Bill Text: IL SB1479 | 2019-2020 | 101st General Assembly | Introduced

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Bill Title: Amends the Illinois Procurement Code. Creates a procurement preference for not-for-profit organizations owned by women, minorities, and persons with a disability. Amends the Business Enterprise for Minorities, Women, and Persons with Disabilities Act. Allows for the certification of and the preference in awarding of State contracts to not-for-profit organizations owned by women, minorities, and persons with a disability under the Act. Amends the Public Utilities Act. Provides that specified supplier diversity goal requirements under the Act apply to not-for-profit female-owned (women-owned), minority-owned, veteran-owned, and person with a disability-owned companies or businesses.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Failed) 2021-01-13 - Session Sine Die [SB1479 Detail]

Download: Illinois-2019-SB1479-Introduced.html

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101ST GENERAL ASSEMBLY State of Illinois 2019 and 2020 SB1479 Introduced 2/13/2019, by Sen. Ann Gillespie SYNOPSIS AS INTRODUCED:
30 ILCS 500/45-37 new
30 ILCS 575/2
220 ILCS 5/5-117
Amends the Illinois Procurement Code. Creates a procurement preference for not-for-profit organizations owned by women, minorities, and persons with a disability. Amends the Business Enterprise for Minorities, Women, and Persons with Disabilities Act. Allows for the certification of and the preference in awarding of State contracts to not-for-profit organizations owned by women, minorities, and persons with a disability under the Act. Amends the Public Utilities Act. Provides that specified supplier diversity goal requirements under the Act apply to not-for-profit female-owned (women-owned), minority-owned, veteran-owned, and person with a disability-owned companies or businesses.
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FISCAL NOTE ACT MAY APPLY
A BILL FOR
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AN ACT concerning finance.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Illinois Procurement Code is amended by
adding Section 45-37 as follows:
(30 ILCS 500/45-37 new)
Sec. 45-37. Not-for-profit organizations owned by women,
minorities, and persons with a disability.
(a) Qualification. Supplies and services may be procured
from any qualified not-for-profit organization owned by women,
minorities, or persons with a disability that:
(1) complies with applicable Illinois laws governing
private not-for-profit organizations and is recognized by
the United States Internal Revenue Service as a tax-exempt
entity described in Section 501(c)(3) of the Internal
Revenue Code of 1986; and
(2) is certified as a "women-owned business", a
"minority-owned business", or a "business owned by a person
with a disability" as defined under Section 2 of the
Business Enterprise for Minorities, Women, and Persons
with Disabilities Act.
(b) Participation. To participate, the not-for-profit
organization must have indicated an interest in providing the

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supplies and services, must meet the specifications and needs
of the using agency, and must set a fair and reasonable price.
(c) Conditions for Use. Each chief procurement officer
shall, in consultation with the Department of Central
Management Services, determine which articles, materials,
services, food stuffs, and supplies that are produced,
manufactured, or provided by a qualified not-for-profit
organization under this Section shall be given preference by
purchasing agencies procuring those items.
(d) Subcontracts. Subcontracts shall be permitted for
agreements authorized under this Section. For the purposes of
this subsection (d), "subcontract" means any acquisition from
another source of supplies, not including raw materials, or
services required by a qualified not-for-profit organization
to provide the supplies or services that are the subject of the
contract between the State and the qualified not-for-profit
organization.
The Department of Central Management Services shall
develop guidelines to be followed by qualified not-for-profit
organizations under this Section when seeking and establishing
subcontracts in order to fulfill State contract requirements.
These guidelines shall include the following:
(A) The Department must approve all subcontracts and
substantive amendments to subcontracts prior to execution
or amendment of the subcontract.
(B) A qualified not-for-profit organization shall not

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enter into a subcontract, or any combination of
subcontracts, to fulfill an entire requirement, contract,
or order without the written approval of the Department.
(C) A qualified not-for-profit organization shall make
reasonable efforts to utilize subcontracts with other
not-for-profit organizations owned by women, minorities,
or persons with a disability.
(D) For any subcontract not currently performed by a
qualified not-for-profit organization, the primary
qualified not-for-profit organization must provide to the
Department the following: (i) a written explanation as to
why the subcontract is not performed by a qualified
not-for-profit organization; and (ii) a written plan to
transfer the subcontract to a qualified not-for-profit
agency, as reasonable.
(e) Annual report. Beginning January 1, 2021, and for each
year thereafter, the Department of Central Management Services
shall submit a report to the Governor and the General Assembly
concerning qualified not-for-profit organizations
participating under this Section, and the report shall include,
but not be limited to: (i) the services provided by
participating qualified not-for-profit organizations,
including the cost for such services; (ii) the State agencies
to which such services were provided; (iii) whether a
subcontractor was used in providing the services; and (iv) any
other information the Department may deem necessary.

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(f) Rules. The Department of Central Management Services
shall adopt rules to implement and administer the procurement
preference provided under this Section.
Section 10. The Business Enterprise for Minorities, Women,
and Persons with Disabilities Act is amended by changing
Section 2 as follows:
(30 ILCS 575/2)
(Section scheduled to be repealed on June 30, 2020)
Sec. 2. Definitions.
(A) For the purpose of this Act, the following terms shall
have the following definitions:
(1) "Minority person" shall mean a person who is a
citizen or lawful permanent resident of the United States
and who is any of the following:
(a) American Indian or Alaska Native (a person
having origins in any of the original peoples of North
and South America, including Central America, and who
maintains tribal affiliation or community attachment).
(b) Asian (a person having origins in any of the
original peoples of the Far East, Southeast Asia, or
the Indian subcontinent, including, but not limited
to, Cambodia, China, India, Japan, Korea, Malaysia,
Pakistan, the Philippine Islands, Thailand, and
Vietnam).

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(c) Black or African American (a person having
origins in any of the black racial groups of Africa).
Terms such as "Haitian" or "Negro" can be used in
addition to "Black or African American".
(d) Hispanic or Latino (a person of Cuban, Mexican,
Puerto Rican, South or Central American, or other
Spanish culture or origin, regardless of race).
(e) Native Hawaiian or Other Pacific Islander (a
person having origins in any of the original peoples of
Hawaii, Guam, Samoa, or other Pacific Islands).
(2) "Woman" shall mean a person who is a citizen or
lawful permanent resident of the United States and who is
of the female gender.
(2.05) "Person with a disability" means a person who is
a citizen or lawful resident of the United States and is a
person qualifying as a person with a disability under
subdivision (2.1) of this subsection (A).
(2.1) "Person with a disability" means a person with a
severe physical or mental disability that:
(a) results from:
amputation,
arthritis,
autism,
blindness,
burn injury,
cancer,

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cerebral palsy,
Crohn's disease,
cystic fibrosis,
deafness,
head injury,
heart disease,
hemiplegia,
hemophilia,
respiratory or pulmonary dysfunction,
an intellectual disability,
mental illness,
multiple sclerosis,
muscular dystrophy,
musculoskeletal disorders,
neurological disorders, including stroke and
epilepsy,
paraplegia,
quadriplegia and other spinal cord conditions,
sickle cell anemia,
ulcerative colitis,
specific learning disabilities, or
end stage renal failure disease; and
(b) substantially limits one or more of the
person's major life activities.
Another disability or combination of disabilities may
also be considered as a severe disability for the purposes

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of item (a) of this subdivision (2.1) if it is determined
by an evaluation of rehabilitation potential to cause a
comparable degree of substantial functional limitation
similar to the specific list of disabilities listed in item
(a) of this subdivision (2.1).
(3) "Minority-owned business" means a business which
is at least 51% owned by one or more minority persons, or
in the case of a corporation, at least 51% of the stock in
which is owned by one or more minority persons; and the
management and daily business operations of which are
controlled by one or more of the minority individuals who
own it. A not-for-profit organization whose Board of
Directors consists of at least 51% minority persons or
whose Executive Director is a minority person and that is
exempt from taxation under Section 501 of the Internal
Revenue Code of 1986 is also considered a "minority-owned
business".
(4) "Women-owned business" means a business which is at
least 51% owned by one or more women, or, in the case of a
corporation, at least 51% of the stock in which is owned by
one or more women; and the management and daily business
operations of which are controlled by one or more of the
women who own it. A not-for-profit organization whose Board
of Directors consists of at least 51% women or whose
Executive Director is a woman and that is exempt from
taxation under Section 501 of the Internal Revenue Code of

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

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applicable administrative rule.
"State construction contracts" means all State
contracts entered into by a State agency or public
institution of higher education for the repair,
remodeling, renovation or construction of a building or
structure, or for the construction or maintenance of a
highway defined in Article 2 of the Illinois Highway Code.
(6) "State agencies" shall mean all departments,
officers, boards, commissions, institutions and bodies
politic and corporate of the State, but does not include
the Board of Trustees of the University of Illinois, the
Board of Trustees of Southern Illinois University, the
Board of Trustees of Chicago State University, the Board of
Trustees of Eastern Illinois University, the Board of
Trustees of Governors State University, the Board of
Trustees of Illinois State University, the Board of
Trustees of Northeastern Illinois University, the Board of
Trustees of Northern Illinois University, the Board of
Trustees of Western Illinois University, municipalities or
other local governmental units, or other State
constitutional officers.
(7) "Public institutions of higher education" means
the University of Illinois, Southern Illinois University,
Chicago State University, Eastern Illinois University,
Governors State University, Illinois State University,
Northeastern Illinois University, Northern Illinois

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University, Western Illinois University, the public
community colleges of the State, and any other public
universities, colleges, and community colleges now or
hereafter established or authorized by the General
Assembly.
(8) "Certification" means a determination made by the
Council or by one delegated authority from the Council to
make certifications, or by a State agency with statutory
authority to make such a certification, that a business
entity is a business owned by a minority, woman, or person
with a disability for whatever purpose. A business owned
and controlled by women shall be certified as a
"woman-owned business". A business owned and controlled by
women who are also minorities shall be certified as both a
"women-owned business" and a "minority-owned business".
(9) "Control" means the exclusive or ultimate and sole
control of the business including, but not limited to,
capital investment and all other financial matters,
property, acquisitions, contract negotiations, legal
matters, officer-director-employee selection and
comprehensive hiring, operating responsibilities,
cost-control matters, income and dividend matters,
financial transactions and rights of other shareholders or
joint partners. Control shall be real, substantial and
continuing, not pro forma. Control shall include the power
to direct or cause the direction of the management and

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policies of the business and to make the day-to-day as well
as major decisions in matters of policy, management and
operations. Control shall be exemplified by possessing the
requisite knowledge and expertise to run the particular
business and control shall not include simple majority or
absentee ownership.
(10) "Business" means a business that has annual gross
sales of less than $75,000,000 as evidenced by the federal
income tax return of the business. A firm with gross sales
in excess of this cap may apply to the Council for
certification for a particular contract if the firm can
demonstrate that the contract would have significant
impact on businesses owned by minorities, women, or persons
with disabilities as suppliers or subcontractors or in
employment of minorities, women, or persons with
disabilities.
(11) "Utilization plan" means a form and additional
documentations included in all bids or proposals that
demonstrates a vendor's proposed utilization of vendors
certified by the Business Enterprise Program to meet the
targeted goal. The utilization plan shall demonstrate that
the Vendor has either: (1) met the entire contract goal or
(2) requested a full or partial waiver and made good faith
efforts towards meeting the goal.
(12) "Business Enterprise Program" means the Business
Enterprise Program of the Department of Central Management

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Services.
(B) When a business is owned at least 51% by any
combination of minority persons, women, or persons with
disabilities, even though none of the 3 classes alone holds at
least a 51% interest, the ownership requirement for purposes of
this Act is considered to be met. When a not-for-profit
organization's Board of Directors consists of at least 51% of
any combination of minority persons, women, or persons with
disabilities even though none of the 3 classes alone holds at
least 51% share, the Board membership requirement for purposes
of this Act is considered to be met. The certification category
for the business or not-for-profit organization is that of the
class holding the largest ownership interest in the business.
If 2 or more classes have equal ownership interests, the
certification category shall be determined by the business or
not-for-profit organization.
(Source: P.A. 99-143, eff. 7-27-15; 99-462, eff. 8-25-15;
99-642, eff. 7-28-16; 100-391, eff. 8-25-17.)
Section 15. The Public Utilities Act is amended by changing
Section 5-117 as follows:
(220 ILCS 5/5-117)
Sec. 5-117. Supplier diversity goals.
(a) The public policy of this State is to collaboratively
work with companies that serve Illinois residents to improve

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their supplier diversity in a non-antagonistic manner.
(b) The Commission shall require all gas, electric, and
water companies with at least 100,000 customers under its
authority, as well as suppliers of wind energy, solar energy,
hydroelectricity, nuclear energy, and any other supplier of
energy within this State, to submit an annual report by April
15, 2015 and every April 15 thereafter, in a searchable Adobe
PDF format, on all procurement goals and actual spending for
female-owned, minority-owned, veteran-owned, person with a
disability-owned, and small business enterprises in the
previous calendar year. These goals shall be expressed as a
percentage of the total work performed by the entity submitting
the report, and the actual spending for all female-owned,
minority-owned, veteran-owned, person with a disability-owned,
and small business enterprises shall also be expressed as a
percentage of the total work performed by the entity submitting
the report.
(c) Each participating company in its annual report shall
include the following information:
(1) an explanation of the plan for the next year to
increase participation;
(2) an explanation of the plan to increase the goals;
(3) the areas of procurement each company shall be
actively seeking more participation in in the next year;
(4) an outline of the plan to alert and encourage
potential vendors in that area to seek business from the

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company;
(5) an explanation of the challenges faced in finding
quality vendors and offer any suggestions for what the
Commission could do to be helpful to identify those
vendors;
(6) a list of the certifications the company
recognizes;
(7) the point of contact for any potential vendor who
wishes to do business with the company and explain the
process for a vendor to enroll with the company as a
minority-owned, women-owned, or veteran-owned, or person
with a disability-owned company; and
(8) any particular success stories to encourage other
companies to emulate best practices.
(d) Each annual report shall include as much State-specific
data as possible. If the submitting entity does not submit
State-specific data, then the company shall include any
national data it does have and explain why it could not submit
State-specific data and how it intends to do so in future
reports, if possible.
(e) Each annual report shall include the rules,
regulations, and definitions used for the procurement goals in
the company's annual report.
(f) The Commission and all participating entities shall
hold an annual workshop open to the public in 2015 and every
year thereafter on the state of supplier diversity to

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collaboratively seek solutions to structural impediments to
achieving stated goals, including testimony from each
participating entity as well as subject matter experts and
advocates. The Commission shall publish a database on its
website of the point of contact for each participating entity
for supplier diversity, along with a list of certifications
each company recognizes from the information submitted in each
annual report. The Commission shall publish each annual report
on its website and shall maintain each annual report for at
least 5 years.
(g) For the purposes of this Section, female-owned
(women-owned), minority-owned, veteran-owned, and person with
a disability-owned companies or businesses include
not-for-profit organizations that are exempt from taxation
under Section 501(c)(3) of the Internal Revenue Code of 1986,
in which at least 50% of the managing board are women,
minorities, veterans, or persons with a disability, or in which
the executive director is a woman, minority, veteran, or person
with a disability.
(Source: P.A. 98-1056, eff. 8-26-14; 99-906, eff. 6-1-17.)