Synopsis As Introduced Amends the Illinois Procurement Code. Requires bidders to obtain an equal pay certificate before a purchasing agency may issue a contract to the bidder. Provides for the Department of Employment Security to issue the certificates. Specifies information to be included in an application for an equal pay certificate. Requires bidders to comply with the Equal Pay Act of 2003, Equal Wage Act, Illinois Human Rights Act, and Title VII of the Civil Rights Act of 1964. Amends the State Finance Act to create the Equal Pay Certificate Fund. Provides for moneys in the Fund to be used to administer the equal pay certificate requirements.
Fiscal Note (Dept. of Employment Security)
Fiscal Overview for HB 3539 is as follows: (1) Initial Start Costs = $7.5 million to $11 million to develop a fully functioning Equal Pay Certification platform, which includes an online application component, an interagency connection to the Department of Human Rights, and a revenue collection component, as well as 6-10 full-time equivalents for the creation and establishment of rules, policies, procedures, etc., for reporting, appeals, and adjudication. We derived this estimate based on our startup experience with our Adeptia Work Opportunity Tax Credit system. We believe a similar effort will be needed to develop the Equal Pay Certification platform; (2) Ongoing Costs $1.5 million to $3.5 million to administer the Equal Pay Certification program annually. Approximately 12-16 full time equivalents would be needed to administer and manage the day-to-day operations of this program. This estimate includes the cost of hiring a program administrator, administrative assistant, technical assistance specialist, IT contractors, and wage and hour investigators to implement the provisions of the bill, as well as an office to handle administrative appeals. The vast majority of the ongoing costs would be salaries, fringe benefits, one-time expenditures, and other ongoing operating expenses (lease space, technology hardware and software, telephones, etc.); (3) Revenue = $1.25 million to $3 million from application filing fees annually. The bill requires that revenues from the application fees are deposited into the Equal Pay Certification Fund, a special fund created in the State Treasury to help cover the costs of administering the program. Based on these assumptions, revenues from this program will not be sufficient to cover the costs of the program. (NOTE) The cost and revenue estimates provided herein are based primarily on our experience implementing the Adeptia WOTC technology platform and administering programs related to the Department of Employment Security. Specific costs estimates are difficult to estimate without more specific program structure and input from other State departments, such as the Chief Procurement Offices for General Services, Higher Education, Transportation, and Capital Development, as well as the Department of Human Rights. It is also important to emphasize that current federal funding guidelines do not authorize the State to use federal funds to subsidize the cost of this Equal Pay Certification program.
State Mandates Fiscal Note (Dept. of Commerce & Economic Opportunity)
Replaces everything after the enacting clause with provisions of the introduced bill with the following changes: Removes the amendatory language from the Illinois Procurement Code and instead creates the Equal Pay Certificate Act with similar provisions, and makes conforming changes. Provides that the Act applies to contracts after June 1, 2018. Allows the Department of Employment Security to adopt rules for the fair administration of suspending or revoking equal pay certificates by March 1, 2018. Allows the Department to recommend that a contract be voided by the applicable Chief Procurement Officer for failure to have an equal pay certificate. Requires the Department to publish a list of all businesses in compliance with the Act with current and valid equal pay certificates on its website. Effective immediately.