Bill Text: IL HB1409 | 2023-2024 | 103rd General Assembly | Engrossed
Bill Title: Amends the Business Enterprise for Minorities, Women, and Persons with Disabilities Act. Provides that all goals established concerning the awarding of State contracts apply to architectural, engineering, and land surveying contracts under the Architectural, Engineering, and Land Surveying Qualifications Based Selection Act. Removes references to architectural and engineering services in a provision concerning State contracts awarded to insurance services, architectural and engineering services investment management services, information technology services, accounting services, and legal services.
Spectrum: Partisan Bill (Democrat 7-0)
Status: (Engrossed) 2023-04-28 - Rule 3-9(a) / Re-referred to Assignments [HB1409 Detail]
Download: Illinois-2023-HB1409-Engrossed.html
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1 | AN ACT concerning finance.
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2 | Be it enacted by the People of the State of Illinois,
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3 | represented in the General Assembly:
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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8 | (Section scheduled to be repealed on June 30, 2024)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, | ||||||
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 4% shall be awarded to | ||||||
22 | businesses owned by persons with disabilities.
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23 | (a-5) In addition to the aspirational goals in awarding |
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1 | State contracts set under subsection (a), the Commission shall | ||||||
2 | by rule further establish targeted efforts to encourage the | ||||||
3 | participation of businesses owned by minorities, women, and | ||||||
4 | persons with disabilities on State contracts. Such efforts | ||||||
5 | shall include, but not be limited to, further concerted | ||||||
6 | outreach efforts to businesses owned by minorities, women, and | ||||||
7 | persons with disabilities. | ||||||
8 | The above percentage relates to the total dollar amount of | ||||||
9 | State
contracts during each State fiscal year, calculated by | ||||||
10 | examining
independently each type of contract for each agency | ||||||
11 | or public institutions of higher education which
lets such | ||||||
12 | contracts. Only that percentage of arrangements which | ||||||
13 | represents the participation of businesses owned by
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14 | minorities, women, and persons with disabilities on such | ||||||
15 | contracts shall
be included. State contracts subject to the | ||||||
16 | requirements of this Act shall include the requirement that | ||||||
17 | only expenditures to businesses owned by minorities, women, | ||||||
18 | and persons with disabilities that perform a commercially | ||||||
19 | useful function may be counted toward the goals set forth by | ||||||
20 | this Act. Contracts shall include a definition of | ||||||
21 | "commercially useful function" that is consistent with 49 CFR | ||||||
22 | 26.55(c).
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23 | (b) Not less
than 20% of the total dollar amount of State | ||||||
24 | construction contracts is
established as an aspirational goal | ||||||
25 | to be awarded to businesses owned by minorities, women, and | ||||||
26 | persons with disabilities; provided that, contracts |
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1 | representing at least 11% of the total dollar amount of State | ||||||
2 | construction contracts shall be awarded to businesses owned by | ||||||
3 | minorities; contracts representing at least 7% of the total | ||||||
4 | dollar amount of State construction contracts shall be awarded | ||||||
5 | to women-owned businesses; and contracts representing at least | ||||||
6 | 2% of the total dollar amount of State construction contracts | ||||||
7 | shall be awarded to businesses owned by persons with | ||||||
8 | disabilities.
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9 | (c) (Blank). | ||||||
10 | (c-5) All goals established under this Section shall be | ||||||
11 | contingent upon the results of the most recent disparity study | ||||||
12 | conducted by the State. | ||||||
13 | (d) Within one year after April 28, 2009 (the effective | ||||||
14 | date of Public Act 96-8), the Department of Central Management | ||||||
15 | Services shall conduct a social scientific study that measures | ||||||
16 | the impact of discrimination on minority and women business | ||||||
17 | development in Illinois. Within 18 months after April 28, 2009 | ||||||
18 | (the effective date of Public Act 96-8), the Department shall | ||||||
19 | issue a report of its findings and any recommendations on | ||||||
20 | whether to adjust the goals for minority and women | ||||||
21 | participation established in this Act. Copies of this report | ||||||
22 | and the social scientific study shall be filed with the | ||||||
23 | Governor and the General Assembly. | ||||||
24 | By December 1, 2020, the Department of Central Management | ||||||
25 | Services shall conduct a new social scientific study that | ||||||
26 | measures the impact of discrimination on minority and women |
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1 | business development in Illinois. By June 1, 2022, the | ||||||
2 | Department shall issue a report of its findings and any | ||||||
3 | recommendations on whether to adjust the goals for minority | ||||||
4 | and women participation established in this Act. Copies of | ||||||
5 | this report and the social scientific study shall be filed | ||||||
6 | with the Governor and the General Assembly. By December 1, | ||||||
7 | 2022, the Commission on Equity and Inclusion Business | ||||||
8 | Enterprise Program shall develop a model for social scientific | ||||||
9 | disparity study sourcing for local governmental units to adapt | ||||||
10 | and implement to address regional disparities in public | ||||||
11 | procurement. | ||||||
12 | (e) All State contract solicitations that include Business | ||||||
13 | Enterprise Program participation goals shall require bidders | ||||||
14 | or offerors to include utilization plans. Utilization plans | ||||||
15 | are due at the time of bid or offer submission. Failure to | ||||||
16 | complete and include a utilization plan, including | ||||||
17 | documentation demonstrating good faith efforts when requesting | ||||||
18 | a waiver, shall render the bid or offer non-responsive. | ||||||
19 | Except as permitted under this Act or as otherwise
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20 | mandated by federal regulation, a bidder or offeror whose bid | ||||||
21 | or offer is accepted and who included in that bid a completed | ||||||
22 | utilization plan but who fails to meet the goals set forth in | ||||||
23 | the
plan shall be notified of the deficiency by the
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24 | contracting agency or public institution of higher education
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25 | and shall be given a period of 10 calendar days to cure the | ||||||
26 | deficiency by contracting with additional
subcontractors who |
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1 | are certified by the Business Enterprise
Program or by | ||||||
2 | increasing the work to be performed by
previously identified | ||||||
3 | vendors certified by the Business
Enterprise Program. | ||||||
4 | Deficiencies that may be cured include: (i) scrivener's | ||||||
5 | errors, such as transposed numbers; (ii) information
submitted | ||||||
6 | in an incorrect form or format; (iii) mistakes resulting from | ||||||
7 | failure to follow instructions or to identify and
adequately | ||||||
8 | document good faith efforts taken to comply with the | ||||||
9 | utilization plan; or (iv) a proposal to use a
firm whose | ||||||
10 | Business Enterprise Program certification has lapsed or is
not | ||||||
11 | yet recognized. Cure is
not authorized if the bidder or | ||||||
12 | offeror submits a blank
utilization plan, a utilization plan | ||||||
13 | that shows lack of
reasonable effort to complete the form on | ||||||
14 | time, or a
utilization plan that states the contract will be
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15 | self-performed, by a non-certified vendor, without showing
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16 | good faith efforts or a request for a waiver. All cure activity
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17 | shall address the deficiencies identified by the purchasing
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18 | agency and shall require clear documentation, including that
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19 | of good faith efforts, to address those deficiencies. Any
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20 | increase in cost to a contract for the addition of a
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21 | subcontractor to cure a bid's deficiency shall not affect the
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22 | bid price and shall not be used in the request for an exemption
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23 | under this Act, and, in no case, shall an identified
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24 | subcontractor with a Business Enterprise Program certification
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25 | made under this Act be terminated from a contract without
the | ||||||
26 | written consent of the State agency or public institution
of |
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1 | higher education entering into the contract. The purchasing
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2 | agency or public institution of higher education shall make
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3 | the determination whether the cure is adequate. | ||||||
4 | Vendors certified with the Business Enterprise
Program at | ||||||
5 | the time and date submittals are due and who do not submit
a | ||||||
6 | utilization plan or have utilization plan deficiencies shall | ||||||
7 | have 10 business days
to submit a utilization plan or to | ||||||
8 | correct the utilization plan deficiencies. | ||||||
9 | (f) (Blank). | ||||||
10 | (g) (Blank). | ||||||
11 | (h) State agencies and public institutions of higher | ||||||
12 | education shall notify the Commission on Equity and Inclusion | ||||||
13 | of all non-responsive bids or proposals for State contracts. | ||||||
14 | (i) All goals established under this Section apply to | ||||||
15 | architectural, engineering, and land surveying contracts under | ||||||
16 | the Architectural, Engineering, and Land Surveying | ||||||
17 | Qualifications Based Selection Act. | ||||||
18 | (Source: P.A. 101-170, eff. 1-1-20; 101-601, eff. 1-1-20; | ||||||
19 | 101-657, Article 1, Section 1-5, eff. 1-1-22; 101-657, Article | ||||||
20 | 40, Section 40-130, eff. 1-1-22; 102-29, eff. 6-25-21; | ||||||
21 | 102-558, eff. 8-20-21; 102-1119, eff. 1-23-23.)
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22 | (30 ILCS 575/4f) | ||||||
23 | (Section scheduled to be repealed on June 30, 2024) | ||||||
24 | Sec. 4f. Award of State contracts. | ||||||
25 | (1) It is hereby declared to be the public policy of the |
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1 | State of Illinois to promote and encourage each State agency | ||||||
2 | and public institution of higher education to use businesses | ||||||
3 | owned by minorities, women, and persons with disabilities in | ||||||
4 | the area of goods and services, including, but not limited to, | ||||||
5 | insurance services, investment management services, | ||||||
6 | information technology services, accounting | ||||||
7 | services, architectural and engineering services, and legal | ||||||
8 | services. Furthermore, each State agency and public | ||||||
9 | institution of higher education shall utilize such firms to | ||||||
10 | the greatest extent feasible within the bounds of financial | ||||||
11 | and fiduciary prudence, and take affirmative steps to remove | ||||||
12 | any barriers to the full participation of such firms in the | ||||||
13 | procurement and contracting opportunities afforded. | ||||||
14 | (a) When a State agency or public institution of | ||||||
15 | higher education, other than a community college, awards a | ||||||
16 | contract for insurance services, for each State agency or | ||||||
17 | public institution of higher education, it shall be the | ||||||
18 | aspirational goal to use insurance brokers owned by | ||||||
19 | minorities, women, and persons with disabilities as | ||||||
20 | defined by this Act, for not less than 20% of the total | ||||||
21 | annual premiums or fees; provided that, contracts | ||||||
22 | representing at least 11% of the total annual premiums or | ||||||
23 | fees shall be awarded to businesses owned by minorities; | ||||||
24 | contracts representing at least 7% of the total annual | ||||||
25 | premiums or fees shall be awarded to women-owned | ||||||
26 | businesses; and contracts representing at least 2% of the |
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1 | total annual premiums or fees shall be awarded to | ||||||
2 | businesses owned by persons with disabilities. | ||||||
3 | (b) When a State agency or public institution of | ||||||
4 | higher education, other than a community college, awards a | ||||||
5 | contract for investment services, for each State agency or | ||||||
6 | public institution of higher education, it shall be the | ||||||
7 | aspirational goal to use emerging investment managers | ||||||
8 | owned by minorities, women, and persons with disabilities | ||||||
9 | as defined by this Act, for not less than 20% of the total | ||||||
10 | funds under management; provided that, contracts | ||||||
11 | representing at least 11% of the total funds under | ||||||
12 | management shall be awarded to businesses owned by | ||||||
13 | minorities; contracts representing at least 7% of the | ||||||
14 | total funds under management shall be awarded to | ||||||
15 | women-owned businesses; and contracts representing at | ||||||
16 | least 2% of the total funds under management shall be | ||||||
17 | awarded to businesses owned by persons with disabilities. | ||||||
18 | Furthermore, it is the aspirational goal that not less | ||||||
19 | than 20% of the direct asset managers of the State funds be | ||||||
20 | minorities, women, and persons with disabilities. | ||||||
21 | (c) When a State agency or public institution of | ||||||
22 | higher education, other than a community college, awards | ||||||
23 | contracts for information technology services, accounting | ||||||
24 | services, architectural and engineering services, and legal | ||||||
25 | services, for each State agency and public institution of | ||||||
26 | higher education, it shall be the aspirational goal to use |
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1 | such firms owned by minorities, women, and persons with | ||||||
2 | disabilities as defined by this Act and lawyers who are | ||||||
3 | minorities, women, and persons with disabilities as | ||||||
4 | defined by this Act, for not less than 20% of the total | ||||||
5 | dollar amount of State contracts; provided that, contracts | ||||||
6 | representing at least 11% of the total dollar amount of | ||||||
7 | State contracts shall be awarded to businesses owned by | ||||||
8 | minorities or minority lawyers; contracts representing at | ||||||
9 | least 7% of the total dollar amount of State contracts | ||||||
10 | shall be awarded to women-owned businesses or women who | ||||||
11 | are lawyers; and contracts representing at least 2% of the | ||||||
12 | total dollar amount of State contracts shall be awarded to | ||||||
13 | businesses owned by persons with disabilities or persons | ||||||
14 | with disabilities who are lawyers. | ||||||
15 | (d) When a community college awards a contract for | ||||||
16 | insurance services, investment services, information | ||||||
17 | technology services, accounting services, architectural | ||||||
18 | and engineering services, and legal services, it shall be | ||||||
19 | the aspirational goal of each community college to use | ||||||
20 | businesses owned by minorities, women, and persons with | ||||||
21 | disabilities as defined in this Act for not less than 20% | ||||||
22 | of the total amount spent on contracts for these services | ||||||
23 | collectively; provided that, contracts representing at | ||||||
24 | least 11% of the total amount spent on contracts for these | ||||||
25 | services shall be awarded to businesses owned by | ||||||
26 | minorities; contracts representing at least 7% of the |
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1 | total amount spent on contracts for these services shall | ||||||
2 | be awarded to women-owned businesses; and contracts | ||||||
3 | representing at least 2% of the total amount spent on | ||||||
4 | contracts for these services shall be awarded to | ||||||
5 | businesses owned by persons with disabilities. When a | ||||||
6 | community college awards contracts for investment | ||||||
7 | services, contracts awarded to investment managers who are | ||||||
8 | not emerging investment managers as defined in this Act | ||||||
9 | shall not be considered businesses owned by minorities, | ||||||
10 | women, or persons with disabilities for the purposes of | ||||||
11 | this Section. | ||||||
12 | (2) As used in this Section: | ||||||
13 | "Accounting services" means the measurement, | ||||||
14 | processing and communication of financial information | ||||||
15 | about economic entities including, but is not limited to, | ||||||
16 | financial accounting, management accounting, auditing, | ||||||
17 | cost containment and auditing services, taxation and | ||||||
18 | accounting information systems. | ||||||
19 | "Architectural and engineering services" means | ||||||
20 | professional services of an architectural or engineering | ||||||
21 | nature, or incidental services, that members of the | ||||||
22 | architectural and engineering professions, and individuals | ||||||
23 | in their employ, may logically or justifiably perform, | ||||||
24 | including studies, investigations, surveying and mapping, | ||||||
25 | tests, evaluations, consultations, comprehensive | ||||||
26 | planning, program management, conceptual designs, plans |
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1 | and specifications, value engineering, construction phase | ||||||
2 | services, soils engineering, drawing reviews, preparation | ||||||
3 | of operating and maintenance manuals, and other related | ||||||
4 | services. | ||||||
5 | "Emerging investment manager" means an investment | ||||||
6 | manager or claims consultant having assets under | ||||||
7 | management below $10 billion or otherwise adjudicating | ||||||
8 | claims. | ||||||
9 | "Information technology services" means, but is not | ||||||
10 | limited to, specialized technology-oriented solutions by | ||||||
11 | combining the processes and functions of software, | ||||||
12 | hardware, networks, telecommunications, web designers, | ||||||
13 | cloud developing resellers, and electronics. | ||||||
14 | "Insurance broker" means an insurance brokerage firm, | ||||||
15 | claims administrator, or both, that procures, places all | ||||||
16 | lines of insurance, or administers claims with annual | ||||||
17 | premiums or fees of at least $5,000,000 but not more than | ||||||
18 | $10,000,000. | ||||||
19 | "Legal services" means work performed by a lawyer | ||||||
20 | including, but not limited to, contracts in anticipation | ||||||
21 | of litigation, enforcement actions, or investigations. | ||||||
22 | (3) Each State agency and public institution of higher | ||||||
23 | education shall adopt policies that identify its plan and | ||||||
24 | implementation procedures for increasing the use of service | ||||||
25 | firms owned by minorities, women, and persons with | ||||||
26 | disabilities. All plan and implementation procedures for |
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1 | increasing the use of service firms owned by minorities, | ||||||
2 | women, and persons with disabilities must be submitted to and | ||||||
3 | approved by the Commission on Equity and Inclusion on an | ||||||
4 | annual basis. | ||||||
5 | (4) Except as provided in subsection (5), the Council | ||||||
6 | shall file no later than March 1 of each year an annual report | ||||||
7 | to the Governor, the Bureau on Apprenticeship Programs and | ||||||
8 | Clean Energy Jobs, and the General Assembly. The report filed | ||||||
9 | with the General Assembly shall be filed as required in | ||||||
10 | Section 3.1 of the General Assembly Organization Act. This | ||||||
11 | report shall: (i) identify the service firms used by each | ||||||
12 | State agency and public institution of higher education, (ii) | ||||||
13 | identify the actions it has undertaken to increase the use of | ||||||
14 | service firms owned by minorities, women, and persons with | ||||||
15 | disabilities, including encouraging non-minority-owned firms | ||||||
16 | to use other service firms owned by minorities, women, and | ||||||
17 | persons with disabilities as subcontractors when the | ||||||
18 | opportunities arise, (iii) state any recommendations made by | ||||||
19 | the Council to each State agency and public institution of | ||||||
20 | higher education to increase participation by the use of | ||||||
21 | service firms owned by minorities, women, and persons with | ||||||
22 | disabilities, and (iv) include the following: | ||||||
23 | (A) For insurance services: the names of the insurance | ||||||
24 | brokers or claims consultants used, the total of risk | ||||||
25 | managed by each State agency and public institution of | ||||||
26 | higher education by insurance brokers, the total |
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1 | commissions, fees paid, or both, the lines or insurance | ||||||
2 | policies placed, and the amount of premiums placed; and | ||||||
3 | the percentage of the risk managed by insurance brokers, | ||||||
4 | the percentage of total commission, fees paid, or both, | ||||||
5 | the lines or insurance policies placed, and the amount of | ||||||
6 | premiums placed with each by the insurance brokers owned | ||||||
7 | by minorities, women, and persons with disabilities by | ||||||
8 | each State agency and public institution of higher | ||||||
9 | education. | ||||||
10 | (B) For investment management services: the names of | ||||||
11 | the investment managers used, the total funds under | ||||||
12 | management of investment managers; the total commissions, | ||||||
13 | fees paid, or both; the total and percentage of funds | ||||||
14 | under management of emerging investment managers owned by | ||||||
15 | minorities, women, and persons with disabilities, | ||||||
16 | including the total and percentage of total commissions, | ||||||
17 | fees paid, or both by each State agency and public | ||||||
18 | institution of higher education. | ||||||
19 | (C) The names of service firms, the percentage and | ||||||
20 | total dollar amount paid for professional services by | ||||||
21 | category by each State agency and public institution of | ||||||
22 | higher education. | ||||||
23 | (D) The names of service firms, the percentage and | ||||||
24 | total dollar amount paid for services by category to firms | ||||||
25 | owned by minorities, women, and persons with disabilities | ||||||
26 | by each State agency and public institution of higher |
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1 | education. | ||||||
2 | (E) The total number of contracts awarded for services | ||||||
3 | by category and the total number of contracts awarded to | ||||||
4 | firms owned by minorities, women, and persons with | ||||||
5 | disabilities by each State agency and public institution | ||||||
6 | of higher education. | ||||||
7 | (5) For community college districts, the Business | ||||||
8 | Enterprise Council shall only report the following information | ||||||
9 | for each community college district: (i) the name of the | ||||||
10 | community colleges in the district, (ii) the name and contact | ||||||
11 | information of a person at each community college appointed to | ||||||
12 | be the single point of contact for vendors owned by | ||||||
13 | minorities, women, or persons with disabilities, (iii) the | ||||||
14 | policy of the community college district concerning certified | ||||||
15 | vendors, (iv) the certifications recognized by the community | ||||||
16 | college district for determining whether a business is owned | ||||||
17 | or controlled by a minority, woman, or person with a | ||||||
18 | disability, (v) outreach efforts conducted by the community | ||||||
19 | college district to increase the use of certified vendors, | ||||||
20 | (vi) the total expenditures by the community college district | ||||||
21 | in the prior fiscal year in the divisions of work specified in | ||||||
22 | paragraphs (a), (b), and (c) of subsection (1) of this Section | ||||||
23 | and the amount paid to certified vendors in those divisions of | ||||||
24 | work, and (vii) the total number of contracts entered into for | ||||||
25 | the divisions of work specified in paragraphs (a), (b), and | ||||||
26 | (c) of subsection (1) of this Section and the total number of |
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1 | contracts awarded to certified vendors providing these | ||||||
2 | services to the community college district. The Business | ||||||
3 | Enterprise Council shall not make any utilization reports | ||||||
4 | under this Act for community college districts for Fiscal Year | ||||||
5 | 2015 and Fiscal Year 2016, but shall make the report required | ||||||
6 | by this subsection for Fiscal Year 2017 and for each fiscal | ||||||
7 | year thereafter. The Business Enterprise Council shall report | ||||||
8 | the information in items (i), (ii), (iii), and (iv) of this | ||||||
9 | subsection beginning in September of 2016. The Business | ||||||
10 | Enterprise Council may collect the data needed to make its | ||||||
11 | report from the Illinois Community College Board. | ||||||
12 | (6) The status of the utilization of services shall be | ||||||
13 | discussed at each of the regularly scheduled Business | ||||||
14 | Enterprise Council meetings. Time shall be allotted for the | ||||||
15 | Council to receive, review, and discuss the progress of the | ||||||
16 | use of service firms owned by minorities, women, and persons | ||||||
17 | with disabilities by each State agency and public institution | ||||||
18 | of higher education; and any evidence regarding past or | ||||||
19 | present racial, ethnic, or gender-based discrimination which | ||||||
20 | directly impacts a State agency or public institution of | ||||||
21 | higher education contracting with such firms. If after | ||||||
22 | reviewing such evidence the Council finds that there is or has | ||||||
23 | been such discrimination against a specific group, race or | ||||||
24 | sex, the Council shall establish sheltered markets or adjust | ||||||
25 | existing sheltered markets tailored to address the Council's | ||||||
26 | specific findings for the divisions of work specified in |
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1 | paragraphs (a), (b), and (c) of subsection (1) of this | ||||||
2 | Section.
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