IL
Illinois House Bill HB2961

Illinois 2025-2026 Regular Session

Illinois House Bill HB2961 Compare Versions

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1+104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 HB2961 Introduced , by Rep. William "Will" Davis SYNOPSIS AS INTRODUCED: New Act30 ILCS 105/5.1030 new30 ILCS 571/3530 ILCS 574/40-10 Creates the Best Interest of the State Act. Provides that any collective bargaining unit, contractor, or subcontractor participating in a project labor agreement shall satisfy specified requirements to promote racial inclusion, diversity, and equity. Contains provisions concerning prequalification of collective bargaining units, contractors, and subcontractors; the determination of the demographic make-up of counties; complaints to the Commission on Equity and Inclusion; and penalties. Amends the State Finance Act to create the Local Construction Training and Development Fund. Amends the Project Labor Agreements Act and the Commission on Equity and Inclusion Act to make conforming changes. Effective immediately. LRB104 09927 SPS 19997 b A BILL FOR 104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 HB2961 Introduced , by Rep. William "Will" Davis SYNOPSIS AS INTRODUCED: New Act30 ILCS 105/5.1030 new30 ILCS 571/3530 ILCS 574/40-10 New Act 30 ILCS 105/5.1030 new 30 ILCS 571/35 30 ILCS 574/40-10 Creates the Best Interest of the State Act. Provides that any collective bargaining unit, contractor, or subcontractor participating in a project labor agreement shall satisfy specified requirements to promote racial inclusion, diversity, and equity. Contains provisions concerning prequalification of collective bargaining units, contractors, and subcontractors; the determination of the demographic make-up of counties; complaints to the Commission on Equity and Inclusion; and penalties. Amends the State Finance Act to create the Local Construction Training and Development Fund. Amends the Project Labor Agreements Act and the Commission on Equity and Inclusion Act to make conforming changes. Effective immediately. LRB104 09927 SPS 19997 b LRB104 09927 SPS 19997 b A BILL FOR
2+104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 HB2961 Introduced , by Rep. William "Will" Davis SYNOPSIS AS INTRODUCED:
3+New Act30 ILCS 105/5.1030 new30 ILCS 571/3530 ILCS 574/40-10 New Act 30 ILCS 105/5.1030 new 30 ILCS 571/35 30 ILCS 574/40-10
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5+30 ILCS 105/5.1030 new
6+30 ILCS 571/35
7+30 ILCS 574/40-10
8+Creates the Best Interest of the State Act. Provides that any collective bargaining unit, contractor, or subcontractor participating in a project labor agreement shall satisfy specified requirements to promote racial inclusion, diversity, and equity. Contains provisions concerning prequalification of collective bargaining units, contractors, and subcontractors; the determination of the demographic make-up of counties; complaints to the Commission on Equity and Inclusion; and penalties. Amends the State Finance Act to create the Local Construction Training and Development Fund. Amends the Project Labor Agreements Act and the Commission on Equity and Inclusion Act to make conforming changes. Effective immediately.
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314 1 AN ACT concerning employment.
415 2 Be it enacted by the People of the State of Illinois,
516 3 represented in the General Assembly:
617 4 Section 1. Short title. This Act may be cited as the Best
718 5 Interest of the State Act.
819 6 Section 5. Findings and Purpose.
920 7 (a) The purposes of this Act are to ensure that
1021 8 construction projects in Illinois require project labor
1122 9 agreements that provide access to minorities, women, veterans,
1223 10 and persons with disabilities and to improve access to
1324 11 apprenticeships and construction employment for workers in
1425 12 rural geographic areas and workers from groups traditionally
1526 13 underrepresented in the construction industry, including
1627 14 minorities, women, veterans, and persons with disabilities.
1728 15 (b) The General Assembly finds and declares the following:
1829 16 (1) Construction workers are highly skilled
1930 17 professionals and should be afforded all the tenants of a
2031 18 high-quality job, including competitive pay, job security,
2132 19 advancement opportunities, and fully funded benefits,
2233 20 including healthcare, work-family, and retirement
2334 21 benefits.
2435 22 (2) It is in the best interest of this State's
2536 23 construction workforce to ensure that workers have equal
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40+104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 HB2961 Introduced , by Rep. William "Will" Davis SYNOPSIS AS INTRODUCED:
41+New Act30 ILCS 105/5.1030 new30 ILCS 571/3530 ILCS 574/40-10 New Act 30 ILCS 105/5.1030 new 30 ILCS 571/35 30 ILCS 574/40-10
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46+Creates the Best Interest of the State Act. Provides that any collective bargaining unit, contractor, or subcontractor participating in a project labor agreement shall satisfy specified requirements to promote racial inclusion, diversity, and equity. Contains provisions concerning prequalification of collective bargaining units, contractors, and subcontractors; the determination of the demographic make-up of counties; complaints to the Commission on Equity and Inclusion; and penalties. Amends the State Finance Act to create the Local Construction Training and Development Fund. Amends the Project Labor Agreements Act and the Commission on Equity and Inclusion Act to make conforming changes. Effective immediately.
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3477 1 access to apprenticeships in the construction industry,
3578 2 regardless of where they live, and to ensure that
3679 3 employers subject to project labor agreement are making
3780 4 efforts in good faith to use local workers on construction
3881 5 projects.
3982 6 (3) It is in the best interest of this State's
4083 7 construction workforce, including current and future
4184 8 apprentices, for workers employed on public works projects
4285 9 to reflect the demographic makeup of the community in
4386 10 which the project is taking place.
4487 11 (4) It is in the best interest of this State and all of
4588 12 the residents of this State for the General Assembly to
4689 13 adopt policies that provide opportunity for all workers,
4790 14 regardless of race, geographic region, creed, or gender to
4891 15 participate in the construction workforce.
4992 16 Section 10. Definitions. As used in this Act:
5093 17 "Barriers to employment" means conditions that impede an
5194 18 individuals ability to work in the construction industry,
5295 19 including (i) release from incarceration by the Department of
5396 20 Corrections or a county or local law enforcement authority;
5497 21 (ii) no high school diploma or equivalent; (iii) few
5598 22 marketable abilities or skills for employment; or (iv) no
5699 23 prior job-seeking skills.
57100 24 "Collective bargaining unit" means a labor organization
58101 25 that provides workers to a construction project.
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69112 1 "Commission" means the Commission on Equity and Inclusion.
70113 2 "Labor organization" has the meaning set forth in 29
71114 3 U.S.C. 152.
72115 4 "Project labor agreement" means an agreement that meets
73116 5 the contents of a construction agreement as provided in
74117 6 Section 25 of the Project Labor Agreements Act. "Project labor
75118 7 agreement" also includes any construction project that
76119 8 requires the use of a project labor agreement under State law.
77120 9 Section 15. Project labor agreement requirements. Any
78121 10 collective bargaining unit, contractor, or subcontractor
79122 11 participating in a project labor agreement shall satisfy the
80123 12 following requirements to promote racial inclusion, diversity,
81124 13 and equity:
82125 14 (1) employees performing work at the construction
83126 15 project subject to a project labor agreement shall have
84127 16 completed OSHA 101 safety training;
85128 17 (2) any collective bargaining unit, contractor, or
86129 18 subcontractor subject to the project labor agreement shall
87130 19 provide or participate in a program that provides
88131 20 pre-apprenticeship training programs exclusively for
89132 21 Illinois residents who are individuals with barriers to
90133 22 employment and that partners with an office of a local
91134 23 workforce investment area designated by the Department of
92135 24 Commerce and Economic Opportunity or a community-based
93136 25 organization;
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104147 1 (3) any collective bargaining unit participating in a
105148 2 project labor agreement shall, 180 days after the
106149 3 effective date of this Act, provide at least (i) 10% of the
107150 4 workers to the project who meet the definitions under
108151 5 Section 2 of the Business Enterprise for Minorities,
109152 6 Women, and Persons with Disabilities Act and Section 10 of
110153 7 the Veterans Preference in Private Employment Act or (ii)
111154 8 a percentage of workers to the project who reflect the
112155 9 demographic make-up of the county where the project is
113156 10 located;
114157 11 (4) any collective bargaining unit participating in a
115158 12 project labor agreement, on or after January 1, 2026,
116159 13 shall provide at least (i) 15% of the workers to the
117160 14 project who meet the definition under Section 2 of the
118161 15 Business Enterprise for Minorities, Women, and Persons
119162 16 with Disabilities Act and Section 10 of the Veterans
120163 17 Preference in Private Employment Act or (ii) a percentage
121164 18 of workers to the project who reflect the demographic
122165 19 make-up of the county where the project is located;
123166 20 (5) any contractor or subcontractor participating in a
124167 21 project labor agreement shall, 180 days after the
125168 22 effective date of this Act, employ at least (i) 10% of its
126169 23 workforce who meet the definition under Section 2 of the
127170 24 Business Enterprise for Minorities, Women, and Persons
128171 25 with Disabilities Act and Section 10 of the Veterans
129172 26 Preference in Private Employment Act or (ii) a percentage
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140183 1 of its employees who reflect the demographic make-up of
141184 2 the county where the project is located;
142185 3 (6) any contractor or subcontractor participating in a
143186 4 project labor agreement shall, on or after January 1,
144187 5 2026, employ at least (i) 15% of its employees who meet the
145188 6 definition under Section 2 of the Business Enterprise for
146189 7 Minorities, Women, and Persons with Disabilities and
147190 8 Section 10 of the Veterans Preference in Private
148191 9 Employment Act or (ii) a percentage of its employees who
149192 10 reflect the demographic make-up of the county where the
150193 11 project is located;
151194 12 (7) any collective bargaining unit subject to a
152195 13 project labor agreement shall provide to its members a
153196 14 health and benefit plan that is in compliance with the
154197 15 federal Employee Retirement Income Security Act of 1974
155198 16 and that is not listed on the U.S. Department of Labor's
156199 17 multiple employer pension plan list as critical and
157200 18 declining status, critical status, or endangered status;
158201 19 and
159202 20 (8) any contractor or subcontractor subject to a
160203 21 project labor agreement shall provide to its employees
161204 22 health insurance and a retirement plan that is in
162205 23 compliance with the federal Employee Retirement Income
163206 24 Security Act of 1974 and that is not listed on the U.S.
164207 25 Department of Labor's multiple employer pension plan list
165208 26 as critical and declining status, critical status, or
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176219 1 endangered status.
177220 2 Section 20. Prequalification.
178221 3 (a) Any collective bargaining unit, contractor, and
179222 4 subcontractor may prequalify with the Commission, indicating
180223 5 that the contractor or subcontractor meets all the
181224 6 requirements of Section 15. A prequalified collective
182225 7 bargaining unit, contractor, or subcontractor shall:
183226 8 (1) not be disbarred from public works projects;
184227 9 (2) be allowed to provide and hire its own workers for
185228 10 the project;
186229 11 (3) be allowed to fund its own health and welfare
187230 12 benefits of its employees and shall only be liable for any
188231 13 health and welfare benefits required by a collective
189232 14 bargaining unit for members of the collective bargaining
190233 15 unit used by the contractor or subcontractor under the
191234 16 project labor agreement; and
192235 17 (4) only be required to the terms of the project labor
193236 18 agreement during the project and not held signatory to a
194237 19 collective bargaining agreement once the contractor or
195238 20 subcontractor has completed its work on the project.
196239 21 (b) A collective bargaining unit, contractor, or
197240 22 subcontractor shall remain prequalified for a period of one
198241 23 year after the date of approval by the Commission.
199242 24 Section 25. Determination of demographic make-up. The
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210253 1 Commission shall determine for each county in this State the
211254 2 demographic make-up of each county by use the most recent
212255 3 federal census data. The Commission shall include in its
213256 4 determination (i) minority persons, as that term is defined in
214257 5 the Business Enterprise for Minorities, Women, and Persons
215258 6 with Disabilities Act, (ii) veterans, as that term is defined
216259 7 in the Veterans Preference in Private Employment Act, and
217260 8 (iii) persons who are located in rural or similarly situated
218261 9 geographic regions of this State. The Commission shall post on
219262 10 its website its determination of the demographic make-up of
220263 11 each county of this State.
221264 12 Section 30. Complaints.
222265 13 (a) A collective bargaining unit, contractor, or
223266 14 subcontractor who believes an entity subject to a project
224267 15 labor agreement does not satisfy the requirements of Section
225268 16 15 may file a complaint with the Commission.
226269 17 (b) The Commission shall administer and enforce the
227270 18 provisions of this Act. In order to accomplish the objectives
228271 19 of this Act and to carry out the duties prescribed by this Act,
229272 20 the Commission shall, within 180 days after the effective date
230273 21 of this Act, adopt rules necessary to administer and enforce
231274 22 the provisions of this Act, including the procedures that
232275 23 shall be followed for hearings on issues of compliance with
233276 24 this Act.
234277 25 (c) Any collective bargaining unit, contractor, or
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245288 1 subcontractor determined to not be in compliance with this Act
246289 2 shall be prohibited from participating in a project labor
247290 3 agreement until it shows by a preponderance of the evidence
248291 4 that it is in compliance with this Act.
249292 5 Section 35. Penalties.
250293 6 (a) A collective bargaining unit, contractor, or
251294 7 subcontractor determined to not be in compliance with
252295 8 paragraphs (3), (4), (5), or (6) of subsection (b) of Section
253296 9 15 shall pay to the Commission a civil penalty equal to the
254297 10 number of hours worked that failed to meet the employment
255298 11 guideline times the prevailing wage of the trade or trades.
256299 12 The Commission shall determine the penalty amount by utilizing
257300 13 the certified payroll filed with the Department of Labor for
258301 14 the project.
259-15 (b) A collective bargaining unit, contractor, or
302+15 (b) A collective bargaining unit, contractor or
260303 16 subcontractor determined not to be in compliance with
261304 17 paragraphs (3), (4), (5), or (6) of subsection (b) of Section
262305 18 15 shall pay to the Commission a civil penalty, not to exceed
263306 19 $5,000 for each violation for each employee affected.
264307 20 (c) Any funds collected by the Commission under this Act
265308 21 shall be deposited into the Local Construction Training and
266309 22 Development Fund.
267310 23 Section 40. The Local Construction Training and
268311 24 Development Fund. The Local Construction Training and
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279322 1 Development Fund is created as a special fund in the State
280323 2 treasury for the purpose of receiving moneys in accordance
281324 3 with subsection (c) of Section 35. Moneys in the fund shall be
282325 4 used by the Commission to:
283326 5 (1) implement and enforce this Act; and
284327 6 (2) award grants to local units of government to
285328 7 support:
286329 8 (A) local construction workforce training programs
287330 9 that are approved and registered by the U.S.
288331 10 Department of Labor or are recognized by the
289332 11 Department of Commerce and Economic Opportunity; and
290333 12 (B) construction projects aimed at repurposing,
291334 13 redeveloping, or revitalizing nonperforming or
292335 14 underutilized real estate assets for the purpose of
293336 15 creating affordable workforce housing.
294337 16 Section 45. Rulemaking. The Commission shall adopt any
295338 17 rules necessary for implementation and enforcement of this
296339 18 Act.
297340 19 Section 90. The State Finance Act is amended by adding
298341 20 Section 5.1030 as follows:
299342 21 (30 ILCS 105/5.1030 new)
300343 22 Sec. 5.1030. The Local Construction Training and
301344 23 Development Fund.
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312355 1 Section 95. The Project Labor Agreements Act is amended by
313356 2 changing Section 35 as follows:
314357 3 (30 ILCS 571/35)
315358 4 Sec. 35. Compliance. All State departments, agencies,
316359 5 authorities, boards, and instrumentalities shall ensure that
317360 6 all public works projects are implemented in a manner
318361 7 consistent with the terms of this Act and are in full
319362 8 compliance with all statutes, regulations, and Executive
320363 9 Orders, including the Best Interest of the State Act.
321364 10 (Source: P.A. 97-199, eff. 7-27-11.)
322365 11 Section 100. The Commission on Equity and Inclusion Act is
323366 12 amended by changing Section 40-10 as follows:
324367 13 (30 ILCS 574/40-10)
325368 14 (Text of Section before amendment by P.A. 103-961)
326369 15 Sec. 40-10. Powers and duties. In addition to the other
327370 16 powers and duties which may be prescribed in this Act or
328371 17 elsewhere, the Commission shall have the following powers and
329372 18 duties:
330373 19 (1) The Commission shall have a role in all State and
331374 20 university procurement by facilitating and streamlining
332375 21 communications between the Business Enterprise Council for
333376 22 Minorities, Women, and Persons with Disabilities, the
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344387 1 purchasing entities, the Chief Procurement Officers, and
345388 2 others.
346389 3 (2) The Commission may create a scoring evaluation for
347390 4 State agency directors, public university presidents and
348391 5 chancellors, and public community college presidents. The
349392 6 scoring shall be based on the following 3 principles: (i)
350393 7 increasing capacity; (ii) growing revenue; and (iii)
351394 8 enhancing credentials. These principles should be the
352395 9 foundation of the agency compliance plan required under
353396 10 Section 6 of the Business Enterprise for Minorities,
354397 11 Women, and Persons with Disabilities Act.
355398 12 (3) The Commission shall exercise the authority and
356399 13 duties provided to it under Section 5-7 of the Illinois
357400 14 Procurement Code.
358401 15 (4) The Commission, working with State agencies, shall
359402 16 provide support for diversity in State hiring.
360403 17 (5) The Commission shall supervise the implementation
361404 18 and effectiveness of supplier diversity training of the
362405 19 State procurement workforce.
363406 20 (6) Each January, and as otherwise frequently as may
364407 21 be deemed necessary and appropriate by the Commission, the
365408 22 Commission shall propose and submit to the Governor and
366409 23 the General Assembly legislative changes to increase
367410 24 inclusion and diversity in State government.
368411 25 (7) The Commission shall have oversight over the
369412 26 following entities:
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380423 1 (A) the Illinois African-American Family
381424 2 Commission;
382425 3 (B) the Illinois Latino Family Commission;
383426 4 (C) the Asian American Family Commission;
384427 5 (D) the Illinois Muslim American Advisory Council;
385428 6 (E) the Illinois African-American Fair Contracting
386429 7 Commission created under Executive Order 2018-07; and
387430 8 (F) the Business Enterprise Council for
388431 9 Minorities, Women, and Persons with Disabilities.
389432 10 (8) The Commission shall adopt any rules necessary for
390433 11 the implementation and administration of the requirements
391434 12 of this Act.
392435 13 (9) The Commission shall exercise the authority and
393436 14 duties provided to it under Section 45-57 of the Illinois
394437 15 Procurement Code.
395438 16 (10) The Commission is responsible for completing
396439 17 studies as required by Section 35-15 of the Illinois
397440 18 Community Reinvestment Act.
398441 19 (11) The Commission shall exercise the authority and
399442 20 duties provided to it under the Best Interest of the State
400443 21 Act.
401444 22 (Source: P.A. 102-29, eff. 6-25-21; 102-671, eff. 11-30-21;
402445 23 103-865, eff. 1-1-25; 103-959, eff. 1-1-25; revised 11-26-24.)
403446 24 (Text of Section after amendment by P.A. 103-961)
404447 25 Sec. 40-10. Powers and duties. In addition to the other
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415458 1 powers and duties which may be prescribed in this Act or
416459 2 elsewhere, the Commission shall have the following powers and
417460 3 duties:
418461 4 (1) The Commission shall have a role in all State and
419462 5 university procurement by facilitating and streamlining
420463 6 communications between the Business Enterprise Council for
421464 7 Minorities, Women, and Persons with Disabilities, the
422465 8 purchasing entities, the Chief Procurement Officers, and
423466 9 others.
424467 10 (2) The Commission may create a scoring evaluation for
425468 11 State agency directors, public university presidents and
426469 12 chancellors, and public community college presidents. The
427470 13 scoring shall be based on the following 3 principles: (i)
428471 14 increasing capacity; (ii) growing revenue; and (iii)
429472 15 enhancing credentials. These principles should be the
430473 16 foundation of the agency compliance plan required under
431474 17 Section 6 of the Business Enterprise for Minorities,
432475 18 Women, and Persons with Disabilities Act.
433476 19 (3) The Commission shall exercise the authority and
434477 20 duties provided to it under Section 5-7 of the Illinois
435478 21 Procurement Code.
436479 22 (4) The Commission, working with State agencies, shall
437480 23 provide support for diversity in State hiring.
438481 24 (5) The Commission shall supervise the implementation
439482 25 and effectiveness of supplier diversity training of the
440483 26 State procurement workforce.
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451494 1 (6) Each January, and as otherwise frequently as may
452495 2 be deemed necessary and appropriate by the Commission, the
453496 3 Commission shall propose and submit to the Governor and
454497 4 the General Assembly legislative changes to increase
455498 5 inclusion and diversity in State government.
456499 6 (7) The Commission shall have oversight over the
457500 7 following entities:
458501 8 (A) the Illinois African-American Family
459502 9 Commission;
460503 10 (B) the Illinois Latino Family Commission;
461504 11 (C) the Asian American Family Commission;
462505 12 (D) the Illinois Muslim American Advisory Council;
463506 13 (E) the Illinois African-American Fair Contracting
464507 14 Commission created under Executive Order 2018-07; and
465508 15 (F) the Business Enterprise Council for
466509 16 Minorities, Women, and Persons with Disabilities.
467510 17 (7.5) The Commission shall have oversight over the
468511 18 collection of supplier diversity reports by State agencies
469512 19 to the extent that those agencies are required to collect
470513 20 supplier diversity reports. This oversight shall include
471514 21 publishing, on the Commission's website, a copy of each
472515 22 such supplier diversity report submitted to a State agency
473516 23 and may include conducting an annual hearing with each
474517 24 State agency to discuss ongoing compliance with supplier
475518 25 diversity reporting requirements. The Commission is not
476519 26 responsible for ensuring compliance by the filers of
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487530 1 supplier diversity reports to their respective agencies.
488531 2 The agencies subject to oversight by the Commission and
489532 3 the relevant voluntary supplier diversity reports include
490533 4 the following:
491534 5 (A) the Health Facilities and Services Review
492535 6 Board for hospitals;
493536 7 (B) the Department of Commerce and Economic
494537 8 Opportunity for tax credit recipients under the
495538 9 Economic Development for a Growing Economy Tax Credit
496539 10 Act;
497540 11 (C) the Illinois Commerce Commission for utilities
498541 12 and railroads;
499542 13 (D) the Illinois Gaming Board for casinos; and
500543 14 (E) the Illinois Racing Board for race tracks.
501544 15 (7.6) The Commission may hold public workshops focused
502545 16 on specific industries and reports to collaboratively
503546 17 connect diverse enterprises with entities that manage
504547 18 supplier diversity programs. These workshops may be
505548 19 modeled after Illinois Commerce Commission hearings for
506549 20 utilities and railroads that include a collaborative
507550 21 discussion of filed supplier diversity reports.
508551 22 (8) The Commission shall adopt any rules necessary for
509552 23 the implementation and administration of the requirements
510553 24 of this Act.
511554 25 (9) The Commission shall exercise the authority and
512555 26 duties provided to it under Section 45-57 of the Illinois
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523566 1 Procurement Code.
524567 2 (10) The Commission is responsible for completing
525568 3 studies as required by Section 35-15 of the Illinois
526569 4 Community Reinvestment Act.
527570 5 (11) The Commission shall exercise the authority and
528571 6 duties provided to it under the Best Interest of the State
529572 7 Act.
530573 8 (Source: P.A. 102-29, eff. 6-25-21; 102-671, eff. 11-30-21;
531574 9 103-865, eff. 1-1-25; 103-959, eff. 1-1-25; 103-961, eff.
532575 10 7-1-25; revised 11-26-24.)
533576 11 Section 995. No acceleration or delay. Where this Act
534577 12 makes changes in a statute that is represented in this Act by
535578 13 text that is not yet or no longer in effect (for example, a
536579 14 Section represented by multiple versions), the use of that
537580 15 text does not accelerate or delay the taking effect of (i) the
538581 16 changes made by this Act or (ii) provisions derived from any
539582 17 other Public Act.
540583 18 Section 997. Severability. The provisions of this Act are
541584 19 severable under Section 1.31 of the Statute on Statutes.
542-20 Section 999. Effective date. This Act takes effect upon
543-21 becoming law.
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