HB3880 100TH GENERAL ASSEMBLY

LRB100 10949 MLM 21186 b

100TH GENERAL ASSEMBLY
State of Illinois
2017 and 2018
HB3880

Introduced , by Rep. Juliana Stratton

SYNOPSIS AS INTRODUCED:

30 ILCS 500/45-85 new

Amends the Illinois Procurement Code. Creates a small and mid-sized business enterprise initiative program. Provides that the program shall apply to construction contracts and contracts for goods and services by the Department of Transportation and Capital Development Board. Establishes a race and gender-neutral program to increase small and mid-sized business participation in those contracts. Allows the applicable chief procurement officer to set aside certain contracts for exclusive participation of small and mid-sized businesses. Sets forth reporting requirements and penalties for violations of the provisions. Allows the Department of Central Management Services to adopt rules to implement the program. Includes severability provisions.

A BILL FOR

AN ACT concerning finance.

Be it enacted by the People of the State of Illinois, represented in the General Assembly:

Section 5. The Illinois Procurement Code is amended by adding Section 45-85 as follows:

(30 ILCS 500/45-85 new)

Sec. 45-85. Small and mid-sized business enterprise initiative program.

(a) As used in this Section,

"Construction contract" means a contract, purchase order, or agreement (other than a lease of real property) for the construction, repair, or improvement of any building, bridge, roadway, sidewalk, alley, railroad, or other structure or infrastructure, awarded by State agency, and whose cost is to be paid from funds belonging to the State.

"Department" means Department of Central Management Services.

"Local business enterprise" means a business entity located within the State, which has the majority of its regular, full time work force located within the State.

"Program" means the Small and Mid-sized Business Initiative program established under this Section.

"Small and mid-sized business" means a local business enterprise that has gross receipts, averaged over its previous 5 fiscal years, or number of employees, per pay period averaged over the past 12 months, that do not exceed 1.5 times the size standards set forth in 13 CFR Part 121.

(b) This Section shall apply to construction contracts and contracts for goods and services by the Department of Transportation and the Capital Development Board. This Section supersedes any inconsistent provision of any law or regulation of the State of Illinois to the extent such inconsistency is necessary. This Section shall not apply to any contract to the extent that it is inconsistent with procedures or standards required by any law or regulation of the United States or the State of Illinois to the extent the inconsistency is not permitted. In connection with any contract funded in whole or in part from State or federal sources, State or federal standards and regulations shall control to the extent this Section is inconsistent with such federal or State standards.

(c) Unless otherwise prohibited by any federal, State, or local law, the applicable chief procurement officer shall establish a race and gender-neutral program to increase small and mid-sized business participation in construction and other goods and services contracts. The applicable chief procurement officer is authorized to identify and offer construction contract projects for exclusive participation of small and mid-sized businesses. The estimated costs of such projects shall not be less than $3,000,000 nor more than $10,000,000.

(d) To be eligible for the program, a business enterprise must:

(1) be a small or mid-sized local business enterprise;

(2) be in business for at least 2 years at the time the business enterprise claims to be eligible for the program;

(3) perform more than 50% of the work on the construction project with its own work force or subcontractors that are small or mid-sized local business enterprises; and

(4) be independent, and must not be an affiliate or subsidiary of any other business enterprise. For purposes of this subsection (d), the applicable chief procurement officer shall have the sole authority to determine the independence of a business enterprise.

(e) Minority owned business enterprises and women owned business enterprises, as defined in the Business Enterprise for Minorities, Females, and Persons with Disabilities Act, shall be presumed to be small or mid-sized business enterprises under this Section.

(f) Except as otherwise provided in subsection (e) of this Section, any business enterprise that claims to be a small or mid-sized business enterprise shall at the time of the claim, and annually thereafter, submit an affidavit, in a form prescribed by the chief procurement officer, attesting that it meets the small or mid-sized business enterprise eligibility requirements in this Section. The applicable chief procurement officer is authorized to investigate the accuracy of the information provided in, and require documents and information in support of, the affidavits.

(g) Small or mid-sized businesses and business enterprises presumed to be small or mid-sized businesses shall notify the Department of any change that affects the enterprises' small or mid-sized business enterprise status within 5 business days of the occurrence of the change.

(h) The applicable chief procurement officer is authorized to impose reasonable reporting requirements on participants in the program. The reporting requirements shall be designed and used to evaluate the effectiveness of the program. Any program participant shall comply with the reporting requirements as required by the applicable chief procurement officer.

(i) If the applicable chief procurement officer determines, after notice and a hearing before the chief procurement officer, that any small or mid-sized business enterprise has made fraudulent misrepresentations to the State regarding its small or mid-sized business enterprise status, or has colluded with another making such fraudulent misrepresentations, the small or mid-sized business enterprise shall be declared ineligible to contract or subcontract on additional contracts. Upon making a finding of ineligibility, the applicable chief procurement officer shall determine the period of ineligibility imposed, which may include permanent or indefinite ineligibility, or ineligibility for a lesser duration. No small or mid-sized business enterprise shall be disqualified for collusive misrepresentations unless all parties with which the small or mid-sized business enterprise was found to have colluded with are also disqualified. The State shall regard as nonresponsive any bid submitted during such period of ineligibility which includes a disqualified entity as a contractor, subcontractor, or member of a joint venture. In the event that a contractor submitting a bid is determined by the Department not to have been involved in any misrepresentation of the status of a disqualified subcontractor included in the bid, the Department may allow the contractor to discharge the disqualified subcontractor and, if possible, identify and engage a qualified subcontractor as its replacement for inclusion in the bid. The consequences provided herein shall be in addition to any other criminal or civil liability to which such entities may be subject. The Department shall inform the appropriate state's attorney of instances of fraudulent misrepresentation and collusion.

(j) In addition to any other penalty imposed by law, any person who knowingly obtains, or knowingly assists another in obtaining, a contract with the State by falsely representing that the entity, or the entity assisted, is a small or mid-sized business enterprise is guilty of a Class C misdemeanor.

(k) Except as otherwise provided in subsections (i) and (j) of this Section, any person who violates this Section shall be fined not less than $1,000 nor more than $5,000 for each offense.

(l) The Department is authorized to adopt rules for the proper administration and enforcement of this Section.

Section 97. Severability. The provisions of this Act are severable under Section 1.31 of the Statute on Statutes.