104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 HB1560 Introduced , by Rep. Charles Meier SYNOPSIS AS INTRODUCED: 30 ILCS 575/7 from Ch. 127, par. 132.607 Amends the Business Enterprise for Minorities, Women, and Persons with Disabilities Act. Provides that a waiver shall be deemed granted if the Business Enterprise Council for Minorities, Women, and Persons with Disabilities does not make a determination on the waiver within 30 business days after the initial request for a waiver by the contractor. Effective immediately. LRB104 05996 HLH 16029 b A BILL FOR 104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 HB1560 Introduced , by Rep. Charles Meier SYNOPSIS AS INTRODUCED: 30 ILCS 575/7 from Ch. 127, par. 132.607 30 ILCS 575/7 from Ch. 127, par. 132.607 Amends the Business Enterprise for Minorities, Women, and Persons with Disabilities Act. Provides that a waiver shall be deemed granted if the Business Enterprise Council for Minorities, Women, and Persons with Disabilities does not make a determination on the waiver within 30 business days after the initial request for a waiver by the contractor. Effective immediately. LRB104 05996 HLH 16029 b LRB104 05996 HLH 16029 b A BILL FOR 104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 HB1560 Introduced , by Rep. Charles Meier SYNOPSIS AS INTRODUCED: 30 ILCS 575/7 from Ch. 127, par. 132.607 30 ILCS 575/7 from Ch. 127, par. 132.607 30 ILCS 575/7 from Ch. 127, par. 132.607 Amends the Business Enterprise for Minorities, Women, and Persons with Disabilities Act. Provides that a waiver shall be deemed granted if the Business Enterprise Council for Minorities, Women, and Persons with Disabilities does not make a determination on the waiver within 30 business days after the initial request for a waiver by the contractor. Effective immediately. LRB104 05996 HLH 16029 b LRB104 05996 HLH 16029 b LRB104 05996 HLH 16029 b A BILL FOR HB1560LRB104 05996 HLH 16029 b HB1560 LRB104 05996 HLH 16029 b HB1560 LRB104 05996 HLH 16029 b 1 AN ACT concerning finance. 2 Be it enacted by the People of the State of Illinois, 3 represented in the General Assembly: 4 Section 5. The Business Enterprise for Minorities, Women, 5 and Persons with Disabilities Act is amended by changing 6 Section 7 as follows: 7 (30 ILCS 575/7) (from Ch. 127, par. 132.607) 8 (Section scheduled to be repealed on June 30, 2029) 9 Sec. 7. Exemptions; waivers; publication of data. 10 (1) Individual contract exemptions. The Council, at the 11 written request of the affected agency, public institution of 12 higher education, or recipient of a grant or loan of State 13 funds of $250,000 or more complying with Section 45 of the 14 State Finance Act, may permit an individual contract or 15 contract package, (related contracts being bid or awarded 16 simultaneously for the same project or improvements) be made 17 wholly or partially exempt from State contracting goals for 18 businesses owned by minorities, women, and persons with 19 disabilities prior to the advertisement for bids or 20 solicitation of proposals whenever there has been a 21 determination, reduced to writing and based on the best 22 information available at the time of the determination, that 23 there is an insufficient number of businesses owned by 104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 HB1560 Introduced , by Rep. Charles Meier SYNOPSIS AS INTRODUCED: 30 ILCS 575/7 from Ch. 127, par. 132.607 30 ILCS 575/7 from Ch. 127, par. 132.607 30 ILCS 575/7 from Ch. 127, par. 132.607 Amends the Business Enterprise for Minorities, Women, and Persons with Disabilities Act. Provides that a waiver shall be deemed granted if the Business Enterprise Council for Minorities, Women, and Persons with Disabilities does not make a determination on the waiver within 30 business days after the initial request for a waiver by the contractor. Effective immediately. LRB104 05996 HLH 16029 b LRB104 05996 HLH 16029 b LRB104 05996 HLH 16029 b A BILL FOR 30 ILCS 575/7 from Ch. 127, par. 132.607 LRB104 05996 HLH 16029 b HB1560 LRB104 05996 HLH 16029 b HB1560- 2 -LRB104 05996 HLH 16029 b HB1560 - 2 - LRB104 05996 HLH 16029 b HB1560 - 2 - LRB104 05996 HLH 16029 b 1 minorities, women, and persons with disabilities to ensure 2 adequate competition and an expectation of reasonable prices 3 on bids or proposals solicited for the individual contract or 4 contract package in question. Any such exemptions shall be 5 given by the Council to the Bureau on Apprenticeship Programs 6 and Clean Energy Jobs. 7 (a) Written request for contract exemption. A written 8 request for an individual contract exemption must include, 9 but is not limited to, the following: 10 (i) a list of eligible businesses owned by 11 minorities, women, and persons with disabilities; 12 (ii) a clear demonstration that the number of 13 eligible businesses identified in subparagraph (i) 14 above is insufficient to ensure adequate competition; 15 (iii) the difference in cost between the contract 16 proposals being offered by businesses owned by 17 minorities, women, and persons with disabilities and 18 the agency or public institution of higher education's 19 expectations of reasonable prices on bids or proposals 20 within that class; and 21 (iv) a list of eligible businesses owned by 22 minorities, women, and persons with disabilities that 23 the contractor has used in the current and prior 24 fiscal years. 25 (b) Determination. The Council's determination 26 concerning an individual contract exemption must consider, HB1560 - 2 - LRB104 05996 HLH 16029 b HB1560- 3 -LRB104 05996 HLH 16029 b HB1560 - 3 - LRB104 05996 HLH 16029 b HB1560 - 3 - LRB104 05996 HLH 16029 b 1 at a minimum, the following: 2 (i) the justification for the requested exemption, 3 including whether diligent efforts were undertaken to 4 identify and solicit eligible businesses owned by 5 minorities, women, and persons with disabilities; 6 (ii) the total number of exemptions granted to the 7 affected agency, public institution of higher 8 education, or recipient of a grant or loan of State 9 funds of $250,000 or more complying with Section 45 of 10 the State Finance Act that have been granted by the 11 Council in the current and prior fiscal years; and 12 (iii) the percentage of contracts awarded by the 13 agency or public institution of higher education to 14 eligible businesses owned by minorities, women, and 15 persons with disabilities in the current and prior 16 fiscal years. 17 (2) Class exemptions. 18 (a) Creation. The Council, at the written request of 19 the affected agency or public institution of higher 20 education, may permit an entire class of contracts be made 21 exempt from State contracting goals for businesses owned 22 by minorities, women, and persons with disabilities 23 whenever there has been a determination, reduced to 24 writing and based on the best information available at the 25 time of the determination, that there is an insufficient 26 number of qualified businesses owned by minorities, women, HB1560 - 3 - LRB104 05996 HLH 16029 b HB1560- 4 -LRB104 05996 HLH 16029 b HB1560 - 4 - LRB104 05996 HLH 16029 b HB1560 - 4 - LRB104 05996 HLH 16029 b 1 and persons with disabilities to ensure adequate 2 competition and an expectation of reasonable prices on 3 bids or proposals within that class. Any such exemption 4 shall be given by the Council to the Bureau on 5 Apprenticeship Programs and Clean Energy Jobs. 6 (a-1) Written request for class exemption. A written 7 request for a class exemption must include, but is not 8 limited to, the following: 9 (i) a list of eligible businesses owned by 10 minorities, women, and persons with disabilities; 11 (ii) a clear demonstration that the number of 12 eligible businesses identified in subparagraph (i) 13 above is insufficient to ensure adequate competition; 14 (iii) the difference in cost between the contract 15 proposals being offered by eligible businesses owned 16 by minorities, women, and persons with disabilities 17 and the agency or public institution of higher 18 education's expectations of reasonable prices on bids 19 or proposals within that class; and 20 (iv) the number of class exemptions the affected 21 agency or public institution of higher education 22 requested in the current and prior fiscal years. 23 (a-2) Determination. The Council's determination 24 concerning class exemptions must consider, at a minimum, 25 the following: 26 (i) the justification for the requested exemption, HB1560 - 4 - LRB104 05996 HLH 16029 b HB1560- 5 -LRB104 05996 HLH 16029 b HB1560 - 5 - LRB104 05996 HLH 16029 b HB1560 - 5 - LRB104 05996 HLH 16029 b 1 including whether diligent efforts were undertaken to 2 identify and solicit eligible businesses owned by 3 minorities, women, and persons with disabilities; 4 (ii) the total number of class exemptions granted 5 to the requesting agency or public institution of 6 higher education that have been granted by the Council 7 in the current and prior fiscal years; and 8 (iii) the percentage of contracts awarded by the 9 agency or public institution of higher education to 10 eligible businesses owned by minorities, women, and 11 persons with disabilities the current and prior fiscal 12 years. 13 (b) Limitation. Any such class exemption shall not be 14 permitted for a period of more than one year at a time. 15 (3) Waivers. Where a particular contract requires a vendor 16 to meet a goal established pursuant to this Act, the vendor 17 shall have the right to request a waiver from such 18 requirements prior to the contract award. The Business 19 Enterprise Program shall evaluate a vendor's request for a 20 waiver based on the vendor's documented good faith efforts to 21 meet the contract-specific Business Enterprise Program goal. 22 The Council shall grant the waiver when the contractor 23 demonstrates that there has been made a good faith effort to 24 comply with the goals for participation by businesses owned by 25 minorities, women, and persons with disabilities. Any such 26 waiver shall also be transmitted in writing to the Bureau on HB1560 - 5 - LRB104 05996 HLH 16029 b HB1560- 6 -LRB104 05996 HLH 16029 b HB1560 - 6 - LRB104 05996 HLH 16029 b HB1560 - 6 - LRB104 05996 HLH 16029 b 1 Apprenticeship Programs and Clean Energy Jobs. A waiver shall 2 be deemed granted if the Council does not make a determination 3 on the waiver within 30 business days after the initial 4 request for a waiver by the contractor. 5 (a) Request for waiver. A vendor's request for a 6 waiver under this subsection (3) must include, but is not 7 limited to, the following: 8 (i) a list of eligible businesses owned by 9 minorities, women, and persons with disabilities that 10 pertain to the the class of contracts in the requested 11 waiver that were contacted by the vendor. Eligible 12 businesses are only eligible if the business is 13 certified for the products or work advertised in the 14 solicitation or bid; 15 (ii) (blank); 16 (iia) a clear demonstration that the vendor 17 selected portions of the work to be performed by 18 certified vendors to facilitate meeting the contract 19 specific goal, and that certified vendors that have 20 the capability to perform the work of the contract 21 were solicited through all reasonable and available 22 means; 23 (iib) documentation demonstrating that certified 24 vendors are not rejected as being unqualified without 25 sound reasons based on a thorough investigation of 26 their capabilities. The certified vendor's standing HB1560 - 6 - LRB104 05996 HLH 16029 b HB1560- 7 -LRB104 05996 HLH 16029 b HB1560 - 7 - LRB104 05996 HLH 16029 b HB1560 - 7 - LRB104 05996 HLH 16029 b 1 within its industry, membership in specific groups, 2 organizations, or associations, and political or 3 social affiliations are not legitimate causes for 4 rejecting or not contacting or negotiating with a 5 certified vendor; 6 (iic) proof that the prime vendor solicited 7 eligible certified vendors with: (1) sufficient time 8 to respond; (2) adequate information about the scope, 9 specifications, and requirements of the solicitation 10 or bid, including plans, drawings, and addenda, to 11 allow eligible businesses an opportunity to respond to 12 the solicitation or bid; and (3) sufficient follow up 13 with certified vendors; 14 (iid) a clear demonstration that the prime vendor 15 communicated with certified vendors; 16 (iie) evidence that the prime vendor negotiated 17 with certified vendors to enter into subcontracts to 18 provide a commercially useful function of the contract 19 for a reasonable cost; 20 (iii) documentation demonstrating that the 21 difference in cost between the contract proposals 22 being offered by certified vendors is excessive or 23 unreasonable; 24 (iv) a list of certified vendors owned by 25 minorities, women, and persons with disabilities that 26 the contractor has used in the current and prior HB1560 - 7 - LRB104 05996 HLH 16029 b HB1560- 8 -LRB104 05996 HLH 16029 b HB1560 - 8 - LRB104 05996 HLH 16029 b HB1560 - 8 - LRB104 05996 HLH 16029 b 1 fiscal years; 2 (v) documentation demonstrating that the vendor 3 made efforts to utilize certified vendors despite the 4 ability or desire of a vendor to perform the work with 5 its own operations by selecting portions of the work 6 to be performed by certified vendors, which may, when 7 appropriate, include breaking out portions of the work 8 to be performed into economically feasible units to 9 facilitate certified vendor participation; and 10 (vi) documentation that the vendor used the 11 services of: (1) the State; (2) organizations or 12 contractors' groups representing or composed of 13 minorities, women, or persons with disabilities; (3) 14 local, State, or federal assistance offices 15 representing or assisting minorities, women, or 16 persons with disabilities; and (4) other organizations 17 that provide assistance in the recruitment and 18 engagement of certified vendors. 19 If any of the information required under this 20 subdivision (a) is not available to the vendor, despite 21 the vendor's good faith efforts to obtain the information, 22 the vendor's request for a waiver must contain a written 23 explanation of why that information is not included. 24 (b) Determination. The Council's determination 25 concerning waivers must include following: 26 (i) the justification for the requested waiver, HB1560 - 8 - LRB104 05996 HLH 16029 b HB1560- 9 -LRB104 05996 HLH 16029 b HB1560 - 9 - LRB104 05996 HLH 16029 b HB1560 - 9 - LRB104 05996 HLH 16029 b 1 including whether the requesting vendor made a good 2 faith effort to identify and solicit certified vendors 3 based on the criteria set forth in this Section; 4 (ii) the total number of waivers the vendor has 5 been granted by the Council in the current and prior 6 fiscal years; 7 (iii) (blank); and 8 (iv) the vendor's use of businesses owned by 9 minorities, women, and persons with disabilities in 10 the current and prior fiscal years. 11 (3.5) (Blank). 12 (4) Conflict with other laws. In the event that any State 13 contract, which otherwise would be subject to the provisions 14 of this Act, is or becomes subject to federal laws or 15 regulations which conflict with the provisions of this Act or 16 actions of the State taken pursuant hereto, the provisions of 17 the federal laws or regulations shall apply and the contract 18 shall be interpreted and enforced accordingly. 19 (5) Each chief procurement officer, as defined in the 20 Illinois Procurement Code, shall maintain on his or her 21 official Internet website a database of the following: (i) 22 waivers granted under this Section with respect to contracts 23 under his or her jurisdiction; (ii) a State agency or public 24 institution of higher education's written request for an 25 exemption of an individual contract or an entire class of 26 contracts; and (iii) the Council's written determination HB1560 - 9 - LRB104 05996 HLH 16029 b HB1560- 10 -LRB104 05996 HLH 16029 b HB1560 - 10 - LRB104 05996 HLH 16029 b HB1560 - 10 - LRB104 05996 HLH 16029 b 1 granting or denying a request for an exemption of an 2 individual contract or an entire class of contracts. The 3 database, which shall be updated periodically as necessary, 4 shall be searchable by contractor name and by contracting 5 State agency. 6 (6) Each chief procurement officer, as defined by the 7 Illinois Procurement Code, shall maintain on its website a 8 list of all vendors that have been prohibited from bidding, 9 offering, or entering into a contract with the State of 10 Illinois as a result of violations of this Act. 11 Each public notice required by law of the award of a State 12 contract shall include for each bid or offer submitted for 13 that contract the following: (i) the bidder's or offeror's 14 name, (ii) the bid amount, (iii) the name or names of the 15 certified vendors identified in the bidder's or offeror's 16 submitted utilization plan, and (iv) the percentage of the 17 contract awarded to each certified vendor that is a business 18 owned by minorities, women, and persons with disabilities 19 identified in the utilization plan. 20 (Source: P.A. 102-29, eff. 6-25-21; 102-662, eff. 9-15-21; 21 103-570, eff. 1-1-24.) 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