Illinois 2023-2024 Regular Session

Illinois House Bill HB2288 Compare Versions

Version 1 (Old)

Version 2 (New)

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	1	+	103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB2288 Introduced , by Rep. Wayne A Rosenthal SYNOPSIS AS INTRODUCED: 30 ILCS 500/45-57 Amends the Illinois Procurement Code. Provides that, as used in a provision of the Code that establishes procurement goals for veteran-owned small businesses, the term "small business" means a business that has annual gross sales of less than $150,000,000 (rather than less than $75,000,000) as evidenced by the federal income tax return of the business. LRB103 30019 JDS 56440 b A BILL FOR 103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB2288 Introduced , by Rep. Wayne A Rosenthal SYNOPSIS AS INTRODUCED: 30 ILCS 500/45-57 30 ILCS 500/45-57 Amends the Illinois Procurement Code. Provides that, as used in a provision of the Code that establishes procurement goals for veteran-owned small businesses, the term "small business" means a business that has annual gross sales of less than $150,000,000 (rather than less than $75,000,000) as evidenced by the federal income tax return of the business. LRB103 30019 JDS 56440 b LRB103 30019 JDS 56440 b A BILL FOR
	2	+	103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB2288 Introduced , by Rep. Wayne A Rosenthal SYNOPSIS AS INTRODUCED:
	3	+	30 ILCS 500/45-57 30 ILCS 500/45-57
	4	+	30 ILCS 500/45-57
	5	+	Amends the Illinois Procurement Code. Provides that, as used in a provision of the Code that establishes procurement goals for veteran-owned small businesses, the term "small business" means a business that has annual gross sales of less than $150,000,000 (rather than less than $75,000,000) as evidenced by the federal income tax return of the business.
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3	11		1 AN ACT concerning finance.
4	12		2 Be it enacted by the People of the State of Illinois,
5	13		3 represented in the General Assembly:
6	14		4 Section 5. The Illinois Procurement Code is amended by
7	15		5 changing Section 45-57 as follows:
8	16		6 (30 ILCS 500/45-57)
9	17		7 Sec. 45-57. Veterans.
10	18		8 (a) Set-aside goal. It is the goal of the State to promote
11	19		9 and encourage the continued economic development of small
12	20		10 businesses owned and controlled by qualified veterans and that
13	21		11 qualified service-disabled veteran-owned small businesses
14	22		12 (referred to as SDVOSB) and veteran-owned small businesses
15	23		13 (referred to as VOSB) participate in the State's procurement
16	24		14 process as both prime contractors and subcontractors. Not less
17	25		15 than 3% of the total dollar amount of State contracts, as
18	26		16 defined by the Commission on Equity and Inclusion, shall be
19	27		17 established as a goal to be awarded to SDVOSB and VOSB. That
20	28		18 portion of a contract under which the contractor subcontracts
21	29		19 with a SDVOSB or VOSB may be counted toward the goal of this
22	30		20 subsection. The Commission on Equity and Inclusion shall adopt
23	31		21 rules to implement compliance with this subsection by all
24	32		22 State agencies.
25	33		23 (b) Fiscal year reports. By each November 1, each chief
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	37	+	103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB2288 Introduced , by Rep. Wayne A Rosenthal SYNOPSIS AS INTRODUCED:
	38	+	30 ILCS 500/45-57 30 ILCS 500/45-57
	39	+	30 ILCS 500/45-57
	40	+	Amends the Illinois Procurement Code. Provides that, as used in a provision of the Code that establishes procurement goals for veteran-owned small businesses, the term "small business" means a business that has annual gross sales of less than $150,000,000 (rather than less than $75,000,000) as evidenced by the federal income tax return of the business.
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	43	+	A BILL FOR
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34	68		1 procurement officer shall report to the Commission on Equity
35	69		2 and Inclusion on all of the following for the immediately
36	70		3 preceding fiscal year, and by each March 1 the Commission on
37	71		4 Equity and Inclusion shall compile and report that information
38	72		5 to the General Assembly:
39	73		6 (1) The total number of VOSB, and the number of
40	74		7 SDVOSB, who submitted bids for contracts under this Code.
41	75		8 (2) The total number of VOSB, and the number of
42	76		9 SDVOSB, who entered into contracts with the State under
43	77		10 this Code and the total value of those contracts.
44	78		11 (b-5) The Commission on Equity and Inclusion shall submit
45	79		12 an annual report to the Governor and the General Assembly that
46	80		13 shall include the following:
47	81		14 (1) a year-by-year comparison of the number of
48	82		15 certifications the State has issued to veteran-owned small
49	83		16 businesses and service-disabled veteran-owned small
50	84		17 businesses;
51	85		18 (2) the obstacles, if any, the Commission on Equity
52	86		19 and Inclusion faces when certifying veteran-owned
53	87		20 businesses and possible rules or changes to rules to
54	88		21 address those issues;
55	89		22 (3) a year-by-year comparison of awarded contracts to
56	90		23 certified veteran-owned small businesses and
57	91		24 service-disabled veteran-owned small businesses; and
58	92		25 (4) any other information that the Commission on
59	93		26 Equity and Inclusion deems necessary to assist
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70	104		1 veteran-owned small businesses and service-disabled
71	105		2 veteran-owned small businesses to become certified with
72	106		3 the State.
73	107		4 The Commission on Equity and Inclusion shall conduct a
74	108		5 minimum of 2 outreach events per year to ensure that
75	109		6 veteran-owned small businesses and service-disabled
76	110		7 veteran-owned small businesses know about the procurement
77	111		8 opportunities and certification requirements with the State.
78	112		9 The Commission on Equity and Inclusion may receive
79	113		10 appropriations for outreach.
80	114		11 (c) Yearly review and recommendations. Each year, each
81	115		12 chief procurement officer shall review the progress of all
82	116		13 State agencies under its jurisdiction in meeting the goal
83	117		14 described in subsection (a), with input from statewide
84	118		15 veterans' service organizations and from the business
85	119		16 community, including businesses owned by qualified veterans,
86	120		17 and shall make recommendations to be included in the
87	121		18 Commission on Equity and Inclusion's report to the General
88	122		19 Assembly regarding continuation, increases, or decreases of
89	123		20 the percentage goal. The recommendations shall be based upon
90	124		21 the number of businesses that are owned by qualified veterans
91	125		22 and on the continued need to encourage and promote businesses
92	126		23 owned by qualified veterans.
93	127		24 (d) Governor's recommendations. To assist the State in
94	128		25 reaching the goal described in subsection (a), the Governor
95	129		26 shall recommend to the General Assembly changes in programs to
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106	140		1 assist businesses owned by qualified veterans.
107	141		2 (e) Definitions. As used in this Section:
108	142		3 "Armed forces of the United States" means the United
109	143		4 States Army, Navy, Air Force, Marine Corps, Coast Guard, or
110	144		5 service in active duty as defined under 38 U.S.C. Section 101.
111	145		6 Service in the Merchant Marine that constitutes active duty
112	146		7 under Section 401 of federal Public Act 95-202 shall also be
113	147		8 considered service in the armed forces for purposes of this
114	148		9 Section.
115	149		10 "Certification" means a determination made by the Illinois
116	150		11 Department of Veterans' Affairs and the Commission on Equity
117	151		12 and Inclusion that a business entity is a qualified
118	152		13 service-disabled veteran-owned small business or a qualified
119	153		14 veteran-owned small business for whatever purpose. A SDVOSB or
120	154		15 VOSB owned and controlled by women, minorities, or persons
121	155		16 with disabilities, as those terms are defined in Section 2 of
122	156		17 the Business Enterprise for Minorities, Women, and Persons
123	157		18 with Disabilities Act, may also select and designate whether
124	158		19 that business is to be certified as a "women-owned business",
125	159		20 "minority-owned business", or "business owned by a person with
126	160		21 a disability", as defined in Section 2 of the Business
127	161		22 Enterprise for Minorities, Women, and Persons with
128	162		23 Disabilities Act.
129	163		24 "Control" means the exclusive, ultimate, majority, or sole
130	164		25 control of the business, including but not limited to capital
131	165		26 investment and all other financial matters, property,
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142	176		1 acquisitions, contract negotiations, legal matters,
143	177		2 officer-director-employee selection and comprehensive hiring,
144	178		3 operation responsibilities, cost-control matters, income and
145	179		4 dividend matters, financial transactions, and rights of other
146	180		5 shareholders or joint partners. Control shall be real,
147	181		6 substantial, and continuing, not pro forma. Control shall
148	182		7 include the power to direct or cause the direction of the
149	183		8 management and policies of the business and to make the
150	184		9 day-to-day as well as major decisions in matters of policy,
151	185		10 management, and operations. Control shall be exemplified by
152	186		11 possessing the requisite knowledge and expertise to run the
153	187		12 particular business, and control shall not include simple
154	188		13 majority or absentee ownership.
155	189		14 "Qualified service-disabled veteran" means a veteran who
156	190		15 has been found to have 10% or more service-connected
157	191		16 disability by the United States Department of Veterans Affairs
158	192		17 or the United States Department of Defense.
159	193		18 "Qualified service-disabled veteran-owned small business"
160	194		19 or "SDVOSB" means a small business (i) that is at least 51%
161	195		20 owned by one or more qualified service-disabled veterans
162	196		21 living in Illinois or, in the case of a corporation, at least
163	197		22 51% of the stock of which is owned by one or more qualified
164	198		23 service-disabled veterans living in Illinois; (ii) that has
165	199		24 its home office in Illinois; and (iii) for which items (i) and
166	200		25 (ii) are factually verified annually by the Commission on
167	201		26 Equity and Inclusion.
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178	212		1 "Qualified veteran-owned small business" or "VOSB" means a
179	213		2 small business (i) that is at least 51% owned by one or more
180	214		3 qualified veterans living in Illinois or, in the case of a
181	215		4 corporation, at least 51% of the stock of which is owned by one
182	216		5 or more qualified veterans living in Illinois; (ii) that has
183	217		6 its home office in Illinois; and (iii) for which items (i) and
184	218		7 (ii) are factually verified annually by the Commission on
185	219		8 Equity and Inclusion.
186	220		9 "Service-connected disability" means a disability incurred
187	221		10 in the line of duty in the active military, naval, or air
188	222		11 service as described in 38 U.S.C. 101(16).
189	223		12 "Small business" means a business that has annual gross
190	224		13 sales of less than $150,000,000 $75,000,000 as evidenced by
191	225		14 the federal income tax return of the business. A firm with
192	226		15 gross sales in excess of this cap may apply to the Commission
193	227		16 on Equity and Inclusion for certification for a particular
194	228		17 contract if the firm can demonstrate that the contract would
195	229		18 have significant impact on SDVOSB or VOSB as suppliers or
196	230		19 subcontractors or in employment of veterans or
197	231		20 service-disabled veterans.
198	232		21 "State agency" has the meaning provided in Section
199	233		22 1-15.100 of this Code.
200	234		23 "Time of hostilities with a foreign country" means any
201	235		24 period of time in the past, present, or future during which a
202	236		25 declaration of war by the United States Congress has been or is
203	237		26 in effect or during which an emergency condition has been or is
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214	248		1 in effect that is recognized by the issuance of a Presidential
215	249		2 proclamation or a Presidential executive order and in which
216	250		3 the armed forces expeditionary medal or other campaign service
217	251		4 medals are awarded according to Presidential executive order.
218	252		5 "Veteran" means a person who (i) has been a member of the
219	253		6 armed forces of the United States or, while a citizen of the
220	254		7 United States, was a member of the armed forces of allies of
221	255		8 the United States in time of hostilities with a foreign
222	256		9 country and (ii) has served under one or more of the following
223	257		10 conditions: (a) the veteran served a total of at least 6
224	258		11 months; (b) the veteran served for the duration of hostilities
225	259		12 regardless of the length of the engagement; (c) the veteran
226	260		13 was discharged on the basis of hardship; or (d) the veteran was
227	261		14 released from active duty because of a service connected
228	262		15 disability and was discharged under honorable conditions.
229	263		16 (f) Certification program. The Illinois Department of
230	264		17 Veterans' Affairs and the Commission on Equity and Inclusion
231	265		18 shall work together to devise a certification procedure to
232	266		19 assure that businesses taking advantage of this Section are
233	267		20 legitimately classified as qualified service-disabled
234	268		21 veteran-owned small businesses or qualified veteran-owned
235	269		22 small businesses.
236	270		23 The Commission on Equity and Inclusion shall:
237	271		24 (1) compile and maintain a comprehensive list of
238	272		25 certified veteran-owned small businesses and
239	273		26 service-disabled veteran-owned small businesses;
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250	284		1 (2) assist veteran-owned small businesses and
251	285		2 service-disabled veteran-owned small businesses in
252	286		3 complying with the procedures for bidding on State
253	287		4 contracts;
254	288		5 (3) provide training for State agencies regarding the
255	289		6 goal setting process and compliance with veteran-owned
256	290		7 small business and service-disabled veteran-owned small
257	291		8 business goals; and
258	292		9 (4) implement and maintain an electronic portal on the
259	293		10 Commission on Equity and Inclusion's website for the
260	294		11 purpose of completing and submitting veteran-owned small
261	295		12 business and service-disabled veteran-owned small business
262	296		13 certificates.
263	297		14 The Commission on Equity and Inclusion, in consultation
264	298		15 with the Department of Veterans' Affairs, may develop programs
265	299		16 and agreements to encourage cities, counties, towns,
266	300		17 townships, and other certifying entities to adopt uniform
267	301		18 certification procedures and certification recognition
268	302		19 programs.
269	303		20 (f-5) A business shall be certified by the Commission on
270	304		21 Equity and Inclusion as a service-disabled veteran-owned small
271	305		22 business or a veteran-owned small business for purposes of
272	306		23 this Section if the Commission on Equity and Inclusion
273	307		24 determines that the business has been certified as a
274	308		25 service-disabled veteran-owned small business or a
275	309		26 veteran-owned small business by the Vets First Verification
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286	320		1 Program of the United States Department of Veterans Affairs,
287	321		2 and the business has provided to the Commission on Equity and
288	322		3 Inclusion the following:
289	323		4 (1) documentation showing certification as a
290	324		5 service-disabled veteran-owned small business or a
291	325		6 veteran-owned small business by the Vets First
292	326		7 Verification Program of the United States Department of
293	327		8 Veterans Affairs;
294	328		9 (2) proof that the business has its home office in
295	329		10 Illinois; and
296	330		11 (3) proof that the qualified veterans or qualified
297	331		12 service-disabled veterans live in the State of Illinois.
298	332		13 The policies of the Commission on Equity and Inclusion
299	333		14 regarding recognition of the Vets First Verification Program
300	334		15 of the United States Department of Veterans Affairs shall be
301	335		16 reviewed annually by the Commission on Equity and Inclusion,
302	336		17 and recognition of service-disabled veteran-owned small
303	337		18 businesses and veteran-owned small businesses certified by the
304	338		19 Vets First Verification Program of the United States
305	339		20 Department of Veterans Affairs may be discontinued by the
306	340		21 Commission on Equity and Inclusion by rule upon a finding that
307	341		22 the certification standards of the Vets First Verification
308	342		23 Program of the United States Department of Veterans Affairs do
309	343		24 not meet the certification requirements established by the
310	344		25 Commission on Equity and Inclusion.
311	345		26 (g) Penalties.
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322	356		1 (1) Administrative penalties. The chief procurement
323	357		2 officers appointed pursuant to Section 10-20 shall suspend
324	358		3 any person who commits a violation of Section 17-10.3 or
325	359		4 subsection (d) of Section 33E-6 of the Criminal Code of
326	360		5 2012 relating to this Section from bidding on, or
327	361		6 participating as a contractor, subcontractor, or supplier
328	362		7 in, any State contract or project for a period of not less
329	363		8 than 3 years, and, if the person is certified as a
330	364		9 service-disabled veteran-owned small business or a
331	365		10 veteran-owned small business, then the Commission on
332	366		11 Equity and Inclusion shall revoke the business's
333	367		12 certification for a period of not less than 3 years. An
334	368		13 additional or subsequent violation shall extend the
335	369		14 periods of suspension and revocation for a period of not
336	370		15 less than 5 years. The suspension and revocation shall
337	371		16 apply to the principals of the business and any subsequent
338	372		17 business formed or financed by, or affiliated with, those
339	373		18 principals.
340	374		19 (2) Reports of violations. Each State agency shall
341	375		20 report any alleged violation of Section 17-10.3 or
342	376		21 subsection (d) of Section 33E-6 of the Criminal Code of
343	377		22 2012 relating to this Section to the chief procurement
344	378		23 officers appointed pursuant to Section 10-20. The chief
345	379		24 procurement officers appointed pursuant to Section 10-20
346	380		25 shall subsequently report all such alleged violations to
347	381		26 the Attorney General, who shall determine whether to bring
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358	392		1 a civil action against any person for the violation.
359	393		2 (3) List of suspended persons. The chief procurement
360	394		3 officers appointed pursuant to Section 10-20 shall monitor
361	395		4 the status of all reported violations of Section 17-10.3
362	396		5 or subsection (d) of Section 33E-6 of the Criminal Code of
363	397		6 1961 or the Criminal Code of 2012 relating to this Section
364	398		7 and shall maintain and make available to all State
365	399		8 agencies a central listing of all persons that committed
366	400		9 violations resulting in suspension.
367	401		10 (4) Use of suspended persons. During the period of a
368	402		11 person's suspension under paragraph (1) of this
369	403		12 subsection, a State agency shall not enter into any
370	404		13 contract with that person or with any contractor using the
371	405		14 services of that person as a subcontractor.
372	406		15 (5) Duty to check list. Each State agency shall check
373	407		16 the central listing provided by the chief procurement
374	408		17 officers appointed pursuant to Section 10-20 under
375	409		18 paragraph (3) of this subsection to verify that a person
376	410		19 being awarded a contract by that State agency, or to be
377	411		20 used as a subcontractor or supplier on a contract being
378	412		21 awarded by that State agency, is not under suspension
379	413		22 pursuant to paragraph (1) of this subsection.
380	414		23 (h) On and after the effective date of this amendatory Act
381	415		24 of the 102nd General Assembly, all powers, duties, rights, and
382	416		25 responsibilities of the Department of Central Management
383	417		26 Services with respect to the requirements of this Section are
384	418
385	419
386	420
387	421
388	422
389		-	HB2288 ~~Engrossed~~ - 11 - LRB103 30019 JDS 56440 b
	423	+	HB2288 - 11 - LRB103 30019 JDS 56440 b
390	424
391	425
392		-	HB2288 ~~Engrossed~~- 12 -LRB103 30019 JDS 56440 b HB2288 ~~Engrossed~~ - 12 - LRB103 30019 JDS 56440 b
393		-	HB2288 ~~Engrossed~~ - 12 - LRB103 30019 JDS 56440 b
	426	+	HB2288- 12 -LRB103 30019 JDS 56440 b HB2288 - 12 - LRB103 30019 JDS 56440 b
	427	+	HB2288 - 12 - LRB103 30019 JDS 56440 b
394	428		1 transferred to the Commission on Equity and Inclusion.
395	429		2 All books, records, papers, documents, property (real and
396	430		3 personal), contracts, causes of action, and pending business
397	431		4 pertaining to the powers, duties, rights, and responsibilities
398	432		5 transferred by this amendatory Act from the Department of
399	433		6 Central Management Services to the Commission on Equity and
400	434		7 Inclusion, including, but not limited to, material in
401	435		8 electronic or magnetic format and necessary computer hardware
402	436		9 and software, shall be transferred to the Commission on Equity
403	437		10 and Inclusion.
404	438		11 The powers, duties, rights, and responsibilities
405	439		12 transferred from the Department of Central Management Services
406	440		13 by this amendatory Act shall be vested in and shall be
407	441		14 exercised by the Commission on Equity and Inclusion.
408	442		15 Whenever reports or notices are now required to be made or
409	443		16 given or papers or documents furnished or served by any person
410	444		17 to or upon the Department of Central Management Services in
411	445		18 connection with any of the powers, duties, rights, and
412	446		19 responsibilities transferred by this amendatory Act, the same
413	447		20 shall be made, given, furnished, or served in the same manner
414	448		21 to or upon the Commission on Equity and Inclusion.
415	449		22 This amendatory Act of the 102nd General Assembly does not
416	450		23 affect any act done, ratified, or canceled or any right
417	451		24 occurring or established or any action or proceeding had or
418	452		25 commenced in an administrative, civil, or criminal cause by
419	453		26 the Department of Central Management Services before this
420	454
421	455
422	456
423	457
424	458
425		-	HB2288 ~~Engrossed~~ - 12 - LRB103 30019 JDS 56440 b
	459	+	HB2288 - 12 - LRB103 30019 JDS 56440 b
426	460
427	461
428		-	HB2288 ~~Engrossed~~- 13 -LRB103 30019 JDS 56440 b HB2288 ~~Engrossed~~ - 13 - LRB103 30019 JDS 56440 b
429		-	HB2288 ~~Engrossed~~ - 13 - LRB103 30019 JDS 56440 b
	462	+	HB2288- 13 -LRB103 30019 JDS 56440 b HB2288 - 13 - LRB103 30019 JDS 56440 b
	463	+	HB2288 - 13 - LRB103 30019 JDS 56440 b
430	464		1 amendatory Act takes effect; such actions or proceedings may
431	465		2 be prosecuted and continued by the Commission on Equity and
432	466		3 Inclusion.
433	467		4 Any rules of the Department of Central Management Services
434	468		5 that relate to its powers, duties, rights, and
435	469		6 responsibilities under this Section and are in full force on
436	470		7 the effective date of this amendatory Act of the 102nd General
437	471		8 Assembly shall become the rules of the Commission on Equity
438	472		9 and Inclusion. This amendatory Act does not affect the
439	473		10 legality of any such rules in the Illinois Administrative
440	474		11 Code. Any proposed rules filed with the Secretary of State by
441	475		12 the Department of Central Management Services that are pending
442	476		13 in the rulemaking process on the effective date of this
443	477		14 amendatory Act and pertain to the powers, duties, rights, and
444	478		15 responsibilities transferred, shall be deemed to have been
445	479		16 filed by the Commission on Equity and Inclusion. As soon as
446	480		17 practicable hereafter, the Commission on Equity and Inclusion
447	481		18 shall revise and clarify the rules transferred to it under
448	482		19 this amendatory Act to reflect the reorganization of powers,
449	483		20 duties, rights, and responsibilities affected by this
450	484		21 amendatory Act, using the procedures for recodification of
451	485		22 rules available under the Illinois Administrative Procedure
452	486		23 Act, except that existing title, part, and section numbering
453	487		24 for the affected rules may be retained. The Commission on
454	488		25 Equity and Inclusion may propose and adopt under the Illinois
455	489		26 Administrative Procedure Act such other rules of the
456	490
457	491
458	492
459	493
460	494
461		-	HB2288 ~~Engrossed~~ - 13 - LRB103 30019 JDS 56440 b
	495	+	HB2288 - 13 - LRB103 30019 JDS 56440 b
462	496
463	497
464		-	HB2288 ~~Engrossed~~- 14 -LRB103 30019 JDS 56440 b HB2288 ~~Engrossed~~ - 14 - LRB103 30019 JDS 56440 b
465		-	HB2288 ~~Engrossed~~ - 14 - LRB103 30019 JDS 56440 b
	498	+	HB2288- 14 -LRB103 30019 JDS 56440 b HB2288 - 14 - LRB103 30019 JDS 56440 b
	499	+	HB2288 - 14 - LRB103 30019 JDS 56440 b
466	500		1 Department of Central Management Services that will now be
467	501		2 administered by the Commission on Equity and Inclusion.
468	502		3 (Source: P.A. 102-166, eff. 7-26-21; 102-671, eff. 11-30-21.)
469	503
470	504
471	505
472	506
473	507
474		-	HB2288 ~~Engrossed~~ - 14 - LRB103 30019 JDS 56440 b
	508	+	HB2288 - 14 - LRB103 30019 JDS 56440 b