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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8 | | (Section scheduled to be repealed on June 30, 2024)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 |