Illinois General Assembly - Full Text of SB2405
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Full Text of SB2405  102nd General Assembly

SB2405 102ND GENERAL ASSEMBLY

  
  

 


 
102ND GENERAL ASSEMBLY
State of Illinois
2021 and 2022
SB2405

 

Introduced 2/26/2021, by Sen. Napoleon Harris, III

 

SYNOPSIS AS INTRODUCED:
 
30 ILCS 500/50-35
30 ILCS 575/2
30 ILCS 575/4  from Ch. 127, par. 132.604
30 ILCS 575/5  from Ch. 127, par. 132.605

    Amends the Illinois Procurement Code. Requires disclosure of financial interests for all bids and offers from responsive bidders, offerors, vendors, or contractors with an annual value in excess of the specified small purchase threshold under the Code (currently, more than $50,000). Amends the Business Enterprise for Minorities, Women, and Persons with Disabilities Act. Provides that business firms with gross sales in excess of $75,000,000 that are granted certification by the Business Enterprise Council shall be granted certification for the life of the contract including available renewals. Provides further requirements concerning the cure of deficiencies in specified solicitations. Provides for automatic certification under the Act. Requires the Business Enterprise Council to develop and maintain a repository for specified non-certified vendors. Makes conforming and other changes.


LRB102 15390 RJF 20753 b

 

 

A BILL FOR

 

SB2405LRB102 15390 RJF 20753 b

1    AN ACT concerning finance.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Illinois Procurement Code is amended by
5changing Section 50-35 as follows:
 
6    (30 ILCS 500/50-35)
7    Sec. 50-35. Financial disclosure and potential conflicts
8of interest.
9    (a) All bids and offers from responsive bidders, offerors,
10vendors, or contractors with an annual value in excess of the
11identified small purchase threshold established under
12subsection (a) of Section 20-20 of more than $50,000, and all
13submissions to a vendor portal, shall be accompanied by
14disclosure of the financial interests of the bidder, offeror,
15potential contractor, or contractor and each subcontractor to
16be used. In addition, all subcontracts identified as provided
17by Section 20-120 of this Code with an annual value of more
18than $50,000 shall be accompanied by disclosure of the
19financial interests of each subcontractor. The financial
20disclosure of each successful bidder, offeror, potential
21contractor, or contractor and its subcontractors shall be
22incorporated as a material term of the contract and shall
23become part of the publicly available contract or procurement

 

 

SB2405- 2 -LRB102 15390 RJF 20753 b

1file maintained by the appropriate chief procurement officer.
2Each disclosure under this Section shall be signed and made
3under penalty of perjury by an authorized officer or employee
4on behalf of the bidder, offeror, potential contractor,
5contractor, or subcontractor, and must be filed with the
6Procurement Policy Board.
7    (b) Disclosure shall include any ownership or distributive
8income share that is in excess of 5%, or an amount greater than
960% of the annual salary of the Governor, of the disclosing
10entity or its parent entity, whichever is less, unless the
11bidder, offeror, potential contractor, contractor, or
12subcontractor (i) is a publicly traded entity subject to
13Federal 10K reporting, in which case it may submit its 10K
14disclosure in place of the prescribed disclosure, or (ii) is a
15privately held entity that is exempt from Federal 10k
16reporting but has more than 100 shareholders, in which case it
17may submit the information that Federal 10k reporting
18companies are required to report under 17 CFR 229.401 and list
19the names of any person or entity holding any ownership share
20that is in excess of 5% in place of the prescribed disclosure.
21The form of disclosure shall be prescribed by the applicable
22chief procurement officer and must include at least the names,
23addresses, and dollar or proportionate share of ownership of
24each person identified in this Section, their instrument of
25ownership or beneficial relationship, and notice of any
26potential conflict of interest resulting from the current

 

 

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1ownership or beneficial relationship of each individual
2identified in this Section having in addition any of the
3following relationships:
4        (1) State employment, currently or in the previous 3
5    years, including contractual employment of services.
6        (2) State employment of spouse, father, mother, son,
7    or daughter, including contractual employment for services
8    in the previous 2 years.
9        (3) Elective status; the holding of elective office of
10    the State of Illinois, the government of the United
11    States, any unit of local government authorized by the
12    Constitution of the State of Illinois or the statutes of
13    the State of Illinois currently or in the previous 3
14    years.
15        (4) Relationship to anyone holding elective office
16    currently or in the previous 2 years; spouse, father,
17    mother, son, or daughter.
18        (5) Appointive office; the holding of any appointive
19    government office of the State of Illinois, the United
20    States of America, or any unit of local government
21    authorized by the Constitution of the State of Illinois or
22    the statutes of the State of Illinois, which office
23    entitles the holder to compensation in excess of expenses
24    incurred in the discharge of that office currently or in
25    the previous 3 years.
26        (6) Relationship to anyone holding appointive office

 

 

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1    currently or in the previous 2 years; spouse, father,
2    mother, son, or daughter.
3        (7) Employment, currently or in the previous 3 years,
4    as or by any registered lobbyist of the State government.
5        (8) Relationship to anyone who is or was a registered
6    lobbyist in the previous 2 years; spouse, father, mother,
7    son, or daughter.
8        (9) Compensated employment, currently or in the
9    previous 3 years, by any registered election or
10    re-election committee registered with the Secretary of
11    State or any county clerk in the State of Illinois, or any
12    political action committee registered with either the
13    Secretary of State or the Federal Board of Elections.
14        (10) Relationship to anyone; spouse, father, mother,
15    son, or daughter; who is or was a compensated employee in
16    the last 2 years of any registered election or re-election
17    committee registered with the Secretary of State or any
18    county clerk in the State of Illinois, or any political
19    action committee registered with either the Secretary of
20    State or the Federal Board of Elections.
21    (b-1) The disclosure required under this Section must also
22include the name and address of each lobbyist required to
23register under the Lobbyist Registration Act and other agent
24of the bidder, offeror, potential contractor, contractor, or
25subcontractor who is not identified under subsections (a) and
26(b) and who has communicated, is communicating, or may

 

 

SB2405- 5 -LRB102 15390 RJF 20753 b

1communicate with any State officer or employee concerning the
2bid or offer. The disclosure under this subsection is a
3continuing obligation and must be promptly supplemented for
4accuracy throughout the process and throughout the term of the
5contract if the bid or offer is successful.
6    (b-2) The disclosure required under this Section must also
7include, for each of the persons identified in subsection (b)
8or (b-1), each of the following that occurred within the
9previous 10 years: suspension or debarment from contracting
10with any governmental entity; professional licensure
11discipline; bankruptcies; adverse civil judgments and
12administrative findings; and criminal felony convictions. The
13disclosure under this subsection is a continuing obligation
14and must be promptly supplemented for accuracy throughout the
15process and throughout the term of the contract if the bid or
16offer is successful.
17    (c) The disclosure in subsection (b) is not intended to
18prohibit or prevent any contract. The disclosure is meant to
19fully and publicly disclose any potential conflict to the
20chief procurement officers, State purchasing officers, their
21designees, and executive officers so they may adequately
22discharge their duty to protect the State.
23    (d) When a potential for a conflict of interest is
24identified, discovered, or reasonably suspected, the chief
25procurement officer or State procurement officer shall send
26the contract to the Procurement Policy Board. In accordance

 

 

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1with the objectives of subsection (c), if the Procurement
2Policy Board finds evidence of a potential conflict of
3interest not originally disclosed by the bidder, offeror,
4potential contractor, contractor, or subcontractor, the Board
5shall provide written notice to the bidder, offeror, potential
6contractor, contractor, or subcontractor that is identified,
7discovered, or reasonably suspected of having a potential
8conflict of interest. The bidder, offeror, potential
9contractor, contractor, or subcontractor shall have 15
10calendar days to respond in writing to the Board, and a hearing
11before the Board will be granted upon request by the bidder,
12offeror, potential contractor, contractor, or subcontractor,
13at a date and time to be determined by the Board, but which in
14no event shall occur later than 15 calendar days after the date
15of the request. Upon consideration, the Board shall recommend,
16in writing, whether to allow or void the contract, bid, offer,
17or subcontract weighing the best interest of the State of
18Illinois. All recommendations shall be submitted to the
19Executive Ethics Commission. The Executive Ethics Commission
20must hold a public hearing within 30 calendar days after
21receiving the Board's recommendation if the Procurement Policy
22Board makes a recommendation to (i) void a contract or (ii)
23void a bid or offer and the chief procurement officer selected
24or intends to award the contract to the bidder, offeror, or
25potential contractor. A chief procurement officer is
26prohibited from awarding a contract before a hearing if the

 

 

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1Board recommendation does not support a bid or offer. The
2recommendation and proceedings of any hearing, if applicable,
3shall be available to the public.
4    (e) These thresholds and disclosure do not relieve the
5chief procurement officer, the State purchasing officer, or
6their designees from reasonable care and diligence for any
7contract, bid, offer, or submission to a vendor portal. The
8chief procurement officer, the State purchasing officer, or
9their designees shall be responsible for using any reasonably
10known and publicly available information to discover any
11undisclosed potential conflict of interest and act to protect
12the best interest of the State of Illinois.
13    (f) Inadvertent or accidental failure to fully disclose
14shall render the contract, bid, offer, proposal, subcontract,
15or relationship voidable by the chief procurement officer if
16he or she deems it in the best interest of the State of
17Illinois and, at his or her discretion, may be cause for
18barring from future contracts, bids, offers, proposals,
19subcontracts, or relationships with the State for a period of
20up to 2 years.
21    (g) Intentional, willful, or material failure to disclose
22shall render the contract, bid, offer, proposal, subcontract,
23or relationship voidable by the chief procurement officer if
24he or she deems it in the best interest of the State of
25Illinois and shall result in debarment from future contracts,
26bids, offers, proposals, subcontracts, or relationships for a

 

 

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1period of not less than 2 years and not more than 10 years.
2Reinstatement after 2 years and before 10 years must be
3reviewed and commented on in writing by the Governor of the
4State of Illinois, or by an executive ethics board or
5commission he or she might designate. The comment shall be
6returned to the responsible chief procurement officer who must
7rule in writing whether and when to reinstate.
8    (h) In addition, all disclosures shall note any other
9current or pending contracts, bids, offers, proposals,
10subcontracts, leases, or other ongoing procurement
11relationships the bidder, offeror, potential contractor,
12contractor, or subcontractor has with any other unit of State
13government and shall clearly identify the unit and the
14contract, offer, proposal, lease, or other relationship.
15    (i) The bidder, offeror, potential contractor, or
16contractor has a continuing obligation to supplement the
17disclosure required by this Section throughout the bidding
18process during the term of any contract, and during the vendor
19portal registration process.
20(Source: P.A. 97-490, eff. 8-22-11; 97-895, eff. 8-3-12;
2198-1076, eff. 1-1-15.)
 
22    Section 10. The Business Enterprise for Minorities, Women,
23and Persons with Disabilities Act is amended by changing
24Sections 2, 4, and 5 as follows:
 

 

 

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1    (30 ILCS 575/2)
2    (Section scheduled to be repealed on June 30, 2024)
3    Sec. 2. Definitions.
4    (A) For the purpose of this Act, the following terms shall
5have the following definitions:
6        (1) "Minority person" shall mean a person who is a
7    citizen or lawful permanent resident of the United States
8    and who is any of the following:
9            (a) American Indian or Alaska Native (a person
10        having origins in any of the original peoples of North
11        and South America, including Central America, and who
12        maintains tribal affiliation or community attachment).
13            (b) Asian (a person having origins in any of the
14        original peoples of the Far East, Southeast Asia, or
15        the Indian subcontinent, including, but not limited
16        to, Cambodia, China, India, Japan, Korea, Malaysia,
17        Pakistan, the Philippine Islands, Thailand, and
18        Vietnam).
19            (c) Black or African American (a person having
20        origins in any of the black racial groups of Africa).
21            (d) Hispanic or Latino (a person of Cuban,
22        Mexican, Puerto Rican, South or Central American, or
23        other Spanish culture or origin, regardless of race).
24            (e) Native Hawaiian or Other Pacific Islander (a
25        person having origins in any of the original peoples
26        of Hawaii, Guam, Samoa, or other Pacific Islands).

 

 

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1        (2) "Woman" shall mean a person who is a citizen or
2    lawful permanent resident of the United States and who is
3    of the female gender.
4        (2.05) "Person with a disability" means a person who
5    is a citizen or lawful resident of the United States and is
6    a person qualifying as a person with a disability under
7    subdivision (2.1) of this subsection (A).
8        (2.1) "Person with a disability" means a person with a
9    severe physical or mental disability that:
10            (a) results from:
11            amputation,
12            arthritis,
13            autism,
14            blindness,
15            burn injury,
16            cancer,
17            cerebral palsy,
18            Crohn's disease,
19            cystic fibrosis,
20            deafness,
21            head injury,
22            heart disease,
23            hemiplegia,
24            hemophilia,
25            respiratory or pulmonary dysfunction,
26            an intellectual disability,

 

 

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1            mental illness,
2            multiple sclerosis,
3            muscular dystrophy,
4            musculoskeletal disorders,
5            neurological disorders, including stroke and
6        epilepsy,
7            paraplegia,
8            quadriplegia and other spinal cord conditions,
9            sickle cell anemia,
10            ulcerative colitis,
11            specific learning disabilities, or
12            end stage renal failure disease; and
13            (b) substantially limits one or more of the
14        person's major life activities.
15        Another disability or combination of disabilities may
16    also be considered as a severe disability for the purposes
17    of item (a) of this subdivision (2.1) if it is determined
18    by an evaluation of rehabilitation potential to cause a
19    comparable degree of substantial functional limitation
20    similar to the specific list of disabilities listed in
21    item (a) of this subdivision (2.1).
22        (3) "Minority-owned business" means a business which
23    is at least 51% owned by one or more minority persons, or
24    in the case of a corporation, at least 51% of the stock in
25    which is owned by one or more minority persons; and the
26    management and daily business operations of which are

 

 

SB2405- 12 -LRB102 15390 RJF 20753 b

1    controlled by one or more of the minority individuals who
2    own it.
3        (4) "Women-owned business" means a business which is
4    at least 51% owned by one or more women, or, in the case of
5    a corporation, at least 51% of the stock in which is owned
6    by one or more women; and the management and daily
7    business operations of which are controlled by one or more
8    of the women who own it.
9        (4.1) "Business owned by a person with a disability"
10    means a business that is at least 51% owned by one or more
11    persons with a disability and the management and daily
12    business operations of which are controlled by one or more
13    of the persons with disabilities who own it. A
14    not-for-profit agency for persons with disabilities that
15    is exempt from taxation under Section 501 of the Internal
16    Revenue Code of 1986 is also considered a "business owned
17    by a person with a disability".
18        (4.2) "Council" means the Business Enterprise Council
19    for Minorities, Women, and Persons with Disabilities
20    created under Section 5 of this Act.
21        (5) "State contracts" means all contracts entered into
22    by the State, any agency or department thereof, or any
23    public institution of higher education, including
24    community college districts, regardless of the source of
25    the funds with which the contracts are paid, which are not
26    subject to federal reimbursement. "State contracts" does

 

 

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1    not include contracts awarded by a retirement system,
2    pension fund, or investment board subject to Section
3    1-109.1 of the Illinois Pension Code. This definition
4    shall control over any existing definition under this Act
5    or applicable administrative rule.
6        "State construction contracts" means all State
7    contracts entered into by a State agency or public
8    institution of higher education for the repair,
9    remodeling, renovation or construction of a building or
10    structure, or for the construction or maintenance of a
11    highway defined in Article 2 of the Illinois Highway Code.
12        (6) "State agencies" shall mean all departments,
13    officers, boards, commissions, institutions and bodies
14    politic and corporate of the State, but does not include
15    the Board of Trustees of the University of Illinois, the
16    Board of Trustees of Southern Illinois University, the
17    Board of Trustees of Chicago State University, the Board
18    of Trustees of Eastern Illinois University, the Board of
19    Trustees of Governors State University, the Board of
20    Trustees of Illinois State University, the Board of
21    Trustees of Northeastern Illinois University, the Board of
22    Trustees of Northern Illinois University, the Board of
23    Trustees of Western Illinois University, municipalities or
24    other local governmental units, or other State
25    constitutional officers.
26        (7) "Public institutions of higher education" means

 

 

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1    the University of Illinois, Southern Illinois University,
2    Chicago State University, Eastern Illinois University,
3    Governors State University, Illinois State University,
4    Northeastern Illinois University, Northern Illinois
5    University, Western Illinois University, the public
6    community colleges of the State, and any other public
7    universities, colleges, and community colleges now or
8    hereafter established or authorized by the General
9    Assembly.
10        (8) "Certification" means a determination made by the
11    Council or by one delegated authority from the Council to
12    make certifications, or by a State agency with statutory
13    authority to make such a certification, that a business
14    entity is a business owned by a minority, woman, or person
15    with a disability for whatever purpose. A business owned
16    and controlled by women shall be certified as a
17    "woman-owned business". A business owned and controlled by
18    women who are also minorities shall be certified as both a
19    "women-owned business" and a "minority-owned business".
20        (9) "Control" means the exclusive or ultimate and sole
21    control of the business including, but not limited to,
22    capital investment and all other financial matters,
23    property, acquisitions, contract negotiations, legal
24    matters, officer-director-employee selection and
25    comprehensive hiring, operating responsibilities,
26    cost-control matters, income and dividend matters,

 

 

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1    financial transactions and rights of other shareholders or
2    joint partners. Control shall be real, substantial and
3    continuing, not pro forma. Control shall include the power
4    to direct or cause the direction of the management and
5    policies of the business and to make the day-to-day as
6    well as major decisions in matters of policy, management
7    and operations. Control shall be exemplified by possessing
8    the requisite knowledge and expertise to run the
9    particular business and control shall not include simple
10    majority or absentee ownership.
11        (10) "Business" means a business that has annual gross
12    sales of less than $75,000,000 as evidenced by the federal
13    income tax return of the business. A firm with gross sales
14    in excess of this cap may apply to the Council for
15    certification for a particular contract if the firm can
16    demonstrate that the contract would have significant
17    impact on businesses owned by minorities, women, or
18    persons with disabilities as suppliers or subcontractors
19    or in employment of minorities, women, or persons with
20    disabilities. Firms with gross sales in excess of this cap
21    that are granted certification by the Council shall be
22    granted certification for the life of the contract
23    including available renewals.
24        (11) "Utilization plan" means a form and additional
25    documentations included in all bids or proposals that
26    demonstrates a vendor's proposed utilization of vendors

 

 

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1    certified by the Business Enterprise Program to meet the
2    targeted goal. The utilization plan shall demonstrate that
3    the Vendor has either: (1) met the entire contract goal or
4    (2) requested a full or partial waiver and made good faith
5    efforts towards meeting the goal.
6        (12) "Business Enterprise Program" means the Business
7    Enterprise Program of the Department of Central Management
8    Services.
9    (B) When a business is owned at least 51% by any
10combination of minority persons, women, or persons with
11disabilities, even though none of the 3 classes alone holds at
12least a 51% interest, the ownership requirement for purposes
13of this Act is considered to be met. The certification
14category for the business is that of the class holding the
15largest ownership interest in the business. If 2 or more
16classes have equal ownership interests, the certification
17category shall be determined by the business.
18(Source: P.A. 100-391, eff. 8-25-17; 101-601, eff. 1-1-20.)
 
19    (30 ILCS 575/4)  (from Ch. 127, par. 132.604)
20    (Section scheduled to be repealed on June 30, 2024)
21    Sec. 4. Award of State contracts.
22    (a) Except as provided in subsection (b), not less than
2320% of the total dollar amount of State contracts, as defined
24by the Secretary of the Council and approved by the Council,
25shall be established as an aspirational goal to be awarded to

 

 

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1businesses owned by minorities, women, and persons with
2disabilities; provided, however, that of the total amount of
3all State contracts awarded to businesses owned by minorities,
4women, and persons with disabilities pursuant to this Section,
5contracts representing at least 11% shall be awarded to
6businesses owned by minorities, contracts representing at
7least 7% shall be awarded to women-owned businesses, and
8contracts representing at least 2% shall be awarded to
9businesses owned by persons with disabilities.
10    The above percentage relates to the total dollar amount of
11State contracts during each State fiscal year, calculated by
12examining independently each type of contract for each agency
13or public institutions of higher education which lets such
14contracts. Only that percentage of arrangements which
15represents the participation of businesses owned by
16minorities, women, and persons with disabilities on such
17contracts shall be included. State contracts subject to the
18requirements of this Act shall include the requirement that
19only expenditures to businesses owned by minorities, women,
20and persons with disabilities that perform a commercially
21useful function may be counted toward the goals set forth by
22this Act. Contracts shall include a definition of
23"commercially useful function" that is consistent with 49 CFR
2426.55(c).
25    (b) Not less than 20% of the total dollar amount of State
26construction contracts is established as an aspirational goal

 

 

SB2405- 18 -LRB102 15390 RJF 20753 b

1to be awarded to businesses owned by minorities, women, and
2persons with disabilities; provided that, contracts
3representing at least 11% of the total dollar amount of State
4construction contracts shall be awarded to businesses owned by
5minorities; contracts representing at least 7% of the total
6dollar amount of State construction contracts shall be awarded
7to women-owned businesses; and contracts representing at least
82% of the total dollar amount of State construction contracts
9shall be awarded to businesses owned by persons with
10disabilities.
11    (c) (Blank).
12    (d) Within one year after April 28, 2009 (the effective
13date of Public Act 96-8), the Department of Central Management
14Services shall conduct a social scientific study that measures
15the impact of discrimination on minority and women business
16development in Illinois. Within 18 months after April 28, 2009
17(the effective date of Public Act 96-8), the Department shall
18issue a report of its findings and any recommendations on
19whether to adjust the goals for minority and women
20participation established in this Act. Copies of this report
21and the social scientific study shall be filed with the
22Governor and the General Assembly.
23    By December 1, 2020, the Department of Central Management
24Services shall conduct a new social scientific study that
25measures the impact of discrimination on minority and women
26business development in Illinois. By June 1, 2022, the

 

 

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1Department shall issue a report of its findings and any
2recommendations on whether to adjust the goals for minority
3and women participation established in this Act. Copies of
4this report and the social scientific study shall be filed
5with the Governor, the Advisory Board, and the General
6Assembly. By December 1, 2022, the Department of Central
7Management Services Business Enterprise Program shall develop
8a model for social scientific disparity study sourcing for
9local governmental units to adapt and implement to address
10regional disparities in public procurement.
11    (e) Except as permitted under this Act or as otherwise
12mandated by federal law or regulation, those who submit bids
13or proposals for State contracts subject to the provisions of
14this Act, whose bids or proposals are successful and include a
15utilization plan but that fail to meet the goals set forth in
16subsection (b) of this Section, shall be notified of that
17deficiency and shall be afforded a period not to exceed 10
18calendar days from the date of notification to cure that
19deficiency in the bid or proposal. The deficiency in the bid or
20proposal may only be cured by contracting with additional
21subcontractors who are owned by minorities or women. Any
22increase in cost to a contract for the addition of a
23subcontractor to cure a bid's deficiency shall not affect the
24bid price, shall not be used in the request for an exemption in
25this Act, and in no case shall an identified subcontractor
26with a certification made pursuant to this Act be terminated

 

 

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1from the contract without the written consent of the State
2agency or public institution of higher education entering into
3the contract.
4    (f) Non-construction solicitations that include Business
5Enterprise Program participation goals shall require bidders
6and offerors to include utilization plans. Utilization plans
7are due at the time of bid or offer submission. Failure to
8complete and include a utilization plan, including
9documentation demonstrating good faith effort when requesting
10a waiver, shall render the bid or offer non-responsive.
11    Except as permitted under this Act or as otherwise
12mandated by federal regulation, those who submit bids or
13proposals for State contracts, whose bids or proposals are
14successful and include a completed utilization plan with an
15established goal, but fail to meet the goals set forth in the
16solicitation, shall be notified of the deficiency by the
17contracting agency or public institution of higher education
18allowing the cure and shall be afforded a period not to exceed
1910 calendar days from the date of notification to cure that
20deficiency in the bid or proposal. The deficiency in the bid or
21proposal may only be cured by contracting with additional
22subcontractors who are certified by the Business Enterprise
23Program, or by increasing the work to be performed by
24previously identified vendors certified by the Business
25Enterprise Program.
26    Deficiencies that may be cured include: (i) obvious

 

 

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1mistakes, such as transposed numbers; (ii) correct information
2submitted in the wrong form or format; (iii) failure to use or
3adequately document all good faith effort actions identified
4in the utilization plan or instructions; or (iv) proposing a
5firm whose certification has lapsed or whose certification is
6not yet recognized by the Business Enterprise Program. Cure is
7not authorized if the bidder or offeror submits a blank
8utilization plan, a utilization plan that shows lack of
9reasonable effort to complete the form on time, or a
10utilization plan that states the contract will be
11self-performed, by a non-certified vendor, without showing
12good faith effort and request for waiver. All cure activity
13shall address the deficiencies identified by the procuring
14agency and shall require clear documentation, including that
15of good faith efforts, to address those deficiencies. Any
16increase in cost to a contract for the addition of a
17subcontractor to cure a bid's deficiency shall not affect the
18bid price, shall not be used in the request for an exemption
19under this Act, and in no case shall an identified
20subcontractor with a Business Enterprise Program certification
21made under this Act be terminated from the contract without
22the written consent of the State agency or public institution
23of higher education entering into the contract. The procuring
24agency or public institution of higher education shall make
25the determination whether the cure is adequate.
26(Source: P.A. 100-391, eff. 8-25-17; 101-170, eff. 1-1-20;

 

 

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1101-601, eff. 1-1-20; revised 10-26-20.)
 
2    (30 ILCS 575/5)  (from Ch. 127, par. 132.605)
3    (Section scheduled to be repealed on June 30, 2024)
4    Sec. 5. Business Enterprise Council.
5    (1) To help implement, monitor, and enforce the goals of
6this Act, there is created the Business Enterprise Council for
7Minorities, Women, and Persons with Disabilities, hereinafter
8referred to as the Council, composed of the Secretary of Human
9Services and the Directors of the Department of Human Rights,
10the Department of Commerce and Economic Opportunity, the
11Department of Central Management Services, the Department of
12Transportation and the Capital Development Board, or their
13duly appointed representatives, with the Comptroller, or his
14or her designee, serving as an advisory member of the Council.
15Ten individuals representing businesses that are
16minority-owned, or women-owned, or owned by persons with
17disabilities, 2 individuals representing the business
18community, and a representative of public institutions of
19higher education shall be appointed by the Governor. These
20members shall serve 2-year 2 year terms and shall be eligible
21for reappointment. Any vacancy occurring on the Council shall
22also be filled by the Governor. Any member appointed to fill a
23vacancy occurring prior to the expiration of the term for
24which his or her predecessor was appointed shall be appointed
25for the remainder of such term. Members of the Council shall

 

 

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1serve without compensation but shall be reimbursed for any
2ordinary and necessary expenses incurred in the performance of
3their duties.
4    The Director of the Department of Central Management
5Services shall serve as the Council chairperson and shall
6select, subject to approval of the council, a Secretary
7responsible for the operation of the program who shall serve
8as the Division Manager of the Business Enterprise for
9Minorities, Women, and Persons with Disabilities Division of
10the Department of Central Management Services.
11    The Director of each State agency and the chief executive
12officer of each public institution institutions of higher
13education shall appoint a liaison to the Council. The liaison
14shall be responsible for submitting to the Council any reports
15and documents necessary under this Act.
16    (2) The Council's authority and responsibility shall be
17to:
18        (a) Devise a certification procedure to assure that
19    businesses taking advantage of this Act are legitimately
20    classified as businesses owned by minorities, women, or
21    persons with disabilities and a registration procedure to
22    recognize, without additional evidence of Business
23    Enterprise Program eligibility, the certification of
24    businesses owned by minorities, women, or persons with
25    disabilities certified by the City of Chicago, Cook
26    County, or other jurisdictional programs with requirements

 

 

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1    and procedures equaling or exceeding those in this Act.
2        (b) Maintain a list of all businesses legitimately
3    classified as businesses owned by minorities, women, or
4    persons with disabilities to provide to State agencies and
5    public institutions of higher education.
6        (c) Review rules and regulations for the
7    implementation of the program for businesses owned by
8    minorities, women, and persons with disabilities.
9        (d) Review compliance plans submitted by each State
10    agency and public institution institutions of higher
11    education pursuant to this Act.
12        (e) Make annual reports as provided in Section 8f to
13    the Governor and the General Assembly on the status of the
14    program.
15        (f) Serve as a central clearinghouse for information
16    on State contracts, including the maintenance of a list of
17    all pending State contracts upon which businesses owned by
18    minorities, women, and persons with disabilities may bid.
19    At the Council's discretion, maintenance of the list may
20    include 24-hour electronic access to the list along with
21    the bid and application information.
22        (g) Establish a toll-free toll free telephone number
23    to facilitate information requests concerning the
24    certification process and pending contracts.
25        (h) Adopt a procedure to grant automatic certification
26    to businesses holding a certification from at least one of

 

 

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1    the following entities: (i) the Illinois Unified
2    Certification Program; (ii) the Women's Business
3    Development Center in Chicago; (iii) the Chicago Minority
4    Supplier Development Council; or (iv) any other similar
5    entity offering such certification to businesses.
6        (i) Develop and maintain a repository for
7    non-certified vendors that: (i) have applied for
8    certification and have been denied; (ii) have started, but
9    not completed, the certification process; (iii) have
10    achieved certification, but did not seek renewal; or (iv)
11    are known businesses owned by minorities, women, or
12    persons with disabilities.
13    (3) No premium bond rate of a surety company for a bond
14required of a business owned by a minority, woman, or person
15with a disability bidding for a State contract shall be higher
16than the lowest rate charged by that surety company for a
17similar bond in the same classification of work that would be
18written for a business not owned by a minority, woman, or
19person with a disability.
20    (4) Any Council member who has direct financial or
21personal interest in any measure pending before the Council
22shall disclose this fact to the Council and refrain from
23participating in the determination upon such measure.
24    (5) The Secretary shall have the following duties and
25responsibilities:
26        (a) To be responsible for the day-to-day operation of

 

 

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1    the Council.
2        (b) To serve as a coordinator for all of the State's
3    programs for businesses owned by minorities, women, and
4    persons with disabilities and as the information and
5    referral center for all State initiatives for businesses
6    owned by minorities, women, and persons with disabilities.
7        (c) To establish an enforcement procedure whereby the
8    Council may recommend to the appropriate State legal
9    officer that the State exercise its legal remedies which
10    shall include (1) termination of the contract involved,
11    (2) prohibition of participation by the respondent in
12    public contracts for a period not to exceed 3 years, (3)
13    imposition of a penalty not to exceed any profit acquired
14    as a result of violation, or (4) any combination thereof.
15    Such procedures shall require prior approval by Council.
16    All funds collected as penalties under this subsection
17    shall be used exclusively for maintenance and further
18    development of the Business Enterprise Program and
19    encouragement of participation in State procurement by
20    minorities, women, and persons with disabilities.
21        (d) To devise appropriate policies, regulations, and
22    procedures for including participation by businesses owned
23    by minorities, women, and persons with disabilities as
24    prime contractors, including, but not limited to: , (i)
25    encouraging the inclusions of qualified businesses owned
26    by minorities, women, and persons with disabilities on

 

 

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1    solicitation lists, (ii) investigating the potential of
2    blanket bonding programs for small construction jobs, and
3    (iii) investigating and making recommendations concerning
4    the use of the sheltered market process.
5        (e) To devise procedures for the waiver of the
6    participation goals in appropriate circumstances.
7        (f) To accept donations and, with the approval of the
8    Council or the Director of Central Management Services,
9    grants related to the purposes of this Act; to conduct
10    seminars related to the purpose of this Act and to charge
11    reasonable registration fees; and to sell directories,
12    vendor lists, and other such information to interested
13    parties, except that forms necessary to become eligible
14    for the program shall be provided free of charge to a
15    business or individual applying for the program.
16(Source: P.A. 100-391, eff. 8-25-17; 100-801, eff. 8-10-18;
17101-601, eff. 1-1-20; revised 8-18-20.)