Illinois 2023-2024 Regular Session

Illinois House Bill HB1409 Compare Versions

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1+103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB1409 Introduced , by Rep. William "Will" Davis SYNOPSIS AS INTRODUCED: 30 ILCS 535/17 new Amends the Architectural, Engineering, and Land Surveying Qualifications Based Selection Act. Provides that, in the procurement of architectural, engineering, and land surveying services and in the awarding of contracts for such services under the Act, not less than 30% of the total dollar amount of State contracts shall be established as an aspirational goal to be awarded to firms owned by minorities, women, and persons with disabilities. Provides that of that total amount of all State contracts awarded to firms owned by minorities, women, and persons with disabilities, contracts representing at least 16% shall be awarded to firms owned by minorities, contracts representing at least 10% shall be awarded to women-owned firms, and contracts representing at least 4% shall be awarded to firms owned by persons with disabilities. LRB103 25706 HLH 52055 b A BILL FOR 103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB1409 Introduced , by Rep. William "Will" Davis SYNOPSIS AS INTRODUCED: 30 ILCS 535/17 new 30 ILCS 535/17 new Amends the Architectural, Engineering, and Land Surveying Qualifications Based Selection Act. Provides that, in the procurement of architectural, engineering, and land surveying services and in the awarding of contracts for such services under the Act, not less than 30% of the total dollar amount of State contracts shall be established as an aspirational goal to be awarded to firms owned by minorities, women, and persons with disabilities. Provides that of that total amount of all State contracts awarded to firms owned by minorities, women, and persons with disabilities, contracts representing at least 16% shall be awarded to firms owned by minorities, contracts representing at least 10% shall be awarded to women-owned firms, and contracts representing at least 4% shall be awarded to firms owned by persons with disabilities. LRB103 25706 HLH 52055 b LRB103 25706 HLH 52055 b A BILL FOR
2+103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB1409 Introduced , by Rep. William "Will" Davis SYNOPSIS AS INTRODUCED:
3+30 ILCS 535/17 new 30 ILCS 535/17 new
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5+Amends the Architectural, Engineering, and Land Surveying Qualifications Based Selection Act. Provides that, in the procurement of architectural, engineering, and land surveying services and in the awarding of contracts for such services under the Act, not less than 30% of the total dollar amount of State contracts shall be established as an aspirational goal to be awarded to firms owned by minorities, women, and persons with disabilities. Provides that of that total amount of all State contracts awarded to firms owned by minorities, women, and persons with disabilities, contracts representing at least 16% shall be awarded to firms owned by minorities, contracts representing at least 10% shall be awarded to women-owned firms, and contracts representing at least 4% shall be awarded to firms owned by persons with disabilities.
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311 1 AN ACT concerning finance.
412 2 Be it enacted by the People of the State of Illinois,
513 3 represented in the General Assembly:
6-4 Section 5. The Business Enterprise for Minorities, Women,
7-5 and Persons with Disabilities Act is amended by changing
8-6 Sections 4 and 4f as follows:
9-7 (30 ILCS 575/4) (from Ch. 127, par. 132.604)
10-8 (Section scheduled to be repealed on June 30, 2024)
11-9 Sec. 4. Award of State contracts.
12-10 (a) Except as provided in subsection (b), not less than
13-11 30% of the total dollar amount of State contracts, as defined
14-12 by the Secretary of the Council and approved by the Council,
15-13 shall be established as an aspirational goal to be awarded to
16-14 businesses owned by minorities, women, and persons with
17-15 disabilities; provided, however, that of the total amount of
18-16 all State contracts awarded to businesses owned by minorities,
19-17 women, and persons with disabilities pursuant to this Section,
20-18 contracts representing at least 16% shall be awarded to
21-19 businesses owned by minorities, contracts representing at
22-20 least 10% shall be awarded to women-owned businesses, and
23-21 contracts representing at least 4% shall be awarded to
24-22 businesses owned by persons with disabilities.
25-23 (a-5) In addition to the aspirational goals in awarding
14+4 Section 5. The Architectural, Engineering, and Land
15+5 Surveying Qualifications Based Selection Act is amended by
16+6 adding Section 17 as follows:
17+7 (30 ILCS 535/17 new)
18+8 Sec. 17. Contract goals. Notwithstanding any provision of
19+9 law to the contrary, in the procurement of architectural,
20+10 engineering, and land surveying services and in the awarding
21+11 of contracts for such services under this Act, not less than
22+12 30% of the total dollar amount of State contracts shall be
23+13 established as an aspirational goal to be awarded to firms
24+14 owned by minorities, women, and persons with disabilities. Of
25+15 that total amount of all State contracts awarded to firms
26+16 owned by minorities, women, and persons with disabilities
27+17 under this Section, contracts representing at least 16% shall
28+18 be awarded to firms owned by minorities, contracts
29+19 representing at least 10% shall be awarded to women-owned
30+20 firms, and contracts representing at least 4% shall be awarded
31+21 to firms owned by persons with disabilities.
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34-1 State contracts set under subsection (a), the Commission shall
35-2 by rule further establish targeted efforts to encourage the
36-3 participation of businesses owned by minorities, women, and
37-4 persons with disabilities on State contracts. Such efforts
38-5 shall include, but not be limited to, further concerted
39-6 outreach efforts to businesses owned by minorities, women, and
40-7 persons with disabilities.
41-8 The above percentage relates to the total dollar amount of
42-9 State contracts during each State fiscal year, calculated by
43-10 examining independently each type of contract for each agency
44-11 or public institutions of higher education which lets such
45-12 contracts. Only that percentage of arrangements which
46-13 represents the participation of businesses owned by
47-14 minorities, women, and persons with disabilities on such
48-15 contracts shall be included. State contracts subject to the
49-16 requirements of this Act shall include the requirement that
50-17 only expenditures to businesses owned by minorities, women,
51-18 and persons with disabilities that perform a commercially
52-19 useful function may be counted toward the goals set forth by
53-20 this Act. Contracts shall include a definition of
54-21 "commercially useful function" that is consistent with 49 CFR
55-22 26.55(c).
56-23 (b) Not less than 20% of the total dollar amount of State
57-24 construction contracts is established as an aspirational goal
58-25 to be awarded to businesses owned by minorities, women, and
59-26 persons with disabilities; provided that, contracts
35+103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB1409 Introduced , by Rep. William "Will" Davis SYNOPSIS AS INTRODUCED:
36+30 ILCS 535/17 new 30 ILCS 535/17 new
37+30 ILCS 535/17 new
38+Amends the Architectural, Engineering, and Land Surveying Qualifications Based Selection Act. Provides that, in the procurement of architectural, engineering, and land surveying services and in the awarding of contracts for such services under the Act, not less than 30% of the total dollar amount of State contracts shall be established as an aspirational goal to be awarded to firms owned by minorities, women, and persons with disabilities. Provides that of that total amount of all State contracts awarded to firms owned by minorities, women, and persons with disabilities, contracts representing at least 16% shall be awarded to firms owned by minorities, contracts representing at least 10% shall be awarded to women-owned firms, and contracts representing at least 4% shall be awarded to firms owned by persons with disabilities.
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70-1 representing at least 11% of the total dollar amount of State
71-2 construction contracts shall be awarded to businesses owned by
72-3 minorities; contracts representing at least 7% of the total
73-4 dollar amount of State construction contracts shall be awarded
74-5 to women-owned businesses; and contracts representing at least
75-6 2% of the total dollar amount of State construction contracts
76-7 shall be awarded to businesses owned by persons with
77-8 disabilities.
78-9 (c) (Blank).
79-10 (c-5) All goals established under this Section shall be
80-11 contingent upon the results of the most recent disparity study
81-12 conducted by the State.
82-13 (d) Within one year after April 28, 2009 (the effective
83-14 date of Public Act 96-8), the Department of Central Management
84-15 Services shall conduct a social scientific study that measures
85-16 the impact of discrimination on minority and women business
86-17 development in Illinois. Within 18 months after April 28, 2009
87-18 (the effective date of Public Act 96-8), the Department shall
88-19 issue a report of its findings and any recommendations on
89-20 whether to adjust the goals for minority and women
90-21 participation established in this Act. Copies of this report
91-22 and the social scientific study shall be filed with the
92-23 Governor and the General Assembly.
93-24 By December 1, 2020, the Department of Central Management
94-25 Services shall conduct a new social scientific study that
95-26 measures the impact of discrimination on minority and women
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106-1 business development in Illinois. By June 1, 2022, the
107-2 Department shall issue a report of its findings and any
108-3 recommendations on whether to adjust the goals for minority
109-4 and women participation established in this Act. Copies of
110-5 this report and the social scientific study shall be filed
111-6 with the Governor and the General Assembly. By December 1,
112-7 2022, the Commission on Equity and Inclusion Business
113-8 Enterprise Program shall develop a model for social scientific
114-9 disparity study sourcing for local governmental units to adapt
115-10 and implement to address regional disparities in public
116-11 procurement.
117-12 (e) All State contract solicitations that include Business
118-13 Enterprise Program participation goals shall require bidders
119-14 or offerors to include utilization plans. Utilization plans
120-15 are due at the time of bid or offer submission. Failure to
121-16 complete and include a utilization plan, including
122-17 documentation demonstrating good faith efforts when requesting
123-18 a waiver, shall render the bid or offer non-responsive.
124-19 Except as permitted under this Act or as otherwise
125-20 mandated by federal regulation, a bidder or offeror whose bid
126-21 or offer is accepted and who included in that bid a completed
127-22 utilization plan but who fails to meet the goals set forth in
128-23 the plan shall be notified of the deficiency by the
129-24 contracting agency or public institution of higher education
130-25 and shall be given a period of 10 calendar days to cure the
131-26 deficiency by contracting with additional subcontractors who
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142-1 are certified by the Business Enterprise Program or by
143-2 increasing the work to be performed by previously identified
144-3 vendors certified by the Business Enterprise Program.
145-4 Deficiencies that may be cured include: (i) scrivener's
146-5 errors, such as transposed numbers; (ii) information submitted
147-6 in an incorrect form or format; (iii) mistakes resulting from
148-7 failure to follow instructions or to identify and adequately
149-8 document good faith efforts taken to comply with the
150-9 utilization plan; or (iv) a proposal to use a firm whose
151-10 Business Enterprise Program certification has lapsed or is not
152-11 yet recognized. Cure is not authorized if the bidder or
153-12 offeror submits a blank utilization plan, a utilization plan
154-13 that shows lack of reasonable effort to complete the form on
155-14 time, or a utilization plan that states the contract will be
156-15 self-performed, by a non-certified vendor, without showing
157-16 good faith efforts or a request for a waiver. All cure activity
158-17 shall address the deficiencies identified by the purchasing
159-18 agency and shall require clear documentation, including that
160-19 of good faith efforts, to address those deficiencies. Any
161-20 increase in cost to a contract for the addition of a
162-21 subcontractor to cure a bid's deficiency shall not affect the
163-22 bid price and shall not be used in the request for an exemption
164-23 under this Act, and, in no case, shall an identified
165-24 subcontractor with a Business Enterprise Program certification
166-25 made under this Act be terminated from a contract without the
167-26 written consent of the State agency or public institution of
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178-1 higher education entering into the contract. The purchasing
179-2 agency or public institution of higher education shall make
180-3 the determination whether the cure is adequate.
181-4 Vendors certified with the Business Enterprise Program at
182-5 the time and date submittals are due and who do not submit a
183-6 utilization plan or have utilization plan deficiencies shall
184-7 have 10 business days to submit a utilization plan or to
185-8 correct the utilization plan deficiencies.
186-9 (f) (Blank).
187-10 (g) (Blank).
188-11 (h) State agencies and public institutions of higher
189-12 education shall notify the Commission on Equity and Inclusion
190-13 of all non-responsive bids or proposals for State contracts.
191-14 (i) All goals established under this Section apply to
192-15 architectural, engineering, and land surveying contracts under
193-16 the Architectural, Engineering, and Land Surveying
194-17 Qualifications Based Selection Act.
195-18 (Source: P.A. 101-170, eff. 1-1-20; 101-601, eff. 1-1-20;
196-19 101-657, Article 1, Section 1-5, eff. 1-1-22; 101-657, Article
197-20 40, Section 40-130, eff. 1-1-22; 102-29, eff. 6-25-21;
198-21 102-558, eff. 8-20-21; 102-1119, eff. 1-23-23.)
199-22 (30 ILCS 575/4f)
200-23 (Section scheduled to be repealed on June 30, 2024)
201-24 Sec. 4f. Award of State contracts.
202-25 (1) It is hereby declared to be the public policy of the
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213-1 State of Illinois to promote and encourage each State agency
214-2 and public institution of higher education to use businesses
215-3 owned by minorities, women, and persons with disabilities in
216-4 the area of goods and services, including, but not limited to,
217-5 insurance services, investment management services,
218-6 information technology services, accounting
219-7 services,architectural and engineering services, and legal
220-8 services. Furthermore, each State agency and public
221-9 institution of higher education shall utilize such firms to
222-10 the greatest extent feasible within the bounds of financial
223-11 and fiduciary prudence, and take affirmative steps to remove
224-12 any barriers to the full participation of such firms in the
225-13 procurement and contracting opportunities afforded.
226-14 (a) When a State agency or public institution of
227-15 higher education, other than a community college, awards a
228-16 contract for insurance services, for each State agency or
229-17 public institution of higher education, it shall be the
230-18 aspirational goal to use insurance brokers owned by
231-19 minorities, women, and persons with disabilities as
232-20 defined by this Act, for not less than 20% of the total
233-21 annual premiums or fees; provided that, contracts
234-22 representing at least 11% of the total annual premiums or
235-23 fees shall be awarded to businesses owned by minorities;
236-24 contracts representing at least 7% of the total annual
237-25 premiums or fees shall be awarded to women-owned
238-26 businesses; and contracts representing at least 2% of the
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249-1 total annual premiums or fees shall be awarded to
250-2 businesses owned by persons with disabilities.
251-3 (b) When a State agency or public institution of
252-4 higher education, other than a community college, awards a
253-5 contract for investment services, for each State agency or
254-6 public institution of higher education, it shall be the
255-7 aspirational goal to use emerging investment managers
256-8 owned by minorities, women, and persons with disabilities
257-9 as defined by this Act, for not less than 20% of the total
258-10 funds under management; provided that, contracts
259-11 representing at least 11% of the total funds under
260-12 management shall be awarded to businesses owned by
261-13 minorities; contracts representing at least 7% of the
262-14 total funds under management shall be awarded to
263-15 women-owned businesses; and contracts representing at
264-16 least 2% of the total funds under management shall be
265-17 awarded to businesses owned by persons with disabilities.
266-18 Furthermore, it is the aspirational goal that not less
267-19 than 20% of the direct asset managers of the State funds be
268-20 minorities, women, and persons with disabilities.
269-21 (c) When a State agency or public institution of
270-22 higher education, other than a community college, awards
271-23 contracts for information technology services, accounting
272-24 services,architectural and engineering services, and legal
273-25 services, for each State agency and public institution of
274-26 higher education, it shall be the aspirational goal to use
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285-1 such firms owned by minorities, women, and persons with
286-2 disabilities as defined by this Act and lawyers who are
287-3 minorities, women, and persons with disabilities as
288-4 defined by this Act, for not less than 20% of the total
289-5 dollar amount of State contracts; provided that, contracts
290-6 representing at least 11% of the total dollar amount of
291-7 State contracts shall be awarded to businesses owned by
292-8 minorities or minority lawyers; contracts representing at
293-9 least 7% of the total dollar amount of State contracts
294-10 shall be awarded to women-owned businesses or women who
295-11 are lawyers; and contracts representing at least 2% of the
296-12 total dollar amount of State contracts shall be awarded to
297-13 businesses owned by persons with disabilities or persons
298-14 with disabilities who are lawyers.
299-15 (d) When a community college awards a contract for
300-16 insurance services, investment services, information
301-17 technology services, accounting services, architectural
302-18 and engineering services, and legal services, it shall be
303-19 the aspirational goal of each community college to use
304-20 businesses owned by minorities, women, and persons with
305-21 disabilities as defined in this Act for not less than 20%
306-22 of the total amount spent on contracts for these services
307-23 collectively; provided that, contracts representing at
308-24 least 11% of the total amount spent on contracts for these
309-25 services shall be awarded to businesses owned by
310-26 minorities; contracts representing at least 7% of the
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321-1 total amount spent on contracts for these services shall
322-2 be awarded to women-owned businesses; and contracts
323-3 representing at least 2% of the total amount spent on
324-4 contracts for these services shall be awarded to
325-5 businesses owned by persons with disabilities. When a
326-6 community college awards contracts for investment
327-7 services, contracts awarded to investment managers who are
328-8 not emerging investment managers as defined in this Act
329-9 shall not be considered businesses owned by minorities,
330-10 women, or persons with disabilities for the purposes of
331-11 this Section.
332-12 (2) As used in this Section:
333-13 "Accounting services" means the measurement,
334-14 processing and communication of financial information
335-15 about economic entities including, but is not limited to,
336-16 financial accounting, management accounting, auditing,
337-17 cost containment and auditing services, taxation and
338-18 accounting information systems.
339-19 "Architectural and engineering services" means
340-20 professional services of an architectural or engineering
341-21 nature, or incidental services, that members of the
342-22 architectural and engineering professions, and individuals
343-23 in their employ, may logically or justifiably perform,
344-24 including studies, investigations, surveying and mapping,
345-25 tests, evaluations, consultations, comprehensive
346-26 planning, program management, conceptual designs, plans
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357-1 and specifications, value engineering, construction phase
358-2 services, soils engineering, drawing reviews, preparation
359-3 of operating and maintenance manuals, and other related
360-4 services.
361-5 "Emerging investment manager" means an investment
362-6 manager or claims consultant having assets under
363-7 management below $10 billion or otherwise adjudicating
364-8 claims.
365-9 "Information technology services" means, but is not
366-10 limited to, specialized technology-oriented solutions by
367-11 combining the processes and functions of software,
368-12 hardware, networks, telecommunications, web designers,
369-13 cloud developing resellers, and electronics.
370-14 "Insurance broker" means an insurance brokerage firm,
371-15 claims administrator, or both, that procures, places all
372-16 lines of insurance, or administers claims with annual
373-17 premiums or fees of at least $5,000,000 but not more than
374-18 $10,000,000.
375-19 "Legal services" means work performed by a lawyer
376-20 including, but not limited to, contracts in anticipation
377-21 of litigation, enforcement actions, or investigations.
378-22 (3) Each State agency and public institution of higher
379-23 education shall adopt policies that identify its plan and
380-24 implementation procedures for increasing the use of service
381-25 firms owned by minorities, women, and persons with
382-26 disabilities. All plan and implementation procedures for
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393-1 increasing the use of service firms owned by minorities,
394-2 women, and persons with disabilities must be submitted to and
395-3 approved by the Commission on Equity and Inclusion on an
396-4 annual basis.
397-5 (4) Except as provided in subsection (5), the Council
398-6 shall file no later than March 1 of each year an annual report
399-7 to the Governor, the Bureau on Apprenticeship Programs and
400-8 Clean Energy Jobs, and the General Assembly. The report filed
401-9 with the General Assembly shall be filed as required in
402-10 Section 3.1 of the General Assembly Organization Act. This
403-11 report shall: (i) identify the service firms used by each
404-12 State agency and public institution of higher education, (ii)
405-13 identify the actions it has undertaken to increase the use of
406-14 service firms owned by minorities, women, and persons with
407-15 disabilities, including encouraging non-minority-owned firms
408-16 to use other service firms owned by minorities, women, and
409-17 persons with disabilities as subcontractors when the
410-18 opportunities arise, (iii) state any recommendations made by
411-19 the Council to each State agency and public institution of
412-20 higher education to increase participation by the use of
413-21 service firms owned by minorities, women, and persons with
414-22 disabilities, and (iv) include the following:
415-23 (A) For insurance services: the names of the insurance
416-24 brokers or claims consultants used, the total of risk
417-25 managed by each State agency and public institution of
418-26 higher education by insurance brokers, the total
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429-1 commissions, fees paid, or both, the lines or insurance
430-2 policies placed, and the amount of premiums placed; and
431-3 the percentage of the risk managed by insurance brokers,
432-4 the percentage of total commission, fees paid, or both,
433-5 the lines or insurance policies placed, and the amount of
434-6 premiums placed with each by the insurance brokers owned
435-7 by minorities, women, and persons with disabilities by
436-8 each State agency and public institution of higher
437-9 education.
438-10 (B) For investment management services: the names of
439-11 the investment managers used, the total funds under
440-12 management of investment managers; the total commissions,
441-13 fees paid, or both; the total and percentage of funds
442-14 under management of emerging investment managers owned by
443-15 minorities, women, and persons with disabilities,
444-16 including the total and percentage of total commissions,
445-17 fees paid, or both by each State agency and public
446-18 institution of higher education.
447-19 (C) The names of service firms, the percentage and
448-20 total dollar amount paid for professional services by
449-21 category by each State agency and public institution of
450-22 higher education.
451-23 (D) The names of service firms, the percentage and
452-24 total dollar amount paid for services by category to firms
453-25 owned by minorities, women, and persons with disabilities
454-26 by each State agency and public institution of higher
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465-1 education.
466-2 (E) The total number of contracts awarded for services
467-3 by category and the total number of contracts awarded to
468-4 firms owned by minorities, women, and persons with
469-5 disabilities by each State agency and public institution
470-6 of higher education.
471-7 (5) For community college districts, the Business
472-8 Enterprise Council shall only report the following information
473-9 for each community college district: (i) the name of the
474-10 community colleges in the district, (ii) the name and contact
475-11 information of a person at each community college appointed to
476-12 be the single point of contact for vendors owned by
477-13 minorities, women, or persons with disabilities, (iii) the
478-14 policy of the community college district concerning certified
479-15 vendors, (iv) the certifications recognized by the community
480-16 college district for determining whether a business is owned
481-17 or controlled by a minority, woman, or person with a
482-18 disability, (v) outreach efforts conducted by the community
483-19 college district to increase the use of certified vendors,
484-20 (vi) the total expenditures by the community college district
485-21 in the prior fiscal year in the divisions of work specified in
486-22 paragraphs (a), (b), and (c) of subsection (1) of this Section
487-23 and the amount paid to certified vendors in those divisions of
488-24 work, and (vii) the total number of contracts entered into for
489-25 the divisions of work specified in paragraphs (a), (b), and
490-26 (c) of subsection (1) of this Section and the total number of
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501-1 contracts awarded to certified vendors providing these
502-2 services to the community college district. The Business
503-3 Enterprise Council shall not make any utilization reports
504-4 under this Act for community college districts for Fiscal Year
505-5 2015 and Fiscal Year 2016, but shall make the report required
506-6 by this subsection for Fiscal Year 2017 and for each fiscal
507-7 year thereafter. The Business Enterprise Council shall report
508-8 the information in items (i), (ii), (iii), and (iv) of this
509-9 subsection beginning in September of 2016. The Business
510-10 Enterprise Council may collect the data needed to make its
511-11 report from the Illinois Community College Board.
512-12 (6) The status of the utilization of services shall be
513-13 discussed at each of the regularly scheduled Business
514-14 Enterprise Council meetings. Time shall be allotted for the
515-15 Council to receive, review, and discuss the progress of the
516-16 use of service firms owned by minorities, women, and persons
517-17 with disabilities by each State agency and public institution
518-18 of higher education; and any evidence regarding past or
519-19 present racial, ethnic, or gender-based discrimination which
520-20 directly impacts a State agency or public institution of
521-21 higher education contracting with such firms. If after
522-22 reviewing such evidence the Council finds that there is or has
523-23 been such discrimination against a specific group, race or
524-24 sex, the Council shall establish sheltered markets or adjust
525-25 existing sheltered markets tailored to address the Council's
526-26 specific findings for the divisions of work specified in
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537-1 paragraphs (a), (b), and (c) of subsection (1) of this
538-2 Section.
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