Bill Text: IL HB5421 | 2013-2014 | 98th General Assembly | Introduced

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Bill Title: Amends the Illinois Insurance Code to create the Diversity Reporting Article within the Code. Sets forth legislative findings and definitions. Provides that all companies that collect premiums greater than $1,000,000 shall submit a report to the Director of Insurance concerning its procurement efforts regarding enterprises owned by minorities, women, qualified service-disabled veterans, and persons with disabilities. Provides that an entity that does not enter into contracts to procure goods or services in this State satisfies the reporting requirements by filing a statement with the Director attesting that it does not enter into procurement contracts in Illinois. Sets forth provisions concerning filing, penalties, and reporting updates and public availability.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Failed) 2014-12-03 - Session Sine Die [HB5421 Detail]

Download: Illinois-2013-HB5421-Introduced.html

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98TH GENERAL ASSEMBLY State of Illinois 2013 and 2014 HB5421 Introduced , by Rep. Monique D. Davis SYNOPSIS AS INTRODUCED:
215 ILCS 5/Art. XLVI heading new
215 ILCS 5/1700 new
215 ILCS 5/1705 new
215 ILCS 5/1710 new
215 ILCS 5/1715 new
215 ILCS 5/1720 new
215 ILCS 5/1725 new
Amends the Illinois Insurance Code to create the Diversity Reporting Article within the Code. Sets forth legislative findings and definitions. Provides that all companies that collect premiums greater than $1,000,000 shall submit a report to the Director of Insurance concerning its procurement efforts regarding enterprises owned by minorities, women, qualified service-disabled veterans, and persons with disabilities. Provides that an entity that does not enter into contracts to procure goods or services in this State satisfies the reporting requirements by filing a statement with the Director attesting that it does not enter into procurement contracts in Illinois. Sets forth provisions concerning filing, penalties, and reporting updates and public availability.
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FISCAL NOTE ACT MAY APPLY
A BILL FOR
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AN ACT concerning regulation.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Illinois Insurance Code is amended by adding
Art. XLVI as follows:
(215 ILCS 5/Art. XLVI heading new)
ARTICLE XLVI. DIVERSITY REPORTING
(215 ILCS 5/1700 new)
Sec. 1700. Legislative findings. The General Assembly
finds that enterprises owned by minorities, women, qualified
service-disabled veterans, and persons with disabilities are
under-utilized in the sale of goods and services used in the
insurance industry, and accordingly deems it a prudent business
practice and in the interests of the people of the State of
Illinois to develop and promote economic opportunities for
enterprises owned by minorities, women, qualified
service-disabled veterans, and persons with disabilities in
the insurance industry whenever possible.
The General Assembly further declares that it is the public
policy of this State to promote and encourage the continuous
economic development of businesses owned by minorities, women,
qualified service-disabled veterans, and persons with

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disabilities by providing that each major insurer submit to the
Director of Insurance a report explaining the reporting
entity's supplier diversity statement and expressing its goals
regarding enterprises. The Director shall publish the reports
on the Department of Insurance's Internet website, so that
those reports will help facilitate these supplier
relationships.
(215 ILCS 5/1705 new)
Sec. 1705. Definitions. In this Article:
"Department" means the Department of Insurance.
"Director" means the Director of Insurance.
"Enterprise" means a minority owned business, a business
owned by a person with a disability, or a female owned
business, as those terms are defined in the Business Enterprise
for Minorities, Females, and Persons with Disabilities Act, or
a business owned by a qualified service-disabled veteran that
has been certified by the Department of Veterans' Affairs and
the Department of Central Management Services pursuant to
Section 45-57 of the Illinois Procurement Code.
"Reporting entity" means all companies licensed by the
Department of Insurance.
(215 ILCS 5/1710 new)
Sec. 1710. Applicability. All companies that collect
premiums greater than $1,000,000 shall submit a report to the

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Director concerning its procurement efforts regarding
enterprises owned by minorities, women, qualified
service-disabled veterans, and persons with disabilities
during the reporting period set forth in Sections 1720 and 1725
of this Code.
(215 ILCS 5/1715 new)
Sec. 1715. Filing.
(a) Each reporting entity shall file a report in accordance
with this Article concerning its procurement involving
enterprises owned by minorities, women, qualified
service-disabled veterans, and persons with disabilities.
(b) The contents of the report shall include, but not be
limited to, all of the following:
(1) The reporting entity's supplier diversity policy
statement.
(2) The reporting entity's outreach and communications
to enterprises, including the following:
(A) The means by which the reporting entity
encourages and seeks out enterprises to become
potential suppliers.
(B) The means by which the reporting entity
encourages its employees involved in procurement to
seek enterprises to become potential suppliers.
(C) The means by which the reporting entity
conducts outreach and communication to enterprises.

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(D) The means by which the reporting entity
supports organizations that promote or certify
enterprises.
(E) Information regarding appropriate contacts at
the reporting entity for interested enterprises.
(3) Information about which procurements are made from
enterprises with at least a majority of the enterprise's
workforce in Illinois, with each category aggregated
separately, to the extent that information is readily
accessible.
A reporting entity may include other relevant information
in the report.
(c) A reporting entity that does not enter into contracts
to procure goods or services in this State satisfies the
requirements of this Section by filing a statement with the
Director attesting that it does not enter into procurement
contracts in Illinois.
(d) Nothing in this Section shall be construed to require
quotas, set-asides, or preferences in a reporting entity's
procurement of goods or services, nor does this Section apply
to insurer producer or licensee contracts. Reporting entities
retain the authority to use business judgment to select the
supplier for a particular contract.
(e) Nothing in this Section shall preclude a reporting
entity that is a member of an insurance holding company system,
as defined in Section 131.1 of this Code, from complying with

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this Section through a single filing on behalf of the entire
group of affiliated companies.
(215 ILCS 5/1720 new)
Sec. 1720. Penalties. Failure to file the report required
by Section 1715 of this Code by July 1, 2015 may subject the
reporting entity to a civil penalty to be determined by the
Director, not to exceed $5,000, or, if the act or practice was
willful, a civil penalty not to exceed $10,000. A reporting
entity may request, and the Director may grant, a 30-day
extension to file the report if needed due to unintended or
unforeseen delays. The Director may adopt rules as may be
necessary or appropriate for the administration and
enforcement of this Article.
(215 ILCS 5/1725 new)
Sec. 1725. Updates and public availability.
(a) Not later than July 1, 2017, each reporting entity
shall update its report and submit the new report to the
Director once every 2 years.
(b) By July 31, 2015, the Director shall establish and
maintain a link on the Department's Internet website that
provides public access to the contents of each reporting
entities' report on enterprise procurement efforts. The
Director shall include a statement on the Department's Internet
website indicating that the information contained in the

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reporting entities' report on enterprise procurement efforts
is provided for informational purposes only.