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| | 101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020 SB3715 Introduced 2/14/2020, by Sen. Napoleon Harris, III SYNOPSIS AS INTRODUCED: |
| 30 ILCS 500/20-20 | | 30 ILCS 500/50-35 | | 30 ILCS 525/5 | from Ch. 85, par. 1605 | 30 ILCS 575/2 | | 30 ILCS 575/4 | from Ch. 127, par. 132.604 | 30 ILCS 575/5 | from Ch. 127, par. 132.605 |
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Amends the Illinois Procurement Code. Provides that for proposed purchasing activity under the specified small purchase threshold, there shall be no policy or rule infringing a State agency or public institution of higher education's ability to award directly, without competition, to a Business Enterprise Program certified business. Requires disclosure of financial interests for bids and offers with an annual value in excess of the small purchase threshold. Amends the Governmental Joint Purchasing Act. Provides that the Act does not apply to, among other entities, public institutions of higher education. Amends the Business Enterprise for Minorities, Women, and Persons with Disabilities Act. Modifies provisions concerning the award of State contracts. Expands the authority and responsibilities of the Business Enterprise Council. Removes the definition of "business" from the Act. Makes conforming changes.
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| | A BILL FOR |
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1 | | AN ACT concerning finance.
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2 | | Be it enacted by the People of the State of Illinois,
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3 | | represented in the General Assembly:
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4 | | Section 5. The Illinois Procurement Code is amended by |
5 | | changing Sections 20-20 and 50-35 as follows:
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6 | | (30 ILCS 500/20-20)
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7 | | Sec. 20-20. Small purchases.
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8 | | (a) Amount. Any individual procurement of supplies or
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9 | | services not exceeding $100,000 and any procurement of
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10 | | construction not exceeding
$100,000, or any individual |
11 | | procurement of professional or artistic services not exceeding |
12 | | $100,000 may be made without competitive source selection.
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13 | | Procurements shall not be artificially
divided so as to |
14 | | constitute a small purchase under this Section. Any procurement |
15 | | of construction not exceeding $100,000 may be made by an |
16 | | alternative competitive source selection. The construction |
17 | | agency shall establish rules for an alternative competitive |
18 | | source selection process. This Section does not apply to |
19 | | construction-related professional services contracts awarded |
20 | | in accordance with the provisions of the Architectural, |
21 | | Engineering, and Land Surveying Qualifications Based Selection |
22 | | Act.
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23 | | (b) Adjustment. Each July 1, the small purchase maximum
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1 | | established in subsection (a)
shall be adjusted for inflation |
2 | | as determined by the Consumer
Price Index for All Urban |
3 | | Consumers as determined by the United States
Department of |
4 | | Labor and rounded to the nearest $100.
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5 | | (c) Based upon rules proposed by the Board and rules |
6 | | promulgated by the
chief procurement officers, the small |
7 | | purchase maximum established in
subsection
(a) may be modified.
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8 | | (d) For proposed purchasing activity under the identified |
9 | | small purchase threshold established under subsection (a), |
10 | | there shall be no policy or rule infringing a State agency or |
11 | | public institution of higher education's ability to award |
12 | | directly, without competition, to a Business Enterprise |
13 | | Program certified business. |
14 | | (Source: P.A. 100-43, eff. 8-9-17.)
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15 | | (30 ILCS 500/50-35) |
16 | | Sec. 50-35. Financial disclosure and potential conflicts |
17 | | of interest. |
18 | | (a) All bids and offers from responsive bidders, offerors, |
19 | | vendors, or contractors with an annual value in excess of the |
20 | | identified small purchase threshold established under |
21 | | subsection (a) of Section 20-20 of
more than $50,000 , and all |
22 | | submissions to a vendor portal, shall be accompanied by |
23 | | disclosure of the financial
interests of the bidder, offeror, |
24 | | potential contractor, or contractor and each subcontractor to |
25 | | be used. In addition, all subcontracts identified as provided |
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1 | | by Section 20-120 of this Code with an annual value of
more |
2 | | than $50,000 shall be accompanied by disclosure of the |
3 | | financial
interests of each subcontractor. The financial |
4 | | disclosure of
each successful bidder, offeror, potential |
5 | | contractor, or contractor and its subcontractors shall be |
6 | | incorporated as a material term of the contract and shall |
7 | | become
part of the publicly available contract or procurement |
8 | | file
maintained by the appropriate chief procurement officer. |
9 | | Each disclosure under this Section shall be signed and made |
10 | | under penalty of perjury by an authorized officer or employee |
11 | | on behalf of the bidder, offeror, potential contractor, |
12 | | contractor, or subcontractor, and must be filed with the |
13 | | Procurement Policy Board. |
14 | | (b) Disclosure shall include any
ownership or distributive |
15 | | income share that is in excess of 5%, or an amount
greater than |
16 | | 60% of the annual salary of the Governor, of the disclosing |
17 | | entity
or its parent entity, whichever is less, unless the |
18 | | bidder, offeror, potential contractor, contractor, or |
19 | | subcontractor
(i) is a
publicly traded entity subject to |
20 | | Federal 10K reporting, in which case it may
submit its 10K
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21 | | disclosure in place of the prescribed disclosure, or (ii) is a |
22 | | privately held
entity that is exempt from Federal 10k reporting |
23 | | but has more than 100
shareholders, in which case it may submit |
24 | | the information that Federal 10k
reporting companies are |
25 | | required to report under 17 CFR 229.401 and list the
names of |
26 | | any person or entity holding any ownership share that is in |
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1 | | excess of
5% in place of the prescribed disclosure. The form of |
2 | | disclosure shall
be prescribed by the applicable chief |
3 | | procurement officer and must include at
least the names,
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4 | | addresses, and dollar or proportionate share of ownership of |
5 | | each person
identified in this Section, their instrument of |
6 | | ownership or beneficial
relationship, and notice of any |
7 | | potential conflict of interest resulting from
the current |
8 | | ownership or beneficial relationship of each individual |
9 | | identified in
this Section having in addition any of the |
10 | | following relationships: |
11 | | (1) State employment, currently or in the previous 3 |
12 | | years, including
contractual employment of services. |
13 | | (2) State employment of spouse, father, mother, son, or |
14 | | daughter,
including
contractual employment for services in |
15 | | the previous 2 years. |
16 | | (3) Elective status; the holding of elective office of |
17 | | the State of
Illinois, the government of the United States, |
18 | | any unit of local government
authorized by the Constitution |
19 | | of the State of Illinois or the statutes of the
State of |
20 | | Illinois currently or in the previous 3 years. |
21 | | (4) Relationship to anyone holding elective office |
22 | | currently or in the
previous 2 years; spouse, father, |
23 | | mother, son, or daughter. |
24 | | (5) Appointive office; the holding of any appointive |
25 | | government office of
the State of Illinois, the United |
26 | | States of America, or any unit of local
government |
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1 | | authorized by the Constitution of the State of Illinois or |
2 | | the
statutes of the State of Illinois, which office |
3 | | entitles the holder to
compensation in excess of expenses |
4 | | incurred in the discharge of that office
currently or in |
5 | | the previous 3 years. |
6 | | (6) Relationship to anyone holding appointive office |
7 | | currently or in the
previous 2 years; spouse, father, |
8 | | mother, son, or daughter. |
9 | | (7) Employment, currently or in the previous 3 years, |
10 | | as or by any
registered lobbyist of the State government. |
11 | | (8) Relationship to anyone who is or was a registered |
12 | | lobbyist in the
previous 2 years; spouse, father, mother, |
13 | | son, or daughter. |
14 | | (9) Compensated employment, currently or in the |
15 | | previous 3 years, by any
registered election or re-election |
16 | | committee registered with the Secretary of
State or any |
17 | | county clerk in the State of Illinois, or any political |
18 | | action
committee registered with either the Secretary of |
19 | | State or the Federal Board of
Elections. |
20 | | (10) Relationship to anyone; spouse, father, mother, |
21 | | son, or daughter; who
is or was a compensated employee in |
22 | | the last 2 years of any registered
election or re-election |
23 | | committee registered with the Secretary of State or any
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24 | | county clerk in the State of Illinois, or any political |
25 | | action committee
registered with either the Secretary of |
26 | | State or the Federal Board of
Elections. |
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1 | | (b-1) The disclosure required under this Section must also |
2 | | include the name and address of each lobbyist required to |
3 | | register under the Lobbyist Registration Act and other agent of |
4 | | the bidder, offeror, potential contractor, contractor, or |
5 | | subcontractor who is not identified under subsections (a) and |
6 | | (b) and who has communicated, is communicating, or may |
7 | | communicate with any State officer or employee concerning the |
8 | | bid or offer. The disclosure under this subsection is a |
9 | | continuing obligation and must be promptly supplemented for |
10 | | accuracy throughout the process and throughout the term of the |
11 | | contract if the bid or offer is successful. |
12 | | (b-2) The disclosure required under this Section must also |
13 | | include, for each of the persons identified in subsection (b) |
14 | | or (b-1), each of the following that occurred within the |
15 | | previous 10 years: suspension or debarment from contracting |
16 | | with any governmental entity; professional licensure |
17 | | discipline; bankruptcies; adverse civil judgments and |
18 | | administrative findings; and criminal felony convictions. The |
19 | | disclosure under this subsection is a continuing obligation and |
20 | | must be promptly supplemented for accuracy throughout the |
21 | | process and throughout the term of the contract if the bid or |
22 | | offer is successful. |
23 | | (c) The disclosure in subsection (b) is not intended to |
24 | | prohibit or prevent
any
contract. The disclosure is meant to |
25 | | fully and publicly disclose any potential
conflict to the chief |
26 | | procurement officers, State purchasing officers, their
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1 | | designees, and executive officers so they may adequately |
2 | | discharge their duty
to protect the State. |
3 | | (d) When a potential for a conflict of interest is |
4 | | identified, discovered, or reasonably suspected, the chief |
5 | | procurement officer or State procurement officer shall send the |
6 | | contract to the Procurement Policy Board. In accordance with |
7 | | the objectives of subsection (c), if the Procurement Policy |
8 | | Board finds evidence of a potential conflict of interest not |
9 | | originally disclosed by the bidder, offeror, potential |
10 | | contractor, contractor, or subcontractor, the Board shall |
11 | | provide written notice to the bidder, offeror, potential |
12 | | contractor, contractor, or subcontractor that is identified, |
13 | | discovered, or reasonably suspected of having a potential |
14 | | conflict of interest. The bidder, offeror, potential |
15 | | contractor, contractor, or subcontractor shall have 15 |
16 | | calendar days to respond in writing to the Board, and a hearing |
17 | | before the Board will be granted upon request by the bidder, |
18 | | offeror, potential contractor, contractor, or subcontractor, |
19 | | at a date and time to be determined by the Board, but which in |
20 | | no event shall occur later than 15 calendar days after the date |
21 | | of the request. Upon consideration, the Board shall recommend, |
22 | | in writing, whether to allow or void the contract, bid, offer, |
23 | | or subcontract weighing the best interest of the State of |
24 | | Illinois. All recommendations shall be submitted to the |
25 | | Executive Ethics Commission. The Executive Ethics Commission |
26 | | must hold a public hearing within 30 calendar days after |
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1 | | receiving the Board's recommendation if the Procurement Policy |
2 | | Board makes a recommendation to (i) void a contract or (ii) |
3 | | void a bid or offer and the chief procurement officer selected |
4 | | or intends to award the contract to the bidder, offeror, or |
5 | | potential contractor. A chief procurement officer is |
6 | | prohibited from awarding a contract before a hearing if the |
7 | | Board recommendation does not support a bid or offer. The |
8 | | recommendation and proceedings of any hearing, if applicable, |
9 | | shall be available to the public. |
10 | | (e) These thresholds and disclosure do not relieve the |
11 | | chief procurement
officer, the State purchasing officer, or
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12 | | their designees from reasonable care and diligence for any |
13 | | contract, bid,
offer, or submission to a vendor portal. The |
14 | | chief procurement officer, the State purchasing officer, or
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15 | | their designees shall be
responsible for using any reasonably |
16 | | known and publicly available information
to
discover any |
17 | | undisclosed potential conflict of interest and act to protect |
18 | | the
best interest of the State of Illinois. |
19 | | (f) Inadvertent or accidental failure to fully disclose |
20 | | shall render the
contract, bid, offer, proposal, subcontract, |
21 | | or relationship voidable by the chief procurement
officer if he |
22 | | or she deems it in
the best interest of the State of Illinois |
23 | | and, at his or her discretion, may
be cause for barring from |
24 | | future contracts, bids, offers, proposals, subcontracts, or
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25 | | relationships with the State for a period of up to 2 years. |
26 | | (g) Intentional, willful, or material failure to disclose |
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1 | | shall render the
contract, bid, offer, proposal, subcontract, |
2 | | or relationship voidable by the chief procurement
officer if he |
3 | | or she deems it in
the best interest of the State of Illinois |
4 | | and shall result in debarment from
future contracts, bids, |
5 | | offers, proposals, subcontracts, or relationships for a period |
6 | | of not less
than 2 years and not more than 10 years. |
7 | | Reinstatement after 2 years and
before 10 years must be |
8 | | reviewed and commented on in writing by the Governor
of the |
9 | | State of Illinois, or by an executive ethics board or |
10 | | commission he or
she
might designate. The comment shall be |
11 | | returned to the responsible chief
procurement officer who must
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12 | | rule in writing whether and when to reinstate. |
13 | | (h) In addition, all disclosures shall note any other |
14 | | current or pending
contracts, bids, offers, proposals, |
15 | | subcontracts, leases, or other ongoing procurement |
16 | | relationships the bidder, offeror, potential contractor, |
17 | | contractor, or subcontractor has with any other unit of State
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18 | | government and shall clearly identify the unit and the |
19 | | contract, offer, proposal,
lease, or other relationship. |
20 | | (i) The bidder, offeror, potential contractor, or |
21 | | contractor has a continuing obligation to supplement the |
22 | | disclosure required by this Section throughout the bidding |
23 | | process during the term of any contract, and during the vendor |
24 | | portal registration process. |
25 | | (Source: P.A. 97-490, eff. 8-22-11; 97-895, eff. 8-3-12; |
26 | | 98-1076, eff. 1-1-15 .) |
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1 | | Section 10. The Governmental Joint Purchasing Act is |
2 | | amended by changing Section 5 as follows:
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3 | | (30 ILCS 525/5) (from Ch. 85, par. 1605)
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4 | | Sec. 5.
The provisions of this Act shall not apply to |
5 | | public utility
services or public institutions of higher |
6 | | education as defined by the Illinois Procurement Code .
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7 | | (Source: Laws 1961, p. 3382.)
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8 | | Section 15. The Business Enterprise for Minorities, Women, |
9 | | and Persons with
Disabilities Act is amended by changing |
10 | | Sections 2, 4, and 5 as follows:
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11 | | (30 ILCS 575/2)
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12 | | (Section scheduled to be repealed on June 30, 2024) |
13 | | Sec. 2. Definitions.
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14 | | (A) For the purpose of this Act, the following
terms shall |
15 | | have the following definitions:
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16 | | (1) "Minority person" shall mean a person who is a |
17 | | citizen or lawful
permanent resident of the United States |
18 | | and who is any of the following:
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19 | | (a) American Indian or Alaska Native (a person |
20 | | having origins in any of the original peoples of North |
21 | | and South America, including Central America, and who |
22 | | maintains tribal affiliation or community attachment). |
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1 | | (b) Asian (a person having origins in any of the |
2 | | original peoples of the Far East, Southeast Asia, or |
3 | | the Indian subcontinent, including, but not limited |
4 | | to, Cambodia, China, India, Japan, Korea, Malaysia, |
5 | | Pakistan, the Philippine Islands, Thailand, and |
6 | | Vietnam). |
7 | | (c) Black or African American (a person having |
8 | | origins in any of the black racial groups of Africa). |
9 | | (d) Hispanic or Latino (a person of Cuban, Mexican, |
10 | | Puerto Rican, South or Central American, or other |
11 | | Spanish culture or origin, regardless of race). |
12 | | (e) Native Hawaiian or Other Pacific Islander (a |
13 | | person having origins in any of the original peoples of |
14 | | Hawaii, Guam, Samoa, or other Pacific Islands).
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15 | | (2) "Woman" shall mean a person who is a citizen or |
16 | | lawful permanent
resident of the United States and who is |
17 | | of the female gender.
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18 | | (2.05) "Person with a disability" means a person who is |
19 | | a citizen or
lawful resident of the United States and is a |
20 | | person qualifying as a person with a disability under |
21 | | subdivision (2.1) of this subsection (A).
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22 | | (2.1) "Person with a disability" means a person with a |
23 | | severe physical or mental disability that:
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24 | | (a) results from:
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25 | | amputation,
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26 | | arthritis,
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1 | | autism,
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2 | | blindness,
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3 | | burn injury,
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4 | | cancer,
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5 | | cerebral palsy,
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6 | | Crohn's disease, |
7 | | cystic fibrosis,
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8 | | deafness,
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9 | | head injury,
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10 | | heart disease,
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11 | | hemiplegia,
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12 | | hemophilia,
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13 | | respiratory or pulmonary dysfunction,
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14 | | an intellectual disability,
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15 | | mental illness,
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16 | | multiple sclerosis,
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17 | | muscular dystrophy,
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18 | | musculoskeletal disorders,
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19 | | neurological disorders, including stroke and |
20 | | epilepsy,
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21 | | paraplegia,
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22 | | quadriplegia and other spinal cord conditions,
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23 | | sickle cell anemia,
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24 | | ulcerative colitis, |
25 | | specific learning disabilities, or
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26 | | end stage renal failure disease; and
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1 | | (b) substantially limits one or more of the |
2 | | person's major life activities.
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3 | | Another disability or combination of disabilities may |
4 | | also be considered
as a severe disability for the purposes |
5 | | of item (a) of this
subdivision (2.1) if it is determined |
6 | | by an evaluation of
rehabilitation potential to
cause a |
7 | | comparable degree of substantial functional limitation |
8 | | similar to
the specific list of disabilities listed in item |
9 | | (a) of this
subdivision (2.1).
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10 | | (3) "Minority-owned business" means a business which |
11 | | is at least
51% owned by one or more minority persons, or |
12 | | in the case of a
corporation, at least 51% of the stock in |
13 | | which is owned by one or
more minority persons; and the |
14 | | management and daily business operations of
which are |
15 | | controlled by one or more of the minority individuals who |
16 | | own it.
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17 | | (4) "Women-owned business" means a business which is at |
18 | | least
51% owned by one or more women, or, in the case of a |
19 | | corporation, at
least 51% of the stock in which is owned by |
20 | | one or more women; and the
management and daily business |
21 | | operations of which are controlled by one or
more of the |
22 | | women who own it.
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23 | | (4.1) "Business owned by a person with a disability" |
24 | | means a business
that is at least 51% owned by one or more |
25 | | persons with a disability
and the management and daily |
26 | | business operations of which
are controlled by one or more |
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1 | | of the persons with disabilities who own it. A
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2 | | not-for-profit agency for persons with disabilities that |
3 | | is exempt from
taxation under Section 501 of the Internal |
4 | | Revenue Code of 1986 is also
considered a "business owned |
5 | | by a person with a disability".
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6 | | (4.2) "Council" means the Business Enterprise Council |
7 | | for Minorities, Women, and Persons with Disabilities |
8 | | created under Section 5 of this Act.
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9 | | (5) "State contracts" means all contracts entered into |
10 | | by the State, any agency or department thereof, or any |
11 | | public institution of higher education, including |
12 | | community college districts, regardless of the source of |
13 | | the funds with which the contracts are paid, which are not |
14 | | subject to federal reimbursement. "State contracts" does |
15 | | not include contracts awarded by a retirement system, |
16 | | pension fund, or investment board subject to Section |
17 | | 1-109.1 of the Illinois Pension Code. This definition shall |
18 | | control over any existing definition under this Act or |
19 | | applicable administrative rule.
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20 | | "State construction contracts" means all State |
21 | | contracts entered
into by a State agency or public |
22 | | institution of higher education for the repair, |
23 | | remodeling,
renovation or
construction of a building or |
24 | | structure, or for the construction or
maintenance of a |
25 | | highway defined in Article 2 of the Illinois Highway
Code.
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26 | | (6) "State agencies" shall mean all departments, |
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1 | | officers, boards,
commissions, institutions and bodies |
2 | | politic and corporate of the State,
but does not include |
3 | | the Board of Trustees of the University of Illinois,
the |
4 | | Board of Trustees of Southern Illinois University,
the |
5 | | Board of Trustees
of Chicago State University, the Board of |
6 | | Trustees of Eastern Illinois
University, the Board of |
7 | | Trustees of Governors State University, the Board of
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8 | | Trustees of Illinois State University, the Board of |
9 | | Trustees of Northeastern
Illinois
University, the Board of |
10 | | Trustees of Northern Illinois University, the Board of
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11 | | Trustees of Western Illinois University,
municipalities or |
12 | | other local governmental units, or other State |
13 | | constitutional
officers.
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14 | | (7) "Public institutions of higher education" means |
15 | | the University of Illinois, Southern Illinois University, |
16 | | Chicago State University, Eastern Illinois University, |
17 | | Governors State University, Illinois State University, |
18 | | Northeastern Illinois University, Northern Illinois |
19 | | University, Western Illinois University, the public |
20 | | community colleges of the State, and any other public |
21 | | universities, colleges, and community colleges now or |
22 | | hereafter established or authorized by the General |
23 | | Assembly.
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24 | | (8) "Certification" means a determination made by the |
25 | | Council
or by one delegated authority from the Council to |
26 | | make certifications, or by
a State agency with statutory |
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1 | | authority to make such a certification, that a
business |
2 | | entity is a business owned by a
minority, woman, or person |
3 | | with a disability for whatever
purpose. A business owned |
4 | | and controlled by women shall be certified as a |
5 | | "woman-owned business". A business owned and controlled by |
6 | | women who are also minorities shall be certified as both a |
7 | | "women-owned business" and a "minority-owned business".
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8 | | (9) "Control" means the exclusive or ultimate and sole |
9 | | control of the
business including, but not limited to, |
10 | | capital investment and all other
financial matters, |
11 | | property, acquisitions, contract negotiations, legal
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12 | | matters, officer-director-employee selection and |
13 | | comprehensive hiring,
operating responsibilities, |
14 | | cost-control matters, income and dividend
matters, |
15 | | financial transactions and rights of other shareholders or |
16 | | joint
partners. Control shall be real, substantial and |
17 | | continuing, not pro forma.
Control shall include the power |
18 | | to direct or cause the direction of the
management and |
19 | | policies of the business and to make the day-to-day as well
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20 | | as major decisions in matters of policy, management and |
21 | | operations.
Control shall be exemplified by possessing the |
22 | | requisite knowledge and
expertise to run the particular |
23 | | business and control shall not include
simple majority or |
24 | | absentee ownership.
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25 | | (10) "Business" means a business that has annual gross |
26 | | sales of less than $75,000,000 as evidenced by the federal |
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1 | | income tax return of the business. A firm with gross sales |
2 | | in excess of this cap may apply to the Council for |
3 | | certification for a particular contract if the firm can |
4 | | demonstrate that the contract would have significant |
5 | | impact on businesses owned by minorities, women, or persons |
6 | | with disabilities as suppliers or subcontractors or in |
7 | | employment of minorities, women, or persons with |
8 | | disabilities.
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9 | | (10) (11) "Utilization plan" means a form and |
10 | | additional documentations included in all bids or |
11 | | proposals that demonstrates a vendor's proposed |
12 | | utilization of vendors certified by the Business |
13 | | Enterprise Program to meet the targeted goal. The |
14 | | utilization plan shall demonstrate that the Vendor has |
15 | | either: (1) met the entire contract goal or (2) requested a |
16 | | full or partial waiver and made good faith efforts towards |
17 | | meeting the goal. |
18 | | (11) (12) "Business Enterprise Program" means the |
19 | | Business Enterprise Program of the Department of Central |
20 | | Management Services. |
21 | | (B) When a business is owned at least 51% by any |
22 | | combination of
minority persons, women, or persons with |
23 | | disabilities,
even though none of the 3 classes alone holds at |
24 | | least a 51% interest, the
ownership
requirement for purposes of |
25 | | this Act is considered to be met. The
certification category |
26 | | for the business is that of the class holding the
largest |
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1 | | ownership
interest in the business. If 2 or more classes have |
2 | | equal ownership interests,
the certification category shall be |
3 | | determined by
the business.
|
4 | | (Source: P.A. 100-391, eff. 8-25-17; 101-601, eff. 1-1-20.)
|
5 | | (30 ILCS 575/4) (from Ch. 127, par. 132.604)
|
6 | | (Section scheduled to be repealed on June 30, 2024)
|
7 | | Sec. 4. Award of State contracts.
|
8 | | (a) Except as provided in subsection (b), not less than 20% |
9 | | of
the total dollar amount of State contracts, as defined by |
10 | | the Secretary of
the Council and approved by the Council, shall |
11 | | be established as an aspirational goal to
be awarded to |
12 | | businesses owned by minorities,
women, and persons with |
13 | | disabilities; provided, however, that
of the total amount of |
14 | | all
State contracts awarded to businesses owned by
minorities, |
15 | | women, and persons with disabilities pursuant to
this Section, |
16 | | contracts representing at least 11% shall be awarded to |
17 | | businesses owned by minorities, contracts representing at |
18 | | least 7% shall be awarded to women-owned businesses, and |
19 | | contracts representing at least 2% shall be awarded to |
20 | | businesses owned by persons with disabilities.
|
21 | | The above percentage relates to the total dollar amount of |
22 | | State
contracts during each State fiscal year, calculated by |
23 | | examining
independently each type of contract for each agency |
24 | | or public institutions of higher education which
lets such |
25 | | contracts. Only that percentage of arrangements which |
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1 | | represents the participation of businesses owned by
|
2 | | minorities, women, and persons with disabilities on such |
3 | | contracts shall
be included. State contracts subject to the |
4 | | requirements of this Act shall include the requirement that |
5 | | only expenditures to businesses owned by minorities, women, and |
6 | | persons with disabilities that perform a commercially useful |
7 | | function may be counted toward the goals set forth by this Act. |
8 | | Contracts shall include a definition of "commercially useful |
9 | | function" that is consistent with 49 CFR 26.55(c).
|
10 | | (b) Not less
than 20% of the total dollar amount of State |
11 | | construction contracts is
established as an aspirational goal |
12 | | to be awarded to businesses owned by minorities, women, and |
13 | | persons with disabilities; provided that, contracts |
14 | | representing at least 11% of the total dollar amount of State |
15 | | construction contracts shall be awarded to businesses owned by |
16 | | minorities; contracts representing at least 7% of the total |
17 | | dollar amount of State construction contracts shall be awarded |
18 | | to women-owned businesses; and contracts representing at least |
19 | | 2% of the total dollar amount of State construction contracts |
20 | | shall be awarded to businesses owned by persons with |
21 | | disabilities.
|
22 | | (c) (Blank). |
23 | | (d) Within one year after April 28, 2009 (the effective |
24 | | date of Public Act 96-8), the Department of Central Management |
25 | | Services shall conduct a social scientific study that measures |
26 | | the impact of discrimination on minority and women business |
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1 | | development in Illinois. Within 18 months after April 28, 2009 |
2 | | (the effective date of Public Act 96-8), the Department shall |
3 | | issue a report of its findings and any recommendations on |
4 | | whether to adjust the goals for minority and women |
5 | | participation established in this Act. Copies of this report |
6 | | and the social scientific study shall be filed with the |
7 | | Governor and the General Assembly. |
8 | | By December 1, 2020, the Department of Central Management |
9 | | Services shall conduct a new social scientific study that |
10 | | measures the impact of discrimination on minority and women |
11 | | business development in Illinois. By June 1, 2022, the |
12 | | Department shall issue a report of its findings and any |
13 | | recommendations on whether to adjust the goals for minority and |
14 | | women participation established in this Act. Copies of this |
15 | | report and the social scientific study shall be filed with the |
16 | | Governor, the Advisory Board, and the General Assembly. By |
17 | | December 1, 2022, the Department of Central Management Services |
18 | | Business Enterprise Program shall develop a model for social |
19 | | scientific disparity study sourcing for local governmental |
20 | | units to adapt and implement to address regional disparities in |
21 | | public procurement. |
22 | | (e) (Blank). Except as permitted under this Act or as |
23 | | otherwise mandated by federal law or regulation, those who |
24 | | submit bids or proposals for State contracts subject to the |
25 | | provisions of this Act, whose bids or proposals are successful |
26 | | and include a utilization plan but that fail to meet the goals |
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1 | | set forth in subsection (b) of this Section, shall be notified |
2 | | of that deficiency and shall be afforded a period not to exceed |
3 | | 10 calendar days from the date of notification to cure that |
4 | | deficiency in the bid or proposal. The deficiency in the bid or |
5 | | proposal may only be cured by contracting with additional |
6 | | subcontractors who are owned by minorities or women. Any |
7 | | increase in cost to
a contract for the addition of a |
8 | | subcontractor to cure a bid's deficiency shall not affect the |
9 | | bid price,
shall not be used in the request for an exemption in |
10 | | this Act, and in no case shall an identified subcontractor with |
11 | | a certification made pursuant to this Act be terminated from |
12 | | the contract without the written consent of the State agency or |
13 | | public institution of higher education entering into the |
14 | | contract. |
15 | | (f) Non-construction solicitations that include Business |
16 | | Enterprise Program participation goals shall require bidders |
17 | | and offerors to include utilization plans. Utilization plans |
18 | | are due at the time of bid or offer submission. Failure to |
19 | | complete and include a utilization plan, including |
20 | | documentation demonstrating good faith effort when requesting |
21 | | a waiver, shall render the bid or offer non-responsive. |
22 | | Except as permitted under this Act or as otherwise mandated |
23 | | by federal regulation, those who submit bids or proposals for |
24 | | State contracts, whose bids or proposals are successful and |
25 | | include a completed utilization plan, but fail to meet the |
26 | | goals set forth in the solicitation, shall be notified of the |
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1 | | deficiency and shall be afforded a period not to exceed 10 |
2 | | calendar days from the date of notification to cure that |
3 | | deficiency in the bid or proposal. The deficiency in the bid or |
4 | | proposal may only be cured by contracting with additional |
5 | | subcontractor's owned by minorities or women subcontractors, |
6 | | or by increasing the work to be performed by previously |
7 | | identified vendors owned by minorities or women |
8 | | subcontractors. In no case shall an identified subcontractor |
9 | | with a certification made pursuant to this Act be terminated |
10 | | from the contract without written consent of the State agency |
11 | | or public institution of higher education entering in to the |
12 | | contract. |
13 | | (Source: P.A. 100-391, eff. 8-25-17; 101-170, eff. 1-1-20; |
14 | | 101-601, eff. 1-1-20.)
|
15 | | (30 ILCS 575/5) (from Ch. 127, par. 132.605)
|
16 | | (Section scheduled to be repealed on June 30, 2024)
|
17 | | Sec. 5. Business Enterprise Council.
|
18 | | (1) To help implement, monitor and enforce the goals of |
19 | | this Act, there
is created the Business Enterprise Council for
|
20 | | Minorities, Women, and Persons with Disabilities, hereinafter
|
21 | | referred to as the Council, composed of the Secretary of Human |
22 | | Services and
the Directors of the Department of
Human Rights, |
23 | | the Department of Commerce and Economic Opportunity, the
|
24 | | Department of Central Management Services, the Department of |
25 | | Transportation and
the
Capital Development Board, or their duly |
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1 | | appointed representatives, with the Comptroller, or his or her |
2 | | designee, serving as an advisory member of the Council. Ten
|
3 | | individuals representing businesses that are minority-owned or |
4 | | women-owned or
owned by persons with disabilities, 2 |
5 | | individuals representing the business
community, and a |
6 | | representative of public institutions of higher education |
7 | | shall be appointed by the Governor. These members shall serve |
8 | | 2-year 2
year terms and shall be eligible for reappointment. |
9 | | Any vacancy occurring on
the Council shall also be filled by |
10 | | the Governor. Any member appointed to fill
a vacancy occurring |
11 | | prior to the expiration of the term for which his
predecessor |
12 | | was appointed shall be appointed for the remainder of such |
13 | | term.
Members of the Council shall serve without compensation |
14 | | but shall be reimbursed
for any ordinary and necessary expenses |
15 | | incurred in the performance of their
duties.
|
16 | | The Director of the Department of Central Management |
17 | | Services shall serve
as the Council chairperson and shall |
18 | | select, subject to approval of the
council, a Secretary |
19 | | responsible for the operation of the program who shall
serve as |
20 | | the Division Manager of the Business
Enterprise for Minorities, |
21 | | Women, and Persons with Disabilities Division
of the Department |
22 | | of Central Management Services.
|
23 | | The Director of each State agency and the chief executive |
24 | | officer of
each public institutions of higher education shall |
25 | | appoint a liaison to the Council. The liaison
shall be |
26 | | responsible for submitting to the Council any reports and
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1 | | documents necessary under this Act.
|
2 | | (2) The Council's authority and responsibility shall be to:
|
3 | | (a) Devise a certification procedure to assure that |
4 | | businesses taking
advantage of this Act are legitimately |
5 | | classified as businesses owned by minorities, women, or |
6 | | persons with
disabilities and a registration procedure to |
7 | | recognize, without additional evidence of Business |
8 | | Enterprise Program eligibility, the certification of |
9 | | businesses owned by minorities, women, or persons with |
10 | | disabilities certified by the City of Chicago, Cook County, |
11 | | or other jurisdictional programs with requirements and |
12 | | procedures equaling or exceeding those in this Act.
|
13 | | (b) Maintain a list of all
businesses legitimately |
14 | | classified as businesses owned by minorities, women, or |
15 | | persons with disabilities to provide to State agencies and |
16 | | public institutions of higher education.
|
17 | | (c) Review rules and regulations for the |
18 | | implementation of the program for businesses owned by |
19 | | minorities, women,
and persons with disabilities.
|
20 | | (d) Review compliance plans submitted by each State |
21 | | agency and public institutions of higher education
|
22 | | pursuant to this Act.
|
23 | | (e) Make annual reports as provided in Section 8f to |
24 | | the Governor and
the General Assembly on the
status of the |
25 | | program.
|
26 | | (f) Serve as a central clearinghouse for information on |
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1 | | State
contracts, including the maintenance of a list of all |
2 | | pending State
contracts upon which businesses owned by |
3 | | minorities, women, and persons with disabilities may bid.
|
4 | | At the Council's discretion, maintenance of the list may |
5 | | include 24-hour
electronic access to the list along with |
6 | | the bid and application information.
|
7 | | (g) Establish a toll free telephone number to |
8 | | facilitate information
requests concerning the |
9 | | certification process and pending contracts.
|
10 | | (h) Adopt a procedure to grant automatic certification |
11 | | to businesses holding a certification from at least one of |
12 | | the following entities: (i) the Illinois Unified |
13 | | Certification Program; (ii) the Women's Business |
14 | | Development Center in Chicago; (iii) the Chicago Minority |
15 | | Supplier Development Council; or (iv) any other similar |
16 | | entity offering such certification to businesses. |
17 | | (i) Develop and maintain a repository for |
18 | | non-certified vendors that: (i) have applied for |
19 | | certification and have been denied; (ii) have started, but |
20 | | not completed, the certification process; (iii) have |
21 | | achieved certification, but did not seek renewal; or (iv) |
22 | | are known businesses owned by minorities, women, or persons |
23 | | with disabilities. |
24 | | (3) No premium bond rate of a surety company for a bond |
25 | | required of a business owned by a minority, woman, or person
|
26 | | with a disability bidding for a State contract shall be
higher |
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1 | | than the lowest rate charged by that surety company for a |
2 | | similar
bond in the same classification of work that would be |
3 | | written for a business not owned by a minority, woman, or |
4 | | person with a disability.
|
5 | | (4) Any Council member who has direct financial or personal |
6 | | interest in
any measure pending before the Council shall |
7 | | disclose this fact to the
Council and refrain from |
8 | | participating in the determination upon such measure.
|
9 | | (5) The Secretary shall have the following duties and |
10 | | responsibilities:
|
11 | | (a) To be responsible for the day-to-day operation of |
12 | | the Council.
|
13 | | (b) To serve as a coordinator for all of the State's |
14 | | programs for businesses owned by minorities, women,
and |
15 | | persons with disabilities and as the information and |
16 | | referral center
for all State initiatives for businesses
|
17 | | owned by minorities, women, and persons with disabilities.
|
18 | | (c) To establish an enforcement procedure whereby the |
19 | | Council may
recommend to the appropriate State legal |
20 | | officer that the State exercise
its legal remedies which |
21 | | shall include (1) termination of the contract
involved, (2) |
22 | | prohibition of participation by the respondent in public
|
23 | | contracts for a period not to exceed 3 years, (3) |
24 | | imposition of a penalty
not to exceed any profit acquired |
25 | | as a result of violation, or (4) any
combination thereof. |
26 | | Such procedures shall require prior approval by Council. |
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1 | | All funds collected as penalties under this subsection |
2 | | shall be used exclusively for maintenance and further |
3 | | development of the Business Enterprise Program and |
4 | | encouragement of participation in State procurement by |
5 | | minorities, women, and persons with disabilities.
|
6 | | (d) To devise appropriate policies, regulations and |
7 | | procedures for
including participation by businesses owned
|
8 | | by minorities, women, and persons with disabilities as |
9 | | prime contractors
including, but not limited to, (i) |
10 | | encouraging the inclusions of qualified businesses owned |
11 | | by minorities, women, and
persons with disabilities on |
12 | | solicitation lists, (ii)
investigating the potential of |
13 | | blanket bonding programs for small
construction jobs, |
14 | | (iii) investigating and making recommendations
concerning |
15 | | the use of the sheltered market process.
|
16 | | (e) To devise procedures for the waiver of the |
17 | | participation goals in
appropriate circumstances.
|
18 | | (f) To accept donations and, with the approval of the |
19 | | Council or the
Director of Central Management Services, |
20 | | grants related to the purposes of
this Act; to conduct |
21 | | seminars related to the purpose of this Act and to
charge |
22 | | reasonable registration fees; and to sell directories, |
23 | | vendor lists
and other such information to interested |
24 | | parties, except that forms
necessary to become eligible for |
25 | | the program shall be provided free of
charge to a business |
26 | | or individual applying for the program.
|