Bill Amendment: IL HB1409 | 2023-2024 | 103rd General Assembly
NOTE: For additional amemendments please see the Bill Drafting List
Bill Title: PROF SERVICES-CONTRACT GOALS
Status: 2023-04-28 - Rule 3-9(a) / Re-referred to Assignments [HB1409 Detail]
Download: Illinois-2023-HB1409-House_Amendment_001.html
Bill Title: PROF SERVICES-CONTRACT GOALS
Status: 2023-04-28 - Rule 3-9(a) / Re-referred to Assignments [HB1409 Detail]
Download: Illinois-2023-HB1409-House_Amendment_001.html
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1 | AMENDMENT TO HOUSE BILL 1409
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2 | AMENDMENT NO. ______. Amend House Bill 1409 by replacing | ||||||
3 | everything after the enacting clause with the following:
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4 | "Section 5. The Business Enterprise for Minorities, Women, | ||||||
5 | and Persons with
Disabilities Act is amended by changing | ||||||
6 | Sections 4 and 4f as follows:
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7 | (30 ILCS 575/4) (from Ch. 127, par. 132.604)
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8 | (Section scheduled to be repealed on June 30, 2024)
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9 | Sec. 4. Award of State contracts.
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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, |
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1 | women, and persons with disabilities pursuant to
this Section, | ||||||
2 | contracts representing at least 16% shall be awarded to | ||||||
3 | businesses owned by minorities, contracts representing at | ||||||
4 | least 10% shall be awarded to women-owned businesses, and | ||||||
5 | contracts representing at least 4% shall be awarded to | ||||||
6 | businesses owned by persons with disabilities.
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7 | (a-5) In addition to the aspirational goals in awarding | ||||||
8 | State contracts set under subsection (a), the Commission shall | ||||||
9 | by rule further establish targeted efforts to encourage the | ||||||
10 | participation of businesses owned by minorities, women, and | ||||||
11 | persons with disabilities on State contracts. Such efforts | ||||||
12 | shall include, but not be limited to, further concerted | ||||||
13 | outreach efforts to businesses owned by minorities, women, and | ||||||
14 | persons with disabilities. | ||||||
15 | The above percentage relates to the total dollar amount of | ||||||
16 | State
contracts during each State fiscal year, calculated by | ||||||
17 | examining
independently each type of contract for each agency | ||||||
18 | or public institutions of higher education which
lets such | ||||||
19 | contracts. Only that percentage of arrangements which | ||||||
20 | represents the participation of businesses owned by
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21 | minorities, women, and persons with disabilities on such | ||||||
22 | contracts shall
be included. State contracts subject to the | ||||||
23 | requirements of this Act shall include the requirement that | ||||||
24 | only expenditures to businesses owned by minorities, women, | ||||||
25 | and persons with disabilities that perform a commercially | ||||||
26 | useful function may be counted toward the goals set forth by |
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1 | this Act. Contracts shall include a definition of | ||||||
2 | "commercially useful function" that is consistent with 49 CFR | ||||||
3 | 26.55(c).
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4 | (b) Not less
than 20% of the total dollar amount of State | ||||||
5 | construction contracts is
established as an aspirational goal | ||||||
6 | to be awarded to businesses owned by minorities, women, and | ||||||
7 | persons with disabilities; provided that, contracts | ||||||
8 | representing at least 11% of the total dollar amount of State | ||||||
9 | construction contracts shall be awarded to businesses owned by | ||||||
10 | minorities; contracts representing at least 7% of the total | ||||||
11 | dollar amount of State construction contracts shall be awarded | ||||||
12 | to women-owned businesses; and contracts representing at least | ||||||
13 | 2% of the total dollar amount of State construction contracts | ||||||
14 | shall be awarded to businesses owned by persons with | ||||||
15 | disabilities.
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16 | (c) (Blank). | ||||||
17 | (c-5) All goals established under this Section shall be | ||||||
18 | contingent upon the results of the most recent disparity study | ||||||
19 | conducted by the State. | ||||||
20 | (d) Within one year after April 28, 2009 (the effective | ||||||
21 | date of Public Act 96-8), the Department of Central Management | ||||||
22 | Services shall conduct a social scientific study that measures | ||||||
23 | the impact of discrimination on minority and women business | ||||||
24 | development in Illinois. Within 18 months after April 28, 2009 | ||||||
25 | (the effective date of Public Act 96-8), the Department shall | ||||||
26 | issue a report of its findings and any recommendations on |
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1 | whether to adjust the goals for minority and women | ||||||
2 | participation established in this Act. Copies of this report | ||||||
3 | and the social scientific study shall be filed with the | ||||||
4 | Governor and the General Assembly. | ||||||
5 | By December 1, 2020, the Department of Central Management | ||||||
6 | Services shall conduct a new social scientific study that | ||||||
7 | measures the impact of discrimination on minority and women | ||||||
8 | business development in Illinois. By June 1, 2022, the | ||||||
9 | Department shall issue a report of its findings and any | ||||||
10 | recommendations on whether to adjust the goals for minority | ||||||
11 | and women participation established in this Act. Copies of | ||||||
12 | this report and the social scientific study shall be filed | ||||||
13 | with the Governor and the General Assembly. By December 1, | ||||||
14 | 2022, the Commission on Equity and Inclusion Business | ||||||
15 | Enterprise Program shall develop a model for social scientific | ||||||
16 | disparity study sourcing for local governmental units to adapt | ||||||
17 | and implement to address regional disparities in public | ||||||
18 | procurement. | ||||||
19 | (e) All State contract solicitations that include Business | ||||||
20 | Enterprise Program participation goals shall require bidders | ||||||
21 | or offerors to include utilization plans. Utilization plans | ||||||
22 | are due at the time of bid or offer submission. Failure to | ||||||
23 | complete and include a utilization plan, including | ||||||
24 | documentation demonstrating good faith efforts when requesting | ||||||
25 | a waiver, shall render the bid or offer non-responsive. | ||||||
26 | Except as permitted under this Act or as otherwise
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1 | mandated by federal regulation, a bidder or offeror whose bid | ||||||
2 | or offer is accepted and who included in that bid a completed | ||||||
3 | utilization plan but who fails to meet the goals set forth in | ||||||
4 | the
plan shall be notified of the deficiency by the
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5 | contracting agency or public institution of higher education
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6 | and shall be given a period of 10 calendar days to cure the | ||||||
7 | deficiency by contracting with additional
subcontractors who | ||||||
8 | are certified by the Business Enterprise
Program or by | ||||||
9 | increasing the work to be performed by
previously identified | ||||||
10 | vendors certified by the Business
Enterprise Program. | ||||||
11 | Deficiencies that may be cured include: (i) scrivener's | ||||||
12 | errors, such as transposed numbers; (ii) information
submitted | ||||||
13 | in an incorrect form or format; (iii) mistakes resulting from | ||||||
14 | failure to follow instructions or to identify and
adequately | ||||||
15 | document good faith efforts taken to comply with the | ||||||
16 | utilization plan; or (iv) a proposal to use a
firm whose | ||||||
17 | Business Enterprise Program certification has lapsed or is
not | ||||||
18 | yet recognized. Cure is
not authorized if the bidder or | ||||||
19 | offeror submits a blank
utilization plan, a utilization plan | ||||||
20 | that shows lack of
reasonable effort to complete the form on | ||||||
21 | time, or a
utilization plan that states the contract will be
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22 | self-performed, by a non-certified vendor, without showing
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23 | good faith efforts or a request for a waiver. All cure activity
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24 | shall address the deficiencies identified by the purchasing
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25 | agency and shall require clear documentation, including that
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26 | of good faith efforts, to address those deficiencies. Any
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1 | increase in cost to a contract for the addition of a
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2 | subcontractor to cure a bid's deficiency shall not affect the
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3 | bid price and shall not be used in the request for an exemption
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4 | under this Act, and, in no case, shall an identified
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5 | subcontractor with a Business Enterprise Program certification
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6 | made under this Act be terminated from a contract without
the | ||||||
7 | written consent of the State agency or public institution
of | ||||||
8 | higher education entering into the contract. The purchasing
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9 | agency or public institution of higher education shall make
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10 | the determination whether the cure is adequate. | ||||||
11 | Vendors certified with the Business Enterprise
Program at | ||||||
12 | the time and date submittals are due and who do not submit
a | ||||||
13 | utilization plan or have utilization plan deficiencies shall | ||||||
14 | have 10 business days
to submit a utilization plan or to | ||||||
15 | correct the utilization plan deficiencies. | ||||||
16 | (f) (Blank). | ||||||
17 | (g) (Blank). | ||||||
18 | (h) State agencies and public institutions of higher | ||||||
19 | education shall notify the Commission on Equity and Inclusion | ||||||
20 | of all non-responsive bids or proposals for State contracts. | ||||||
21 | (i) All goals established under this Section apply to | ||||||
22 | architectural, engineering, and land surveying contracts under | ||||||
23 | the Architectural, Engineering, and Land Surveying | ||||||
24 | Qualifications Based Selection Act. | ||||||
25 | (Source: P.A. 101-170, eff. 1-1-20; 101-601, eff. 1-1-20; | ||||||
26 | 101-657, Article 1, Section 1-5, eff. 1-1-22; 101-657, Article |
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1 | 40, Section 40-130, eff. 1-1-22; 102-29, eff. 6-25-21; | ||||||
2 | 102-558, eff. 8-20-21; 102-1119, eff. 1-23-23.)
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3 | (30 ILCS 575/4f) | ||||||
4 | (Section scheduled to be repealed on June 30, 2024) | ||||||
5 | Sec. 4f. Award of State contracts. | ||||||
6 | (1) It is hereby declared to be the public policy of the | ||||||
7 | State of Illinois to promote and encourage each State agency | ||||||
8 | and public institution of higher education to use businesses | ||||||
9 | owned by minorities, women, and persons with disabilities in | ||||||
10 | the area of goods and services, including, but not limited to, | ||||||
11 | insurance services, investment management services, | ||||||
12 | information technology services, accounting | ||||||
13 | services, architectural and engineering services, and legal | ||||||
14 | services. Furthermore, each State agency and public | ||||||
15 | institution of higher education shall utilize such firms to | ||||||
16 | the greatest extent feasible within the bounds of financial | ||||||
17 | and fiduciary prudence, and take affirmative steps to remove | ||||||
18 | any barriers to the full participation of such firms in the | ||||||
19 | procurement and contracting opportunities afforded. | ||||||
20 | (a) When a State agency or public institution of | ||||||
21 | higher education, other than a community college, awards a | ||||||
22 | contract for insurance services, for each State agency or | ||||||
23 | public institution of higher education, it shall be the | ||||||
24 | aspirational goal to use insurance brokers owned by | ||||||
25 | minorities, women, and persons with disabilities as |
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1 | defined by this Act, for not less than 20% of the total | ||||||
2 | annual premiums or fees; provided that, contracts | ||||||
3 | representing at least 11% of the total annual premiums or | ||||||
4 | fees shall be awarded to businesses owned by minorities; | ||||||
5 | contracts representing at least 7% of the total annual | ||||||
6 | premiums or fees shall be awarded to women-owned | ||||||
7 | businesses; and contracts representing at least 2% of the | ||||||
8 | total annual premiums or fees shall be awarded to | ||||||
9 | businesses owned by persons with disabilities. | ||||||
10 | (b) When a State agency or public institution of | ||||||
11 | higher education, other than a community college, awards a | ||||||
12 | contract for investment services, for each State agency or | ||||||
13 | public institution of higher education, it shall be the | ||||||
14 | aspirational goal to use emerging investment managers | ||||||
15 | owned by minorities, women, and persons with disabilities | ||||||
16 | as defined by this Act, for not less than 20% of the total | ||||||
17 | funds under management; provided that, contracts | ||||||
18 | representing at least 11% of the total funds under | ||||||
19 | management shall be awarded to businesses owned by | ||||||
20 | minorities; contracts representing at least 7% of the | ||||||
21 | total funds under management shall be awarded to | ||||||
22 | women-owned businesses; and contracts representing at | ||||||
23 | least 2% of the total funds under management shall be | ||||||
24 | awarded to businesses owned by persons with disabilities. | ||||||
25 | Furthermore, it is the aspirational goal that not less | ||||||
26 | than 20% of the direct asset managers of the State funds be |
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1 | minorities, women, and persons with disabilities. | ||||||
2 | (c) When a State agency or public institution of | ||||||
3 | higher education, other than a community college, awards | ||||||
4 | contracts for information technology services, accounting | ||||||
5 | services, architectural and engineering services, and legal | ||||||
6 | services, for each State agency and public institution of | ||||||
7 | higher education, it shall be the aspirational goal to use | ||||||
8 | such firms owned by minorities, women, and persons with | ||||||
9 | disabilities as defined by this Act and lawyers who are | ||||||
10 | minorities, women, and persons with disabilities as | ||||||
11 | defined by this Act, for not less than 20% of the total | ||||||
12 | dollar amount of State contracts; provided that, contracts | ||||||
13 | representing at least 11% of the total dollar amount of | ||||||
14 | State contracts shall be awarded to businesses owned by | ||||||
15 | minorities or minority lawyers; contracts representing at | ||||||
16 | least 7% of the total dollar amount of State contracts | ||||||
17 | shall be awarded to women-owned businesses or women who | ||||||
18 | are lawyers; and contracts representing at least 2% of the | ||||||
19 | total dollar amount of State contracts shall be awarded to | ||||||
20 | businesses owned by persons with disabilities or persons | ||||||
21 | with disabilities who are lawyers. | ||||||
22 | (d) When a community college awards a contract for | ||||||
23 | insurance services, investment services, information | ||||||
24 | technology services, accounting services, architectural | ||||||
25 | and engineering services, and legal services, it shall be | ||||||
26 | the aspirational goal of each community college to use |
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1 | businesses owned by minorities, women, and persons with | ||||||
2 | disabilities as defined in this Act for not less than 20% | ||||||
3 | of the total amount spent on contracts for these services | ||||||
4 | collectively; provided that, contracts representing at | ||||||
5 | least 11% of the total amount spent on contracts for these | ||||||
6 | services shall be awarded to businesses owned by | ||||||
7 | minorities; contracts representing at least 7% of the | ||||||
8 | total amount spent on contracts for these services shall | ||||||
9 | be awarded to women-owned businesses; and contracts | ||||||
10 | representing at least 2% of the total amount spent on | ||||||
11 | contracts for these services shall be awarded to | ||||||
12 | businesses owned by persons with disabilities. When a | ||||||
13 | community college awards contracts for investment | ||||||
14 | services, contracts awarded to investment managers who are | ||||||
15 | not emerging investment managers as defined in this Act | ||||||
16 | shall not be considered businesses owned by minorities, | ||||||
17 | women, or persons with disabilities for the purposes of | ||||||
18 | this Section. | ||||||
19 | (2) As used in this Section: | ||||||
20 | "Accounting services" means the measurement, | ||||||
21 | processing and communication of financial information | ||||||
22 | about economic entities including, but is not limited to, | ||||||
23 | financial accounting, management accounting, auditing, | ||||||
24 | cost containment and auditing services, taxation and | ||||||
25 | accounting information systems. | ||||||
26 | "Architectural and engineering services" means |
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1 | professional services of an architectural or engineering | ||||||
2 | nature, or incidental services, that members of the | ||||||
3 | architectural and engineering professions, and individuals | ||||||
4 | in their employ, may logically or justifiably perform, | ||||||
5 | including studies, investigations, surveying and mapping, | ||||||
6 | tests, evaluations, consultations, comprehensive | ||||||
7 | planning, program management, conceptual designs, plans | ||||||
8 | and specifications, value engineering, construction phase | ||||||
9 | services, soils engineering, drawing reviews, preparation | ||||||
10 | of operating and maintenance manuals, and other related | ||||||
11 | services. | ||||||
12 | "Emerging investment manager" means an investment | ||||||
13 | manager or claims consultant having assets under | ||||||
14 | management below $10 billion or otherwise adjudicating | ||||||
15 | claims. | ||||||
16 | "Information technology services" means, but is not | ||||||
17 | limited to, specialized technology-oriented solutions by | ||||||
18 | combining the processes and functions of software, | ||||||
19 | hardware, networks, telecommunications, web designers, | ||||||
20 | cloud developing resellers, and electronics. | ||||||
21 | "Insurance broker" means an insurance brokerage firm, | ||||||
22 | claims administrator, or both, that procures, places all | ||||||
23 | lines of insurance, or administers claims with annual | ||||||
24 | premiums or fees of at least $5,000,000 but not more than | ||||||
25 | $10,000,000. | ||||||
26 | "Legal services" means work performed by a lawyer |
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1 | including, but not limited to, contracts in anticipation | ||||||
2 | of litigation, enforcement actions, or investigations. | ||||||
3 | (3) Each State agency and public institution of higher | ||||||
4 | education shall adopt policies that identify its plan and | ||||||
5 | implementation procedures for increasing the use of service | ||||||
6 | firms owned by minorities, women, and persons with | ||||||
7 | disabilities. All plan and implementation procedures for | ||||||
8 | increasing the use of service firms owned by minorities, | ||||||
9 | women, and persons with disabilities must be submitted to and | ||||||
10 | approved by the Commission on Equity and Inclusion on an | ||||||
11 | annual basis. | ||||||
12 | (4) Except as provided in subsection (5), the Council | ||||||
13 | shall file no later than March 1 of each year an annual report | ||||||
14 | to the Governor, the Bureau on Apprenticeship Programs and | ||||||
15 | Clean Energy Jobs, and the General Assembly. The report filed | ||||||
16 | with the General Assembly shall be filed as required in | ||||||
17 | Section 3.1 of the General Assembly Organization Act. This | ||||||
18 | report shall: (i) identify the service firms used by each | ||||||
19 | State agency and public institution of higher education, (ii) | ||||||
20 | identify the actions it has undertaken to increase the use of | ||||||
21 | service firms owned by minorities, women, and persons with | ||||||
22 | disabilities, including encouraging non-minority-owned firms | ||||||
23 | to use other service firms owned by minorities, women, and | ||||||
24 | persons with disabilities as subcontractors when the | ||||||
25 | opportunities arise, (iii) state any recommendations made by | ||||||
26 | the Council to each State agency and public institution of |
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1 | higher education to increase participation by the use of | ||||||
2 | service firms owned by minorities, women, and persons with | ||||||
3 | disabilities, and (iv) include the following: | ||||||
4 | (A) For insurance services: the names of the insurance | ||||||
5 | brokers or claims consultants used, the total of risk | ||||||
6 | managed by each State agency and public institution of | ||||||
7 | higher education by insurance brokers, the total | ||||||
8 | commissions, fees paid, or both, the lines or insurance | ||||||
9 | policies placed, and the amount of premiums placed; and | ||||||
10 | the percentage of the risk managed by insurance brokers, | ||||||
11 | the percentage of total commission, fees paid, or both, | ||||||
12 | the lines or insurance policies placed, and the amount of | ||||||
13 | premiums placed with each by the insurance brokers owned | ||||||
14 | by minorities, women, and persons with disabilities by | ||||||
15 | each State agency and public institution of higher | ||||||
16 | education. | ||||||
17 | (B) For investment management services: the names of | ||||||
18 | the investment managers used, the total funds under | ||||||
19 | management of investment managers; the total commissions, | ||||||
20 | fees paid, or both; the total and percentage of funds | ||||||
21 | under management of emerging investment managers owned by | ||||||
22 | minorities, women, and persons with disabilities, | ||||||
23 | including the total and percentage of total commissions, | ||||||
24 | fees paid, or both by each State agency and public | ||||||
25 | institution of higher education. | ||||||
26 | (C) The names of service firms, the percentage and |
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1 | total dollar amount paid for professional services by | ||||||
2 | category by each State agency and public institution of | ||||||
3 | higher education. | ||||||
4 | (D) The names of service firms, the percentage and | ||||||
5 | total dollar amount paid for services by category to firms | ||||||
6 | owned by minorities, women, and persons with disabilities | ||||||
7 | by each State agency and public institution of higher | ||||||
8 | education. | ||||||
9 | (E) The total number of contracts awarded for services | ||||||
10 | by category and the total number of contracts awarded to | ||||||
11 | firms owned by minorities, women, and persons with | ||||||
12 | disabilities by each State agency and public institution | ||||||
13 | of higher education. | ||||||
14 | (5) For community college districts, the Business | ||||||
15 | Enterprise Council shall only report the following information | ||||||
16 | for each community college district: (i) the name of the | ||||||
17 | community colleges in the district, (ii) the name and contact | ||||||
18 | information of a person at each community college appointed to | ||||||
19 | be the single point of contact for vendors owned by | ||||||
20 | minorities, women, or persons with disabilities, (iii) the | ||||||
21 | policy of the community college district concerning certified | ||||||
22 | vendors, (iv) the certifications recognized by the community | ||||||
23 | college district for determining whether a business is owned | ||||||
24 | or controlled by a minority, woman, or person with a | ||||||
25 | disability, (v) outreach efforts conducted by the community | ||||||
26 | college district to increase the use of certified vendors, |
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1 | (vi) the total expenditures by the community college district | ||||||
2 | in the prior fiscal year in the divisions of work specified in | ||||||
3 | paragraphs (a), (b), and (c) of subsection (1) of this Section | ||||||
4 | and the amount paid to certified vendors in those divisions of | ||||||
5 | work, and (vii) the total number of contracts entered into for | ||||||
6 | the divisions of work specified in paragraphs (a), (b), and | ||||||
7 | (c) of subsection (1) of this Section and the total number of | ||||||
8 | contracts awarded to certified vendors providing these | ||||||
9 | services to the community college district. The Business | ||||||
10 | Enterprise Council shall not make any utilization reports | ||||||
11 | under this Act for community college districts for Fiscal Year | ||||||
12 | 2015 and Fiscal Year 2016, but shall make the report required | ||||||
13 | by this subsection for Fiscal Year 2017 and for each fiscal | ||||||
14 | year thereafter. The Business Enterprise Council shall report | ||||||
15 | the information in items (i), (ii), (iii), and (iv) of this | ||||||
16 | subsection beginning in September of 2016. The Business | ||||||
17 | Enterprise Council may collect the data needed to make its | ||||||
18 | report from the Illinois Community College Board. | ||||||
19 | (6) The status of the utilization of services shall be | ||||||
20 | discussed at each of the regularly scheduled Business | ||||||
21 | Enterprise Council meetings. Time shall be allotted for the | ||||||
22 | Council to receive, review, and discuss the progress of the | ||||||
23 | use of service firms owned by minorities, women, and persons | ||||||
24 | with disabilities by each State agency and public institution | ||||||
25 | of higher education; and any evidence regarding past or | ||||||
26 | present racial, ethnic, or gender-based discrimination which |
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1 | directly impacts a State agency or public institution of | ||||||
2 | higher education contracting with such firms. If after | ||||||
3 | reviewing such evidence the Council finds that there is or has | ||||||
4 | been such discrimination against a specific group, race or | ||||||
5 | sex, the Council shall establish sheltered markets or adjust | ||||||
6 | existing sheltered markets tailored to address the Council's | ||||||
7 | specific findings for the divisions of work specified in | ||||||
8 | paragraphs (a), (b), and (c) of subsection (1) of this | ||||||
9 | Section.
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10 | (Source: P.A. 101-170, eff. 1-1-20; 101-657, Article 5, | ||||||
11 | Section 5-10, eff. 7-1-21 (See Section 25 of P.A. 102-29 for | ||||||
12 | effective date of P.A. 101-657, Article 5, Section 5-10); | ||||||
13 | 101-657, Article 40, Section 40-130, eff. 1-1-22; 102-29, eff. | ||||||
14 | 6-25-21; 102-662, eff. 9-15-21 .)".
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