Illinois General Assembly - Full Text of SB0339
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Full Text of SB0339  103rd General Assembly




State of Illinois
2023 and 2024


Introduced 2/2/2023, by Sen. Patrick J. Joyce


30 ILCS 500/45-35

    Amends the Illinois Procurement Code. Changes the requirements that must be met by a not-for-profit agency for persons with significant disabilities in order for supplies or services to be procured from that agency without advertising or calling for bids. Deletes a provision that requires such an agency to be certified as a work center by the United States Department of Labor or to be an accredited vocational program that provides transition services to youth under a specified provision of the School Code. Requires such an agency to be either a disability-serving organization accredited by a nationally-recognized accrediting organization or a center for independent living. Effective immediately.

LRB103 25432 HLH 51780 b





SB0339LRB103 25432 HLH 51780 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 45-35 as follows:
6    (30 ILCS 500/45-35)
7    Sec. 45-35. Not-for-profit agencies for persons with
8significant disabilities.
9    (a) Qualification. Supplies and services may be procured
10without advertising or calling for bids from any qualified
11not-for-profit agency for persons with significant
12disabilities that:
13        (1) complies with Illinois laws governing private
14    not-for-profit organizations;
15        (2) (blank); and is certified as a work center by the
16    Wage and Hour Division of the United States Department of
17    Labor or is an accredited vocational program that provides
18    transition services to youth between the ages of 14 1/2
19    and 22 in accordance with individualized education plans
20    under Section 14-8.03 of the School Code and that provides
21    residential services at a child care institution, as
22    defined under Section 2.06 of the Child Care Act of 1969,
23    or at a group home, as defined under Section 2.16 of the



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1    Child Care Act of 1969; and
2        (3) is a disability-serving organization accredited by
3    a nationally-recognized accrediting organization,
4    including the Council of Quality Leadership or the
5    Commission on Accreditation of Rehabilitation Facilities,
6    or is a center for independent living or certified as a
7    developmental training provider by the Department of Human
8    Services.
9    (b) Participation. To participate, the not-for-profit
10agency must have indicated an interest in providing the
11supplies and services, must meet the specifications and needs
12of the using agency, and must set a fair and reasonable price.
13    (c) Committee. There is created within the Department of
14Central Management Services a committee to facilitate the
15purchase of products and services from not-for-profit agencies
16that provide employment opportunities to persons with physical
17disabilities, intellectual or developmental disabilities,
18mental illnesses, or any combination thereof. This committee
19is called the State Use Committee. The State Use Committee
20shall consist of the Director of the Department of Central
21Management Services or his or her designee, the Secretary of
22the Department of Human Services or his or her designee, the
23Director of Commerce and Economic Opportunity or his or her
24designee, one public member representing private business who
25is knowledgeable of the employment needs and concerns of
26persons with developmental disabilities, one public member



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1representing private business who is knowledgeable of the
2needs and concerns of rehabilitation facilities, one public
3member who is knowledgeable of the employment needs and
4concerns of persons with developmental disabilities, one
5public member who is knowledgeable of the needs and concerns
6of rehabilitation facilities, 2 members who have a disability,
72 public members from a statewide association that represents
8community-based rehabilitation facilities serving or
9supporting individuals with intellectual or developmental
10disabilities, and one public member from a disability-focused
11statewide advocacy group, all appointed by the Governor. The
12public members shall serve 2 year terms, commencing upon
13appointment and every 2 years thereafter. A public member may
14be reappointed, and vacancies shall be filled by appointment
15for the completion of the term. In the event there is a vacancy
16on the State Use Committee, the Governor must make an
17appointment to fill that vacancy within 30 calendar days after
18the notice of vacancy. The members shall serve without
19compensation but shall be reimbursed for expenses at a rate
20equal to that of State employees on a per diem basis by the
21Department of Central Management Services. All members shall
22be entitled to vote on issues before the State Use Committee.
23    The State Use Committee shall have the following powers
24and duties:
25        (1) To request from any State agency information as to
26    product specification and service requirements in order to



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1    carry out its purpose.
2        (2) To meet quarterly or more often as necessary to
3    carry out its purposes.
4        (3) To request a quarterly report from each
5    participating qualified not-for-profit agency for persons
6    with significant disabilities describing the volume of
7    sales for each product or service sold under this Section.
8        (4) To prepare a report for the Governor and General
9    Assembly no later than December 31 of each year. The
10    requirement for reporting to the General Assembly shall be
11    satisfied by following the procedures set forth in Section
12    3.1 of the General Assembly Organization Act.
13        (5) To prepare a publication that lists all supplies
14    and services currently available from any qualified
15    not-for-profit agency for persons with significant
16    disabilities. This list and any revisions shall be
17    distributed to all purchasing agencies.
18        (6) To encourage diversity in supplies and services
19    provided by qualified not-for-profit agencies for persons
20    with significant disabilities and discourage unnecessary
21    duplication or competition among not-for-profit agencies.
22        (7) To develop guidelines to be followed by qualifying
23    agencies for participation under the provisions of this
24    Section. Guidelines shall include a list of national
25    accrediting organizations which satisfy the requirements
26    of item (3) of subsection (a) of this Section. The



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1    guidelines shall be developed within 6 months after the
2    effective date of this Code and made available on a
3    nondiscriminatory basis to all qualifying agencies. The
4    new guidelines required under this item (7) by Public Act
5    100-203 shall be developed within 6 months after August
6    18, 2017 (the effective date of Public Act 100-203) and
7    made available on a non-discriminatory basis to all
8    qualifying not-for-profit agencies.
9        (8) To review all pricing submitted under the
10    provisions of this Section and may approve a proposed
11    agreement for supplies or services where the price
12    submitted is fair and reasonable. Review of pricing under
13    this paragraph may include, but is not limited to:
14            (A) Amounts private businesses would pay for
15        similar products or services.
16            (B) Amounts the federal government would pay
17        contractors for similar products or services.
18            (C) The amount paid by the State for similar
19        products or services.
20            (D) The actual cost of manufacturing the product
21        or performing a service at a community rehabilitation
22        program offering employment services on or off
23        premises to persons with disabilities or mental
24        illnesses, with adequate consideration given to legal
25        and moral imperatives to pay workers with disabilities
26        equitable wages.



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1            (E) The usual, customary, and reasonable costs of
2        manufacturing, marketing, and distribution.
3        (9) To, not less than every 3 years, adopt a strategic
4    plan for increasing the number of products and services
5    purchased from qualified not-for-profit agencies for
6    persons with disabilities or mental illnesses, including
7    the feasibility of developing mandatory set-aside
8    contracts.
9    (c-5) Conditions for Use. Each chief procurement officer
10shall, in consultation with the State Use Committee, determine
11which articles, materials, services, food stuffs, and supplies
12that are produced, manufactured, or provided by persons with
13significant disabilities in qualified not-for-profit agencies
14shall be given preference by purchasing agencies procuring
15those items.
16    (d) (Blank).
17    (e) Subcontracts. Subcontracts shall be permitted for
18agreements authorized under this Section. For the purposes of
19this subsection (e), "subcontract" means any acquisition from
20another source of supplies, not including raw materials, or
21services required by a qualified not-for-profit agency to
22provide the supplies or services that are the subject of the
23contract between the State and the qualified not-for-profit
25    The State Use Committee shall develop guidelines to be
26followed by qualified not-for-profit agencies when seeking and



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1establishing subcontracts with other persons or not-for-profit
2agencies in order to fulfill State contract requirements.
3These guidelines shall include the following:
4        (i) The State Use Committee must approve all
5    subcontracts and substantive amendments to subcontracts
6    prior to execution or amendment of the subcontract.
7        (ii) A qualified not-for-profit agency shall not enter
8    into a subcontract, or any combination of subcontracts, to
9    fulfill an entire requirement, contract, or order without
10    written State Use Committee approval.
11        (iii) A qualified not-for-profit agency shall make
12    reasonable efforts to utilize subcontracts with other
13    not-for-profit agencies for persons with significant
14    disabilities.
15        (iv) For any subcontract not currently performed by a
16    qualified not-for-profit agency, the primary qualified
17    not-for-profit agency must provide to the State Use
18    Committee the following: (A) a written explanation as to
19    why the subcontract is not performed by a qualified
20    not-for-profit agency, and (B) a written plan to transfer
21    the subcontract to a qualified not-for-profit agency, as
22    reasonable.
23(Source: P.A. 102-343, eff. 8-13-21; 102-558, eff. 8-20-21.)
24    Section 99. Effective date. This Act takes effect upon
25becoming law.