HB 3394

Abstract

Amends the Business Corporation Act of 1983. Provides that, no later than the close of the 2020 calendar year, a publicly held domestic or foreign corporation whose principal executive offices, according to the corporation's SEC 10-K form, are located in Illinois shall have a minimum of one female director and one African American director on its board of directors. Provides that the Secretary of State shall publish a report on its website documenting the number of corporations that have at least one female director and one African American director, the number of corporations that were in compliance at one point during the preceding calendar year, the number of corporations that moved to Illinois during the preceding calendar year, and the number of corporations that were previously subject to the requirements during the preceding year but are no longer publicly traded. Provides penalties for violations. House Committee Amendment No. 1 Removes language permitting the Secretary of State to impose penalties against himself or herself for failing to comply with specified reporting requirements. Senate Floor Amendment No. 3 Deletes reference to: 805 ILCS 5/8.10.1 new Adds reference to: 805 ILCS 5/8.12 new 805 ILCS 5/14.05 from Ch. 32, par. 14.05 Replaces everything after the enacting clause. Amends the Business Corporation Act of 1983. Provides that corporations shall report to the Secretary of State: (1) whether the corporation is a publicly held domestic or foreign corporation with its principal executive office located in Illinois; (2) data on specific qualifications, skills, and experience that the corporation considers for its board of directors, nominees for the board of directors, and executive officers; (3) whether each member of the corporation's board of directors self-identifies as a minority person and, if so, which race or ethnicity to which the member belongs; and (4) other information. Requires the Secretary to State to make the information public. Requires the University of Illinois System to review the reported information and publish on its website a report that provides aggregate data on the demographic characteristics of the boards of directors and executive officers of corporations filing an annual report for the preceding year along with an individualized rating for each corporation. Requires the establishment of a rating system assessing the representation of women and minorities on corporate boards. Provides that the report shall also identify strategies for promoting diversity and inclusion among boards of directors and corporate executive officers. Effective immediately.