Illinois General Assembly - Full Text of HB4415
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Full Text of HB4415  98th General Assembly




State of Illinois
2013 and 2014


Introduced , by Rep. William Davis


30 ILCS 500/45-45

    Amends the Illinois Procurement Code. Provides that the Director of Central Management Services (instead of the chief procurement officer) has the authority to designate small business set-asides. Provides that the Business Enterprise for Minorities, Females, and Persons with Disabilities Act applies to small business set-asides.

LRB098 19285 JWD 54437 b






HB4415LRB098 19285 JWD 54437 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 Section 45-45 as follows:
6    (30 ILCS 500/45-45)
7    Sec. 45-45. Small businesses.
8    (a) Set-asides. The Director of Central Management
9Services (Director) chief procurement officer has authority to
10designate as small business set-asides a fair proportion of
11construction, supply, and service contracts for award to small
12businesses in Illinois. Advertisements for bids or offers for
13those contracts shall specify designation as small business
14set-asides. In awarding the contracts, only bids or offers from
15qualified small businesses shall be considered.
16    (b) Small business. "Small business" means a business that
17is independently owned and operated and that is not dominant in
18its field of operation. The Director chief procurement officer
19shall establish a detailed definition by rule, using in
20addition to the foregoing criteria other criteria, including
21the number of employees and the dollar volume of business. When
22computing the size status of a bidder, annual sales and
23receipts of the bidder and all of its affiliates shall be



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1included. The maximum number of employees and the maximum
2dollar volume that a small business may have under the rules
3promulgated by the Director chief procurement officer may vary
4from industry to industry to the extent necessary to reflect
5differing characteristics of those industries, subject to the
6following limitations:
7        (1) No wholesale business is a small business if its
8    annual sales for its most recently completed fiscal year
9    exceed $10,000,000.
10        (2) No retail business or business selling services is
11    a small business if its annual sales and receipts exceed
12    $6,000,000.
13        (3) No manufacturing business is a small business if it
14    employs more than 250 persons.
15        (4) No construction business is a small business if its
16    annual sales and receipts exceed $10,000,000.
17    (c) Fair proportion. For the purpose of subsection (a), for
18State agencies of the executive branch, a fair proportion of
19construction contracts shall be no less than 25% nor more than
2040% of the annual total contracts for construction.
21    (d) Withdrawal of designation. A small business set-aside
22designation may be withdrawn by the purchasing agency when
23deemed in the best interests of the State. Upon withdrawal, all
24bids or offers shall be rejected, and the bidders or offerors
25shall be notified of the reason for rejection. The contract
26shall then be awarded in accordance with this Code without the



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1designation of small business set-aside.
2    (e) Small business specialist. The Director chief
3procurement officer shall designate a State purchasing officer
4who will be responsible for engaging an experienced contract
5negotiator to serve as its small business specialist, whose
6duties shall include:
7        (1) Compiling and maintaining a comprehensive bidders
8    list of small businesses. In this duty, he or she shall
9    cooperate with the Federal Small Business Administration
10    in locating potential sources for various products and
11    services.
12        (2) Assisting small businesses in complying with the
13    procedures for bidding on State contracts.
14        (3) Examining requests from State agencies for the
15    purchase of property or services to help determine which
16    invitations to bid are to be designated small business
17    set-asides.
18        (4) Making recommendations to the Director chief
19    procurement officer for the simplification of
20    specifications and terms in order to increase the
21    opportunities for small business participation.
22        (5) Assisting in investigations by purchasing agencies
23    to determine the responsibility of bidders on small
24    business set-asides.
25    (f) Small business annual report. The State purchasing
26officer designated under subsection (e) shall annually before



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1December 1 report in writing to the General Assembly concerning
2the awarding of contracts to small businesses. The report shall
3include the total value of awards made in the preceding fiscal
4year under the designation of small business set-aside. The
5report shall also include the total value of awards made to
6businesses owned by minorities, females, and persons with
7disabilities, as defined in the Business Enterprise for
8Minorities, Females, and Persons with Disabilities Act, in the
9preceding fiscal year under the designation of small business
11    The Business Enterprise for Minorities, Females, and
12Persons with Disabilities Act applies to contracts procured
13under this Section.
14    The requirement for reporting to the General Assembly shall
15be satisfied by filing copies of the report as required by
16Section 3.1 of the General Assembly Organization Act.
17(Source: P.A. 92-60, eff. 7-12-01; 93-769, eff. 1-1-05.)