HB3868 97TH GENERAL ASSEMBLY

LRB097 13616 PJG 58152 b

97TH GENERAL ASSEMBLY
State of Illinois
2011 and 2012
HB3868

Introduced 10/27/2011, by Rep. La Shawn K. Ford

SYNOPSIS AS INTRODUCED:

30 ILCS 500/45-45
30 ILCS 503/5
30 ILCS 503/10

Amends the Illinois Procurement Code. Provides that no service business is a small business if its average annual gross revenue for its 3 most recently completed fiscal years equals or exceeds $6,000,000. Amends the Small Business Contracts Act. Defines "very small business". Provides that not less than 1% of the total dollar amount of State contracts shall be established as a goal to be awarded to very small businesses. Effective immediately.

FISCAL NOTE ACT MAY APPLY

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 changing Section 45-45 as follows:

(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.

(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.

(5) No service business is a small business if its average annual gross revenue for its 3 most recently completed fiscal years equals or exceeds $6,000,000.

(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 Small Business Contracts Act is amended by changing Sections 5 and 10 as follows:

(30 ILCS 503/5)

Sec. 5. Definitions. For the purposes of this Act, the following terms shall have the following definitions:

"Small business" means a small business as defined in the Illinois Procurement Code.

"State contract" means a State contract, as defined in the Illinois Procurement Code, funded with State or federal funds, whether competitively bid or negotiated.

"State official or agency" means a department, officer, board, commission, institution, or body politic or corporate of the State.

"Very small business" means a small business with an average annual gross revenue of less than $500,000 over its 3 most recently completed fiscal years.

(Source: P.A. 97-307, eff. 8-11-11.)

(30 ILCS 503/10)

Sec. 10. Award of State contracts.

(a) Not less than 10% of the total dollar amount of State contracts shall be established as a goal to be awarded to small businesses.

(a-5) Not less than 1% of the total dollar amount of State contracts shall be established as a goal to be awarded to very small businesses.

(b) The percentages percentage in subsections subsection (a) and (a-5) relate relates to the total dollar amount of State contracts during each State fiscal year, calculated by examining independently each type of contract for each State official or agency which lets such contracts.

(Source: P.A. 97-307, eff. 8-11-11.)

Section 99. Effective date. This Act takes effect upon becoming law.