendations on whether to adjust the goals for minority and
10women female participation established in this Act. Copies of
11this report and the social scientific study shall be filed with
12the Governor and the General Assembly.
13 (e) Except as permitted under this Act or as otherwise
14mandated by federal law or regulation, those who submit bids or
15proposals for State construction contracts subject to the
16provisions of this Act, whose bids or proposals are successful
17and include a utilization plan but that fail to meet the goals
18set forth in subsection (b) of this Section, shall be notified
19of that deficiency and shall be afforded a period not to exceed
2010 calendar days from the date of notification to cure that
21deficiency in the bid or proposal. The deficiency in the bid or
22proposal may only be cured by contracting with additional
23subcontractors who are owned by minorities or women females,
24but in no case shall an identified subcontractor with a
25certification made pursuant to this Act be terminated from the
26contract without the written consent of the State agency or

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1public institution of higher education entering into the
2contract.
3 (f) Non-construction solicitations that include Business
4Enterprise Program participation goals shall include the
5utilization plan in the solicitation. Utilization plans are due
6at the time of bid or offer submission. Failure to complete and
7include a utilization plan, including documentation
8demonstrating good faith effort when requesting a waiver, shall
9render the bid or offer non-responsive.
10(Source: P.A. 99-462, eff. 8-25-15; 99-514, eff. 6-30-16.)
11 (30 ILCS 575/4f)
12 (Section scheduled to be repealed on June 30, 2020)
13 Sec. 4f. Award of State contracts.
14 (1) It is hereby declared to be the public policy of the
15State of Illinois to promote and encourage each State agency
16and public institution of higher education to use businesses
17owned by minorities, women females, and persons with
18disabilities in the area of goods and services, including, but
19not limited to, insurance services, investment management
20services, information technology services, accounting
21services, architectural and engineering services, and legal
22services. Furthermore, each State agency and public
23institution of higher education shall utilize such firms to the
24greatest extent feasible within the bounds of financial and
25fiduciary prudence, and take affirmative steps to remove any

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1barriers to the full participation of such firms in the
2procurement and contracting opportunities afforded.
3 (a) When a State agency or public institution of higher
4 education, other than a community college, awards a
5 contract for insurance services, for each State agency or
6 public institution of higher education, it shall be the
7 aspirational goal to use insurance brokers owned by
8 minorities, women females, and persons with disabilities
9 as defined by this Act, for not less than 20% of the total
10 annual premiums or fees.
11 (b) When a State agency or public institution of higher
12 education, other than a community college, awards a
13 contract for investment services, for each State agency or
14 public institution of higher education, it shall be the
15 aspirational goal to use emerging investment managers
16 owned by minorities, women females, and persons with
17 disabilities as defined by this Act, for not less than 20%
18 of the total funds under management. Furthermore, it is the
19 aspirational goal that not less than 20% of the direct
20 asset managers of the State funds be minorities, women
21 females, and persons with disabilities.
22 (c) When a State agency or public institution of higher
23 education, other than a community college, awards
24 contracts for information technology services, accounting
25 services, architectural and engineering services, and
26 legal services, for each State agency and public

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1 institution of higher education, it shall be the
2 aspirational goal to use such firms owned by minorities,
3 women females, and persons with disabilities as defined by
4 this Act and lawyers who are minorities, women females, and
5 persons with disabilities as defined by this Act, for not
6 less than 20% of the total dollar amount of State
7 contracts.
8 (d) When a community college awards a contract for
9 insurance services, investment services, information
10 technology services, accounting services, architectural
11 and engineering services, and legal services, it shall be
12 the aspirational goal of each community college to use
13 businesses owned by minorities, women females, and persons
14 with disabilities as defined in this Act for not less than
15 20% of the total amount spent on contracts for these
16 services collectively. When a community college awards
17 contracts for investment services, contracts awarded to
18 investment managers who are not emerging investment
19 managers as defined in this Act shall not be considered
20 businesses owned by minorities, women females, or persons
21 with disabilities for the purposes of this Section.
22 (2) As used in this Section:
23 "Accounting services" means the measurement,
24 processing and communication of financial information
25 about economic entities including, but is not limited to,
26 financial accounting, management accounting, auditing,

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

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1 premiums or fees of at least $5,000,000 but not more than
2 $10,000,000.
3 "Legal services" means work performed by a lawyer
4 including, but not limited to, contracts in anticipation of
5 litigation, enforcement actions, or investigations.
6 (3) Each State agency and public institution of higher
7education shall adopt policies that identify its plan and
8implementation procedures for increasing the use of service
9firms owned by minorities, women females, and persons with
10disabilities.
11 (4) Except as provided in subsection (5), the Council shall
12file no later than March 1 of each year an annual report to the
13Governor and the General Assembly. The report filed with the
14General Assembly shall be filed as required in Section 3.1 of
15the General Assembly Organization Act. This report shall: (i)
16identify the service firms used by each State agency and public
17institution of higher education, (ii) identify the actions it
18has undertaken to increase the use of service firms owned by
19minorities, women females, and persons with disabilities,
20including encouraging non-minority-owned non-minority owned
21firms to use other service firms owned by minorities, women
22females, and persons with disabilities as subcontractors when
23the opportunities arise, (iii) state any recommendations made
24by the Council to each State agency and public institution of
25higher education to increase participation by the use of
26service firms owned by minorities, women females, and persons

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1with disabilities, and (iv) include the following:
2 (A) For insurance services: the names of the insurance
3 brokers or claims consultants used, the total of risk
4 managed by each State agency and public institution of
5 higher education by insurance brokers, the total
6 commissions, fees paid, or both, the lines or insurance
7 policies placed, and the amount of premiums placed; and the
8 percentage of the risk managed by insurance brokers, the
9 percentage of total commission, fees paid, or both, the
10 lines or insurance policies placed, and the amount of
11 premiums placed with each by the insurance brokers owned by
12 minorities, women females, and persons with disabilities
13 by each State agency and public institution of higher
14 education.
15 (B) For investment management services: the names of
16 the investment managers used, the total funds under
17 management of investment managers; the total commissions,
18 fees paid, or both; the total and percentage of funds under
19 management of emerging investment managers owned by
20 minorities, women females, and persons with disabilities,
21 including the total and percentage of total commissions,
22 fees paid, or both by each State agency and public
23 institution of higher education.
24 (C) The names of service firms, the percentage and
25 total dollar amount paid for professional services by
26 category by each State agency and public institution of

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1 higher education.
2 (D) The names of service firms, the percentage and
3 total dollar amount paid for services by category to firms
4 owned by minorities, women females, and persons with
5 disabilities by each State agency and public institution of
6 higher education.
7 (E) The total number of contracts awarded for services
8 by category and the total number of contracts awarded to
9 firms owned by minorities, women females, and persons with
10 disabilities by each State agency and public institution of
11 higher education.
12 (5) For community college districts, the Business
13Enterprise Council shall only report the following information
14for each community college district: (i) the name of the
15community colleges in the district, (ii) the name and contact
16information of a person at each community college appointed to
17be the single point of contact for vendors owned by minorities,
18women females, or persons with disabilities, (iii) the policy
19of the community college district concerning certified
20vendors, (iv) the certifications recognized by the community
21college district for determining whether a business is owned or
22controlled by a minority, woman female, or person with a
23disability, (v) outreach efforts conducted by the community
24college district to increase the use of certified vendors, (vi)
25the total expenditures by the community college district in the
26prior fiscal year in the divisions of work specified in

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1paragraphs (a), (b), and (c) of subsection (1) of this Section
2and the amount paid to certified vendors in those divisions of
3work, and (vii) the total number of contracts entered into for
4the divisions of work specified in paragraphs (a), (b), and (c)
5of subsection (1) of this Section and the total number of
6contracts awarded to certified vendors providing these
7services to the community college district. The Business
8Enterprise Council shall not make any utilization reports under
9this Act for community college districts for Fiscal Year 2015
10and Fiscal Year 2016, but shall make the report required by
11this subsection for Fiscal Year 2017 and for each fiscal year
12thereafter. The Business Enterprise Council shall report the
13information in items (i), (ii), (iii), and (iv) of this
14subsection beginning in September of 2016. The Business
15Enterprise Council may collect the data needed to make its
16report from the Illinois Community College Board.
17 (6) The status of the utilization of services shall be
18discussed at each of the regularly scheduled Business
19Enterprise Council meetings. Time shall be allotted for the
20Council to receive, review, and discuss the progress of the use
21of service firms owned by minorities, women females, and
22persons with disabilities by each State agency and public
23institution of higher education; and any evidence regarding
24past or present racial, ethnic, or gender-based discrimination
25which directly impacts a State agency or public institution of
26higher education contracting with such firms. If after

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1reviewing such evidence the Council finds that there is or has
2been such discrimination against a specific group, race or sex,
3the Council shall establish sheltered markets or adjust
4existing sheltered markets tailored to address the Council's
5specific findings for the divisions of work specified in
6paragraphs (a), (b), and (c) of subsection (1) of this Section.
7(Source: P.A. 99-462, eff. 8-25-15; 99-642, eff. 7-28-16.)
8 (30 ILCS 575/5) (from Ch. 127, par. 132.605)
9 (Section scheduled to be repealed on June 30, 2020)
10 Sec. 5. Business Enterprise Council.
11 (1) To help implement, monitor and enforce the goals of
12this Act, there is created the Business Enterprise Council for
13Minorities, Women Females, and Persons with Disabilities,
14hereinafter referred to as the Council, composed of the
15Secretary of Human Services and the Directors of the Department
16of Human Rights, the Department of Commerce and Economic
17Opportunity, the Department of Central Management Services,
18the Department of Transportation and the Capital Development
19Board, or their duly appointed representatives. Ten
20individuals representing businesses that are minority-owned
21minority or women-owned female owned or owned by persons with
22disabilities, 2 individuals representing the business
23community, and a representative of public institutions of
24higher education shall be appointed by the Governor. These
25members shall serve 2 year terms and shall be eligible for

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1reappointment. Any vacancy occurring on the Council shall also
2be filled by the Governor. Any member appointed to fill a
3vacancy occurring prior to the expiration of the term for which
4his predecessor was appointed shall be appointed for the
5remainder of such term. Members of the Council shall serve
6without compensation but shall be reimbursed for any ordinary
7and necessary expenses incurred in the performance of their
8duties.
9 The Director of the Department of Central Management
10Services shall serve as the Council chairperson and shall
11select, subject to approval of the council, a Secretary
12responsible for the operation of the program who shall serve as
13the Division Manager of the Business Enterprise for Minorities,
14Women Females, and Persons with Disabilities Division of the
15Department of Central Management Services.
16 The Director of each State agency and the chief executive
17officer of each public institutions of higher education shall
18appoint a liaison to the Council. The liaison shall be
19responsible for submitting to the Council any reports and
20documents necessary under this Act.
21 (2) The Council's authority and responsibility shall be to:
22 (a) Devise a certification procedure to assure that
23 businesses taking advantage of this Act are legitimately
24 classified as businesses owned by minorities, women
25 females, or persons with disabilities.
26 (b) Maintain a list of all businesses legitimately

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1 classified as businesses owned by minorities, women
2 females, or persons with disabilities to provide to State
3 agencies and public institutions of higher education.
4 (c) Review rules and regulations for the
5 implementation of the program for businesses owned by
6 minorities, women females, and persons with disabilities.
7 (d) Review compliance plans submitted by each State
8 agency and public institutions of higher education
9 pursuant to this Act.
10 (e) Make annual reports as provided in Section 8f to
11 the Governor and the General Assembly on the status of the
12 program.
13 (f) Serve as a central clearinghouse for information on
14 State contracts, including the maintenance of a list of all
15 pending State contracts upon which businesses owned by
16 minorities, women females, and persons with disabilities
17 may bid. At the Council's discretion, maintenance of the
18 list may include 24-hour electronic access to the list
19 along with the bid and application information.
20 (g) Establish a toll free telephone number to
21 facilitate information requests concerning the
22 certification process and pending contracts.
23 (3) No premium bond rate of a surety company for a bond
24required of a business owned by a minority, woman female, or
25person with a disability bidding for a State contract shall be
26higher than the lowest rate charged by that surety company for

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1a similar bond in the same classification of work that would be
2written for a business not owned by a minority, woman female,
3or person with a disability.
4 (4) Any Council member who has direct financial or personal
5interest in any measure pending before the Council shall
6disclose this fact to the Council and refrain from
7participating in the determination upon such measure.
8 (5) The Secretary shall have the following duties and
9responsibilities:
10 (a) To be responsible for the day-to-day operation of
11 the Council.
12 (b) To serve as a coordinator for all of the State's
13 programs for businesses owned by minorities, women
14 females, and persons with disabilities and as the
15 information and referral center for all State initiatives
16 for businesses owned by minorities, women females, and
17 persons with disabilities.
18 (c) To establish an enforcement procedure whereby the
19 Council may recommend to the appropriate State legal
20 officer that the State exercise its legal remedies which
21 shall include (1) termination of the contract involved, (2)
22 prohibition of participation by the respondent in public
23 contracts for a period not to exceed 3 years one year, (3)
24 imposition of a penalty not to exceed any profit acquired
25 as a result of violation, or (4) any combination thereof.
26 Such procedures shall require prior approval by Council.

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1 (d) To devise appropriate policies, regulations and
2 procedures for including participation by businesses owned
3 by minorities, women females, and persons with
4 disabilities as prime contractors including, but not
5 limited to, (i) encouraging the inclusions of qualified
6 businesses owned by minorities, women females, and persons
7 with disabilities on solicitation lists, (ii)
8 investigating the potential of blanket bonding programs
9 for small construction jobs, (iii) investigating and
10 making recommendations concerning the use of the sheltered
11 market process.
12 (e) To devise procedures for the waiver of the
13 participation goals in appropriate circumstances.
14 (f) To accept donations and, with the approval of the
15 Council or the Director of Central Management Services,
16 grants related to the purposes of this Act; to conduct
17 seminars related to the purpose of this Act and to charge
18 reasonable registration fees; and to sell directories,
19 vendor lists and other such information to interested
20 parties, except that forms necessary to become eligible for
21 the program shall be provided free of charge to a business
22 or individual applying for the program.
23(Source: P.A. 99-462, eff. 8-25-15.)
24 (30 ILCS 575/6) (from Ch. 127, par. 132.606)
25 (Section scheduled to be repealed on June 30, 2020)

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1 Sec. 6. Agency compliance plans. Each State agency and
2public institutions of higher education under the jurisdiction
3of this Act shall file with the Council an annual compliance
4plan which shall outline the goals of the State agency or
5public institutions of higher education for contracting with
6businesses owned by minorities, women females, and persons with
7disabilities for the then current fiscal year, the manner in
8which the agency intends to reach these goals and a timetable
9for reaching these goals. The Council shall review and approve
10the plan of each State agency and public institutions of higher
11education and may reject any plan that does not comply with
12this Act or any rules or regulations promulgated pursuant to
13this Act.
14 (a) The compliance plan shall also include, but not be
15limited to, (1) a policy statement, signed by the State agency
16or public institution of higher education head, expressing a
17commitment to encourage the use of businesses owned by
18minorities, women females, and persons with disabilities, (2)
19the designation of the liaison officer provided for in Section
205 of this Act, (3) procedures to distribute to potential
21contractors and vendors the list of all businesses legitimately
22classified as businesses owned by minorities, women females,
23and persons with disabilities and so certified under this Act,
24(4) procedures to set separate contract goals on specific prime
25contracts and purchase orders with subcontracting
26possibilities based upon the type of work or services and

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1subcontractor availability, (5) procedures to assure that
2contractors and vendors make good faith efforts to meet
3contract goals, (6) procedures for contract goal exemption,
4modification and waiver, and (7) the delineation of separate
5contract goals for businesses owned by minorities, women
6females, and persons with disabilities.
7 (b) Approval of the compliance plans shall include such
8delegation of responsibilities to the requesting State agency
9or public institution of higher education as the Council deems
10necessary and appropriate to fulfill the purpose of this Act.
11Such responsibilities may include, but need not be limited to
12those outlined in subsections (1), (2) and (3) of Section 7,
13and paragraph (a) of Section 8, and Section 8a of this Act.
14 (c) Each State agency and public institution of higher
15education under the jurisdiction of this Act shall file with
16the Council an annual report of its utilization of businesses
17owned by minorities, women females, and persons with
18disabilities during the preceding fiscal year including lapse
19period spending and a mid-fiscal year report of its utilization
20to date for the then current fiscal year. The reports shall
21include a self-evaluation of the efforts of the State agency or
22public institution of higher education to meet its goals under
23the Act.
24 (d) Notwithstanding any provisions to the contrary in this
25Act, any State agency or public institution of higher education
26which administers a construction program, for which federal law

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1or regulations establish standards and procedures for the
2utilization of minority-owned and women-owned businesses and
3disadvantaged businesses minority, disadvantaged, and
4female-owned business, shall implement a disadvantaged
5business enterprise program to include minority-owned and
6women-owned businesses and disadvantaged businesses minority,
7disadvantaged and female-owned businesses, using the federal
8standards and procedures for the establishment of goals and
9utilization procedures for the State-funded, as well as the
10federally assisted, portions of the program. In such cases,
11these goals shall not exceed those established pursuant to the
12relevant federal statutes or regulations. Notwithstanding the
13provisions of Section 8b, the Illinois Department of
14Transportation is authorized to establish sheltered markets
15for the State-funded portions of the program consistent with
16federal law and regulations. Additionally, a compliance plan
17which is filed by such State agency or public institution of
18higher education pursuant to this Act, which incorporates
19equivalent terms and conditions of its federally-approved
20compliance plan, shall be deemed approved under this Act.
21(Source: P.A. 99-462, eff. 8-25-15.)
22 (30 ILCS 575/6a) (from Ch. 127, par. 132.606a)
23 (Section scheduled to be repealed on June 30, 2020)
24 Sec. 6a. Notice of contracts to Council. Except in case of
25emergency as defined in the Illinois Procurement Code, or as

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1authorized by rule promulgated by the Department of Central
2Management Services, each agency and public institution of
3higher education under the jurisdiction of this Act shall
4notify the Secretary of the Council of proposed contracts for
5professional and artistic services and provide the information
6in the form and detail as required by rule promulgated by the
7Department of Central Management Services. Notification may be
8made through direct written communication to the Secretary to
9be received at least 14 days before execution of the contract
10(or the solicitation response date, if applicable) or by
11advertising in the official State newspaper for at least 3
12days, the last of which must be at least 10 days after the
13first publication. The agency or public institution of higher
14education must consider any vendor referred by the Secretary
15before execution of the contract. The provisions of this
16Section shall not apply to any State agency or public
17institution of higher education that has awarded contracts for
18professional and artistic services to businesses owned by
19minorities, women females, and persons with disabilities
20totaling totalling in the aggregate $40,000,000 or more during
21the preceding fiscal year.
22(Source: P.A. 99-462, eff. 8-25-15.)
23 (30 ILCS 575/7) (from Ch. 127, par. 132.607)
24 (Section scheduled to be repealed on June 30, 2020)
25 Sec. 7. Exemptions; and waivers; publication of data.

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1 (1) Individual contract exemptions. The Council, on its own
2initiative or at the request of the affected agency, public
3institution of higher education, or recipient of a grant or
4loan of State funds of $250,000 or more complying with Section
545 of the State Finance Act, may permit an individual contract
6or contract package, (related contracts being bid or awarded
7simultaneously for the same project or improvements) be made
8wholly or partially exempt from State contracting goals for
9businesses owned by minorities, women females, and persons with
10disabilities prior to the advertisement for bids or
11solicitation of proposals whenever there has been a
12determination, reduced to writing and based on the best
13information available at the time of the determination, that
14there is an insufficient number of businesses owned by
15minorities, women females, and persons with disabilities to
16ensure adequate competition and an expectation of reasonable
17prices on bids or proposals solicited for the individual
18contract or contract package in question.
19 (2) Class exemptions.
20 (a) Creation. The Council, on its own initiative or at
21 the request of the affected agency or public institution of
22 higher education, may permit an entire class of contracts
23 be made exempt from State contracting goals for businesses
24 owned by minorities, women females, and persons with
25 disabilities whenever there has been a determination,
26 reduced to writing and based on the best information

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1 available at the time of the determination, that there is
2 an insufficient number of qualified businesses owned by
3 minorities, women females, and persons with disabilities
4 to ensure adequate competition and an expectation of
5 reasonable prices on bids or proposals within that class.
6 (b) Limitation. Any such class exemption shall not be
7 permitted for a period of more than one year at a time.
8 (3) Waivers. Where a particular contract requires a
9contractor to meet a goal established pursuant to this Act, the
10contractor shall have the right to request a waiver from such
11requirements. The Council shall grant the waiver where the
12contractor demonstrates that there has been made a good faith
13effort to comply with the goals for participation by businesses
14owned by minorities, women females, and persons with
15disabilities.
16 (4) Conflict with other laws. In the event that any State
17contract, which otherwise would be subject to the provisions of
18this Act, is or becomes subject to federal laws or regulations
19which conflict with the provisions of this Act or actions of
20the State taken pursuant hereto, the provisions of the federal
21laws or regulations shall apply and the contract shall be
22interpreted and enforced accordingly.
23 (5) Each chief procurement officer, as defined in the
24Illinois Procurement Code, shall maintain on his or her
25official Internet website a database of waivers granted under
26this Section with respect to contracts under his or her

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1jurisdiction. The database, which shall be updated
2periodically as necessary, shall be searchable by contractor
3name and by contracting State agency.
4 (6) Each chief procurement officer, as defined by the
5Illinois Procurement Code, shall maintain on its website a list
6of all firms that have been prohibited from bidding, offering,
7or entering into a contract with the State of Illinois as a
8result of violations of this Act.
9 Each public notice required by law of the award of a State
10contract shall include for each bid or offer submitted for that
11contract the following: (i) the bidder's or offeror's name,
12(ii) the bid amount, (iii) the name or names of the certified
13firms identified in the bidder's or offeror's submitted
14utilization plan, and (iv) (iii) the bid's amount and
15percentage of the contract awarded to businesses owned by
16minorities, women, and persons with disabilities identified in
17the of disadvantaged business utilization plan , and (iv) the
18bid's percentage of business enterprise program utilization
19plan.
20(Source: P.A. 99-462, eff. 8-25-15.)
21 (30 ILCS 575/8) (from Ch. 127, par. 132.608)
22 (Section scheduled to be repealed on June 30, 2020)
23 Sec. 8. Enforcement.
24 (1) The Council shall make such findings, recommendations
25and proposals to the Governor as are necessary and appropriate

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1to enforce this Act. If, as a result of its monitoring
2activities, the Council determines that its goals and policies
3are not being met by any State agency or public institution of
4higher education, the Council may recommend any or all of the
5following actions:
6 (a) Establish enforcement procedures whereby the
7 Council may recommend to the appropriate State agency,
8 public institutions of higher education, or law
9 enforcement officer that legal or administrative remedies
10 be initiated for violations of contract provisions or rules
11 issued hereunder or by a contracting State agency or public
12 institutions of higher education. State agencies and
13 public institutions of higher education shall be
14 authorized to adopt remedies for such violations which
15 shall include (1) termination of the contract involved, (2)
16 prohibition of participation of the respondents in public
17 contracts for a period not to exceed one year, (3)
18 imposition of a penalty not to exceed any profit acquired
19 as a result of violation, or (4) any combination thereof.
20 (b) If the Council concludes that a compliance plan
21 submitted under Section 6 is unlikely to produce the
22 participation goals for businesses owned by minorities,
23 women females, and persons with disabilities within the
24 then current fiscal year, the Council may recommend that
25 the State agency or public institution of higher education
26 revise its plan to provide additional opportunities for

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1 participation by businesses owned by minorities, women
2 females, and persons with disabilities. Such recommended
3 revisions may include, but shall not be limited to, the
4 following:
5 (i) assurances of stronger and better focused
6 solicitation efforts to obtain more businesses owned
7 by minorities, women females, and persons with
8 disabilities as potential sources of supply;
9 (ii) division of job or project requirements, when
10 economically feasible, into tasks or quantities to
11 permit participation of businesses owned by
12 minorities, women females, and persons with
13 disabilities;
14 (iii) elimination of extended experience or
15 capitalization requirements, when programmatically
16 feasible, to permit participation of businesses owned
17 by minorities, women females, and persons with
18 disabilities;
19 (iv) identification of specific proposed contracts
20 as particularly attractive or appropriate for
21 participation by businesses owned by minorities, women
22 females, and persons with disabilities, such
23 identification to result from and be coupled with the
24 efforts of subparagraphs (i) through (iii);
25 (v) implementation of those regulations
26 established for the use of the sheltered market

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1 process.
2 (2) State agencies and public institutions of higher
3education shall review a vendor's compliance with its
4utilization plan and the terms of its contract. Without
5limitation, a vendor's failure to comply with its contractual
6commitments as contained in the utilization plan; failure to
7cooperate in providing information regarding its compliance
8with its utilization plan; or the provision of false or
9misleading information or statements concerning compliance,
10certification status, or eligibility of the Business
11Enterprise Program-certified vendor, good faith efforts, or
12any other material fact or representation shall constitute a
13material breach of the contract and entitle the State agency or
14public institution of higher education to declare a default,
15terminate the contract, or exercise those remedies provided for
16in the contract, at law, or in equity.
17 (3) A vendor shall be in breach of the contract and may be
18subject to penalties for failure to meet contract goals
19established under this Act, unless the vendor can show that it
20made good faith efforts to meet the contract goals.
21(Source: P.A. 99-462, eff. 8-25-15.)
22 (30 ILCS 575/8a) (from Ch. 127, par. 132.608a)
23 (Section scheduled to be repealed on June 30, 2020)
24 Sec. 8a. Advance and progress payments. Any contract
25awarded to a business owned by a minority, woman female, or

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1person with a disability pursuant to this Act may contain a
2provision for advance or progress payments, or both, except
3that a State construction contract awarded to a minority-owned
4minority or women-owned female owned business pursuant to this
5Act may contain a provision for progress payments but may not
6contain a provision for advance payments.
7(Source: P.A. 88-597, eff. 8-28-94.)
8 (30 ILCS 575/8b) (from Ch. 127, par. 132.608b)
9 (Section scheduled to be repealed on June 30, 2020)
10 Sec. 8b. Scheduled council meetings; sheltered market. The
11Council shall conduct regular meetings to carry out its
12responsibilities under this Act. At each of the regularly
13scheduled meetings, time shall be allocated for the Council to
14receive, review and discuss any evidence regarding past or
15present racial, ethnic or gender based discrimination which
16directly impacts State contracting with businesses owned by
17minorities, women females, and persons with disabilities. If
18after reviewing such evidence the Council finds that there is
19or has been such discrimination against a specific group, race
20or sex, the Council shall establish sheltered markets or adjust
21existing sheltered markets tailored to address the Council's
22specific findings.
23 "Sheltered market" shall mean a procurement procedure
24whereby certain contracts are selected and specifically set
25aside for businesses owned by minorities, women females, and

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1persons with disabilities on a competitive bid or negotiated
2basis.
3 As part of the annual report which the Council must file
4pursuant to paragraph (e) of subsection (2) of Section 5, the
5Council shall report on any findings made pursuant to this
6Section.
7(Source: P.A. 88-597, eff. 8-28-94.)
8 (30 ILCS 575/8f)
9 (Section scheduled to be repealed on June 30, 2020)
10 Sec. 8f. Annual report. The Council shall file no later
11than March 1 of each year, an annual report that shall detail
12the level of achievement toward the goals specified in this Act
13over the 3 most recent fiscal years. The annual report shall
14include, but need not be limited to the following:
15 (1) a summary detailing expenditures subject to the
16 goals, the actual goals specified, and the goals attained
17 by each State agency and public institution of higher
18 education;
19 (2) a summary of the number of contracts awarded and
20 the average contract amount by each State agency and public
21 institution of higher education;
22 (3) an analysis of the level of overall goal
23 achievement concerning purchases from minority-owned
24 minority businesses, women-owned female-owned businesses,
25 and businesses owned by persons with disabilities;

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1 (4) an analysis of the number of businesses owned by
2 minorities, women females, and persons with disabilities
3 that are certified under the program as well as the number
4 of those businesses that received State procurement
5 contracts; and
6 (5) a summary of the number of contracts awarded to
7 businesses with annual gross sales of less than $1,000,000;
8 of $1,000,000 or more, but less than $5,000,000; of
9 $5,000,000 or more, but less than $10,000,000; and of
10 $10,000,000 or more.
11(Source: P.A. 99-462, eff. 8-25-15.)
12 (30 ILCS 575/8g new)
13 Sec. 8g. Business Enterprise Program Council reports.
14 (a) The Department of Central Management Services shall
15provide a report to the Council identifying all State agency
16non-construction solicitations that exceed $20,000,000 and
17that have less than a 20% established goal prior to
18publication.
19 (b) The Department of Central Management Services shall
20provide a report to the Council identifying all State agency
21non-construction contracts that exceed $20,000,000 prior to
22award. The report shall contain the following: (i) the name of
23the proposed awardee, (ii) the total bid amount, (iii) the
24established Business Enterprise Program goal, (iv) the dollar
25amount and percentage of participation by businesses owned by

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1minorities, women, and persons with disabilities, and (v) the
2names of the certified firms identified in the utilization
3plan.
4 (30 ILCS 575/8h new)
5 Sec. 8h. Encouragement for telecom and communications
6entities to submit supplier diversity reports.
7 (1) The following entities that do business in Illinois or
8serve Illinois customers shall be subject to this Section:
9 (i) all local exchange telecommunications carriers
10 with at least 35,000 subscriber access lines;
11 (ii) cable and video providers, as defined in Section
12 21-20l of the Public Utilities Act;
13 (iii) interconnected VoIP providers, as defined in
14 Section 13-235 of the Public Utilities Act;
15 (iv) wireless service providers;
16 (v) broadband internet access services providers; and
17 (vi) any other entity that provides messaging, voice,
18 or video services via the Internet or a social media
19 platform.
20 (2) Each entity subject to this Section may submit to the
21Illinois Commerce Commission and the Business Enterprise
22Council an annual report by April 15, 20l8, and every April 15
23thereafter, which provides, for the previous calendar year,
24information and data on diversity goals, and progress toward
25achieving those goals, by certified businesses owned by

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1minorities, women, persons with disabilities, and
2service-disabled veterans, provided that if the entity does not
3track such information and data for businesses owned by
4service-disabled veterans, the entity may provide information
5and data for businesses owned by veterans.
6 The diversity report shall include the following:
7 (i) Overall annual spending on all such certified
8 businesses.
9 (ii) A narrative description of the entity's supplier
10 diversity goals and plans for meeting those goals.
11 (iii) The entity's best estimate of its annual spending
12 in professional services and spending with certified
13 businesses owned by minorities, women, persons with
14 disabilities, and service-disabled veterans (or veterans,
15 if the reporting entity does not track spending with
16 service-disabled veterans), including, but not limited to,
17 the following professional services categories:
18 accounting; architecture and engineering; consulting;
19 information technology; insurance; financial, legal, and
20 marketing services; and other professional services. The
21 diversity report shall also include the entity's overall
22 annual spending in the listed professional service
23 categories. For the diversity reports due on April 15, 2018
24 and April 15, 2019, the information on annual spending with
25 certified businesses for professional services required by
26 this Section may be provided for all professional services

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1 on an aggregated basis.
2 (iv) Beginning with the diversity report due on April
3 15, 2020, the total number and percentage of women and
4 minorities that provided services for each construction
5 project in the State.
6 An entity subject to this Section which is part of an
7affiliated group of entities may provide information for the
8affiliated group as a whole.
9 (3) Any entity that is subject to this Section that does
10not submit a report shall be reported by the Business
11Enterprise Council to each chief procurement officer. Upon
12receiving a report from the Business Enterprise Council, the
13chief procurement officer shall prohibit any entities that do
14not submit a report from bidding on State contracts for a
15period of one year beginning the first day of the following
16fiscal year and post on its respective bulletin the names of
17all entities that fail to comply with the provisions of this
18Section.
19 (4) A vendor may appeal any of the actions taken pursuant
20to this Section in the same manner as a vendor denied
21certification, by following the appeal procedures in the
22administrative rules created pursuant to this Act.
23 (30 ILCS 575/8i new)
24 Sec. 8i. Renewals. State agencies and public institutions
25of higher education shall:

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1 (a) review all existing contracts prior to the time of
2 renewal to determine if the diversity goal is being met by
3 the prime vendor;
4 (b) review all existing contracts prior to the time of
5 renewal to determine if the contract goal should be
6 increased based upon market conditions and availability of
7 firms certified pursuant to this Act;
8 (c) review existing contracts with no contract goal to
9 determine if a goal can be established; if it is determined
10 that a diversity goal can be established, the State agency
11 or public institution of higher education shall encourage
12 the prime vendor to amend the contract to include the
13 contract goal; prime contractors shall be required to
14 complete a utilization plan to demonstrate how it intends
15 to meet the diversity goal; and
16 (e) review renewals at least 6 months prior to renewal
17 to allow adequate time to rebid if it is determined that
18 the prime contractor has not demonstrated good faith
19 efforts towards meeting the diversity goal.
20 All renewals shall be subject to any amendments made to
21this Act, or amendments made to any administrative rules
22adopted under this Act, that become effective prior to the date
23of renewal.
24 The requirements of this Section shall not apply to
25construction and construction-related services procurements.
26 This Section is operative on and after January 1, 2018.

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1 Section 75. The Film Production Services Tax Credit Act of
22008 is amended by changing Sections 30 and 45 as follows:
3 (35 ILCS 16/30)
4 Sec. 30. Review of application for accredited production
5certificate.
6 (a) In determining whether to issue an accredited
7production certificate, the Department must determine that a
8preponderance of the following conditions exist:
9 (1) The applicant's production intends to make the
10 expenditure in the State required for certification.
11 (2) The applicant's production is economically sound
12 and will benefit the people of the State of Illinois by
13 increasing opportunities for employment and strengthen the
14 economy of Illinois.
15 (3) The applicant has filed a diversity plan with the
16 Department outlining specific goals (i) for hiring
17 minority persons and women females, as defined in the
18 Business Enterprise for Minorities, Women Females, and
19 Persons with Disabilities Act, and (ii) for using vendors
20 receiving certification under the Business Enterprise for
21 Minorities, Women Females, and Persons with Disabilities
22 Act; the Department has approved the plan as meeting the
23 requirements established by the Department; and the
24 Department has verified that the applicant has met or made

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1 good-faith efforts in achieving those goals. The
2 Department must adopt any rules that are necessary to
3 ensure compliance with the provisions of this item (3) and
4 that are necessary to require that the applicant's plan
5 reflects the diversity of this State.
6 (4) The applicant's production application indicates
7 whether the applicant intends to participate in training,
8 education, and recruitment programs that are organized in
9 cooperation with Illinois colleges and universities, labor
10 organizations, and the motion picture industry and are
11 designed to promote and encourage the training and hiring
12 of Illinois residents who represent the diversity of the
13 Illinois population.
14 (5) That, if not for the credit, the applicant's
15 production would not occur in Illinois, which may be
16 demonstrated by any means including, but not limited to,
17 evidence that the applicant has multi-state or
18 international location options and could reasonably and
19 efficiently locate outside of the State, or demonstration
20 that at least one other state or nation is being considered
21 for the production, or evidence that the receipt of the
22 credit is a major factor in the applicant's decision and
23 that without the credit the applicant likely would not
24 create or retain jobs in Illinois, or demonstration that
25 receiving the credit is essential to the applicant's
26 decision to create or retain new jobs in the State.

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1 (6) Awarding the credit will result in an overall
2 positive impact to the State, as determined by the
3 Department using the best available data.
4 (b) If any of the provisions in this Section conflict with
5any existing collective bargaining agreements, the terms and
6conditions of those collective bargaining agreements shall
7control.
8(Source: P.A. 95-720, eff. 5-27-08.)
9 (35 ILCS 16/45)
10 Sec. 45. Evaluation of tax credit program; reports to the
11General Assembly.
12 (a) The Department shall evaluate the tax credit program.
13The evaluation must include an assessment of the effectiveness
14of the program in creating and retaining new jobs in Illinois
15and of the revenue impact of the program, and may include a
16review of the practices and experiences of other states or
17nations with similar programs. Upon completion of this
18evaluation, the Department shall determine the overall success
19of the program, and may make a recommendation to extend,
20modify, or not extend the program based on this evaluation.
21 (b) At the end of each fiscal quarter, the Department must
22submit to the General Assembly a report that includes, without
23limitation, the following information:
24 (1) the economic impact of the tax credit program,
25 including the number of jobs created and retained,

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1 including whether the job positions are entry level,
2 management, talent-related, vendor-related, or
3 production-related;
4 (2) the amount of film production spending brought to
5 Illinois, including the amount of spending and type of
6 Illinois vendors hired in connection with an accredited
7 production; and
8 (3) an overall picture of whether the human
9 infrastructure of the motion picture industry in Illinois
10 reflects the geographical, racial and ethnic, gender, and
11 income-level diversity of the State of Illinois.
12 (c) At the end of each fiscal year, the Department must
13submit to the General Assembly a report that includes, without
14limitation, the following information:
15 (1) an identification of each vendor that provided
16 goods or services that were included in an accredited
17 production's Illinois production spending;
18 (2) the amount paid to each identified vendor by the
19 accredited production;
20 (3) for each identified vendor, a statement as to
21 whether the vendor is a minority-owned minority owned
22 business or a women-owned female owned business, as defined
23 under Section 2 of the Business Enterprise for Minorities,
24 Women Females, and Persons with Disabilities Act; and
25 (4) a description of any steps taken by the Department
26 to encourage accredited productions to use vendors who are

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1 a minority-owned minority owned business or a women-owned
2 female owned business.
3(Source: P.A. 95-720, eff. 5-27-08.)
4 Section 80. The Live Theater Production Tax Credit Act is
5amended by changing Sections 10-30 and 10-50 as follows:
6 (35 ILCS 17/10-30)
7 Sec. 10-30. Review of application for accredited theater
8production certificate.
9 (a) The Department shall issue an accredited theater
10production certificate to an applicant if it finds that by a
11preponderance the following conditions exist:
12 (1) the applicant intends to make the expenditure in
13 the State required for certification of the accredited
14 theater production;
15 (2) the applicant's accredited theater production is
16 economically sound and will benefit the people of the State
17 of Illinois by increasing opportunities for employment and
18 will strengthen the economy of Illinois;
19 (3) the following requirements related to the
20 implementation of a diversity plan have been met: (i) the
21 applicant has filed with the Department a diversity plan
22 outlining specific goals for hiring Illinois labor
23 expenditure eligible minority persons and women females,
24 as defined in the Business Enterprise for Minorities, Women

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1 Females, and Persons with Disabilities Act, and for using
2 vendors receiving certification under the Business
3 Enterprise for Minorities, Women Females, and Persons with
4 Disabilities Act; (ii) the Department has approved the plan
5 as meeting the requirements established by the Department
6 and verified that the applicant has met or made good faith
7 efforts in achieving those goals; and (iii) the Department
8 has adopted any rules that are necessary to ensure
9 compliance with the provisions set forth in this paragraph
10 and necessary to require that the applicant's plan reflects
11 the diversity of the population of this State;
12 (4) the applicant's accredited theater production
13 application indicates whether the applicant intends to
14 participate in training, education, and recruitment
15 programs that are organized in cooperation with Illinois
16 colleges and universities, labor organizations, and the
17 holders of accredited theater production certificates and
18 are designed to promote and encourage the training and
19 hiring of Illinois residents who represent the diversity of
20 Illinois;
21 (5) if not for the tax credit award, the applicant's
22 accredited theater production would not occur in Illinois,
23 which may be demonstrated by any means, including, but not
24 limited to, evidence that: (i) the applicant, presenter,
25 owner, or licensee of the production rights has other state
26 or international location options at which to present the

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1 production and could reasonably and efficiently locate
2 outside of the State, (ii) at least one other state or
3 nation could be considered for the production, (iii) the
4 receipt of the tax award credit is a major factor in the
5 decision of the applicant, presenter, production owner or
6 licensee as to where the production will be presented and
7 that without the tax credit award the applicant likely
8 would not create or retain jobs in Illinois, or (iv)
9 receipt of the tax credit award is essential to the
10 applicant's decision to create or retain new jobs in the
11 State; and
12 (6) the tax credit award will result in an overall
13 positive impact to the State, as determined by the
14 Department using the best available data.
15 (b) If any of the provisions in this Section conflict with
16any existing collective bargaining agreements, the terms and
17conditions of those collective bargaining agreements shall
18control.
19 (c) The Department shall act expeditiously regarding
20approval of applications for accredited theater production
21certificates so as to accommodate the pre-production work,
22booking, commencement of ticket sales, determination of
23performance dates, load in, and other matters relating to the
24live theater productions for which approval is sought.
25(Source: P.A. 97-636, eff. 6-1-12.)

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1 (35 ILCS 17/10-50)
2 Sec. 10-50. Live theater tax credit award program
3evaluation and reports.
4 (a) The Department's live theater tax credit award
5evaluation must include:
6 (i) an assessment of the effectiveness of the program
7 in creating and retaining new jobs in Illinois;
8 (ii) an assessment of the revenue impact of the
9 program;
10 (iii) in the discretion of the Department, a review of
11 the practices and experiences of other states or nations
12 with similar programs; and
13 (iv) an assessment of the overall success of the
14 program. The Department may make a recommendation to
15 extend, modify, or not extend the program based on the
16 evaluation.
17 (b) At the end of each fiscal quarter, the Department shall
18submit to the General Assembly a report that includes, without
19limitation:
20 (i) an assessment of the economic impact of the
21 program, including the number of jobs created and retained,
22 and whether the job positions are entry level, management,
23 vendor, or production related;
24 (ii) the amount of accredited theater production
25 spending brought to Illinois, including the amount of
26 spending and type of Illinois vendors hired in connection

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1 with an accredited theater production; and
2 (iii) a determination of whether those receiving
3 qualifying Illinois labor expenditure salaries or wages
4 reflect the geographical, racial and ethnic, gender, and
5 income level diversity of the State of Illinois.
6 (c) At the end of each fiscal year, the Department shall
7submit to the General Assembly a report that includes, without
8limitation:
9 (i) the identification of each vendor that provided
10 goods or services that were included in an accredited
11 theater production's Illinois production spending;
12 (ii) a statement of the amount paid to each identified
13 vendor by the accredited theater production and whether the
14 vendor is a minority-owned minority or women-owned female
15 owned business as defined in Section 2 of the Business
16 Enterprise for Minorities, Women Females, and Persons with
17 Disabilities Act; and
18 (iii) a description of the steps taken by the
19 Department to encourage accredited theater productions to
20 use vendors who are minority-owned minority or women-owned
21 female owned businesses.
22(Source: P.A. 97-636, eff. 6-1-12.)
23 Section 85. The Illinois Pension Code is amended by
24changing Sections 1-109.1 and 1-113.21 as follows:

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1 (40 ILCS 5/1-109.1) (from Ch. 108 1/2, par. 1-109.1)
2 Sec. 1-109.1. Allocation and delegation of fiduciary
3duties.
4 (1) Subject to the provisions of Section 22A-113 of this
5Code and subsections (2) and (3) of this Section, the board of
6trustees of a retirement system or pension fund established
7under this Code may:
8 (a) Appoint one or more investment managers as
9 fiduciaries to manage (including the power to acquire and
10 dispose of) any assets of the retirement system or pension
11 fund; and
12 (b) Allocate duties among themselves and designate
13 others as fiduciaries to carry out specific fiduciary
14 activities other than the management of the assets of the
15 retirement system or pension fund.
16 (2) The board of trustees of a pension fund established
17under Article 5, 6, 8, 9, 10, 11, 12 or 17 of this Code may not
18transfer its investment authority, nor transfer the assets of
19the fund to any other person or entity for the purpose of
20consolidating or merging its assets and management with any
21other pension fund or public investment authority, unless the
22board resolution authorizing such transfer is submitted for
23approval to the contributors and pensioners of the fund at
24elections held not less than 30 days after the adoption of such
25resolution by the board, and such resolution is approved by a
26majority of the votes cast on the question in both the

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1contributors election and the pensioners election. The
2election procedures and qualifications governing the election
3of trustees shall govern the submission of resolutions for
4approval under this paragraph, insofar as they may be made
5applicable.
6 (3) Pursuant to subsections (h) and (i) of Section 6 of
7Article VII of the Illinois Constitution, the investment
8authority of boards of trustees of retirement systems and
9pension funds established under this Code is declared to be a
10subject of exclusive State jurisdiction, and the concurrent
11exercise by a home rule unit of any power affecting such
12investment authority is hereby specifically denied and
13preempted.
14 (4) For the purposes of this Code, "emerging investment
15manager" means a qualified investment adviser that manages an
16investment portfolio of at least $10,000,000 but less than
17$10,000,000,000 and is a "minority-owned minority owned
18business", "women-owned female owned business" or "business
19owned by a person with a disability" as those terms are defined
20in the Business Enterprise for Minorities, Women Females, and
21Persons with Disabilities Act.
22 It is hereby declared to be the public policy of the State
23of Illinois to encourage the trustees of public employee
24retirement systems, pension funds, and investment boards to use
25emerging investment managers in managing their system's
26assets, encompassing all asset classes, and increase the

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1racial, ethnic, and gender diversity of its fiduciaries, to the
2greatest extent feasible within the bounds of financial and
3fiduciary prudence, and to take affirmative steps to remove any
4barriers to the full participation in investment opportunities
5afforded by those retirement systems, pension funds, and
6investment boards.
7 On or before January 1, 2010, a retirement system, pension
8fund, or investment board subject to this Code, except those
9whose investments are restricted by Section 1-113.2 of this
10Code, shall adopt a policy that sets forth goals for
11utilization of emerging investment managers. This policy shall
12include quantifiable goals for the management of assets in
13specific asset classes by emerging investment managers. The
14retirement system, pension fund, or investment board shall
15establish 3 separate goals for: (i) emerging investment
16managers that are minority-owned minority owned businesses;
17(ii) emerging investment managers that are women-owned female
18owned businesses; and (iii) emerging investment managers that
19are businesses owned by a person with a disability. The goals
20established shall be based on the percentage of total dollar
21amount of investment service contracts let to minority-owned
22minority owned businesses, women-owned female owned
23businesses, and businesses owned by a person with a disability,
24as those terms are defined in the Business Enterprise for
25Minorities, Women Females, and Persons with Disabilities Act.
26The retirement system, pension fund, or investment board shall

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1annually review the goals established under this subsection.
2 If in any case an emerging investment manager meets the
3criteria established by a board for a specific search and meets
4the criteria established by a consultant for that search, then
5that emerging investment manager shall receive an invitation by
6the board of trustees, or an investment committee of the board
7of trustees, to present his or her firm for final consideration
8of a contract. In the case where multiple emerging investment
9managers meet the criteria of this Section, the staff may
10choose the most qualified firm or firms to present to the
11board.
12 The use of an emerging investment manager does not
13constitute a transfer of investment authority for the purposes
14of subsection (2) of this Section.
15 (5) Each retirement system, pension fund, or investment
16board subject to this Code, except those whose investments are
17restricted by Section 1-113.2 of this Code, shall establish a
18policy that sets forth goals for increasing the racial, ethnic,
19and gender diversity of its fiduciaries, including its
20consultants and senior staff. Each system, fund, and investment
21board shall annually review the goals established under this
22subsection.
23 (6) On or before January 1, 2010, a retirement system,
24pension fund, or investment board subject to this Code, except
25those whose investments are restricted by Section 1-113.2 of
26this Code, shall adopt a policy that sets forth goals for

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1utilization of businesses owned by minorities, women females,
2and persons with disabilities for all contracts and services.
3The goals established shall be based on the percentage of total
4dollar amount of all contracts let to minority-owned minority
5owned businesses, women-owned female owned businesses, and
6businesses owned by a person with a disability, as those terms
7are defined in the Business Enterprise for Minorities, Women
8Females, and Persons with Disabilities Act. The retirement
9system, pension fund, or investment board shall annually review
10the goals established under this subsection.
11 (7) On or before January 1, 2010, a retirement system,
12pension fund, or investment board subject to this Code, except
13those whose investments are restricted by Section 1-113.2 of
14this Code, shall adopt a policy that sets forth goals for
15increasing the utilization of minority broker-dealers. For the
16purposes of this Code, "minority broker-dealer" means a
17qualified broker-dealer who meets the definition of
18"minority-owned minority owned business", "women-owned female
19owned business", or "business owned by a person with a
20disability", as those terms are defined in the Business
21Enterprise for Minorities, Women Females, and Persons with
22Disabilities Act. The retirement system, pension fund, or
23investment board shall annually review the goals established
24under this Section.
25 (8) Each retirement system, pension fund, and investment
26board subject to this Code, except those whose investments are

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1restricted by Section 1-113.2 of this Code, shall submit a
2report to the Governor and the General Assembly by January 1 of
3each year that includes the following: (i) the policy adopted
4under subsection (4) of this Section, including the names and
5addresses of the emerging investment managers used, percentage
6of the assets under the investment control of emerging
7investment managers for the 3 separate goals, and the actions
8it has undertaken to increase the use of emerging investment
9managers, including encouraging other investment managers to
10use emerging investment managers as subcontractors when the
11opportunity arises; (ii) the policy adopted under subsection
12(5) of this Section; (iii) the policy adopted under subsection
13(6) of this Section; (iv) the policy adopted under subsection
14(7) of this Section, including specific actions undertaken to
15increase the use of minority broker-dealers; and (v) the policy
16adopted under subsection (9) of this Section.
17 (9) On or before February 1, 2015, a retirement system,
18pension fund, or investment board subject to this Code, except
19those whose investments are restricted by Section 1-113.2 of
20this Code, shall adopt a policy that sets forth goals for
21increasing the utilization of minority investment managers.
22For the purposes of this Code, "minority investment manager"
23means a qualified investment manager that manages an investment
24portfolio and meets the definition of "minority-owned minority
25owned business", "women-owned female owned business", or
26"business owned by a person with a disability", as those terms

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1are defined in the Business Enterprise for Minorities, Women
2Females, and Persons with Disabilities Act.
3 It is hereby declared to be the public policy of the State
4of Illinois to encourage the trustees of public employee
5retirement systems, pension funds, and investment boards to use
6minority investment managers in managing their systems'
7assets, encompassing all asset classes, and to increase the
8racial, ethnic, and gender diversity of their fiduciaries, to
9the greatest extent feasible within the bounds of financial and
10fiduciary prudence, and to take affirmative steps to remove any
11barriers to the full participation in investment opportunities
12afforded by those retirement systems, pension funds, and
13investment boards.
14 The retirement system, pension fund, or investment board
15shall establish 3 separate goals for: (i) minority investment
16managers that are minority-owned minority owned businesses;
17(ii) minority investment managers that are women-owned female
18owned businesses; and (iii) minority investment managers that
19are businesses owned by a person with a disability. The
20retirement system, pension fund, or investment board shall
21annually review the goals established under this Section.
22 If in any case a minority investment manager meets the
23criteria established by a board for a specific search and meets
24the criteria established by a consultant for that search, then
25that minority investment manager shall receive an invitation by
26the board of trustees, or an investment committee of the board

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1of trustees, to present his or her firm for final consideration
2of a contract. In the case where multiple minority investment
3managers meet the criteria of this Section, the staff may
4choose the most qualified firm or firms to present to the
5board.
6 The use of a minority investment manager does not
7constitute a transfer of investment authority for the purposes
8of subsection (2) of this Section.
9 (10) Beginning January 1, 2016, it shall be the
10aspirational goal for a retirement system, pension fund, or
11investment board subject to this Code to use emerging
12investment managers for not less than 20% of the total funds
13under management. Furthermore, it shall be the aspirational
14goal that not less than 20% of investment advisors be
15minorities, women females, and persons with disabilities as
16those terms are defined in the Business Enterprise for
17Minorities, Women Females, and Persons with Disabilities Act.
18It shall be the aspirational goal to utilize businesses owned
19by minorities, women females, and persons with disabilities for
20not less than 20% of contracts awarded for "information
21technology services", "accounting services", "insurance
22brokers", "architectural and engineering services", and "legal
23services" as those terms are defined in the Act.
24(Source: P.A. 98-1022, eff. 1-1-15; 99-462, eff. 8-25-15.)
25 (40 ILCS 5/1-113.21)

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1 Sec. 1-113.21. Contracts for services.
2 (a) Beginning January 1, 2015, no contract, oral or
3written, for investment services, consulting services, or
4commitment to a private market fund shall be awarded by a
5retirement system, pension fund, or investment board
6established under this Code unless the investment advisor,
7consultant, or private market fund first discloses:
8 (1) the number of its investment and senior staff and
9 the percentage of its investment and senior staff who are
10 (i) a minority person, (ii) a woman female, and (iii) a
11 person with a disability; and
12 (2) the number of contracts, oral or written, for
13 investment services, consulting services, and professional
14 and artistic services that the investment advisor,
15 consultant, or private market fund has with (i) a
16 minority-owned minority owned business, (ii) a women-owned
17 female owned business, or (iii) a business owned by a
18 person with a disability; and
19 (3) the number of contracts, oral or written, for
20 investment services, consulting services, and professional
21 and artistic services the investment advisor, consultant,
22 or private market fund has with a business other than (i) a
23 minority-owned minority owned business, (ii) a women-owned
24 female owned business or (iii) a business owned by a person
25 with a disability, if more than 50% of services performed
26 pursuant to the contract are performed by (i) a minority

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1 person, (ii) a woman female, and (iii) a person with a
2 disability.
3 (b) The disclosures required by this Section shall be
4considered, within the bounds of financial and fiduciary
5prudence, prior to the awarding of a contract, oral or written,
6for investment services, consulting services, or commitment to
7a private market fund.
8 (c) For the purposes of this Section, the terms "minority
9person", "woman female", "person with a disability",
10"minority-owned minority owned business", "women-owned female
11owned business", and "business owned by a person with a
12disability" have the same meaning as those terms have in the
13Business Enterprise for Minorities, Women Females, and Persons
14with Disabilities Act.
15 (d) For purposes of this Section, the term "private market
16fund" means any private equity fund, private equity fund of
17funds, venture capital fund, hedge fund, hedge fund of funds,
18real estate fund, or other investment vehicle that is not
19publicly traded.
20(Source: P.A. 98-1022, eff. 1-1-15.)
21 Section 90. The Counties Code is amended by changing
22Section 5-1134 as follows:
23 (55 ILCS 5/5-1134)
24 Sec. 5-1134. Project labor agreements.

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1 (a) Any sports, arts, or entertainment facilities that
2receive revenue from a tax imposed under subsection (b) of
3Section 5-1030 of this Code shall be considered to be public
4works within the meaning of the Prevailing Wage Act. The county
5authorities responsible for the construction, renovation,
6modification, or alteration of the sports, arts, or
7entertainment facilities shall enter into project labor
8agreements with labor organizations as defined in the National
9Labor Relations Act to assure that no labor dispute interrupts
10or interferes with the construction, renovation, modification,
11or alteration of the projects.
12 (b) The project labor agreements must include the
13following:
14 (1) provisions establishing the minimum hourly wage
15 for each class of labor organization employees;
16 (2) provisions establishing the benefits and other
17 compensation for such class of labor organization; and
18 (3) provisions establishing that no strike or disputes
19 will be engaged in by the labor organization employees.
20 The county, taxing bodies, municipalities, and the labor
21organizations shall have the authority to include other terms
22and conditions as they deem necessary.
23 (c) The project labor agreement shall be filed with the
24Director of the Illinois Department of Labor in accordance with
25procedures established by the Department. At a minimum, the
26project labor agreement must provide the names, addresses, and

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1occupations of the owner of the facilities and the individuals
2representing the labor organization employees participating in
3the project labor agreement. The agreement must also specify
4the terms and conditions required in subsection (b) of this
5Section.
6 (d) In any agreement for the construction or rehabilitation
7of a facility using revenue generated under subsection (b) of
8Section 5-1030 of this Code, in connection with the
9prequalification of general contractors for construction or
10rehabilitation of the facility, it shall be required that a
11commitment will be submitted detailing how the general
12contractor will expend 15% or more of the aggregate dollar
13value of the project as a whole with one or more minority-owned
14businesses, women-owned female-owned businesses, or businesses
15owned by a person with a disability, as these terms are defined
16in Section 2 of the Business Enterprise for Minorities, Women
17Females, and Persons with Disabilities Act.
18(Source: P.A. 98-313, eff. 8-12-13; 98-756, eff. 7-16-14.)
19 Section 95. The River Edge Redevelopment Zone Act is
20amended by changing Section 10-5.3 as follows:
21 (65 ILCS 115/10-5.3)
22 Sec. 10-5.3. Certification of River Edge Redevelopment
23Zones.
24 (a) Approval of designated River Edge Redevelopment Zones

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1shall be made by the Department by certification of the
2designating ordinance. The Department shall promptly issue a
3certificate for each zone upon its approval. The certificate
4shall be signed by the Director of the Department, shall make
5specific reference to the designating ordinance, which shall be
6attached thereto, and shall be filed in the office of the
7Secretary of State. A certified copy of the River Edge
8Redevelopment Zone Certificate, or a duplicate original
9thereof, shall be recorded in the office of the recorder of
10deeds of the county in which the River Edge Redevelopment Zone
11lies.
12 (b) A River Edge Redevelopment Zone shall be effective upon
13its certification. The Department shall transmit a copy of the
14certification to the Department of Revenue, and to the
15designating municipality. Upon certification of a River Edge
16Redevelopment Zone, the terms and provisions of the designating
17ordinance shall be in effect, and may not be amended or
18repealed except in accordance with Section 10-5.4.
19 (c) A River Edge Redevelopment Zone shall be in effect for
20the period stated in the certificate, which shall in no event
21exceed 30 calendar years. Zones shall terminate at midnight of
22December 31 of the final calendar year of the certified term,
23except as provided in Section 10-5.4.
24 (d) In calendar years 2006 and 2007, the Department may
25certify one pilot River Edge Redevelopment Zone in the City of
26East St. Louis, one pilot River Edge Redevelopment Zone in the

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1City of Rockford, and one pilot River Edge Redevelopment Zone
2in the City of Aurora.
3 In calendar year 2009, the Department may certify one pilot
4River Edge Redevelopment Zone in the City of Elgin.
5 On or after the effective date of this amendatory Act of
6the 97th General Assembly, the Department may certify one
7additional pilot River Edge Redevelopment Zone in the City of
8Peoria.
9 Thereafter the Department may not certify any additional
10River Edge Redevelopment Zones, but may amend and rescind
11certifications of existing River Edge Redevelopment Zones in
12accordance with Section 10-5.4, except that no River Edge
13Redevelopment Zone may be extended on or after the effective
14date of this amendatory Act of the 97th General Assembly. Each
15River Edge Redevelopment Zone in existence on the effective
16date of this amendatory Act of the 97th General Assembly shall
17continue until its scheduled termination under this Act, unless
18the Zone is decertified sooner. At the time of its term
19expiration each River Edge Redevelopment Zone will become an
20open enterprise zone, available for the previously designated
21area or a different area to compete for designation as an
22enterprise zone. No preference for designation as a Zone will
23be given to the previously designated area.
24 (e) A municipality in which a River Edge Redevelopment Zone
25has been certified must submit to the Department, within 60
26days after the certification, a plan for encouraging the

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1participation by minority persons, women females, persons with
2disabilities, and veterans in the zone. The Department may
3assist the municipality in developing and implementing the
4plan. The terms "minority person", "woman female", and "person
5with a disability" have the meanings set forth under Section 2
6of the Business Enterprise for Minorities, Women Females, and
7Persons with Disabilities Act. "Veteran" means an Illinois
8resident who is a veteran as defined in subsection (h) of
9Section 1491 of Title 10 of the United States Code.
10(Source: P.A. 96-37, eff. 7-13-09; 97-203, eff. 7-28-11;
1197-905, eff. 8-7-12.)
12 Section 100. The Metropolitan Pier and Exposition
13Authority Act is amended by changing Sections 10.2 and 23.1 as
14follows:
15 (70 ILCS 210/10.2)
16 Sec. 10.2. Bonding disclosure.
17 (a) Truth in borrowing disclosure. Within 60 business days
18after the issuance of any bonds under this Act, the Authority
19shall disclose the total principal and interest payments to be
20paid on the bonds over the full stated term of the bonds. The
21disclosure also shall include principal and interest payments
22to be made by each fiscal year over the full stated term of the
23bonds and total principal and interest payments to be made by
24each fiscal year on all other outstanding bonds issued under

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1this Act over the full stated terms of those bonds. These
2disclosures shall be calculated assuming bonds are not redeemed
3or refunded prior to their stated maturities. Amounts included
4in these disclosures as payment of interest on variable rate
5bonds shall be computed at an interest rate equal to the rate
6at which the variable rate bonds are first set upon issuance,
7plus 2.5%, after taking into account any credits permitted in
8the related indenture or other instrument against the amount of
9such interest for each fiscal year.
10 (b) Bond sale expenses disclosure. Within 60 business days
11after the issuance of any bonds under this Act, the Authority
12shall disclose all costs of issuance on each sale of bonds
13under this Act. The disclosure shall include, as applicable,
14the respective percentages of participation and compensation
15of each underwriter that is a member of the underwriting
16syndicate, legal counsel, financial advisors, and other
17professionals for the bond issue and an identification of all
18costs of issuance paid to minority-owned minority owned
19businesses, women-owned female owned businesses, and
20businesses owned by persons with disabilities. The terms
21"minority-owned minority owned businesses", "women-owned
22female owned businesses", and "business owned by a person with
23a disability" have the meanings given to those terms in the
24Business Enterprise for Minorities, Women Females, and Persons
25with Disabilities Act. In addition, the Authority shall provide
26copies of all contracts under which any costs of issuance are

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1paid or to be paid to the Commission on Government Forecasting
2and Accountability within 60 business days after the issuance
3of bonds for which those costs are paid or to be paid. Instead
4of filing a second or subsequent copy of the same contract, the
5Authority may file a statement that specified costs are paid
6under specified contracts filed earlier with the Commission.
7 (c) The disclosures required in this Section shall be
8published by posting the disclosures for no less than 30 days
9on the website of the Authority and shall be available to the
10public upon request. The Authority shall also provide the
11disclosures to the Governor's Office of Management and Budget,
12the Commission on Government Forecasting and Accountability,
13and the General Assembly.
14(Source: P.A. 96-898, eff. 5-27-10.)
15 (70 ILCS 210/23.1) (from Ch. 85, par. 1243.1)
16 Sec. 23.1. Affirmative action.
17 (a) The Authority shall, within 90 days after the effective
18date of this amendatory Act of 1984, establish and maintain an
19affirmative action program designed to promote equal
20employment opportunity and eliminate the effects of past
21discrimination. Such program shall include a plan, including
22timetables where appropriate, which shall specify goals and
23methods for increasing participation by women and minorities in
24employment, including employment related to the planning,
25organization, and staging of the games, by the Authority and by

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1parties which contract with the Authority. The Authority shall
2submit a detailed plan with the General Assembly prior to
3September 1 of each year. Such program shall also establish
4procedures and sanctions (including debarment), which the
5Authority shall enforce to ensure compliance with the plan
6established pursuant to this Section and with State and federal
7laws and regulations relating to the employment of women and
8minorities. A determination by the Authority as to whether a
9party to a contract with the Authority has achieved the goals
10or employed the methods for increasing participation by women
11and minorities shall be determined in accordance with the terms
12of such contracts or the applicable provisions of rules and
13regulations of the Authority existing at the time such contract
14was executed, including any provisions for consideration of
15good faith efforts at compliance which the Authority may
16reasonably adopt.
17 (b) The Authority shall adopt and maintain minority-owned
18minority and women-owned female owned business enterprise
19procurement programs under the affirmative action program
20described in subsection (a) for any and all work, including all
21contracting related to the planning, organization, and staging
22of the games, undertaken by the Authority. That work shall
23include, but is not limited to, the purchase of professional
24services, construction services, supplies, materials, and
25equipment. The programs shall establish goals of awarding not
26less than 25% of the annual dollar value of all contracts,

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1purchase orders, or other agreements (collectively referred to
2as "contracts") to minority-owned minority owned businesses
3and 5% of the annual dollar value of all contracts to
4women-owned female owned businesses. Without limiting the
5generality of the foregoing, the programs shall require in
6connection with the prequalification or consideration of
7vendors for professional service contracts, construction
8contracts, and contracts for supplies, materials, equipment,
9and services that each proposer or bidder submit as part of his
10or her proposal or bid a commitment detailing how he or she
11will expend 25% or more of the dollar value of his or her
12contracts with one or more minority-owned minority owned
13businesses and 5% or more of the dollar value with one or more
14women-owned female owned businesses. Bids or proposals that do
15not include such detailed commitments are not responsive and
16shall be rejected unless the Authority deems it appropriate to
17grant a waiver of these requirements. In addition the Authority
18may, in connection with the selection of providers of
19professional services, reserve the right to select a
20minority-owned minority or women-owned female owned business
21or businesses to fulfill the commitment to minority and woman
22female business participation. The commitment to minority and
23woman female business participation may be met by the
24contractor or professional service provider's status as a
25minority-owned minority or women-owned female owned business,
26by joint venture or by subcontracting a portion of the work

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1with or purchasing materials for the work from one or more such
2businesses, or by any combination thereof. Each contract shall
3require the contractor or provider to submit a certified
4monthly report detailing the status of that contractor or
5provider's compliance with the Authority's minority-owned
6minority and women-owned female owned business enterprise
7procurement program. The Authority, after reviewing the
8monthly reports of the contractors and providers, shall compile
9a comprehensive report regarding compliance with this
10procurement program and file it quarterly with the General
11Assembly. If, in connection with a particular contract, the
12Authority determines that it is impracticable or excessively
13costly to obtain minority-owned minority or women-owned female
14owned businesses to perform sufficient work to fulfill the
15commitment required by this subsection, the Authority shall
16reduce or waive the commitment in the contract, as may be
17appropriate. The Authority shall establish rules and
18regulations setting forth the standards to be used in
19determining whether or not a reduction or waiver is
20appropriate. The terms "minority-owned minority owned
21business" and "women-owned female owned business" have the
22meanings given to those terms in the Business Enterprise for
23Minorities, Women Females, and Persons with Disabilities Act.
24 (c) The Authority shall adopt and maintain an affirmative
25action program in connection with the hiring of minorities and
26women on the Expansion Project and on any and all construction

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1projects, including all contracting related to the planning,
2organization, and staging of the games, undertaken by the
3Authority. The program shall be designed to promote equal
4employment opportunity and shall specify the goals and methods
5for increasing the participation of minorities and women in a
6representative mix of job classifications required to perform
7the respective contracts awarded by the Authority.
8 (d) In connection with the Expansion Project, the Authority
9shall incorporate the following elements into its
10minority-owned minority and women-owned female owned business
11procurement programs to the extent feasible: (1) a major
12contractors program that permits minority-owned minority owned
13businesses and women-owned female owned businesses to bear
14significant responsibility and risk for a portion of the
15project; (2) a mentor/protege program that provides financial,
16technical, managerial, equipment, and personnel support to
17minority-owned minority owned businesses and women-owned
18female owned businesses; (3) an emerging firms program that
19includes minority-owned minority owned businesses and
20women-owned female owned businesses that would not otherwise
21qualify for the project due to inexperience or limited
22resources; (4) a small projects program that includes
23participation by smaller minority-owned minority owned
24businesses and women-owned female owned businesses on jobs
25where the total dollar value is $5,000,000 or less; and (5) a
26set-aside program that will identify contracts requiring the

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1expenditure of funds less than $50,000 for bids to be submitted
2solely by minority-owned minority owned businesses and
3women-owned female owned businesses.
4 (e) The Authority is authorized to enter into agreements
5with contractors' associations, labor unions, and the
6contractors working on the Expansion Project to establish an
7Apprenticeship Preparedness Training Program to provide for an
8increase in the number of minority and women female journeymen
9and apprentices in the building trades and to enter into
10agreements with Community College District 508 to provide
11readiness training. The Authority is further authorized to
12enter into contracts with public and private educational
13institutions and persons in the hospitality industry to provide
14training for employment in the hospitality industry.
15 (f) McCormick Place Advisory Board. There is created a
16McCormick Place Advisory Board composed as follows: 2 members
17shall be appointed by the Mayor of Chicago; 2 members shall be
18appointed by the Governor; 2 members shall be State Senators
19appointed by the President of the Senate; 2 members shall be
20State Senators appointed by the Minority Leader of the Senate;
212 members shall be State Representatives appointed by the
22Speaker of the House of Representatives; and 2 members shall be
23State Representatives appointed by the Minority Leader of the
24House of Representatives. The terms of all previously appointed
25members of the Advisory Board expire on the effective date of
26this amendatory Act of the 92nd General Assembly. A State

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1Senator or State Representative member may appoint a designee
2to serve on the McCormick Place Advisory Board in his or her
3absence.
4 A "member of a minority group" shall mean a person who is a
5citizen or lawful permanent resident of the United States and
6who is any of the following:
7 (1) American Indian or Alaska Native (a person having
8 origins in any of the original peoples of North and South
9 America, including Central America, and who maintains
10 tribal affiliation or community attachment).
11 (2) Asian (a person having origins in any of the
12 original peoples of the Far East, Southeast Asia, or the
13 Indian subcontinent, including, but not limited to,
14 Cambodia, China, India, Japan, Korea, Malaysia, Pakistan,
15 the Philippine Islands, Thailand, and Vietnam).
16 (3) Black or African American (a person having origins
17 in any of the black racial groups of Africa). Terms such as
18 "Haitian" or "Negro" can be used in addition to "Black or
19 African American".
20 (4) Hispanic or Latino (a person of Cuban, Mexican,
21 Puerto Rican, South or Central American, or other Spanish
22 culture or origin, regardless of race).
23 (5) Native Hawaiian or Other Pacific Islander (a person
24 having origins in any of the original peoples of Hawaii,
25 Guam, Samoa, or other Pacific Islands).
26 Members of the McCormick Place Advisory Board shall serve

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12-year terms and until their successors are appointed, except
2members who serve as a result of their elected position whose
3terms shall continue as long as they hold their designated
4elected positions. Vacancies shall be filled by appointment for
5the unexpired term in the same manner as original appointments
6are made. The McCormick Place Advisory Board shall elect its
7own chairperson.
8 Members of the McCormick Place Advisory Board shall serve
9without compensation but, at the Authority's discretion, shall
10be reimbursed for necessary expenses in connection with the
11performance of their duties.
12 The McCormick Place Advisory Board shall meet quarterly, or
13as needed, shall produce any reports it deems necessary, and
14shall:
15 (1) Work with the Authority on ways to improve the area
16 physically and economically;
17 (2) Work with the Authority regarding potential means
18 for providing increased economic opportunities to
19 minorities and women produced indirectly or directly from
20 the construction and operation of the Expansion Project;
21 (3) Work with the Authority to minimize any potential
22 impact on the area surrounding the McCormick Place
23 Expansion Project, including any impact on minority-owned
24 minority or women-owned female owned businesses, resulting
25 from the construction and operation of the Expansion
26 Project;

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1 (4) Work with the Authority to find candidates for
2 building trades apprenticeships, for employment in the
3 hospitality industry, and to identify job training
4 programs;
5 (5) Work with the Authority to implement the provisions
6 of subsections (a) through (e) of this Section in the
7 construction of the Expansion Project, including the
8 Authority's goal of awarding not less than 25% and 5% of
9 the annual dollar value of contracts to minority-owned
10 minority and women-owned female owned businesses, the
11 outreach program for minorities and women, and the
12 mentor/protege program for providing assistance to
13 minority-owned minority and women-owned female owned
14 businesses.
15 (g) The Authority shall comply with subsection (e) of
16Section 5-42 of the Olympic Games and Paralympic Games (2016)
17Law. For purposes of this Section, the term "games" has the
18meaning set forth in the Olympic Games and Paralympic Games
19(2016) Law.
20(Source: P.A. 96-7, eff. 4-3-09; 97-396, eff. 1-1-12.)
21 Section 105. The Illinois Sports Facilities Authority Act
22is amended by changing Section 9 as follows:
23 (70 ILCS 3205/9) (from Ch. 85, par. 6009)
24 Sec. 9. Duties. In addition to the powers set forth

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1elsewhere in this Act, subject to the terms of any agreements
2with the holders of the Authority's bonds or notes, the
3Authority shall:
4 (1) Comply with all zoning, building, and land use
5 controls of the municipality within which is located any
6 stadium facility owned by the Authority or for which the
7 Authority provides financial assistance.
8 (2) With respect to a facility owned or to be owned by
9 the Authority, enter or have entered into a management
10 agreement with a tenant of the Authority to operate the
11 facility that requires the tenant to operate the facility
12 for a period at least as long as the term of any bonds
13 issued to finance the development, establishment,
14 construction, erection, acquisition, repair,
15 reconstruction, remodeling, adding to, extension,
16 improvement, equipping, operation, and maintenance of the
17 facility. Such agreement shall contain appropriate and
18 reasonable provisions with respect to termination, default
19 and legal remedies.
20 (3) With respect to a facility owned or to be owned by
21 a governmental owner other than the Authority, enter into
22 an assistance agreement with either a governmental owner of
23 a facility or its tenant, or both, that requires the
24 tenant, or if the tenant is not a party to the assistance
25 agreement requires the governmental owner to enter into an
26 agreement with the tenant that requires the tenant to use

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1 the facility for a period at least as long as the term of
2 any bonds issued to finance the reconstruction,
3 renovation, remodeling, extension or improvement of all or
4 substantially all of the facility.
5 (4) Create and maintain a separate financial reserve
6 for repair and replacement of capital assets of any
7 facility owned by the Authority or for which the Authority
8 provides financial assistance and deposit into this
9 reserve not less than $1,000,000 per year for each such
10 facility beginning at such time as the Authority and the
11 tenant, or the Authority and a governmental owner of a
12 facility, as applicable, shall agree.
13 (5) In connection with prequalification of general
14 contractors for the construction of a new stadium facility
15 or the reconstruction, renovation, remodeling, extension,
16 or improvement of all or substantially all of an existing
17 facility, the Authority shall require submission of a
18 commitment detailing how the general contractor will
19 expend 25% or more of the dollar value of the general
20 contract with one or more minority-owned businesses
21 minority business enterprises and 5% or more of the dollar
22 value with one or more women-owned businesses female
23 business enterprises. This commitment may be met by
24 contractor's status as a minority-owned businesses
25 minority business enterprise or women-owned businesses
26 female business enterprise, by a joint venture or by

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1 subcontracting a portion of the work with or by purchasing
2 materials for the work from one or more such businesses
3 enterprises, or by any combination thereof. Any contract
4 with the general contractor for construction of the new
5 stadium facility and any contract for the reconstruction,
6 renovation, remodeling, adding to, extension or
7 improvement of all or substantially all of an existing
8 facility shall require the general contractor to meet the
9 foregoing obligations and shall require monthly reporting
10 to the Authority with respect to the status of the
11 implementation of the contractor's affirmative action plan
12 and compliance with that plan. This report shall be filed
13 with the General Assembly. The Authority shall establish
14 and maintain an affirmative action program designed to
15 promote equal employment opportunity which specifies the
16 goals and methods for increasing participation by
17 minorities and women in a representative mix of job
18 classifications required to perform the respective
19 contracts. The Authority shall file a report before March 1
20 of each year with the General Assembly detailing its
21 implementation of this paragraph. The terms
22 "minority-owned businesses", "women-owned businesses", and
23 "business owned by a person with a disability" have the
24 meanings given to those terms The terms "minority business
25 enterprise" and "female business enterprise" shall have
26 the same meanings as "minority owned business" and "female

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1 owned business", respectively, as defined in the Business
2 Enterprise for Minorities, Women Females, and Persons with
3 Disabilities Act.
4 (6) Provide for the construction of any new facility
5 pursuant to one or more contracts which require delivery of
6 a completed facility at a fixed maximum price to be insured
7 or guaranteed by a third party determined by the Authority
8 to be financially capable of causing completion of such
9 construction of the new facility.
10 In connection with any assistance agreement with a
11governmental owner that provides financial assistance for a
12facility to be used by a National Football League team, the
13assistance agreement shall provide that the Authority or its
14agent shall enter into the contract or contracts for the design
15and construction services or design/build services for such
16facility and thereafter transfer its rights and obligations
17under the contract or contracts to the governmental owner of
18the facility. In seeking parties to provide design and
19construction services or design/build services with respect to
20such facility, the Authority may use such procurement
21procedures as it may determine, including, without limitation,
22the selection of design professionals and construction
23managers or design/builders as may be required by a team that
24is at risk, in whole or in part, for the cost of design and
25construction of the facility.
26 An assistance agreement may not provide, directly or

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1indirectly, for the payment to the Chicago Park District of
2more than a total of $10,000,000 on account of the District's
3loss of property or revenue in connection with the renovation
4of a facility pursuant to the assistance agreement.
5(Source: P.A. 91-935, eff. 6-1-01; 92-16, eff. 6-28-01.)
6 Section 110. The Downstate Illinois Sports Facilities
7Authority Act is amended by changing Section 40 as follows:
8 (70 ILCS 3210/40)
9 Sec. 40. Duties.
10 (a) In addition to the powers set forth elsewhere in this
11Act, subject to the terms of any agreements with the holders of
12the Authority's evidences of indebtedness, the Authority shall
13do the following:
14 (1) Comply with all zoning, building, and land use
15 controls of the municipality within which is located any
16 stadium facility owned by the Authority or for which the
17 Authority provides financial assistance.
18 (2) Enter into a loan agreement with an owner of a
19 facility to finance the acquisition, construction,
20 maintenance, or rehabilitation of the facility. The
21 agreement shall contain appropriate and reasonable
22 provisions with respect to termination, default, and legal
23 remedies. The loan may be at below-market interest rates.
24 (3) Create and maintain a financial reserve for repair

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1 and replacement of capital assets.
2 (b) In a loan agreement for the construction of a new
3facility, in connection with prequalification of general
4contractors for construction of the facility, the Authority
5shall require that the owner of the facility require submission
6of a commitment detailing how the general contractor will
7expend 25% or more of the dollar value of the general contract
8with one or more minority-owned businesses minority business
9enterprises and 5% or more of the dollar value with one or more
10women-owned businesses female business enterprises. This
11commitment may be met by contractor's status as a
12minority-owned businesses minority business enterprise or
13women-owned businesses female business enterprise, by a joint
14venture, or by subcontracting a portion of the work with or by
15purchasing materials for the work from one or more such
16businesses enterprises, or by any combination thereof. Any
17contract with the general contractor for construction of the
18new facility shall require the general contractor to meet the
19foregoing obligations and shall require monthly reporting to
20the Authority with respect to the status of the implementation
21of the contractor's affirmative action plan and compliance with
22that plan. This report shall be filed with the General
23Assembly. The Authority shall require that the facility owner
24establish and maintain an affirmative action program designed
25to promote equal employment opportunity and that specifies the
26goals and methods for increasing participation by minorities

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1and women in a representative mix of job classifications
2required to perform the respective contracts. The Authority
3shall file a report before March 1 of each year with the
4General Assembly detailing its implementation of this
5subsection. The terms "minority-owned businesses minority
6business enterprise" and "women-owned businesses female
7business enterprise" have the meanings provided in the Business
8Enterprise for Minorities, Women Females, and Persons with
9Disabilities Act.
10 (c) With respect to a facility owned or to be owned by the
11Authority, enter or have entered into a management agreement
12with a tenant of the Authority to operate the facility that
13requires the tenant to operate the facility for a period at
14least as long as the term of any bonds issued to finance the
15development, establishment, construction, erection,
16acquisition, repair, reconstruction, remodeling, adding to,
17extension, improvement, equipping, operation, and maintenance
18of the facility. Such agreement shall contain appropriate and
19reasonable provisions with respect to termination, default,
20and legal remedies.
21(Source: P.A. 93-227, eff. 1-1-04.)
22 Section 115. The Metropolitan Transit Authority Act is
23amended by changing Section 12c as follows:
24 (70 ILCS 3605/12c)

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1 Sec. 12c. Retiree Benefits Bonds and Notes.
2 (a) In addition to all other bonds or notes that it is
3authorized to issue, the Authority is authorized to issue its
4bonds or notes for the purposes of providing funds for the
5Authority to make the deposits described in Section 12c(b)(1)
6and (2), for refunding any bonds authorized to be issued under
7this Section, as well as for the purposes of paying costs of
8issuance, obtaining bond insurance or other credit enhancement
9or liquidity facilities, paying costs of obtaining related
10swaps as authorized in the Bond Authorization Act ("Swaps"),
11providing a debt service reserve fund, paying Debt Service (as
12defined in paragraph (i) of this Section 12c), and paying all
13other costs related to any such bonds or notes.
14 (b)(1) After its receipt of a certified copy of a report of
15the Auditor General of the State of Illinois meeting the
16requirements of Section 3-2.3 of the Illinois State Auditing
17Act, the Authority may issue $1,348,550,000 aggregate original
18principal amount of bonds and notes. After payment of the costs
19of issuance and necessary deposits to funds and accounts
20established with respect to debt service, the net proceeds of
21such bonds or notes shall be deposited only in the Retirement
22Plan for Chicago Transit Authority Employees and used only for
23the purposes required by Section 22-101 of the Illinois Pension
24Code. Provided that no less than $1,110,500,000 has been
25deposited in the Retirement Plan, remaining proceeds of bonds
26issued under this subparagraph (b)(1) may be used to pay costs

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1of issuance and make necessary deposits to funds and accounts
2with respect to debt service for bonds and notes issued under
3this subparagraph or subparagraph (b)(2).
4 (2) After its receipt of a certified copy of a report of
5the Auditor General of the State of Illinois meeting the
6requirements of Section 3-2.3 of the Illinois State Auditing
7Act, the Authority may issue $639,680,000 aggregate original
8principal amount of bonds and notes. After payment of the costs
9of issuance and necessary deposits to funds and accounts
10established with respect to debt service, the net proceeds of
11such bonds or notes shall be deposited only in the Retiree
12Health Care Trust and used only for the purposes required by
13Section 22-101B of the Illinois Pension Code. Provided that no
14less than $528,800,000 has been deposited in the Retiree Health
15Care Trust, remaining proceeds of bonds issued under this
16subparagraph (b)(2) may be used to pay costs of issuance and
17make necessary deposits to funds and accounts with respect to
18debt service for bonds and notes issued under this subparagraph
19or subparagraph (b)(1).
20 (3) In addition, refunding bonds are authorized to be
21issued for the purpose of refunding outstanding bonds or notes
22issued under this Section 12c.
23 (4) The bonds or notes issued under 12c(b)(1) shall be
24issued as soon as practicable after the Auditor General issues
25the report provided in Section 3-2.3(b) of the Illinois State
26Auditing Act. The bonds or notes issued under 12c(b)(2) shall

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1be issued as soon as practicable after the Auditor General
2issues the report provided in Section 3-2.3(c) of the Illinois
3State Auditing Act.
4 (5) With respect to bonds and notes issued under
5subparagraph (b), scheduled aggregate annual payments of
6interest or deposits into funds and accounts established for
7the purpose of such payment shall commence within one year
8after the bonds and notes are issued. With respect to principal
9and interest, scheduled aggregate annual payments of principal
10and interest or deposits into funds and accounts established
11for the purpose of such payment shall be not less than 70% in
122009, 80% in 2010, and 90% in 2011, respectively, of scheduled
13payments or deposits of principal and interest in 2012 and
14shall be substantially equal beginning in 2012 and each year
15thereafter. For purposes of this subparagraph (b),
16"substantially equal" means that debt service in any full year
17after calendar year 2011 is not more than 115% of debt service
18in any other full year after calendar year 2011 during the term
19of the bonds or notes. For the purposes of this subsection (b),
20with respect to bonds and notes that bear interest at a
21variable rate, interest shall be assumed at a rate equal to the
22rate for United States Treasury Securities - State and Local
23Government Series for the same maturity, plus 75 basis points.
24If the Authority enters into a Swap with a counterparty
25requiring the Authority to pay a fixed interest rate on a
26notional amount, and the Authority has made a determination

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1that such Swap was entered into for the purpose of providing
2substitute interest payments for variable interest rate bonds
3or notes of a particular maturity or maturities in a principal
4amount equal to the notional amount of the Swap, then during
5the term of the Swap for purposes of any calculation of
6interest payable on such bonds or notes, the interest rate on
7the bonds or notes of such maturity or maturities shall be
8determined as if such bonds or notes bore interest at the fixed
9interest rate payable by the Authority under such Swap.
10 (6) No bond or note issued under this Section 12c shall
11mature later than December 31, 2040.
12 (c) The Chicago Transit Board shall provide for the
13issuance of bonds or notes as authorized in this Section 12c by
14the adoption of an ordinance. The ordinance, together with the
15bonds or notes, shall constitute a contract among the
16Authority, the owners from time to time of the bonds or notes,
17any bond trustee with respect to the bonds or notes, any
18related credit enhancer and any provider of any related Swaps.
19 (d) The Authority is authorized to cause the proceeds of
20the bonds or notes, and any interest or investment earnings on
21the bonds or notes, and of any Swaps, to be invested until the
22proceeds and any interest or investment earnings have been
23deposited with the Retirement Plan or the Retiree Health Care
24Trust.
25 (e) Bonds or notes issued pursuant to this Section 12c may
26be general obligations of the Authority, to which shall be

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1pledged the full faith and credit of the Authority, or may be
2obligations payable solely from particular sources of funds all
3as may be provided in the authorizing ordinance. The
4authorizing ordinance for the bonds and notes, whether or not
5general obligations of the Authority, may provide for the Debt
6Service (as defined in paragraph (i) of this Section 12c) to
7have a claim for payment from particular sources of funds,
8including, without limitation, amounts to be paid to the
9Authority or a bond trustee. The authorizing ordinance may
10provide for the means by which the bonds or notes (and any
11related Swaps) may be secured, which may include, a pledge of
12any revenues or funds of the Authority from whatever source
13which may by law be utilized for paying Debt Service. In
14addition to any other security, upon the written approval of
15the Regional Transportation Authority by the affirmative vote
16of 12 of its then Directors, the ordinance may provide a
17specific pledge or assignment of and lien on or security
18interest in amounts to be paid to the Authority by the Regional
19Transportation Authority and direct payment thereof to the bond
20trustee for payment of Debt Service with respect to the bonds
21or notes, subject to the provisions of existing lease
22agreements of the Authority with any public building
23commission. The authorizing ordinance may also provide a
24specific pledge or assignment of and lien on or security
25interest in and direct payment to the trustee of all or a
26portion of the moneys otherwise payable to the Authority from

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1the City of Chicago pursuant to an intergovernmental agreement
2with the Authority to provide financial assistance to the
3Authority. Any such pledge, assignment, lien or security
4interest for the benefit of owners of bonds or notes shall be
5valid and binding from the time the bonds or notes are issued,
6without any physical delivery or further act, and shall be
7valid and binding as against and prior to the claims of all
8other parties having claims of any kind against the Authority
9or any other person, irrespective of whether such other parties
10have notice of such pledge, assignment, lien or security
11interest, all as provided in the Local Government Debt Reform
12Act, as it may be amended from time to time. The bonds or notes
13of the Authority issued pursuant to this Section 12c shall have
14such priority of payment and as to their claim for payment from
15particular sources of funds, including their priority with
16respect to obligations of the Authority issued under other
17Sections of this Act, all as shall be provided in the
18ordinances authorizing the issuance of the bonds or notes. The
19ordinance authorizing the issuance of any bonds or notes under
20this Section may provide for the creation of, deposits in, and
21regulation and disposition of sinking fund or reserve accounts
22relating to those bonds or notes and related agreements. The
23ordinance authorizing the issuance of any such bonds or notes
24authorized under this Section 12c may contain provisions for
25the creation of a separate fund to provide for the payment of
26principal of and interest on those bonds or notes and related

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1agreements. The ordinance may also provide limitations on the
2issuance of additional bonds or notes of the Authority.
3 (f) Bonds or notes issued under this Section 12c shall not
4constitute an indebtedness of the Regional Transportation
5Authority, the State of Illinois, or of any other political
6subdivision of or municipality within the State, except the
7Authority.
8 (g) The ordinance of the Chicago Transit Board authorizing
9the issuance of bonds or notes pursuant to this Section 12c may
10provide for the appointment of a corporate trustee (which may
11be any trust company or bank having the powers of a trust
12company within Illinois) with respect to bonds or notes issued
13pursuant to this Section 12c. The ordinance shall prescribe the
14rights, duties, and powers of the trustee to be exercised for
15the benefit of the Authority and the protection of the owners
16of bonds or notes issued pursuant to this Section 12c. The
17ordinance may provide for the trustee to hold in trust, invest
18and use amounts in funds and accounts created as provided by
19the ordinance with respect to the bonds or notes in accordance
20with this Section 12c. The Authority may apply, as it shall
21determine, any amounts received upon the sale of the bonds or
22notes to pay any Debt Service on the bonds or notes. The
23ordinance may provide for a trust indenture to set forth terms
24of, sources of payment for and security for the bonds and
25notes.
26 (h) The State of Illinois pledges to and agrees with the

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1owners of the bonds or notes issued pursuant to Section 12c
2that the State of Illinois will not limit the powers vested in
3the Authority by this Act to pledge and assign its revenues and
4funds as security for the payment of the bonds or notes, or
5vested in the Regional Transportation Authority by the Regional
6Transportation Authority Act or this Act, so as to materially
7impair the payment obligations of the Authority under the terms
8of any contract made by the Authority with those owners or to
9materially impair the rights and remedies of those owners until
10those bonds or notes, together with interest and any redemption
11premium, and all costs and expenses in connection with any
12action or proceedings by or on behalf of such owners are fully
13met and discharged. The Authority is authorized to include
14these pledges and agreements of the State of Illinois in any
15contract with owners of bonds or notes issued pursuant to this
16Section 12c.
17 (i) For purposes of this Section, "Debt Service" with
18respect to bonds or notes includes, without limitation,
19principal (at maturity or upon mandatory redemption),
20redemption premium, interest, periodic, upfront, and
21termination payments on Swaps, fees for bond insurance or other
22credit enhancement, liquidity facilities, the funding of bond
23or note reserves, bond trustee fees, and all other costs of
24providing for the security or payment of the bonds or notes.
25 (j) The Authority shall adopt a procurement program with
26respect to contracts relating to the following service

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1providers in connection with the issuance of debt for the
2benefit of the Retirement Plan for Chicago Transit Authority
3Employees: underwriters, bond counsel, financial advisors, and
4accountants. The program shall include goals for the payment of
5not less than 30% of the total dollar value of the fees from
6these contracts to minority-owned minority owned businesses
7and women-owned female owned businesses as defined in the
8Business Enterprise for Minorities, Women Females, and Persons
9with Disabilities Act. The Authority shall conduct outreach to
10minority-owned minority owned businesses and women-owned
11female owned businesses. Outreach shall include, but is not
12limited to, advertisements in periodicals and newspapers,
13mailings, and other appropriate media. The Authority shall
14submit to the General Assembly a comprehensive report that
15shall include, at a minimum, the details of the procurement
16plan, outreach efforts, and the results of the efforts to
17achieve goals for the payment of fees. The service providers
18selected by the Authority pursuant to such program shall not be
19subject to approval by the Regional Transportation Authority,
20and the Regional Transportation Authority's approval pursuant
21to subsection (e) of this Section 12c related to the issuance
22of debt shall not be based in any way on the service providers
23selected by the Authority pursuant to this Section.
24 (k) No person holding an elective office in this State,
25holding a seat in the General Assembly, serving as a director,
26trustee, officer, or employee of the Regional Transportation

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1Authority or the Chicago Transit Authority, including the
2spouse or minor child of that person, may receive a legal,
3banking, consulting, or other fee related to the issuance of
4any bond issued by the Chicago Transit Authority pursuant to
5this Section.
6(Source: P.A. 95-708, eff. 1-18-08.)
7 Section 120. The School Code is amended by changing Section
810-20.44 as follows:
9 (105 ILCS 5/10-20.44)
10 Sec. 10-20.44. Report on contracts.
11 (a) This Section applies to all school districts, including
12a school district organized under Article 34 of this Code.
13 (b) A school board must list on the district's Internet
14website, if any, all contracts over $25,000 and any contract
15that the school board enters into with an exclusive bargaining
16representative.
17 (c) Each year, in conjunction with the submission of the
18Statement of Affairs to the State Board of Education prior to
19December 1, provided for in Section 10-17, each school district
20shall submit to the State Board of Education an annual report
21on all contracts over $25,000 awarded by the school district
22during the previous fiscal year. The report shall include at
23least the following:
24 (1) the total number of all contracts awarded by the

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1 school district;
2 (2) the total value of all contracts awarded;
3 (3) the number of contracts awarded to minority-owned
4 minority owned businesses, women-owned female owned
5 businesses, and businesses owned by persons with
6 disabilities, as defined in the Business Enterprise for
7 Minorities, Women, Females and Persons with Disabilities
8 Act, and locally owned businesses; and
9 (4) the total value of contracts awarded to
10 minority-owned minority owned businesses, women-owned
11 female owned businesses, and businesses owned by persons
12 with disabilities, as defined in the Business Enterprise
13 for Minorities, Women, Females and Persons with
14 Disabilities Act, and locally owned businesses.
15 The report shall be made available to the public, including
16publication on the school district's Internet website, if any.
17(Source: P.A. 95-707, eff. 1-11-08; 96-328, eff. 8-11-09.)
18 Section 125. The Public University Energy Conservation Act
19is amended by changing Sections 3 and 5-10 as follows:
20 (110 ILCS 62/3)
21 Sec. 3. Applicable laws. Other State laws and related
22administrative requirements apply to this Act, including, but
23not limited to, the following laws and related administrative
24requirements: the Illinois Human Rights Act, the Prevailing

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1Wage Act, the Public Construction Bond Act, the Public Works
2Preference Act (repealed on June 16, 2010 by Public Act
396-929), the Employment of Illinois Workers on Public Works
4Act, the Freedom of Information Act, the Open Meetings Act, the
5Illinois Architecture Practice Act of 1989, the Professional
6Engineering Practice Act of 1989, the Structural Engineering
7Practice Act of 1989, the Architectural, Engineering, and Land
8Surveying Qualifications Based Selection Act, the Public
9Contract Fraud Act, the Business Enterprise for Minorities,
10Women Females, and Persons with Disabilities Act, and the
11Public Works Employment Discrimination Act.
12(Source: P.A. 97-333, eff. 8-12-11.)
13 (110 ILCS 62/5-10)
14 Sec. 5-10. Energy conservation measure.
15 (a) "Energy conservation measure" means any improvement,
16repair, alteration, or betterment of any building or facility,
17subject to all applicable building codes, owned or operated by
18a public university or any equipment, fixture, or furnishing to
19be added to or used in any such building or facility that is
20designed to reduce energy consumption or operating costs, and
21may include, without limitation, one or more of the following:
22 (1) Insulation of the building structure or systems
23 within the building.
24 (2) Storm windows or doors, caulking or
25 weatherstripping, multiglazed windows or doors, heat

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1 absorbing or heat reflective glazed and coated window or
2 door systems, additional glazing, reductions in glass
3 area, or other window and door system modifications that
4 reduce energy consumption.
5 (3) Automated or computerized energy control systems.
6 (4) Heating, ventilating, or air conditioning system
7 modifications or replacements.
8 (5) Replacement or modification of lighting fixtures
9 to increase the energy efficiency of the lighting system
10 without increasing the overall illumination of a facility,
11 unless an increase in illumination is necessary to conform
12 to the applicable State or local building code for the
13 lighting system after the proposed modifications are made.
14 (6) Energy recovery systems.
15 (7) Energy conservation measures that provide
16 long-term operating cost reductions.
17 (b) From the effective date of this amendatory Act of the
1896th General Assembly until January 1, 2015, "energy
19conservation measure" includes a renewable energy center pilot
20project at Eastern Illinois University, provided that:
21 (1) the University signs a partnership contract with a
22 qualified energy conservation measure provider as provided
23 in this Act;
24 (2) the University has responsibility for the
25 qualified provider's actions with regard to applicable
26 laws;

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1 (3) the University obtains a performance bond in
2 accordance with this Act;
3 (4) the University and the qualified provider follow
4 all aspects of the Prevailing Wage Act as provided by this
5 Act;
6 (5) the University and the qualified provider use an
7 approved list of firms from the Capital Development Board
8 (CDB), unless the University requires services that are not
9 typically performed by the firms on CDB's list;
10 (6) the University provides monthly progress reports
11 to the Procurement Policy Board, and the University allows
12 a representative from CDB to monitor the project, provided
13 that such involvement is at no cost to the University;
14 (7) the University requires the qualified provider to
15 follow the provisions of the Business Enterprise for
16 Minorities, Women Females, and Persons with Disabilities
17 Act and the Public Works Employment Discrimination Act as
18 provided in this Act;
19 (8) the University agrees to award new building
20 construction work to a responsible bidder, as defined in
21 Section 30-22 of the Illinois Procurement Code;
22 (9) the University includes in its contract with the
23 qualified provider a requirement that the qualified
24 provider name the sub-contractors that it will use, and the
25 qualified provider may not change these without the
26 University's written approval;

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1 (10) the University follows, to the extent possible,
2 the Design-Build Procurement Act for construction of the
3 project, taking into consideration the current status of
4 the project; for purposes of this Act, the definition of
5 "State construction agency" in the Design-Build
6 Procurement Act means Eastern Illinois University for the
7 purpose of this project;
8 (11) the University follows, to the extent possible,
9 the Architectural, Engineering, and Land Surveying
10 Qualifications Based Selection Act;
11 (12) the University requires all engineering,
12 architecture, and design work related to the installation
13 or modification of facilities be performed by design
14 professionals licensed by the State of Illinois and
15 professional design firms registered in the State of
16 Illinois; and
17 (13) the University produces annual reports and a final
18 report describing the project upon completion and files the
19 reports with the Procurement Policy Board, CDB, and the
20 General Assembly.
21 The provisions of this subsection (b), other than this
22sentence, are inoperative after January 1, 2015.
23(Source: P.A. 96-16, eff. 6-22-09.)
24 (110 ILCS 320/1.1 rep.)
25 Section 130. The University of Illinois at Chicago Act is

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1amended by repealing Section 1.1.
2 Section 135. The Illinois State University Law is amended
3by changing Section 20-115 as follows:
4 (110 ILCS 675/20-115)
5 Sec. 20-115. Illinois Institute for Entrepreneurship
6Education.
7 (a) There is created, effective July 1, 1997, within the
8State at Illinois State University, the Illinois Institute for
9Entrepreneurship Education, hereinafter referred to as the
10Institute.
11 (b) The Institute created under this Section shall commence
12its operations on July 1, 1997 and shall have a board composed
13of 15 members representative of education, commerce and
14industry, government, or labor, appointed as follows: 2 members
15shall be appointees of the Governor, one of whom shall be a
16minority or woman female person as defined in Section 2 of the
17Business Enterprise for Minorities, Women Females, and Persons
18with Disabilities Act; one member shall be an appointee of the
19President of the Senate; one member shall be an appointee of
20the Minority Leader of the Senate; one member shall be an
21appointee of the Speaker of the House of Representatives; one
22member shall be an appointee of the Minority Leader of the
23House of Representatives; 2 members shall be appointees of
24Illinois State University; one member shall be an appointee of

SB0262 Engrossed- 173 -LRB100 05183 HLH 15193 b
1the Board of Higher Education; one member shall be an appointee
2of the State Board of Education; one member shall be an
3appointee of the Department of Commerce and Economic
4Opportunity; one member shall be an appointee of the Illinois
5chapter of Economics America; and 3 members shall be appointed
6by majority vote of the other 12 appointed members to represent
7business owner-entrepreneurs. Each member shall have expertise
8and experience in the area of entrepreneurship education,
9including small business and entrepreneurship. The majority of
10voting members must be from the private sector. The members
11initially appointed to the board of the Institute created under
12this Section shall be appointed to take office on July 1, 1997
13and shall by lot determine the length of their respective terms
14as follows: 5 members shall be selected by lot to serve terms
15of one year, 5 members shall be selected by lot to serve terms
16of 2 years, and 5 members shall be selected by lot to serve
17terms of 3 years. Subsequent appointees shall each serve terms
18of 3 years. The board shall annually select a chairperson from
19among its members. Each board member shall serve without
20compensation but shall be reimbursed for expenses incurred in
21the performance of his or her duties.
22 (c) The purpose of the Institute shall be to foster the
23growth and development of entrepreneurship education in the
24State of Illinois. The Institute shall help remedy the
25deficiencies in the preparation of entrepreneurship education
26teachers, increase the quality and quantity of

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1entrepreneurship education programs, improve instructional
2materials, and prepare personnel to serve as leaders and
3consultants in the field of entrepreneurship education and
4economic development. The Institute shall promote
5entrepreneurship as a career option, promote and support the
6development of innovative entrepreneurship education materials
7and delivery systems, promote business, industry, and
8education partnerships, promote collaboration and involvement
9in entrepreneurship education programs, encourage and support
10in-service and preservice teacher education programs within
11various educational systems, and develop and distribute
12relevant materials. The Institute shall provide a framework
13under which the public and private sectors may work together
14toward entrepreneurship education goals. These goals shall be
15achieved by bringing together programs that have an impact on
16entrepreneurship education to achieve coordination among
17agencies and greater efficiency in the expenditure of funds.
18 (d) Beginning July 1, 1997, the Institute shall have the
19following powers subject to State and Illinois State University
20Board of Trustees regulations and guidelines:
21 (1) To employ and determine the compensation of an
22 executive director and such staff as it deems necessary;
23 (2) To own property and expend and receive funds and
24 generate funds;
25 (3) To enter into agreements with public and private
26 entities in the furtherance of its purpose; and

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1 (4) To request and receive the cooperation and
2 assistance of all State departments and agencies in the
3 furtherance of its purpose.
4 (e) The board of the Institute shall be a policy making
5body with the responsibility for planning and developing
6Institute programs. The Institute, through the Board of
7Trustees of Illinois State University, shall annually report to
8the Governor and General Assembly by January 31 as to its
9activities and operations, including its findings and
10recommendations.
11 (f) Beginning on July 1, 1997, the Institute created under
12this Section shall be deemed designated by law as the successor
13to the Illinois Institute for Entrepreneurship Education,
14previously created and existing under Section 2-11.5 of the
15Public Community College Act until its abolition on July 1,
161997 as provided in that Section. On July 1, 1997, all
17financial and other records of the Institute so abolished and
18all of its property, whether real or personal, including but
19not limited to all inventory and equipment, shall be deemed
20transferred by operation of law to the Illinois Institute for
21Entrepreneurship Education created under this Section 20-115.
22The Illinois Institute for Entrepreneurship Education created
23under this Section 20-115 shall have, with respect to the
24predecessor Institute so abolished, all authority, powers, and
25duties of a successor agency under Section 10-15 of the
26Successor Agency Act.

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1(Source: P.A. 94-793, eff. 5-19-06.)
2 Section 140. The Public Utilities Act is amended by
3changing Section 9-220 as follows:
4 (220 ILCS 5/9-220) (from Ch. 111 2/3, par. 9-220)
5 Sec. 9-220. Rate changes based on changes in fuel costs.
6 (a) Notwithstanding the provisions of Section 9-201, the
7Commission may authorize the increase or decrease of rates and
8charges based upon changes in the cost of fuel used in the
9generation or production of electric power, changes in the cost
10of purchased power, or changes in the cost of purchased gas
11through the application of fuel adjustment clauses or purchased
12gas adjustment clauses. The Commission may also authorize the
13increase or decrease of rates and charges based upon
14expenditures or revenues resulting from the purchase or sale of
15emission allowances created under the federal Clean Air Act
16Amendments of 1990, through such fuel adjustment clauses, as a
17cost of fuel. For the purposes of this paragraph, cost of fuel
18used in the generation or production of electric power shall
19include the amount of any fees paid by the utility for the
20implementation and operation of a process for the
21desulfurization of the flue gas when burning high sulfur coal
22at any location within the State of Illinois irrespective of
23the attainment status designation of such location; but shall
24not include transportation costs of coal (i) except to the

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1extent that for contracts entered into on and after the
2effective date of this amendatory Act of 1997, the cost of the
3coal, including transportation costs, constitutes the lowest
4cost for adequate and reliable fuel supply reasonably available
5to the public utility in comparison to the cost, including
6transportation costs, of other adequate and reliable sources of
7fuel supply reasonably available to the public utility, or (ii)
8except as otherwise provided in the next 3 sentences of this
9paragraph. Such costs of fuel shall, when requested by a
10utility or at the conclusion of the utility's next general
11electric rate proceeding, whichever shall first occur, include
12transportation costs of coal purchased under existing coal
13purchase contracts. For purposes of this paragraph "existing
14coal purchase contracts" means contracts for the purchase of
15coal in effect on the effective date of this amendatory Act of
161991, as such contracts may thereafter be amended, but only to
17the extent that any such amendment does not increase the
18aggregate quantity of coal to be purchased under such contract.
19Nothing herein shall authorize an electric utility to recover
20through its fuel adjustment clause any amounts of
21transportation costs of coal that were included in the revenue
22requirement used to set base rates in its most recent general
23rate proceeding. Cost shall be based upon uniformly applied
24accounting principles. Annually, the Commission shall initiate
25public hearings to determine whether the clauses reflect actual
26costs of fuel, gas, power, or coal transportation purchased to

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1determine whether such purchases were prudent, and to reconcile
2any amounts collected with the actual costs of fuel, power,
3gas, or coal transportation prudently purchased. In each such
4proceeding, the burden of proof shall be upon the utility to
5establish the prudence of its cost of fuel, power, gas, or coal
6transportation purchases and costs. The Commission shall issue
7its final order in each such annual proceeding for an electric
8utility by December 31 of the year immediately following the
9year to which the proceeding pertains, provided, that the
10Commission shall issue its final order with respect to such
11annual proceeding for the years 1996 and earlier by December
1231, 1998.
13 (b) A public utility providing electric service, other than
14a public utility described in subsections (e) or (f) of this
15Section, may at any time during the mandatory transition period
16file with the Commission proposed tariff sheets that eliminate
17the public utility's fuel adjustment clause and adjust the
18public utility's base rate tariffs by the amount necessary for
19the base fuel component of the base rates to recover the public
20utility's average fuel and power supply costs per kilowatt-hour
21for the 2 most recent years for which the Commission has issued
22final orders in annual proceedings pursuant to subsection (a),
23where the average fuel and power supply costs per kilowatt-hour
24shall be calculated as the sum of the public utility's prudent
25and allowable fuel and power supply costs as found by the
26Commission in the 2 proceedings divided by the public utility's

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1actual jurisdictional kilowatt-hour sales for those 2 years.
2Notwithstanding any contrary or inconsistent provisions in
3Section 9-201 of this Act, in subsection (a) of this Section or
4in any rules or regulations promulgated by the Commission
5pursuant to subsection (g) of this Section, the Commission
6shall review and shall by order approve, or approve as
7modified, the proposed tariff sheets within 60 days after the
8date of the public utility's filing. The Commission may modify
9the public utility's proposed tariff sheets only to the extent
10the Commission finds necessary to achieve conformance to the
11requirements of this subsection (b). During the 5 years
12following the date of the Commission's order, but in any event
13no earlier than January 1, 2007, a public utility whose fuel
14adjustment clause has been eliminated pursuant to this
15subsection shall not file proposed tariff sheets seeking, or
16otherwise petition the Commission for, reinstatement of a fuel
17adjustment clause.
18 (c) Notwithstanding any contrary or inconsistent
19provisions in Section 9-201 of this Act, in subsection (a) of
20this Section or in any rules or regulations promulgated by the
21Commission pursuant to subsection (g) of this Section, a public
22utility providing electric service, other than a public utility
23described in subsection (e) or (f) of this Section, may at any
24time during the mandatory transition period file with the
25Commission proposed tariff sheets that establish the rate per
26kilowatt-hour to be applied pursuant to the public utility's

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1fuel adjustment clause at the average value for such rate
2during the preceding 24 months, provided that such average rate
3results in a credit to customers' bills, without making any
4revisions to the public utility's base rate tariffs. The
5proposed tariff sheets shall establish the fuel adjustment rate
6for a specific time period of at least 3 years but not more
7than 5 years, provided that the terms and conditions for any
8reinstatement earlier than 5 years shall be set forth in the
9proposed tariff sheets and subject to modification or approval
10by the Commission. The Commission shall review and shall by
11order approve the proposed tariff sheets if it finds that the
12requirements of this subsection are met. The Commission shall
13not conduct the annual hearings specified in the last 3
14sentences of subsection (a) of this Section for the utility for
15the period that the factor established pursuant to this
16subsection is in effect.
17 (d) A public utility providing electric service, or a
18public utility providing gas service may file with the
19Commission proposed tariff sheets that eliminate the public
20utility's fuel or purchased gas adjustment clause and adjust
21the public utility's base rate tariffs to provide for recovery
22of power supply costs or gas supply costs that would have been
23recovered through such clause; provided, that the provisions of
24this subsection (d) shall not be available to a public utility
25described in subsections (e) or (f) of this Section to
26eliminate its fuel adjustment clause. Notwithstanding any

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1contrary or inconsistent provisions in Section 9-201 of this
2Act, in subsection (a) of this Section, or in any rules or
3regulations promulgated by the Commission pursuant to
4subsection (g) of this Section, the Commission shall review and
5shall by order approve, or approve as modified in the
6Commission's order, the proposed tariff sheets within 240 days
7after the date of the public utility's filing. The Commission's
8order shall approve rates and charges that the Commission,
9based on information in the public utility's filing or on the
10record if a hearing is held by the Commission, finds will
11recover the reasonable, prudent and necessary jurisdictional
12power supply costs or gas supply costs incurred or to be
13incurred by the public utility during a 12 month period found
14by the Commission to be appropriate for these purposes,
15provided, that such period shall be either (i) a 12 month
16historical period occurring during the 15 months ending on the
17date of the public utility's filing, or (ii) a 12 month future
18period ending no later than 15 months following the date of the
19public utility's filing. The public utility shall include with
20its tariff filing information showing both (1) its actual
21jurisdictional power supply costs or gas supply costs for a 12
22month historical period conforming to (i) above and (2) its
23projected jurisdictional power supply costs or gas supply costs
24for a future 12 month period conforming to (ii) above. If the
25Commission's order requires modifications in the tariff sheets
26filed by the public utility, the public utility shall have 7

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1days following the date of the order to notify the Commission
2whether the public utility will implement the modified tariffs
3or elect to continue its fuel or purchased gas adjustment
4clause in force as though no order had been entered. The
5Commission's order shall provide for any reconciliation of
6power supply costs or gas supply costs, as the case may be, and
7associated revenues through the date that the public utility's
8fuel or purchased gas adjustment clause is eliminated. During
9the 5 years following the date of the Commission's order, a
10public utility whose fuel or purchased gas adjustment clause
11has been eliminated pursuant to this subsection shall not file
12proposed tariff sheets seeking, or otherwise petition the
13Commission for, reinstatement or adoption of a fuel or
14purchased gas adjustment clause. Nothing in this subsection (d)
15shall be construed as limiting the Commission's authority to
16eliminate a public utility's fuel adjustment clause or
17purchased gas adjustment clause in accordance with any other
18applicable provisions of this Act.
19 (e) Notwithstanding any contrary or inconsistent
20provisions in Section 9-201 of this Act, in subsection (a) of
21this Section, or in any rules promulgated by the Commission
22pursuant to subsection (g) of this Section, a public utility
23providing electric service to more than 1,000,000 customers in
24this State may, within the first 6 months after the effective
25date of this amendatory Act of 1997, file with the Commission
26proposed tariff sheets that eliminate, effective January 1,

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11997, the public utility's fuel adjustment clause without
2adjusting its base rates, and such tariff sheets shall be
3effective upon filing. To the extent the application of the
4fuel adjustment clause had resulted in net charges to customers
5after January 1, 1997, the utility shall also file a tariff
6sheet that provides for a refund stated on a per kilowatt-hour
7basis of such charges over a period not to exceed 6 months;
8provided however, that such refund shall not include the
9proportional amounts of taxes paid under the Use Tax Act,
10Service Use Tax Act, Service Occupation Tax Act, and Retailers'
11Occupation Tax Act on fuel used in generation. The Commission
12shall issue an order within 45 days after the date of the
13public utility's filing approving or approving as modified such
14tariff sheet. If the fuel adjustment clause is eliminated
15pursuant to this subsection, the Commission shall not conduct
16the annual hearings specified in the last 3 sentences of
17subsection (a) of this Section for the utility for any period
18after December 31, 1996 and prior to any reinstatement of such
19clause. A public utility whose fuel adjustment clause has been
20eliminated pursuant to this subsection shall not file a
21proposed tariff sheet seeking, or otherwise petition the
22Commission for, reinstatement of the fuel adjustment clause
23prior to January 1, 2007.
24 (f) Notwithstanding any contrary or inconsistent
25provisions in Section 9-201 of this Act, in subsection (a) of
26this Section, or in any rules or regulations promulgated by the

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1Commission pursuant to subsection (g) of this Section, a public
2utility providing electric service to more than 500,000
3customers but fewer than 1,000,000 customers in this State may,
4within the first 6 months after the effective date of this
5amendatory Act of 1997, file with the Commission proposed
6tariff sheets that eliminate, effective January 1, 1997, the
7public utility's fuel adjustment clause and adjust its base
8rates by the amount necessary for the base fuel component of
9the base rates to recover 91% of the public utility's average
10fuel and power supply costs for the 2 most recent years for
11which the Commission, as of January 1, 1997, has issued final
12orders in annual proceedings pursuant to subsection (a), where
13the average fuel and power supply costs per kilowatt-hour shall
14be calculated as the sum of the public utility's prudent and
15allowable fuel and power supply costs as found by the
16Commission in the 2 proceedings divided by the public utility's
17actual jurisdictional kilowatt-hour sales for those 2 years,
18provided, that such tariff sheets shall be effective upon
19filing. To the extent the application of the fuel adjustment
20clause had resulted in net charges to customers after January
211, 1997, the utility shall also file a tariff sheet that
22provides for a refund stated on a per kilowatt-hour basis of
23such charges over a period not to exceed 6 months. Provided
24however, that such refund shall not include the proportional
25amounts of taxes paid under the Use Tax Act, Service Use Tax
26Act, Service Occupation Tax Act, and Retailers' Occupation Tax

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1Act on fuel used in generation. The Commission shall issue an
2order within 45 days after the date of the public utility's
3filing approving or approving as modified such tariff sheet. If
4the fuel adjustment clause is eliminated pursuant to this
5subsection, the Commission shall not conduct the annual
6hearings specified in the last 3 sentences of subsection (a) of
7this Section for the utility for any period after December 31,
81996 and prior to any reinstatement of such clause. A public
9utility whose fuel adjustment clause has been eliminated
10pursuant to this subsection shall not file a proposed tariff
11sheet seeking, or otherwise petition the Commission for,
12reinstatement of the fuel adjustment clause prior to January 1,
132007.
14 (g) The Commission shall have authority to promulgate rules
15and regulations to carry out the provisions of this Section.
16 (h) Any Illinois gas utility may enter into a contract on
17or before September 30, 2011 for up to 10 years of supply with
18any company for the purchase of substitute natural gas (SNG)
19produced from coal through the gasification process if the
20company has commenced construction of a clean coal SNG facility
21by July 1, 2012 and commencement of construction shall mean
22that material physical site work has occurred, such as site
23clearing and excavation, water runoff prevention, water
24retention reservoir preparation, or foundation development.
25The contract shall contain the following provisions: (i) at
26least 90% of feedstock to be used in the gasification process

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1shall be coal with a high volatile bituminous rank and greater
2than 1.7 pounds of sulfur per million Btu content; (ii) at the
3time the contract term commences, the price per million Btu may
4not exceed $7.95 in 2008 dollars, adjusted annually based on
5the change in the Annual Consumer Price Index for All Urban
6Consumers for the Midwest Region as published in April by the
7United States Department of Labor, Bureau of Labor Statistics
8(or a suitable Consumer Price Index calculation if this
9Consumer Price Index is not available) for the previous
10calendar year; provided that the price per million Btu shall
11not exceed $9.95 at any time during the contract; (iii) the
12utility's supply contract for the purchase of SNG does not
13exceed 15% of the annual system supply requirements of the
14utility as of 2008; and (iv) the contract costs pursuant to
15subsection (h-10) of this Section shall not include any
16lobbying expenses, charitable contributions, advertising,
17organizational memberships, carbon dioxide pipeline or
18sequestration expenses, or marketing expenses.
19 Any gas utility that is providing service to more than
20150,000 customers on August 2, 2011 (the effective date of
21Public Act 97-239) shall either elect to enter into a contract
22on or before September 30, 2011 for 10 years of SNG supply with
23the owner of a clean coal SNG facility or to file biennial rate
24proceedings before the Commission in the years 2012, 2014, and
252016, with such filings made after August 2, 2011 and no later
26than September 30 of the years 2012, 2014, and 2016 consistent

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1with all requirements of 83 Ill. Adm. Code 255 and 285 as
2though the gas utility were filing for an increase in its
3rates, without regard to whether such filing would produce an
4increase, a decrease, or no change in the gas utility's rates,
5and the Commission shall review the gas utility's filing and
6shall issue its order in accordance with the provisions of
7Section 9-201 of this Act.
8 Within 7 days after August 2, 2011, the owner of the clean
9coal SNG facility shall submit to the Illinois Power Agency and
10each gas utility that is providing service to more than 150,000
11customers on August 2, 2011 a copy of a draft contract. Within
1230 days after the receipt of the draft contract, each such gas
13utility shall provide the Illinois Power Agency and the owner
14of the clean coal SNG facility with its comments and
15recommended revisions to the draft contract. Within 7 days
16after the receipt of the gas utility's comments and recommended
17revisions, the owner of the facility shall submit its
18responsive comments and a further revised draft of the contract
19to the Illinois Power Agency. The Illinois Power Agency shall
20review the draft contract and comments.
21 During its review of the draft contract, the Illinois Power
22Agency shall:
23 (1) review and confirm in writing that the terms stated
24 in this subsection (h) are incorporated in the SNG
25 contract;
26 (2) review the SNG pricing formula included in the

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1 contract and approve that formula if the Illinois Power
2 Agency determines that the formula, at the time the
3 contract term commences: (A) starts with a price of $6.50
4 per MMBtu adjusted by the adjusted final capitalized plant
5 cost; (B) takes into account budgeted miscellaneous net
6 revenue after cost allowance, including sale of SNG
7 produced by the clean coal SNG facility above the nameplate
8 capacity of the facility and other by-products produced by
9 the facility, as approved by the Illinois Power Agency; (C)
10 does not include carbon dioxide transportation or
11 sequestration expenses; and (D) includes all provisions
12 required under this subsection (h); if the Illinois Power
13 Agency does not approve of the SNG pricing formula, then
14 the Illinois Power Agency shall modify the formula to
15 ensure that it meets the requirements of this subsection
16 (h);
17 (3) review and approve the amount of budgeted
18 miscellaneous net revenue after cost allowance, including
19 sale of SNG produced by the clean coal SNG facility above
20 the nameplate capacity of the facility and other
21 by-products produced by the facility, to be included in the
22 pricing formula; the Illinois Power Agency shall approve
23 the amount of budgeted miscellaneous net revenue to be
24 included in the pricing formula if it determines the
25 budgeted amount to be reasonable and accurate;
26 (4) review and confirm in writing that using the EIA

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1 Annual Energy Outlook-2011 Henry Hub Spot Price, the
2 contract terms set out in subsection (h), the
3 reconciliation account terms as set out in subsection
4 (h-15), and an estimated inflation rate of 2.5% for each
5 corresponding year, that there will be no cumulative
6 estimated increase for residential customers; and
7 (5) allocate the nameplate capacity of the clean coal
8 SNG by total therms sold to ultimate customers by each gas
9 utility in 2008; provided, however, no utility shall be
10 required to purchase more than 42% of the projected annual
11 output of the facility; additionally, the Illinois Power
12 Agency shall further adjust the allocation only as required
13 to take into account (A) adverse consolidation,
14 derivative, or lease impacts to the balance sheet or income
15 statement of any gas utility or (B) the physical capacity
16 of the gas utility to accept SNG.
17 If the parties to the contract do not agree on the terms
18therein, then the Illinois Power Agency shall retain an
19independent mediator to mediate the dispute between the
20parties. If the parties are in agreement on the terms of the
21contract, then the Illinois Power Agency shall approve the
22contract. If after mediation the parties have failed to come to
23agreement, then the Illinois Power Agency shall revise the
24draft contract as necessary to confirm that the contract
25contains only terms that are reasonable and equitable. The
26Illinois Power Agency may, in its discretion, retain an

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1independent, qualified, and experienced expert to assist in its
2obligations under this subsection (h). The Illinois Power
3Agency shall adopt and make public policies detailing the
4processes for retaining a mediator and an expert under this
5subsection (h). Any mediator or expert retained under this
6subsection (h) shall be retained no later than 60 days after
7August 2, 2011.
8 The Illinois Power Agency shall complete all of its
9responsibilities under this subsection (h) within 60 days after
10August 2, 2011. The clean coal SNG facility shall pay a
11reasonable fee as required by the Illinois Power Agency for its
12services under this subsection (h) and shall pay the mediator's
13and expert's reasonable fees, if any. A gas utility and its
14customers shall have no obligation to reimburse the clean coal
15SNG facility or the Illinois Power Agency of any such costs.
16 Within 30 days after commercial production of SNG has
17begun, the Commission shall initiate a review to determine
18whether the final capitalized plant cost of the clean coal SNG
19facility reflects actual incurred costs and whether the
20incurred costs were reasonable. In determining the actual
21incurred costs included in the final capitalized plant cost and
22the reasonableness of those costs, the Commission may in its
23discretion retain independent, qualified, and experienced
24experts to assist in its determination. The expert shall not
25own or control any direct or indirect interest in the clean
26coal SNG facility and shall have no contractual relationship

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1with the clean coal SNG facility. If an expert is retained by
2the Commission, then the clean coal SNG facility shall pay the
3expert's reasonable fees. The fees shall not be passed on to a
4utility or its customers. The Commission shall adopt and make
5public a policy detailing the process for retaining experts
6under this subsection (h).
7 Within 30 days after completion of its review, the
8Commission shall initiate a formal proceeding on the final
9capitalized plant cost of the clean coal SNG facility at which
10comments and testimony may be submitted by any interested
11parties and the public. If the Commission finds that the final
12capitalized plant cost includes costs that were not actually
13incurred or costs that were unreasonably incurred, then the
14Commission shall disallow the amount of non-incurred or
15unreasonable costs from the SNG price under contracts entered
16into under this subsection (h). If the Commission disallows any
17costs, then the Commission shall adjust the SNG price using the
18price formula in the contract approved by the Illinois Power
19Agency under this subsection (h) to reflect the disallowed
20costs and shall enter an order specifying the revised price. In
21addition, the Commission's order shall direct the clean coal
22SNG facility to issue refunds of such sums as shall represent
23the difference between actual gross revenues and the gross
24revenue that would have been obtained based upon the same
25volume, from the price revised by the Commission. Any refund
26shall include interest calculated at a rate determined by the

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1Commission and shall be returned according to procedures
2prescribed by the Commission.
3 Nothing in this subsection (h) shall preclude any party
4affected by a decision of the Commission under this subsection
5(h) from seeking judicial review of the Commission's decision.
6 (h-1) Any Illinois gas utility may enter into a sourcing
7agreement for up to 30 years of supply with the clean coal SNG
8brownfield facility if the clean coal SNG brownfield facility
9has commenced construction. Any gas utility that is providing
10service to more than 150,000 customers on July 13, 2011 (the
11effective date of Public Act 97-096) shall either elect to file
12biennial rate proceedings before the Commission in the years
132012, 2014, and 2016 or enter into a sourcing agreement or
14sourcing agreements with a clean coal SNG brownfield facility
15with an initial term of 30 years for either (i) a percentage of
1643,500,000,000 cubic feet per year, such that the utilities
17entering into sourcing agreements with the clean coal SNG
18brownfield facility purchase 100%, allocated by total therms
19sold to ultimate customers by each gas utility in 2008 or (ii)
20such lesser amount as may be available from the clean coal SNG
21brownfield facility; provided that no utility shall be required
22to purchase more than 42% of the projected annual output of the
23clean coal SNG brownfield facility, with the remainder of such
24utility's obligation to be divided proportionately between the
25other utilities, and provided that the Illinois Power Agency
26shall further adjust the allocation only as required to take

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1into account adverse consolidation, derivative, or lease
2impacts to the balance sheet or income statement of any gas
3utility.
4 A gas utility electing to file biennial rate proceedings
5before the Commission must file a notice of its election with
6the Commission within 60 days after July 13, 2011 or its right
7to make the election is irrevocably waived. A gas utility
8electing to file biennial rate proceedings shall make such
9filings no later than August 1 of the years 2012, 2014, and
102016, consistent with all requirements of 83 Ill. Adm. Code 255
11and 285 as though the gas utility were filing for an increase
12in its rates, without regard to whether such filing would
13produce an increase, a decrease, or no change in the gas
14utility's rates, and notwithstanding any other provisions of
15this Act, the Commission shall fully review the gas utility's
16filing and shall issue its order in accordance with the
17provisions of Section 9-201 of this Act, regardless of whether
18the Commission has approved a formula rate for the gas utility.
19 Within 15 days after July 13, 2011, the owner of the clean
20coal SNG brownfield facility shall submit to the Illinois Power
21Agency and each gas utility that is providing service to more
22than 150,000 customers on July 13, 2011 a copy of a draft
23sourcing agreement. Within 45 days after receipt of the draft
24sourcing agreement, each such gas utility shall provide the
25Illinois Power Agency and the owner of a clean coal SNG
26brownfield facility with its comments and recommended

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1revisions to the draft sourcing agreement. Within 15 days after
2the receipt of the gas utility's comments and recommended
3revisions, the owner of the clean coal SNG brownfield facility
4shall submit its responsive comments and a further revised
5draft of the sourcing agreement to the Illinois Power Agency.
6The Illinois Power Agency shall review the draft sourcing
7agreement and comments.
8 If the parties to the sourcing agreement do not agree on
9the terms therein, then the Illinois Power Agency shall retain
10an independent mediator to mediate the dispute between the
11parties. If the parties are in agreement on the terms of the
12sourcing agreement, the Illinois Power Agency shall approve the
13final draft sourcing agreement. If after mediation the parties
14have failed to come to agreement, then the Illinois Power
15Agency shall revise the draft sourcing agreement as necessary
16to confirm that the final draft sourcing agreement contains
17only terms that are reasonable and equitable. The Illinois
18Power Agency shall adopt and make public a policy detailing the
19process for retaining a mediator under this subsection (h-1).
20Any mediator retained to assist with mediating disputes between
21the parties regarding the sourcing agreement shall be retained
22no later than 60 days after July 13, 2011.
23 Upon approval of a final draft agreement, the Illinois
24Power Agency shall submit the final draft agreement to the
25Capital Development Board and the Commission no later than 90
26days after July 13, 2011. The gas utility and the clean coal

SB0262 Engrossed- 195 -LRB100 05183 HLH 15193 b
1SNG brownfield facility shall pay a reasonable fee as required
2by the Illinois Power Agency for its services under this
3subsection (h-1) and shall pay the mediator's reasonable fees,
4if any. The Illinois Power Agency shall adopt and make public a
5policy detailing the process for retaining a mediator under
6this Section.
7 The sourcing agreement between a gas utility and the clean
8coal SNG brownfield facility shall contain the following
9provisions:
10 (1) Any and all coal used in the gasification process
11 must be coal that has high volatile bituminous rank and
12 greater than 1.7 pounds of sulfur per million Btu content.
13 (2) Coal and petroleum coke are feedstocks for the
14 gasification process, with coal comprising at least 50% of
15 the total feedstock over the term of the sourcing agreement
16 unless the facility reasonably determines that it is
17 necessary to use additional petroleum coke to deliver net
18 consumer savings, in which case the facility shall use coal
19 for at least 35% of the total feedstock over the term of
20 any sourcing agreement and with the feedstocks to be
21 procured in accordance with requirements of Section 1-78 of
22 the Illinois Power Agency Act.
23 (3) The sourcing agreement has an initial term that
24 once entered into terminates no more than 30 years after
25 the commencement of the commercial production of SNG at the
26 clean coal SNG brownfield facility.

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1 (4) The clean coal SNG brownfield facility guarantees a
2 minimum of $100,000,000 in consumer savings to customers of
3 the utilities that have entered into sourcing agreements
4 with the clean coal SNG brownfield facility, calculated in
5 real 2010 dollars at the conclusion of the term of the
6 sourcing agreement by comparing the delivered SNG price to
7 the Chicago City-gate price on a weighted daily basis for
8 each day over the entire term of the sourcing agreement, to
9 be provided in accordance with subsection (h-2) of this
10 Section.
11 (5) Prior to the clean coal SNG brownfield facility
12 issuing a notice to proceed to construction, the clean coal
13 SNG brownfield facility shall establish a consumer
14 protection reserve account for the benefit of the customers
15 of the utilities that have entered into sourcing agreements
16 with the clean coal SNG brownfield facility pursuant to
17 this subsection (h-1), with cash principal in the amount of
18 $150,000,000. This cash principal shall only be
19 recoverable through the consumer protection reserve
20 account and not as a cost to be recovered in the delivered
21 SNG price pursuant to subsection (h-3) of this Section. The
22 consumer protection reserve account shall be maintained
23 and administered by an independent trustee that is mutually
24 agreed upon by the clean coal SNG brownfield facility, the
25 utilities, and the Commission in an interest-bearing
26 account in accordance with subsection (h-2) of this

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1 Section.
2 "Consumer protection reserve account principal maximum
3 amount" shall mean the maximum amount of principal to be
4 maintained in the consumer protection reserve account.
5 During the first 2 years of operation of the facility,
6 there shall be no consumer protection reserve account
7 maximum amount. After the first 2 years of operation of the
8 facility, the consumer protection reserve account maximum
9 amount shall be $150,000,000. After 5 years of operation,
10 and every 5 years thereafter, the trustee shall calculate
11 the 5-year average balance of the consumer protection
12 reserve account. If the trustee determines that during the
13 prior 5 years the consumer protection reserve account has
14 had an average account balance of less than $75,000,000,
15 then the consumer protection reserve account principal
16 maximum amount shall be increased by $5,000,000. If the
17 trustee determines that during the prior 5 years the
18 consumer protection reserve account has had an average
19 account balance of more than $75,000,000, then the consumer
20 protection reserve account principal maximum amount shall
21 be decreased by $5,000,000.
22 (6) The clean coal SNG brownfield facility shall
23 identify and sell economically viable by-products produced
24 by the facility.
25 (7) Fifty percent of all additional net revenue,
26 defined as miscellaneous net revenue from products

SB0262 Engrossed- 198 -LRB100 05183 HLH 15193 b
1 produced by the facility and delivered during the month
2 after cost allowance for costs associated with additional
3 net revenue that are not otherwise recoverable pursuant to
4 subsection (h-3) of this Section, including net revenue
5 from sales of substitute natural gas derived from the
6 facility above the nameplate capacity of the facility and
7 other by-products produced by the facility, shall be
8 credited to the consumer protection reserve account
9 pursuant to subsection (h-2) of this Section.
10 (8) The delivered SNG price per million btu to be paid
11 monthly by the utility to the clean coal SNG brownfield
12 facility, which shall be based only upon the following: (A)
13 a capital recovery charge, operations and maintenance
14 costs, and sequestration costs, only to the extent approved
15 by the Commission pursuant to paragraphs (1), (2), and (3)
16 of subsection (h-3) of this Section; (B) the actual
17 delivered and processed fuel costs pursuant to paragraph
18 (4) of subsection (h-3) of this Section; (C) actual costs
19 of SNG transportation pursuant to paragraph (6) of
20 subsection (h-3) of this Section; (D) certain taxes and
21 fees imposed by the federal government, the State, or any
22 unit of local government as provided in paragraph (6) of
23 subsection (h-3) of this Section; and (E) the credit, if
24 any, from the consumer protection reserve account pursuant
25 to subsection (h-2) of this Section. The delivered SNG
26 price per million Btu shall proportionately reflect these

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1 elements over the term of the sourcing agreement.
2 (9) A formula to translate the recoverable costs and
3 charges under subsection (h-3) of this Section into the
4 delivered SNG price per million btu.
5 (10) Title to the SNG shall pass at a mutually
6 agreeable point in Illinois, and may provide that, rather
7 than the utility taking title to the SNG, a mutually agreed
8 upon third-party gas marketer pursuant to a contract
9 approved by the Illinois Power Agency or its designee may
10 take title to the SNG pursuant to an agreement between the
11 utility, the owner of the clean coal SNG brownfield
12 facility, and the third-party gas marketer.
13 (11) A utility may exit the sourcing agreement without
14 penalty if the clean coal SNG brownfield facility does not
15 commence construction by July 1, 2015.
16 (12) A utility is responsible to pay only the
17 Commission determined unit price cost of SNG that is
18 purchased by the utility. Nothing in the sourcing agreement
19 will obligate a utility to invest capital in a clean coal
20 SNG brownfield facility.
21 (13) The quality of SNG must, at a minimum, be
22 equivalent to the quality required for interstate pipeline
23 gas before a utility is required to accept and pay for SNG
24 gas.
25 (14) Nothing in the sourcing agreement will require a
26 utility to construct any facilities to accept delivery of

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1 SNG. Provided, however, if a utility is required by law or
2 otherwise elects to connect the clean coal SNG brownfield
3 facility to an interstate pipeline, then the utility shall
4 be entitled to recover pursuant to its tariffs all just and
5 reasonable costs that are prudently incurred. Any costs
6 incurred by the utility to receive, deliver, manage, or
7 otherwise accommodate purchases under the SNG sourcing
8 agreement will be fully recoverable through a utility's
9 purchased gas adjustment clause rider mechanism in
10 conjunction with a SNG brownfield facility rider
11 mechanism. The SNG brownfield facility rider mechanism (A)
12 shall be applicable to all customers who receive
13 transportation service from the utility, (B) shall be
14 designed to have an equal percent impact on the
15 transportation services rates of each class of the
16 utility's customers, and (C) shall accurately reflect the
17 net consumer savings, if any, and above-market costs, if
18 any, associated with the utility receiving, delivering,
19 managing, or otherwise accommodating purchases under the
20 SNG sourcing agreement.
21 (15) Remedies for the clean coal SNG brownfield
22 facility's failure to deliver a designated amount for a
23 designated period.
24 (16) The clean coal SNG brownfield facility shall make
25 a good faith effort to ensure that an amount equal to not
26 less than 15% of the value of its prime construction

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1 contract for the facility shall be established as a goal to
2 be awarded to minority-owned minority owned businesses,
3 women-owned female owned businesses, and businesses owned
4 by a person with a disability; provided that at least 75%
5 of the amount of such total goal shall be for
6 minority-owned minority owned businesses. "Minority-owned
7 Minority owned business", "women-owned female owned
8 business", and "business owned by a person with a
9 disability" shall have the meanings ascribed to them in
10 Section 2 of the Business Enterprise for Minorities, Women,
11 Females and Persons with Disabilities Act.
12 (17) Prior to the clean coal SNG brownfield facility
13 issuing a notice to proceed to construction, the clean coal
14 SNG brownfield facility shall file with the Commission a
15 certificate from an independent engineer that the clean
16 coal SNG brownfield facility has (A) obtained all
17 applicable State and federal environmental permits
18 required for construction; (B) obtained approval from the
19 Commission of a carbon capture and sequestration plan; and
20 (C) obtained all necessary permits required for
21 construction for the transportation and sequestration of
22 carbon dioxide as set forth in the Commission-approved
23 carbon capture and sequestration plan.
24 (h-2) Consumer protection reserve account. The clean coal
25SNG brownfield facility shall guarantee a minimum of
26$100,000,000 in consumer savings to customers of the utilities

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1that have entered into sourcing agreements with the clean coal
2SNG brownfield facility, calculated in real 2010 dollars at the
3conclusion of the term of the sourcing agreement by comparing
4the delivered SNG price to the Chicago City-gate price on a
5weighted daily basis for each day over the entire term of the
6sourcing agreement. Prior to the clean coal SNG brownfield
7facility issuing a notice to proceed to construction, the clean
8coal SNG brownfield facility shall establish a consumer
9protection reserve account for the benefit of the retail
10customers of the utilities that have entered into sourcing
11agreements with the clean coal SNG brownfield facility pursuant
12to subsection (h-1), with cash principal in the amount of
13$150,000,000. Such cash principal shall only be recovered
14through the consumer protection reserve account and not as a
15cost to be recovered in the delivered SNG price pursuant to
16subsection (h-3) of this Section. The consumer protection
17reserve account shall be maintained and administered by an
18independent trustee that is mutually agreed upon by the clean
19coal SNG brownfield facility, the utilities, and the Commission
20in an interest-bearing account in accordance with the
21following:
22 (1) The clean coal SNG brownfield facility monthly
23 shall calculate (A) the difference between the monthly
24 delivered SNG price and the Chicago City-gate price, by
25 comparing the delivered SNG price, which shall include the
26 cost of transportation to the delivery point, if any, to

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1 the Chicago City-gate price on a weighted daily basis for
2 each day of the prior month based upon a mutually agreed
3 upon published index and (B) the overage amount, if any, by
4 calculating the annualized incremental additional cost, if
5 any, of the delivered SNG in excess of 2.015% of the
6 average annual inflation-adjusted amounts paid by all gas
7 distribution customers in connection with natural gas
8 service during the 5 years ending May 31, 2010.
9 (2) During the first 2 years of operation of the
10 facility:
11 (A) to the extent there is an overage amount, the
12 consumer protection reserve account shall be used to
13 provide a credit to reduce the SNG price by an amount
14 equal to the overage amount; and
15 (B) to the extent the monthly delivered SNG price
16 is less than or equal to the Chicago City-gate price,
17 the utility shall credit the difference between the
18 monthly delivered SNG price and the monthly Chicago
19 City-gate price, if any, to the consumer protection
20 reserve account. Such credit issued pursuant to this
21 paragraph (B) shall be deemed prudent and reasonable
22 and not subject to a Commission prudence review;
23 (3) After 2 years of operation of the facility, and
24 monthly, on an on-going basis, thereafter:
25 (A) to the extent that the monthly delivered SNG
26 price is less than or equal to the Chicago City-gate

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1 price, calculated using the weighted average of the
2 daily Chicago City-gate price on a daily basis over the
3 entire month, the utility shall credit the difference,
4 if any, to the consumer protection reserve account.
5 Such credit issued pursuant to this subparagraph (A)
6 shall be deemed prudent and reasonable and not subject
7 to a Commission prudence review;
8 (B) any amounts in the consumer protection reserve
9 account in excess of the consumer protection reserve
10 account principal maximum amount shall be distributed
11 as follows: (i) if retail customers have not realized
12 net consumer savings, calculated by comparing the
13 delivered SNG price to the weighted average of the
14 daily Chicago City-gate price on a daily basis over the
15 entire term of the sourcing agreement to date, then 50%
16 of any amounts in the consumer protection reserve
17 account in excess of the consumer protection reserve
18 account principal maximum shall be distributed to the
19 clean coal SNG brownfield facility, with the remaining
20 50% of any such additional amounts being credited to
21 retail customers, and (ii) if retail customers have
22 realized net consumer savings, then 100% of any amounts
23 in the consumer protection reserve account in excess of
24 the consumer protection reserve account principal
25 maximum shall be distributed to the clean coal SNG
26 brownfield facility; provided, however, that under no

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1 circumstances shall the total cumulative amount
2 distributed to the clean coal SNG brownfield facility
3 under this subparagraph (B) exceed $150,000,000;
4 (C) to the extent there is an overage amount, after
5 distributing the amounts pursuant to subparagraph (B)
6 of this paragraph (3), if any, the consumer protection
7 reserve account shall be used to provide a credit to
8 reduce the SNG price by an amount equal to the overage
9 amount;
10 (D) if retail customers have realized net consumer
11 savings, calculated by comparing the delivered SNG
12 price to the weighted average of the daily Chicago
13 City-gate price on a daily basis over the entire term
14 of the sourcing agreement to date, then after
15 distributing the amounts pursuant to subparagraphs (B)
16 and (C) of this paragraph (3), 50% of any additional
17 amounts in the consumer protection reserve account in
18 excess of the consumer protection reserve account
19 principal maximum shall be distributed to the clean
20 coal SNG brownfield facility, with the remaining 50% of
21 any such additional amounts being credited to retail
22 customers; provided, however, that if retail customers
23 have not realized such net consumer savings, no such
24 distribution shall be made to the clean coal SNG
25 brownfield facility, and 100% of such additional
26 amounts shall be credited to the retail customers to

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1 the extent the consumer protection reserve account
2 exceeds the consumer protection reserve account
3 principal maximum amount.
4 (4) Fifty percent of all additional net revenue,
5 defined as miscellaneous net revenue after cost allowance
6 for costs associated with additional net revenue that are
7 not otherwise recoverable pursuant to subsection (h-3) of
8 this Section, including net revenue from sales of
9 substitute natural gas derived from the facility above the
10 nameplate capacity of the facility and other by-products
11 produced by the facility, shall be credited to the consumer
12 protection reserve account.
13 (5) At the conclusion of the term of the sourcing
14 agreement, to the extent retail customers have not saved
15 the minimum of $100,000,000 in consumer savings as
16 guaranteed in this subsection (h-2), amounts in the
17 consumer protection reserve account shall be credited to
18 retail customers to the extent the retail customers have
19 saved the minimum of $100,000,000; 50% of any additional
20 amounts in the consumer protection reserve account shall be
21 distributed to the company, and the remaining 50% shall be
22 distributed to retail customers.
23 (6) If, at the conclusion of the term of the sourcing
24 agreement, the customers have not saved the minimum
25 $100,000,000 in savings as guaranteed in this subsection
26 (h-2) and the consumer protection reserve account has been

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1 depleted, then the clean coal SNG brownfield facility shall
2 be liable for any remaining amount owed to the retail
3 customers to the extent that the customers are provided
4 with the $100,000,000 in savings as guaranteed in this
5 subsection (h-2). The retail customers shall have first
6 priority in recovering that debt above any creditors,
7 except the original senior secured lender to the extent
8 that the original senior secured lender has any senior
9 secured debt outstanding, including any clean coal SNG
10 brownfield facility parent companies or affiliates.
11 (7) The clean coal SNG brownfield facility, the
12 utilities, and the trustee shall work together to take
13 commercially reasonable steps to minimize the tax impact of
14 these transactions, while preserving the consumer
15 benefits.
16 (8) The clean coal SNG brownfield facility shall each
17 month, starting in the facility's first year of commercial
18 operation, file with the Commission, in such form as the
19 Commission shall require, a report as to the consumer
20 protection reserve account. The monthly report must
21 contain the following information:
22 (A) the extent the monthly delivered SNG price is
23 greater than, less than, or equal to the Chicago
24 City-gate price;
25 (B) the amount credited or debited to the consumer
26 protection reserve account during the month;

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1 (C) the amounts credited to consumers and
2 distributed to the clean coal SNG brownfield facility
3 during the month;
4 (D) the total amount of the consumer protection
5 reserve account at the beginning and end of the month;
6 (E) the total amount of consumer savings to date;
7 (F) a confidential summary of the inputs used to
8 calculate the additional net revenue; and
9 (G) any other additional information the
10 Commission shall require.
11 When any report is erroneous or defective or appears to
12 the Commission to be erroneous or defective, the Commission
13 may notify the clean coal SNG brownfield facility to amend
14 the report within 30 days, and, before or after the
15 termination of the 30-day period, the Commission may
16 examine the trustee of the consumer protection reserve
17 account or the officers, agents, employees, books,
18 records, or accounts of the clean coal SNG brownfield
19 facility and correct such items in the report as upon such
20 examination the Commission may find defective or
21 erroneous. All reports shall be under oath.
22 All reports made to the Commission by the clean coal
23 SNG brownfield facility and the contents of the reports
24 shall be open to public inspection and shall be deemed a
25 public record under the Freedom of Information Act. Such
26 reports shall be preserved in the office of the Commission.

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1 The Commission shall publish an annual summary of the
2 reports prior to February 1 of the following year. The
3 annual summary shall be made available to the public on the
4 Commission's website and shall be submitted to the General
5 Assembly.
6 Any facility that fails to file a report required under
7 this paragraph (8) to the Commission within the time
8 specified or to make specific answer to any question
9 propounded by the Commission within 30 days from the time
10 it is lawfully required to do so, or within such further
11 time not to exceed 90 days as may in its discretion be
12 allowed by the Commission, shall pay a penalty of $500 to
13 the Commission for each day it is in default.
14 Any person who willfully makes any false report to the
15 Commission or to any member, officer, or employee thereof,
16 any person who willfully in a report withholds or fails to
17 provide material information to which the Commission is
18 entitled under this paragraph (8) and which information is
19 either required to be filed by statute, rule, regulation,
20 order, or decision of the Commission or has been requested
21 by the Commission, and any person who willfully aids or
22 abets such person shall be guilty of a Class A misdemeanor.
23 (h-3) Recoverable costs and revenue by the clean coal SNG
24brownfield facility.
25 (1) A capital recovery charge approved by the
26 Commission shall be recoverable by the clean coal SNG

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1 brownfield facility under a sourcing agreement. The
2 capital recovery charge shall be comprised of capital costs
3 and a reasonable rate of return. "Capital costs" means
4 costs to be incurred in connection with the construction
5 and development of a facility, as defined in Section 1-10
6 of the Illinois Power Agency Act, and such other costs as
7 the Capital Development Board deems appropriate to be
8 recovered in the capital recovery charge.
9 (A) Capital costs. The Capital Development Board
10 shall calculate a range of capital costs that it
11 believes would be reasonable for the clean coal SNG
12 brownfield facility to recover under the sourcing
13 agreement. In making this determination, the Capital
14 Development Board shall review the facility cost
15 report, if any, of the clean coal SNG brownfield
16 facility, adjusting the results based on the change in
17 the Annual Consumer Price Index for All Urban Consumers
18 for the Midwest Region as published in April by the
19 United States Department of Labor, Bureau of Labor
20 Statistics, the final draft of the sourcing agreement,
21 and the rate of return approved by the Commission. In
22 addition, the Capital Development Board may consult as
23 much as it deems necessary with the clean coal SNG
24 brownfield facility and conduct whatever research and
25 investigation it deems necessary.
26 The Capital Development Board shall retain an

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1 engineering expert to assist in determining both the
2 range of capital costs and the range of operations and
3 maintenance costs that it believes would be reasonable
4 for the clean coal SNG brownfield facility to recover
5 under the sourcing agreement. Provided, however, that
6 such expert shall: (i) not have been involved in the
7 clean coal SNG brownfield facility's facility cost
8 report, if any, (ii) not own or control any direct or
9 indirect interest in the initial clean coal facility,
10 and (iii) have no contractual relationship with the
11 clean coal SNG brownfield facility. In order to qualify
12 as an independent expert, a person or company must
13 have:
14 (i) direct previous experience conducting
15 front-end engineering and design studies for
16 large-scale energy facilities and administering
17 large-scale energy operations and maintenance
18 contracts, which may be particularized to the
19 specific type of financing associated with the
20 clean coal SNG brownfield facility;
21 (ii) an advanced degree in economics,
22 mathematics, engineering, or a related area of
23 study;
24 (iii) ten years of experience in the energy
25 sector, including construction and risk management
26 experience;

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1 (iv) expertise in assisting companies with
2 obtaining financing for large-scale energy
3 projects, which may be particularized to the
4 specific type of financing associated with the
5 clean coal SNG brownfield facility;
6 (v) expertise in operations and maintenance
7 which may be particularized to the specific type of
8 operations and maintenance associated with the
9 clean coal SNG brownfield facility;
10 (vi) expertise in credit and contract
11 protocols;
12 (vii) adequate resources to perform and
13 fulfill the required functions and
14 responsibilities; and
15 (viii) the absence of a conflict of interest
16 and inappropriate bias for or against an affected
17 gas utility or the clean coal SNG brownfield
18 facility.
19 The clean coal SNG brownfield facility and the
20 Illinois Power Agency shall cooperate with the Capital
21 Development Board in any investigation it deems
22 necessary. The Capital Development Board shall make
23 its final determination of the range of capital costs
24 confidentially and shall submit that range to the
25 Commission in a confidential filing within 120 days
26 after July 13, 2011 (the effective date of Public Act

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1 97-096). The clean coal SNG brownfield facility shall
2 submit to the Commission its estimate of the capital
3 costs to be recovered under the sourcing agreement.
4 Only after the clean coal SNG brownfield facility has
5 submitted this estimate shall the Commission publicly
6 announce the range of capital costs submitted by the
7 Capital Development Board.
8 In the event that the estimate submitted by the
9 clean coal SNG brownfield facility is within or below
10 the range submitted by the Capital Development Board,
11 the clean coal SNG brownfield facility's estimate
12 shall be approved by the Commission as the amount of
13 capital costs to be recovered under the sourcing
14 agreement. In the event that the estimate submitted by
15 the clean coal SNG brownfield facility is above the
16 range submitted by the Capital Development Board, the
17 amount of capital costs at the lowest end of the range
18 submitted by the Capital Development Board shall be
19 approved by the Commission as the amount of capital
20 costs to be recovered under the sourcing agreement.
21 Within 15 days after the Capital Development Board has
22 submitted its range and the clean coal SNG brownfield
23 facility has submitted its estimate, the Commission
24 shall approve the capital costs for the clean coal SNG
25 brownfield facility.
26 The Capital Development Board shall monitor the

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1 construction of the clean coal SNG brownfield facility
2 for the full duration of construction to assess
3 potential cost overruns. The Capital Development
4 Board, in its discretion, may retain an expert to
5 facilitate such monitoring. The clean coal SNG
6 brownfield facility shall pay a reasonable fee as
7 required by the Capital Development Board for the
8 Capital Development Board's services under this
9 subsection (h-3) to be deposited into the Capital
10 Development Board Revolving Fund, and such fee shall
11 not be passed through to a utility or its customers. If
12 an expert is retained by the Capital Development Board
13 for monitoring of construction, then the clean coal SNG
14 brownfield facility must pay for the expert's
15 reasonable fees and such costs shall not be passed
16 through to a utility or its customers.
17 (B) Rate of Return. No later than 30 days after the
18 date on which the Illinois Power Agency submits a final
19 draft sourcing agreement, the Commission shall hold a
20 public hearing to determine the rate of return to be
21 recovered under the sourcing agreement. Rate of return
22 shall be comprised of the clean coal SNG brownfield
23 facility's actual cost of debt, including
24 mortgage-style amortization, and a reasonable return
25 on equity. The Commission shall post notice of the
26 hearing on its website no later than 10 days prior to

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1 the date of the hearing. The Commission shall provide
2 the public and all interested parties, including the
3 gas utilities, the Attorney General, and the Illinois
4 Power Agency, an opportunity to be heard.
5 In determining the return on equity, the
6 Commission shall select a commercially reasonable
7 return on equity taking into account the return on
8 equity being received by developers of similar
9 facilities in or outside of Illinois, the need to
10 balance an incentive for clean-coal technology with
11 the need to protect ratepayers from high gas prices,
12 the risks being borne by the clean coal SNG brownfield
13 facility in the final draft sourcing agreement, and any
14 other information that the Commission may deem
15 relevant. The Commission may establish a return on
16 equity that varies with the amount of savings, if any,
17 to customers during the term of the sourcing agreement,
18 comparing the delivered SNG price to a daily weighted
19 average price of natural gas, based upon an index. The
20 Illinois Power Agency shall recommend a return on
21 equity to the Commission using the same criteria.
22 Within 60 days after receiving the final draft sourcing
23 agreement from the Illinois Power Agency, the
24 Commission shall approve the rate of return for the
25 clean coal brownfield facility. Within 30 days after
26 obtaining debt financing for the clean coal SNG

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1 brownfield facility, the clean coal SNG brownfield
2 facility shall file a notice with the Commission
3 identifying the actual cost of debt.
4 (2) Operations and maintenance costs approved by the
5 Commission shall be recoverable by the clean coal SNG
6 brownfield facility under the sourcing agreement. The
7 operations and maintenance costs mean costs that have been
8 incurred for the administration, supervision, operation,
9 maintenance, preservation, and protection of the clean
10 coal SNG brownfield facility's physical plant.
11 The Capital Development Board shall calculate a range
12 of operations and maintenance costs that it believes would
13 be reasonable for the clean coal SNG brownfield facility to
14 recover under the sourcing agreement, incorporating an
15 inflation index or combination of inflation indices to most
16 accurately reflect the actual costs of operating the clean
17 coal SNG brownfield facility. In making this
18 determination, the Capital Development Board shall review
19 the facility cost report, if any, of the clean coal SNG
20 brownfield facility, adjusting the results for inflation
21 based on the change in the Annual Consumer Price Index for
22 All Urban Consumers for the Midwest Region as published in
23 April by the United States Department of Labor, Bureau of
24 Labor Statistics, the final draft of the sourcing
25 agreement, and the rate of return approved by the
26 Commission. In addition, the Capital Development Board may

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1 consult as much as it deems necessary with the clean coal
2 SNG brownfield facility and conduct whatever research and
3 investigation it deems necessary. As set forth in
4 subparagraph (A) of paragraph (1) of this subsection (h-3),
5 the Capital Development Board shall retain an independent
6 engineering expert to assist in determining both the range
7 of operations and maintenance costs that it believes would
8 be reasonable for the clean coal SNG brownfield facility to
9 recover under the sourcing agreement. The clean coal SNG
10 brownfield facility and the Illinois Power Agency shall
11 cooperate with the Capital Development Board in any
12 investigation it deems necessary. The Capital Development
13 Board shall make its final determination of the range of
14 operations and maintenance costs confidentially and shall
15 submit that range to the Commission in a confidential
16 filing within 120 days after July 13, 2011.
17 The clean coal SNG brownfield facility shall submit to
18 the Commission its estimate of the operations and
19 maintenance costs to be recovered under the sourcing
20 agreement. Only after the clean coal SNG brownfield
21 facility has submitted this estimate shall the Commission
22 publicly announce the range of operations and maintenance
23 costs submitted by the Capital Development Board. In the
24 event that the estimate submitted by the clean coal SNG
25 brownfield facility is within or below the range submitted
26 by the Capital Development Board, the clean coal SNG

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1 brownfield facility's estimate shall be approved by the
2 Commission as the amount of operations and maintenance
3 costs to be recovered under the sourcing agreement. In the
4 event that the estimate submitted by the clean coal SNG
5 brownfield facility is above the range submitted by the
6 Capital Development Board, the amount of operations and
7 maintenance costs at the lowest end of the range submitted
8 by the Capital Development Board shall be approved by the
9 Commission as the amount of operations and maintenance
10 costs to be recovered under the sourcing agreement. Within
11 15 days after the Capital Development Board has submitted
12 its range and the clean coal SNG brownfield facility has
13 submitted its estimate, the Commission shall approve the
14 operations and maintenance costs for the clean coal SNG
15 brownfield facility.
16 The clean coal SNG brownfield facility shall pay for
17 the independent engineering expert's reasonable fees and
18 such costs shall not be passed through to a utility or its
19 customers. The clean coal SNG brownfield facility shall pay
20 a reasonable fee as required by the Capital Development
21 Board for the Capital Development Board's services under
22 this subsection (h-3) to be deposited into the Capital
23 Development Board Revolving Fund, and such fee shall not be
24 passed through to a utility or its customers.
25 (3) Sequestration costs approved by the Commission
26 shall be recoverable by the clean coal SNG brownfield

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1 facility. "Sequestration costs" means costs to be incurred
2 by the clean coal SNG brownfield facility in accordance
3 with its Commission-approved carbon capture and
4 sequestration plan to:
5 (A) capture carbon dioxide;
6 (B) build, operate, and maintain a sequestration
7 site in which carbon dioxide may be injected;
8 (C) build, operate, and maintain a carbon dioxide
9 pipeline; and
10 (D) transport the carbon dioxide to the
11 sequestration site or a pipeline.
12 The Commission shall assess the prudency of the
13 sequestration costs for the clean coal SNG brownfield
14 facility before construction commences at the
15 sequestration site or pipeline. Any revenues the clean coal
16 SNG brownfield facility receives as a result of the
17 capture, transportation, or sequestration of carbon
18 dioxide shall be first credited against all sequestration
19 costs, with the positive balance, if any, treated as
20 additional net revenue.
21 The Commission may, in its discretion, retain an expert
22 to assist in its review of sequestration costs. The clean
23 coal SNG brownfield facility shall pay for the expert's
24 reasonable fees if an expert is retained by the Commission,
25 and such costs shall not be passed through to a utility or
26 its customers. Once made, the Commission's determination

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1 of the amount of recoverable sequestration costs shall not
2 be increased unless the clean coal SNG brownfield facility
3 can show by clear and convincing evidence that (i) the
4 costs were not reasonably foreseeable; (ii) the costs were
5 due to circumstances beyond the clean coal SNG brownfield
6 facility's control; and (iii) the clean coal SNG brownfield
7 facility took all reasonable steps to mitigate the costs.
8 If the Commission determines that sequestration costs may
9 be increased, the Commission shall provide for notice and a
10 public hearing for approval of the increased sequestration
11 costs.
12 (4) Actual delivered and processed fuel costs shall be
13 set by the Illinois Power Agency through a SNG feedstock
14 procurement, pursuant to Sections 1-20, 1-77, and 1-78 of
15 the Illinois Power Agency Act, to be performed at least
16 every 5 years and purchased by the clean coal SNG
17 brownfield facility pursuant to feedstock procurement
18 contracts developed by the Illinois Power Agency, with coal
19 comprising at least 50% of the total feedstock over the
20 term of the sourcing agreement and petroleum coke
21 comprising the remainder of the SNG feedstock. If the
22 Commission fails to approve a feedstock procurement plan or
23 fails to approve the results of a feedstock procurement
24 event, then the fuel shall be purchased by the company
25 month-by-month on the spot market and those actual
26 delivered and processed fuel costs shall be recoverable

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1 under the sourcing agreement. If a supplier defaults under
2 the terms of a procurement contract, then the Illinois
3 Power Agency shall immediately initiate a feedstock
4 procurement process to obtain a replacement supply, and,
5 prior to the conclusion of that process, fuel shall be
6 purchased by the company month-by-month on the spot market
7 and those actual delivered and processed fuel costs shall
8 be recoverable under the sourcing agreement.
9 (5) Taxes and fees imposed by the federal government,
10 the State, or any unit of local government applicable to
11 the clean coal SNG brownfield facility, excluding income
12 tax, shall be recoverable by the clean coal SNG brownfield
13 facility under the sourcing agreement to the extent such
14 taxes and fees were not applicable to the facility on July
15 13, 2011.
16 (6) The actual transportation costs, in accordance
17 with the applicable utility's tariffs, and third-party
18 marketer costs incurred by the company, if any, associated
19 with transporting the SNG from the clean coal SNG
20 brownfield facility to the Chicago City-gate to sell such
21 SNG into the natural gas markets shall be recoverable under
22 the sourcing agreement.
23 (7) Unless otherwise provided, within 30 days after a
24 decision of the Commission on recoverable costs under this
25 Section, any interested party to the Commission's decision
26 may apply for a rehearing with respect to the decision. The

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1 Commission shall receive and consider the application for
2 rehearing and shall grant or deny the application in whole
3 or in part within 20 days after the date of the receipt of
4 the application by the Commission. If no rehearing is
5 applied for within the required 30 days or an application
6 for rehearing is denied, then the Commission decision shall
7 be final. If an application for rehearing is granted, then
8 the Commission shall hold a rehearing within 30 days after
9 granting the application. The decision of the Commission
10 upon rehearing shall be final.
11 Any person affected by a decision of the Commission
12 under this subsection (h-3) may have the decision reviewed
13 only under and in accordance with the Administrative Review
14 Law. Unless otherwise provided, the provisions of the
15 Administrative Review Law, all amendments and
16 modifications to that Law, and the rules adopted pursuant
17 to that Law shall apply to and govern all proceedings for
18 the judicial review of final administrative decisions of
19 the Commission under this subsection (h-3). The term
20 "administrative decision" is defined as in Section 3-101 of
21 the Code of Civil Procedure.
22 (8) The Capital Development Board shall adopt and make
23 public a policy detailing the process for retaining experts
24 under this Section. Any experts retained to assist with
25 calculating the range of capital costs or operations and
26 maintenance costs shall be retained no later than 45 days

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1 after July 13, 2011.
2 (h-4) No later than 90 days after the Illinois Power Agency
3submits the final draft sourcing agreement pursuant to
4subsection (h-1), the Commission shall approve a sourcing
5agreement containing (i) the capital costs, rate of return, and
6operations and maintenance costs established pursuant to
7subsection (h-3) and (ii) all other terms and conditions,
8rights, provisions, exceptions, and limitations contained in
9the final draft sourcing agreement; provided, however, the
10Commission shall correct typographical and scrivener's errors
11and modify the contract only as necessary to provide that the
12gas utility does not have the right to terminate the sourcing
13agreement due to any future events that may occur other than
14the clean coal SNG brownfield facility's failure to timely meet
15milestones, uncured default, extended force majeure, or
16abandonment. Once the sourcing agreement is approved, then the
17gas utility subject to that sourcing agreement shall have 45
18days after the date of the Commission's approval to enter into
19the sourcing agreement.
20 (h-5) Sequestration enforcement.
21 (A) All contracts entered into under subsection (h) of
22 this Section and all sourcing agreements under subsection
23 (h-1) of this Section, regardless of duration, shall
24 require the owner of any facility supplying SNG under the
25 contract or sourcing agreement to provide certified
26 documentation to the Commission each year, starting in the

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1 facility's first year of commercial operation, accurately
2 reporting the quantity of carbon dioxide emissions from the
3 facility that have been captured and sequestered and
4 reporting any quantities of carbon dioxide released from
5 the site or sites at which carbon dioxide emissions were
6 sequestered in prior years, based on continuous monitoring
7 of those sites.
8 (B) If, in any year, the owner of the clean coal SNG
9 facility fails to demonstrate that the SNG facility
10 captured and sequestered at least 90% of the total carbon
11 dioxide emissions that the facility would otherwise emit or
12 that sequestration of emissions from prior years has
13 failed, resulting in the release of carbon dioxide into the
14 atmosphere, then the owner of the clean coal SNG facility
15 must pay a penalty of $20 per ton of excess carbon dioxide
16 emissions not to exceed $40,000,000, in any given year
17 which shall be deposited into the Energy Efficiency Trust
18 Fund and distributed pursuant to subsection (b) of Section
19 6-6 of the Renewable Energy, Energy Efficiency, and Coal
20 Resources Development Law of 1997. On or before the 5-year
21 anniversary of the execution of the contract and every 5
22 years thereafter, an expert hired by the owner of the
23 facility with the approval of the Attorney General shall
24 conduct an analysis to determine the cost of sequestration
25 of at least 90% of the total carbon dioxide emissions the
26 plant would otherwise emit. If the analysis shows that the

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1 actual annual cost is greater than the penalty, then the
2 penalty shall be increased to equal the actual cost.
3 Provided, however, to the extent that the owner of the
4 facility described in subsection (h) of this Section can
5 demonstrate that the failure was as a result of acts of God
6 (including fire, flood, earthquake, tornado, lightning,
7 hurricane, or other natural disaster); any amendment,
8 modification, or abrogation of any applicable law or
9 regulation that would prevent performance; war; invasion;
10 act of foreign enemies; hostilities (regardless of whether
11 war is declared); civil war; rebellion; revolution;
12 insurrection; military or usurped power or confiscation;
13 terrorist activities; civil disturbance; riots;
14 nationalization; sabotage; blockage; or embargo, the owner
15 of the facility described in subsection (h) of this Section
16 shall not be subject to a penalty if and only if (i) it
17 promptly provides notice of its failure to the Commission;
18 (ii) as soon as practicable and consistent with any order
19 or direction from the Commission, it submits to the
20 Commission proposed modifications to its carbon capture
21 and sequestration plan; and (iii) it carries out its
22 proposed modifications in the manner and time directed by
23 the Commission.
24 If the Commission finds that the facility has not
25 satisfied each of these requirements, then the facility
26 shall be subject to the penalty. If the owner of the clean

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1 coal SNG facility captured and sequestered more than 90% of
2 the total carbon dioxide emissions that the facility would
3 otherwise emit, then the owner of the facility may credit
4 such additional amounts to reduce the amount of any future
5 penalty to be paid. The penalty resulting from the failure
6 to capture and sequester at least the minimum amount of
7 carbon dioxide shall not be passed on to a utility or its
8 customers.
9 If the clean coal SNG facility fails to meet the
10 requirements specified in this subsection (h-5), then the
11 Attorney General, on behalf of the People of the State of
12 Illinois, shall bring an action to enforce the obligations
13 related to the facility set forth in this subsection (h-5),
14 including any penalty payments owed, but not including the
15 physical obligation to capture and sequester at least 90%
16 of the total carbon dioxide emissions that the facility
17 would otherwise emit. Such action may be filed in any
18 circuit court in Illinois. By entering into a contract
19 pursuant to subsection (h) of this Section, the clean coal
20 SNG facility agrees to waive any objections to venue or to
21 the jurisdiction of the court with regard to the Attorney
22 General's action under this subsection (h-5).
23 Compliance with the sequestration requirements and any
24 penalty requirements specified in this subsection (h-5)
25 for the clean coal SNG facility shall be assessed annually
26 by the Commission, which may in its discretion retain an

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1 expert to facilitate its assessment. If any expert is
2 retained by the Commission, then the clean coal SNG
3 facility shall pay for the expert's reasonable fees, and
4 such costs shall not be passed through to the utility or
5 its customers.
6 In addition, carbon dioxide emission credits received
7 by the clean coal SNG facility in connection with
8 sequestration of carbon dioxide from the facility must be
9 sold in a timely fashion with any revenue, less applicable
10 fees and expenses and any expenses required to be paid by
11 facility for carbon dioxide transportation or
12 sequestration, deposited into the reconciliation account
13 within 30 days after receipt of such funds by the owner of
14 the clean coal SNG facility.
15 The clean coal SNG facility is prohibited from
16 transporting or sequestering carbon dioxide unless the
17 owner of the carbon dioxide pipeline that transfers the
18 carbon dioxide from the facility and the owner of the
19 sequestration site where the carbon dioxide captured by the
20 facility is stored has acquired all applicable permits
21 under applicable State and federal laws, statutes, rules,
22 or regulations prior to the transfer or sequestration of
23 carbon dioxide. The responsibility for compliance with the
24 sequestration requirements specified in this subsection
25 (h-5) for the clean coal SNG facility shall reside solely
26 with the clean coal SNG facility, regardless of whether the

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1 facility has contracted with another party to capture,
2 transport, or sequester carbon dioxide.
3 (C) If, in any year, the owner of a clean coal SNG
4 brownfield facility fails to demonstrate that the clean
5 coal SNG brownfield facility captured and sequestered at
6 least 85% of the total carbon dioxide emissions that the
7 facility would otherwise emit, then the owner of the clean
8 coal SNG brownfield facility must pay a penalty of $20 per
9 ton of excess carbon emissions up to $20,000,000, which
10 shall be deposited into the Energy Efficiency Trust Fund
11 and distributed pursuant to subsection (b) of Section 6-6
12 of the Renewable Energy, Energy Efficiency, and Coal
13 Resources Development Law of 1997. Provided, however, to
14 the extent that the owner of the clean coal SNG brownfield
15 facility can demonstrate that the failure was as a result
16 of acts of God (including fire, flood, earthquake, tornado,
17 lightning, hurricane, or other natural disaster); any
18 amendment, modification, or abrogation of any applicable
19 law or regulation that would prevent performance; war;
20 invasion; act of foreign enemies; hostilities (regardless
21 of whether war is declared); civil war; rebellion;
22 revolution; insurrection; military or usurped power or
23 confiscation; terrorist activities; civil disturbances;
24 riots; nationalization; sabotage; blockage; or embargo,
25 the owner of the clean coal SNG brownfield facility shall
26 not be subject to a penalty if and only if (i) it promptly
<

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1 provides notice of its failure to the Commission; (ii) as
2 soon as practicable and consistent with any order or
3 direction from the Commission, it submits to the Commission
4 proposed modifications to its carbon capture and
5 sequestration plan; and (iii) it carries out its proposed
6 modifications in the manner and time directed by the
7 Commission. If the Commission finds that the facility has
8 not satisfied each of these requirements, then the facility
9 shall be subject to the penalty. If the owner of a clean
10