HB2368 EngrossedLRB103 26061 DTM 52416 b

1    AN ACT concerning State government.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Illinois Procurement Code is amended by
5changing Section 45-45 as follows:
 
6    (30 ILCS 500/45-45)
7    Sec. 45-45. Small businesses.
8    (a) Set-asides. Each chief procurement officer has
9authority to designate as small business set-asides a fair
10proportion of construction, supply, and service contracts for
11award to small businesses in Illinois. Advertisements for bids
12or offers for those contracts shall specify designation as
13small business set-asides. In awarding the contracts, only
14bids or offers from qualified small businesses shall be
15considered.
16    (b) Small business. "Small business" means a business that
17is independently owned and operated and that is not dominant
18in its field of operation. The chief procurement officer shall
19establish a detailed definition by rule, using in addition to
20the foregoing criteria other criteria, including the number of
21employees and the dollar volume of business. When computing
22the size status of a potential contractor, annual sales and
23receipts of the potential contractor and all of its affiliates

 

 

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1shall be included. The maximum number of employees and the
2maximum dollar volume that a small business may have under the
3rules promulgated by the chief procurement officer may vary
4from industry to industry to the extent necessary to reflect
5differing characteristics of those industries, subject to the
6following limitations:
7        (1) No wholesale business is a small business if its
8    annual sales for its most recently completed fiscal year
9    exceed $13,000,000.
10        (2) No retail business or business selling services is
11    a small business if its annual sales and receipts exceed
12    $8,000,000.
13        (3) No manufacturing business is a small business if
14    it employs more than 250 persons.
15        (4) No construction business is a small business if
16    its annual sales and receipts exceed $14,000,000.
17    (c) Fair proportion. For the purpose of subsection (a),
18for State agencies of the executive branch, a fair proportion
19of construction contracts shall be no less than 25% nor more
20than 40% of the annual total contracts for construction.
21    (d) Withdrawal of designation. A small business set-aside
22designation may be withdrawn by the purchasing agency when
23deemed in the best interests of the State. Upon withdrawal,
24all bids or offers shall be rejected, and the bidders or
25offerors shall be notified of the reason for rejection. The
26contract shall then be awarded in accordance with this Code

 

 

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1without the designation of small business set-aside. Each
2chief procurement officer shall make the annual report
3available on his or her official website. Each chief
4procurement officer shall also issue a press release in
5conjunction with the small business annual report that
6includes an executive summary of the annual report and a link
7to the annual report on the chief procurement officer's
8website.
9    (e) Small business specialist. Each chief procurement
10officer shall designate one or more individuals to serve as
11its small business specialist. The small business specialists
12shall collectively work together to accomplish the following
13duties:
14        (1) Compiling and maintaining a comprehensive list of
15    potential small contractors. In this duty, he or she shall
16    cooperate with the Federal Small Business Administration
17    in locating potential sources for various products and
18    services.
19        (2) Assisting small businesses in complying with the
20    procedures for bidding on State contracts.
21        (3) Examining requests from State agencies for the
22    purchase of property or services to help determine which
23    invitations to bid are to be designated small business
24    set-asides.
25        (4) Making recommendations to the chief procurement
26    officer for the simplification of specifications and terms

 

 

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1    in order to increase the opportunities for small business
2    participation.
3        (5) Assisting in investigations by purchasing agencies
4    to determine the responsibility of bidders or offerors on
5    small business set-asides.
6    (f) Small business annual report. Each small business
7specialist designated under subsection (e) shall annually
8before November 1 report in writing to the General Assembly
9concerning the awarding of contracts to small businesses. The
10report shall include the total value of awards made in the
11preceding fiscal year under the designation of small business
12set-aside. The report shall also include the total value of
13awards made to businesses owned by minorities, women, and
14persons with disabilities, as defined in the Business
15Enterprise for Minorities, Women, and Persons with
16Disabilities Act, in the preceding fiscal year under the
17designation of small business set-aside.
18    The requirement for reporting to the General Assembly
19shall be satisfied by filing copies of the report as required
20by Section 3.1 of the General Assembly Organization Act.
21(Source: P.A. 100-43, eff. 8-9-17; 100-391, eff. 8-25-17;
22100-863, eff. 8-14-18.)
 
23    Section 10. The Business Enterprise for Minorities, Women,
24and Persons with Disabilities Act is amended by changing
25Section 8f as follows:
 

 

 

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1    (30 ILCS 575/8f)
2    (Section scheduled to be repealed on June 30, 2024)
3    Sec. 8f. Annual report. The Council shall file no later
4than March 1 of each year, an annual report that shall detail
5the level of achievement toward the goals specified in this
6Act over the 3 most recent fiscal years. The annual report
7shall include, but need not be limited to the following:
8        (1) a summary detailing expenditures subject to the
9    goals, the actual goals specified, and the goals attained
10    by each State agency and public institution of higher
11    education;
12        (2) a summary of the number of contracts awarded and
13    the average contract amount by each State agency and
14    public institution of higher education;
15        (3) an analysis of the level of overall goal
16    achievement concerning purchases from minority-owned
17    businesses, women-owned businesses, and businesses owned
18    by persons with disabilities;
19        (4) an analysis of the number of businesses owned by
20    minorities, women, and persons with disabilities that are
21    certified under the program as well as the number of those
22    businesses that received State procurement contracts; and
23        (5) a summary of the number of contracts awarded to
24    businesses with annual gross sales of less than
25    $1,000,000; of $1,000,000 or more, but less than

 

 

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1    $5,000,000; of $5,000,000 or more, but less than
2    $10,000,000; and of $10,000,000 or more. The Council shall
3    make the annual report available on its official website.
4    The Council shall also issue a press release in
5    conjunction with the annual report that includes an
6    executive summary of the annual report and a link to the
7    annual report on its official website.
8(Source: P.A. 99-462, eff. 8-25-15; 100-391, eff. 8-25-17.)