103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB3864 Introduced , by Rep. Hoan Huynh SYNOPSIS AS INTRODUCED: 30 ILCS 575/2 30 ILCS 575/4 from Ch. 127, par. 132.604 30 ILCS 575/7 from Ch. 127, par. 132.607 30 ILCS 575/8 from Ch. 127, par. 132.608 30 ILCS 575/8f Amends the Business Enterprise for Minorities, Women, and Persons with Disabilities Act. Provides that not less than 40% of the total dollar amount of State contracts shall be established as an aspirational goal to be awarded to businesses owned by minorities. Provides that of the total amount of all State contracts awarded to businesses owned by minorities, contracts representing at least 20% shall be awarded to businesses owned by black or African American persons. Removes provisions allowing for a waiver from contract goals established under the Act. Requires the return of specified funds for failing to accomplish contract goals established under the Act. Makes conforming changes. LRB103 31036 HLH 57654 b A BILL FOR 103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB3864 Introduced , by Rep. Hoan Huynh SYNOPSIS AS INTRODUCED: 30 ILCS 575/2 30 ILCS 575/4 from Ch. 127, par. 132.604 30 ILCS 575/7 from Ch. 127, par. 132.607 30 ILCS 575/8 from Ch. 127, par. 132.608 30 ILCS 575/8f 30 ILCS 575/2 30 ILCS 575/4 from Ch. 127, par. 132.604 30 ILCS 575/7 from Ch. 127, par. 132.607 30 ILCS 575/8 from Ch. 127, par. 132.608 30 ILCS 575/8f Amends the Business Enterprise for Minorities, Women, and Persons with Disabilities Act. Provides that not less than 40% of the total dollar amount of State contracts shall be established as an aspirational goal to be awarded to businesses owned by minorities. Provides that of the total amount of all State contracts awarded to businesses owned by minorities, contracts representing at least 20% shall be awarded to businesses owned by black or African American persons. Removes provisions allowing for a waiver from contract goals established under the Act. Requires the return of specified funds for failing to accomplish contract goals established under the Act. Makes conforming changes. LRB103 31036 HLH 57654 b LRB103 31036 HLH 57654 b A BILL FOR
103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB3864 Introduced , by Rep. Hoan Huynh SYNOPSIS AS INTRODUCED:
30 ILCS 575/2 30 ILCS 575/4 from Ch. 127, par. 132.604 30 ILCS 575/7 from Ch. 127, par. 132.607 30 ILCS 575/8 from Ch. 127, par. 132.608 30 ILCS 575/8f 30 ILCS 575/2 30 ILCS 575/4 from Ch. 127, par. 132.604 30 ILCS 575/7 from Ch. 127, par. 132.607 30 ILCS 575/8 from Ch. 127, par. 132.608 30 ILCS 575/8f
30 ILCS 575/2
30 ILCS 575/4 from Ch. 127, par. 132.604
30 ILCS 575/7 from Ch. 127, par. 132.607
30 ILCS 575/8 from Ch. 127, par. 132.608
30 ILCS 575/8f
Amends the Business Enterprise for Minorities, Women, and Persons with Disabilities Act. Provides that not less than 40% of the total dollar amount of State contracts shall be established as an aspirational goal to be awarded to businesses owned by minorities. Provides that of the total amount of all State contracts awarded to businesses owned by minorities, contracts representing at least 20% shall be awarded to businesses owned by black or African American persons. Removes provisions allowing for a waiver from contract goals established under the Act. Requires the return of specified funds for failing to accomplish contract goals established under the Act. Makes conforming changes.
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A BILL FOR
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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 Business Enterprise for Minorities, Women,
5 and Persons with Disabilities Act is amended by changing
6 Sections 2, 4, 7, 8, and 8f as follows:
7 (30 ILCS 575/2)
8 (Section scheduled to be repealed on June 30, 2024)
9 Sec. 2. Definitions.
10 (A) For the purpose of this Act, the following terms shall
11 have the following definitions:
12 (1) "Minority person" shall mean a person who is a
13 citizen or lawful permanent resident of the United States
14 and who is any of the following:
15 (a) American Indian or Alaska Native (a person
16 having origins in any of the original peoples of North
17 and South America, including Central America, and who
18 maintains tribal affiliation or community attachment).
19 (b) Asian (a person having origins in any of the
20 original peoples of the Far East, Southeast Asia, or
21 the Indian subcontinent, including, but not limited
22 to, Cambodia, China, India, Japan, Korea, Malaysia,
23 Pakistan, the Philippine Islands, Thailand, and
103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB3864 Introduced , by Rep. Hoan Huynh SYNOPSIS AS INTRODUCED:
30 ILCS 575/2 30 ILCS 575/4 from Ch. 127, par. 132.604 30 ILCS 575/7 from Ch. 127, par. 132.607 30 ILCS 575/8 from Ch. 127, par. 132.608 30 ILCS 575/8f 30 ILCS 575/2 30 ILCS 575/4 from Ch. 127, par. 132.604 30 ILCS 575/7 from Ch. 127, par. 132.607 30 ILCS 575/8 from Ch. 127, par. 132.608 30 ILCS 575/8f
30 ILCS 575/2
30 ILCS 575/4 from Ch. 127, par. 132.604
30 ILCS 575/7 from Ch. 127, par. 132.607
30 ILCS 575/8 from Ch. 127, par. 132.608
30 ILCS 575/8f
Amends the Business Enterprise for Minorities, Women, and Persons with Disabilities Act. Provides that not less than 40% of the total dollar amount of State contracts shall be established as an aspirational goal to be awarded to businesses owned by minorities. Provides that of the total amount of all State contracts awarded to businesses owned by minorities, contracts representing at least 20% shall be awarded to businesses owned by black or African American persons. Removes provisions allowing for a waiver from contract goals established under the Act. Requires the return of specified funds for failing to accomplish contract goals established under the Act. Makes conforming changes.
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A BILL FOR
30 ILCS 575/2
30 ILCS 575/4 from Ch. 127, par. 132.604
30 ILCS 575/7 from Ch. 127, par. 132.607
30 ILCS 575/8 from Ch. 127, par. 132.608
30 ILCS 575/8f
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1 Vietnam).
2 (c) Black or African American (a person having
3 origins in any of the black racial groups of Africa).
4 (d) Hispanic or Latino (a person of Cuban,
5 Mexican, Puerto Rican, South or Central American, or
6 other Spanish culture or origin, regardless of race).
7 (e) Native Hawaiian or Other Pacific Islander (a
8 person having origins in any of the original peoples
9 of Hawaii, Guam, Samoa, or other Pacific Islands).
10 (2) "Woman" shall mean a person who is a citizen or
11 lawful permanent resident of the United States and who is
12 of the female gender.
13 (2.05) "Person with a disability" means a person who
14 is a citizen or lawful resident of the United States and is
15 a person qualifying as a person with a disability under
16 subdivision (2.1) of this subsection (A).
17 (2.1) "Person with a disability" means a person with a
18 severe physical or mental disability that:
19 (a) results from:
20 amputation,
21 arthritis,
22 autism,
23 blindness,
24 burn injury,
25 cancer,
26 cerebral palsy,
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1 Crohn's disease,
2 cystic fibrosis,
3 deafness,
4 head injury,
5 heart disease,
6 hemiplegia,
7 hemophilia,
8 respiratory or pulmonary dysfunction,
9 an intellectual disability,
10 mental illness,
11 multiple sclerosis,
12 muscular dystrophy,
13 musculoskeletal disorders,
14 neurological disorders, including stroke and
15 epilepsy,
16 paraplegia,
17 quadriplegia and other spinal cord conditions,
18 sickle cell anemia,
19 ulcerative colitis,
20 specific learning disabilities, or
21 end stage renal failure disease; and
22 (b) substantially limits one or more of the
23 person's major life activities.
24 Another disability or combination of disabilities may
25 also be considered as a severe disability for the purposes
26 of item (a) of this subdivision (2.1) if it is determined
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1 by an evaluation of rehabilitation potential to cause a
2 comparable degree of substantial functional limitation
3 similar to the specific list of disabilities listed in
4 item (a) of this subdivision (2.1).
5 (3) "Minority-owned business" means a business which
6 is at least 51% owned by one or more minority persons, or
7 in the case of a corporation, at least 51% of the stock in
8 which is owned by one or more minority persons; and the
9 management and daily business operations of which are
10 controlled by one or more of the minority individuals who
11 own it.
12 (4) "Women-owned business" means a business which is
13 at least 51% owned by one or more women, or, in the case of
14 a corporation, at least 51% of the stock in which is owned
15 by one or more women; and the management and daily
16 business operations of which are controlled by one or more
17 of the women who own it.
18 (4.1) "Business owned by a person with a disability"
19 means a business that is at least 51% owned by one or more
20 persons with a disability and the management and daily
21 business operations of which are controlled by one or more
22 of the persons with disabilities who own it. A
23 not-for-profit agency for persons with disabilities that
24 is exempt from taxation under Section 501 of the Internal
25 Revenue Code of 1986 is also considered a "business owned
26 by a person with a disability".
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1 (4.2) "Council" means the Business Enterprise Council
2 for Minorities, Women, and Persons with Disabilities
3 created under Section 5 of this Act.
4 (4.3) "Commission" means, unless the context clearly
5 indicates otherwise, the Commission on Equity and
6 Inclusion created under the Commission on Equity and
7 Inclusion Act.
8 (5) "State contracts" means all contracts entered into
9 by the State, any agency or department thereof, or any
10 public institution of higher education, including
11 community college districts, regardless of the source of
12 the funds with which the contracts are paid, which are not
13 subject to federal reimbursement. "State contracts" does
14 not include contracts awarded by a retirement system,
15 pension fund, or investment board subject to Section
16 1-109.1 of the Illinois Pension Code. This definition
17 shall control over any existing definition under this Act
18 or applicable administrative rule.
19 "State construction contracts" means all State
20 contracts entered into by a State agency or public
21 institution of higher education for the repair,
22 remodeling, renovation or construction of a building or
23 structure, or for the construction or maintenance of a
24 highway defined in Article 2 of the Illinois Highway Code.
25 (6) "State agencies" shall mean all departments,
26 officers, boards, commissions, institutions and bodies
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1 politic and corporate of the State, but does not include
2 the Board of Trustees of the University of Illinois, the
3 Board of Trustees of Southern Illinois University, the
4 Board of Trustees of Chicago State University, the Board
5 of Trustees of Eastern Illinois University, the Board of
6 Trustees of Governors State University, the Board of
7 Trustees of Illinois State University, the Board of
8 Trustees of Northeastern Illinois University, the Board of
9 Trustees of Northern Illinois University, the Board of
10 Trustees of Western Illinois University, municipalities or
11 other local governmental units, or other State
12 constitutional officers.
13 (7) "Public institutions of higher education" means
14 the University of Illinois, Southern Illinois University,
15 Chicago State University, Eastern Illinois University,
16 Governors State University, Illinois State University,
17 Northeastern Illinois University, Northern Illinois
18 University, Western Illinois University, the public
19 community colleges of the State, and any other public
20 universities, colleges, and community colleges now or
21 hereafter established or authorized by the General
22 Assembly.
23 (8) "Certification" means a determination made by the
24 Council or by one delegated authority from the Council to
25 make certifications, or by a State agency with statutory
26 authority to make such a certification, that a business
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1 entity is a business owned by a minority, woman, or person
2 with a disability for whatever purpose. A business owned
3 and controlled by women shall be certified as a
4 "woman-owned business". A business owned and controlled by
5 women who are also minorities shall be certified as both a
6 "women-owned business" and a "minority-owned business".
7 (9) "Control" means the exclusive or ultimate and sole
8 control of the business including, but not limited to,
9 capital investment and all other financial matters,
10 property, acquisitions, contract negotiations, legal
11 matters, officer-director-employee selection and
12 comprehensive hiring, operating responsibilities,
13 cost-control matters, income and dividend matters,
14 financial transactions and rights of other shareholders or
15 joint partners. Control shall be real, substantial and
16 continuing, not pro forma. Control shall include the power
17 to direct or cause the direction of the management and
18 policies of the business and to make the day-to-day as
19 well as major decisions in matters of policy, management
20 and operations. Control shall be exemplified by possessing
21 the requisite knowledge and expertise to run the
22 particular business and control shall not include simple
23 majority or absentee ownership.
24 (10) "Business" means a business that has annual gross
25 sales of less than $150,000,000 as evidenced by the
26 federal income tax return of the business. A firm with
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1 gross sales in excess of this cap may apply to the Council
2 for certification for a particular contract if the firm
3 can demonstrate that the contract would have significant
4 impact on businesses owned by minorities, women, or
5 persons with disabilities as suppliers or subcontractors
6 or in employment of minorities, women, or persons with
7 disabilities. Firms with gross sales in excess of this cap
8 that are granted certification by the Council shall be
9 granted certification for the life of the contract,
10 including available renewals.
11 (11) "Utilization plan" means a form and additional
12 documentations included in all bids or proposals that
13 demonstrates a vendor's proposed utilization of vendors
14 certified by the Business Enterprise Program to meet the
15 targeted goal. The utilization plan shall demonstrate that
16 the Vendor has either: (1) met the entire contract goal or
17 (2) requested a full or partial waiver and made good faith
18 efforts towards meeting the goal.
19 (12) "Business Enterprise Program" means the Business
20 Enterprise Program of the Commission on Equity and
21 Inclusion.
22 (B) When a business is owned at least 51% by any
23 combination of minority persons, women, or persons with
24 disabilities, even though none of the 3 classes alone holds at
25 least a 51% interest, the ownership requirement for purposes
26 of this Act is considered to be met. The certification
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1 category for the business is that of the class holding the
2 largest ownership interest in the business. If 2 or more
3 classes have equal ownership interests, the certification
4 category shall be determined by the business.
5 (Source: P.A. 101-601, eff. 1-1-20; 101-657, eff. 1-1-22;
6 102-29, eff. 6-25-21; 102-1119, eff. 1-23-23.)
7 (30 ILCS 575/4) (from Ch. 127, par. 132.604)
8 (Section scheduled to be repealed on June 30, 2024)
9 Sec. 4. Award of State contracts.
10 (a) Except as provided in subsection (b), not less than
11 30% of the total dollar amount of State contracts, as defined
12 by the Secretary of the Council and approved by the Council,
13 shall be established as an aspirational goal to be awarded to
14 businesses owned by minorities, women, and persons with
15 disabilities; provided, however, that of the total amount of
16 all State contracts awarded to businesses owned by minorities,
17 women, and persons with disabilities pursuant to this Section,
18 contracts representing at least 16% shall be awarded to
19 businesses owned by minorities, contracts representing at
20 least 10% shall be awarded to women-owned businesses, and
21 contracts representing at least 10% 4% shall be awarded to
22 businesses owned by persons with disabilities.
23 Additionally, not less than 40% of the total dollar amount
24 of State contracts shall be established as an aspirational
25 goal to be awarded to businesses owned by minorities;
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1 provided, however, that of the total amount of all State
2 contracts awarded to businesses owned by minorities, contracts
3 representing at least 20% shall be awarded to businesses owned
4 by black or African American persons.
5 (a-5) In addition to the aspirational goals in awarding
6 State contracts set under subsection (a), the Commission shall
7 by rule further establish targeted efforts to encourage the
8 participation of businesses owned by minorities, women, and
9 persons with disabilities on State contracts. Such efforts
10 shall include, but not be limited to, further concerted
11 outreach efforts to businesses owned by minorities, women, and
12 persons with disabilities.
13 The above percentage relates to the total dollar amount of
14 State contracts during each State fiscal year, calculated by
15 examining independently each type of contract for each agency
16 or public institutions of higher education which lets such
17 contracts. Only that percentage of arrangements which
18 represents the participation of businesses owned by
19 minorities, women, and persons with disabilities on such
20 contracts shall be included. State contracts subject to the
21 requirements of this Act shall include the requirement that
22 only expenditures to businesses owned by minorities, women,
23 and persons with disabilities that perform a commercially
24 useful function may be counted toward the goals set forth by
25 this Act. Contracts shall include a definition of
26 "commercially useful function" that is consistent with 49 CFR
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1 26.55(c).
2 (b) Not less than 20% of the total dollar amount of State
3 construction contracts is established as an aspirational goal
4 to be awarded to businesses owned by minorities, women, and
5 persons with disabilities; provided that, contracts
6 representing at least 11% of the total dollar amount of State
7 construction contracts shall be awarded to businesses owned by
8 minorities; contracts representing at least 7% of the total
9 dollar amount of State construction contracts shall be awarded
10 to women-owned businesses; and contracts representing at least
11 2% of the total dollar amount of State construction contracts
12 shall be awarded to businesses owned by persons with
13 disabilities.
14 (c) (Blank).
15 (c-5) All goals established under this Section shall be
16 contingent upon the results of the most recent disparity study
17 conducted by the State.
18 (d) Within one year after April 28, 2009 (the effective
19 date of Public Act 96-8), the Department of Central Management
20 Services shall conduct a social scientific study that measures
21 the impact of discrimination on minority and women business
22 development in Illinois. Within 18 months after April 28, 2009
23 (the effective date of Public Act 96-8), the Department shall
24 issue a report of its findings and any recommendations on
25 whether to adjust the goals for minority and women
26 participation established in this Act. Copies of this report
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1 and the social scientific study shall be filed with the
2 Governor and the General Assembly.
3 By December 1, 2020, the Department of Central Management
4 Services shall conduct a new social scientific study that
5 measures the impact of discrimination on minority and women
6 business development in Illinois. By June 1, 2022, the
7 Department shall issue a report of its findings and any
8 recommendations on whether to adjust the goals for minority
9 and women participation established in this Act. Copies of
10 this report and the social scientific study shall be filed
11 with the Governor and the General Assembly. By December 1,
12 2022, the Commission on Equity and Inclusion Business
13 Enterprise Program shall develop a model for social scientific
14 disparity study sourcing for local governmental units to adapt
15 and implement to address regional disparities in public
16 procurement.
17 (e) All State contract solicitations that include Business
18 Enterprise Program participation goals shall require bidders
19 or offerors to include utilization plans. Utilization plans
20 are due at the time of bid or offer submission. Failure to
21 complete and include a utilization plan, including
22 documentation demonstrating good faith efforts when requesting
23 a waiver, shall render the bid or offer non-responsive.
24 Except as permitted under this Act or as otherwise
25 mandated by federal regulation, a bidder or offeror whose bid
26 or offer is accepted and who included in that bid a completed
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1 utilization plan but who fails to meet the goals set forth in
2 the plan shall be notified of the deficiency by the
3 contracting agency or public institution of higher education
4 and shall be given a period of 10 calendar days to cure the
5 deficiency by contracting with additional subcontractors who
6 are certified by the Business Enterprise Program or by
7 increasing the work to be performed by previously identified
8 vendors certified by the Business Enterprise Program.
9 Deficiencies that may be cured include: (i) scrivener's
10 errors, such as transposed numbers; (ii) information submitted
11 in an incorrect form or format; (iii) mistakes resulting from
12 failure to follow instructions or to identify and adequately
13 document good faith efforts taken to comply with the
14 utilization plan; or (iv) a proposal to use a firm whose
15 Business Enterprise Program certification has lapsed or is not
16 yet recognized. Cure is not authorized if the bidder or
17 offeror submits a blank utilization plan, a utilization plan
18 that shows lack of reasonable effort to complete the form on
19 time, or a utilization plan that states the contract will be
20 self-performed, by a non-certified vendor, without showing
21 good faith efforts or a request for a waiver. All cure activity
22 shall address the deficiencies identified by the purchasing
23 agency and shall require clear documentation, including that
24 of good faith efforts, to address those deficiencies. Any
25 increase in cost to a contract for the addition of a
26 subcontractor to cure a bid's deficiency shall not affect the
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1 bid price and shall not be used in the request for an exemption
2 under this Act, and, in no case, shall an identified
3 subcontractor with a Business Enterprise Program certification
4 made under this Act be terminated from a contract without the
5 written consent of the State agency or public institution of
6 higher education entering into the contract. The purchasing
7 agency or public institution of higher education shall make
8 the determination whether the cure is adequate.
9 Vendors certified with the Business Enterprise Program at
10 the time and date submittals are due and who do not submit a
11 utilization plan or have utilization plan deficiencies shall
12 have 10 business days to submit a utilization plan or to
13 correct the utilization plan deficiencies.
14 (f) (Blank).
15 (g) (Blank).
16 (h) State agencies and public institutions of higher
17 education shall notify the Commission on Equity and Inclusion
18 of all non-responsive bids or proposals for State contracts.
19 (Source: P.A. 101-170, eff. 1-1-20; 101-601, eff. 1-1-20;
20 101-657, Article 1, Section 1-5, eff. 1-1-22; 101-657, Article
21 40, Section 40-130, eff. 1-1-22; 102-29, eff. 6-25-21;
22 102-558, eff. 8-20-21; 102-1119, eff. 1-23-23.)
23 (30 ILCS 575/7) (from Ch. 127, par. 132.607)
24 (Section scheduled to be repealed on June 30, 2024)
25 Sec. 7. Exemptions; waivers; publication of data.
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1 (1) Individual contract exemptions. The Council, at the
2 written request of the affected agency, public institution of
3 higher education, or recipient of a grant or loan of State
4 funds of $250,000 or more complying with Section 45 of the
5 State Finance Act, may permit an individual contract or
6 contract package, (related contracts being bid or awarded
7 simultaneously for the same project or improvements) be made
8 wholly or partially exempt from State contracting goals for
9 businesses owned by minorities, women, and persons with
10 disabilities prior to the advertisement for bids or
11 solicitation of proposals whenever there has been a
12 determination, reduced to writing and based on the best
13 information available at the time of the determination, that
14 there is an insufficient number of businesses owned by
15 minorities, women, and persons with disabilities to ensure
16 adequate competition and an expectation of reasonable prices
17 on bids or proposals solicited for the individual contract or
18 contract package in question. Any such exemptions shall be
19 given by the Council to the Bureau on Apprenticeship Programs
20 and Clean Energy Jobs.
21 (a) Written request for contract exemption. A written
22 request for an individual contract exemption must include,
23 but is not limited to, the following:
24 (i) a list of eligible businesses owned by
25 minorities, women, and persons with disabilities;
26 (ii) a clear demonstration that the number of
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1 eligible businesses identified in subparagraph (i)
2 above is insufficient to ensure adequate competition;
3 (iii) the difference in cost between the contract
4 proposals being offered by businesses owned by
5 minorities, women, and persons with disabilities and
6 the agency or public institution of higher education's
7 expectations of reasonable prices on bids or proposals
8 within that class; and
9 (iv) a list of eligible businesses owned by
10 minorities, women, and persons with disabilities that
11 the contractor has used in the current and prior
12 fiscal years.
13 (b) Determination. The Council's determination
14 concerning an individual contract exemption must consider,
15 at a minimum, the following:
16 (i) the justification for the requested exemption,
17 including whether diligent efforts were undertaken to
18 identify and solicit eligible businesses owned by
19 minorities, women, and persons with disabilities;
20 (ii) the total number of exemptions granted to the
21 affected agency, public institution of higher
22 education, or recipient of a grant or loan of State
23 funds of $250,000 or more complying with Section 45 of
24 the State Finance Act that have been granted by the
25 Council in the current and prior fiscal years; and
26 (iii) the percentage of contracts awarded by the
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1 agency or public institution of higher education to
2 eligible businesses owned by minorities, women, and
3 persons with disabilities in the current and prior
4 fiscal years.
5 (2) Class exemptions.
6 (a) Creation. The Council, at the written request of
7 the affected agency or public institution of higher
8 education, may permit an entire class of contracts be made
9 exempt from State contracting goals for businesses owned
10 by minorities, women, and persons with disabilities
11 whenever there has been a determination, reduced to
12 writing and based on the best information available at the
13 time of the determination, that there is an insufficient
14 number of qualified businesses owned by minorities, women,
15 and persons with disabilities to ensure adequate
16 competition and an expectation of reasonable prices on
17 bids or proposals within that class. Any such exemption
18 shall be given by the Council to the Bureau on
19 Apprenticeship Programs and Clean Energy Jobs.
20 (a-1) Written request for class exemption. A written
21 request for a class exemption must include, but is not
22 limited to, the following:
23 (i) a list of eligible businesses owned by
24 minorities, women, and persons with disabilities;
25 (ii) a clear demonstration that the number of
26 eligible businesses identified in subparagraph (i)
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1 above is insufficient to ensure adequate competition;
2 (iii) the difference in cost between the contract
3 proposals being offered by eligible businesses owned
4 by minorities, women, and persons with disabilities
5 and the agency or public institution of higher
6 education's expectations of reasonable prices on bids
7 or proposals within that class; and
8 (iv) the number of class exemptions the affected
9 agency or public institution of higher education
10 requested in the current and prior fiscal years.
11 (a-2) Determination. The Council's determination
12 concerning class exemptions must consider, at a minimum,
13 the following:
14 (i) the justification for the requested exemption,
15 including whether diligent efforts were undertaken to
16 identify and solicit eligible businesses owned by
17 minorities, women, and persons with disabilities;
18 (ii) the total number of class exemptions granted
19 to the requesting agency or public institution of
20 higher education that have been granted by the Council
21 in the current and prior fiscal years; and
22 (iii) the percentage of contracts awarded by the
23 agency or public institution of higher education to
24 eligible businesses owned by minorities, women, and
25 persons with disabilities the current and prior fiscal
26 years.
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1 (b) Limitation. Any such class exemption shall not be
2 permitted for a period of more than one year at a time.
3 (3) (Blank). Waivers. Where a particular contract requires
4 a contractor to meet a goal established pursuant to this Act,
5 the contractor shall have the right to request a waiver from
6 such requirements prior to the contract award. The Council
7 shall grant the waiver when the contractor demonstrates that
8 there has been made a good faith effort to comply with the
9 goals for participation by businesses owned by minorities,
10 women, and persons with disabilities. Any such waiver shall
11 also be transmitted in writing to the Bureau on Apprenticeship
12 Programs and Clean Energy Jobs.
13 (a) Request for waiver. A contractor's request for a
14 waiver under this subsection (3) must include, but is not
15 limited to, the following, if available:
16 (i) a list of eligible businesses owned by
17 minorities, women, and persons with disabilities that
18 pertain to the scope of work of the contract. Eligible
19 businesses are only eligible if the business is
20 certified for the products or work advertised in the
21 solicitation;
22 (ii) (blank);
23 (iia) a clear demonstration that the contractor
24 selected portions of the work to be performed by
25 eligible businesses owned by minorities, women, and
26 persons with disabilities, solicited through all
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1 reasonable and available means eligible businesses,
2 and negotiated in good faith with interested eligible
3 businesses;
4 (iib) documentation demonstrating that businesses
5 owned by minorities, women, and persons with
6 disabilities are not rejected as being unqualified
7 without sound reasons based on a thorough
8 investigation of their capabilities;
9 (iii) documentation demonstrating that the
10 contract proposals being offered by businesses owned
11 by minorities, women, and persons with disabilities
12 are excessive or unreasonable; and
13 (iv) a list of businesses owned by minorities,
14 women, and persons with disabilities that the
15 contractor has used in the current and prior fiscal
16 years.
17 (b) Determination. The Council's determination
18 concerning waivers must include following:
19 (i) the justification for the requested waiver,
20 including whether the requesting contractor made a
21 good faith effort to identify and solicit eligible
22 businesses owned by minorities, women, and persons
23 with disabilities;
24 (ii) the total number of waivers the contractor
25 has been granted by the Council in the current and
26 prior fiscal years;
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1 (iii) (blank); and
2 (iv) the contractor's use of businesses owned by
3 minorities, women, and persons with disabilities in
4 the current and prior fiscal years.
5 (3.5) (Blank).
6 (4) Conflict with other laws. In the event that any State
7 contract, which otherwise would be subject to the provisions
8 of this Act, is or becomes subject to federal laws or
9 regulations which conflict with the provisions of this Act or
10 actions of the State taken pursuant hereto, the provisions of
11 the federal laws or regulations shall apply and the contract
12 shall be interpreted and enforced accordingly.
13 (5) Each chief procurement officer, as defined in the
14 Illinois Procurement Code, shall maintain on his or her
15 official Internet website a database of the following: (i)
16 waivers granted under this Section with respect to contracts
17 under his or her jurisdiction; (ii) a State agency or public
18 institution of higher education's written request for an
19 exemption of an individual contract or an entire class of
20 contracts; and (iii) the Council's written determination
21 granting or denying a request for an exemption of an
22 individual contract or an entire class of contracts. The
23 database, which shall be updated periodically as necessary,
24 shall be searchable by contractor name and by contracting
25 State agency.
26 (6) Each chief procurement officer, as defined by the
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1 Illinois Procurement Code, shall maintain on its website a
2 list of all firms that have been prohibited from bidding,
3 offering, or entering into a contract with the State of
4 Illinois as a result of violations of this Act.
5 Each public notice required by law of the award of a State
6 contract shall include for each bid or offer submitted for
7 that contract the following: (i) the bidder's or offeror's
8 name, (ii) the bid amount, (iii) the name or names of the
9 certified firms identified in the bidder's or offeror's
10 submitted utilization plan, and (iv) the bid's amount and
11 percentage of the contract awarded to businesses owned by
12 minorities, women, and persons with disabilities identified in
13 the utilization plan.
14 (Source: P.A. 101-170, eff. 1-1-20; 101-601, eff. 1-1-20;
15 101-657, eff. 1-1-22; 102-29, eff. 6-25-21; 102-662, eff.
16 9-15-21.)
17 (30 ILCS 575/8) (from Ch. 127, par. 132.608)
18 (Section scheduled to be repealed on June 30, 2024)
19 Sec. 8. Enforcement.
20 (1) The Commission on Equity and Inclusion shall make such
21 findings, recommendations and proposals to the Governor as are
22 necessary and appropriate to enforce this Act. If, as a result
23 of its monitoring activities, the Commission determines that
24 its goals and policies are not being met by any State agency or
25 public institution of higher education, the Commission may
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1 recommend any or all of the following actions:
2 (a) Establish enforcement procedures whereby the
3 Commission may recommend to the appropriate State agency,
4 public institutions of higher education, or law
5 enforcement officer that legal or administrative remedies
6 be initiated for violations of contract provisions or
7 rules issued hereunder or by a contracting State agency or
8 public institutions of higher education. State agencies
9 and public institutions of higher education shall be
10 authorized to adopt remedies for such violations which
11 shall include (1) termination of the contract involved,
12 (2) prohibition of participation of the respondents in
13 public contracts for a period not to exceed one year, (3)
14 imposition of a penalty not to exceed any profit acquired
15 as a result of violation, or (4) any combination thereof.
16 (b) If the Commission concludes that a compliance plan
17 submitted under Section 6 is unlikely to produce the
18 participation goals for businesses owned by minorities,
19 women, and persons with disabilities within the then
20 current fiscal year, the Commission may recommend that the
21 State agency or public institution of higher education
22 revise its plan to provide additional opportunities for
23 participation by businesses owned by minorities, women,
24 and persons with disabilities. Such recommended revisions
25 may include, but shall not be limited to, the following:
26 (i) assurances of stronger and better focused
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1 solicitation efforts to obtain more businesses owned
2 by minorities, women, and persons with disabilities as
3 potential sources of supply;
4 (ii) division of job or project requirements, when
5 economically feasible, into tasks or quantities to
6 permit participation of businesses owned by
7 minorities, women, and persons with disabilities;
8 (iii) elimination of extended experience or
9 capitalization requirements, when programmatically
10 feasible, to permit participation of businesses owned
11 by minorities, women, and persons with disabilities;
12 (iv) identification of specific proposed contracts
13 as particularly attractive or appropriate for
14 participation by businesses owned by minorities,
15 women, and persons with disabilities, such
16 identification to result from and be coupled with the
17 efforts of subparagraphs (i) through (iii);
18 (v) implementation of those regulations
19 established for the use of the sheltered market
20 process.
21 (2) State agencies and public institutions of higher
22 education shall monitor a vendor's compliance with its
23 utilization plan and the terms of its contract. Without
24 limitation, a vendor's failure to comply with its contractual
25 commitments as contained in the utilization plan; failure to
26 cooperate in providing information regarding its compliance
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1 with its utilization plan; or the provision of false or
2 misleading information or statements concerning compliance,
3 certification status, or eligibility of the Business
4 Enterprise Program-certified vendor, good faith efforts, or
5 any other material fact or representation shall constitute a
6 material breach of the contract and entitle the State agency
7 or public institution of higher education to declare a
8 default, terminate the contract, or exercise those remedies
9 provided for in the contract, at law, or in equity.
10 (3) Prior to the expiration or termination of a contract,
11 State agencies and public institutions of higher education
12 shall evaluate the contractor's fulfillment of the contract
13 goals for participation by businesses owned by minorities,
14 women, and persons with disabilities. The agency or public
15 institution of higher education shall prepare a report of the
16 vendor's compliance with the contract goals and file it with
17 the Secretary. If the Secretary determines that the vendor did
18 not fulfill the contract goals, the vendor shall be in breach
19 of the contract and may be subject to remedies or sanctions,
20 unless the vendor can show that it made good faith efforts to
21 meet the contract goals. Any vendor failing to meet the
22 contract goals established under this Act shall return all
23 funds which were allocated for, but not awarded to, black or
24 African American owned businesses. The vendor shall have 60
25 days after completion of any project to return such funds.
26 Such remedies or sanctions for failing to make good faith
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1 efforts may include (i) disqualification of the contractor
2 from doing business with the State for a period of no more than
3 one year or (ii) cancellation, without any penalty to the
4 State, of any contract entered into by the vendor. The
5 Business Enterprise Program shall develop procedures for
6 determining whether a vendor has made good faith efforts to
7 meet the contract goals upon the expiration or termination of
8 a contract.
9 (Source: P.A. 101-657, eff. 1-1-22; 102-29, eff. 6-25-21.)
10 (30 ILCS 575/8f)
11 (Section scheduled to be repealed on June 30, 2024)
12 Sec. 8f. Annual report. The Council shall file no later
13 than March 1 of each year, an annual report that shall detail
14 the level of achievement toward the goals specified in this
15 Act over the 3 most recent fiscal years. The annual report
16 shall include, but need not be limited to the following:
17 (1) a summary detailing expenditures subject to the
18 goals, the actual goals specified, and the goals attained
19 by each State agency and public institution of higher
20 education;
21 (2) a summary of the number of contracts awarded and
22 the average contract amount by each State agency and
23 public institution of higher education;
24 (3) an analysis of the level of overall goal
25 achievement concerning purchases from minority-owned
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1 businesses, women-owned businesses, and businesses owned
2 by persons with disabilities;
3 (4) an analysis of the number of businesses owned by
4 minorities, women, and persons with disabilities that are
5 certified under the program as well as the number of those
6 businesses that received State procurement contracts; and
7 (5) a summary of the number of contracts awarded to
8 businesses with annual gross sales of less than
9 $1,000,000; of $1,000,000 or more, but less than
10 $5,000,000; of $5,000,000 or more, but less than
11 $10,000,000; and of $10,000,000 or more; .
12 (6) the total procurement budget of the State and the
13 percentage of the State budget spent on procurement; and
14 (7) the amount of revenue procured by black or African
15 American owned businesses through State contracts.
16 (Source: P.A. 99-462, eff. 8-25-15; 100-391, eff. 8-25-17.)
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