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Illinois House Bill HB2906

Illinois 2023-2024 Regular Session

Illinois House Bill HB2906 Compare Versions

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11 103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB2906 Introduced , by Rep. Kevin John Olickal SYNOPSIS AS INTRODUCED: 30 ILCS 575/2 Amends the Business Enterprise for Minorities, Women, and Persons with Disabilities Act. Provides that certain economically disadvantaged persons, among other specified individuals, are considered minority persons under the Act. Provides additional requirements concerning qualification as a socially disadvantaged person. Defines "economically disadvantaged person". Provides requirements concerning qualification as an economically disadvantaged person. Makes other changes. Effective January 1, 2023. LRB103 29428 DTM 55819 b A BILL FOR 103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB2906 Introduced , by Rep. Kevin John Olickal SYNOPSIS AS INTRODUCED: 30 ILCS 575/2 30 ILCS 575/2 Amends the Business Enterprise for Minorities, Women, and Persons with Disabilities Act. Provides that certain economically disadvantaged persons, among other specified individuals, are considered minority persons under the Act. Provides additional requirements concerning qualification as a socially disadvantaged person. Defines "economically disadvantaged person". Provides requirements concerning qualification as an economically disadvantaged person. Makes other changes. Effective January 1, 2023. LRB103 29428 DTM 55819 b LRB103 29428 DTM 55819 b A BILL FOR
22 103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB2906 Introduced , by Rep. Kevin John Olickal SYNOPSIS AS INTRODUCED:
33 30 ILCS 575/2 30 ILCS 575/2
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55 Amends the Business Enterprise for Minorities, Women, and Persons with Disabilities Act. Provides that certain economically disadvantaged persons, among other specified individuals, are considered minority persons under the Act. Provides additional requirements concerning qualification as a socially disadvantaged person. Defines "economically disadvantaged person". Provides requirements concerning qualification as an economically disadvantaged person. Makes other changes. Effective January 1, 2023.
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1111 1 AN ACT concerning finance.
1212 2 Be it enacted by the People of the State of Illinois,
1313 3 represented in the General Assembly:
1414 4 Section 5. The Business Enterprise for Minorities, Women,
1515 5 and Persons with Disabilities Act is amended by changing
1616 6 Section 2 as follows:
1717 7 (30 ILCS 575/2)
1818 8 (Section scheduled to be repealed on June 30, 2024)
1919 9 Sec. 2. Definitions.
2020 10 (A) For the purpose of this Act, the following terms shall
2121 11 have the following definitions:
2222 12 (1) "Minority person" shall mean a person who is a
2323 13 citizen or lawful permanent resident of the United States
2424 14 and who is any of the following:
2525 15 (a) American Indian or Alaska Native (a person
2626 16 having origins in any of the original peoples of North
2727 17 and South America, including Central America, and who
2828 18 maintains tribal affiliation or community attachment).
2929 19 (b) Asian (a person having origins in any of the
3030 20 original peoples of the Far East, Southeast Asia, or
3131 21 the Indian subcontinent, including, but not limited
3232 22 to, Cambodia, China, India, Japan, Korea, Malaysia,
3333 23 Pakistan, the Philippine Islands, Thailand, and
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3737 103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB2906 Introduced , by Rep. Kevin John Olickal SYNOPSIS AS INTRODUCED:
3838 30 ILCS 575/2 30 ILCS 575/2
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4040 Amends the Business Enterprise for Minorities, Women, and Persons with Disabilities Act. Provides that certain economically disadvantaged persons, among other specified individuals, are considered minority persons under the Act. Provides additional requirements concerning qualification as a socially disadvantaged person. Defines "economically disadvantaged person". Provides requirements concerning qualification as an economically disadvantaged person. Makes other changes. Effective January 1, 2023.
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6868 1 Vietnam).
6969 2 (c) Black or African American (a person having
7070 3 origins in any of the black racial groups of Africa).
7171 4 (d) Hispanic or Latino (a person of Cuban,
7272 5 Mexican, Puerto Rican, South or Central American, or
7373 6 other Spanish culture or origin, regardless of race).
7474 7 (e) Native Hawaiian or Other Pacific Islander (a
7575 8 person having origins in any of the original peoples
7676 9 of Hawaii, Guam, Samoa, or other Pacific Islands).
7777 10 (f) A person who qualifies as a socially
7878 11 disadvantaged person.
7979 12 (g) A person who qualifies as an economically
8080 13 disadvantaged person.
8181 14 (2) "Woman" shall mean a person who is a citizen or
8282 15 lawful permanent resident of the United States and who is
8383 16 of the female gender.
8484 17 (2.05) "Person with a disability" means a person who
8585 18 is a citizen or lawful resident of the United States and is
8686 19 a person qualifying as a person with a disability under
8787 20 subdivision (2.1) of this subsection (A).
8888 21 (2.1) "Person with a disability" means a person with a
8989 22 severe physical or mental disability that:
9090 23 (a) results from:
9191 24 amputation,
9292 25 arthritis,
9393 26 autism,
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104104 1 blindness,
105105 2 burn injury,
106106 3 cancer,
107107 4 cerebral palsy,
108108 5 Crohn's disease,
109109 6 cystic fibrosis,
110110 7 deafness,
111111 8 head injury,
112112 9 heart disease,
113113 10 hemiplegia,
114114 11 hemophilia,
115115 12 respiratory or pulmonary dysfunction,
116116 13 an intellectual disability,
117117 14 mental illness,
118118 15 multiple sclerosis,
119119 16 muscular dystrophy,
120120 17 musculoskeletal disorders,
121121 18 neurological disorders, including stroke and
122122 19 epilepsy,
123123 20 paraplegia,
124124 21 quadriplegia and other spinal cord conditions,
125125 22 sickle cell anemia,
126126 23 ulcerative colitis,
127127 24 specific learning disabilities, or
128128 25 end stage renal failure disease; and
129129 26 (b) substantially limits one or more of the
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140140 1 person's major life activities.
141141 2 Another disability or combination of disabilities may
142142 3 also be considered as a severe disability for the purposes
143143 4 of item (a) of this subdivision (2.1) if it is determined
144144 5 by an evaluation of rehabilitation potential to cause a
145145 6 comparable degree of substantial functional limitation
146146 7 similar to the specific list of disabilities listed in
147147 8 item (a) of this subdivision (2.1).
148148 9 (3) "Minority-owned business" means a business which
149149 10 is at least 51% owned by one or more minority persons, or
150150 11 in the case of a corporation, at least 51% of the stock in
151151 12 which is owned by one or more minority persons; and the
152152 13 management and daily business operations of which are
153153 14 controlled by one or more of the minority individuals who
154154 15 own it.
155155 16 (4) "Women-owned business" means a business which is
156156 17 at least 51% owned by one or more women, or, in the case of
157157 18 a corporation, at least 51% of the stock in which is owned
158158 19 by one or more women; and the management and daily
159159 20 business operations of which are controlled by one or more
160160 21 of the women who own it.
161161 22 (4.1) "Business owned by a person with a disability"
162162 23 means a business that is at least 51% owned by one or more
163163 24 persons with a disability and the management and daily
164164 25 business operations of which are controlled by one or more
165165 26 of the persons with disabilities who own it. A
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176176 1 not-for-profit agency for persons with disabilities that
177177 2 is exempt from taxation under Section 501 of the Internal
178178 3 Revenue Code of 1986 is also considered a "business owned
179179 4 by a person with a disability".
180180 5 (4.2) "Council" means the Business Enterprise Council
181181 6 for Minorities, Women, and Persons with Disabilities
182182 7 created under Section 5 of this Act.
183183 8 (4.3) "Commission" means, unless the context clearly
184184 9 indicates otherwise, the Commission on Equity and
185185 10 Inclusion created under the Commission on Equity and
186186 11 Inclusion Act.
187187 12 (5) "State contracts" means all contracts entered into
188188 13 by the State, any agency or department thereof, or any
189189 14 public institution of higher education, including
190190 15 community college districts, regardless of the source of
191191 16 the funds with which the contracts are paid, which are not
192192 17 subject to federal reimbursement. "State contracts" does
193193 18 not include contracts awarded by a retirement system,
194194 19 pension fund, or investment board subject to Section
195195 20 1-109.1 of the Illinois Pension Code. This definition
196196 21 shall control over any existing definition under this Act
197197 22 or applicable administrative rule.
198198 23 "State construction contracts" means all State
199199 24 contracts entered into by a State agency or public
200200 25 institution of higher education for the repair,
201201 26 remodeling, renovation or construction of a building or
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212212 1 structure, or for the construction or maintenance of a
213213 2 highway defined in Article 2 of the Illinois Highway Code.
214214 3 (6) "State agencies" shall mean all departments,
215215 4 officers, boards, commissions, institutions and bodies
216216 5 politic and corporate of the State, but does not include
217217 6 the Board of Trustees of the University of Illinois, the
218218 7 Board of Trustees of Southern Illinois University, the
219219 8 Board of Trustees of Chicago State University, the Board
220220 9 of Trustees of Eastern Illinois University, the Board of
221221 10 Trustees of Governors State University, the Board of
222222 11 Trustees of Illinois State University, the Board of
223223 12 Trustees of Northeastern Illinois University, the Board of
224224 13 Trustees of Northern Illinois University, the Board of
225225 14 Trustees of Western Illinois University, municipalities or
226226 15 other local governmental units, or other State
227227 16 constitutional officers.
228228 17 (7) "Public institutions of higher education" means
229229 18 the University of Illinois, Southern Illinois University,
230230 19 Chicago State University, Eastern Illinois University,
231231 20 Governors State University, Illinois State University,
232232 21 Northeastern Illinois University, Northern Illinois
233233 22 University, Western Illinois University, the public
234234 23 community colleges of the State, and any other public
235235 24 universities, colleges, and community colleges now or
236236 25 hereafter established or authorized by the General
237237 26 Assembly.
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248248 1 (8) "Certification" means a determination made by the
249249 2 Council or by one delegated authority from the Council to
250250 3 make certifications, or by a State agency with statutory
251251 4 authority to make such a certification, that a business
252252 5 entity is a business owned by a minority, woman, or person
253253 6 with a disability for whatever purpose. A business owned
254254 7 and controlled by women shall be certified as a
255255 8 "woman-owned business". A business owned and controlled by
256256 9 women who are also minorities shall be certified as both a
257257 10 "women-owned business" and a "minority-owned business".
258258 11 (9) "Control" means the exclusive or ultimate and sole
259259 12 control of the business including, but not limited to,
260260 13 capital investment and all other financial matters,
261261 14 property, acquisitions, contract negotiations, legal
262262 15 matters, officer-director-employee selection and
263263 16 comprehensive hiring, operating responsibilities,
264264 17 cost-control matters, income and dividend matters,
265265 18 financial transactions and rights of other shareholders or
266266 19 joint partners. Control shall be real, substantial and
267267 20 continuing, not pro forma. Control shall include the power
268268 21 to direct or cause the direction of the management and
269269 22 policies of the business and to make the day-to-day as
270270 23 well as major decisions in matters of policy, management
271271 24 and operations. Control shall be exemplified by possessing
272272 25 the requisite knowledge and expertise to run the
273273 26 particular business and control shall not include simple
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284284 1 majority or absentee ownership.
285285 2 (10) "Business" means a business that has annual gross
286286 3 sales of less than $150,000,000 as evidenced by the
287287 4 federal income tax return of the business. A firm with
288288 5 gross sales in excess of this cap may apply to the Council
289289 6 for certification for a particular contract if the firm
290290 7 can demonstrate that the contract would have significant
291291 8 impact on businesses owned by minorities, women, or
292292 9 persons with disabilities as suppliers or subcontractors
293293 10 or in employment of minorities, women, or persons with
294294 11 disabilities. Firms with gross sales in excess of this cap
295295 12 that are granted certification by the Council shall be
296296 13 granted certification for the life of the contract,
297297 14 including available renewals.
298298 15 (11) "Utilization plan" means a form and additional
299299 16 documentations included in all bids or proposals that
300300 17 demonstrates a vendor's proposed utilization of vendors
301301 18 certified by the Business Enterprise Program to meet the
302302 19 targeted goal. The utilization plan shall demonstrate that
303303 20 the Vendor has either: (1) met the entire contract goal or
304304 21 (2) requested a full or partial waiver and made good faith
305305 22 efforts towards meeting the goal.
306306 23 (12) "Business Enterprise Program" means the Business
307307 24 Enterprise Program of the Commission on Equity and
308308 25 Inclusion.
309309 26 (13) "Socially disadvantaged person" means a person
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320320 1 individually certified by the Council as having been
321321 2 subjected to racial or ethnic prejudice or cultural bias
322322 3 within American society because of his or her identity as
323323 4 a member of a group and without regard to his or her
324324 5 individual qualities.
325325 6 (a) Social disadvantage must include the
326326 7 following:
327327 8 (i) at least one objective distinguishing
328328 9 feature that has contributed to social
329329 10 disadvantage, such as race, ethnic origin, gender,
330330 11 disability, long-term residence in an environment
331331 12 isolated from the mainstream of American society,
332332 13 or other similar causes not common to individuals
333333 14 who are not socially disadvantaged;
334334 15 (ii) personal experiences of substantial and
335335 16 chronic social disadvantage in American society;
336336 17 and
337337 18 (iii) negative impact on entry into or
338338 19 advancement in the business world because of the
339339 20 disadvantage. The Business Enterprise Program will
340340 21 consider any relevant evidence in assessing this
341341 22 element, and in every case, as provided under
342342 23 subparagraph (b), the Business Enterprise Program
343343 24 will consider education, employment, and business
344344 25 history, when applicable, to determine whether the
345345 26 totality of circumstances shows disadvantage in
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356356 1 entering into or advancing in the business world.
357357 2 (b) In determining whether a person qualifies as a
358358 3 socially disadvantaged person, the Business Enterprise
359359 4 Program will further consider the following:
360360 5 (i) Education. Such factors as denial of equal
361361 6 access to institutions of higher education and
362362 7 vocational training, exclusion from social and
363363 8 professional association with students or
364364 9 teachers, denial of educational honors rightfully
365365 10 earned, and social patterns or pressures which
366366 11 discouraged the individual from pursuing a
367367 12 professional or business education.
368368 13 (ii) Employment. Such factors as unequal
369369 14 treatment in hiring, promotions and other aspects
370370 15 of professional advancement, pay and fringe
371371 16 benefits, and other terms and conditions of
372372 17 employment; retaliatory or discriminatory behavior
373373 18 by an employer or labor union; and social patterns
374374 19 or pressures which have channeled the individual
375375 20 into non-professional or non-business fields.
376376 21 (iii) Business history. Such factors as
377377 22 unequal access to credit or capital, acquisition
378378 23 of credit or capital under commercially
379379 24 unfavorable circumstances, unequal treatment in
380380 25 opportunities for government contracts or other
381381 26 work, unequal treatment by potential customers and
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392392 1 business associates, and exclusion from business
393393 2 or professional organizations.
394394 3 (14) "Economically disadvantaged person" means a
395395 4 socially disadvantaged person whose ability to compete in
396396 5 the free enterprise system has been impaired due to
397397 6 diminished capital and credit opportunities as compared to
398398 7 others in the same or similar line of business who are not
399399 8 socially disadvantaged.
400400 9 (a) Each individual claiming economic disadvantage
401401 10 must describe the conditions which are the basis for
402402 11 the claim in a narrative statement, and must submit
403403 12 personal financial information. If that individual is
404404 13 married, he or she must also submit separate financial
405405 14 information for his or her spouse, unless the
406406 15 individual and the spouse are legally separated.
407407 16 (b) In considering diminished capital and credit
408408 17 opportunities, the Business Enterprise Program will
409409 18 examine factors relating to the personal financial
410410 19 condition of any individual claiming disadvantaged
411411 20 status, including personal income for the preceding 2
412412 21 years (including bonuses and the value of company
413413 22 stock given in lieu of cash), personal net worth, and
414414 23 the fair market value of all assets, whether
415415 24 encumbered or not. The Business Enterprise Program
416416 25 will also consider the financial condition of the
417417 26 applicant compared to the financial profiles of small
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428428 1 businesses in the same primary industry
429429 2 classification, or, if not available, in similar lines
430430 3 of business, which are not owned and controlled by
431431 4 socially and economically disadvantaged persons in
432432 5 evaluating the individual's access to credit and
433433 6 capital. The financial profiles that the Business
434434 7 Enterprise Program will compare shall include total
435435 8 assets, net sales, pre-tax profit, sales or working
436436 9 capital ratio, and net worth.
437437 10 (c) Asset transfers within 2 years.
438438 11 (i) Except as set forth in item (ii) of this
439439 12 subparagraph (c), the Business Enterprise Program
440440 13 will attribute to an individual claiming
441441 14 disadvantaged status any assets which that
442442 15 individual has transferred to an immediate family
443443 16 member, or to a trust, a beneficiary of which is an
444444 17 immediate family member, for less than fair market
445445 18 value, within 2 years prior to a concern's
446446 19 application for participation in the Business
447447 20 Enterprise Program, unless the individual claiming
448448 21 disadvantaged status can demonstrate that the
449449 22 transfer is to or on behalf of an immediate family
450450 23 member for that individual's education, medical
451451 24 expenses, or some other form of essential support.
452452 25 (ii) The Business Enterprise Program will not
453453 26 attribute to an individual claiming disadvantaged
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464464 1 status any assets transferred by that individual
465465 2 to an immediate family member that are consistent
466466 3 with the customary recognition of special
467467 4 occasions, such as birthdays, graduations,
468468 5 anniversaries, and retirements.
469469 6 (iii) In determining an individual's access to
470470 7 capital and credit, the Business Enterprise
471471 8 Program may consider any assets that the
472472 9 individual transferred within the 2-year period
473473 10 described by item (i) of this subparagraph (c)
474474 11 that are not considered in evaluating the
475475 12 individual's assets and net worth, such as
476476 13 transfers to charities.
477477 14 (B) When a business is owned at least 51% by any
478478 15 combination of minority persons, women, or persons with
479479 16 disabilities, even though none of the 3 classes alone holds at
480480 17 least a 51% interest, the ownership requirement for purposes
481481 18 of this Act is considered to be met. The certification
482482 19 category for the business is that of the class holding the
483483 20 largest ownership interest in the business. If 2 or more
484484 21 classes have equal ownership interests, the certification
485485 22 category shall be determined by the business.
486486 23 (Source: P.A. 101-601, eff. 1-1-20; 101-657, eff. 1-1-22;
487487 24 102-29, eff. 6-25-21; 102-1119, eff. 1-23-23.)
488488 25 Section 99. Effective date. This Act takes effect January
489489 26 1, 2023.
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