SB4008 104TH GENERAL ASSEMBLY

LRB104 19775 RTM 33225 b

104TH GENERAL ASSEMBLY
State of Illinois
2025 and 2026
SB4008

Introduced 2/6/2026, by Sen. Ram Villivalam

SYNOPSIS AS INTRODUCED:

30 ILCS 574/40-10
70 ILCS 3615/2.39.5 new

Amends the Regional Transportation Authority Act. Requires the Northern Illinois Transit Authority to establish a goal to award not less than 3% of the total dollar amount of all contracts with the Northern Illinois Transit Authority, the Chicago Transit Authority, the Suburban Bus Division, and the Commuter Rail Division to qualified service-disabled veteran-owned small businesses and qualified veteran-owned small businesses. Provides that, by each March 1, the Board shall report to the Governor and General Assembly (1) the total number of qualified veteran-owned small businesses that submitted bids for contracts with the Authority and the total number of qualified service-disabled veteran-owned small businesses in the immediately preceding fiscal year; (2) the total number of qualified veteran-owned small businesses, and qualified service-disabled veteran-owned small businesses, that entered into contracts with the Authority in the immediately preceding fiscal year; (3) a year-by-year comparison of awarded contracts to certified veteran-owned small businesses and service-disabled veteran-owned small businesses; and (4) any other information that the Board deems necessary to assist veteran-owned small businesses and service-disabled veteran-owned small businesses to become certified with the State. Provides that, each year, the Board shall review the progress of the Authority and the Service Boards in meeting the goal, with input from statewide veterans' service organizations and from the business community, including businesses owned by qualified veterans, and shall make recommendations to the General Assembly regarding continuation, increases, or decreases of the percentage goal. Provides that the Board shall suspend any person who commits a violation of specified offenses under the Criminal Code of 2012 from bidding on, or participating as a contractor, subcontractor, or supplier in, any Authority contract or project for a period of not less than 3 years, and, if the person is certified as a service-disabled veteran-owned small business or a veteran-owned small business, then the Commission shall revoke the business's certification for a period of not less than 3 years. Makes conforming changes in the Commission on Equity and Inclusion Act.

A BILL FOR

AN ACT concerning local government.

Be it enacted by the People of the State of Illinois, represented in the General Assembly:

Section 5. The Commission on Equity and Inclusion Act is amended by changing Section 40-10 as follows:

(30 ILCS 574/40-10)

Sec. 40-10. Powers and duties. In addition to the other powers and duties which may be prescribed in this Act or elsewhere, the Commission shall have the following powers and duties:

(1) The Commission shall have a role in all State and university procurement by facilitating and streamlining communications between the Business Enterprise Council for Minorities, Women, and Persons with Disabilities, the purchasing entities, the Chief Procurement Officers, and others.

(2) The Commission may create a scoring evaluation for State agency directors, public university presidents and chancellors, and public community college presidents. The scoring shall be based on the following 3 principles: (i) increasing capacity; (ii) growing revenue; and (iii) enhancing credentials. These principles should be the foundation of the agency compliance plan required under Section 6 of the Business Enterprise for Minorities, Women, and Persons with Disabilities Act.

(3) The Commission shall exercise the authority and duties provided to it under Section 5-7 of the Illinois Procurement Code.

(4) The Commission shall shall exercise the authority and duties provided to it under Section 2.39.5 of the Northern Illinois Transit Authority.

(4) The Commission, working with State agencies, shall provide support for diversity in State hiring.

(5) The Commission shall supervise the implementation and effectiveness of supplier diversity training of the State procurement workforce.

(6) Each January, and as otherwise frequently as may be deemed necessary and appropriate by the Commission, the Commission shall propose and submit to the Governor and the General Assembly legislative changes to increase inclusion and diversity in State government.

(7) The Commission shall have oversight over the following entities:

(A) the Illinois African-American Family Commission;

(B) the Illinois Latino Family Commission;

(C) the Asian American Family Commission;

(D) the Illinois Muslim American Advisory Council;

(E) the Illinois African-American Fair Contracting Commission created under Executive Order 2018-07; and

(F) the Business Enterprise Council for Minorities, Women, and Persons with Disabilities.

(7.5) The Commission shall have oversight over the collection of supplier diversity reports by State agencies to the extent that those agencies are required to collect supplier diversity reports. This oversight shall include publishing, on the Commission's website, a copy of each such supplier diversity report submitted to a State agency and may include conducting an annual hearing with each State agency to discuss ongoing compliance with supplier diversity reporting requirements. The Commission is not responsible for ensuring compliance by the filers of supplier diversity reports to their respective agencies. The agencies subject to oversight by the Commission and the relevant voluntary supplier diversity reports include the following:

(A) the Health Facilities and Services Review Board for hospitals;

(B) the Department of Commerce and Economic Opportunity for tax credit recipients under the Economic Development for a Growing Economy Tax Credit Act;

(C) the Illinois Commerce Commission for utilities and railroads;

(D) the Illinois Gaming Board for casinos; and

(E) the Illinois Racing Board for race tracks.

(7.6) The Commission may hold public workshops focused on specific industries and reports to collaboratively connect diverse enterprises with entities that manage supplier diversity programs. These workshops may be modeled after Illinois Commerce Commission hearings for utilities and railroads that include a collaborative discussion of filed supplier diversity reports.

(8) The Commission shall adopt any rules necessary for the implementation and administration of the requirements of this Act.

(9) The Commission shall exercise the authority and duties provided to it under Section 45-57 of the Illinois Procurement Code.

(10) The Commission is responsible for completing studies as required by Section 35-15 of the Illinois Community Reinvestment Act.

(Source: P.A. 103-865, eff. 1-1-25; 103-959, eff. 1-1-25; 103-961, eff. 7-1-25; 104-417, eff. 8-15-25.)

Section 10. The Regional Transportation Authority Act is amended by adding Section 2.39.5 as follows:

(70 ILCS 3615/2.39.5 new)

Sec. 2.39.5. Veterans set-aside program.

(a) As used in this Section:

"Armed forces of the United States" means the United States Army, Navy, Air Force, Space Force, Marine Corps, Coast Guard, or service in active duty as defined under 38 U.S.C. Section 101. Service in the Merchant Marine that constitutes active duty under Section 401 of federal Public Law 95-202 shall also be considered service in the armed forces for purposes of this Section.

"Authority contract" means any contract or subcontract with the Authority or one of the Service Boards.

"Certification" means a determination made by the Illinois Department of Veterans Affairs and the Commission on Equity and Inclusion that a business entity is a qualified service-disabled veteran-owned small business or a qualified veteran-owned small business for whatever purpose. A qualified service-disabled veteran-owned small business or a qualified veteran-owned small business owned and controlled by women, minorities, or persons with disabilities, as those terms are defined in Section 2 of the Business Enterprise for Minorities, Women, and Persons with Disabilities Act, may also select and designate whether that business is to be certified as a "women-owned business", "minority-owned business", or "business owned by a person with a disability", as defined in Section 2 of the Business Enterprise for Minorities, Women, and Persons with Disabilities Act.

"Control" means the exclusive, ultimate, majority, or sole control of the business, including but not limited to capital investment and all other financial matters, property, acquisitions, contract negotiations, legal matters, officer-director-employee selection and comprehensive hiring, operation responsibilities, cost-control matters, income and dividend matters, financial transactions, and rights of other shareholders or joint partners. Control shall be real, substantial, and continuing, not pro forma. Control shall include the power to direct or cause the direction of the management and policies of the business and to make the day-to-day as well as major decisions in matters of policy, management, and operations. Control shall be exemplified by possessing the requisite knowledge and expertise to run the particular business, and control shall not include simple majority or absentee ownership.

"Qualified service-disabled veteran" means a veteran who has been found to have 10% or more service-connected disability by the United States Department of Veterans Affairs or the United States Department of Defense.

"Qualified service-disabled veteran-owned small business" means a small business (i) that is at least 51% owned by one or more qualified service-disabled veterans living in Illinois or, in the case of a corporation, at least 51% of the stock of which is owned by one or more qualified service-disabled veterans living in Illinois; (ii) that has its home office in Illinois; and (iii) for which items (i) and (ii) are factually verified annually by the Commission on Equity and Inclusion.

"Qualified veteran-owned small business" means a small business (i) that is at least 51% owned by one or more qualified veterans living in Illinois or, in the case of a corporation, at least 51% of the stock of which is owned by one or more qualified veterans living in Illinois; (ii) that has its home office in Illinois; and (iii) for which items (i) and (ii) are factually verified annually by the Commission on Equity and Inclusion.

"Service-connected disability" means a disability incurred in the line of duty in the active military, naval, or air service as described in 38 U.S.C. 101(16).

"Small business" means a business that has annual gross sales of less than $150,000,000 as evidenced by the federal income tax return of the business. A firm with gross sales in excess of this cap may apply to the Commission on Equity and Inclusion for certification for a particular contract if the firm can demonstrate that the contract would have significant impact on qualified service-disabled veteran-owned small businesses or qualified veteran-owned small businesses as suppliers or subcontractors or in employment of veterans or service-disabled veterans.

"Time of hostilities with a foreign country" means any period of time in the past, present, or future during which a declaration of war by the United States Congress has been or is in effect or during which an emergency condition has been or is in effect that is recognized by the issuance of a Presidential proclamation or a Presidential executive order and in which the armed forces expeditionary medal or other campaign service medals are awarded according to Presidential executive order.

"Veteran" means a person who (i) has been a member of the armed forces of the United States or, while a citizen of the United States, was a member of the armed forces of allies of the United States in time of hostilities with a foreign country and (ii) has served under one or more of the following conditions: (a) the veteran served a total of at least 6 months; (b) the veteran served for the duration of hostilities regardless of the length of the engagement; (c) the veteran was discharged on the basis of hardship; or (d) the veteran was released from active duty because of a service connected disability and was discharged under honorable conditions.

(b) The Authority shall establish a goal to award not less than 3% of the total dollar amount of all Authority contracts to qualified service-disabled veteran-owned small businesses and qualified veteran-owned small businesses. That portion of a contract under which the contractor subcontracts with a qualified service-disabled veteran-owned small business or a qualified veteran-owned small business may be counted toward the goal of this subsection. The Authority shall, by ordinance, adopt requirements to implement compliance with this subsection.

(c) By each March 1, the Board shall report to the Governor and General Assembly:

(1) the total number of qualified veteran-owned small businesses that submitted bids for contracts with the Authority and the total number of qualified service-disabled veteran-owned small businesses in the immediately preceding fiscal year;

(2) the total number of qualified veteran-owned small businesses, and qualified service-disabled veteran-owned small businesses, that entered into contracts with the Authority in the immediately preceding fiscal year;

(3) a year-by-year comparison of awarded contracts to certified veteran-owned small businesses and service-disabled veteran-owned small businesses; and

(4) any other information that the Board deems necessary to assist veteran-owned small businesses and service-disabled veteran-owned small businesses to become certified with the State.

(d) Each year, the Board shall review the progress of the Authority and the Service Boards in meeting the goal described in subsection (b), with input from statewide veterans' service organizations and from the business community, including businesses owned by qualified veterans, and shall make recommendations to the General Assembly regarding continuation, increases, or decreases of the percentage goal. The recommendations shall be based upon the number of businesses that are owned by qualified veterans and on the continued need to encourage and promote businesses owned by qualified veterans.

(e) To assist the Authority in reaching the goal described in subsection (b), the Governor shall recommend to the General Assembly changes in programs to assist businesses owned by qualified veterans.

(f) The Illinois Department of Veterans Affairs and the Commission on Equity and Inclusion shall work together to devise a certification procedure to assure that businesses taking advantage of this Section are legitimately classified as qualified service-disabled veteran-owned small businesses or qualified veteran-owned small businesses.

The Commission on Equity and Inclusion shall:

(1) compile and maintain a comprehensive list of certified veteran-owned small businesses and service-disabled veteran-owned small businesses;

(2) assist veteran-owned small businesses and service-disabled veteran-owned small businesses in complying with the procedures for bidding on Authority contracts;

(3) provide training for the Authority and the Service Boards regarding the goal setting process and compliance with veteran-owned small business and service-disabled veteran-owned small business goals; and

(4) implement and maintain an electronic portal on the Commission on Equity and Inclusion's website for the purpose of completing and submitting veteran-owned small business and service-disabled veteran-owned small business certificates.

(g) A business shall be certified by the Commission on Equity and Inclusion as a service-disabled veteran-owned small business or a veteran-owned small business for purposes of this Section if the Commission on Equity and Inclusion determines that the business has been certified as a service-disabled veteran-owned small business or a veteran-owned small business by the Vets First Verification Program of the United States Department of Veterans Affairs, and the business has provided to the Commission on Equity and Inclusion the following:

(1) documentation showing certification as a service-disabled veteran-owned small business or a veteran-owned small business by the Vets First Verification Program of the United States Department of Veterans Affairs;

(2) proof that the business has its home office in Illinois; and

(3) proof that the qualified veterans or qualified service-disabled veterans live in the State.

The policies of the Commission on Equity and Inclusion regarding recognition of the Vets First Verification Program of the United States Department of Veterans Affairs shall be reviewed annually by the Commission on Equity and Inclusion, and recognition of service-disabled veteran-owned small businesses and veteran-owned small businesses certified by the Vets First Verification Program of the United States Department of Veterans Affairs may be discontinued by the Commission on Equity and Inclusion by rule upon a finding that the certification standards of the Vets First Verification Program of the United States Department of Veterans Affairs do not meet the certification requirements established by the Commission on Equity and Inclusion.

(h) The Board shall suspend any person who commits a violation of Section 17-10.3 or subsection (d) of Section 33E-6 of the Criminal Code of 2012 relating to this Section from bidding on, or participating as a contractor, subcontractor, or supplier in, any Authority contract or project for a period of not less than 3 years, and, if the person is certified as a service-disabled veteran-owned small business or a veteran-owned small business, then the Commission on Equity and Inclusion shall revoke the business's certification for a period of not less than 3 years. An additional or subsequent violation shall extend the periods of suspension and revocation for a period of not less than 5 years. The suspension and revocation shall apply to the principals of the business and any subsequent business formed or financed by, or affiliated with, those principals.

(i) The Board shall report all alleged violations of Section 17-10.3 or subsection (d) of Section 33E-6 of the Criminal Code of 2012 relating to this Section to the Attorney General, who shall determine whether to bring a civil action against any person for the violation.

(j) The Board shall monitor the status of all reported violations of Section 17-10.3 or subsection (d) of Section 33E-6 of the Criminal Code of 1961 or the Criminal Code of 2012 relating to this Section.

(k) During the period of a person's suspension under subsection (i), the Board shall not enter into any contract with that person or with any contractor using the services of that person as a subcontractor.