SB3469 102ND GENERAL ASSEMBLY

LRB102 22621 RJF 31764 b

102ND GENERAL ASSEMBLY
State of Illinois
2021 and 2022
SB3469

Introduced 1/19/2022, by Sen. Robert Peters

SYNOPSIS AS INTRODUCED:

See Index

Provides that the Act may be referred to as the Second Chance State Contracts Act. Amends the Illinois Procurement Code. Creates the Second Chance State Contracts Apprenticeship and Preapprenticeship Program Article. Provides public works contracts hiring requirements. Provides for waivers from public works contracts hiring requirements. Provides for the issuance of certificates of arrest or conviction. Provides reporting and funding provisions concerning public works contracts hiring requirements and apprenticeship programs. Provides for standing to enforce the requirements of the Article. Requires that inmates whose labor is used in the remodeling or rehabilitation of correctional facilities be paid the prevailing wage for work of a similar character. Repeals provisions prohibiting convicted felons from specified activities under the Code. Amends the Business Enterprise for Minorities, Women, and Persons with Disabilities Act. Defines "person with a disability" for purposes of the Act to include a person who is a citizen or lawful permanent resident of the United States and a resident of the State of Illinois who has been arrested for committing a felony or convicted of a felony by any court of competent jurisdiction sitting in the United States or any territory of the United States. Defines other terms. Makes conforming changes. Effective immediately.

A BILL FOR

AN ACT concerning finance.

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

Section 1. This Act may be referred to as the Second Chance State Contracts Act.

Section 5. The Illinois Procurement Code is amended by changing Sections 1-10, 1-13, 1-35, 1-40, 30-15, and 50-60 and by adding Article 34 as follows:

(30 ILCS 500/1-10)

Sec. 1-10. Application.

(a) This Code applies only to procurements for which bidders, offerors, potential contractors, or contractors were first solicited on or after July 1, 1998. This Code shall not be construed to affect or impair any contract, or any provision of a contract, entered into based on a solicitation prior to the implementation date of this Code as described in Article 99, including, but not limited to, any covenant entered into with respect to any revenue bonds or similar instruments. All procurements for which contracts are solicited between the effective date of Articles 50 and 99 and July 1, 1998 shall be substantially in accordance with this Code and its intent.

(b) This Code shall apply regardless of the source of the funds with which the contracts are paid, including federal assistance moneys. This Code shall not apply to:

(1) Contracts between the State and its political subdivisions or other governments, or between State governmental bodies, except as specifically provided in this Code.

(2) Grants, except for the filing requirements of Section 20-80.

(3) Purchase of care, except as provided in Section 5-30.6 of the Illinois Public Aid Code and this Section.

(4) Hiring of an individual as an employee and not as an independent contractor, whether pursuant to an employment code or policy or by contract directly with that individual, except as provided in Article 34 of this Code.

(5) Collective bargaining contracts, except as provided in Article 34 of this Code.

(6) Purchase of real estate, except that notice of this type of contract with a value of more than $25,000 must be published in the Procurement Bulletin within 10 calendar days after the deed is recorded in the county of jurisdiction. The notice shall identify the real estate purchased, the names of all parties to the contract, the value of the contract, and the effective date of the contract.

(7) Contracts necessary to prepare for anticipated litigation, enforcement actions, or investigations, provided that the chief legal counsel to the Governor shall give his or her prior approval when the procuring agency is one subject to the jurisdiction of the Governor, and provided that the chief legal counsel of any other procuring entity subject to this Code shall give his or her prior approval when the procuring entity is not one subject to the jurisdiction of the Governor.

(8) (Blank).

(9) Procurement expenditures by the Illinois Conservation Foundation when only private funds are used.

(10) (Blank).

(11) Public-private agreements entered into according to the procurement requirements of Section 20 of the Public-Private Partnerships for Transportation Act and design-build agreements entered into according to the procurement requirements of Section 25 of the Public-Private Partnerships for Transportation Act.

(12) (A) Contracts for legal, financial, and other professional and artistic services entered into by the Illinois Finance Authority in which the State of Illinois is not obligated. Such contracts shall be awarded through a competitive process authorized by the members of the Illinois Finance Authority and are subject to Sections 5-30, 20-160, 50-13, 50-20, 50-35, and 50-37 of this Code, as well as the final approval by the members of the Illinois Finance Authority of the terms of the contract.

(B) Contracts for legal and financial services entered into by the Illinois Housing Development Authority in connection with the issuance of bonds in which the State of Illinois is not obligated. Such contracts shall be awarded through a competitive process authorized by the members of the Illinois Housing Development Authority and are subject to Sections 5-30, 20-160, 50-13, 50-20, 50-35, and 50-37 of this Code, as well as the final approval by the members of the Illinois Housing Development Authority of the terms of the contract.

(13) Contracts for services, commodities, and equipment to support the delivery of timely forensic science services in consultation with and subject to the approval of the Chief Procurement Officer as provided in subsection (d) of Section 5-4-3a of the Unified Code of Corrections, except for the requirements of Sections 20-60, 20-65, 20-70, and 20-160 and Article 50 of this Code; however, the Chief Procurement Officer may, in writing with justification, waive any certification required under Article 50 of this Code. For any contracts for services which are currently provided by members of a collective bargaining agreement, the applicable terms of the collective bargaining agreement concerning subcontracting shall be followed.

On and after January 1, 2019, this paragraph (13), except for this sentence, is inoperative.

(14) Contracts for participation expenditures required by a domestic or international trade show or exhibition of an exhibitor, member, or sponsor.

(15) Contracts with a railroad or utility that requires the State to reimburse the railroad or utilities for the relocation of utilities for construction or other public purpose. Contracts included within this paragraph (15) shall include, but not be limited to, those associated with: relocations, crossings, installations, and maintenance. For the purposes of this paragraph (15), "railroad" means any form of non-highway ground transportation that runs on rails or electromagnetic guideways and "utility" means: (1) public utilities as defined in Section 3-105 of the Public Utilities Act, (2) telecommunications carriers as defined in Section 13-202 of the Public Utilities Act, (3) electric cooperatives as defined in Section 3.4 of the Electric Supplier Act, (4) telephone or telecommunications cooperatives as defined in Section 13-212 of the Public Utilities Act, (5) rural water or waste water systems with 10,000 connections or less, (6) a holder as defined in Section 21-201 of the Public Utilities Act, and (7) municipalities owning or operating utility systems consisting of public utilities as that term is defined in Section 11-117-2 of the Illinois Municipal Code.

(16) Procurement expenditures necessary for the Department of Public Health to provide the delivery of timely newborn screening services in accordance with the Newborn Metabolic Screening Act.

(17) Procurement expenditures necessary for the Department of Agriculture, the Department of Financial and Professional Regulation, the Department of Human Services, and the Department of Public Health to implement the Compassionate Use of Medical Cannabis Program and Opioid Alternative Pilot Program requirements and ensure access to medical cannabis for patients with debilitating medical conditions in accordance with the Compassionate Use of Medical Cannabis Program Act.

(18) This Code does not apply to any procurements necessary for the Department of Agriculture, the Department of Financial and Professional Regulation, the Department of Human Services, the Department of Commerce and Economic Opportunity, and the Department of Public Health to implement the Cannabis Regulation and Tax Act if the applicable agency has made a good faith determination that it is necessary and appropriate for the expenditure to fall within this exemption and if the process is conducted in a manner substantially in accordance with the requirements of Sections 20-160, 25-60, 30-22, 50-5, 50-10, 50-10.5, 50-12, 50-13, 50-15, 50-20, 50-21, 50-35, 50-36, 50-37, 50-38, and 50-50 of this Code; however, for Section 50-35, compliance applies only to contracts or subcontracts over $100,000. Notice of each contract entered into under this paragraph (18) that is related to the procurement of goods and services identified in paragraph (1) through (9) of this subsection shall be published in the Procurement Bulletin within 14 calendar days after contract execution. The Chief Procurement Officer shall prescribe the form and content of the notice. Each agency shall provide the Chief Procurement Officer, on a monthly basis, in the form and content prescribed by the Chief Procurement Officer, a report of contracts that are related to the procurement of goods and services identified in this subsection. At a minimum, this report shall include the name of the contractor, a description of the supply or service provided, the total amount of the contract, the term of the contract, and the exception to this Code utilized. A copy of any or all of these contracts shall be made available to the Chief Procurement Officer immediately upon request. The Chief Procurement Officer shall submit a report to the Governor and General Assembly no later than November 1 of each year that includes, at a minimum, an annual summary of the monthly information reported to the Chief Procurement Officer. This exemption becomes inoperative 5 years after June 25, 2019 (the effective date of Public Act 101-27).

(19) Acquisition of modifications or adjustments, limited to assistive technology devices and assistive technology services, adaptive equipment, repairs, and replacement parts to provide reasonable accommodations (i) that enable a qualified applicant with a disability to complete the job application process and be considered for the position such qualified applicant desires, (ii) that modify or adjust the work environment to enable a qualified current employee with a disability to perform the essential functions of the position held by that employee, (iii) to enable a qualified current employee with a disability to enjoy equal benefits and privileges of employment as are enjoyed by its other similarly situated employees without disabilities, and (iv) that allow a customer, client, claimant, or member of the public seeking State services full use and enjoyment of and access to its programs, services, or benefits.

For purposes of this paragraph (19):

"Assistive technology devices" means any item, piece of equipment, or product system, whether acquired commercially off the shelf, modified, or customized, that is used to increase, maintain, or improve functional capabilities of individuals with disabilities.

"Assistive technology services" means any service that directly assists an individual with a disability in selection, acquisition, or use of an assistive technology device.

"Qualified" has the same meaning and use as provided under the federal Americans with Disabilities Act when describing an individual with a disability.

(20) (19) Procurement expenditures necessary for the Illinois Commerce Commission to hire third-party facilitators pursuant to Sections 16-105.17 and Section 16-108.18 of the Public Utilities Act or an ombudsman pursuant to Section 16-107.5 of the Public Utilities Act, a facilitator pursuant to Section 16-105.17 of the Public Utilities Act, or a grid auditor pursuant to Section 16-105.10 of the Public Utilities Act.

Notwithstanding any other provision of law, for contracts entered into on or after October 1, 2017 under an exemption provided in any paragraph of this subsection (b), except paragraph (1), (2), or (5), each State agency shall post to the appropriate procurement bulletin the name of the contractor, a description of the supply or service provided, the total amount of the contract, the term of the contract, and the exception to the Code utilized. The chief procurement officer shall submit a report to the Governor and General Assembly no later than November 1 of each year that shall include, at a minimum, an annual summary of the monthly information reported to the chief procurement officer.

(c) This Code does not apply to the electric power procurement process provided for under Section 1-75 of the Illinois Power Agency Act and Section 16-111.5 of the Public Utilities Act.

(d) Except for Section 20-160 and Article 50 of this Code, and as expressly required by Section 9.1 of the Illinois Lottery Law, the provisions of this Code do not apply to the procurement process provided for under Section 9.1 of the Illinois Lottery Law.

(e) This Code does not apply to the process used by the Capital Development Board to retain a person or entity to assist the Capital Development Board with its duties related to the determination of costs of a clean coal SNG brownfield facility, as defined by Section 1-10 of the Illinois Power Agency Act, as required in subsection (h-3) of Section 9-220 of the Public Utilities Act, including calculating the range of capital costs, the range of operating and maintenance costs, or the sequestration costs or monitoring the construction of clean coal SNG brownfield facility for the full duration of construction.

(f) (Blank).

(g) (Blank).

(h) This Code does not apply to the process to procure or contracts entered into in accordance with Sections 11-5.2 and 11-5.3 of the Illinois Public Aid Code.

(i) Each chief procurement officer may access records necessary to review whether a contract, purchase, or other expenditure is or is not subject to the provisions of this Code, unless such records would be subject to attorney-client privilege.

(j) This Code does not apply to the process used by the Capital Development Board to retain an artist or work or works of art as required in Section 14 of the Capital Development Board Act.

(k) This Code does not apply to the process to procure contracts, or contracts entered into, by the State Board of Elections or the State Electoral Board for hearing officers appointed pursuant to the Election Code.

(l) This Code does not apply to the processes used by the Illinois Student Assistance Commission to procure supplies and services paid for from the private funds of the Illinois Prepaid Tuition Fund. As used in this subsection (l), "private funds" means funds derived from deposits paid into the Illinois Prepaid Tuition Trust Fund and the earnings thereon.

(m) This Code shall apply regardless of the source of funds with which contracts are paid, including federal assistance moneys. Except as specifically provided in this Code, this Code shall not apply to procurement expenditures necessary for the Department of Public Health to conduct the Healthy Illinois Survey in accordance with Section 2310-431 of the Department of Public Health Powers and Duties Law of the Civil Administrative Code of Illinois.

(Source: P.A. 101-27, eff. 6-25-19; 101-81, eff. 7-12-19; 101-363, eff. 8-9-19; 102-175, eff. 7-29-21; 102-483, eff 1-1-22; 102-558, eff. 8-20-21; 102-600, eff. 8-27-21; 102-662, eff. 9-15-21; revised 11-23-21.)

(30 ILCS 500/1-13)

Sec. 1-13. Applicability to public institutions of higher education.

(a) This Code shall apply to public institutions of higher education, regardless of the source of the funds with which contracts are paid, except as provided in this Section.

(b) Except as provided in this Section, this Code shall not apply to procurements made by or on behalf of public institutions of higher education for any of the following:

(1) Memberships in professional, academic, research, or athletic organizations on behalf of a public institution of higher education, an employee of a public institution of higher education, or a student at a public institution of higher education.

(2) Procurement expenditures for events or activities paid for exclusively by revenues generated by the event or activity, gifts or donations for the event or activity, private grants, or any combination thereof.

(3) Procurement expenditures for events or activities for which the use of specific potential contractors is mandated or identified by the sponsor of the event or activity, provided that the sponsor is providing a majority of the funding for the event or activity.

(4) Procurement expenditures necessary to provide athletic, artistic or musical services, performances, events, or productions by or for a public institution of higher education.

(5) Procurement expenditures for periodicals, books, subscriptions, database licenses, and other publications procured for use by a university library or academic department, except for expenditures related to procuring textbooks for student use or materials for resale or rental.

(6) Procurement expenditures for placement of students in externships, practicums, field experiences, and for medical residencies and rotations.

(7) Contracts for programming and broadcast license rights for university-operated radio and television stations.

(8) Procurement expenditures necessary to perform sponsored research and other sponsored activities under grants and contracts funded by the sponsor or by sources other than State appropriations.

(9) Contracts with a foreign entity for research or educational activities, provided that the foreign entity either does not maintain an office in the United States or is the sole source of the service or product. Notice of each contract entered into by a public institution of higher education that is related to the procurement of goods and services identified in items (1) through (9) of this subsection shall be published in the Procurement Bulletin within 14 calendar days after contract execution. The Chief Procurement Officer shall prescribe the form and content of the notice. Each public institution of higher education shall provide the Chief Procurement Officer, on a monthly basis, in the form and content prescribed by the Chief Procurement Officer, a report of contracts that are related to the procurement of goods and services identified in this subsection. At a minimum, this report shall include the name of the contractor, a description of the supply or service provided, the total amount of the contract, the term of the contract, and the exception to the Code utilized. A copy of any or all of these contracts shall be made available to the Chief Procurement Officer immediately upon request. The Chief Procurement Officer shall submit a report to the Governor and General Assembly no later than November 1 of each year that shall include, at a minimum, an annual summary of the monthly information reported to the Chief Procurement Officer.

(b-5) Except as provided in this subsection, the provisions of this Code shall not apply to contracts for medical supplies, and to contracts for medical services necessary for the delivery of care and treatment at medical, dental, or veterinary teaching facilities utilized by Southern Illinois University or the University of Illinois and at any university-operated health care center or dispensary that provides care, treatment, and medications for students, faculty and staff. Other supplies and services needed for these teaching facilities shall be subject to the jurisdiction of the Chief Procurement Officer for Public Institutions of Higher Education who may establish expedited procurement procedures and may waive or modify certification, contract, hearing, process and registration requirements required by the Code. All procurements made under this subsection shall be documented and may require publication in the Illinois Procurement Bulletin.

(b-10) Procurements made by or on behalf of the University of Illinois for investment services scheduled to expire June 2021 may be extended through June 2022 without being subject to the requirements of this Code. Any contract extended, renewed, or entered pursuant to this exception shall be published on the Executive Ethics Commission's website within 5 days of contract execution. This subsection is inoperative on and after July 1, 2022.

(c) Procurements made by or on behalf of public institutions of higher education for the fulfillment of a grant shall be made in accordance with the requirements of this Code to the extent practical.

Upon the written request of a public institution of higher education, the Chief Procurement Officer may waive contract, registration, certification, and hearing requirements of this Code if, based on the item to be procured or the terms of a grant, compliance is impractical. The public institution of higher education shall provide the Chief Procurement Officer with specific reasons for the waiver, including the necessity of contracting with a particular potential contractor, and shall certify that an effort was made in good faith to comply with the provisions of this Code. The Chief Procurement Officer shall provide written justification for any waivers. By November 1 of each year, the Chief Procurement Officer shall file a report with the General Assembly identifying each contract approved with waivers and providing the justification given for any waivers for each of those contracts. Notice of each waiver made under this subsection shall be published in the Procurement Bulletin within 14 calendar days after contract execution. The Chief Procurement Officer shall prescribe the form and content of the notice.

(d) Notwithstanding this Section, a waiver of the registration requirements of Section 20-160 does not permit a business entity and any affiliated entities or affiliated persons to make campaign contributions if otherwise prohibited by Section 50-37. The total amount of contracts awarded in accordance with this Section shall be included in determining the aggregate amount of contracts or pending bids of a business entity and any affiliated entities or affiliated persons.

(e) The Notwithstanding subsection (e) of Section 50-10.5 of this Code, the Chief Procurement Officer, with the approval of the Executive Ethics Commission, may permit a public institution of higher education to accept a bid or enter into a contract with a business that assisted the public institution of higher education in determining whether there is a need for a contract or assisted in reviewing, drafting, or preparing documents related to a bid or contract, provided that the bid or contract is essential to research administered by the public institution of higher education and it is in the best interest of the public institution of higher education to accept the bid or contract. For purposes of this subsection, "business" includes all individuals with whom a business is affiliated, including, but not limited to, any officer, agent, employee, consultant, independent contractor, director, partner, manager, or shareholder of a business. The Executive Ethics Commission may promulgate rules and regulations for the implementation and administration of the provisions of this subsection (e).

(f) As used in this Section:

"Grant" means non-appropriated funding provided by a federal or private entity to support a project or program administered by a public institution of higher education and any non-appropriated funding provided to a sub-recipient of the grant.

"Public institution of higher education" means Chicago State University, Eastern Illinois University, Governors State University, Illinois State University, Northeastern Illinois University, Northern Illinois University, Southern Illinois University, University of Illinois, Western Illinois University, and, for purposes of this Code only, the Illinois Mathematics and Science Academy.

(g) (Blank).

(h) The General Assembly finds and declares that:

(1) Public Act 98-1076, which took effect on January 1, 2015, changed the repeal date set for this Section from December 31, 2014 to December 31, 2016.

(2) The Statute on Statutes sets forth general rules on the repeal of statutes and the construction of multiple amendments, but Section 1 of that Act also states that these rules will not be observed when the result would be "inconsistent with the manifest intent of the General Assembly or repugnant to the context of the statute".

(3) This amendatory Act of the 100th General Assembly manifests the intention of the General Assembly to remove the repeal of this Section.

(4) This Section was originally enacted to protect, promote, and preserve the general welfare. Any construction of this Section that results in the repeal of this Section on December 31, 2014 would be inconsistent with the manifest intent of the General Assembly and repugnant to the context of this Code.

It is hereby declared to have been the intent of the General Assembly that this Section not be subject to repeal on December 31, 2014.

This Section shall be deemed to have been in continuous effect since December 20, 2011 (the effective date of Public Act 97-643), and it shall continue to be in effect henceforward until it is otherwise lawfully repealed. All previously enacted amendments to this Section taking effect on or after December 31, 2014, are hereby validated.

All actions taken in reliance on or pursuant to this Section by any public institution of higher education, person, or entity are hereby validated.

In order to ensure the continuing effectiveness of this Section, it is set forth in full and re-enacted by this amendatory Act of the 100th General Assembly. This re-enactment is intended as a continuation of this Section. It is not intended to supersede any amendment to this Section that is enacted by the 100th General Assembly.

In this amendatory Act of the 100th General Assembly, the base text of the reenacted Section is set forth as amended by Public Act 98-1076. Striking and underscoring is used only to show changes being made to the base text.

This Section applies to all procurements made on or before the effective date of this amendatory Act of the 100th General Assembly.

(Source: P.A. 101-640, eff. 6-12-20; 102-16, eff. 6-17-21.)

(30 ILCS 500/1-35)

(Section scheduled to be repealed on July 17, 2023)

Sec. 1-35. Application to Quincy Veterans' Home. This Code does not apply to any procurements related to the renovation, restoration, rehabilitation, or rebuilding of the Quincy Veterans' Home under the Quincy Veterans' Home Rehabilitation and Rebuilding Act, provided that the process shall be conducted in a manner substantially in accordance with the requirements of the following Sections of this Code: 20-160, 25-60, 30-22, 50-5, 50-10, 50-10.5, 50-12, 50-13, 50-15, 50-20, 50-21, 50-35, 50-36, 50-37, 50-38, and 50-50; however, for Section 50-35, compliance shall apply only to contracts or subcontracts over $100,000.

This Section is repealed 5 years after becoming law. The repeal of this Section shall not apply to contracts for procurements under the Quincy Veterans' Home Rehabilitation and Rebuilding Act executed prior to the repeal date.

(Source: P.A. 102-35, eff. 6-25-21; 102-558, eff. 8-20-21.)

(30 ILCS 500/1-40)

Sec. 1-40. Application to James R. Thompson Center. In accordance with Section 7.4 of the State Property Control Act, this Code does not apply to any procurements related to the sale of the James R. Thompson Center, provided that the process shall be conducted in a manner substantially in accordance with the requirements of the following Sections of this Code: 20-160, 50-5, 50-10, 50-10.5, 50-12, 50-13, 50-15, 50-20, 50-21, 50-35, 50-36, 50-37, 50-38, and 50-50. The exemption contained in this Section does not apply to any leases involving the James R. Thompson Center, including a leaseback authorized under Section 7.4 of the State Property Control Act.

(Source: P.A. 102-558, eff. 8-20-21.)

(30 ILCS 500/30-15)

Sec. 30-15. Method of source selection.

(a) Competitive sealed bidding. Except as provided in subsections (b), (c), and (d) and Sections 20-20, 20-25, and 20-30, all State construction contracts shall be procured by competitive sealed bidding in accordance with Section 20-10.

(b) Other methods. The Capital Development Board shall establish by rule construction purchases that may be made without competitive sealed bidding and the most competitive alternate method of source selection that shall be used.

(c) Construction-related professional services. All construction-related professional services contracts shall be awarded in accordance with the provisions of the Architectural, Engineering, and Land Surveying Qualifications Based Selection Act. "Professional services" means those services within the scope of the practice of architecture, professional engineering, structural engineering, or registered land surveying, as defined by the laws of this State.

(d) Correctional facilities. Remodeling and rehabilitation projects at correctional facilities under $25,000 funded from the General Revenue Fund are exempt from the provisions of this Article. The Department of Corrections may use inmate labor for the remodeling or rehabilitation of correctional facilities on those projects under $25,000 funded from the General Revenue Fund. Notwithstanding any other law to the contrary, inmates performing such labor as provided under this subsection (d) shall be paid the prevailing wage for work of a similar character.

(Source: P.A. 90-572, eff. date - See Sec. 99-5.)

(30 ILCS 500/Art. 34 heading new)

ARTICLE 34.

SECOND CHANCE STATE CONTRACTS APPRENTICESHIP AND

PREAPPRENTICESHIP PROGRAM

(30 ILCS 500/34-1 new)

Sec. 34-1. Findings. The General Assembly finds that the provisions of this Article will specifically and individually benefit each person who and each entity that is a resident of the State of Illinois by, without limitation, reducing recidivism and the financial and social costs and violence attributable to recidivism.

(30 ILCS 500/34-5 new)

Sec. 34-5. Definitions.

(a) As used in this Article:

"Apprentices" means participants in any apprenticeship program approved by and registered with the United States Department of Labor's Bureau of Apprenticeship and Training.

"Apprenticeship program" means an apprenticeship and training program approved by and registered with the United States Department of Labor's Bureau of Apprenticeship and Training.

"Certificate of arrest or conviction" means a certifying agency's certificate that an impacted individual has been arrested or convicted of a felony by any court of competent jurisdiction sitting in the United States or any territory of the United States. A certificate of arrest or conviction shall only state the name of the impacted individual to whom it is being issued and that the certifying agency has information showing that the impacted individual was arrested for committing a felony or convicted of a felony by any court of competent jurisdiction sitting in the United States or any territory of the United States. A certificate of arrest or conviction shall set forth no other information.

"Certifying agency" means the Illinois State Police, the Department of Corrections, the clerk of any circuit court of this State, any law enforcement agency of the State, or any political subdivision of the State.

"Chief procurement officer" has the same meaning as provided under Section 1-15.15.

"Contract for public works" means any agreement entered on or after July 1, 2023 that involves public works regardless of the name given to such agreement or the form of such agreement.

"Contractor" means any person or entity that is a party to a contract for public works other than the State, any State agency, or any community college district.

"Impacted individual" means a person who: (i) is a citizen or lawful permanent resident of the United States; (ii) is a resident of the State of Illinois; and (iii) has been arrested for committing a felony or convicted of a felony by any court of competent jurisdiction sitting in the United States or any territory of the United States.

"Preapprenticeship program" means a program that: (i) has a documented partnership with an employer; (ii) is designed to prepare individuals to enter and succeed in an apprenticeship program; and (iii) includes all of the following:

(A) training and curriculum that aligns with the skill needs of employers in the economy of the State or region and that has been designed to prepare participants to meet the minimum entry-level requirements of an apprenticeship program;

(B) access to educational and career counseling, and other supportive services as needed by participants;

(C) hands-on meaningful learning activities that are connected to education and training activities, such as career exploration and career development experiences, and that reinforce foundational professional skills, including, at a minimum, those outlined in the Essential Employability Skills framework, with the terms set forth in this Section having the definitions given to them in the most recent edition of the Illinois Career Pathways Dictionary that includes such definitions; and

(D) upon successful completion of the program, participants are supported to apply for an apprenticeship program, and may receive preference for enrollment.

"Public works" means any work, contracted or funded, in whole or in part, by the State, any State agency, or any community college district, that constitutes public works under the Prevailing Wage Act.

(b) To the extent of a conflict between these definitions and any existing definition provided elsewhere in this Code or otherwise pursuant to law or applicable administrative rule, the definitions provided under this Section shall control.

(30 ILCS 500/34-10 new)

Sec. 34-10. Public works contracts hiring requirements.

(a) Notwithstanding any other provision of law to the contrary, no contract for public works in which the estimated total dollar amount of the contract for public works is $500,000 or more shall be valid unless it includes the following requirements:

(1) The contractor shall cause impacted individuals to be hired as apprentices to perform labor required pursuant to the contract, with the impacted individuals being paid wages and provided with benefits with a total dollar cost equal to not less than 5% of the total dollar amount of the contract for public works. Taxes paid solely by the contractor as a result of its hiring of impacted individuals under this Act shall not be included in the computation of wages paid and benefits provided to impacted individuals pursuant to this Section.

(2) The contractor shall provide the chief procurement officer and the purchasing agency or community college district that is a party to the contract for public works with the contractor's affidavits, given under oath, evidencing the contractor's compliance with this Article. Those affidavits shall, at a minimum, set forth the total dollar amount of the contractor's contract for public works and include the following information pertaining to each of the impacted individuals hired pursuant to the contract for public works:

(i) name and residential address;

(ii) job classification;

(iii) hourly wage;

(iv) number of non-overtime hours worked during each week included in the period covered by the affidavit;

(v) number of overtime hours worked during each week included in the period covered by the affidavit;

(vi) amount of non-overtime wages paid during each week included in the period covered by the affidavit;

(vii) amount of overtime wages paid during each week included in the period covered by the affidavit; and

(viii) the cost of benefits that were provided during each week included in the period covered by the affidavit and were not paid by any impacted individuals.

(b) Taxes paid solely by the contractor as a result of its hiring of impacted individuals pursuant to this Act shall not be included in the computation of wages paid and benefits provided to impacted individuals pursuant to this Section. The affidavit shall also include additional information evidencing compliance with this Article as may be required by the chief procurement officer or the purchasing agency or community college district that is a party to the contract for public works. The contractor shall provide the affidavits to the chief procurement officer or the purchasing agency or community college district that is a party to the contract for public works according to the following schedule:

(1) The affidavit reflecting wages paid and benefits provided between January 1 and June 30 of any year shall be due on July 31 of that year.

(2) The affidavit reflecting wages paid and benefits provided between July 1 and December 31 of any year shall be due on January 31 of the following year.

(c) Each contract for public works shall expressly include the provisions of this Section.

(30 ILCS 500/34-15 new)

Sec. 34-15. Waivers.

(a) The chief procurement officer, upon the written request of a contractor, may wholly or partially waive that contractor's compliance with paragraph (1) of subsection (a) of Section 34-10 whenever that chief procurement officer has made a written determination, based on the best information available at the time of the determination, that there is an insufficient number of impacted individuals who are able to qualify for an apprenticeship program related to the work that is the subject of the contractor's contract for public works.

(b) A contractor's written request for waiver to the chief procurement officer pursuant to this Section must include, at a minimum and without limitation, the following:

(1) Evidence that the contractor contacted every apprenticeship program within 100 miles of the locations where the work pursuant to the contractor's contract for public works is expected to be performed, for the purpose of hiring impacted individuals who are participating in such apprenticeship programs, and the response of each such apprenticeship program.

(2) Evidence that the contractor contacted every preapprenticeship programs within 100 miles of the locations where the work pursuant to the contractor's contract for public works is expected to be performed, for the purpose of hiring impacted individuals who are participating in such preapprenticeship programs, and the response of each such preapprenticeship program.

(3) Evidence that the contractor contacted not less than 40 reentry navigators or similarly titled individuals who facilitate the provision of services to impacted individuals or apprenticeship programs and who are located within 100 miles of the locations where the work pursuant to the contractor's contract for public works is expected to be performed, for the purpose of hiring impacted individuals as apprentices, and the response of each reentry navigator or similarly titled individual.

(4) Evidence that the contractor undertook other diligent efforts to solicit and hire impacted individuals as apprentices for the contractor's contract for public works, with that evidence being in addition to other evidence required by this Section.

(5) The total dollar amount of all wages the contractor would have paid to impacted individuals but for the requested waiver being granted and the contractor being able to hire those impacted individuals who would otherwise be required pursuant to this Article.

(6) The total dollar amount of all benefits the contractor would have expended on behalf of impacted individuals but for the requested waiver being granted and the contractor being able to hire those impacted individuals who would otherwise be required pursuant to this Article.

(7) Any additional evidence as the chief procurement officer may reasonably find to be required to make a determination on the contractor's request.

(8) A statement made under oath or attestation that the matters included in the contractor's request for waiver are true and correct to the best of the contractor's knowledge after a reasonable inquiry.

(c) Taxes that would have been paid solely by the contractor as a result of its hiring of impacted individuals pursuant to this Act shall not be included in the computation of wages paid and benefits provided to impacted individuals pursuant to this Section.

(d) The chief procurement officer shall make each request for waiver and all documents provided to it by a contractor in support of that request available on that chief procurement officer's website. No determination shall be made on any request until 10 business days after that chief procurement officer has made the request and all supporting documents available on its website. Within that 10 business day period, any person who or entity that is a resident of the State of Illinois, without need for showing any interest in the contract or waiver at issue, may submit evidence and opinions to that chief procurement officer in opposition to the contractor's request for waiver. The evidence shall be accompanied by a statement made under oath or attestation that the matters provided in opposition to the contractor's request for waiver are true and correct to the best of the knowledge of the person or entity that is submitting them, after a reasonable inquiry.

The granting of a waiver pursuant to this Section shall be disfavored and shall be granted only when there is clear and convincing evidence to support the waiver, considering, without limitation, the contractor's request, documents provided by the contractor in support of that request and any submissions made in opposition to that request pursuant to this Section. The chief procurement officer's determination regarding each waiver shall set forth, in detail, the reasons for that determination and all matters supporting that determination. The chief procurement officer shall post each determination on its website within one business day after the determination is made and shall serve notice of the determination on all persons who or entities that submitted evidence and opinions to the chief procurement officer in opposition to the contractor's request for the waiver within 5 business days after the determination.

The provisions of the Administrative Review Law shall apply to and govern every action to review judicially a determination made by the chief procurement officer in response to a contractor's request for waiver pursuant to this Section. Notwithstanding any other law to the contrary, all persons who or entities that submitted evidence and opinions to the chief procurement officer in opposition to the contractor's request for the waiver shall have standing to seek judicial review of a determination made by the chief procurement officer in opposition to a contractor's request for waiver pursuant to this Section.

(e) A contractor that has been granted a waiver pursuant to this Section shall, within 5 business days after the granting of that waiver, pay the following amounts to a program within this State that provides preapprenticeship training to impacted individuals pursuant to Section 34-30:

(1) the total dollar amount of all wages the contractor would have paid to impacted individuals but for the requested waiver being granted and the contractor being able to hire those impacted individuals who would otherwise be required pursuant to this Article; and

(2) the total dollar amount of all benefits the contractor would have expended on behalf of impacted individuals but for the requested waiver being granted and the contractor being able to hire those impacted individuals who would otherwise be required pursuant to this Article.

Amounts paid by a contractor pursuant to this subsection (e) shall be in addition to and supplement existing payments for such preapprenticeship training programs and shall not substitute for payments otherwise necessary for such programs.

(30 ILCS 500/34-20 new)

Sec. 34-20. Certificate of arrest or conviction.

(a) An impacted individual may request a certificate of arrest or conviction from any certifying agency. There shall be no charge for such a request or response thereto. Within 10 business days after receiving a request, the certifying agency shall provide the impacted individual who made the request with either: (i) a certificate of arrest or conviction; or (ii) a statement that it does not have information sufficient to provide a certificate of arrest or conviction.

(b) Every certifying agency shall adopt reasonable procedures for the request and issuance of a certificate of arrest or conviction. The procedures shall be set forth on the certifying agency's website, and shall allow, at a minimum, for an impacted individual to make a request for a certificate through the certifying agency's website, by email, by regular mail, and in-person at or by other means of delivery to the certifying agency's office.

(c) For purposes of complying with this Article, a certificate of arrest or conviction shall constitute evidence that the person named thereon has been arrested or convicted of a felony by any court of competent jurisdiction sitting in the United States or any territory of the United States. A contractor shall accept and may rely upon a certificate of arrest or conviction that is presented to the contractor by or on behalf of an impacted person for purposes of evidencing compliance with this Article. Notwithstanding the foregoing, a contractor shall also accept and may rely upon any other reasonable evidence of an impacted individual's arrest for the commission of a felony or conviction of a felony by any court of competent jurisdiction sitting in the United States or any territory of the United States that is presented to the contractor by or on behalf of that impacted person for purposes of evidencing compliance with this Article.

(30 ILCS 500/34-25 new)

Sec. 34-25. Fiscal year reports.

(a) By or before November 1, 2024 and on November 1 of each year thereafter, the chief procurement officer shall report to the General Assembly on compliance with this Article during the fiscal year immediately preceding the date of the report. Each report shall, at a minimum, include the following for the period covered by the fiscal year immediately preceding the date of the report:

(1) The total dollar amount of all contracts for public works.

(2) The total number of impacted individuals who were employed as apprentices pursuant to contracts for public works.

(3) The total amount of non-overtime hours worked by impacted individuals as apprentices pursuant to contracts for public works.

(4) The total amount of overtime hours worked by impacted individuals as apprentices pursuant to contracts for public works.

(5) The total amount of non-overtime wages paid to impacted individuals as apprentices pursuant to contracts for public works.

(6) The total amount of overtime wages paid to impacted individuals as apprentices pursuant to contracts for public works.

(7) The total cost of benefits that were provided to impacted individuals pursuant to contracts for public works and that were not paid by any impacted individuals.

(8) The total number of waivers from the requirements of this Article that were requested by contractors, including: (i) the total number of determinations granting waivers; (ii) the total dollar amount of all contracts for public works that were the subject of requests for waivers that were granted; (iii) the total amount of all wages and all contractors requesting waivers that were granted that would have been paid to impacted individuals had the waiver not been granted, and those contractors that hired impacted individuals who would otherwise be required pursuant to this Article; and (iv) the total dollar amount of all benefits of all contractors requesting waivers that were granted that would have expended on behalf of impacted individuals had the waiver not been granted and those contractors that hired impacted individuals who would otherwise be required pursuant to this Article.

(b) Taxes paid solely by the contractor as a result of its hiring of impacted individuals pursuant to this Act shall not be included in the computation of wages paid and benefits provided to impacted individuals pursuant to this Section.

(30 ILCS 500/34-30 new)

Sec. 34-30. Funding preapprenticeship programs.

(a) No collective bargaining agreement entered into by the State or any State agency on or after the effective date of this amendatory Act of the 102nd General Assembly shall be valid unless it provides that an amount equal to not less than 5% of the dollar amount of wages paid and benefits provided by the State or State agency pursuant to the collective bargaining agreement shall be contributed by the labor union that is a party to that collective bargaining agreement to one or more preapprenticeship programs that exclusively serve impacted individuals.

(b) No collective bargaining agreement entered into by the State or any State agency that is in effect prior to the effective date of this amendatory Act of the 102nd General Assembly shall be renewed, extended, or otherwise continued beyond the initial duration of that collective bargaining agreement, unless the labor union that is a party to that collective bargaining agreement agrees to make the contribution required by subsection (a) throughout the period of the renewal, extension, or continuation. The State or any State agency that is a party to a collective bargaining agreement that is in effect prior to the effective date of this amendatory Act of the 102nd General Assembly shall provide all notices and cancellations, and take all other actions required pursuant to the collective bargaining agreement or any other legal requirements to effectuate the provisions of this subsection (b).

(c) Taxes paid solely by the State or State agency as a result of its entry into a collective bargaining agreement shall not be included in the computation of wages paid and benefits provided pursuant to that collective bargaining agreement.

(d) Each union that is required to make contributions to one or more preapprenticeship programs that exclusively serve impacted individuals pursuant to this Section shall provide a sworn statement with reasonable evidence of its compliance with this Section to the chief procurement office on a semi-annual basis.

(e) Nothing in this Act shall be construed to prohibit a labor union that is required to make contributions to one or more preapprenticeship programs that exclusively serve impacted individuals pursuant to this Section from making those contributions to a preapprenticeship program that exclusively serves impacted individuals and is operated or sponsored by that labor union.

(30 ILCS 500/34-35 new)

Sec. 34-35. Standing to enforce. Each person who and each entity that is a resident of the State of Illinois has standing to enforce the provisions of this Article without need of showing any other interest in the matter.

(30 ILCS 500/50-60)

Sec. 50-60. Voidable contracts.

(a) If any contract or amendment thereto is entered into or purchase or expenditure of funds is made at any time in violation of this Code or any other law, the contract or amendment thereto may be declared void by the chief procurement officer or may be ratified and affirmed, provided the chief procurement officer determines that ratification is in the best interests of the State. If the contract is ratified and affirmed, it shall be without prejudice to the State's rights to any appropriate damages.

(b) If, during the term of a contract, the chief procurement officer determines that the contractor is delinquent in the payment of debt as set forth in Section 50-11 of this Code, the chief procurement officer may declare the contract void if it determines that voiding the contract is in the best interests of the State. The Debt Collection Bureau shall adopt rules for the implementation of this subsection (b).

(c) (Blank). If, during the term of a contract, the chief procurement officer determines that the contractor is in violation of Section 50-10.5 of this Code, the chief procurement officer shall declare the contract void.

(d) If, during the term of a contract, the contracting agency learns from an annual certification or otherwise determines that the contractor no longer qualifies to enter into State contracts by reason of Section 50-5, 50-10, 50-12, 50-14, or 50-14.5 of this Article, the chief procurement officer may declare the contract void if it determines that voiding the contract is in the best interests of the State.

(e) If, during the term of a contract, the chief procurement officer learns from an annual certification or otherwise determines that a subcontractor subject to Section 20-120 no longer qualifies to enter into State contracts by reason of Section 50-5, 50-10, 50-10.5, 50-11, 50-12, 50-14, or 50-14.5 of this Article, the chief procurement officer may declare the related contract void if it determines that voiding the contract is in the best interests of the State. However, the related contract shall not be declared void unless the contractor refuses to terminate the subcontract upon the State's request after a finding that the subcontractor no longer qualifies to enter into State contracts by reason of one of the Sections listed in this subsection.

(f) The changes to this Section made by Public Act 96-795 apply to actions taken by the chief procurement officer on or after July 1, 2010.

(Source: P.A. 96-493, eff. 1-1-10; 96-795, eff. 7-1-10 (see Section 5 of P.A. 96-793 for the effective date of changes made by P.A. 96-795); 96-1000, eff. 7-2-10; 97-895, eff. 8-3-12.)

(30 ILCS 500/50-10 rep.)

(30 ILCS 500/50-10.5 rep.)

Section 10. The Illinois Procurement Code is amended by repealing Sections 50-10 and 50-10.5.

Section 15. The Business Enterprise for Minorities, Women, and Persons with Disabilities Act is amended by changing Section 2 as follows:

(30 ILCS 575/2)

(Section scheduled to be repealed on June 30, 2024)

Sec. 2. Definitions.

(A) For the purpose of this Act, the following terms shall have the following definitions:

(1) "Minority person" shall mean a person who is a citizen or lawful permanent resident of the United States and who is any of the following:

(a) American Indian or Alaska Native (a person having origins in any of the original peoples of North and South America, including Central America, and who maintains tribal affiliation or community attachment).

(b) Asian (a person having origins in any of the original peoples of the Far East, Southeast Asia, or the Indian subcontinent, including, but not limited to, Cambodia, China, India, Japan, Korea, Malaysia, Pakistan, the Philippine Islands, Thailand, and Vietnam).

(c) Black or African American (a person having origins in any of the black racial groups of Africa).

(d) Hispanic or Latino (a person of Cuban, Mexican, Puerto Rican, South or Central American, or other Spanish culture or origin, regardless of race).

(e) Native Hawaiian or Other Pacific Islander (a person having origins in any of the original peoples of Hawaii, Guam, Samoa, or other Pacific Islands).

(2) "Woman" shall mean a person who is a citizen or lawful permanent resident of the United States and who is of the female gender.

(2.05) "Person with a disability" means: (i) a person who is a citizen or lawful resident of the United States and is a person qualifying as a person with a disability under subdivision (2.1) of this subsection (A); or (ii) a person who is a citizen or lawful permanent resident of the United States and a resident of the State of Illinois who has been arrested for committing a felony or convicted of a felony by any court of competent jurisdiction sitting in the United States or any territory of the United States.

(2.1) "Person with a disability" means a person with a severe physical or mental disability that:

(a) results from:

amputation,

arthritis,

autism,

blindness,

burn injury,

cancer,

cerebral palsy,

Crohn's disease,

cystic fibrosis,

deafness,

head injury,

heart disease,

hemiplegia,

hemophilia,

respiratory or pulmonary dysfunction,

an intellectual disability,

mental illness,

multiple sclerosis,

muscular dystrophy,

musculoskeletal disorders,

neurological disorders, including stroke and epilepsy,

paraplegia,

quadriplegia and other spinal cord conditions,

sickle cell anemia,

ulcerative colitis,

specific learning disabilities, or

end stage renal failure disease; and

(b) substantially limits one or more of the person's major life activities.

Another disability or combination of disabilities may also be considered as a severe disability for the purposes of item (a) of this subdivision (2.1) if it is determined by an evaluation of rehabilitation potential to cause a comparable degree of substantial functional limitation similar to the specific list of disabilities listed in item (a) of this subdivision (2.1).

(3) "Minority-owned business" means a business which is at least 51% owned by one or more minority persons, or in the case of a corporation, at least 51% of the stock in which is owned by one or more minority persons; and the management and daily business operations of which are controlled by one or more of the minority individuals who own it.

(4) "Women-owned business" means a business which is at least 51% owned by one or more women, or, in the case of a corporation, at least 51% of the stock in which is owned by one or more women; and the management and daily business operations of which are controlled by one or more of the women who own it.

(4.1) "Business owned by a person with a disability" means a business that is at least 51% owned by one or more persons with a disability and the management and daily business operations of which are controlled by one or more of the persons with disabilities who own it. A not-for-profit agency for persons with disabilities that is exempt from taxation under Section 501 of the Internal Revenue Code of 1986 is also considered a "business owned by a person with a disability".

(4.2) "Council" means the Business Enterprise Council for Minorities, Women, and Persons with Disabilities created under Section 5 of this Act.

(4.3) "Commission" means, unless the context clearly indicates otherwise, the Commission on Equity and Inclusion created under the Commission on Equity and Inclusion Act.

(5) "State contracts" means all contracts entered into by the State, any agency or department thereof, or any public institution of higher education, including community college districts, regardless of the source of the funds with which the contracts are paid, which are not subject to federal reimbursement. "State contracts" does not include contracts awarded by a retirement system, pension fund, or investment board subject to Section 1-109.1 of the Illinois Pension Code. This definition shall control over any existing definition under this Act or applicable administrative rule.

"State construction contracts" means all State contracts entered into by a State agency or public institution of higher education for the repair, remodeling, renovation or construction of a building or structure, or for the construction or maintenance of a highway defined in Article 2 of the Illinois Highway Code.

(6) "State agencies" shall mean all departments, officers, boards, commissions, institutions and bodies politic and corporate of the State, but does not include the Board of Trustees of the University of Illinois, the Board of Trustees of Southern Illinois University, the Board of Trustees of Chicago State University, the Board of Trustees of Eastern Illinois University, the Board of Trustees of Governors State University, the Board of Trustees of Illinois State University, the Board of Trustees of Northeastern Illinois University, the Board of Trustees of Northern Illinois University, the Board of Trustees of Western Illinois University, municipalities or other local governmental units, or other State constitutional officers.

(7) "Public institutions of higher education" means the University of Illinois, Southern Illinois University, Chicago State University, Eastern Illinois University, Governors State University, Illinois State University, Northeastern Illinois University, Northern Illinois University, Western Illinois University, the public community colleges of the State, and any other public universities, colleges, and community colleges now or hereafter established or authorized by the General Assembly.

(8) "Certification" means a determination made by the Council or by one delegated authority from the Council to make certifications, or by a State agency with statutory authority to make such a certification, that a business entity is a business owned by a minority, woman, or person with a disability for whatever purpose. A business owned and controlled by women shall be certified as a "woman-owned business". A business owned and controlled by women who are also minorities shall be certified as both a "women-owned business" and a "minority-owned business".

(9) "Control" means the exclusive or ultimate and 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, operating 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.

(10) "Business" means a business that has annual gross sales of less than $75,000,000 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 Council for certification for a particular contract if the firm can demonstrate that the contract would have significant impact on businesses owned by minorities, women, or persons with disabilities as suppliers or subcontractors or in employment of minorities, women, or persons with disabilities.

(11) "Utilization plan" means a form and additional documentations included in all bids or proposals that demonstrates a vendor's proposed utilization of vendors certified by the Business Enterprise Program to meet the targeted goal. The utilization plan shall demonstrate that the Vendor has either: (1) met the entire contract goal or (2) requested a full or partial waiver and made good faith efforts towards meeting the goal.

(12) "Business Enterprise Program" means the Business Enterprise Program of the Commission on Equity and Inclusion.

(B) When a business is owned at least 51% by any combination of minority persons, women, or persons with disabilities, even though none of the 3 classes alone holds at least a 51% interest, the ownership requirement for purposes of this Act is considered to be met. The certification category for the business is that of the class holding the largest ownership interest in the business. If 2 or more classes have equal ownership interests, the certification category shall be determined by the business.

(Source: P.A. 101-601, eff. 1-1-20; 101-657, eff. 1-1-22; 102-29, eff. 6-25-21.)

Section 99. Effective date. This Act takes effect upon becoming law.