Full Text of HB3880 100th General Assembly
HB3880 100TH GENERAL ASSEMBLY |
| | 100TH GENERAL ASSEMBLY
State of Illinois
2017 and 2018 HB3880 Introduced , by Rep. Juliana Stratton SYNOPSIS AS INTRODUCED: |
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Amends the Illinois Procurement Code. Creates a small and mid-sized business enterprise initiative program. Provides that the program shall apply to construction contracts and contracts for goods and services by the Department of Transportation and Capital Development Board. Establishes a race and gender-neutral program to increase small and mid-sized business participation in those contracts. Allows the applicable chief procurement officer to set aside certain contracts for exclusive participation of small and mid-sized businesses. Sets forth reporting requirements and penalties for violations of the provisions. Allows the Department of Central Management Services to adopt rules to implement the program. Includes severability provisions.
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| | A BILL FOR |
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| 1 | | AN ACT concerning finance.
| 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 | | adding Section 45-85 as follows: | 6 | | (30 ILCS 500/45-85 new) | 7 | | Sec. 45-85. Small and mid-sized business enterprise | 8 | | initiative program. | 9 | | (a) As used in this Section, | 10 | | "Construction contract" means a contract, purchase order, | 11 | | or agreement (other than a lease of real property) for the | 12 | | construction, repair, or improvement of any building, bridge, | 13 | | roadway, sidewalk, alley, railroad, or other structure or | 14 | | infrastructure, awarded by State agency, and whose cost is to | 15 | | be paid from funds belonging to the State. | 16 | | "Department" means Department of Central Management | 17 | | Services. | 18 | | "Local business enterprise" means a business entity | 19 | | located within the State, which has the majority of its | 20 | | regular, full time work force located within the State. | 21 | | "Program" means the Small and Mid-sized Business | 22 | | Initiative program established under this Section. | 23 | | "Small and mid-sized business" means a local business |
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| 1 | | enterprise that has gross receipts, averaged over its previous | 2 | | 5 fiscal years, or number of employees, per pay period averaged | 3 | | over the past 12 months, that do not exceed 1.5 times the size | 4 | | standards set forth in 13 CFR Part 121. | 5 | | (b) This Section shall apply to construction contracts and | 6 | | contracts for goods and services by the Department of | 7 | | Transportation and the Capital Development Board. This Section | 8 | | supersedes any inconsistent provision of any law or regulation | 9 | | of the State of Illinois to the extent such inconsistency is | 10 | | necessary. This Section shall not apply to any contract to the | 11 | | extent that it is inconsistent with procedures or standards | 12 | | required by any law or regulation of the United States or the | 13 | | State of Illinois to the extent the inconsistency is not | 14 | | permitted. In connection with any contract funded in whole or | 15 | | in part from State or federal sources, State or federal | 16 | | standards and regulations shall control to the extent this | 17 | | Section is inconsistent with such federal or State standards. | 18 | | (c) Unless otherwise prohibited by any federal, State, or | 19 | | local law, the applicable chief procurement officer shall | 20 | | establish a race and gender-neutral program to increase small | 21 | | and mid-sized business participation in construction and other | 22 | | goods and services contracts. The applicable chief procurement | 23 | | officer is authorized to identify and offer construction | 24 | | contract projects for exclusive participation of small and | 25 | | mid-sized businesses. The estimated costs of such projects | 26 | | shall not be less than $3,000,000 nor more than $10,000,000. |
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| 1 | | (d) To be eligible for the program, a business enterprise | 2 | | must: | 3 | | (1) be a small or mid-sized local business enterprise; | 4 | | (2) be in business for at least 2 years at the time the | 5 | | business enterprise claims to be eligible for the program; | 6 | | (3) perform more than 50% of the work on the | 7 | | construction project with its own work force or | 8 | | subcontractors that are small or mid-sized local business | 9 | | enterprises; and | 10 | | (4) be independent, and must not be an affiliate or | 11 | | subsidiary of any other business enterprise. For purposes | 12 | | of this subsection (d), the applicable chief procurement | 13 | | officer shall have the sole authority to determine the | 14 | | independence of a business enterprise. | 15 | | (e) Minority owned business enterprises and women owned | 16 | | business enterprises, as defined in the Business Enterprise for | 17 | | Minorities, Females, and Persons with Disabilities Act, shall | 18 | | be presumed to be small or mid-sized business enterprises under | 19 | | this Section. | 20 | | (f) Except as otherwise provided in subsection (e) of this | 21 | | Section, any business enterprise that claims to be a small or | 22 | | mid-sized business enterprise shall at the time of the claim, | 23 | | and annually thereafter, submit an affidavit, in a form | 24 | | prescribed by the chief procurement officer, attesting that it | 25 | | meets the small or mid-sized business enterprise eligibility | 26 | | requirements in this Section. The applicable chief procurement |
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| 1 | | officer is authorized to investigate the accuracy of the | 2 | | information provided in, and require documents and information | 3 | | in support of, the affidavits. | 4 | | (g) Small or mid-sized businesses and business enterprises | 5 | | presumed to be small or mid-sized businesses shall notify the | 6 | | Department of any change that affects the enterprises' small or | 7 | | mid-sized business enterprise status within 5 business days of | 8 | | the occurrence of the change. | 9 | | (h) The applicable chief procurement officer is authorized | 10 | | to impose reasonable reporting requirements on participants in | 11 | | the program. The reporting requirements shall be designed and | 12 | | used to evaluate the effectiveness of the program. Any program | 13 | | participant shall comply with the reporting requirements as | 14 | | required by the applicable chief procurement officer. | 15 | | (i) If the applicable chief procurement officer | 16 | | determines, after notice and a hearing before the chief | 17 | | procurement officer, that any small or mid-sized business | 18 | | enterprise has made fraudulent misrepresentations to the State | 19 | | regarding its small or mid-sized business enterprise status, or | 20 | | has colluded with another making such fraudulent | 21 | | misrepresentations, the small or mid-sized business enterprise | 22 | | shall be declared ineligible to contract or subcontract on | 23 | | additional contracts. Upon making a finding of ineligibility, | 24 | | the applicable chief procurement officer shall determine the | 25 | | period of ineligibility imposed, which may include permanent or | 26 | | indefinite ineligibility, or ineligibility for a lesser |
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| 1 | | duration. No small or mid-sized business enterprise shall be | 2 | | disqualified for collusive misrepresentations unless all | 3 | | parties with which the small or mid-sized business enterprise | 4 | | was found to have colluded with are also disqualified. The | 5 | | State shall regard as nonresponsive any bid submitted during | 6 | | such period of ineligibility which includes a disqualified | 7 | | entity as a contractor, subcontractor, or member of a joint | 8 | | venture. In the event that a contractor submitting a bid is | 9 | | determined by the Department not to have been involved in any | 10 | | misrepresentation of the status of a disqualified | 11 | | subcontractor included in the bid, the Department may allow the | 12 | | contractor to discharge the disqualified subcontractor and, if | 13 | | possible, identify and engage a qualified subcontractor as its | 14 | | replacement for inclusion in the bid. The consequences provided | 15 | | herein shall be in addition to any other criminal or civil | 16 | | liability to which such entities may be subject. The Department | 17 | | shall inform the appropriate state's attorney of instances of | 18 | | fraudulent misrepresentation and collusion. | 19 | | (j) In addition to any other penalty imposed by law, any | 20 | | person who knowingly obtains, or knowingly assists another in | 21 | | obtaining, a contract with the State by falsely representing | 22 | | that the entity, or the entity assisted, is a small or | 23 | | mid-sized business enterprise is guilty of a Class C | 24 | | misdemeanor. | 25 | | (k) Except as otherwise provided in subsections (i) and (j) | 26 | | of this Section, any person who violates this Section shall be |
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| 1 | | fined not less than $1,000 nor more than $5,000 for each | 2 | | offense. | 3 | | (l) The Department is authorized to adopt rules for the | 4 | | proper administration and enforcement of this Section.
| 5 | | Section 97. Severability. The provisions of this Act are | 6 | | severable under Section 1.31 of the Statute on Statutes.
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