Full Text of SB2365 100th General Assembly
SB2365eng 100TH GENERAL ASSEMBLY |
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| 1 | | AN ACT concerning government.
| 2 | | Be it enacted by the People of the State of Illinois, | 3 | | represented in the General Assembly:
| 4 | | Section 5. The Illinois Procurement Code is amended by | 5 | | changing Section 20-60 and by adding Sections 20-7 and 50-80 as | 6 | | follows: | 7 | | (30 ILCS 500/20-7 new) | 8 | | Sec. 20-7. Method of scoring. | 9 | | (a) All procurement scoring rubrics for contracts entered | 10 | | into under this Code shall account for and allocate 20% of the | 11 | | total available points towards evaluation of each respondent's | 12 | | commitment to diversity, and shall require supporting | 13 | | documentation to that purpose. | 14 | | (b) The scoring rubric requirements established under this | 15 | | Section shall include, but not be limited to, the following: | 16 | | (1) for publicly owned businesses, the number and | 17 | | percentage of members of the respondent's governance board | 18 | | who are women, minorities, or persons with disabilities; | 19 | | (2) for privately owned businesses, the respondent | 20 | | shall identify whether it or its affiliates are managed by | 21 | | women, minorities, or persons with disabilities. For the | 22 | | purposes of this paragraph (2), "managed by women, | 23 | | minorities, or persons with disabilities" means being |
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| 1 | | owned or managed by a 51% or more combination of women, | 2 | | minorities, or persons with disabilities; | 3 | | (3) the respondent shall provide the number and | 4 | | percentage of the respondent's owners and managers who are | 5 | | women, minorities, or persons with disabilities; | 6 | | (4) the number and percentage of the respondent's | 7 | | senior executive leaders, including partner, president, | 8 | | chief operating officer, managing director, or other | 9 | | senior executives, who are women, minorities, military | 10 | | veterans, or persons with disabilities; | 11 | | (5) the number and percentage of the respondent's | 12 | | staff, including both full-time and part-time employees, | 13 | | who are women, minorities, or persons with disabilities; | 14 | | and | 15 | | (6) the respondent's intended use of subcontractors | 16 | | for a project, if any, that are women, minorities, or | 17 | | persons with disabilities. | 18 | | (c) When a solicitation, including solicitations for sole | 19 | | source contracts and contracts with group purchasing | 20 | | organizations, is issued by any State agency or public | 21 | | institution of higher education and falls within a service or | 22 | | product offering that has a history of disparate awards to a | 23 | | class of business owners that are identified under the Business | 24 | | Enterprise Program Act, the scoring rubric allocation | 25 | | identified under subsection (a) shall be 30% of the total | 26 | | available points towards evaluation of each respondent's |
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| 1 | | commitment to diversity. | 2 | | (d) If any State agency contract is eligible to be paid | 3 | | for, in whole or in part, with federal-aid funds, grants, or | 4 | | loans, and the provisions of this Section would result in the | 5 | | loss of those federal-aid funds, grants, or loans, then the | 6 | | contract is exempt from the provisions of this Section in order | 7 | | to remain eligible for those federal-aid funds, grants, or | 8 | | loans. | 9 | | (30 ILCS 500/20-60) | 10 | | Sec. 20-60. Duration of contracts. | 11 | | (a) Maximum duration. A contract may be entered into for
| 12 | | any period of time deemed
to be in the best interests of the | 13 | | State but not
exceeding 10 years inclusive, beginning January | 14 | | 1, 2010, of proposed contract renewals. The length of
a lease | 15 | | for real property or capital improvements shall be in
| 16 | | accordance with the provisions of
Section 40-25. The length of | 17 | | energy conservation program contracts or energy savings | 18 | | contracts or leases shall be in accordance with the provisions | 19 | | of Section 25-45. A contract for bond or mortgage insurance | 20 | | awarded by the Illinois Housing Development Authority, | 21 | | however, may be entered into for any period of time less than | 22 | | or equal to the maximum period of time that the subject bond or | 23 | | mortgage may remain outstanding.
| 24 | | (b) Subject to appropriation. All contracts made or entered
| 25 | | into shall recite that they are
subject to termination and |
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| 1 | | cancellation in any year for which the
General Assembly fails | 2 | | to make
an appropriation to make payments under the terms of | 3 | | the contract. | 4 | | (c) The chief procurement officer shall file a proposed | 5 | | extension or renewal of a contract with the Procurement Policy | 6 | | Board prior to entering into any extension or renewal if the | 7 | | cost associated with the extension or renewal exceeds $249,999. | 8 | | The Procurement Policy Board may object to the proposed | 9 | | extension or renewal within 30 calendar days and require a | 10 | | hearing before the Board prior to entering into the extension | 11 | | or renewal. If the Procurement Policy Board does not object | 12 | | within 30 calendar days or takes affirmative action to | 13 | | recommend the extension or renewal, the chief procurement | 14 | | officer may enter into the extension or renewal of a contract. | 15 | | This subsection does not apply to any emergency procurement, | 16 | | any procurement under Article 40, or any procurement exempted | 17 | | by Section 1-10(b) of this Code. If any State agency contract | 18 | | is paid for in whole or in part with federal-aid funds, grants, | 19 | | or loans and the provisions of this subsection would result in | 20 | | the loss of those federal-aid funds, grants, or loans, then the | 21 | | contract is exempt from the provisions of this subsection in | 22 | | order to remain eligible for those federal-aid funds, grants, | 23 | | or loans, and the State agency shall file notice of this | 24 | | exemption with the Procurement Policy Board prior to entering | 25 | | into the proposed extension or renewal. Nothing in this | 26 | | subsection permits a chief procurement officer to enter into an |
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| 1 | | extension or renewal in violation of subsection (a). By August | 2 | | 1 each year, the Procurement Policy Board shall file a report | 3 | | with the General Assembly identifying for the previous fiscal | 4 | | year (i) the proposed extensions or renewals that were filed | 5 | | with the Board and whether the Board objected and (ii) the | 6 | | contracts exempt from this subsection. | 7 | | (d) No vendor shall be eligible for renewal of a contract | 8 | | when that vendor has failed to meet the Business Enterprise | 9 | | Program spending goal specified under the contract, and that | 10 | | vendor is not otherwise excused from compliance under the | 11 | | Business Enterprise Program Act. This subsection (d) does not | 12 | | apply to the renewal of contracts for construction or | 13 | | construction-related services. | 14 | | (Source: P.A. 100-23, eff. 7-6-17.) | 15 | | (30 ILCS 500/50-80 new) | 16 | | Sec. 50-80. Diversity training; report. | 17 | | (a) All employees under each Chief Procurement Officer, as | 18 | | defined under Section 1-15.15, shall complete annual training | 19 | | for diversity and inclusion as prescribed by the Chief | 20 | | Procurement Officer in consultation with the Business | 21 | | Enterprise Council. | 22 | | (b) Each Chief Procurement Officer shall submit to the | 23 | | Business Enterprise Council an annual report that summarizes | 24 | | diversity training that was completed during the previous year, | 25 | | and lays out the plan for the diversity training programs in |
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| 1 | | the coming year. Each Chief Procurement Officer shall also | 2 | | submit to the Executive Ethics Commission an annual report | 3 | | detailing the current status of its diversity efforts, and an | 4 | | action plan to increase diversity internally within their | 5 | | respective offices.
| 6 | | Section 10. The Business Enterprise for Minorities, Women, | 7 | | and Persons with
Disabilities Act is amended by changing | 8 | | Sections 4f and 6 as follows: | 9 | | (30 ILCS 575/4f) | 10 | | (Section scheduled to be repealed on June 30, 2020) | 11 | | Sec. 4f. Award of State contracts. | 12 | | (1) It is hereby declared to be the public policy of the | 13 | | State of Illinois to promote and encourage each State agency | 14 | | and public institution of higher education to use businesses | 15 | | owned by minorities, women, and persons with disabilities in | 16 | | the area of goods and services, including, but not limited to, | 17 | | insurance services, investment management services, | 18 | | information technology services, accounting services, | 19 | | architectural and engineering services, and legal services. | 20 | | Furthermore, each State agency and public institution of higher | 21 | | education shall utilize such firms to the greatest extent | 22 | | feasible within the bounds of financial and fiduciary prudence, | 23 | | and take affirmative steps to remove any barriers to the full | 24 | | participation of such firms in the procurement and contracting |
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| 1 | | opportunities afforded. | 2 | | (a) When a State agency or public institution of higher | 3 | | education, other than a community college, awards a | 4 | | contract for insurance services, for each State agency or | 5 | | public institution of higher education, it shall be the | 6 | | aspirational goal to use insurance brokers owned by | 7 | | minorities, women, and persons with disabilities as | 8 | | defined by this Act, for not less than 20% of the total | 9 | | annual premiums or fees. | 10 | | (b) When a State agency or public institution of higher | 11 | | education, other than a community college, awards a | 12 | | contract for investment services, for each State agency or | 13 | | public institution of higher education, it shall be the | 14 | | aspirational goal to use emerging investment managers | 15 | | owned by minorities, women, and persons with disabilities | 16 | | as defined by this Act, for not less than 20% of the total | 17 | | funds under management. Furthermore, it is the | 18 | | aspirational goal that not less than 20% of the direct | 19 | | asset managers of the State funds be minorities, women, and | 20 | | persons with disabilities. | 21 | | (c) When a State agency or public institution of higher | 22 | | education, other than a community college, awards | 23 | | contracts for information technology services, accounting | 24 | | services, architectural and engineering services, and | 25 | | legal services, for each State agency and public | 26 | | institution of higher education, it shall be the |
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| 1 | | aspirational goal to use such firms owned by minorities, | 2 | | women, and persons with disabilities as defined by this Act | 3 | | and lawyers who are minorities, women, and persons with | 4 | | disabilities as defined by this Act, for not less than 20% | 5 | | of the total dollar amount of State contracts. In the case | 6 | | of State contracts for architectural and engineering | 7 | | services, the provisions of this subsection (c) requiring a | 8 | | portion of State contracts to be awarded to businesses | 9 | | owned and controlled by persons with disabilities do not | 10 | | apply. | 11 | | (d) When a community college awards a contract for | 12 | | insurance services, investment services, information | 13 | | technology services, accounting services, architectural | 14 | | and engineering services, and legal services, it shall be | 15 | | the aspirational goal of each community college to use | 16 | | businesses owned by minorities, women, and persons with | 17 | | disabilities as defined in this Act for not less than 20% | 18 | | of the total amount spent on contracts for these services | 19 | | collectively. When a community college awards contracts | 20 | | for investment services, contracts awarded to investment | 21 | | managers who are not emerging investment managers as | 22 | | defined in this Act shall not be considered businesses | 23 | | owned by minorities, women, or persons with disabilities | 24 | | for the purposes of this Section. | 25 | | (e) When a State agency or public institution of higher | 26 | | education issues requests for proposals or solicitations, |
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| 1 | | including requests and solicitations for sole source | 2 | | contracts and contracts with group purchasing | 3 | | organizations, that fall within a service or product | 4 | | offering that has a history of disparate awards to a class | 5 | | of business owners that are underrepresented in contract | 6 | | awards, it shall be the aspirational goal to use service or | 7 | | product providers owned by minorities, women, and persons | 8 | | with disabilities as defined by this Act for not less than | 9 | | 20% of the total dollar amount of State contracts. If the | 10 | | State agency or public institution of higher education | 11 | | believes that it may be difficult to properly assess the | 12 | | minimum 20% aspirational goal, then it may appear before | 13 | | the Council to seek a modification of the goal requirement | 14 | | provided under this paragraph (e). | 15 | | If any State agency contract is eligible to be paid | 16 | | for, in whole or in part, with federal-aid funds, grants, | 17 | | or loans, and the provisions of this paragraph (e) would | 18 | | result in the loss of those federal-aid funds, grants, or | 19 | | loans, then the contract is exempt from the provisions of | 20 | | this paragraph (e) in order to remain eligible for those | 21 | | federal-aid funds, grants, or loans. | 22 | | (2) As used in this Section: | 23 | | "Accounting services" means the measurement, | 24 | | processing and communication of financial information | 25 | | about economic entities including, but is not limited to, | 26 | | financial accounting, management accounting, auditing, |
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| 1 | | cost containment and auditing services, taxation and | 2 | | accounting information systems. | 3 | | "Architectural and engineering services" means | 4 | | professional services of an architectural or engineering | 5 | | nature, or incidental services, that members of the | 6 | | architectural and engineering professions, and individuals | 7 | | in their employ, may logically or justifiably perform, | 8 | | including studies, investigations, surveying and mapping, | 9 | | tests, evaluations, consultations, comprehensive planning, | 10 | | program management, conceptual designs, plans and | 11 | | specifications, value engineering, construction phase | 12 | | services, soils engineering, drawing reviews, preparation | 13 | | of operating and maintenance manuals, and other related | 14 | | services. | 15 | | "Emerging investment manager" means an investment | 16 | | manager or claims consultant having assets under | 17 | | management below $10 billion or otherwise adjudicating | 18 | | claims. | 19 | | "Information technology services" means, but is not | 20 | | limited to, specialized technology-oriented solutions by | 21 | | combining the processes and functions of software, | 22 | | hardware, networks, telecommunications, web designers, | 23 | | cloud developing resellers, and electronics. | 24 | | "Insurance broker" means an insurance brokerage firm, | 25 | | claims administrator, or both, that procures, places all | 26 | | lines of insurance, or administers claims with annual |
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| 1 | | premiums or fees of at least $5,000,000 but not more than | 2 | | $10,000,000. | 3 | | "Legal services" means work performed by a lawyer | 4 | | including, but not limited to, contracts in anticipation of | 5 | | litigation, enforcement actions, or investigations. | 6 | | (3) Each State agency and public institution of higher | 7 | | education shall adopt policies that identify its plan and | 8 | | implementation procedures for increasing the use of service | 9 | | firms owned by minorities, women, and persons with | 10 | | disabilities. | 11 | | (4) Except as provided in subsection (5), the Council shall | 12 | | file no later than March 1 of each year an annual report to the | 13 | | Governor and the General Assembly. The report to the General | 14 | | Assembly shall be filed with the Clerk of the House of | 15 | | Representatives and the Secretary of the Senate in electronic | 16 | | form only, in the manner that the Clerk and the Secretary shall | 17 | | direct The report filed with the General Assembly shall be | 18 | | filed as required in Section 3.1 of the General Assembly | 19 | | Organization Act . This report shall: (i) identify the service | 20 | | firms used by each State agency and public institution of | 21 | | higher education, (ii) identify the actions it has undertaken | 22 | | to increase the use of service firms owned by minorities, | 23 | | women, and persons with disabilities, including encouraging | 24 | | non-minority-owned firms to use other service firms owned by | 25 | | minorities, women, and persons with disabilities as | 26 | | subcontractors when the opportunities arise, (iii) state any |
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| 1 | | recommendations made by the Council to each State agency and | 2 | | public institution of higher education to increase | 3 | | participation by the use of service firms owned by minorities, | 4 | | women, and persons with disabilities, and (iv) include the | 5 | | following: | 6 | | (A) For insurance services: the names of the insurance | 7 | | brokers or claims consultants used, the total of risk | 8 | | managed by each State agency and public institution of | 9 | | higher education by insurance brokers, the total | 10 | | commissions, fees paid, or both, the lines or insurance | 11 | | policies placed, and the amount of premiums placed; and the | 12 | | percentage of the risk managed by insurance brokers, the | 13 | | percentage of total commission, fees paid, or both, the | 14 | | lines or insurance policies placed, and the amount of | 15 | | premiums placed with each by the insurance brokers owned by | 16 | | minorities, women, and persons with disabilities by each | 17 | | State agency and public institution of higher education. | 18 | | (B) For investment management services: the names of | 19 | | the investment managers used, the total funds under | 20 | | management of investment managers; the total commissions, | 21 | | fees paid, or both; the total and percentage of funds under | 22 | | management of emerging investment managers owned by | 23 | | minorities, women, and persons with disabilities, | 24 | | including the total and percentage of total commissions, | 25 | | fees paid, or both by each State agency and public | 26 | | institution of higher education. |
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| 1 | | (C) The names of service firms, the percentage and | 2 | | total dollar amount paid for professional services by | 3 | | category by each State agency and public institution of | 4 | | higher education. | 5 | | (D) The names of service firms, the percentage and | 6 | | total dollar amount paid for services by category to firms | 7 | | owned by minorities, women, and persons with disabilities | 8 | | by each State agency and public institution of higher | 9 | | education. | 10 | | (E) The total number of contracts awarded for services | 11 | | by category and the total number of contracts awarded to | 12 | | firms owned by minorities, women, and persons with | 13 | | disabilities by each State agency and public institution of | 14 | | higher education. | 15 | | (5) For community college districts, the Business | 16 | | Enterprise Council shall only report the following information | 17 | | for each community college district: (i) the name of the | 18 | | community colleges in the district, (ii) the name and contact | 19 | | information of a person at each community college appointed to | 20 | | be the single point of contact for vendors owned by minorities, | 21 | | women, or persons with disabilities, (iii) the policy of the | 22 | | community college district concerning certified vendors, (iv) | 23 | | the certifications recognized by the community college | 24 | | district for determining whether a business is owned or | 25 | | controlled by a minority, woman, or person with a disability, | 26 | | (v) outreach efforts conducted by the community college |
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| 1 | | district to increase the use of certified vendors, (vi) the | 2 | | total expenditures by the community college district in the | 3 | | prior fiscal year in the divisions of work specified in | 4 | | paragraphs (a), (b), and (c) of subsection (1) of this Section | 5 | | and the amount paid to certified vendors in those divisions of | 6 | | work, and (vii) the total number of contracts entered into for | 7 | | the divisions of work specified in paragraphs (a), (b), and (c) | 8 | | of subsection (1) of this Section and the total number of | 9 | | contracts awarded to certified vendors providing these | 10 | | services to the community college district. The Business | 11 | | Enterprise Council shall not make any utilization reports under | 12 | | this Act for community college districts for Fiscal Year 2015 | 13 | | and Fiscal Year 2016, but shall make the report required by | 14 | | this subsection for Fiscal Year 2017 and for each fiscal year | 15 | | thereafter. The Business Enterprise Council shall report the | 16 | | information in items (i), (ii), (iii), and (iv) of this | 17 | | subsection beginning in September of 2016. The Business | 18 | | Enterprise Council may collect the data needed to make its | 19 | | report from the Illinois Community College Board. | 20 | | (6) The status of the utilization of services shall be | 21 | | discussed at each of the regularly scheduled Business | 22 | | Enterprise Council meetings. Time shall be allotted for the | 23 | | Council to receive, review, and discuss the progress of the use | 24 | | of service firms owned by minorities, women, and persons with | 25 | | disabilities by each State agency and public institution of | 26 | | higher education; and any evidence regarding past or present |
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| 1 | | racial, ethnic, or gender-based discrimination which directly | 2 | | impacts a State agency or public institution of higher | 3 | | education contracting with such firms. If after reviewing such | 4 | | evidence the Council finds that there is or has been such | 5 | | discrimination against a specific group, race or sex, the | 6 | | Council shall establish sheltered markets or adjust existing | 7 | | sheltered markets tailored to address the Council's specific | 8 | | findings for the divisions of work specified in paragraphs (a), | 9 | | (b), and (c) of subsection (1) of this Section.
| 10 | | (Source: P.A. 99-462, eff. 8-25-15; 99-642, eff. 7-28-16; | 11 | | 100-391, eff. 8-25-17.)
| 12 | | (30 ILCS 575/6) (from Ch. 127, par. 132.606)
| 13 | | (Section scheduled to be repealed on June 30, 2020)
| 14 | | Sec. 6. Agency compliance plans. Each State agency and | 15 | | public institutions of higher education
under the
jurisdiction | 16 | | of this Act
shall file
with the Council an annual compliance | 17 | | plan which shall outline the
goals of the State agency or | 18 | | public institutions of higher education for contracting with | 19 | | businesses owned by minorities, women, and
persons with | 20 | | disabilities for the then current fiscal
year, the manner in | 21 | | which the agency intends to reach these goals and a
timetable | 22 | | for reaching these goals. The Council shall review and approve
| 23 | | the plan of each State agency and public institutions of higher | 24 | | education and may reject any
plan that does
not comply with
| 25 | | this Act or any rules or regulations promulgated pursuant to |
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| 1 | | this Act.
| 2 | | (a) The compliance plan shall also include, but not be | 3 | | limited to, (1) a
policy statement, signed by the State agency | 4 | | or public institution of higher education head,
expressing a
| 5 | | commitment to
encourage the use of
businesses owned by
| 6 | | minorities, women, and persons with disabilities, (2) the | 7 | | designation of
the liaison
officer
provided for in Section 5 of | 8 | | this Act, (3) procedures to distribute to
potential contractors | 9 | | and vendors the list of all businesses legitimately classified | 10 | | as businesses owned by
minorities, women, and persons with | 11 | | disabilities and so certified under
this Act, (4) procedures to | 12 | | set
separate contract goals on specific prime contracts and | 13 | | purchase orders
with subcontracting possibilities based upon | 14 | | the type of work or services
and subcontractor availability, | 15 | | (5) procedures to assure that contractors
and vendors make good | 16 | | faith efforts to meet contract goals, (6) procedures
for | 17 | | contract goal exemption, modification and waiver, and (7) the | 18 | | delineation
of separate contract goals for businesses owned by | 19 | | minorities, women, and persons with
disabilities.
| 20 | | (b) Approval of the compliance plans shall include such | 21 | | delegation of
responsibilities to the requesting State agency | 22 | | or public institution of higher education as
the Council
deems | 23 | | necessary
and appropriate to fulfill the purpose of this Act. | 24 | | Such responsibilities
may include, but need not be limited to | 25 | | those outlined in subsections (1),
(2) and (3) of Section 7, | 26 | | paragraph (a) of Section 8, and Section 8a of this Act.
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| 1 | | (c) Each State agency and public institution of higher | 2 | | education under the jurisdiction of
this Act
shall
file with | 3 | | the Council an annual report of its utilization of businesses | 4 | | owned
by minorities, women, and persons with disabilities | 5 | | during the preceding fiscal year including lapse period | 6 | | spending
and a mid-fiscal year report of its utilization to | 7 | | date for the then current
fiscal year. The reports shall | 8 | | include a self-evaluation of the efforts of the
State agency or | 9 | | public institution of higher education to meet its goals under | 10 | | the
Act , as well as a plan to increase the diversity
of their | 11 | | vendors engaged in contracts, with a particular focus
on those | 12 | | most underrepresented in contract awards .
| 13 | | (d) Notwithstanding any provisions to the contrary in this | 14 | | Act,
any State
agency or public institution of higher education | 15 | | which administers a construction program,
for which federal law | 16 | | or regulations establish standards and procedures for
the | 17 | | utilization of minority-owned and women-owned businesses and | 18 | | disadvantaged businesses,
shall implement a disadvantaged | 19 | | business enterprise program to include minority-owned and | 20 | | women-owned businesses and disadvantaged businesses, using
the | 21 | | federal
standards and procedures for the establishment of goals | 22 | | and
utilization procedures for the State-funded, as well as the | 23 | | federally
assisted, portions of the program. In such cases, | 24 | | these goals shall not
exceed those established pursuant to the | 25 | | relevant federal statutes or
regulations.
Notwithstanding the | 26 | | provisions of Section 8b, the Illinois Department of
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| 1 | | Transportation is authorized to establish sheltered markets | 2 | | for the
State-funded portions of the program consistent with | 3 | | federal law and
regulations.
Additionally, a compliance plan | 4 | | which is filed by such State
agency or public institution of | 5 | | higher education pursuant to this Act, which incorporates
| 6 | | equivalent terms and
conditions of its federally-approved | 7 | | compliance plan, shall be deemed
approved under this Act.
| 8 | | (Source: P.A. 99-462, eff. 8-25-15; 100-391, eff. 8-25-17.)
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