104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 SB2198 Introduced 2/7/2025, by Sen. Adriane Johnson SYNOPSIS AS INTRODUCED: 20 ILCS 605/605-1118 new30 ILCS 500/45-4530 ILCS 500/50-95 new Amends the Department of Commerce and Economic Opportunity Law of the Civil Administrative Code of Illinois. Provides that, subject to appropriation, the Department of Commerce and Economic Opportunity shall create a small business financing program to provide low-interest financing to small businesses that secure State contracts to assist with the fulfilment of those contracts. Amends the Illinois Procurement Code. Provides that the Department of Central Management Services shall, in consultation with State agencies, develop a scorecard for the assessment of bids from businesses that have annual gross sales of less than $15,000,000 as evidenced by the federal income tax return of the business. Makes changes in provisions concerning the advertisement of bids to small businesses. LRB104 10102 HLH 20174 b A BILL FOR 104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 SB2198 Introduced 2/7/2025, by Sen. Adriane Johnson SYNOPSIS AS INTRODUCED: 20 ILCS 605/605-1118 new30 ILCS 500/45-4530 ILCS 500/50-95 new 20 ILCS 605/605-1118 new 30 ILCS 500/45-45 30 ILCS 500/50-95 new Amends the Department of Commerce and Economic Opportunity Law of the Civil Administrative Code of Illinois. Provides that, subject to appropriation, the Department of Commerce and Economic Opportunity shall create a small business financing program to provide low-interest financing to small businesses that secure State contracts to assist with the fulfilment of those contracts. Amends the Illinois Procurement Code. Provides that the Department of Central Management Services shall, in consultation with State agencies, develop a scorecard for the assessment of bids from businesses that have annual gross sales of less than $15,000,000 as evidenced by the federal income tax return of the business. Makes changes in provisions concerning the advertisement of bids to small businesses. LRB104 10102 HLH 20174 b LRB104 10102 HLH 20174 b A BILL FOR 104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 SB2198 Introduced 2/7/2025, by Sen. Adriane Johnson SYNOPSIS AS INTRODUCED: 20 ILCS 605/605-1118 new30 ILCS 500/45-4530 ILCS 500/50-95 new 20 ILCS 605/605-1118 new 30 ILCS 500/45-45 30 ILCS 500/50-95 new 20 ILCS 605/605-1118 new 30 ILCS 500/45-45 30 ILCS 500/50-95 new Amends the Department of Commerce and Economic Opportunity Law of the Civil Administrative Code of Illinois. Provides that, subject to appropriation, the Department of Commerce and Economic Opportunity shall create a small business financing program to provide low-interest financing to small businesses that secure State contracts to assist with the fulfilment of those contracts. Amends the Illinois Procurement Code. Provides that the Department of Central Management Services shall, in consultation with State agencies, develop a scorecard for the assessment of bids from businesses that have annual gross sales of less than $15,000,000 as evidenced by the federal income tax return of the business. Makes changes in provisions concerning the advertisement of bids to small businesses. LRB104 10102 HLH 20174 b LRB104 10102 HLH 20174 b LRB104 10102 HLH 20174 b A BILL FOR SB2198LRB104 10102 HLH 20174 b SB2198 LRB104 10102 HLH 20174 b SB2198 LRB104 10102 HLH 20174 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 Department of Commerce and Economic 5 Opportunity Law of the Civil Administrative Code of Illinois 6 is amended by adding Section 605-1118 as follows: 7 (20 ILCS 605/605-1118 new) 8 Sec. 605-1118. Small business financing program. Subject 9 to appropriation, the Department shall create a small business 10 financing program to provide low-interest financing to small 11 businesses that secure State contracts to assist with the 12 fulfilment of those contracts. 13 Section 10. The Illinois Procurement Code is amended by 14 changing Section 45-45 and by adding Section 50-95 as follows: 15 (30 ILCS 500/45-45) 16 Sec. 45-45. Small businesses. 17 (a) Set-asides. Each chief procurement officer has 18 authority to designate as small business set-asides a fair 19 proportion of construction, supply, and service contracts for 20 award to small businesses in Illinois. Advertisements for bids 21 or offers for those contracts shall specify designation as 104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 SB2198 Introduced 2/7/2025, by Sen. Adriane Johnson SYNOPSIS AS INTRODUCED: 20 ILCS 605/605-1118 new30 ILCS 500/45-4530 ILCS 500/50-95 new 20 ILCS 605/605-1118 new 30 ILCS 500/45-45 30 ILCS 500/50-95 new 20 ILCS 605/605-1118 new 30 ILCS 500/45-45 30 ILCS 500/50-95 new Amends the Department of Commerce and Economic Opportunity Law of the Civil Administrative Code of Illinois. Provides that, subject to appropriation, the Department of Commerce and Economic Opportunity shall create a small business financing program to provide low-interest financing to small businesses that secure State contracts to assist with the fulfilment of those contracts. Amends the Illinois Procurement Code. Provides that the Department of Central Management Services shall, in consultation with State agencies, develop a scorecard for the assessment of bids from businesses that have annual gross sales of less than $15,000,000 as evidenced by the federal income tax return of the business. Makes changes in provisions concerning the advertisement of bids to small businesses. LRB104 10102 HLH 20174 b LRB104 10102 HLH 20174 b LRB104 10102 HLH 20174 b A BILL FOR 20 ILCS 605/605-1118 new 30 ILCS 500/45-45 30 ILCS 500/50-95 new LRB104 10102 HLH 20174 b SB2198 LRB104 10102 HLH 20174 b SB2198- 2 -LRB104 10102 HLH 20174 b SB2198 - 2 - LRB104 10102 HLH 20174 b SB2198 - 2 - LRB104 10102 HLH 20174 b 1 small business set-asides and the advertisements shall be 2 uniformly distributed to the small business community in this 3 State. In awarding the contracts, only bids or offers from 4 qualified small businesses shall be considered. 5 (b) Small business. "Small business" means a business that 6 is independently owned and operated and that is not dominant 7 in its field of operation. The chief procurement officer shall 8 establish a detailed definition by rule, using in addition to 9 the foregoing criteria other criteria, including the number of 10 employees and the dollar volume of business. When computing 11 the size status of a potential contractor, annual sales and 12 receipts of the potential contractor and all of its affiliates 13 shall be included. The maximum number of employees and the 14 maximum dollar volume that a small business may have under the 15 rules promulgated by the chief procurement officer may vary 16 from industry to industry to the extent necessary to reflect 17 differing characteristics of those industries, subject to the 18 following limitations: 19 (1) No wholesale business is a small business if its 20 annual sales for its most recently completed fiscal year 21 exceed $13,000,000. 22 (2) No retail business or business selling services is 23 a small business if its annual sales and receipts exceed 24 $8,000,000. 25 (3) No manufacturing business is a small business if 26 it employs more than 250 persons. SB2198 - 2 - LRB104 10102 HLH 20174 b SB2198- 3 -LRB104 10102 HLH 20174 b SB2198 - 3 - LRB104 10102 HLH 20174 b SB2198 - 3 - LRB104 10102 HLH 20174 b 1 (4) No construction business is a small business if 2 its annual sales and receipts exceed $14,000,000. 3 (c) Fair proportion. For the purpose of subsection (a), 4 for State agencies of the executive branch, a fair proportion 5 of construction contracts shall be no less than 25% nor more 6 than 40% of the annual total contracts for construction. 7 (d) Withdrawal of designation. A small business set-aside 8 designation may be withdrawn by the purchasing agency when 9 deemed in the best interests of the State. Upon withdrawal, 10 all bids or offers shall be rejected, and the bidders or 11 offerors shall be notified of the reason for rejection. The 12 contract shall then be awarded in accordance with this Code 13 without the designation of small business set-aside. Each 14 chief procurement officer shall make the annual report 15 available on his or her official website. Each chief 16 procurement officer shall also issue a press release in 17 conjunction with the small business annual report that 18 includes an executive summary of the annual report and a link 19 to the annual report on the chief procurement officer's 20 website. 21 (e) Small business specialist. Each chief procurement 22 officer shall designate one or more individuals to serve as 23 its small business specialist. The small business specialists 24 shall collectively work together to accomplish the following 25 duties: 26 (1) Compiling and maintaining a comprehensive list of SB2198 - 3 - LRB104 10102 HLH 20174 b SB2198- 4 -LRB104 10102 HLH 20174 b SB2198 - 4 - LRB104 10102 HLH 20174 b SB2198 - 4 - LRB104 10102 HLH 20174 b 1 potential small contractors. In this duty, he or she shall 2 cooperate with the Federal Small Business Administration 3 in locating potential sources for various products and 4 services. 5 (2) Assisting small businesses in complying with the 6 procedures for bidding on State contracts. 7 (3) Examining requests from State agencies for the 8 purchase of property or services to help determine which 9 invitations to bid are to be designated small business 10 set-asides. 11 (4) Making recommendations to the chief procurement 12 officer for the simplification of specifications and terms 13 in order to increase the opportunities for small business 14 participation. 15 (5) Assisting in investigations by purchasing agencies 16 to determine the responsibility of bidders or offerors on 17 small business set-asides. 18 (f) Small business annual report. Each small business 19 specialist designated under subsection (e) shall annually 20 before November 1 report in writing to the General Assembly 21 concerning the awarding of contracts to small businesses. The 22 report shall include the total value of awards made in the 23 preceding fiscal year under the designation of small business 24 set-aside. The report shall also include the total value of 25 awards made to businesses owned by minorities, women, and 26 persons with disabilities, as defined in the Business SB2198 - 4 - LRB104 10102 HLH 20174 b SB2198- 5 -LRB104 10102 HLH 20174 b SB2198 - 5 - LRB104 10102 HLH 20174 b SB2198 - 5 - LRB104 10102 HLH 20174 b 1 Enterprise for Minorities, Women, and Persons with 2 Disabilities Act, in the preceding fiscal year under the 3 designation of small business set-aside. 4 The requirement for reporting to the General Assembly 5 shall be satisfied by filing copies of the report as required 6 by Section 3.1 of the General Assembly Organization Act. 7 (Source: P.A. 103-570, eff. 1-1-24.) SB2198 - 5 - LRB104 10102 HLH 20174 b