SB2365 EngrossedLRB100 17933 RJF 33117 b

1    AN ACT concerning government.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Illinois Procurement Code is amended by
5changing Section 20-60 and by adding Sections 20-7 and 50-80 as
6follows:
 
7    (30 ILCS 500/20-7 new)
8    Sec. 20-7. Method of scoring.
9    (a) All procurement scoring rubrics for contracts entered
10into under this Code shall account for and allocate 20% of the
11total available points towards evaluation of each respondent's
12commitment to diversity, and shall require supporting
13documentation to that purpose.
14    (b) The scoring rubric requirements established under this
15Section shall include, but not be limited to, the following:
16        (1) for publicly owned businesses, the number and
17    percentage of members of the respondent's governance board
18    who are women, minorities, or persons with disabilities;
19        (2) for privately owned businesses, the respondent
20    shall identify whether it or its affiliates are managed by
21    women, minorities, or persons with disabilities. For the
22    purposes of this paragraph (2), "managed by women,
23    minorities, or persons with disabilities" means being

 

 

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1    owned or managed by a 51% or more combination of women,
2    minorities, or persons with disabilities;
3        (3) the respondent shall provide the number and
4    percentage of the respondent's owners and managers who are
5    women, minorities, or persons with disabilities;
6        (4) the number and percentage of the respondent's
7    senior executive leaders, including partner, president,
8    chief operating officer, managing director, or other
9    senior executives, who are women, minorities, military
10    veterans, or persons with disabilities;
11        (5) the number and percentage of the respondent's
12    staff, including both full-time and part-time employees,
13    who are women, minorities, or persons with disabilities;
14    and
15        (6) the respondent's intended use of subcontractors
16    for a project, if any, that are women, minorities, or
17    persons with disabilities.
18    (c) When a solicitation, including solicitations for sole
19source contracts and contracts with group purchasing
20organizations, is issued by any State agency or public
21institution of higher education and falls within a service or
22product offering that has a history of disparate awards to a
23class of business owners that are identified under the Business
24Enterprise Program Act, the scoring rubric allocation
25identified under subsection (a) shall be 30% of the total
26available points towards evaluation of each respondent's

 

 

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1commitment to diversity.
2    (d) If any State agency contract is eligible to be paid
3for, in whole or in part, with federal-aid funds, grants, or
4loans, and the provisions of this Section would result in the
5loss of those federal-aid funds, grants, or loans, then the
6contract is exempt from the provisions of this Section in order
7to remain eligible for those federal-aid funds, grants, or
8loans.
 
9    (30 ILCS 500/20-60)
10    Sec. 20-60. Duration of contracts.
11    (a) Maximum duration. A contract may be entered into for
12any period of time deemed to be in the best interests of the
13State but not exceeding 10 years inclusive, beginning January
141, 2010, of proposed contract renewals. The length of a lease
15for real property or capital improvements shall be in
16accordance with the provisions of Section 40-25. The length of
17energy conservation program contracts or energy savings
18contracts or leases shall be in accordance with the provisions
19of Section 25-45. A contract for bond or mortgage insurance
20awarded by the Illinois Housing Development Authority,
21however, may be entered into for any period of time less than
22or equal to the maximum period of time that the subject bond or
23mortgage may remain outstanding.
24    (b) Subject to appropriation. All contracts made or entered
25into shall recite that they are subject to termination and

 

 

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1cancellation in any year for which the General Assembly fails
2to make an appropriation to make payments under the terms of
3the contract.
4    (c) The chief procurement officer shall file a proposed
5extension or renewal of a contract with the Procurement Policy
6Board prior to entering into any extension or renewal if the
7cost associated with the extension or renewal exceeds $249,999.
8The Procurement Policy Board may object to the proposed
9extension or renewal within 30 calendar days and require a
10hearing before the Board prior to entering into the extension
11or renewal. If the Procurement Policy Board does not object
12within 30 calendar days or takes affirmative action to
13recommend the extension or renewal, the chief procurement
14officer may enter into the extension or renewal of a contract.
15This subsection does not apply to any emergency procurement,
16any procurement under Article 40, or any procurement exempted
17by Section 1-10(b) of this Code. If any State agency contract
18is paid for in whole or in part with federal-aid funds, grants,
19or loans and the provisions of this subsection would result in
20the loss of those federal-aid funds, grants, or loans, then the
21contract is exempt from the provisions of this subsection in
22order to remain eligible for those federal-aid funds, grants,
23or loans, and the State agency shall file notice of this
24exemption with the Procurement Policy Board prior to entering
25into the proposed extension or renewal. Nothing in this
26subsection permits a chief procurement officer to enter into an

 

 

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1extension or renewal in violation of subsection (a). By August
21 each year, the Procurement Policy Board shall file a report
3with the General Assembly identifying for the previous fiscal
4year (i) the proposed extensions or renewals that were filed
5with the Board and whether the Board objected and (ii) the
6contracts exempt from this subsection.
7    (d) No vendor shall be eligible for renewal of a contract
8when that vendor has failed to meet the Business Enterprise
9Program spending goal specified under the contract, and that
10vendor is not otherwise excused from compliance under the
11Business Enterprise Program Act. This subsection (d) does not
12apply to the renewal of contracts for construction or
13construction-related services.
14(Source: P.A. 100-23, eff. 7-6-17.)
 
15    (30 ILCS 500/50-80 new)
16    Sec. 50-80. Diversity training; report.
17    (a) All employees under each Chief Procurement Officer, as
18defined under Section 1-15.15, shall complete annual training
19for diversity and inclusion as prescribed by the Chief
20Procurement Officer in consultation with the Business
21Enterprise Council.
22    (b) Each Chief Procurement Officer shall submit to the
23Business Enterprise Council an annual report that summarizes
24diversity training that was completed during the previous year,
25and lays out the plan for the diversity training programs in

 

 

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1the coming year. Each Chief Procurement Officer shall also
2submit to the Executive Ethics Commission an annual report
3detailing the current status of its diversity efforts, and an
4action plan to increase diversity internally within their
5respective offices.
 
6    Section 10. The Business Enterprise for Minorities, Women,
7and Persons with Disabilities Act is amended by changing
8Sections 4f and 6 as follows:
 
9    (30 ILCS 575/4f)
10    (Section scheduled to be repealed on June 30, 2020)
11    Sec. 4f. Award of State contracts.
12    (1) It is hereby declared to be the public policy of the
13State of Illinois to promote and encourage each State agency
14and public institution of higher education to use businesses
15owned by minorities, women, and persons with disabilities in
16the area of goods and services, including, but not limited to,
17insurance services, investment management services,
18information technology services, accounting services,
19architectural and engineering services, and legal services.
20Furthermore, each State agency and public institution of higher
21education shall utilize such firms to the greatest extent
22feasible within the bounds of financial and fiduciary prudence,
23and take affirmative steps to remove any barriers to the full
24participation of such firms in the procurement and contracting

 

 

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1opportunities afforded.
2        (a) When a State agency or public institution of higher
3    education, other than a community college, awards a
4    contract for insurance services, for each State agency or
5    public institution of higher education, it shall be the
6    aspirational goal to use insurance brokers owned by
7    minorities, women, and persons with disabilities as
8    defined by this Act, for not less than 20% of the total
9    annual premiums or fees.
10        (b) When a State agency or public institution of higher
11    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. Furthermore, it is the
18    aspirational goal that not less than 20% of the direct
19    asset managers of the State funds be minorities, women, and
20    persons with disabilities.
21        (c) When a State agency or public institution of higher
22    education, other than a community college, awards
23    contracts for information technology services, accounting
24    services, architectural and engineering services, and
25    legal services, for each State agency and public
26    institution of higher education, it shall be the

 

 

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1    aspirational goal to use such firms owned by minorities,
2    women, and persons with disabilities as defined by this Act
3    and lawyers who are minorities, women, and persons with
4    disabilities as defined by this Act, for not less than 20%
5    of the total dollar amount of State contracts. In the case
6    of State contracts for architectural and engineering
7    services, the provisions of this subsection (c) requiring a
8    portion of State contracts to be awarded to businesses
9    owned and controlled by persons with disabilities do not
10    apply.
11        (d) When a community college awards a contract for
12    insurance services, investment services, information
13    technology services, accounting services, architectural
14    and engineering services, and legal services, it shall be
15    the aspirational goal of each community college to use
16    businesses owned by minorities, women, and persons with
17    disabilities as defined in this Act for not less than 20%
18    of the total amount spent on contracts for these services
19    collectively. When a community college awards contracts
20    for investment services, contracts awarded to investment
21    managers who are not emerging investment managers as
22    defined in this Act shall not be considered businesses
23    owned by minorities, women, or persons with disabilities
24    for the purposes of this Section.
25        (e) When a State agency or public institution of higher
26    education issues requests for proposals or solicitations,

 

 

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1    including requests and solicitations for sole source
2    contracts and contracts with group purchasing
3    organizations, that fall within a service or product
4    offering that has a history of disparate awards to a class
5    of business owners that are underrepresented in contract
6    awards, it shall be the aspirational goal to use service or
7    product providers owned by minorities, women, and persons
8    with disabilities as defined by this Act for not less than
9    20% of the total dollar amount of State contracts. If the
10    State agency or public institution of higher education
11    believes that it may be difficult to properly assess the
12    minimum 20% aspirational goal, then it may appear before
13    the Council to seek a modification of the goal requirement
14    provided under this paragraph (e).
15        If any State agency contract is eligible to be paid
16    for, in whole or in part, with federal-aid funds, grants,
17    or loans, and the provisions of this paragraph (e) would
18    result in the loss of those federal-aid funds, grants, or
19    loans, then the contract is exempt from the provisions of
20    this paragraph (e) in order to remain eligible for those
21    federal-aid funds, grants, or loans.
22    (2) As used in this Section:
23        "Accounting services" means the measurement,
24    processing and communication of financial information
25    about economic entities including, but is not limited to,
26    financial accounting, management accounting, auditing,

 

 

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

 

 

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1    premiums or fees of at least $5,000,000 but not more than
2    $10,000,000.
3        "Legal services" means work performed by a lawyer
4    including, but not limited to, contracts in anticipation of
5    litigation, enforcement actions, or investigations.
6    (3) Each State agency and public institution of higher
7education shall adopt policies that identify its plan and
8implementation procedures for increasing the use of service
9firms owned by minorities, women, and persons with
10disabilities.
11    (4) Except as provided in subsection (5), the Council shall
12file no later than March 1 of each year an annual report to the
13Governor and the General Assembly. The report to the General
14Assembly shall be filed with the Clerk of the House of
15Representatives and the Secretary of the Senate in electronic
16form only, in the manner that the Clerk and the Secretary shall
17direct The report filed with the General Assembly shall be
18filed as required in Section 3.1 of the General Assembly
19Organization Act. This report shall: (i) identify the service
20firms used by each State agency and public institution of
21higher education, (ii) identify the actions it has undertaken
22to increase the use of service firms owned by minorities,
23women, and persons with disabilities, including encouraging
24non-minority-owned firms to use other service firms owned by
25minorities, women, and persons with disabilities as
26subcontractors when the opportunities arise, (iii) state any

 

 

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

 

 

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

 

 

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1district to increase the use of certified vendors, (vi) the
2total expenditures by the community college district in the
3prior fiscal year in the divisions of work specified in
4paragraphs (a), (b), and (c) of subsection (1) of this Section
5and the amount paid to certified vendors in those divisions of
6work, and (vii) the total number of contracts entered into for
7the divisions of work specified in paragraphs (a), (b), and (c)
8of subsection (1) of this Section and the total number of
9contracts awarded to certified vendors providing these
10services to the community college district. The Business
11Enterprise Council shall not make any utilization reports under
12this Act for community college districts for Fiscal Year 2015
13and Fiscal Year 2016, but shall make the report required by
14this subsection for Fiscal Year 2017 and for each fiscal year
15thereafter. The Business Enterprise Council shall report the
16information in items (i), (ii), (iii), and (iv) of this
17subsection beginning in September of 2016. The Business
18Enterprise Council may collect the data needed to make its
19report from the Illinois Community College Board.
20    (6) The status of the utilization of services shall be
21discussed at each of the regularly scheduled Business
22Enterprise Council meetings. Time shall be allotted for the
23Council to receive, review, and discuss the progress of the use
24of service firms owned by minorities, women, and persons with
25disabilities by each State agency and public institution of
26higher education; and any evidence regarding past or present

 

 

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1racial, ethnic, or gender-based discrimination which directly
2impacts a State agency or public institution of higher
3education contracting with such firms. If after reviewing such
4evidence the Council finds that there is or has been such
5discrimination against a specific group, race or sex, the
6Council shall establish sheltered markets or adjust existing
7sheltered markets tailored to address the Council's specific
8findings for the divisions of work specified in paragraphs (a),
9(b), and (c) of subsection (1) of this Section.
10(Source: P.A. 99-462, eff. 8-25-15; 99-642, eff. 7-28-16;
11100-391, eff. 8-25-17.)
 
12    (30 ILCS 575/6)  (from Ch. 127, par. 132.606)
13    (Section scheduled to be repealed on June 30, 2020)
14    Sec. 6. Agency compliance plans. Each State agency and
15public institutions of higher education under the jurisdiction
16of this Act shall file with the Council an annual compliance
17plan which shall outline the goals of the State agency or
18public institutions of higher education for contracting with
19businesses owned by minorities, women, and persons with
20disabilities for the then current fiscal year, the manner in
21which the agency intends to reach these goals and a timetable
22for reaching these goals. The Council shall review and approve
23the plan of each State agency and public institutions of higher
24education and may reject any plan that does not comply with
25this Act or any rules or regulations promulgated pursuant to

 

 

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1this Act.
2    (a) The compliance plan shall also include, but not be
3limited to, (1) a policy statement, signed by the State agency
4or public institution of higher education head, expressing a
5commitment to encourage the use of businesses owned by
6minorities, women, and persons with disabilities, (2) the
7designation of the liaison officer provided for in Section 5 of
8this Act, (3) procedures to distribute to potential contractors
9and vendors the list of all businesses legitimately classified
10as businesses owned by minorities, women, and persons with
11disabilities and so certified under this Act, (4) procedures to
12set separate contract goals on specific prime contracts and
13purchase orders with subcontracting possibilities based upon
14the type of work or services and subcontractor availability,
15(5) procedures to assure that contractors and vendors make good
16faith efforts to meet contract goals, (6) procedures for
17contract goal exemption, modification and waiver, and (7) the
18delineation of separate contract goals for businesses owned by
19minorities, women, and persons with disabilities.
20    (b) Approval of the compliance plans shall include such
21delegation of responsibilities to the requesting State agency
22or public institution of higher education as the Council deems
23necessary and appropriate to fulfill the purpose of this Act.
24Such responsibilities may include, but need not be limited to
25those outlined in subsections (1), (2) and (3) of Section 7,
26paragraph (a) of Section 8, and Section 8a of this Act.

 

 

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1    (c) Each State agency and public institution of higher
2education under the jurisdiction of this Act shall file with
3the Council an annual report of its utilization of businesses
4owned by minorities, women, and persons with disabilities
5during the preceding fiscal year including lapse period
6spending and a mid-fiscal year report of its utilization to
7date for the then current fiscal year. The reports shall
8include a self-evaluation of the efforts of the State agency or
9public institution of higher education to meet its goals under
10the Act, as well as a plan to increase the diversity of their
11vendors engaged in contracts, with a particular focus on those
12most underrepresented in contract awards.
13    (d) Notwithstanding any provisions to the contrary in this
14Act, any State agency or public institution of higher education
15which administers a construction program, for which federal law
16or regulations establish standards and procedures for the
17utilization of minority-owned and women-owned businesses and
18disadvantaged businesses, shall implement a disadvantaged
19business enterprise program to include minority-owned and
20women-owned businesses and disadvantaged businesses, using the
21federal standards and procedures for the establishment of goals
22and utilization procedures for the State-funded, as well as the
23federally assisted, portions of the program. In such cases,
24these goals shall not exceed those established pursuant to the
25relevant federal statutes or regulations. Notwithstanding the
26provisions of Section 8b, the Illinois Department of

 

 

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1Transportation is authorized to establish sheltered markets
2for the State-funded portions of the program consistent with
3federal law and regulations. Additionally, a compliance plan
4which is filed by such State agency or public institution of
5higher education pursuant to this Act, which incorporates
6equivalent terms and conditions of its federally-approved
7compliance plan, shall be deemed approved under this Act.
8(Source: P.A. 99-462, eff. 8-25-15; 100-391, eff. 8-25-17.)