Bill Text: IL HB3296 | 2019-2020 | 101st General Assembly | Introduced

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Bill Title: Amends the Illinois Procurement Code. Provides for a scoring methodology for competitive sealed proposals under the Act. Provides that no vendor shall be eligible for renewal of a contract when that vendor has failed to demonstrate a good faith effort towards meeting the goals established in the utilization plan, or that vendor is not otherwise excused from compliance under the Business Enterprise Program Act. Provides for annual diversity training and a report on such training. Amends the Business Enterprise for Minorities, Women, and Persons with Disabilities Act. Provides that when a State agency or public institution of higher education issues requests for proposals or solicitations that fall within a service or product offering that has a history of disparate awards to a class of business owners that are underrepresented in contract awards, it shall be the aspirational goal to use service or product providers owned by minorities, women, and persons with disabilities for not less than 20% of the total dollar amount of that State contract. Provides that each State agency and institution of higher education shall include in its report on its utilization of businesses owned by minorities, women, and persons with disabilities a plan to increase the diversity of the vendors engaged in contracts with the State agency or public institution of higher education, with a particular focus on the most underrepresented in contract awards. Makes conforming changes.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2019-04-12 - Rule 19(a) / Re-referred to Rules Committee [HB3296 Detail]

Download: Illinois-2019-HB3296-Introduced.html

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101ST GENERAL ASSEMBLY State of Illinois 2019 and 2020 HB3296 Introduced , by Rep. William Davis SYNOPSIS AS INTRODUCED:
30 ILCS 500/20-15
30 ILCS 500/20-60
30 ILCS 500/50-85 new
30 ILCS 575/4f
30 ILCS 575/6 from Ch. 127, par. 132.606
Amends the Illinois Procurement Code. Provides for a scoring methodology for competitive sealed proposals under the Act. Provides that no vendor shall be eligible for renewal of a contract when that vendor has failed to demonstrate a good faith effort towards meeting the goals established in the utilization plan, or that vendor is not otherwise excused from compliance under the Business Enterprise Program Act. Provides for annual diversity training and a report on such training. Amends the Business Enterprise for Minorities, Women, and Persons with Disabilities Act. Provides that when a State agency or public institution of higher education issues requests for proposals or solicitations that fall within a service or product offering that has a history of disparate awards to a class of business owners that are underrepresented in contract awards, it shall be the aspirational goal to use service or product providers owned by minorities, women, and persons with disabilities for not less than 20% of the total dollar amount of that State contract. Provides that each State agency and institution of higher education shall include in its report on its utilization of businesses owned by minorities, women, and persons with disabilities a plan to increase the diversity of the vendors engaged in contracts with the State agency or public institution of higher education, with a particular focus on the most underrepresented in contract awards. Makes conforming changes.
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A BILL FOR
HB3296 LRB101 10728 RJF 55840 b
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 Sections 20-15 and 20-60 and by adding Section 50-85
as follows:
(30 ILCS 500/20-15)
Sec. 20-15. Competitive sealed proposals.
(a) Conditions for use. When provided under this Code or
under rules, or when the purchasing agency determines in
writing that the use of competitive sealed bidding is either
not practicable or not advantageous to the State, a contract
may be entered into by competitive sealed proposals.
(b) Request for proposals. Proposals shall be solicited
through a request for proposals.
(c) Public notice. Public notice of the request for
proposals shall be published in the Illinois Procurement
Bulletin at least 14 calendar days before the date set in the
invitation for the opening of proposals.
(d) Receipt of proposals. Proposals shall be opened
publicly or via an electronic procurement system in the
presence of one or more witnesses at the time and place
designated in the request for proposals, but proposals shall be

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opened in a manner to avoid disclosure of contents to competing
offerors during the process of negotiation. A record of
proposals shall be prepared and shall be open for public
inspection after contract award.
(e) Evaluation factors. The requests for proposals shall
state the relative importance of price and other evaluation
factors. Proposals shall be submitted in 2 parts: the first,
covering items except price; and the second, covering price.
The first part of all proposals shall be evaluated and ranked
independently of the second part of all proposals.
(e-5) Method of scoring.
(1) Except as otherwise provided in this subsection
(e-5), scoring rubrics for competitive sealed proposals
may provide for bonus points toward the evaluation of a
respondent's commitment to the use of diverse and
veteran-owned businesses.
(2) Factors to be considered in the award of bonus
points shall be set by rule by the applicable chief
procurement officer and may include, but are not limited
to:
(A) the percentage of members of the respondent's
governing board who are women, minorities, persons
with disabilities, or veterans;
(B) the percentage of the respondent's owners,
senior executive leaders, partners, president, chief
operating officer, managing director, senior

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executives, or managers who are women, minorities,
persons with disabilities, or veterans;
(C) the percentage of the respondent's staff,
including both full-time and part-time employees, who
are women, minorities, persons with disabilities, or
veterans;
(D) the percentage of prior year revenues of the
respondent that involve businesses owned by women,
minorities, persons with disabilities, or veterans;
(E) whether the respondent has a training or
mentoring program with businesses owned by women,
minorities, persons with disabilities, or veterans;
(F) whether the respondent has a written supplier
diversity program;
(G) whether the respondent made efforts to assist
businesses owned by women, minorities, persons with
disabilities, or veterans in obtaining lines of credit
or insurance; and
(H) whether the respondent made efforts to assist
businesses owned by women, minorities, persons with
disabilities, or veterans in obtaining necessary
equipment, supplies, materials, or related assistance
or services.
(3) If any State agency or public institution of higher
education contract is eligible to be paid for or
reimbursed, in whole or in part, with federal-aid funds,

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grants, or loans, and the provisions of this subsection
would result in the loss of those federal-aid funds,
grants, or loans, then the contract is exempt from the
provisions of this Section in order to remain eligible for
those federal-aid funds, grants, or loans.
For the purposes of this subsection (e-5):
"Manager" means a person who controls or administers all or
part of a company or similar organization.
"Minorities" has the same meaning as "minority person"
under Section 2 of the Business Enterprise for Minorities,
Women, and Persons with Disabilities Act.
"Persons with disabilities" has the same meaning as "person
with a disability" under Section 2 of the Business Enterprise
for Minorities, Women, and Persons with Disabilities Act.
"Senior executive" means the chief executive officer,
chief operating officer, chief financial officer, or anyone
else in charge of a principal business unit or function.
"Veteran" means a member of the Armed Forces of the United
States, a member of the Illinois National Guard, or a member of
any reserve component of the Armed Forces of the United States.
"Women" has the same meaning as "woman" under Section 2 of
the Business Enterprise for Minorities, Women, and Persons with
Disabilities Act.
(f) Discussion with responsible offerors and revisions of
offers or proposals. As provided in the request for proposals
and under rules, discussions may be conducted with responsible

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offerors who submit offers or proposals determined to be
reasonably susceptible of being selected for award for the
purpose of clarifying and assuring full understanding of and
responsiveness to the solicitation requirements. Those
offerors shall be accorded fair and equal treatment with
respect to any opportunity for discussion and revision of
proposals. Revisions may be permitted after submission and
before award for the purpose of obtaining best and final
offers. In conducting discussions there shall be no disclosure
of any information derived from proposals submitted by
competing offerors. If information is disclosed to any offeror,
it shall be provided to all competing offerors.
(g) Award. Awards shall be made to the responsible offeror
whose proposal is determined in writing to be the most
advantageous to the State, taking into consideration price and
the evaluation factors set forth in the request for proposals.
The contract file shall contain the basis on which the award is
made.
(Source: P.A. 100-43, eff. 8-9-17.)
(30 ILCS 500/20-60)
Sec. 20-60. Duration of contracts.
(a) Maximum duration. A contract may be entered into for
any period of time deemed to be in the best interests of the
State but not exceeding 10 years inclusive, beginning January
1, 2010, of proposed contract renewals. Third parties may lease

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State-owned dark fiber networks for any period of time deemed
to be in the best interest of the State, but not exceeding 20
years. The length of a lease for real property or capital
improvements shall be in accordance with the provisions of
Section 40-25. The length of energy conservation program
contracts or energy savings contracts or leases shall be in
accordance with the provisions of Section 25-45. A contract for
bond or mortgage insurance awarded by the Illinois Housing
Development Authority, however, may be entered into for any
period of time less than or equal to the maximum period of time
that the subject bond or mortgage may remain outstanding.
(b) Subject to appropriation. All contracts made or entered
into shall recite that they are subject to termination and
cancellation in any year for which the General Assembly fails
to make an appropriation to make payments under the terms of
the contract.
(c) The chief procurement officer shall file a proposed
extension or renewal of a contract with the Procurement Policy
Board prior to entering into any extension or renewal if the
cost associated with the extension or renewal exceeds $249,999.
The Procurement Policy Board may object to the proposed
extension or renewal within 30 calendar days and require a
hearing before the Board prior to entering into the extension
or renewal. If the Procurement Policy Board does not object
within 30 calendar days or takes affirmative action to
recommend the extension or renewal, the chief procurement

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officer may enter into the extension or renewal of a contract.
This subsection does not apply to any emergency procurement,
any procurement under Article 40, or any procurement exempted
by Section 1-10(b) of this Code. If any State agency contract
is paid for in whole or in part with federal-aid funds, grants,
or loans and the provisions of this subsection would result in
the loss of those federal-aid funds, grants, or loans, then the
contract is exempt from the provisions of this subsection in
order to remain eligible for those federal-aid funds, grants,
or loans, and the State agency shall file notice of this
exemption with the Procurement Policy Board prior to entering
into the proposed extension or renewal. Nothing in this
subsection permits a chief procurement officer to enter into an
extension or renewal in violation of subsection (a). By August
1 each year, the Procurement Policy Board shall file a report
with the General Assembly identifying for the previous fiscal
year (i) the proposed extensions or renewals that were filed
with the Board and whether the Board objected and (ii) the
contracts exempt from this subsection.
(d) Notwithstanding the provisions of subsection (a) of
this Section, the Department of Innovation and Technology may
enter into leases for dark fiber networks for any period of
time deemed to be in the best interests of the State but not
exceeding 20 years inclusive. The Department of Innovation and
Technology may lease dark fiber networks from third parties
only for the primary purpose of providing services to (i) to

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the offices of Governor, Lieutenant Governor, Attorney
General, Secretary of State, Comptroller, or Treasurer and
State agencies, as defined under Section 5-15 of the Civil
Administrative Code of Illinois or (ii) for anchor
institutions, as defined in Section 7 of the Illinois Century
Network Act. Dark fiber network lease contracts shall be
subject to all other provisions of this Code and any applicable
rules or requirements, including, but not limited to,
publication of lease solicitations, use of standard State
contracting terms and conditions, and approval of vendor
certifications and financial disclosures.
(e) As used in this Section, "dark fiber network" means a
network of fiber optic cables laid but currently unused by a
third party that the third party is leasing for use as network
infrastructure.
(f) No vendor shall be eligible for renewal of a contract
when that vendor has failed to demonstrate a good faith effort
towards meeting the goals established in the utilization plan,
or that vendor is not otherwise excused from compliance under
the Business Enterprise Program Act.
(Source: P.A. 100-23, eff. 7-6-17; 100-611, eff. 7-20-18;
revised 10-11-18.)
(30 ILCS 500/50-85 new)
Sec. 50-85. Diversity training; report.
(a) All employees with purchasing power or the power to

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award contracts under the Code shall complete annual training
for diversity and inclusion as prescribed by each chief
procurement officer in consultation with the Business
Enterprise Council. Employees for purposes of this subsection
include State purchasing officers, chief procurement officers,
State agency and public institution of higher education
purchasing staffs, and other applicable supportive personnel
and staff of each chief procurement officer.
(b) Each chief procurement officer shall submit to the
General Assembly an annual report that summarizes the diversity
training that was completed during the previous year and lays
out the plan for the diversity training programs in the coming
year. Each chief procurement officer shall also submit to the
Executive Ethics Commission an annual report detailing the
current status of his or her diversity efforts, and an action
plan to increase diversity within his or her office.
Section 10. The Business Enterprise for Minorities, Women,
and Persons with Disabilities Act is amended by changing
Sections 4f and 6 as follows:
(30 ILCS 575/4f)
(Section scheduled to be repealed on June 30, 2020)
Sec. 4f. Award of State contracts.
(1) It is hereby declared to be the public policy of the
State of Illinois to promote and encourage each State agency

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and public institution of higher education to use businesses
owned by minorities, women, and persons with disabilities in
the area of goods and services, including, but not limited to,
insurance services, investment management services,
information technology services, accounting services,
architectural and engineering services, and legal services.
Furthermore, each State agency and public institution of higher
education shall utilize such firms to the greatest extent
feasible within the bounds of financial and fiduciary prudence,
and take affirmative steps to remove any barriers to the full
participation of such firms in the procurement and contracting
opportunities afforded.
(a) When a State agency or public institution of higher
education, other than a community college, awards a
contract for insurance services, for each State agency or
public institution of higher education, it shall be the
aspirational goal to use insurance brokers owned by
minorities, women, and persons with disabilities as
defined by this Act, for not less than 20% of the total
annual premiums or fees.
(b) When a State agency or public institution of higher
education, other than a community college, awards a
contract for investment services, for each State agency or
public institution of higher education, it shall be the
aspirational goal to use emerging investment managers
owned by minorities, women, and persons with disabilities

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as defined by this Act, for not less than 20% of the total
funds under management. Furthermore, it is the
aspirational goal that not less than 20% of the direct
asset managers of the State funds be minorities, women, and
persons with disabilities.
(c) When a State agency or public institution of higher
education, other than a community college, awards
contracts for information technology services, accounting
services, architectural and engineering services, and
legal services, for each State agency and public
institution of higher education, it shall be the
aspirational goal to use such firms owned by minorities,
women, and persons with disabilities as defined by this Act
and lawyers who are minorities, women, and persons with
disabilities as defined by this Act, for not less than 20%
of the total dollar amount of State contracts.
(d) When a community college awards a contract for
insurance services, investment services, information
technology services, accounting services, architectural
and engineering services, and legal services, it shall be
the aspirational goal of each community college to use
businesses owned by minorities, women, and persons with
disabilities as defined in this Act for not less than 20%
of the total amount spent on contracts for these services
collectively. When a community college awards contracts
for investment services, contracts awarded to investment

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managers who are not emerging investment managers as
defined in this Act shall not be considered businesses
owned by minorities, women, or persons with disabilities
for the purposes of this Section.
(e) When a State agency or public institution of higher
education issues requests for proposals or solicitations,
including requests and solicitations for contracts with
group purchasing organizations, that fall within a service
or product offering that has a history of disparate awards
to a class of business owners that are underrepresented in
contract awards, it shall be the aspirational goal to use
service or product providers owned by minorities, women,
and persons with disabilities as defined by this Act for
not less than 20% of the total dollar amount of that State
contract.
If any State agency or public institution of higher
education contract is eligible to be paid for or
reimbursed, in whole or in part, with federal-aid funds,
grants, or loans, and the provisions of this paragraph (e)
would result in the loss of those federal-aid funds,
grants, or loans, then the contract is exempt from the
provisions of this paragraph (e) in order to remain
eligible for those federal-aid funds, grants, or loans.
(2) As used in this Section:
"Accounting services" means the measurement,
processing and communication of financial information

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about economic entities including, but is not limited to,
financial accounting, management accounting, auditing,
cost containment and auditing services, taxation and
accounting information systems.
"Architectural and engineering services" means
professional services of an architectural or engineering
nature, or incidental services, that members of the
architectural and engineering professions, and individuals
in their employ, may logically or justifiably perform,
including studies, investigations, surveying and mapping,
tests, evaluations, consultations, comprehensive planning,
program management, conceptual designs, plans and
specifications, value engineering, construction phase
services, soils engineering, drawing reviews, preparation
of operating and maintenance manuals, and other related
services.
"Emerging investment manager" means an investment
manager or claims consultant having assets under
management below $10 billion or otherwise adjudicating
claims.
"Information technology services" means, but is not
limited to, specialized technology-oriented solutions by
combining the processes and functions of software,
hardware, networks, telecommunications, web designers,
cloud developing resellers, and electronics.
"Insurance broker" means an insurance brokerage firm,

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claims administrator, or both, that procures, places all
lines of insurance, or administers claims with annual
premiums or fees of at least $5,000,000 but not more than
$10,000,000.
"Legal services" means work performed by a lawyer
including, but not limited to, contracts in anticipation of
litigation, enforcement actions, or investigations.
(3) Each State agency and public institution of higher
education shall adopt policies that identify its plan and
implementation procedures for increasing the use of service
firms owned by minorities, women, and persons with
disabilities.
(4) Except as provided in subsection (5), the Council shall
file no later than March 1 of each year an annual report to the
Governor and the General Assembly. The report filed with the
General Assembly shall be filed as required in Section 3.1 of
the General Assembly Organization Act. This report shall: (i)
identify the service firms used by each State agency and public
institution of higher education, (ii) identify the actions it
has undertaken to increase the use of service firms owned by
minorities, women, and persons with disabilities, including
encouraging non-minority-owned firms to use other service
firms owned by minorities, women, and persons with disabilities
as subcontractors when the opportunities arise, (iii) state any
recommendations made by the Council to each State agency and
public institution of higher education to increase

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participation by the use of service firms owned by minorities,
women, and persons with disabilities, and (iv) include the
following:
(A) For insurance services: the names of the insurance
brokers or claims consultants used, the total of risk
managed by each State agency and public institution of
higher education by insurance brokers, the total
commissions, fees paid, or both, the lines or insurance
policies placed, and the amount of premiums placed; and the
percentage of the risk managed by insurance brokers, the
percentage of total commission, fees paid, or both, the
lines or insurance policies placed, and the amount of
premiums placed with each by the insurance brokers owned by
minorities, women, and persons with disabilities by each
State agency and public institution of higher education.
(B) For investment management services: the names of
the investment managers used, the total funds under
management of investment managers; the total commissions,
fees paid, or both; the total and percentage of funds under
management of emerging investment managers owned by
minorities, women, and persons with disabilities,
including the total and percentage of total commissions,
fees paid, or both by each State agency and public
institution of higher education.
(C) The names of service firms, the percentage and
total dollar amount paid for professional services by

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category by each State agency and public institution of
higher education.
(D) The names of service firms, the percentage and
total dollar amount paid for services by category to firms
owned by minorities, women, and persons with disabilities
by each State agency and public institution of higher
education.
(E) The total number of contracts awarded for services
by category and the total number of contracts awarded to
firms owned by minorities, women, and persons with
disabilities by each State agency and public institution of
higher education.
(5) For community college districts, the Business
Enterprise Council shall only report the following information
for each community college district: (i) the name of the
community colleges in the district, (ii) the name and contact
information of a person at each community college appointed to
be the single point of contact for vendors owned by minorities,
women, or persons with disabilities, (iii) the policy of the
community college district concerning certified vendors, (iv)
the certifications recognized by the community college
district for determining whether a business is owned or
controlled by a minority, woman, or person with a disability,
(v) outreach efforts conducted by the community college
district to increase the use of certified vendors, (vi) the
total expenditures by the community college district in the

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prior fiscal year in the divisions of work specified in
paragraphs (a), (b), and (c) of subsection (1) of this Section
and the amount paid to certified vendors in those divisions of
work, and (vii) the total number of contracts entered into for
the divisions of work specified in paragraphs (a), (b), and (c)
of subsection (1) of this Section and the total number of
contracts awarded to certified vendors providing these
services to the community college district. The Business
Enterprise Council shall not make any utilization reports under
this Act for community college districts for Fiscal Year 2015
and Fiscal Year 2016, but shall make the report required by
this subsection for Fiscal Year 2017 and for each fiscal year
thereafter. The Business Enterprise Council shall report the
information in items (i), (ii), (iii), and (iv) of this
subsection beginning in September of 2016. The Business
Enterprise Council may collect the data needed to make its
report from the Illinois Community College Board.
(6) The status of the utilization of services shall be
discussed at each of the regularly scheduled Business
Enterprise Council meetings. Time shall be allotted for the
Council to receive, review, and discuss the progress of the use
of service firms owned by minorities, women, and persons with
disabilities by each State agency and public institution of
higher education; and any evidence regarding past or present
racial, ethnic, or gender-based discrimination which directly
impacts a State agency or public institution of higher

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education contracting with such firms. If after reviewing such
evidence the Council finds that there is or has been such
discrimination against a specific group, race or sex, the
Council shall establish sheltered markets or adjust existing
sheltered markets tailored to address the Council's specific
findings for the divisions of work specified in paragraphs (a),
(b), and (c) of subsection (1) of this Section.
(Source: P.A. 99-462, eff. 8-25-15; 99-642, eff. 7-28-16;
100-391, eff. 8-25-17.)
(30 ILCS 575/6) (from Ch. 127, par. 132.606)
(Section scheduled to be repealed on June 30, 2020)
Sec. 6. Agency compliance plans. Each State agency and
public institutions of higher education under the jurisdiction
of this Act shall file with the Council an annual compliance
plan which shall outline the goals of the State agency or
public institutions of higher education for contracting with
businesses owned by minorities, women, and persons with
disabilities for the then current fiscal year, the manner in
which the agency intends to reach these goals and a timetable
for reaching these goals. The Council shall review and approve
the plan of each State agency and public institutions of higher
education and may reject any plan that does not comply with
this Act or any rules or regulations promulgated pursuant to
this Act.
(a) The compliance plan shall also include, but not be

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limited to, (1) a policy statement, signed by the State agency
or public institution of higher education head, expressing a
commitment to encourage the use of businesses owned by
minorities, women, and persons with disabilities, (2) the
designation of the liaison officer provided for in Section 5 of
this Act, (3) procedures to distribute to potential contractors
and vendors the list of all businesses legitimately classified
as businesses owned by minorities, women, and persons with
disabilities and so certified under this Act, (4) procedures to
set separate contract goals on specific prime contracts and
purchase orders with subcontracting possibilities based upon
the type of work or services and subcontractor availability,
(5) procedures to assure that contractors and vendors make good
faith efforts to meet contract goals, (6) procedures for
contract goal exemption, modification and waiver, and (7) the
delineation of separate contract goals for businesses owned by
minorities, women, and persons with disabilities.
(b) Approval of the compliance plans shall include such
delegation of responsibilities to the requesting State agency
or public institution of higher education as the Council deems
necessary and appropriate to fulfill the purpose of this Act.
Such responsibilities may include, but need not be limited to
those outlined in subsections (1), (2) and (3) of Section 7,
paragraph (a) of Section 8, and Section 8a of this Act.
(c) Each State agency and public institution of higher
education under the jurisdiction of this Act shall file with

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the Council an annual report of its utilization of businesses
owned by minorities, women, and persons with disabilities
during the preceding fiscal year including lapse period
spending and a mid-fiscal year report of its utilization to
date for the then current fiscal year. The reports shall
include a self-evaluation of the efforts of the State agency or
public institution of higher education to meet its goals under
the Act, as well as a plan to increase the diversity of the
vendors engaged in contracts with the State agency or public
institution of higher education, with a particular focus on the
most underrepresented in contract awards.
(d) Notwithstanding any provisions to the contrary in this
Act, any State agency or public institution of higher education
which administers a construction program, for which federal law
or regulations establish standards and procedures for the
utilization of minority-owned and women-owned businesses and
disadvantaged businesses, shall implement a disadvantaged
business enterprise program to include minority-owned and
women-owned businesses and disadvantaged businesses, using the
federal standards and procedures for the establishment of goals
and utilization procedures for the State-funded, as well as the
federally assisted, portions of the program. In such cases,
these goals shall not exceed those established pursuant to the
relevant federal statutes or regulations. Notwithstanding the
provisions of Section 8b, the Illinois Department of
Transportation is authorized to establish sheltered markets

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for the State-funded portions of the program consistent with
federal law and regulations. Additionally, a compliance plan
which is filed by such State agency or public institution of
higher education pursuant to this Act, which incorporates
equivalent terms and conditions of its federally-approved
compliance plan, shall be deemed approved under this Act.
(Source: P.A. 99-462, eff. 8-25-15; 100-391, eff. 8-25-17.)