Sen. Cristina Castro

Filed: 4/10/2024





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2    AMENDMENT NO. ______. Amend Senate Bill 3731 by replacing
3everything after the enacting clause with the following:
4    "Section 5. The Illinois Procurement Code is amended by
5changing Section 45-45 and by adding Section 45-46 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
16    (b) Small business. "Small business" means a business that



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1is independently owned and operated and that is not dominant
2in its field of operation. The chief procurement officer shall
3establish a detailed definition by rule, using in addition to
4the foregoing criteria other criteria, including the number of
5employees and the dollar volume of business. When computing
6the size status of a potential contractor, annual sales and
7receipts of the potential contractor and all of its affiliates
8shall be included. The maximum number of employees and the
9maximum dollar volume that a small business may have under the
10rules promulgated by the chief procurement officer may vary
11from industry to industry to the extent necessary to reflect
12differing characteristics of those industries, subject to the
13following limitations:
14        (1) No wholesale business is a small business if its
15    annual sales for its most recently completed fiscal year
16    exceed $13,000,000.
17        (2) No retail business or business selling services is
18    a small business if its annual sales and receipts exceed
19    $8,000,000.
20        (3) No manufacturing business is a small business if
21    it employs more than 250 persons.
22        (4) No construction business is a small business if
23    its annual sales and receipts exceed $45,000,000
24    $14,000,000.
25    (c) Fair proportion. For the purpose of subsection (a),
26for State agencies of the executive branch, a fair proportion



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1of construction contracts shall be no less than 25% nor more
2than 40% of the annual total contracts for construction.
3    (d) Withdrawal of designation. A small business set-aside
4designation may be withdrawn by the purchasing agency when
5deemed in the best interests of the State. Upon withdrawal,
6all bids or offers shall be rejected, and the bidders or
7offerors shall be notified of the reason for rejection. The
8contract shall then be awarded in accordance with this Code
9without the designation of small business set-aside. Each
10chief procurement officer shall make the annual report
11available on his or her official website. Each chief
12procurement officer shall also issue a press release in
13conjunction with the small business annual report that
14includes an executive summary of the annual report and a link
15to the annual report on the chief procurement officer's
17    (e) Small business specialist. Each chief procurement
18officer shall designate one or more individuals to serve as
19its small business specialist. The small business specialists
20shall collectively work together to accomplish the following
22        (1) Compiling and maintaining a comprehensive list of
23    potential small contractors. In this duty, he or she shall
24    cooperate with the Federal Small Business Administration
25    in locating potential sources for various products and
26    services.



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1        (2) Assisting small businesses in complying with the
2    procedures for bidding on State contracts.
3        (3) Examining requests from State agencies for the
4    purchase of property or services to help determine which
5    invitations to bid are to be designated small business
6    set-asides.
7        (4) Making recommendations to the chief procurement
8    officer for the simplification of specifications and terms
9    in order to increase the opportunities for small business
10    participation.
11        (5) Assisting in investigations by purchasing agencies
12    to determine the responsibility of bidders or offerors on
13    small business set-asides.
14    (f) Small business annual report. Each small business
15specialist designated under subsection (e) shall annually
16before November 1 report in writing to the General Assembly
17concerning the awarding of contracts to small businesses. The
18report shall include the total value of awards made in the
19preceding fiscal year under the designation of small business
20set-aside. The report shall also include the total value of
21awards made to businesses owned by minorities, women, and
22persons with disabilities, as defined in the Business
23Enterprise for Minorities, Women, and Persons with
24Disabilities Act, in the preceding fiscal year under the
25designation of small business set-aside.
26    The requirement for reporting to the General Assembly



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1shall be satisfied by filing copies of the report as required
2by Section 3.1 of the General Assembly Organization Act.
3(Source: P.A. 103-570, eff. 1-1-24.)
4    (30 ILCS 500/45-46 new)
5    Sec. 45-46. Mid-size businesses.
6    (a) As used in the Section, "mid-size business" means a
7business that is independently owned and operated and that is
8not dominant in its field of operation. "Mid-size business"
9includes a construction business with annual sales and
10receipts in excess of $45,000,000 but not over $67,500,000.
11    (a-5) This Section applies only to procurements by the
12Illinois State Toll Highway Authority for construction
13contracts, construction-related contracts, and construction
14support contracts.
15    (b) The chief procurement officer shall adopt rules to
16establish additional criteria to designate mid-size businesses
17for the purposes of the mid-size business set-asides described
18in subsection (c), including the number of employees and
19dollar volume of the business. When computing the size status
20of a potential contractor, annual sales and receipts of the
21potential contractor and all of its affiliates shall be
22included. The maximum number of employees and the maximum
23annual sales and receipts that a mid-size business may have
24under the rules adopted by the chief procurement officer may
25vary from industry to industry, to the extent necessary to



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1reflect differing characteristics of those industries, subject
2to the limitation that no business shall qualify as a mid-size
3business if its annual sales and receipts exceed $67,500,000.
4    (c) The applicable chief procurement officer shall
5designate a fair proportion, as determined by the applicable
6chief procurement officer in consultation with the Illinois
7State Toll Highway Authority, of construction,
8construction-related, and construction support contracts as
9mid-size business set-asides for award to mid-size businesses
10in Illinois. Advertisements for bids or offers for these
11contracts shall specify designation as mid-size business
12set-asides. In awarding the contracts, only bids or offers
13from qualified mid-size businesses shall be considered. The
14Illinois State Toll Highway Authority shall prepare an annual
15report setting forth the use of this Section during the
16preceding fiscal year and shall provide that report to the
17applicable chief procurement officer no later than March 1 of
18each calendar year. This Section is repealed on January 1,