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Illinois House Bill HB3888

Illinois 2023-2024 Regular Session

Illinois House Bill HB3888 Compare Versions

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11 103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB3888 Introduced , by Rep. Lilian Jimnez SYNOPSIS AS INTRODUCED: New Act220 ILCS 5/5-117 Creates the Diversity in Not-for-Profit Act. Allows any State agency, county, or unit of local government of the State of Illinois that certifies entities under a disadvantaged business enterprise program to certify organizations as minority-led not-for-profit organizations, woman-led not-for-profit organizations, and not-for-profit organizations led by a person with a disability under the Act. Amends the Public Utilities Act. Provides that specified supplier diversity goal requirements under the Act apply to minority-led not-for-profit organizations, woman-led not-for-profit organizations, and not-for-profit organizations led by a person with a disability. Defines terms. LRB103 29718 DTM 56123 b A BILL FOR 103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB3888 Introduced , by Rep. Lilian Jimnez SYNOPSIS AS INTRODUCED: New Act220 ILCS 5/5-117 New Act 220 ILCS 5/5-117 Creates the Diversity in Not-for-Profit Act. Allows any State agency, county, or unit of local government of the State of Illinois that certifies entities under a disadvantaged business enterprise program to certify organizations as minority-led not-for-profit organizations, woman-led not-for-profit organizations, and not-for-profit organizations led by a person with a disability under the Act. Amends the Public Utilities Act. Provides that specified supplier diversity goal requirements under the Act apply to minority-led not-for-profit organizations, woman-led not-for-profit organizations, and not-for-profit organizations led by a person with a disability. Defines terms. LRB103 29718 DTM 56123 b LRB103 29718 DTM 56123 b A BILL FOR
22 103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB3888 Introduced , by Rep. Lilian Jimnez SYNOPSIS AS INTRODUCED:
33 New Act220 ILCS 5/5-117 New Act 220 ILCS 5/5-117
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66 Creates the Diversity in Not-for-Profit Act. Allows any State agency, county, or unit of local government of the State of Illinois that certifies entities under a disadvantaged business enterprise program to certify organizations as minority-led not-for-profit organizations, woman-led not-for-profit organizations, and not-for-profit organizations led by a person with a disability under the Act. Amends the Public Utilities Act. Provides that specified supplier diversity goal requirements under the Act apply to minority-led not-for-profit organizations, woman-led not-for-profit organizations, and not-for-profit organizations led by a person with a disability. Defines terms.
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1212 1 AN ACT concerning State government.
1313 2 Be it enacted by the People of the State of Illinois,
1414 3 represented in the General Assembly:
1515 4 Section 1. Short title. This Act may be cited as the
1616 5 Diversity in Not-for-Profit Act.
1717 6 Section 5. Definitions. As used in this Act:
1818 7 "Board of directors" has the same meaning as provided
1919 8 under subsection (d) of Section 101.80 of the General Not For
2020 9 Profit Corporation Act of 1986.
2121 10 "Certification" means a determination that a
2222 11 not-for-profit organization meets the defined classifications
2323 12 of a "minority-led not-for-profit organization", a "woman-led
2424 13 not-for-profit organization", or a "not-for-profit
2525 14 organization led by a person with a disability".
2626 15 "Key employees" means an employee of the organization who
2727 16 is:
2828 17 (1) the person who has ultimate responsibility for
2929 18 implementing the decisions of the board of directors or
3030 19 for supervising the management, administration, or
3131 20 operation of the organization;
3232 21 (2) the person who has ultimate responsibility for
3333 22 managing the organization's finances; or
3434 23 (3) the person who:
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3838 103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB3888 Introduced , by Rep. Lilian Jimnez SYNOPSIS AS INTRODUCED:
3939 New Act220 ILCS 5/5-117 New Act 220 ILCS 5/5-117
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4141 220 ILCS 5/5-117
4242 Creates the Diversity in Not-for-Profit Act. Allows any State agency, county, or unit of local government of the State of Illinois that certifies entities under a disadvantaged business enterprise program to certify organizations as minority-led not-for-profit organizations, woman-led not-for-profit organizations, and not-for-profit organizations led by a person with a disability under the Act. Amends the Public Utilities Act. Provides that specified supplier diversity goal requirements under the Act apply to minority-led not-for-profit organizations, woman-led not-for-profit organizations, and not-for-profit organizations led by a person with a disability. Defines terms.
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7171 1 (A) has responsibilities, powers, or influence
7272 2 over the organization as a whole that is similar to the
7373 3 persons described in paragraphs (1) and (2);
7474 4 (B) manages a discrete segment or activity of the
7575 5 organizations that represents 25% or more of the
7676 6 activities, assets, income, or expenses of the
7777 7 organization, as compared to the organization as a
7878 8 whole, or has or shares authority to control or
7979 9 determine 25% or more of the organization's capital
8080 10 expenditures, operating budget, or compensation for
8181 11 employees; and
8282 12 (C) is one of the 5 highest compensated employees
8383 13 in the organization.
8484 14 "Minority-led not-for-profit organization" means an
8585 15 organization that is tax-exempt under Sections 501(c)(3) or
8686 16 501(c)(4) of the Internal Revenue Code of 1986, has filed all
8787 17 required forms under the Solicitation for Charity Act, and for
8888 18 which:
8989 19 (1) at least 51% of the members of the organization's
9090 20 board of directors are minority persons, or at least 51%
9191 21 of the members of the organization's board of directors
9292 22 and key employees are minority persons;
9393 23 (2) the organization is regularly and actively engaged
9494 24 in the activity for which it is formed;
9595 25 (3) the organization is not dependent upon or
9696 26 influenced by another non-eligible person or organization;
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107107 1 and
108108 2 (4) the organization has not been established or
109109 3 reorganized for the specific purpose of obtaining a
110110 4 certification under this Act.
111111 5 "Not-for-profit organization led by a person with a
112112 6 disability" means an organization that is tax-exempt under
113113 7 Sections 501(c)(3) or 501(c)(4) of the Internal Revenue Code
114114 8 of 1986, has filed all required forms under the Solicitation
115115 9 for Charity Act, and for which:
116116 10 (1) at least 51% of the members of the organization's
117117 11 board of directors are persons with a disability, or at
118118 12 least 51% of the members of the organization's board of
119119 13 directors and key employees are persons with a disability;
120120 14 (2) the organization is regularly and actively engaged
121121 15 in the activity for which it is formed;
122122 16 (3) the organization is not dependent upon or
123123 17 influenced by another non-eligible person or organization;
124124 18 and
125125 19 (4) the organization has not been established or
126126 20 reorganized for the specific purpose of obtaining a
127127 21 certification under this Act.
128128 22 "Woman-led not-for-profit organization" means an
129129 23 organization that is tax-exempt under Sections 501(c)(3) or
130130 24 501(c)(4) of the Internal Revenue Code of 1986, has filed all
131131 25 required forms under the Solicitation for Charity Act, and for
132132 26 which:
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143143 1 (1) at least 51% of the members of the organization's
144144 2 board of directors are women, or at least 51% of the
145145 3 members of the organization's board of directors and key
146146 4 employees are women;
147147 5 (2) the organization is regularly and actively engaged
148148 6 in the activity for which it is formed;
149149 7 (3) the organization is not dependent upon or
150150 8 influenced by another non-eligible person or organization;
151151 9 and
152152 10 (4) the organization has not been established or
153153 11 reorganized for the specific purpose of obtaining a
154154 12 certification under this Act.
155155 13 Section 10. Certification.
156156 14 (a) For the purpose of assuring that a not-for-profit
157157 15 organization taking advantage of this Act is legitimately
158158 16 classified as a minority-led not-for-profit organization, a
159159 17 woman-led not-for-profit organization, or a not-for-profit
160160 18 organization led by a person with a disability, any State
161161 19 agency, county, or unit of local government of the State of
162162 20 Illinois that, on the effective date of this Act, certifies
163163 21 entities under a disadvantaged business enterprise program
164164 22 created under (i) the Business Enterprise for Minorities,
165165 23 Women, and Persons with Disabilities Act, (ii) home rule
166166 24 authorization under the Illinois Constitution, or (iii) any
167167 25 similar statutory or home rule authorizations, may also
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178178 1 certify the organizations defined under this Act. Any such
179179 2 State agency, county, or unit of local government, if it
180180 3 elects to certify hereunder, shall also maintain a list of all
181181 4 not-for-profit organizations legitimately classified as a
182182 5 minority-led not-for-profit organization, a woman-led
183183 6 not-for-profit organization, or a not-for-profit organization
184184 7 led by a person with a disability.
185185 8 (b) When a not-for-profit organization's board of
186186 9 directors, or the board of directors together with key
187187 10 employees, consists of at least 51% of any combination of
188188 11 minority persons, women, or persons with disabilities, even
189189 12 though none of the 3 classes alone holds at least a 51% share,
190190 13 the 51% membership requirement for purposes of certification
191191 14 under this Act shall be considered met. The certification
192192 15 category for not-for-profit organizations shall be that of the
193193 16 class holding the largest share of positions on the board of
194194 17 directors, or on the board of directors together with key
195195 18 employees, of a not-for-profit organization. If 2 or more
196196 19 classes have an equal share of positions on the board of
197197 20 directors, or on the board of directors together with key
198198 21 employees, the certification category shall be determined by
199199 22 the not-for-profit organization.
200200 23 Section 15. Rules. Any State agency that elects to certify
201201 24 organizations under this Act shall adopt rules necessary to
202202 25 implement and enforce the requirements of this Act.
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213213 1 Section 100. The Public Utilities Act is amended by
214214 2 changing Section 5-117 as follows:
215215 3 (220 ILCS 5/5-117)
216216 4 Sec. 5-117. Supplier diversity goals.
217217 5 (a) The public policy of this State is to collaboratively
218218 6 work with companies and not-for-profit organizations that
219219 7 serve Illinois residents to improve their supplier diversity
220220 8 in a non-antagonistic manner.
221221 9 (a-5) For the purposes of this Section, "minority-led
222222 10 not-for-profit organization", "woman-led not-for-profit
223223 11 organization", and "not-for-profit organization led by a
224224 12 person with a disability" shall have the same meanings as
225225 13 provided under the Diversity in Not-for-Profit Act.
226226 14 (b) The Commission shall require all gas, electric, and
227227 15 water utilities with at least 100,000 customers under its
228228 16 authority to submit an annual report by April 15, 2015 and
229229 17 every April 15 thereafter, in a searchable Adobe PDF format,
230230 18 on all procurement goals and actual spending for female-owned,
231231 19 minority-owned, veteran-owned, person with a disability-owned,
232232 20 and small business enterprises, as well as minority-led
233233 21 not-for-profit organizations, woman-led not-for-profit
234234 22 organizations, and not-for-profit organizations led by a
235235 23 person with a disability, in the previous calendar year. These
236236 24 goals shall be expressed as a percentage of the total work
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247247 1 performed by the entity submitting the report, and the actual
248248 2 spending for all female-owned, minority-owned, veteran-owned,
249249 3 person with a disability-owned, and small business
250250 4 enterprises, as well as minority-led not-for-profit
251251 5 organizations, woman-led not-for-profit organizations, and
252252 6 not-for-profit organizations led by a person with a
253253 7 disability, shall also be expressed as a percentage of the
254254 8 total work performed by the entity submitting the report.
255255 9 (c) Each participating company in its annual report shall
256256 10 include the following information:
257257 11 (1) an explanation of the plan for the next year to
258258 12 increase participation;
259259 13 (2) an explanation of the plan to increase the goals;
260260 14 (3) the areas of procurement each company shall be
261261 15 actively seeking more participation in the next year;
262262 16 (3.5) a buying plan for the specific goods and
263263 17 services the company intends to buy in the next 6 to 18
264264 18 months, that is either (i) organized by and reported at
265265 19 the level of each applicable North American Industry
266266 20 Classification System code, (ii) provided using a method,
267267 21 system, or description similar to the North American
268268 22 Industry Classification System, or (iii) provided using
269269 23 the major categories of goods and related services
270270 24 utilized in the company's procurement system, and
271271 25 including any procurement codes used by the company, to
272272 26 assist entrepreneurs and diverse companies to understand
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283283 1 upcoming opportunities to work with the company, however,
284284 2 a utility shall not be required to include
285285 3 commercially-sensitive data, nonpublic procurement
286286 4 information, or other information that could compromise a
287287 5 utility's ability to negotiate the most advantageous price
288288 6 or terms;
289289 7 (4) an outline of the plan to alert and encourage
290290 8 potential vendors in that area to seek business from the
291291 9 company;
292292 10 (5) an explanation of the challenges faced in finding
293293 11 quality vendors and offer any suggestions for what the
294294 12 Commission could do to be helpful to identify those
295295 13 vendors;
296296 14 (6) a list of the certifications the company
297297 15 recognizes;
298298 16 (7) the point of contact for any potential vendor who
299299 17 wishes to do business with the company and explain the
300300 18 process for a vendor to enroll with the company as a
301301 19 minority-owned, women-owned, or veteran-owned, or person
302302 20 with a disability-owned company, or a minority-led
303303 21 not-for-profit organization, a woman-led not-for-profit
304304 22 organization, or a not-for-profit organization led by a
305305 23 person with a disability; and
306306 24 (8) any particular success stories to encourage other
307307 25 companies to emulate best practices.
308308 26 (d) Each annual report shall include as much
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319319 1 State-specific data as possible. If the submitting entity does
320320 2 not submit State-specific data, then the company shall include
321321 3 any national data it does have and explain why it could not
322322 4 submit State-specific data and how it intends to do so in
323323 5 future reports, if possible.
324324 6 (e) Each annual report shall include the rules,
325325 7 regulations, and definitions used for the procurement goals in
326326 8 the company's annual report.
327327 9 (f) The Commission and all participating entities shall
328328 10 hold an annual workshop open to the public in 2015 and every
329329 11 year thereafter on the state of supplier diversity to
330330 12 collaboratively seek solutions to structural impediments to
331331 13 achieving stated goals, including testimony from each
332332 14 participating entity as well as subject matter experts and
333333 15 advocates. The Commission shall publish a database on its
334334 16 website of the point of contact for each participating entity
335335 17 for supplier diversity, along with a list of certifications
336336 18 each company recognizes from the information submitted in each
337337 19 annual report. The Commission shall publish each annual report
338338 20 on its website and shall maintain each annual report for at
339339 21 least 5 years.
340340 22 (Source: P.A. 102-558, eff. 8-20-21; 102-662, eff. 9-15-21;
341341 23 102-673, eff. 11-30-21; 102-1031, eff. 5-27-22.)
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