Bill Text: IL HB2770 | 2021-2022 | 102nd General Assembly | Introduced

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Bill Title: Amends the Illinois Procurement Code. Requires the Capital Development Board and the Department of Transportation to prepare quarterly reports on the status of change order requests. Provides that a lease of real property owned by a public institution of higher education (rather than the University of Illinois) may exceed 10 years under specified circumstances. Requires construction agencies procuring construction and construction-related professional services to make reasonable efforts to contract with Illinois businesses and, in procuring construction and construction-related professional services for projects with a total construction cost of more than $100,000, to provide a bid preference to a responsible bidder that is an Illinois business. Requires disclosure of financial interests for all bids and offers from responsive bidders, offerors, vendors, or contractors with an annual value in excess of the specified small purchase threshold under the Code. Exempts certain communications from procurement communication reporting requirements. Creates the State Procurement Task Force. Provides that the task force shall survey State procurement process and make recommendations to: (i) ensure that the process is equitable and efficient; (ii) provide departments with the flexibility needed to be successful; (iii) change the current structure of the procurement process; (iv) update the process to reflect modern procurement methods; (v) increase women-owned and minority-owned business participation; (vi) increase participation by State vendors; and (vii) reduce costs and increase efficiency of State procurements. Provides guidelines for appointing members to the task force. Provides that the Department of Central Management Services shall provide support to the task force. Provides that the task force shall submit specified reports to the Governor and General Assembly. Provides that the task force is repealed on January 1, 2025. Amends the Business Enterprise for Minorities, Women, and Persons with Disabilities Act. Provides that the Business Enterprise Council shall have the authority and responsibility to adopt a procedure to grant automatic certification to businesses holding a certification from specified entities and to develop and maintain a repository for specified non-certified vendors. Amends the Illinois Human Rights Act. Provides that the Department of Human Rights, by rule, shall establish a reasonable opportunity to cure any noncompliance by a bidder prior to the awarding of a contract. Makes other changes. Effective January 1, 2023, except that certain provisions take effect immediately.

Spectrum: Slight Partisan Bill (Republican 17-10)

Status: (Passed) 2022-05-06 - Public Act . . . . . . . . . 102-0721 [HB2770 Detail]

Download: Illinois-2021-HB2770-Introduced.html

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102ND GENERAL ASSEMBLY State of Illinois 2021 and 2022 HB2770 Introduced , by Rep. Dave Vella SYNOPSIS AS INTRODUCED:
30 ILCS 500/45-57
Amends the Illinois Procurement Code. Provides that each chief procurement officer has authority to designate as veteran small business set-asides a fair proportion of construction, supply, and service contracts for awards to qualified service-disabled veteran-owned small businesses or veteran-owned small businesses. Provides further requirements concerning veteran small business set-aside designations. Requires each chief procurement officer to report to the General Assembly (currently, Department of Central Management Services) on specified information concerning qualified service-disabled veteran-owned small businesses and veteran-owned small businesses, and requires that the number of bids or offers will be delineated between contracts that were designated as set-aside and those that were not designated as set-aside. Makes other changes.
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A BILL FOR
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AN ACT concerning finance.
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 45-57 as follows:
(30 ILCS 500/45-57)
Sec. 45-57. Veterans.
(a) Goal Set-aside goal. It is the goal of the State to
promote and encourage the continued economic development of
small businesses owned and controlled by qualified veterans
and that qualified service-disabled veteran-owned small
businesses (referred to as SDVOSB) and veteran-owned small
businesses (referred to as VOSB) participate in the State's
procurement process as both prime contractors and
subcontractors. Not less than 3% of the total dollar amount of
State contracts, as defined by the Director of Central
Management Services, shall be established as a goal to be
awarded to SDVOSB and VOSB. That portion of a contract under
which the contractor subcontracts with a SDVOSB or VOSB may be
counted toward the goal of this subsection. The Department of
Central Management Services shall adopt rules to implement
compliance with this subsection by all State agencies.
(a-5) Set-asides. Each chief procurement officer has

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authority to designate as veteran small business set-asides a
fair proportion of construction, supply, and service contracts
for awards to qualified service-disabled veteran-owned small
businesses or veteran-owned small businesses. Advertisements
for bids or offers for such contracts shall specify
designation as veteran small business set-asides. In awarding
the contracts, only bids or offers from qualified
service-disabled veteran-owned small businesses or
veteran-owned small businesses shall be considered.
(1) A veteran 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 without the designation of veteran small business
set-aside.
(2) Each chief procurement officer may adopt rules to
implement and administer the use of set-asides.
(b) Fiscal year reports. By each November 1, each chief
procurement officer shall report to the General Assembly
Department of Central Management Services on all of the
following for the immediately preceding fiscal year, and by
each March 1 the Department of Central Management Services
shall compile and report that information to the General
Assembly:

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(1) The total number of VOSB, and the number of
SDVOSB, who submitted bids or offers for contracts under
this Code. The number of bids or offers will be delineated
between contracts that were set-aside under subsection
(a-5) and those that were not set-aside.
(2) The total number of VOSB, and the number of
SDVOSB, who entered into contracts with the State under
this Code and the total value of those contracts. The
number of contracts and the value of contracts will be
delineated between contracts that were awarded as
set-asides under subsection (a-5) and those that were not
set-aside.
The requirement for reporting to the General Assembly
under this subsection (b) shall be satisfied by filing copies
of the report as required by Section 3.1 of the General
Assembly Organization Act.
(c) Yearly review and recommendations. Each year, each
chief procurement officer shall review the progress of all
State agencies under its jurisdiction in meeting the goal
described in subsection (a), with input from statewide
veterans' service organizations and from the business
community, including businesses owned by qualified veterans,
and shall make recommendations to be included in the
Department of Central Management Services' report to the
General Assembly regarding continuation, increases, or
decreases of the percentage goal. The recommendations shall be

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based upon the number of businesses that are owned by
qualified veterans and on the continued need to encourage and
promote businesses owned by qualified veterans.
(d) Governor's recommendations. To assist the State in
reaching the goal described in subsection (a), the Governor
shall recommend to the General Assembly changes in programs to
assist businesses owned by qualified veterans.
(e) Definitions. As used in this Section:
"Armed forces of the United States" means the United
States Army, Navy, Air Force, Marine Corps, Coast Guard, or
service in active duty as defined under 38 U.S.C. Section 101.
Service in the Merchant Marine that constitutes active duty
under Section 401 of federal Public Act 95-202 shall also be
considered service in the armed forces for purposes of this
Section.
"Certification" means a determination made by the Illinois
Department of Veterans' Affairs and the Department of Central
Management Services that a business entity is a qualified
service-disabled veteran-owned small business or a qualified
veteran-owned small business for whatever purpose. A SDVOSB or
VOSB owned and controlled by women, minorities, or persons
with disabilities, as those terms are defined in Section 2 of
the Business Enterprise for Minorities, Women, and Persons
with Disabilities Act, may also select and designate whether
that business is to be certified as a "women-owned business",
"minority-owned business", or "business owned by a person with

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a disability", as defined in Section 2 of the Business
Enterprise for Minorities, Women, and Persons with
Disabilities Act.
"Control" means the exclusive, ultimate, majority, or sole
control of the business, including but not limited to capital
investment and all other financial matters, property,
acquisitions, contract negotiations, legal matters,
officer-director-employee selection and comprehensive hiring,
operation responsibilities, cost-control matters, income and
dividend matters, financial transactions, and rights of other
shareholders or joint partners. Control shall be real,
substantial, and continuing, not pro forma. Control shall
include the power to direct or cause the direction of the
management and policies of the business and to make the
day-to-day as well as major decisions in matters of policy,
management, and operations. Control shall be exemplified by
possessing the requisite knowledge and expertise to run the
particular business, and control shall not include simple
majority or absentee ownership.
"Qualified service-disabled veteran" means a veteran who
has been found to have 10% or more service-connected
disability by the United States Department of Veterans Affairs
or the United States Department of Defense.
"Qualified service-disabled veteran-owned small business"
or "SDVOSB" means a small business (i) that is at least 51%
owned by one or more qualified service-disabled veterans

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living in Illinois or, in the case of a corporation, at least
51% of the stock of which is owned by one or more qualified
service-disabled veterans living in Illinois; (ii) that has
its home office in Illinois; and (iii) for which items (i) and
(ii) are factually verified annually by the Department of
Central Management Services.
"Qualified veteran-owned small business" or "VOSB" means a
small business (i) that is at least 51% owned by one or more
qualified veterans living in Illinois or, in the case of a
corporation, at least 51% of the stock of which is owned by one
or more qualified veterans living in Illinois; (ii) that has
its home office in Illinois; and (iii) for which items (i) and
(ii) are factually verified annually by the Department of
Central Management Services.
"Service-connected disability" means a disability incurred
in the line of duty in the active military, naval, or air
service as described in 38 U.S.C. 101(16).
"Small business" means a business that has annual gross
sales of less than $75,000,000 as evidenced by the federal
income tax return of the business. A firm with gross sales in
excess of this cap may apply to the Department of Central
Management Services for certification for a particular
contract if the firm can demonstrate that the contract would
have significant impact on SDVOSB or VOSB as suppliers or
subcontractors or in employment of veterans or
service-disabled veterans.

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"State agency" has the meaning provided in Section
1-15.100 of this Code.
"Time of hostilities with a foreign country" means any
period of time in the past, present, or future during which a
declaration of war by the United States Congress has been or is
in effect or during which an emergency condition has been or is
in effect that is recognized by the issuance of a Presidential
proclamation or a Presidential executive order and in which
the armed forces expeditionary medal or other campaign service
medals are awarded according to Presidential executive order.
"Veteran" means a person who (i) has been a member of the
armed forces of the United States or, while a citizen of the
United States, was a member of the armed forces of allies of
the United States in time of hostilities with a foreign
country and (ii) has served under one or more of the following
conditions: (a) the veteran served a total of at least 6
months; (b) the veteran served for the duration of hostilities
regardless of the length of the engagement; (c) the veteran
was discharged on the basis of hardship; or (d) the veteran was
released from active duty because of a service connected
disability and was discharged under honorable conditions.
(f) Certification program. The Illinois Department of
Veterans' Affairs and the Department of Central Management
Services shall work together to devise a certification
procedure to assure that businesses taking advantage of this
Section are legitimately classified as qualified

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service-disabled veteran-owned small businesses or qualified
veteran-owned small businesses.
(g) Penalties.
(1) Administrative penalties. The chief procurement
officers appointed pursuant to Section 10-20 shall suspend
any person who commits a violation of Section 17-10.3 or
subsection (d) of Section 33E-6 of the Criminal Code of
2012 relating to this Section from bidding on, or
participating as a contractor, subcontractor, or supplier
in, any State contract or project for a period of not less
than 3 years, and, if the person is certified as a
service-disabled veteran-owned small business or a
veteran-owned small business, then the Department shall
revoke the business's certification for a period of not
less than 3 years. An additional or subsequent violation
shall extend the periods of suspension and revocation for
a period of not less than 5 years. The suspension and
revocation shall apply to the principals of the business
and any subsequent business formed or financed by, or
affiliated with, those principals.
(2) Reports of violations. Each State agency shall
report any alleged violation of Section 17-10.3 or
subsection (d) of Section 33E-6 of the Criminal Code of
2012 relating to this Section to the chief procurement
officers appointed pursuant to Section 10-20. The chief
procurement officers appointed pursuant to Section 10-20

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shall subsequently report all such alleged violations to
the Attorney General, who shall determine whether to bring
a civil action against any person for the violation.
(3) List of suspended persons. The chief procurement
officers appointed pursuant to Section 10-20 shall monitor
the status of all reported violations of Section 17-10.3
or subsection (d) of Section 33E-6 of the Criminal Code of
1961 or the Criminal Code of 2012 relating to this Section
and shall maintain and make available to all State
agencies a central listing of all persons that committed
violations resulting in suspension.
(4) Use of suspended persons. During the period of a
person's suspension under paragraph (1) of this
subsection, a State agency shall not enter into any
contract with that person or with any contractor using the
services of that person as a subcontractor.
(5) Duty to check list. Each State agency shall check
the central listing provided by the chief procurement
officers appointed pursuant to Section 10-20 under
paragraph (3) of this subsection to verify that a person
being awarded a contract by that State agency, or to be
used as a subcontractor or supplier on a contract being
awarded by that State agency, is not under suspension
pursuant to paragraph (1) of this subsection.
(Source: P.A. 100-43, eff. 8-9-17; 100-391, eff. 8-25-17;
100-863, eff. 8-14-18.)