Bill Text: IL HB2368 | 2023-2024 | 103rd General Assembly | Engrossed

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Bill Title: Amends the Illinois Procurement Code. Provides that each chief procurement officer shall make the annual report available on his or her official website. Provides that each chief procurement officer shall also issue a press release in conjunction with the small business annual report that includes an executive summary of the annual report and a link to the annual report on the chief procurement officer's website. Amends the Business Enterprise for Minorities, Women, and Persons with Disabilities Act. Provides that the Business Enterprise Council for Minorities, Women, and Persons with Disabilities shall make the annual report available on its official website. Provides that the Council shall also issue a press release in conjunction with the annual report that includes an executive summary of the annual report and a link to the annual report on its official website.

Spectrum: Partisan Bill (Democrat 6-0)

Status: (Engrossed) 2023-04-25 - Added as Alternate Co-Sponsor Sen. Laura Fine [HB2368 Detail]

Download: Illinois-2023-HB2368-Engrossed.html

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HB2368 Engrossed LRB103 26061 DTM 52416 b
AN ACT concerning State government.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Illinois Procurement Code is amended by
changing Section 45-45 as follows:
(30 ILCS 500/45-45)
Sec. 45-45. Small businesses.
(a) Set-asides. Each chief procurement officer has
authority to designate as small business set-asides a fair
proportion of construction, supply, and service contracts for
award to small businesses in Illinois. Advertisements for bids
or offers for those contracts shall specify designation as
small business set-asides. In awarding the contracts, only
bids or offers from qualified small businesses shall be
considered.
(b) Small business. "Small business" means a business that
is independently owned and operated and that is not dominant
in its field of operation. The chief procurement officer shall
establish a detailed definition by rule, using in addition to
the foregoing criteria other criteria, including the number of
employees and the dollar volume of business. When computing
the size status of a potential contractor, annual sales and
receipts of the potential contractor and all of its affiliates

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shall be included. The maximum number of employees and the
maximum dollar volume that a small business may have under the
rules promulgated by the chief procurement officer may vary
from industry to industry to the extent necessary to reflect
differing characteristics of those industries, subject to the
following limitations:
(1) No wholesale business is a small business if its
annual sales for its most recently completed fiscal year
exceed $13,000,000.
(2) No retail business or business selling services is
a small business if its annual sales and receipts exceed
$8,000,000.
(3) No manufacturing business is a small business if
it employs more than 250 persons.
(4) No construction business is a small business if
its annual sales and receipts exceed $14,000,000.
(c) Fair proportion. For the purpose of subsection (a),
for State agencies of the executive branch, a fair proportion
of construction contracts shall be no less than 25% nor more
than 40% of the annual total contracts for construction.
(d) Withdrawal of designation. A small business set-aside
designation may be withdrawn by the purchasing agency when
deemed in the best interests of the State. Upon withdrawal,
all bids or offers shall be rejected, and the bidders or
offerors shall be notified of the reason for rejection. The
contract shall then be awarded in accordance with this Code

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without the designation of small business set-aside. Each
chief procurement officer shall make the annual report
available on his or her official website. Each chief
procurement officer shall also issue a press release in
conjunction with the small business annual report that
includes an executive summary of the annual report and a link
to the annual report on the chief procurement officer's
website.
(e) Small business specialist. Each chief procurement
officer shall designate one or more individuals to serve as
its small business specialist. The small business specialists
shall collectively work together to accomplish the following
duties:
(1) Compiling and maintaining a comprehensive list of
potential small contractors. In this duty, he or she shall
cooperate with the Federal Small Business Administration
in locating potential sources for various products and
services.
(2) Assisting small businesses in complying with the
procedures for bidding on State contracts.
(3) Examining requests from State agencies for the
purchase of property or services to help determine which
invitations to bid are to be designated small business
set-asides.
(4) Making recommendations to the chief procurement
officer for the simplification of specifications and terms

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in order to increase the opportunities for small business
participation.
(5) Assisting in investigations by purchasing agencies
to determine the responsibility of bidders or offerors on
small business set-asides.
(f) Small business annual report. Each small business
specialist designated under subsection (e) shall annually
before November 1 report in writing to the General Assembly
concerning the awarding of contracts to small businesses. The
report shall include the total value of awards made in the
preceding fiscal year under the designation of small business
set-aside. The report shall also include the total value of
awards made to businesses owned by minorities, women, and
persons with disabilities, as defined in the Business
Enterprise for Minorities, Women, and Persons with
Disabilities Act, in the preceding fiscal year under the
designation of small business set-aside.
The requirement for reporting to the General Assembly
shall be satisfied by filing copies of the report as required
by Section 3.1 of the General Assembly Organization Act.
(Source: P.A. 100-43, eff. 8-9-17; 100-391, eff. 8-25-17;
100-863, eff. 8-14-18.)
Section 10. The Business Enterprise for Minorities, Women,
and Persons with Disabilities Act is amended by changing
Section 8f as follows:

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(30 ILCS 575/8f)
(Section scheduled to be repealed on June 30, 2024)
Sec. 8f. Annual report. The Council shall file no later
than March 1 of each year, an annual report that shall detail
the level of achievement toward the goals specified in this
Act over the 3 most recent fiscal years. The annual report
shall include, but need not be limited to the following:
(1) a summary detailing expenditures subject to the
goals, the actual goals specified, and the goals attained
by each State agency and public institution of higher
education;
(2) a summary of the number of contracts awarded and
the average contract amount by each State agency and
public institution of higher education;
(3) an analysis of the level of overall goal
achievement concerning purchases from minority-owned
businesses, women-owned businesses, and businesses owned
by persons with disabilities;
(4) an analysis of the number of businesses owned by
minorities, women, and persons with disabilities that are
certified under the program as well as the number of those
businesses that received State procurement contracts; and
(5) a summary of the number of contracts awarded to
businesses with annual gross sales of less than
$1,000,000; of $1,000,000 or more, but less than

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$5,000,000; of $5,000,000 or more, but less than
$10,000,000; and of $10,000,000 or more. The Council shall
make the annual report available on its official website.
The Council shall also issue a press release in
conjunction with the annual report that includes an
executive summary of the annual report and a link to the
annual report on its official website.
(Source: P.A. 99-462, eff. 8-25-15; 100-391, eff. 8-25-17.)