102ND GENERAL ASSEMBLY
State of Illinois
2021 and 2022
HB3220

 

Introduced 2/19/2021, by Rep. Curtis J. Tarver, II

 

SYNOPSIS AS INTRODUCED:
 
30 ILCS 575/2
30 ILCS 575/3.5 new
30 ILCS 575/7  from Ch. 127, par. 132.607
30 ILCS 575/8  from Ch. 127, par. 132.608

    Amends the Business Enterprise for Minorities, Women, and Persons with Disabilities Act. Defines "good faith effort" for purposes of the Act. Provides factors for determining whether a good faith effort has been made for purposes of granting a waiver under the Act. Provides for a uniform standard of contract goals for State agencies, public institutions of higher education, and other departments. Specifies further requirements concerning the uniform standard of contract goals. Provides that the terms of every contract entered into by a State agency or public institution of higher education for purposes of the Act shall include a provision requiring vendors who fail to comply with a utilization plan to return all funds paid to that vendor with an expectation of compliance. Provides that the Business Enterprise Council may (rather than shall) grant a waiver under specified circumstances. Makes conforming changes.


LRB102 15164 RJF 20519 b

 

 

A BILL FOR

 

HB3220LRB102 15164 RJF 20519 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 Business Enterprise for Minorities, Women,
5and Persons with Disabilities Act is amended by changing
6Sections 2, 7, and 8 and by adding Section 3.5 as follows:
 
7    (30 ILCS 575/2)
8    (Section scheduled to be repealed on June 30, 2024)
9    Sec. 2. Definitions.
10    (A) For the purpose of this Act, the following terms shall
11have the following definitions:
12        (1) "Minority person" shall mean a person who is a
13    citizen or lawful permanent resident of the United States
14    and who is any of the following:
15            (a) American Indian or Alaska Native (a person
16        having origins in any of the original peoples of North
17        and South America, including Central America, and who
18        maintains tribal affiliation or community attachment).
19            (b) Asian (a person having origins in any of the
20        original peoples of the Far East, Southeast Asia, or
21        the Indian subcontinent, including, but not limited
22        to, Cambodia, China, India, Japan, Korea, Malaysia,
23        Pakistan, the Philippine Islands, Thailand, and

 

 

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1        Vietnam).
2            (c) Black or African American (a person having
3        origins in any of the black racial groups of Africa).
4            (d) Hispanic or Latino (a person of Cuban,
5        Mexican, Puerto Rican, South or Central American, or
6        other Spanish culture or origin, regardless of race).
7            (e) Native Hawaiian or Other Pacific Islander (a
8        person having origins in any of the original peoples
9        of Hawaii, Guam, Samoa, or other Pacific Islands).
10        (2) "Woman" shall mean a person who is a citizen or
11    lawful permanent resident of the United States and who is
12    of the female gender.
13        (2.05) "Person with a disability" means a person who
14    is a citizen or lawful resident of the United States and is
15    a person qualifying as a person with a disability under
16    subdivision (2.1) of this subsection (A).
17        (2.1) "Person with a disability" means a person with a
18    severe physical or mental disability that:
19            (a) results from:
20            amputation,
21            arthritis,
22            autism,
23            blindness,
24            burn injury,
25            cancer,
26            cerebral palsy,

 

 

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1            Crohn's disease,
2            cystic fibrosis,
3            deafness,
4            head injury,
5            heart disease,
6            hemiplegia,
7            hemophilia,
8            respiratory or pulmonary dysfunction,
9            an intellectual disability,
10            mental illness,
11            multiple sclerosis,
12            muscular dystrophy,
13            musculoskeletal disorders,
14            neurological disorders, including stroke and
15        epilepsy,
16            paraplegia,
17            quadriplegia and other spinal cord conditions,
18            sickle cell anemia,
19            ulcerative colitis,
20            specific learning disabilities, or
21            end stage renal failure disease; and
22            (b) substantially limits one or more of the
23        person's major life activities.
24        Another disability or combination of disabilities may
25    also be considered as a severe disability for the purposes
26    of item (a) of this subdivision (2.1) if it is determined

 

 

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1    by an evaluation of rehabilitation potential to cause a
2    comparable degree of substantial functional limitation
3    similar to the specific list of disabilities listed in
4    item (a) of this subdivision (2.1).
5        (3) "Minority-owned business" means a business which
6    is at least 51% owned by one or more minority persons, or
7    in the case of a corporation, at least 51% of the stock in
8    which is owned by one or more minority persons; and the
9    management and daily business operations of which are
10    controlled by one or more of the minority individuals who
11    own it.
12        (4) "Women-owned business" means a business which is
13    at least 51% owned by one or more women, or, in the case of
14    a corporation, at least 51% of the stock in which is owned
15    by one or more women; and the management and daily
16    business operations of which are controlled by one or more
17    of the women who own it.
18        (4.1) "Business owned by a person with a disability"
19    means a business that is at least 51% owned by one or more
20    persons with a disability and the management and daily
21    business operations of which are controlled by one or more
22    of the persons with disabilities who own it. A
23    not-for-profit agency for persons with disabilities that
24    is exempt from taxation under Section 501 of the Internal
25    Revenue Code of 1986 is also considered a "business owned
26    by a person with a disability".

 

 

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1        (4.2) "Council" means the Business Enterprise Council
2    for Minorities, Women, and Persons with Disabilities
3    created under Section 5 of this Act.
4        (5) "State contracts" means all contracts entered into
5    by the State, any agency or department thereof, or any
6    public institution of higher education, including
7    community college districts, regardless of the source of
8    the funds with which the contracts are paid, which are not
9    subject to federal reimbursement. "State contracts" does
10    not include contracts awarded by a retirement system,
11    pension fund, or investment board subject to Section
12    1-109.1 of the Illinois Pension Code. This definition
13    shall control over any existing definition under this Act
14    or applicable administrative rule.
15        "State construction contracts" means all State
16    contracts entered into by a State agency or public
17    institution of higher education for the repair,
18    remodeling, renovation or construction of a building or
19    structure, or for the construction or maintenance of a
20    highway defined in Article 2 of the Illinois Highway Code.
21        (6) "State agencies" shall mean all departments,
22    officers, boards, commissions, institutions and bodies
23    politic and corporate of the State, but does not include
24    the Board of Trustees of the University of Illinois, the
25    Board of Trustees of Southern Illinois University, the
26    Board of Trustees of Chicago State University, the Board

 

 

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1    of Trustees of Eastern Illinois University, the Board of
2    Trustees of Governors State University, the Board of
3    Trustees of Illinois State University, the Board of
4    Trustees of Northeastern Illinois University, the Board of
5    Trustees of Northern Illinois University, the Board of
6    Trustees of Western Illinois University, municipalities or
7    other local governmental units, or other State
8    constitutional officers.
9        (7) "Public institutions of higher education" means
10    the University of Illinois, Southern Illinois University,
11    Chicago State University, Eastern Illinois University,
12    Governors State University, Illinois State University,
13    Northeastern Illinois University, Northern Illinois
14    University, Western Illinois University, the public
15    community colleges of the State, and any other public
16    universities, colleges, and community colleges now or
17    hereafter established or authorized by the General
18    Assembly.
19        (8) "Certification" means a determination made by the
20    Council or by one delegated authority from the Council to
21    make certifications, or by a State agency with statutory
22    authority to make such a certification, that a business
23    entity is a business owned by a minority, woman, or person
24    with a disability for whatever purpose. A business owned
25    and controlled by women shall be certified as a
26    "woman-owned business". A business owned and controlled by

 

 

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

 

 

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1    persons with disabilities as suppliers or subcontractors
2    or in employment of minorities, women, or persons with
3    disabilities.
4        (11) "Utilization plan" means a form and additional
5    documentations included in all bids or proposals that
6    demonstrates a vendor's proposed utilization of vendors
7    certified by the Business Enterprise Program to meet the
8    targeted goal. The utilization plan shall demonstrate that
9    the Vendor has either: (1) met the entire contract goal or
10    (2) requested a full or partial waiver, which may be
11    granted upon showing and made good faith efforts towards
12    meeting the goal.
13        (12) "Business Enterprise Program" means the Business
14    Enterprise Program of the Department of Central Management
15    Services.
16        (13) "Good faith effort" means that a contractor has
17    taken all necessary steps to comply with the goals for
18    participation by businesses owned by minorities, women,
19    and persons with disabilities as provided under this Act.
20    In determining whether a good faith effort has been made
21    for purposes of granting a waiver under this Act, the
22    Council shall consider all of the following factors:
23            (a) Soliciting through reasonable and available
24        means the interest of businesses certified under this
25        Act that have the capability to perform the work of the
26        contract. The contractor must solicit this interest

 

 

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1        within sufficient time to allow certified businesses
2        to respond. The contractor must take appropriate steps
3        to follow up initial solicitations with interested
4        certified businesses.
5            (b) Providing interested certified businesses with
6        adequate information about the plans, specifications,
7        and requirements of the contract, including addenda,
8        in a timely manner to assist them in responding to the
9        solicitation.
10            (c) Negotiating in good faith with interested
11        certified businesses that have submitted bids.
12        Documentation of negotiation must include the names,
13        addresses, and telephone numbers of certified
14        businesses that were solicited; the date of each such
15        solicitation; a description of the information
16        provided regarding the plans and specifications for
17        the work selected for subcontracting; and evidence as
18        to why agreements could not be reached with certified
19        businesses to perform the work. That there may be some
20        additional costs involved in soliciting and using
21        certified businesses is not a sufficient reason for a
22        contractor's failure to meet the goals, as long as
23        such costs are reasonable.
24            (d) Not rejecting certified businesses as being
25        unqualified without sound reasons based on a thorough
26        investigation of their capabilities. The certified

 

 

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1        business' standing within its industry, membership in
2        specific groups, organizations, or associations, and
3        political or social affiliations are not legitimate
4        causes for rejecting or not soliciting bids to meet
5        the goals.
6            (e) Making a portion of the work available to
7        certified business subcontractors and suppliers and
8        selecting the portions of the work or material
9        consistent with the available certified business
10        subcontractors and suppliers, so as to facilitate
11        meeting the goals.
12            (f) Making good faith efforts to utilize certified
13        businesses, despite the ability or desire of a
14        contractor to perform the work of a contract with its
15        own organization. A contractor who desires to
16        self-perform the work of a contract must demonstrate
17        good faith efforts unless the goals have been met.
18            (g) Selecting portions of the work to be performed
19        by certified businesses in order to increase the
20        likelihood that the goals will be met. This includes,
21        when appropriate, breaking out contract work items
22        into economically feasible units to facilitate
23        certified business participation, even when the
24        contractor might otherwise prefer to perform these
25        work items with its own forces.
26            (h) Making efforts to assist interested certified

 

 

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1        businesses in obtaining any required bonding, lines of
2        credit, or insurance.
3            (i) Making efforts to assist interested certified
4        businesses in obtaining necessary equipment, supplies,
5        materials, or related assistance or services.
6            (j) Effectively using the services of the State;
7        minority or women community organizations; minority or
8        women contractors' groups; local, state, and federal
9        minority or women business assistance offices; and
10        other organizations to provide assistance in the
11        recruitment and placement of certified businesses.
12            (k) Affected by State or local action that caused
13        the shortfall, such as a change in the scope of work
14        that eliminated certified business budget line items,
15        or an increase in the scope of work covered by line
16        items being performed by non-certified business
17        contractors, or a change in specifications.
18            (l) Unable to obtain certified business
19        participation without requiring the introduction of
20        extra participants not performing a commercially
21        useful function.
22            (m) Making efforts to utilize appropriate forums
23        for purposes of advertising subcontracting
24        opportunities suitable for certified businesses.
25    (B) When a business is owned at least 51% by any
26combination of minority persons, women, or persons with

 

 

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1disabilities, even though none of the 3 classes alone holds at
2least a 51% interest, the ownership requirement for purposes
3of this Act is considered to be met. The certification
4category for the business is that of the class holding the
5largest ownership interest in the business. If 2 or more
6classes have equal ownership interests, the certification
7category shall be determined by the business.
8(Source: P.A. 100-391, eff. 8-25-17; 101-601, eff. 1-1-20.)
 
9    (30 ILCS 575/3.5 new)
10    Sec. 3.5. Uniform standard of contract goals.
11    (a) There shall be established across all State agencies,
12all public institutions of higher education, and all
13departments, a uniform contract goal standard.
14    (b) No State agency, public institution of higher
15education, or department shall maintain a policy of awarding
16State contracts to minorities, women, and persons with a
17disability that does not conform to or is less stringent than
18the contract goals set forth under this Act.
19    (c) Each State agency, public institution of higher
20education, and department subject to the requirements of this
21Act shall, on an annual basis, submit a report to the Council
22detailing its plan to meet the contract goals established
23under this Act and established for that agency, institution,
24or department.
25    (d) Any State agency, public institution of higher

 

 

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1education, or department failing to meet its proposed goals
2shall have its budgetary funding automatically reduced by a
3percentage equivalent to the difference between the proposed
4goal and what it actually achieved.
 
5    (30 ILCS 575/7)  (from Ch. 127, par. 132.607)
6    (Section scheduled to be repealed on June 30, 2024)
7    Sec. 7. Exemptions; waivers; publication of data.
8    (1) Individual contract exemptions. The Council, at the
9written request of the affected agency, public institution of
10higher education, or recipient of a grant or loan of State
11funds of $250,000 or more complying with Section 45 of the
12State Finance Act, may permit an individual contract or
13contract package, (related contracts being bid or awarded
14simultaneously for the same project or improvements) be made
15wholly or partially exempt from State contracting goals for
16businesses owned by minorities, women, and persons with
17disabilities prior to the advertisement for bids or
18solicitation of proposals whenever there has been a
19determination, reduced to writing and based on the best
20information available at the time of the determination, that
21there is an insufficient number of businesses owned by
22minorities, women, and persons with disabilities to ensure
23adequate competition and an expectation of reasonable prices
24on bids or proposals solicited for the individual contract or
25contract package in question. Any such exemptions shall be

 

 

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1given by the Council to the Bureau on Apprenticeship Programs.
2        (a) Written request for contract exemption. A written
3    request for an individual contract exemption must include,
4    but is not limited to, the following:
5            (i) a list of eligible businesses owned by
6        minorities, women, and persons with disabilities;
7            (ii) a clear demonstration that the number of
8        eligible businesses identified in subparagraph (i)
9        above is insufficient to ensure adequate competition;
10            (iii) the difference in cost between the contract
11        proposals being offered by businesses owned by
12        minorities, women, and persons with disabilities and
13        the agency or public institution of higher education's
14        expectations of reasonable prices on bids or proposals
15        within that class; and
16            (iv) a list of eligible businesses owned by
17        minorities, women, and persons with disabilities that
18        the contractor has used in the current and prior
19        fiscal years.
20        (b) Determination. The Council's determination
21    concerning an individual contract exemption must consider,
22    at a minimum, the following:
23            (i) the justification for the requested exemption,
24        including whether diligent efforts were undertaken to
25        identify and solicit eligible businesses owned by
26        minorities, women, and persons with disabilities;

 

 

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1            (ii) the total number of exemptions granted to the
2        affected agency, public institution of higher
3        education, or recipient of a grant or loan of State
4        funds of $250,000 or more complying with Section 45 of
5        the State Finance Act that have been granted by the
6        Council in the current and prior fiscal years; and
7            (iii) the percentage of contracts awarded by the
8        agency or public institution of higher education to
9        eligible businesses owned by minorities, women, and
10        persons with disabilities in the current and prior
11        fiscal years.
12    (2) Class exemptions.
13        (a) Creation. The Council, at the written request of
14    the affected agency or public institution of higher
15    education, may permit an entire class of contracts be made
16    exempt from State contracting goals for businesses owned
17    by minorities, women, and persons with disabilities
18    whenever there has been a determination, reduced to
19    writing and based on the best information available at the
20    time of the determination, that there is an insufficient
21    number of qualified businesses owned by minorities, women,
22    and persons with disabilities to ensure adequate
23    competition and an expectation of reasonable prices on
24    bids or proposals within that class. Any such exemption
25    shall be given by the Council to the Bureau on
26    Apprenticeship Programs.

 

 

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1        (a-1) Written request for class exemption. A written
2    request for a class exemption must include, but is not
3    limited to, the following:
4            (i) a list of eligible businesses owned by
5        minorities, women, and persons with disabilities;
6            (ii) a clear demonstration that the number of
7        eligible businesses identified in subparagraph (i)
8        above is insufficient to ensure adequate competition;
9            (iii) the difference in cost between the contract
10        proposals being offered by eligible businesses owned
11        by minorities, women, and persons with disabilities
12        and the agency or public institution of higher
13        education's expectations of reasonable prices on bids
14        or proposals within that class; and
15            (iv) the number of class exemptions the affected
16        agency or public institution of higher education
17        requested in the current and prior fiscal years.
18        (a-2) Determination. The Council's determination
19    concerning class exemptions must consider, at a minimum,
20    the following:
21            (i) the justification for the requested exemption,
22        including whether diligent efforts were undertaken to
23        identify and solicit eligible businesses owned by
24        minorities, women, and persons with disabilities;
25            (ii) the total number of class exemptions granted
26        to the requesting agency or public institution of

 

 

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1        higher education that have been granted by the Council
2        in the current and prior fiscal years; and
3            (iii) the percentage of contracts awarded by the
4        agency or public institution of higher education to
5        eligible businesses owned by minorities, women, and
6        persons with disabilities the current and prior fiscal
7        years.
8        (b) Limitation. Any such class exemption shall not be
9    permitted for a period of more than one year at a time.
10    (3) Waivers. Where a particular contract requires a
11contractor to meet a goal established pursuant to this Act,
12the contractor shall have the right to request a waiver from
13such requirements. The Council may shall grant the waiver
14where the contractor demonstrates that there has been made a
15good faith effort to comply with the goals for participation
16by businesses owned by minorities, women, and persons with
17disabilities. Any such waiver may shall also be transmitted in
18writing to the Bureau on Apprenticeship Programs.
19        (a) Request for waiver. A contractor's request for a
20    waiver under this subsection (3) must include, but is not
21    limited to, the following, if available:
22            (i) a list of eligible businesses owned by
23        minorities, women, and persons with disabilities that
24        pertain to the class of contracts in the requested
25        waiver;
26            (ii) a clear demonstration that the number of

 

 

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1        eligible businesses identified in subparagraph (i)
2        above is insufficient to ensure competition;
3            (iii) the difference in cost between the contract
4        proposals being offered by businesses owned by
5        minorities, women, and persons with disabilities and
6        the agency or the public institution of higher
7        education's expectations of reasonable prices on bids
8        or proposals within that class; and
9            (iv) a list of businesses owned by minorities,
10        women, and persons with disabilities that the
11        contractor has used in the current and prior fiscal
12        years.
13        (b) Determination. The Council's determination
14    concerning waivers must include following:
15            (i) the justification for the requested waiver,
16        including whether the requesting contractor made a
17        good faith effort to identify and solicit eligible
18        businesses owned by minorities, women, and persons
19        with disabilities;
20            (ii) the total number of waivers the contractor
21        has been granted by the Council in the current and
22        prior fiscal years;
23            (iii) the percentage of contracts awarded by the
24        agency or public institution of higher education to
25        eligible businesses owned by minorities, women, and
26        persons with disabilities in the current and prior

 

 

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1        fiscal years; and
2            (iv) the contractor's use of businesses owned by
3        minorities, women, and persons with disabilities in
4        the current and prior fiscal years.
5    (3.5) (Blank).
6    (4) Conflict with other laws. In the event that any State
7contract, which otherwise would be subject to the provisions
8of this Act, is or becomes subject to federal laws or
9regulations which conflict with the provisions of this Act or
10actions of the State taken pursuant hereto, the provisions of
11the federal laws or regulations shall apply and the contract
12shall be interpreted and enforced accordingly.
13    (5) Each chief procurement officer, as defined in the
14Illinois Procurement Code, shall maintain on his or her
15official Internet website a database of the following: (i)
16waivers granted under this Section with respect to contracts
17under his or her jurisdiction; (ii) a State agency or public
18institution of higher education's written request for an
19exemption of an individual contract or an entire class of
20contracts; and (iii) the Council's written determination
21granting or denying a request for an exemption of an
22individual contract or an entire class of contracts. The
23database, which shall be updated periodically as necessary,
24shall be searchable by contractor name and by contracting
25State agency.
26    (6) Each chief procurement officer, as defined by the

 

 

HB3220- 20 -LRB102 15164 RJF 20519 b

1Illinois Procurement Code, shall maintain on its website a
2list of all firms that have been prohibited from bidding,
3offering, or entering into a contract with the State of
4Illinois as a result of violations of this Act.
5    Each public notice required by law of the award of a State
6contract shall include for each bid or offer submitted for
7that contract the following: (i) the bidder's or offeror's
8name, (ii) the bid amount, (iii) the name or names of the
9certified firms identified in the bidder's or offeror's
10submitted utilization plan, and (iv) the bid's amount and
11percentage of the contract awarded to businesses owned by
12minorities, women, and persons with disabilities identified in
13the utilization plan.
14(Source: P.A. 100-391, eff. 8-25-17; 101-170, eff. 1-1-20;
15101-601, eff. 1-1-20.)
 
16    (30 ILCS 575/8)  (from Ch. 127, par. 132.608)
17    (Section scheduled to be repealed on June 30, 2024)
18    Sec. 8. Enforcement.
19    (1) The Council shall make such findings, recommendations
20and proposals to the Governor as are necessary and appropriate
21to enforce this Act. If, as a result of its monitoring
22activities, the Council determines that its goals and policies
23are not being met by any State agency or public institution of
24higher education, the Council may recommend any or all of the
25following actions:

 

 

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1        (a) Establish enforcement procedures whereby the
2    Council may recommend to the appropriate State agency,
3    public institutions of higher education, or law
4    enforcement officer that legal or administrative remedies
5    be initiated for violations of contract provisions or
6    rules issued hereunder or by a contracting State agency or
7    public institutions of higher education. State agencies
8    and public institutions of higher education shall be
9    authorized to adopt remedies for such violations which
10    shall include (1) termination of the contract involved,
11    (2) prohibition of participation of the respondents in
12    public contracts for a period not to exceed one year, (3)
13    imposition of a penalty not to exceed any profit acquired
14    as a result of violation, or (4) any combination thereof.
15        (b) If the Council concludes that a compliance plan
16    submitted under Section 6 is unlikely to produce the
17    participation goals for businesses owned by minorities,
18    women, and persons with disabilities within the then
19    current fiscal year, the Council may recommend that the
20    State agency or public institution of higher education
21    revise its plan to provide additional opportunities for
22    participation by businesses owned by minorities, women,
23    and persons with disabilities. Such recommended revisions
24    may include, but shall not be limited to, the following:
25            (i) assurances of stronger and better focused
26        solicitation efforts to obtain more businesses owned

 

 

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1        by minorities, women, and persons with disabilities as
2        potential sources of supply;
3            (ii) division of job or project requirements, when
4        economically feasible, into tasks or quantities to
5        permit participation of businesses owned by
6        minorities, women, and persons with disabilities;
7            (iii) elimination of extended experience or
8        capitalization requirements, when programmatically
9        feasible, to permit participation of businesses owned
10        by minorities, women, and persons with disabilities;
11            (iv) identification of specific proposed contracts
12        as particularly attractive or appropriate for
13        participation by businesses owned by minorities,
14        women, and persons with disabilities, such
15        identification to result from and be coupled with the
16        efforts of subparagraphs (i) through (iii);
17            (v) implementation of those regulations
18        established for the use of the sheltered market
19        process.
20    (2) State agencies and public institutions of higher
21education shall review a vendor's compliance with its
22utilization plan and the terms of its contract. The terms of
23every contract entered into by a State agency or public
24institution of higher education for the purposes of this Act
25shall include a provision requiring vendors who fail to comply
26with a utilization plan to return all funds paid to that vendor

 

 

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1with an expectation of compliance. Without limitation, a
2vendor's failure to comply with its contractual commitments as
3contained in the utilization plan; failure to cooperate in
4providing information regarding its compliance with its
5utilization plan; or the provision of false or misleading
6information or statements concerning compliance, certification
7status, or eligibility of the Business Enterprise
8Program-certified vendor, good faith efforts, or any other
9material fact or representation shall constitute a material
10breach of the contract and entitle the State agency or public
11institution of higher education to declare a default,
12terminate the contract, or exercise those remedies provided
13for in the contract, at law, or in equity, including the return
14of any funds paid to the vendor.
15    (3) A vendor shall be in breach of the contract and may be
16subject to penalties for failure to meet contract goals
17established under this Act, unless the vendor can show that it
18made good faith efforts to meet the contract goals.
19(Source: P.A. 99-462, eff. 8-25-15; 100-391, eff. 8-25-17.)