Rep. William "Will" Davis

Filed: 3/3/2023

 

 


 

 


 
10300HB1409ham001LRB103 25706 DTM 58336 a

1
AMENDMENT TO HOUSE BILL 1409

2    AMENDMENT NO. ______. Amend House Bill 1409 by replacing
3everything after the enacting clause with the following:
 
4    "Section 5. The Business Enterprise for Minorities, Women,
5and Persons with Disabilities Act is amended by changing
6Sections 4 and 4f as follows:
 
7    (30 ILCS 575/4)  (from Ch. 127, par. 132.604)
8    (Section scheduled to be repealed on June 30, 2024)
9    Sec. 4. Award of State contracts.
10    (a) Except as provided in subsection (b), not less than
1130% of the total dollar amount of State contracts, as defined
12by the Secretary of the Council and approved by the Council,
13shall be established as an aspirational goal to be awarded to
14businesses owned by minorities, women, and persons with
15disabilities; provided, however, that of the total amount of
16all State contracts awarded to businesses owned by minorities,

 

 

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1women, and persons with disabilities pursuant to this Section,
2contracts representing at least 16% shall be awarded to
3businesses owned by minorities, contracts representing at
4least 10% shall be awarded to women-owned businesses, and
5contracts representing at least 4% shall be awarded to
6businesses owned by persons with disabilities.
7    (a-5) In addition to the aspirational goals in awarding
8State contracts set under subsection (a), the Commission shall
9by rule further establish targeted efforts to encourage the
10participation of businesses owned by minorities, women, and
11persons with disabilities on State contracts. Such efforts
12shall include, but not be limited to, further concerted
13outreach efforts to businesses owned by minorities, women, and
14persons with disabilities.
15    The above percentage relates to the total dollar amount of
16State contracts during each State fiscal year, calculated by
17examining independently each type of contract for each agency
18or public institutions of higher education which lets such
19contracts. Only that percentage of arrangements which
20represents the participation of businesses owned by
21minorities, women, and persons with disabilities on such
22contracts shall be included. State contracts subject to the
23requirements of this Act shall include the requirement that
24only expenditures to businesses owned by minorities, women,
25and persons with disabilities that perform a commercially
26useful function may be counted toward the goals set forth by

 

 

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1this Act. Contracts shall include a definition of
2"commercially useful function" that is consistent with 49 CFR
326.55(c).
4    (b) Not less than 20% of the total dollar amount of State
5construction contracts is established as an aspirational goal
6to be awarded to businesses owned by minorities, women, and
7persons with disabilities; provided that, contracts
8representing at least 11% of the total dollar amount of State
9construction contracts shall be awarded to businesses owned by
10minorities; contracts representing at least 7% of the total
11dollar amount of State construction contracts shall be awarded
12to women-owned businesses; and contracts representing at least
132% of the total dollar amount of State construction contracts
14shall be awarded to businesses owned by persons with
15disabilities.
16    (c) (Blank).
17    (c-5) All goals established under this Section shall be
18contingent upon the results of the most recent disparity study
19conducted by the State.
20    (d) Within one year after April 28, 2009 (the effective
21date of Public Act 96-8), the Department of Central Management
22Services shall conduct a social scientific study that measures
23the impact of discrimination on minority and women business
24development in Illinois. Within 18 months after April 28, 2009
25(the effective date of Public Act 96-8), the Department shall
26issue a report of its findings and any recommendations on

 

 

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1whether to adjust the goals for minority and women
2participation established in this Act. Copies of this report
3and the social scientific study shall be filed with the
4Governor and the General Assembly.
5    By December 1, 2020, the Department of Central Management
6Services shall conduct a new social scientific study that
7measures the impact of discrimination on minority and women
8business development in Illinois. By June 1, 2022, the
9Department shall issue a report of its findings and any
10recommendations on whether to adjust the goals for minority
11and women participation established in this Act. Copies of
12this report and the social scientific study shall be filed
13with the Governor and the General Assembly. By December 1,
142022, the Commission on Equity and Inclusion Business
15Enterprise Program shall develop a model for social scientific
16disparity study sourcing for local governmental units to adapt
17and implement to address regional disparities in public
18procurement.
19    (e) All State contract solicitations that include Business
20Enterprise Program participation goals shall require bidders
21or offerors to include utilization plans. Utilization plans
22are due at the time of bid or offer submission. Failure to
23complete and include a utilization plan, including
24documentation demonstrating good faith efforts when requesting
25a waiver, shall render the bid or offer non-responsive.
26    Except as permitted under this Act or as otherwise

 

 

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1mandated by federal regulation, a bidder or offeror whose bid
2or offer is accepted and who included in that bid a completed
3utilization plan but who fails to meet the goals set forth in
4the plan shall be notified of the deficiency by the
5contracting agency or public institution of higher education
6and shall be given a period of 10 calendar days to cure the
7deficiency by contracting with additional subcontractors who
8are certified by the Business Enterprise Program or by
9increasing the work to be performed by previously identified
10vendors certified by the Business Enterprise Program.
11    Deficiencies that may be cured include: (i) scrivener's
12errors, such as transposed numbers; (ii) information submitted
13in an incorrect form or format; (iii) mistakes resulting from
14failure to follow instructions or to identify and adequately
15document good faith efforts taken to comply with the
16utilization plan; or (iv) a proposal to use a firm whose
17Business Enterprise Program certification has lapsed or is not
18yet recognized. Cure is not authorized if the bidder or
19offeror submits a blank utilization plan, a utilization plan
20that shows lack of reasonable effort to complete the form on
21time, or a utilization plan that states the contract will be
22self-performed, by a non-certified vendor, without showing
23good faith efforts or a request for a waiver. All cure activity
24shall address the deficiencies identified by the purchasing
25agency and shall require clear documentation, including that
26of good faith efforts, to address those deficiencies. Any

 

 

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1increase in cost to a contract for the addition of a
2subcontractor to cure a bid's deficiency shall not affect the
3bid price and shall not be used in the request for an exemption
4under this Act, and, in no case, shall an identified
5subcontractor with a Business Enterprise Program certification
6made under this Act be terminated from a contract without the
7written consent of the State agency or public institution of
8higher education entering into the contract. The purchasing
9agency or public institution of higher education shall make
10the determination whether the cure is adequate.
11    Vendors certified with the Business Enterprise Program at
12the time and date submittals are due and who do not submit a
13utilization plan or have utilization plan deficiencies shall
14have 10 business days to submit a utilization plan or to
15correct the utilization plan deficiencies.
16    (f) (Blank).
17    (g) (Blank).
18    (h) State agencies and public institutions of higher
19education shall notify the Commission on Equity and Inclusion
20of all non-responsive bids or proposals for State contracts.
21    (i) All goals established under this Section apply to
22architectural, engineering, and land surveying contracts under
23the Architectural, Engineering, and Land Surveying
24Qualifications Based Selection Act.
25(Source: P.A. 101-170, eff. 1-1-20; 101-601, eff. 1-1-20;
26101-657, Article 1, Section 1-5, eff. 1-1-22; 101-657, Article

 

 

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140, Section 40-130, eff. 1-1-22; 102-29, eff. 6-25-21;
2102-558, eff. 8-20-21; 102-1119, eff. 1-23-23.)
 
3    (30 ILCS 575/4f)
4    (Section scheduled to be repealed on June 30, 2024)
5    Sec. 4f. Award of State contracts.
6    (1) It is hereby declared to be the public policy of the
7State of Illinois to promote and encourage each State agency
8and public institution of higher education to use businesses
9owned by minorities, women, and persons with disabilities in
10the area of goods and services, including, but not limited to,
11insurance services, investment management services,
12information technology services, accounting
13services,architectural and engineering services, and legal
14services. Furthermore, each State agency and public
15institution of higher education shall utilize such firms to
16the greatest extent feasible within the bounds of financial
17and fiduciary prudence, and take affirmative steps to remove
18any barriers to the full participation of such firms in the
19procurement and contracting opportunities afforded.
20        (a) When a State agency or public institution of
21    higher education, other than a community college, awards a
22    contract for insurance services, for each State agency or
23    public institution of higher education, it shall be the
24    aspirational goal to use insurance brokers owned by
25    minorities, women, and persons with disabilities as

 

 

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1    defined by this Act, for not less than 20% of the total
2    annual premiums or fees; provided that, contracts
3    representing at least 11% of the total annual premiums or
4    fees shall be awarded to businesses owned by minorities;
5    contracts representing at least 7% of the total annual
6    premiums or fees shall be awarded to women-owned
7    businesses; and contracts representing at least 2% of the
8    total annual premiums or fees shall be awarded to
9    businesses owned by persons with disabilities.
10        (b) When a State agency or public institution of
11    higher education, other than a community college, awards a
12    contract for investment services, for each State agency or
13    public institution of higher education, it shall be the
14    aspirational goal to use emerging investment managers
15    owned by minorities, women, and persons with disabilities
16    as defined by this Act, for not less than 20% of the total
17    funds under management; provided that, contracts
18    representing at least 11% of the total funds under
19    management shall be awarded to businesses owned by
20    minorities; contracts representing at least 7% of the
21    total funds under management shall be awarded to
22    women-owned businesses; and contracts representing at
23    least 2% of the total funds under management shall be
24    awarded to businesses owned by persons with disabilities.
25    Furthermore, it is the aspirational goal that not less
26    than 20% of the direct asset managers of the State funds be

 

 

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1    minorities, women, and persons with disabilities.
2        (c) When a State agency or public institution of
3    higher education, other than a community college, awards
4    contracts for information technology services, accounting
5    services,architectural and engineering services, and legal
6    services, for each State agency and public institution of
7    higher education, it shall be the aspirational goal to use
8    such firms owned by minorities, women, and persons with
9    disabilities as defined by this Act and lawyers who are
10    minorities, women, and persons with disabilities as
11    defined by this Act, for not less than 20% of the total
12    dollar amount of State contracts; provided that, contracts
13    representing at least 11% of the total dollar amount of
14    State contracts shall be awarded to businesses owned by
15    minorities or minority lawyers; contracts representing at
16    least 7% of the total dollar amount of State contracts
17    shall be awarded to women-owned businesses or women who
18    are lawyers; and contracts representing at least 2% of the
19    total dollar amount of State contracts shall be awarded to
20    businesses owned by persons with disabilities or persons
21    with disabilities who are lawyers.
22        (d) When a community college awards a contract for
23    insurance services, investment services, information
24    technology services, accounting services, architectural
25    and engineering services, and legal services, it shall be
26    the aspirational goal of each community college to use

 

 

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1    businesses owned by minorities, women, and persons with
2    disabilities as defined in this Act for not less than 20%
3    of the total amount spent on contracts for these services
4    collectively; provided that, contracts representing at
5    least 11% of the total amount spent on contracts for these
6    services shall be awarded to businesses owned by
7    minorities; contracts representing at least 7% of the
8    total amount spent on contracts for these services shall
9    be awarded to women-owned businesses; and contracts
10    representing at least 2% of the total amount spent on
11    contracts for these services shall be awarded to
12    businesses owned by persons with disabilities. When a
13    community college awards contracts for investment
14    services, contracts awarded to investment managers who are
15    not emerging investment managers as defined in this Act
16    shall not be considered businesses owned by minorities,
17    women, or persons with disabilities for the purposes of
18    this Section.
19    (2) As used in this Section:
20        "Accounting services" means the measurement,
21    processing and communication of financial information
22    about economic entities including, but is not limited to,
23    financial accounting, management accounting, auditing,
24    cost containment and auditing services, taxation and
25    accounting information systems.
26        "Architectural and engineering services" means

 

 

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1    professional services of an architectural or engineering
2    nature, or incidental services, that members of the
3    architectural and engineering professions, and individuals
4    in their employ, may logically or justifiably perform,
5    including studies, investigations, surveying and mapping,
6    tests, evaluations, consultations, comprehensive
7    planning, program management, conceptual designs, plans
8    and specifications, value engineering, construction phase
9    services, soils engineering, drawing reviews, preparation
10    of operating and maintenance manuals, and other related
11    services.
12        "Emerging investment manager" means an investment
13    manager or claims consultant having assets under
14    management below $10 billion or otherwise adjudicating
15    claims.
16        "Information technology services" means, but is not
17    limited to, specialized technology-oriented solutions by
18    combining the processes and functions of software,
19    hardware, networks, telecommunications, web designers,
20    cloud developing resellers, and electronics.
21        "Insurance broker" means an insurance brokerage firm,
22    claims administrator, or both, that procures, places all
23    lines of insurance, or administers claims with annual
24    premiums or fees of at least $5,000,000 but not more than
25    $10,000,000.
26        "Legal services" means work performed by a lawyer

 

 

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1    including, but not limited to, contracts in anticipation
2    of litigation, enforcement actions, or investigations.
3    (3) Each State agency and public institution of higher
4education shall adopt policies that identify its plan and
5implementation procedures for increasing the use of service
6firms owned by minorities, women, and persons with
7disabilities. All plan and implementation procedures for
8increasing the use of service firms owned by minorities,
9women, and persons with disabilities must be submitted to and
10approved by the Commission on Equity and Inclusion on an
11annual basis.
12    (4) Except as provided in subsection (5), the Council
13shall file no later than March 1 of each year an annual report
14to the Governor, the Bureau on Apprenticeship Programs and
15Clean Energy Jobs, and the General Assembly. The report filed
16with the General Assembly shall be filed as required in
17Section 3.1 of the General Assembly Organization Act. This
18report shall: (i) identify the service firms used by each
19State agency and public institution of higher education, (ii)
20identify the actions it has undertaken to increase the use of
21service firms owned by minorities, women, and persons with
22disabilities, including encouraging non-minority-owned firms
23to use other service firms owned by minorities, women, and
24persons with disabilities as subcontractors when the
25opportunities arise, (iii) state any recommendations made by
26the Council to each State agency and public institution of

 

 

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1higher education to increase participation by the use of
2service firms owned by minorities, women, and persons with
3disabilities, and (iv) include the following:
4        (A) For insurance services: the names of the insurance
5    brokers or claims consultants used, the total of risk
6    managed by each State agency and public institution of
7    higher education by insurance brokers, the total
8    commissions, fees paid, or both, the lines or insurance
9    policies placed, and the amount of premiums placed; and
10    the percentage of the risk managed by insurance brokers,
11    the percentage of total commission, fees paid, or both,
12    the lines or insurance policies placed, and the amount of
13    premiums placed with each by the insurance brokers owned
14    by minorities, women, and persons with disabilities by
15    each State agency and public institution of higher
16    education.
17        (B) For investment management services: the names of
18    the investment managers used, the total funds under
19    management of investment managers; the total commissions,
20    fees paid, or both; the total and percentage of funds
21    under management of emerging investment managers owned by
22    minorities, women, and persons with disabilities,
23    including the total and percentage of total commissions,
24    fees paid, or both by each State agency and public
25    institution of higher education.
26        (C) The names of service firms, the percentage and

 

 

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1    total dollar amount paid for professional services by
2    category by each State agency and public institution of
3    higher education.
4        (D) The names of service firms, the percentage and
5    total dollar amount paid for services by category to firms
6    owned by minorities, women, and persons with disabilities
7    by each State agency and public institution of higher
8    education.
9        (E) The total number of contracts awarded for services
10    by category and the total number of contracts awarded to
11    firms owned by minorities, women, and persons with
12    disabilities by each State agency and public institution
13    of higher education.
14    (5) For community college districts, the Business
15Enterprise Council shall only report the following information
16for each community college district: (i) the name of the
17community colleges in the district, (ii) the name and contact
18information of a person at each community college appointed to
19be the single point of contact for vendors owned by
20minorities, women, or persons with disabilities, (iii) the
21policy of the community college district concerning certified
22vendors, (iv) the certifications recognized by the community
23college district for determining whether a business is owned
24or controlled by a minority, woman, or person with a
25disability, (v) outreach efforts conducted by the community
26college district to increase the use of certified vendors,

 

 

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1(vi) the total expenditures by the community college district
2in the prior fiscal year in the divisions of work specified in
3paragraphs (a), (b), and (c) of subsection (1) of this Section
4and the amount paid to certified vendors in those divisions of
5work, and (vii) the total number of contracts entered into for
6the divisions of work specified in paragraphs (a), (b), and
7(c) of subsection (1) of this Section and the total number of
8contracts awarded to certified vendors providing these
9services to the community college district. The Business
10Enterprise Council shall not make any utilization reports
11under this Act for community college districts for Fiscal Year
122015 and Fiscal Year 2016, but shall make the report required
13by this subsection for Fiscal Year 2017 and for each fiscal
14year thereafter. The Business Enterprise Council shall report
15the information in items (i), (ii), (iii), and (iv) of this
16subsection beginning in September of 2016. The Business
17Enterprise Council may collect the data needed to make its
18report from the Illinois Community College Board.
19    (6) The status of the utilization of services shall be
20discussed at each of the regularly scheduled Business
21Enterprise Council meetings. Time shall be allotted for the
22Council to receive, review, and discuss the progress of the
23use of service firms owned by minorities, women, and persons
24with disabilities by each State agency and public institution
25of higher education; and any evidence regarding past or
26present racial, ethnic, or gender-based discrimination which

 

 

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1directly impacts a State agency or public institution of
2higher education contracting with such firms. If after
3reviewing such evidence the Council finds that there is or has
4been such discrimination against a specific group, race or
5sex, the Council shall establish sheltered markets or adjust
6existing sheltered markets tailored to address the Council's
7specific findings for the divisions of work specified in
8paragraphs (a), (b), and (c) of subsection (1) of this
9Section.
10(Source: P.A. 101-170, eff. 1-1-20; 101-657, Article 5,
11Section 5-10, eff. 7-1-21 (See Section 25 of P.A. 102-29 for
12effective date of P.A. 101-657, Article 5, Section 5-10);
13101-657, Article 40, Section 40-130, eff. 1-1-22; 102-29, eff.
146-25-21; 102-662, eff. 9-15-21.)".