HB3334ham001 94TH GENERAL ASSEMBLY

Rep. Ruth Munson

Filed: 4/12/2005

09400HB3334ham001 LRB094 07863 JAM 44917 a

AMENDMENT TO HOUSE BILL 3334

AMENDMENT NO. ______. Amend House Bill 3334 by replacing everything after the enacting clause with the following:

"Section 5. The Illinois Procurement Code is amended by changing Sections 20-50 and 45-45 as follows:

(30 ILCS 500/20-50)

Sec. 20-50. Specifications. Specifications shall be prepared in accordance with consistent standards that are promulgated by the chief procurement officer and reviewed by the Board and the Joint Committee on Administrative Rules. Those standards shall include a prohibition against the use of brand-name only products, except for products intended for retail sale or as specified by rule, and shall include a restriction on the use of specifications drafted by a potential bidder. All specifications shall seek to promote overall economy for the purposes intended and encourage competition in satisfying the State's needs and shall not be unduly restrictive.

A solicitation or specification for a contract or a contract, including a contract of a college, university, or institution under the jurisdiction of a governing board listed in Section 1-15.100, may not require, stipulate, suggest, or encourage a monetary or other financial contribution or donation as an explicit or implied term or condition for awarding or completing the contract. The contract, solicitation, or specification also may not include a requirement that an individual or individuals employed by such a college, university, or institution receive a consulting contract for professional services.

Each specification shall include a best estimate of the payment cycle under the contract. This best estimate (i) shall be expressed as the number of days between the submission of a proper bill or invoice under the contract and the expected payment date and (ii) shall also be recited in the contract documents. The payment cycle shall not be for a period longer than the period allowed for payment without interest penalties under the State Prompt Payment Act. If with due diligence payment can be made in a period shorter than the payment cycle, the recitation of the payment cycle in the contract shall not be used to delay payment.

(Source: P.A. 90-572, eff. date - See Sec. 99-5; 91-627, eff. 8-19-99.)

(30 ILCS 500/45-45)

Sec. 45-45. Small businesses.

(a) Set-asides. The chief procurement officer has authority to designate as small business set-asides a fair proportion of construction, supply, and service contracts for award to small businesses in Illinois. Advertisements for bids or offers for those contracts shall specify designation as small business set-asides. In awarding the contracts, only bids or offers from qualified small businesses shall be considered.

If an invitation for bids, a request for proposals, or any other solicitation that has been designated as a small business set-aside is cancelled, then a new invitation for bids, request for proposals, or other solicitation for the same or substantially the same goods or services must also be designated as a small business set-aside; except that if the invitation, request, or other solicitation is cancelled because there are no small business bids, proposals, or other responses, then the new invitation, request, or other solicitation for the same or substantially similar goods or services need not by designated as a small business set-aside. Due diligence must be used to promote the availability of a small business set-aside by searching for small businesses and targeting small businesses in the solicitation process.

(b) Small business. "Small business" means a business that is independently owned and operated and that is not dominant in its field of operation. The chief procurement officer shall establish a detailed definition by rule, using in addition to the foregoing criteria other criteria, including the number of employees and the dollar volume of business. When computing the size status of a bidder, annual sales and receipts of the bidder and all of its affiliates shall be included. The maximum number of employees and the maximum dollar volume that a small business may have under the rules promulgated by the chief procurement officer may vary from industry to industry to the extent necessary to reflect differing characteristics of those industries, subject to the following limitations:

(1) No wholesale business is a small business if its annual sales for its most recently completed fiscal year exceed $10,000,000.

(2) No retail business or business selling services is a small business if its annual sales and receipts exceed $6,000,000.

(3) No manufacturing business is a small business if it employs more than 250 persons.

(4) No construction business is a small business if its annual sales and receipts exceed $10,000,000.

(c) Fair proportion. For the purpose of subsection (a), for State agencies of the executive branch, a fair proportion of construction contracts shall be no less than 25% nor more than 40% of the annual total contracts for construction.

(d) Withdrawal of designation. A small business set-aside designation may be withdrawn by the purchasing agency when deemed in the best interests of the State. Upon withdrawal, all bids or offers shall be rejected, and the bidders or offerors shall be notified of the reason for rejection. The contract shall then be awarded in accordance with this Code without the designation of small business set-aside.

(e) Small business specialist. The chief procurement officer shall designate a State purchasing officer who will be responsible for engaging an experienced contract negotiator to serve as its small business specialist, whose duties shall include:

(1) Compiling and maintaining a comprehensive bidders list of small businesses. In this duty, he or she shall cooperate with the Federal Small Business Administration in locating potential sources for various products and services.

(2) Assisting small businesses in complying with the procedures for bidding on State contracts.

(3) Examining requests from State agencies for the purchase of property or services to help determine which invitations to bid are to be designated small business set-asides.

(4) Making recommendations to the chief procurement officer for the simplification of specifications and terms in order to increase the opportunities for small business participation.

(5) Assisting in investigations by purchasing agencies to determine the responsibility of bidders on small business set-asides.

(f) Small business annual report. The State purchasing officer designated under subsection (e) shall annually before December 1 report in writing to the General Assembly concerning the awarding of contracts to small businesses. The report shall include the total value of awards made in the preceding fiscal year under the designation of small business set-aside. The report shall also include the total value of awards made to businesses owned by minorities, females, and persons with disabilities, as defined in the Business Enterprise for Minorities, Females, and Persons with Disabilities Act, in the preceding fiscal year under the designation of small business set-aside.

The requirement for reporting to the General Assembly shall be satisfied by filing copies of the report as required by Section 3.1 of the General Assembly Organization Act.

(Source: P.A. 92-60, eff. 7-12-01; 93-769, eff. 1-1-05.)

Section 10. The State Prompt Payment Act is amended by changing Section 3-3 as follows:

(30 ILCS 540/3-3) (from Ch. 127, par. 132.403-3)

Sec. 3-3. Rules. The State Comptroller and the Department of Central Management Services shall jointly promulgate rules and policies to govern the uniform application of this Act. These rules and policies shall include procedures and time frames for approving a bill or invoice from a vendor for goods or services furnished to the State. These rules and policies shall provide for procedures and time frames applicable to payment plans as may be agreed upon between State agencies and vendors. These rules and policies shall be binding on all officials and agencies under this Act's jurisdiction. These rules and policies may be made effective no earlier than July 1, 1993.

In addition, the State Comptroller and the Department of Central Management Services shall jointly promulgate rules to develop and implement a single website that details information for vendors regarding the status of each proper bill and invoice submitted pursuant to a contract awarded under the Illinois Procurement Code. The website must allow the vendor to determine the status of the bill or invoice from the time it is submitted to the State agency through the time it is paid by the Comptroller, including a best estimate of the number of days before payment will be made by the Comptroller.

(Source: P.A. 92-384, eff. 7-1-02.)".