Illinois General Assembly - Full Text of SB3715
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Full Text of SB3715  101st General Assembly

SB3715 101ST GENERAL ASSEMBLY

  
  

 


 
101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020
SB3715

 

Introduced 2/14/2020, by Sen. Napoleon Harris, III

 

SYNOPSIS AS INTRODUCED:
 
30 ILCS 500/20-20
30 ILCS 500/50-35
30 ILCS 525/5  from Ch. 85, par. 1605
30 ILCS 575/2
30 ILCS 575/4  from Ch. 127, par. 132.604
30 ILCS 575/5  from Ch. 127, par. 132.605

    Amends the Illinois Procurement Code. Provides that for proposed purchasing activity under the specified small purchase threshold, there shall be no policy or rule infringing a State agency or public institution of higher education's ability to award directly, without competition, to a Business Enterprise Program certified business. Requires disclosure of financial interests for bids and offers with an annual value in excess of the small purchase threshold. Amends the Governmental Joint Purchasing Act. Provides that the Act does not apply to, among other entities, public institutions of higher education. Amends the Business Enterprise for Minorities, Women, and Persons with Disabilities Act. Modifies provisions concerning the award of State contracts. Expands the authority and responsibilities of the Business Enterprise Council. Removes the definition of "business" from the Act. Makes conforming changes.


LRB101 17349 RJF 66754 b

 

 

A BILL FOR

 

SB3715LRB101 17349 RJF 66754 b

1    AN ACT concerning finance.
 
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 Sections 20-20 and 50-35 as follows:
 
6    (30 ILCS 500/20-20)
7    Sec. 20-20. Small purchases.
8    (a) Amount. Any individual procurement of supplies or
9services not exceeding $100,000 and any procurement of
10construction not exceeding $100,000, or any individual
11procurement of professional or artistic services not exceeding
12$100,000 may be made without competitive source selection.
13Procurements shall not be artificially divided so as to
14constitute a small purchase under this Section. Any procurement
15of construction not exceeding $100,000 may be made by an
16alternative competitive source selection. The construction
17agency shall establish rules for an alternative competitive
18source selection process. This Section does not apply to
19construction-related professional services contracts awarded
20in accordance with the provisions of the Architectural,
21Engineering, and Land Surveying Qualifications Based Selection
22Act.
23    (b) Adjustment. Each July 1, the small purchase maximum

 

 

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1established in subsection (a) shall be adjusted for inflation
2as determined by the Consumer Price Index for All Urban
3Consumers as determined by the United States Department of
4Labor and rounded to the nearest $100.
5    (c) Based upon rules proposed by the Board and rules
6promulgated by the chief procurement officers, the small
7purchase maximum established in subsection (a) may be modified.
8    (d) For proposed purchasing activity under the identified
9small purchase threshold established under subsection (a),
10there shall be no policy or rule infringing a State agency or
11public institution of higher education's ability to award
12directly, without competition, to a Business Enterprise
13Program certified business.
14(Source: P.A. 100-43, eff. 8-9-17.)
 
15    (30 ILCS 500/50-35)
16    Sec. 50-35. Financial disclosure and potential conflicts
17of interest.
18    (a) All bids and offers from responsive bidders, offerors,
19vendors, or contractors with an annual value in excess of the
20identified small purchase threshold established under
21subsection (a) of Section 20-20 of more than $50,000, and all
22submissions to a vendor portal, shall be accompanied by
23disclosure of the financial interests of the bidder, offeror,
24potential contractor, or contractor and each subcontractor to
25be used. In addition, all subcontracts identified as provided

 

 

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1by Section 20-120 of this Code with an annual value of more
2than $50,000 shall be accompanied by disclosure of the
3financial interests of each subcontractor. The financial
4disclosure of each successful bidder, offeror, potential
5contractor, or contractor and its subcontractors shall be
6incorporated as a material term of the contract and shall
7become part of the publicly available contract or procurement
8file maintained by the appropriate chief procurement officer.
9Each disclosure under this Section shall be signed and made
10under penalty of perjury by an authorized officer or employee
11on behalf of the bidder, offeror, potential contractor,
12contractor, or subcontractor, and must be filed with the
13Procurement Policy Board.
14    (b) Disclosure shall include any ownership or distributive
15income share that is in excess of 5%, or an amount greater than
1660% of the annual salary of the Governor, of the disclosing
17entity or its parent entity, whichever is less, unless the
18bidder, offeror, potential contractor, contractor, or
19subcontractor (i) is a publicly traded entity subject to
20Federal 10K reporting, in which case it may submit its 10K
21disclosure in place of the prescribed disclosure, or (ii) is a
22privately held entity that is exempt from Federal 10k reporting
23but has more than 100 shareholders, in which case it may submit
24the information that Federal 10k reporting companies are
25required to report under 17 CFR 229.401 and list the names of
26any person or entity holding any ownership share that is in

 

 

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1excess of 5% in place of the prescribed disclosure. The form of
2disclosure shall be prescribed by the applicable chief
3procurement officer and must include at least the names,
4addresses, and dollar or proportionate share of ownership of
5each person identified in this Section, their instrument of
6ownership or beneficial relationship, and notice of any
7potential conflict of interest resulting from the current
8ownership or beneficial relationship of each individual
9identified in this Section having in addition any of the
10following relationships:
11        (1) State employment, currently or in the previous 3
12    years, including contractual employment of services.
13        (2) State employment of spouse, father, mother, son, or
14    daughter, including contractual employment for services in
15    the previous 2 years.
16        (3) Elective status; the holding of elective office of
17    the State of Illinois, the government of the United States,
18    any unit of local government authorized by the Constitution
19    of the State of Illinois or the statutes of the State of
20    Illinois currently or in the previous 3 years.
21        (4) Relationship to anyone holding elective office
22    currently or in the previous 2 years; spouse, father,
23    mother, son, or daughter.
24        (5) Appointive office; the holding of any appointive
25    government office of the State of Illinois, the United
26    States of America, or any unit of local government

 

 

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1    authorized by the Constitution of the State of Illinois or
2    the statutes of the State of Illinois, which office
3    entitles the holder to compensation in excess of expenses
4    incurred in the discharge of that office currently or in
5    the previous 3 years.
6        (6) Relationship to anyone holding appointive office
7    currently or in the previous 2 years; spouse, father,
8    mother, son, or daughter.
9        (7) Employment, currently or in the previous 3 years,
10    as or by any registered lobbyist of the State government.
11        (8) Relationship to anyone who is or was a registered
12    lobbyist in the previous 2 years; spouse, father, mother,
13    son, or daughter.
14        (9) Compensated employment, currently or in the
15    previous 3 years, by any registered election or re-election
16    committee registered with the Secretary of State or any
17    county clerk in the State of Illinois, or any political
18    action committee registered with either the Secretary of
19    State or the Federal Board of Elections.
20        (10) Relationship to anyone; spouse, father, mother,
21    son, or daughter; who is or was a compensated employee in
22    the last 2 years of any registered election or re-election
23    committee registered with the Secretary of State or any
24    county clerk in the State of Illinois, or any political
25    action committee registered with either the Secretary of
26    State or the Federal Board of Elections.

 

 

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1    (b-1) The disclosure required under this Section must also
2include the name and address of each lobbyist required to
3register under the Lobbyist Registration Act and other agent of
4the bidder, offeror, potential contractor, contractor, or
5subcontractor who is not identified under subsections (a) and
6(b) and who has communicated, is communicating, or may
7communicate with any State officer or employee concerning the
8bid or offer. The disclosure under this subsection is a
9continuing obligation and must be promptly supplemented for
10accuracy throughout the process and throughout the term of the
11contract if the bid or offer is successful.
12    (b-2) The disclosure required under this Section must also
13include, for each of the persons identified in subsection (b)
14or (b-1), each of the following that occurred within the
15previous 10 years: suspension or debarment from contracting
16with any governmental entity; professional licensure
17discipline; bankruptcies; adverse civil judgments and
18administrative findings; and criminal felony convictions. The
19disclosure under this subsection is a continuing obligation and
20must be promptly supplemented for accuracy throughout the
21process and throughout the term of the contract if the bid or
22offer is successful.
23    (c) The disclosure in subsection (b) is not intended to
24prohibit or prevent any contract. The disclosure is meant to
25fully and publicly disclose any potential conflict to the chief
26procurement officers, State purchasing officers, their

 

 

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1designees, and executive officers so they may adequately
2discharge their duty to protect the State.
3    (d) When a potential for a conflict of interest is
4identified, discovered, or reasonably suspected, the chief
5procurement officer or State procurement officer shall send the
6contract to the Procurement Policy Board. In accordance with
7the objectives of subsection (c), if the Procurement Policy
8Board finds evidence of a potential conflict of interest not
9originally disclosed by the bidder, offeror, potential
10contractor, contractor, or subcontractor, the Board shall
11provide written notice to the bidder, offeror, potential
12contractor, contractor, or subcontractor that is identified,
13discovered, or reasonably suspected of having a potential
14conflict of interest. The bidder, offeror, potential
15contractor, contractor, or subcontractor shall have 15
16calendar days to respond in writing to the Board, and a hearing
17before the Board will be granted upon request by the bidder,
18offeror, potential contractor, contractor, or subcontractor,
19at a date and time to be determined by the Board, but which in
20no event shall occur later than 15 calendar days after the date
21of the request. Upon consideration, the Board shall recommend,
22in writing, whether to allow or void the contract, bid, offer,
23or subcontract weighing the best interest of the State of
24Illinois. All recommendations shall be submitted to the
25Executive Ethics Commission. The Executive Ethics Commission
26must hold a public hearing within 30 calendar days after

 

 

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1receiving the Board's recommendation if the Procurement Policy
2Board makes a recommendation to (i) void a contract or (ii)
3void a bid or offer and the chief procurement officer selected
4or intends to award the contract to the bidder, offeror, or
5potential contractor. A chief procurement officer is
6prohibited from awarding a contract before a hearing if the
7Board recommendation does not support a bid or offer. The
8recommendation and proceedings of any hearing, if applicable,
9shall be available to the public.
10    (e) These thresholds and disclosure do not relieve the
11chief procurement officer, the State purchasing officer, or
12their designees from reasonable care and diligence for any
13contract, bid, offer, or submission to a vendor portal. The
14chief procurement officer, the State purchasing officer, or
15their designees shall be responsible for using any reasonably
16known and publicly available information to discover any
17undisclosed potential conflict of interest and act to protect
18the best interest of the State of Illinois.
19    (f) Inadvertent or accidental failure to fully disclose
20shall render the contract, bid, offer, proposal, subcontract,
21or relationship voidable by the chief procurement officer if he
22or she deems it in the best interest of the State of Illinois
23and, at his or her discretion, may be cause for barring from
24future contracts, bids, offers, proposals, subcontracts, or
25relationships with the State for a period of up to 2 years.
26    (g) Intentional, willful, or material failure to disclose

 

 

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1shall render the contract, bid, offer, proposal, subcontract,
2or relationship voidable by the chief procurement officer if he
3or she deems it in the best interest of the State of Illinois
4and shall result in debarment from future contracts, bids,
5offers, proposals, subcontracts, or relationships for a period
6of not less than 2 years and not more than 10 years.
7Reinstatement after 2 years and before 10 years must be
8reviewed and commented on in writing by the Governor of the
9State of Illinois, or by an executive ethics board or
10commission he or she might designate. The comment shall be
11returned to the responsible chief procurement officer who must
12rule in writing whether and when to reinstate.
13    (h) In addition, all disclosures shall note any other
14current or pending contracts, bids, offers, proposals,
15subcontracts, leases, or other ongoing procurement
16relationships the bidder, offeror, potential contractor,
17contractor, or subcontractor has with any other unit of State
18government and shall clearly identify the unit and the
19contract, offer, proposal, lease, or other relationship.
20    (i) The bidder, offeror, potential contractor, or
21contractor has a continuing obligation to supplement the
22disclosure required by this Section throughout the bidding
23process during the term of any contract, and during the vendor
24portal registration process.
25(Source: P.A. 97-490, eff. 8-22-11; 97-895, eff. 8-3-12;
2698-1076, eff. 1-1-15.)
 

 

 

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1    Section 10. The Governmental Joint Purchasing Act is
2amended by changing Section 5 as follows:
 
3    (30 ILCS 525/5)  (from Ch. 85, par. 1605)
4    Sec. 5. The provisions of this Act shall not apply to
5public utility services or public institutions of higher
6education as defined by the Illinois Procurement Code.
7(Source: Laws 1961, p. 3382.)
 
8    Section 15. The Business Enterprise for Minorities, Women,
9and Persons with Disabilities Act is amended by changing
10Sections 2, 4, and 5 as follows:
 
11    (30 ILCS 575/2)
12    (Section scheduled to be repealed on June 30, 2024)
13    Sec. 2. Definitions.
14    (A) For the purpose of this Act, the following terms shall
15have the following definitions:
16        (1) "Minority person" shall mean a person who is a
17    citizen or lawful permanent resident of the United States
18    and who is any of the following:
19            (a) American Indian or Alaska Native (a person
20        having origins in any of the original peoples of North
21        and South America, including Central America, and who
22        maintains tribal affiliation or community attachment).

 

 

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1            (b) Asian (a person having origins in any of the
2        original peoples of the Far East, Southeast Asia, or
3        the Indian subcontinent, including, but not limited
4        to, Cambodia, China, India, Japan, Korea, Malaysia,
5        Pakistan, the Philippine Islands, Thailand, and
6        Vietnam).
7            (c) Black or African American (a person having
8        origins in any of the black racial groups of Africa).
9            (d) Hispanic or Latino (a person of Cuban, Mexican,
10        Puerto Rican, South or Central American, or other
11        Spanish culture or origin, regardless of race).
12            (e) Native Hawaiian or Other Pacific Islander (a
13        person having origins in any of the original peoples of
14        Hawaii, Guam, Samoa, or other Pacific Islands).
15        (2) "Woman" shall mean a person who is a citizen or
16    lawful permanent resident of the United States and who is
17    of the female gender.
18        (2.05) "Person with a disability" means a person who is
19    a citizen or lawful resident of the United States and is a
20    person qualifying as a person with a disability under
21    subdivision (2.1) of this subsection (A).
22        (2.1) "Person with a disability" means a person with a
23    severe physical or mental disability that:
24            (a) results from:
25            amputation,
26            arthritis,

 

 

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1            autism,
2            blindness,
3            burn injury,
4            cancer,
5            cerebral palsy,
6            Crohn's disease,
7            cystic fibrosis,
8            deafness,
9            head injury,
10            heart disease,
11            hemiplegia,
12            hemophilia,
13            respiratory or pulmonary dysfunction,
14            an intellectual disability,
15            mental illness,
16            multiple sclerosis,
17            muscular dystrophy,
18            musculoskeletal disorders,
19            neurological disorders, including stroke and
20        epilepsy,
21            paraplegia,
22            quadriplegia and other spinal cord conditions,
23            sickle cell anemia,
24            ulcerative colitis,
25            specific learning disabilities, or
26            end stage renal failure disease; and

 

 

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1            (b) substantially limits one or more of the
2        person's major life activities.
3        Another disability or combination of disabilities may
4    also be considered as a severe disability for the purposes
5    of item (a) of this subdivision (2.1) if it is determined
6    by an evaluation of rehabilitation potential to cause a
7    comparable degree of substantial functional limitation
8    similar to the specific list of disabilities listed in item
9    (a) of this subdivision (2.1).
10        (3) "Minority-owned business" means a business which
11    is at least 51% owned by one or more minority persons, or
12    in the case of a corporation, at least 51% of the stock in
13    which is owned by one or more minority persons; and the
14    management and daily business operations of which are
15    controlled by one or more of the minority individuals who
16    own it.
17        (4) "Women-owned business" means a business which is at
18    least 51% owned by one or more women, or, in the case of a
19    corporation, at least 51% of the stock in which is owned by
20    one or more women; and the management and daily business
21    operations of which are controlled by one or more of the
22    women who own it.
23        (4.1) "Business owned by a person with a disability"
24    means a business that is at least 51% owned by one or more
25    persons with a disability and the management and daily
26    business operations of which are controlled by one or more

 

 

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1    of the persons with disabilities who own it. A
2    not-for-profit agency for persons with disabilities that
3    is exempt from taxation under Section 501 of the Internal
4    Revenue Code of 1986 is also considered a "business owned
5    by a person with a disability".
6        (4.2) "Council" means the Business Enterprise Council
7    for Minorities, Women, and Persons with Disabilities
8    created under Section 5 of this Act.
9        (5) "State contracts" means all contracts entered into
10    by the State, any agency or department thereof, or any
11    public institution of higher education, including
12    community college districts, regardless of the source of
13    the funds with which the contracts are paid, which are not
14    subject to federal reimbursement. "State contracts" does
15    not include contracts awarded by a retirement system,
16    pension fund, or investment board subject to Section
17    1-109.1 of the Illinois Pension Code. This definition shall
18    control over any existing definition under this Act or
19    applicable administrative rule.
20        "State construction contracts" means all State
21    contracts entered into by a State agency or public
22    institution of higher education for the repair,
23    remodeling, renovation or construction of a building or
24    structure, or for the construction or maintenance of a
25    highway defined in Article 2 of the Illinois Highway Code.
26        (6) "State agencies" shall mean all departments,

 

 

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1    officers, boards, commissions, institutions and bodies
2    politic and corporate of the State, but does not include
3    the Board of Trustees of the University of Illinois, the
4    Board of Trustees of Southern Illinois University, the
5    Board of Trustees of Chicago State University, the Board of
6    Trustees of Eastern Illinois University, the Board of
7    Trustees of Governors State University, the Board of
8    Trustees of Illinois State University, the Board of
9    Trustees of Northeastern Illinois University, the Board of
10    Trustees of Northern Illinois University, the Board of
11    Trustees of Western Illinois University, municipalities or
12    other local governmental units, or other State
13    constitutional officers.
14        (7) "Public institutions of higher education" means
15    the University of Illinois, Southern Illinois University,
16    Chicago State University, Eastern Illinois University,
17    Governors State University, Illinois State University,
18    Northeastern Illinois University, Northern Illinois
19    University, Western Illinois University, the public
20    community colleges of the State, and any other public
21    universities, colleges, and community colleges now or
22    hereafter established or authorized by the General
23    Assembly.
24        (8) "Certification" means a determination made by the
25    Council or by one delegated authority from the Council to
26    make certifications, or by a State agency with statutory

 

 

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1    authority to make such a certification, that a business
2    entity is a business owned by a minority, woman, or person
3    with a disability for whatever purpose. A business owned
4    and controlled by women shall be certified as a
5    "woman-owned business". A business owned and controlled by
6    women who are also minorities shall be certified as both a
7    "women-owned business" and a "minority-owned business".
8        (9) "Control" means the exclusive or ultimate and sole
9    control of the business including, but not limited to,
10    capital investment and all other financial matters,
11    property, acquisitions, contract negotiations, legal
12    matters, officer-director-employee selection and
13    comprehensive hiring, operating responsibilities,
14    cost-control matters, income and dividend matters,
15    financial transactions and rights of other shareholders or
16    joint partners. Control shall be real, substantial and
17    continuing, not pro forma. Control shall include the power
18    to direct or cause the direction of the management and
19    policies of the business and to make the day-to-day as well
20    as major decisions in matters of policy, management and
21    operations. Control shall be exemplified by possessing the
22    requisite knowledge and expertise to run the particular
23    business and control shall not include simple majority or
24    absentee ownership.
25        (10) "Business" means a business that has annual gross
26    sales of less than $75,000,000 as evidenced by the federal

 

 

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1    income tax return of the business. A firm with gross sales
2    in excess of this cap may apply to the Council for
3    certification for a particular contract if the firm can
4    demonstrate that the contract would have significant
5    impact on businesses owned by minorities, women, or persons
6    with disabilities as suppliers or subcontractors or in
7    employment of minorities, women, or persons with
8    disabilities.
9        (10) (11) "Utilization plan" means a form and
10    additional documentations included in all bids or
11    proposals that demonstrates a vendor's proposed
12    utilization of vendors certified by the Business
13    Enterprise Program to meet the targeted goal. The
14    utilization plan shall demonstrate that the Vendor has
15    either: (1) met the entire contract goal or (2) requested a
16    full or partial waiver and made good faith efforts towards
17    meeting the goal.
18        (11) (12) "Business Enterprise Program" means the
19    Business Enterprise Program of the Department of Central
20    Management Services.
21    (B) When a business is owned at least 51% by any
22combination of minority persons, women, or persons with
23disabilities, even though none of the 3 classes alone holds at
24least a 51% interest, the ownership requirement for purposes of
25this Act is considered to be met. The certification category
26for the business is that of the class holding the largest

 

 

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1ownership interest in the business. If 2 or more classes have
2equal ownership interests, the certification category shall be
3determined by the business.
4(Source: P.A. 100-391, eff. 8-25-17; 101-601, eff. 1-1-20.)
 
5    (30 ILCS 575/4)  (from Ch. 127, par. 132.604)
6    (Section scheduled to be repealed on June 30, 2024)
7    Sec. 4. Award of State contracts.
8    (a) Except as provided in subsection (b), not less than 20%
9of the total dollar amount of State contracts, as defined by
10the Secretary of the Council and approved by the Council, shall
11be established as an aspirational goal to be awarded to
12businesses owned by minorities, women, and persons with
13disabilities; provided, however, that of the total amount of
14all State contracts awarded to businesses owned by minorities,
15women, and persons with disabilities pursuant to this Section,
16contracts representing at least 11% shall be awarded to
17businesses owned by minorities, contracts representing at
18least 7% shall be awarded to women-owned businesses, and
19contracts representing at least 2% shall be awarded to
20businesses owned by persons with disabilities.
21    The above percentage relates to the total dollar amount of
22State contracts during each State fiscal year, calculated by
23examining independently each type of contract for each agency
24or public institutions of higher education which lets such
25contracts. Only that percentage of arrangements which

 

 

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1represents the participation of businesses owned by
2minorities, women, and persons with disabilities on such
3contracts shall be included. State contracts subject to the
4requirements of this Act shall include the requirement that
5only expenditures to businesses owned by minorities, women, and
6persons with disabilities that perform a commercially useful
7function may be counted toward the goals set forth by this Act.
8Contracts shall include a definition of "commercially useful
9function" that is consistent with 49 CFR 26.55(c).
10    (b) Not less than 20% of the total dollar amount of State
11construction contracts is established as an aspirational goal
12to be awarded to businesses owned by minorities, women, and
13persons with disabilities; provided that, contracts
14representing at least 11% of the total dollar amount of State
15construction contracts shall be awarded to businesses owned by
16minorities; contracts representing at least 7% of the total
17dollar amount of State construction contracts shall be awarded
18to women-owned businesses; and contracts representing at least
192% of the total dollar amount of State construction contracts
20shall be awarded to businesses owned by persons with
21disabilities.
22    (c) (Blank).
23    (d) Within one year after April 28, 2009 (the effective
24date of Public Act 96-8), the Department of Central Management
25Services shall conduct a social scientific study that measures
26the impact of discrimination on minority and women business

 

 

SB3715- 20 -LRB101 17349 RJF 66754 b

1development in Illinois. Within 18 months after April 28, 2009
2(the effective date of Public Act 96-8), the Department shall
3issue a report of its findings and any recommendations on
4whether to adjust the goals for minority and women
5participation established in this Act. Copies of this report
6and the social scientific study shall be filed with the
7Governor and the General Assembly.
8    By December 1, 2020, the Department of Central Management
9Services shall conduct a new social scientific study that
10measures the impact of discrimination on minority and women
11business development in Illinois. By June 1, 2022, the
12Department shall issue a report of its findings and any
13recommendations on whether to adjust the goals for minority and
14women participation established in this Act. Copies of this
15report and the social scientific study shall be filed with the
16Governor, the Advisory Board, and the General Assembly. By
17December 1, 2022, the Department of Central Management Services
18Business Enterprise Program shall develop a model for social
19scientific disparity study sourcing for local governmental
20units to adapt and implement to address regional disparities in
21public procurement.
22    (e) (Blank). Except as permitted under this Act or as
23otherwise mandated by federal law or regulation, those who
24submit bids or proposals for State contracts subject to the
25provisions of this Act, whose bids or proposals are successful
26and include a utilization plan but that fail to meet the goals

 

 

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1set forth in subsection (b) of this Section, shall be notified
2of that deficiency and shall be afforded a period not to exceed
310 calendar days from the date of notification to cure that
4deficiency in the bid or proposal. The deficiency in the bid or
5proposal may only be cured by contracting with additional
6subcontractors who are owned by minorities or women. Any
7increase in cost to a contract for the addition of a
8subcontractor to cure a bid's deficiency shall not affect the
9bid price, shall not be used in the request for an exemption in
10this Act, and in no case shall an identified subcontractor with
11a certification made pursuant to this Act be terminated from
12the contract without the written consent of the State agency or
13public institution of higher education entering into the
14contract.
15    (f) Non-construction solicitations that include Business
16Enterprise Program participation goals shall require bidders
17and offerors to include utilization plans. Utilization plans
18are due at the time of bid or offer submission. Failure to
19complete and include a utilization plan, including
20documentation demonstrating good faith effort when requesting
21a waiver, shall render the bid or offer non-responsive.
22    Except as permitted under this Act or as otherwise mandated
23by federal regulation, those who submit bids or proposals for
24State contracts, whose bids or proposals are successful and
25include a completed utilization plan, but fail to meet the
26goals set forth in the solicitation, shall be notified of the

 

 

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1deficiency and shall be afforded a period not to exceed 10
2calendar days from the date of notification to cure that
3deficiency in the bid or proposal. The deficiency in the bid or
4proposal may only be cured by contracting with additional
5subcontractor's owned by minorities or women subcontractors,
6or by increasing the work to be performed by previously
7identified vendors owned by minorities or women
8subcontractors. In no case shall an identified subcontractor
9with a certification made pursuant to this Act be terminated
10from the contract without written consent of the State agency
11or public institution of higher education entering in to the
12contract.
13(Source: P.A. 100-391, eff. 8-25-17; 101-170, eff. 1-1-20;
14101-601, eff. 1-1-20.)
 
15    (30 ILCS 575/5)  (from Ch. 127, par. 132.605)
16    (Section scheduled to be repealed on June 30, 2024)
17    Sec. 5. Business Enterprise Council.
18    (1) To help implement, monitor and enforce the goals of
19this Act, there is created the Business Enterprise Council for
20Minorities, Women, and Persons with Disabilities, hereinafter
21referred to as the Council, composed of the Secretary of Human
22Services and the Directors of the Department of Human Rights,
23the Department of Commerce and Economic Opportunity, the
24Department of Central Management Services, the Department of
25Transportation and the Capital Development Board, or their duly

 

 

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1appointed representatives, with the Comptroller, or his or her
2designee, serving as an advisory member of the Council. Ten
3individuals representing businesses that are minority-owned or
4women-owned or owned by persons with disabilities, 2
5individuals representing the business community, and a
6representative of public institutions of higher education
7shall be appointed by the Governor. These members shall serve
82-year 2 year terms and shall be eligible for reappointment.
9Any vacancy occurring on the Council shall also be filled by
10the Governor. Any member appointed to fill a vacancy occurring
11prior to the expiration of the term for which his predecessor
12was appointed shall be appointed for the remainder of such
13term. Members of the Council shall serve without compensation
14but shall be reimbursed for any ordinary and necessary expenses
15incurred in the performance of their duties.
16    The Director of the Department of Central Management
17Services shall serve as the Council chairperson and shall
18select, subject to approval of the council, a Secretary
19responsible for the operation of the program who shall serve as
20the Division Manager of the Business Enterprise for Minorities,
21Women, and Persons with Disabilities Division of the Department
22of Central Management Services.
23    The Director of each State agency and the chief executive
24officer of each public institutions of higher education shall
25appoint a liaison to the Council. The liaison shall be
26responsible for submitting to the Council any reports and

 

 

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1documents necessary under this Act.
2    (2) The Council's authority and responsibility shall be to:
3        (a) Devise a certification procedure to assure that
4    businesses taking advantage of this Act are legitimately
5    classified as businesses owned by minorities, women, or
6    persons with disabilities and a registration procedure to
7    recognize, without additional evidence of Business
8    Enterprise Program eligibility, the certification of
9    businesses owned by minorities, women, or persons with
10    disabilities certified by the City of Chicago, Cook County,
11    or other jurisdictional programs with requirements and
12    procedures equaling or exceeding those in this Act.
13        (b) Maintain a list of all businesses legitimately
14    classified as businesses owned by minorities, women, or
15    persons with disabilities to provide to State agencies and
16    public institutions of higher education.
17        (c) Review rules and regulations for the
18    implementation of the program for businesses owned by
19    minorities, women, and persons with disabilities.
20        (d) Review compliance plans submitted by each State
21    agency and public institutions of higher education
22    pursuant to this Act.
23        (e) Make annual reports as provided in Section 8f to
24    the Governor and the General Assembly on the status of the
25    program.
26        (f) Serve as a central clearinghouse for information on

 

 

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1    State contracts, including the maintenance of a list of all
2    pending State contracts upon which businesses owned by
3    minorities, women, and persons with disabilities may bid.
4    At the Council's discretion, maintenance of the list may
5    include 24-hour electronic access to the list along with
6    the bid and application information.
7        (g) Establish a toll free telephone number to
8    facilitate information requests concerning the
9    certification process and pending contracts.
10        (h) Adopt a procedure to grant automatic certification
11    to businesses holding a certification from at least one of
12    the following entities: (i) the Illinois Unified
13    Certification Program; (ii) the Women's Business
14    Development Center in Chicago; (iii) the Chicago Minority
15    Supplier Development Council; or (iv) any other similar
16    entity offering such certification to businesses.
17        (i) Develop and maintain a repository for
18    non-certified vendors that: (i) have applied for
19    certification and have been denied; (ii) have started, but
20    not completed, the certification process; (iii) have
21    achieved certification, but did not seek renewal; or (iv)
22    are known businesses owned by minorities, women, or persons
23    with disabilities.
24    (3) No premium bond rate of a surety company for a bond
25required of a business owned by a minority, woman, or person
26with a disability bidding for a State contract shall be higher

 

 

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1than the lowest rate charged by that surety company for a
2similar bond in the same classification of work that would be
3written for a business not owned by a minority, woman, or
4person with a disability.
5    (4) Any Council member who has direct financial or personal
6interest in any measure pending before the Council shall
7disclose this fact to the Council and refrain from
8participating in the determination upon such measure.
9    (5) The Secretary shall have the following duties and
10responsibilities:
11        (a) To be responsible for the day-to-day operation of
12    the Council.
13        (b) To serve as a coordinator for all of the State's
14    programs for businesses owned by minorities, women, and
15    persons with disabilities and as the information and
16    referral center for all State initiatives for businesses
17    owned by minorities, women, and persons with disabilities.
18        (c) To establish an enforcement procedure whereby the
19    Council may recommend to the appropriate State legal
20    officer that the State exercise its legal remedies which
21    shall include (1) termination of the contract involved, (2)
22    prohibition of participation by the respondent in public
23    contracts for a period not to exceed 3 years, (3)
24    imposition of a penalty not to exceed any profit acquired
25    as a result of violation, or (4) any combination thereof.
26    Such procedures shall require prior approval by Council.

 

 

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1    All funds collected as penalties under this subsection
2    shall be used exclusively for maintenance and further
3    development of the Business Enterprise Program and
4    encouragement of participation in State procurement by
5    minorities, women, and persons with disabilities.
6        (d) To devise appropriate policies, regulations and
7    procedures for including participation by businesses owned
8    by minorities, women, and persons with disabilities as
9    prime contractors including, but not limited to, (i)
10    encouraging the inclusions of qualified businesses owned
11    by minorities, women, and persons with disabilities on
12    solicitation lists, (ii) investigating the potential of
13    blanket bonding programs for small construction jobs,
14    (iii) investigating and making recommendations concerning
15    the use of the sheltered market process.
16        (e) To devise procedures for the waiver of the
17    participation goals in appropriate circumstances.
18        (f) To accept donations and, with the approval of the
19    Council or the Director of Central Management Services,
20    grants related to the purposes of this Act; to conduct
21    seminars related to the purpose of this Act and to charge
22    reasonable registration fees; and to sell directories,
23    vendor lists and other such information to interested
24    parties, except that forms necessary to become eligible for
25    the program shall be provided free of charge to a business
26    or individual applying for the program.

 

 

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1(Source: P.A. 100-391, eff. 8-25-17; 100-801, eff. 8-10-18;
2101-601, eff. 1-1-20.)