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
 


SB1479LRB101 09440 RJF 54538 b



1 AN ACT concerning finance.


2 Be it enacted by the People of the State of Illinois,

3represented in the General Assembly:



4 Section 5. The Illinois Procurement Code is amended by 
5adding Section 45-37 as follows:

6 (30 ILCS 500/45-37 new)
7 Sec. 45-37. Not-for-profit organizations owned by women, 
8minorities, and persons with a disability.
9 (a) Qualification. Supplies and services may be procured 
10from any qualified not-for-profit organization owned by women, 
11minorities, or persons with a disability that: 
12  (1) complies with applicable Illinois laws governing 
13 private not-for-profit organizations and is recognized by 
14 the United States Internal Revenue Service as a tax-exempt 
15 entity described in Section 501(c)(3) of the Internal 
16 Revenue Code of 1986; and
17  (2) is certified as a "women-owned business", a 
18 "minority-owned business", or a "business owned by a person 
19 with a disability" as defined under Section 2 of the 
20 Business Enterprise for Minorities, Women, and Persons 
21 with Disabilities Act. 
22 (b) Participation. To participate, the not-for-profit 
23organization must have indicated an interest in providing the 
 
 
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1supplies and services, must meet the specifications and needs 
2of the using agency, and must set a fair and reasonable price. 
3 (c) Conditions for Use. Each chief procurement officer 
4shall, in consultation with the Department of Central 
5Management Services, determine which articles, materials, 
6services, food stuffs, and supplies that are produced, 
7manufactured, or provided by a qualified not-for-profit 
8organization under this Section shall be given preference by 
9purchasing agencies procuring those items. 
10 (d) Subcontracts. Subcontracts shall be permitted for 
11agreements authorized under this Section. For the purposes of 
12this subsection (d), "subcontract" means any acquisition from 
13another source of supplies, not including raw materials, or 
14services required by a qualified not-for-profit organization 
15to provide the supplies or services that are the subject of the 
16contract between the State and the qualified not-for-profit 
17organization.
18 The Department of Central Management Services shall 
19develop guidelines to be followed by qualified not-for-profit 
20organizations under this Section when seeking and establishing 
21subcontracts in order to fulfill State contract requirements. 
22These guidelines shall include the following: 
23  (A) The Department must approve all subcontracts and 
24 substantive amendments to subcontracts prior to execution 
25 or amendment of the subcontract.
26  (B) A qualified not-for-profit organization shall not

 
 
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1 enter into a subcontract, or any combination of 
2 subcontracts, to fulfill an entire requirement, contract, 
3 or order without the written approval of the Department.
4  (C) A qualified not-for-profit organization shall make 
5 reasonable efforts to utilize subcontracts with other 
6 not-for-profit organizations owned by women, minorities, 
7 or persons with a disability. 
8  (D) For any subcontract not currently performed by a

9 qualified not-for-profit organization, the primary 
10 qualified not-for-profit organization must provide to the 
11 Department the following: (i) a written explanation as to 
12 why the subcontract is not performed by a qualified 
13 not-for-profit organization; and (ii) a written plan to 
14 transfer the subcontract to a qualified not-for-profit 
15 agency, as reasonable.
16 (e) Annual report. Beginning January 1, 2021, and for each 
17year thereafter, the Department of Central Management Services 
18shall submit a report to the Governor and the General Assembly 
19concerning qualified not-for-profit organizations 
20participating under this Section, and the report shall include, 
21but not be limited to: (i) the services provided by 
22participating qualified not-for-profit organizations, 
23including the cost for such services; (ii) the State agencies 
24to which such services were provided; (iii) whether a 
25subcontractor was used in providing the services; and (iv) any 
26other information the Department may deem necessary. 
 
 
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1 (f) Rules. The Department of Central Management Services 
2shall adopt rules to implement and administer the procurement 
3preference provided under this Section. 

4 Section 10. The Business Enterprise for Minorities, Women, 
5and Persons with
Disabilities Act is amended by changing 
6Section 2 as follows:



7 (30 ILCS 575/2)



8 (Section scheduled to be repealed on June 30, 2020)
9 Sec. 2. Definitions. 

10 (A) For the purpose of this Act, the following
terms shall 
11have the following definitions:

12  (1) "Minority person" shall mean a person who is a 
13 citizen or lawful
permanent resident of the United States 
14 and who is any of the following:

15   (a) American Indian or Alaska Native (a person 
16 having origins in any of the original peoples of North 
17 and South America, including Central America, and who 
18 maintains tribal affiliation or community attachment).
19   (b) Asian (a person having origins in any of the 
20 original peoples of the Far East, Southeast Asia, or 
21 the Indian subcontinent, including, but not limited 
22 to, Cambodia, China, India, Japan, Korea, Malaysia, 
23 Pakistan, the Philippine Islands, Thailand, and 
24 Vietnam).
 
 
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1   (c) Black or African American (a person having 
2 origins in any of the black racial groups of Africa). 
3 Terms such as "Haitian" or "Negro" can be used in 
4 addition to "Black or African American".
5   (d) Hispanic or Latino (a person of Cuban, Mexican, 
6 Puerto Rican, South or Central American, or other 
7 Spanish culture or origin, regardless of race).
8   (e) Native Hawaiian or Other Pacific Islander (a 
9 person having origins in any of the original peoples of 
10 Hawaii, Guam, Samoa, or other Pacific Islands).

11  (2) "Woman" shall mean a person who is a citizen or 
12 lawful permanent
resident of the United States and who is 
13 of the female gender.

14  (2.05) "Person with a disability" means a person who is 
15 a citizen or
lawful resident of the United States and is a 
16 person qualifying as a person with a disability under 
17 subdivision (2.1) of this subsection (A).

18  (2.1) "Person with a disability" means a person with a 
19 severe physical or mental disability that:

20   (a) results from:

21   amputation,

22   arthritis,

23   autism,

24   blindness,

25   burn injury,

26   cancer,

 
 
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1   cerebral palsy,

2   Crohn's disease, 
3   cystic fibrosis,

4   deafness,

5   head injury,

6   heart disease,

7   hemiplegia,

8   hemophilia,

9   respiratory or pulmonary dysfunction,

10   an intellectual disability,

11   mental illness,

12   multiple sclerosis,

13   muscular dystrophy,

14   musculoskeletal disorders,

15   neurological disorders, including stroke and 
16 epilepsy,

17   paraplegia,

18   quadriplegia and other spinal cord conditions,

19   sickle cell anemia,

20   ulcerative colitis, 
21   specific learning disabilities, or

22   end stage renal failure disease; and

23   (b) substantially limits one or more of the 
24 person's major life activities.

25  Another disability or combination of disabilities may 
26 also be considered
as a severe disability for the purposes 
 
 
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1 of item (a) of this
subdivision (2.1) if it is determined 
2 by an evaluation of
rehabilitation potential to
cause a 
3 comparable degree of substantial functional limitation 
4 similar to
the specific list of disabilities listed in item 
5 (a) of this
subdivision (2.1).

6  (3) "Minority-owned business" means a business which 
7 is at least
51% owned by one or more minority persons, or 
8 in the case of a
corporation, at least 51% of the stock in 
9 which is owned by one or
more minority persons; and the 
10 management and daily business operations of
which are 
11 controlled by one or more of the minority individuals who 
12 own it. A not-for-profit organization whose Board of 
13 Directors consists of at least 51% minority persons or 
14 whose Executive Director is a minority person and that is 
15 exempt from taxation under Section 501 of the Internal 
16 Revenue Code of 1986 is also considered a "minority-owned 
17 business". 

18  (4) "Women-owned business" means a business which is at 
19 least
51% owned by one or more women, or, in the case of a 
20 corporation, at
least 51% of the stock in which is owned by 
21 one or more women; and the
management and daily business 
22 operations of which are controlled by one or
more of the 
23 women who own it. A not-for-profit organization whose Board 
24 of Directors consists of at least 51% women or whose 
25 Executive Director is a woman and that is exempt from 
26 taxation under Section 501 of the Internal Revenue Code of 
 
 
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1 1986 is also considered a "women-owned business". 

2  (4.1) "Business owned by a person with a disability" 
3 means a business
that is at least 51% owned by one or more 
4 persons with a disability
and the management and daily 
5 business operations of which
are controlled by one or more 
6 of the persons with disabilities who own it. A

7 not-for-profit agency for persons with disabilities or a 
8 not-for-profit organization whose Board of Directors 
9 consists of at least 51% persons with a disability or whose 
10 Executive Director is a person with a disability and that 
11 is exempt from
taxation under Section 501 of the Internal 
12 Revenue Code of 1986 is also
considered a "business owned 
13 by a person with a disability".

14  (4.2) "Council" means the Business Enterprise Council 
15 for Minorities, Women, and Persons with Disabilities 
16 created under Section 5 of this Act.

17  (5) "State contracts" means all contracts entered into 
18 by the State, any agency or department thereof, or any 
19 public institution of higher education, including 
20 community college districts, regardless of the source of 
21 the funds with which the contracts are paid, which are not 
22 subject to federal reimbursement. "State contracts" does 
23 not include contracts awarded by a retirement system, 
24 pension fund, or investment board subject to Section 
25 1-109.1 of the Illinois Pension Code. This definition shall 
26 control over any existing definition under this Act or 
 
 
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1 applicable administrative rule.

2  "State construction contracts" means all State 
3 contracts entered
into by a State agency or public 
4 institution of higher education for the repair, 
5 remodeling,
renovation or
construction of a building or 
6 structure, or for the construction or
maintenance of a 
7 highway defined in Article 2 of the Illinois Highway
Code.

8  (6) "State agencies" shall mean all departments, 
9 officers, boards,
commissions, institutions and bodies 
10 politic and corporate of the State,
but does not include 
11 the Board of Trustees of the University of Illinois,
the 
12 Board of Trustees of Southern Illinois University,
the 
13 Board of Trustees
of Chicago State University, the Board of 
14 Trustees of Eastern Illinois
University, the Board of 
15 Trustees of Governors State University, the Board of

16 Trustees of Illinois State University, the Board of 
17 Trustees of Northeastern
Illinois
University, the Board of 
18 Trustees of Northern Illinois University, the Board of

19 Trustees of Western Illinois University,
municipalities or 
20 other local governmental units, or other State 
21 constitutional
officers.

22  (7) "Public institutions of higher education" means 
23 the University of Illinois, Southern Illinois University, 
24 Chicago State University, Eastern Illinois University, 
25 Governors State University, Illinois State University, 
26 Northeastern Illinois University, Northern Illinois 
 
 
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1 University, Western Illinois University, the public 
2 community colleges of the State, and any other public 
3 universities, colleges, and community colleges now or 
4 hereafter established or authorized by the General 
5 Assembly.

6  (8) "Certification" means a determination made by the 
7 Council
or by one delegated authority from the Council to 
8 make certifications, or by
a State agency with statutory 
9 authority to make such a certification, that a
business 
10 entity is a business owned by a
minority, woman, or person 
11 with a disability for whatever
purpose. A business owned 
12 and controlled by women shall be certified as a 
13 "woman-owned business". A business owned and controlled by 
14 women who are also minorities shall be certified as both a 
15 "women-owned business" and a "minority-owned business".

16  (9) "Control" means the exclusive or ultimate and sole 
17 control of the
business including, but not limited to, 
18 capital investment and all other
financial matters, 
19 property, acquisitions, contract negotiations, legal

20 matters, officer-director-employee selection and 
21 comprehensive hiring,
operating responsibilities, 
22 cost-control matters, income and dividend
matters, 
23 financial transactions and rights of other shareholders or 
24 joint
partners. Control shall be real, substantial and 
25 continuing, not pro forma.
Control shall include the power 
26 to direct or cause the direction of the
management and 
 
 
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1 policies of the business and to make the day-to-day as well

2 as major decisions in matters of policy, management and 
3 operations.
Control shall be exemplified by possessing the 
4 requisite knowledge and
expertise to run the particular 
5 business and control shall not include
simple majority or 
6 absentee ownership.

7  (10) "Business" means a business that has annual gross 
8 sales of less than $75,000,000 as evidenced by the federal 
9 income tax return of the business. A firm with gross sales 
10 in excess of this cap may apply to the Council for 
11 certification for a particular contract if the firm can 
12 demonstrate that the contract would have significant 
13 impact on businesses owned by minorities, women, or persons 
14 with disabilities as suppliers or subcontractors or in 
15 employment of minorities, women, or persons with 
16 disabilities.

17  (11) "Utilization plan" means a form and additional 
18 documentations included in all bids or proposals that 
19 demonstrates a vendor's proposed utilization of vendors 
20 certified by the Business Enterprise Program to meet the 
21 targeted goal. The utilization plan shall demonstrate that 
22 the Vendor has either: (1) met the entire contract goal or 
23 (2) requested a full or partial waiver and made good faith 
24 efforts towards meeting the goal. 
25  (12) "Business Enterprise Program" means the Business 
26 Enterprise Program of the Department of Central Management 
 
 
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1 Services. 
2 (B) When a business is owned at least 51% by any 
3combination of
minority persons, women, or persons with 
4disabilities,
even though none of the 3 classes alone holds at 
5least a 51% interest, the
ownership
requirement for purposes of 
6this Act is considered to be met. When a not-for-profit 
7organization's Board of Directors consists of at least 51% of 
8any combination of minority persons, women, or persons with 
9disabilities even though none of the 3 classes alone holds at 
10least 51% share, the Board membership requirement for purposes 
11of this Act is considered to be met. The
certification category 
12for the business or not-for-profit organization is that of the 
13class holding the
largest ownership
interest in the business. 
14If 2 or more classes have equal ownership interests,
the 
15certification category shall be determined by
the business or 
16not-for-profit organization.

17(Source: P.A. 99-143, eff. 7-27-15; 99-462, eff. 8-25-15; 
1899-642, eff. 7-28-16; 100-391, eff. 8-25-17.)

19 Section 15. The Public Utilities Act is amended by changing 
20Section 5-117 as follows:

21 (220 ILCS 5/5-117)
22 Sec. 5-117. Supplier diversity goals.
23 (a) The public policy of this State is to collaboratively 
24work with companies that serve Illinois residents to improve 
 
 
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1their supplier diversity in a non-antagonistic manner.
2 (b) The Commission shall require all gas, electric, and 
3water companies with at least 100,000 customers under its 
4authority, as well as suppliers of wind energy, solar energy,

5hydroelectricity, nuclear energy, and any other supplier of

6energy within this State, to submit an annual report by April 
715, 2015 and every April 15 thereafter, in a searchable Adobe 
8PDF format, on all procurement goals and actual spending for 
9female-owned, minority-owned, veteran-owned, person with a 
10disability-owned, and small business enterprises in the 
11previous calendar year. These goals shall be expressed as a 
12percentage of the total work performed by the entity submitting 
13the report, and the actual spending for all female-owned, 
14minority-owned, veteran-owned, person with a disability-owned, 
15and small business enterprises shall also be expressed as a 
16percentage of the total work performed by the entity submitting 
17the report.
18 (c) Each participating company in its annual report shall 
19include the following information:
20  (1) an explanation of the plan for the next year to 
21 increase participation;
22  (2) an explanation of the plan to increase the goals;
23  (3) the areas of procurement each company shall be 
24 actively seeking more participation in in the next year;
25  (4) an outline of the plan to alert and encourage 
26 potential vendors in that area to seek business from the 
 
 
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1 company;
2  (5) an explanation of the challenges faced in finding 
3 quality vendors and offer any suggestions for what the 
4 Commission could do to be helpful to identify those 
5 vendors;
6  (6) a list of the certifications the company 
7 recognizes;
8  (7) the point of contact for any potential vendor who 
9 wishes to do business with the company and explain the 
10 process for a vendor to enroll with the company as a 
11 minority-owned, women-owned, or veteran-owned, or person 
12 with a disability-owned company; and
13  (8) any particular success stories to encourage other 
14 companies to emulate best practices.
15 (d) Each annual report shall include as much State-specific 
16data as possible. If the submitting entity does not submit 
17State-specific data, then the company shall include any 
18national data it does have and explain why it could not submit 
19State-specific data and how it intends to do so in future 
20reports, if possible.
21 (e) Each annual report shall include the rules, 
22regulations, and definitions used for the procurement goals in 
23the company's annual report.
24 (f) The Commission and all participating entities shall 
25hold an annual workshop open to the public in 2015 and every 
26year thereafter on the state of supplier diversity to 
 
 
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1collaboratively seek solutions to structural impediments to 
2achieving stated goals, including testimony from each 
3participating entity as well as subject matter experts and 
4advocates. The Commission shall publish a database on its 
5website of the point of contact for each participating entity 
6for supplier diversity, along with a list of certifications 
7each company recognizes from the information submitted in each 
8annual report. The Commission shall publish each annual report 
9on its website and shall maintain each annual report for at 
10least 5 years.

11 (g) For the purposes of this Section, female-owned 
12(women-owned), minority-owned, veteran-owned, and person with 
13a disability-owned companies or businesses include 
14not-for-profit organizations that are exempt from taxation 
15under Section 501(c)(3) of the Internal Revenue Code of 1986, 
16in which at least 50% of the managing board are women, 
17minorities, veterans, or persons with a disability, or in which 
18the executive director is a woman, minority, veteran, or person 
19with a disability. 
20(Source: P.A. 98-1056, eff. 8-26-14; 99-906, eff. 6-1-17.)