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Illinois Senate Bill SB0308

Illinois 2023-2024 Regular Session

Illinois Senate Bill SB0308 Compare Versions

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11 103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 SB0308 Introduced 2/2/2023, by Sen. Ram Villivalam 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, 2024. LRB103 25664 HLH 52013 b A BILL FOR 103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 SB0308 Introduced 2/2/2023, by Sen. Ram Villivalam 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, 2024. LRB103 25664 HLH 52013 b LRB103 25664 HLH 52013 b A BILL FOR
22 103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 SB0308 Introduced 2/2/2023, by Sen. Ram Villivalam 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, 2024.
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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 SB0308 Introduced 2/2/2023, by Sen. Ram Villivalam SYNOPSIS AS INTRODUCED:
3838 30 ILCS 575/2 30 ILCS 575/2
3939 30 ILCS 575/2
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, 2024.
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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 who is individually certified by the Council as having
321321 2 been subjected to racial or ethnic prejudice or cultural
322322 3 bias within American society because of his or her
323323 4 identity as a member of a group and without regard to his
324324 5 or her individual qualities.
325325 6 (A) To certify that a person is a socially
326326 7 disadvantaged person, the Council must find at least
327327 8 one of the following:
328328 9 (i) that the person has at least one objective
329329 10 distinguishing feature that has contributed to the
330330 11 person's social disadvantage, such as race, ethnic
331331 12 origin, gender, disability, long-term residence in
332332 13 an environment isolated from the mainstream of
333333 14 American society, or other similar causes not
334334 15 common to individuals who are not socially
335335 16 disadvantaged;
336336 17 (ii) that the person has personally
337337 18 experienced substantial and chronic social
338338 19 disadvantage in American society; and
339339 20 (iii) that the totality of the person's
340340 21 circumstances shows that there has been a negative
341341 22 impact on the person's entry into or advancement
342342 23 in the business world because of the disadvantage.
343343 24 (B) In certifying a person as a socially
344344 25 disadvantaged person, the Council shall also consider
345345 26 the following:
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356356 1 (i) whether the person has been denied equal
357357 2 access to institutions of higher education and
358358 3 vocational training, excluded from social and
359359 4 professional association with students or
360360 5 teachers, denied educational honors rightfully
361361 6 earned, or subjected to social patterns or
362362 7 pressures that discouraged the individual from
363363 8 pursuing a professional or business education;
364364 9 (ii) whether the person has experienced any of
365365 10 the following: unequal treatment in hiring,
366366 11 promotion, or other aspects of professional
367367 12 advancement; the denial or diminishment of pay and
368368 13 fringe benefits and other terms and conditions of
369369 14 employment; retaliatory or discriminatory behavior
370370 15 by an employer or labor union; or social patterns
371371 16 or pressures that have channeled the individual
372372 17 into nonprofessional or nonbusiness fields; and
373373 18 (iii) whether the person has experienced any
374374 19 of the following: unequal access to credit or
375375 20 capital or the inability to acquire credit or
376376 21 capital under commercially favorable
377377 22 circumstances; unequal treatment in opportunities
378378 23 for government contracts or other work; unequal
379379 24 treatment by potential customers and business
380380 25 associates; or exclusion from business or
381381 26 professional organizations.
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392392 1 (14) "Economically disadvantaged person" means a
393393 2 socially disadvantaged person whose ability to compete in
394394 3 the free enterprise system has been impaired due to
395395 4 diminished capital and credit opportunities when compared
396396 5 to others in the same or similar line of business who are
397397 6 not socially disadvantaged.
398398 7 (A) Each individual claiming economic disadvantage
399399 8 must describe the conditions that are the basis for
400400 9 the claim in a narrative statement and must submit
401401 10 personal financial information. If the individual is
402402 11 married, he or she must also submit separate financial
403403 12 information for his or her spouse, unless the
404404 13 individual and the spouse are legally separated.
405405 14 (B) In considering diminished capital and credit
406406 15 opportunities, the Council shall examine factors
407407 16 relating to the personal financial condition of the
408408 17 individual, including personal income for the
409409 18 preceding 2 years (including bonuses and the value of
410410 19 company stock given in lieu of cash), personal net
411411 20 worth, and the fair market value of all assets owned by
412412 21 the individual, whether encumbered or not. In
413413 22 evaluating the individual's access to credit and
414414 23 capital, the Council shall also consider the financial
415415 24 condition of the applicant compared to the financial
416416 25 profiles of small businesses in the same primary
417417 26 industry classification or, if not available, in
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428428 1 similar lines of business that are not owned and
429429 2 controlled by socially and economically disadvantaged
430430 3 persons. The financial profiles that the Council
431431 4 compares shall include total assets, net sales, pretax
432432 5 profit, sales or working capital ratio, and net worth.
433433 6 (c) Asset transfers within 2 years.
434434 7 (i) Except as set forth in item (ii) of this
435435 8 subparagraph (C), the Council shall attribute to
436436 9 an individual claiming disadvantaged status any
437437 10 assets which that individual has transferred to an
438438 11 immediate family member, or to a trust, a
439439 12 beneficiary of which is an immediate family
440440 13 member, for less than fair market value, within 2
441441 14 years prior to a concern's application for
442442 15 participation in the Business Enterprise Program,
443443 16 unless the individual claiming disadvantaged
444444 17 status can demonstrate that the transfer is to or
445445 18 on behalf of an immediate family member for that
446446 19 individual's education, medical expenses, or some
447447 20 other form of essential support.
448448 21 (ii) The Council shall not attribute to an
449449 22 individual claiming disadvantaged status any
450450 23 assets transferred by that individual to an
451451 24 immediate family member that are consistent with
452452 25 the customary recognition of special occasions,
453453 26 such as birthdays, graduations, anniversaries, and
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464464 1 retirements.
465465 2 (iii) In determining an individual's access to
466466 3 capital and credit, the Business Enterprise
467467 4 Program may consider any assets that the
468468 5 individual transferred within the 2-year period
469469 6 described by item (i) of this subparagraph (c)
470470 7 that are not considered in evaluating the
471471 8 individual's assets and net worth, such as
472472 9 transfers to charities.
473473 10 (B) When a business is owned at least 51% by any
474474 11 combination of minority persons, women, or persons with
475475 12 disabilities, even though none of the 3 classes alone holds at
476476 13 least a 51% interest, the ownership requirement for purposes
477477 14 of this Act is considered to be met. The certification
478478 15 category for the business is that of the class holding the
479479 16 largest ownership interest in the business. If 2 or more
480480 17 classes have equal ownership interests, the certification
481481 18 category shall be determined by the business.
482482 19 (Source: P.A. 101-601, eff. 1-1-20; 101-657, eff. 1-1-22;
483483 20 102-29, eff. 6-25-21; 102-1119, eff. 1-23-23.)
484484 21 Section 99. Effective date. This Act takes effect January
485485 22 1, 2024.
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