Bill Text: IL HB3864 | 2023-2024 | 103rd General Assembly | Introduced

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Bill Title: Amends the Business Enterprise for Minorities, Women, and Persons with Disabilities Act. Provides that not less than 40% of the total dollar amount of State contracts shall be established as an aspirational goal to be awarded to businesses owned by minorities. Provides that of the total amount of all State contracts awarded to businesses owned by minorities, contracts representing at least 20% shall be awarded to businesses owned by black or African American persons. Removes provisions allowing for a waiver from contract goals established under the Act. Requires the return of specified funds for failing to accomplish contract goals established under the Act. Makes conforming changes.

Spectrum: Partisan Bill (Democrat 2-0)

Status: (Introduced) 2023-03-10 - Rule 19(a) / Re-referred to Rules Committee [HB3864 Detail]

Download: Illinois-2023-HB3864-Introduced.html

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103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB3864 Introduced , by Rep. Hoan Huynh SYNOPSIS AS INTRODUCED:
30 ILCS 575/2
30 ILCS 575/4 from Ch. 127, par. 132.604
30 ILCS 575/7 from Ch. 127, par. 132.607
30 ILCS 575/8 from Ch. 127, par. 132.608
30 ILCS 575/8f
Amends the Business Enterprise for Minorities, Women, and Persons with Disabilities Act. Provides that not less than 40% of the total dollar amount of State contracts shall be established as an aspirational goal to be awarded to businesses owned by minorities. Provides that of the total amount of all State contracts awarded to businesses owned by minorities, contracts representing at least 20% shall be awarded to businesses owned by black or African American persons. Removes provisions allowing for a waiver from contract goals established under the Act. Requires the return of specified funds for failing to accomplish contract goals established under the Act. Makes conforming changes.
LRB103 31036 HLH 57654 b
A BILL FOR
HB3864 LRB103 31036 HLH 57654 b
AN ACT concerning government.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Business Enterprise for Minorities, Women,
and Persons with Disabilities Act is amended by changing
Sections 2, 4, 7, 8, and 8f as follows:
(30 ILCS 575/2)
(Section scheduled to be repealed on June 30, 2024)
Sec. 2. Definitions.
(A) For the purpose of this Act, the following terms shall
have the following definitions:
(1) "Minority person" shall mean a person who is a
citizen or lawful permanent resident of the United States
and who is any of the following:
(a) American Indian or Alaska Native (a person
having origins in any of the original peoples of North
and South America, including Central America, and who
maintains tribal affiliation or community attachment).
(b) Asian (a person having origins in any of the
original peoples of the Far East, Southeast Asia, or
the Indian subcontinent, including, but not limited
to, Cambodia, China, India, Japan, Korea, Malaysia,
Pakistan, the Philippine Islands, Thailand, and

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Vietnam).
(c) Black or African American (a person having
origins in any of the black racial groups of Africa).
(d) Hispanic or Latino (a person of Cuban,
Mexican, Puerto Rican, South or Central American, or
other Spanish culture or origin, regardless of race).
(e) Native Hawaiian or Other Pacific Islander (a
person having origins in any of the original peoples
of Hawaii, Guam, Samoa, or other Pacific Islands).
(2) "Woman" shall mean a person who is a citizen or
lawful permanent resident of the United States and who is
of the female gender.
(2.05) "Person with a disability" means a person who
is a citizen or lawful resident of the United States and is
a person qualifying as a person with a disability under
subdivision (2.1) of this subsection (A).
(2.1) "Person with a disability" means a person with a
severe physical or mental disability that:
(a) results from:
amputation,
arthritis,
autism,
blindness,
burn injury,
cancer,
cerebral palsy,

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Crohn's disease,
cystic fibrosis,
deafness,
head injury,
heart disease,
hemiplegia,
hemophilia,
respiratory or pulmonary dysfunction,
an intellectual disability,
mental illness,
multiple sclerosis,
muscular dystrophy,
musculoskeletal disorders,
neurological disorders, including stroke and
epilepsy,
paraplegia,
quadriplegia and other spinal cord conditions,
sickle cell anemia,
ulcerative colitis,
specific learning disabilities, or
end stage renal failure disease; and
(b) substantially limits one or more of the
person's major life activities.
Another disability or combination of disabilities may
also be considered as a severe disability for the purposes
of item (a) of this subdivision (2.1) if it is determined

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by an evaluation of rehabilitation potential to cause a
comparable degree of substantial functional limitation
similar to the specific list of disabilities listed in
item (a) of this subdivision (2.1).
(3) "Minority-owned business" means a business which
is at least 51% owned by one or more minority persons, or
in the case of a corporation, at least 51% of the stock in
which is owned by one or more minority persons; and the
management and daily business operations of which are
controlled by one or more of the minority individuals who
own it.
(4) "Women-owned business" means a business which is
at least 51% owned by one or more women, or, in the case of
a corporation, at least 51% of the stock in which is owned
by one or more women; and the management and daily
business operations of which are controlled by one or more
of the women who own it.
(4.1) "Business owned by a person with a disability"
means a business that is at least 51% owned by one or more
persons with a disability and the management and daily
business operations of which are controlled by one or more
of the persons with disabilities who own it. A
not-for-profit agency for persons with disabilities that
is exempt from taxation under Section 501 of the Internal
Revenue Code of 1986 is also considered a "business owned
by a person with a disability".

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(4.2) "Council" means the Business Enterprise Council
for Minorities, Women, and Persons with Disabilities
created under Section 5 of this Act.
(4.3) "Commission" means, unless the context clearly
indicates otherwise, the Commission on Equity and
Inclusion created under the Commission on Equity and
Inclusion Act.
(5) "State contracts" means all contracts entered into
by the State, any agency or department thereof, or any
public institution of higher education, including
community college districts, regardless of the source of
the funds with which the contracts are paid, which are not
subject to federal reimbursement. "State contracts" does
not include contracts awarded by a retirement system,
pension fund, or investment board subject to Section
1-109.1 of the Illinois Pension Code. This definition
shall control over any existing definition under this Act
or applicable administrative rule.
"State construction contracts" means all State
contracts entered into by a State agency or public
institution of higher education for the repair,
remodeling, renovation or construction of a building or
structure, or for the construction or maintenance of a
highway defined in Article 2 of the Illinois Highway Code.
(6) "State agencies" shall mean all departments,
officers, boards, commissions, institutions and bodies

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politic and corporate of the State, but does not include
the Board of Trustees of the University of Illinois, the
Board of Trustees of Southern Illinois University, the
Board of Trustees of Chicago State University, the Board
of Trustees of Eastern Illinois University, the Board of
Trustees of Governors State University, the Board of
Trustees of Illinois State University, the Board of
Trustees of Northeastern Illinois University, the Board of
Trustees of Northern Illinois University, the Board of
Trustees of Western Illinois University, municipalities or
other local governmental units, or other State
constitutional officers.
(7) "Public institutions of higher education" means
the University of Illinois, Southern Illinois University,
Chicago State University, Eastern Illinois University,
Governors State University, Illinois State University,
Northeastern Illinois University, Northern Illinois
University, Western Illinois University, the public
community colleges of the State, and any other public
universities, colleges, and community colleges now or
hereafter established or authorized by the General
Assembly.
(8) "Certification" means a determination made by the
Council or by one delegated authority from the Council to
make certifications, or by a State agency with statutory
authority to make such a certification, that a business

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entity is a business owned by a minority, woman, or person
with a disability for whatever purpose. A business owned
and controlled by women shall be certified as a
"woman-owned business". A business owned and controlled by
women who are also minorities shall be certified as both a
"women-owned business" and a "minority-owned business".
(9) "Control" means the exclusive or ultimate and 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, operating 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.
(10) "Business" means a business that has annual gross
sales of less than $150,000,000 as evidenced by the
federal income tax return of the business. A firm with

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gross sales in excess of this cap may apply to the Council
for certification for a particular contract if the firm
can demonstrate that the contract would have significant
impact on businesses owned by minorities, women, or
persons with disabilities as suppliers or subcontractors
or in employment of minorities, women, or persons with
disabilities. Firms with gross sales in excess of this cap
that are granted certification by the Council shall be
granted certification for the life of the contract,
including available renewals.
(11) "Utilization plan" means a form and additional
documentations included in all bids or proposals that
demonstrates a vendor's proposed utilization of vendors
certified by the Business Enterprise Program to meet the
targeted goal. The utilization plan shall demonstrate that
the Vendor has either: (1) met the entire contract goal or
(2) requested a full or partial waiver and made good faith
efforts towards meeting the goal.
(12) "Business Enterprise Program" means the Business
Enterprise Program of the Commission on Equity and
Inclusion.
(B) When a business is owned at least 51% by any
combination of minority persons, women, or persons with
disabilities, even though none of the 3 classes alone holds at
least a 51% interest, the ownership requirement for purposes
of this Act is considered to be met. The certification

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category for the business is that of the class holding the
largest ownership interest in the business. If 2 or more
classes have equal ownership interests, the certification
category shall be determined by the business.
(Source: P.A. 101-601, eff. 1-1-20; 101-657, eff. 1-1-22;
102-29, eff. 6-25-21; 102-1119, eff. 1-23-23.)
(30 ILCS 575/4) (from Ch. 127, par. 132.604)
(Section scheduled to be repealed on June 30, 2024)
Sec. 4. Award of State contracts.
(a) Except as provided in subsection (b), not less than
30% of the total dollar amount of State contracts, as defined
by the Secretary of the Council and approved by the Council,
shall be established as an aspirational goal to be awarded to
businesses owned by minorities, women, and persons with
disabilities; provided, however, that of the total amount of
all State contracts awarded to businesses owned by minorities,
women, and persons with disabilities pursuant to this Section,
contracts representing at least 16% shall be awarded to
businesses owned by minorities, contracts representing at
least 10% shall be awarded to women-owned businesses, and
contracts representing at least 10% 4% shall be awarded to
businesses owned by persons with disabilities.
Additionally, not less than 40% of the total dollar amount
of State contracts shall be established as an aspirational
goal to be awarded to businesses owned by minorities;

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provided, however, that of the total amount of all State
contracts awarded to businesses owned by minorities, contracts
representing at least 20% shall be awarded to businesses owned
by black or African American persons.
(a-5) In addition to the aspirational goals in awarding
State contracts set under subsection (a), the Commission shall
by rule further establish targeted efforts to encourage the
participation of businesses owned by minorities, women, and
persons with disabilities on State contracts. Such efforts
shall include, but not be limited to, further concerted
outreach efforts to businesses owned by minorities, women, and
persons with disabilities.
The above percentage relates to the total dollar amount of
State contracts during each State fiscal year, calculated by
examining independently each type of contract for each agency
or public institutions of higher education which lets such
contracts. Only that percentage of arrangements which
represents the participation of businesses owned by
minorities, women, and persons with disabilities on such
contracts shall be included. State contracts subject to the
requirements of this Act shall include the requirement that
only expenditures to businesses owned by minorities, women,
and persons with disabilities that perform a commercially
useful function may be counted toward the goals set forth by
this Act. Contracts shall include a definition of
"commercially useful function" that is consistent with 49 CFR

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26.55(c).
(b) Not less than 20% of the total dollar amount of State
construction contracts is established as an aspirational goal
to be awarded to businesses owned by minorities, women, and
persons with disabilities; provided that, contracts
representing at least 11% of the total dollar amount of State
construction contracts shall be awarded to businesses owned by
minorities; contracts representing at least 7% of the total
dollar amount of State construction contracts shall be awarded
to women-owned businesses; and contracts representing at least
2% of the total dollar amount of State construction contracts
shall be awarded to businesses owned by persons with
disabilities.
(c) (Blank).
(c-5) All goals established under this Section shall be
contingent upon the results of the most recent disparity study
conducted by the State.
(d) Within one year after April 28, 2009 (the effective
date of Public Act 96-8), the Department of Central Management
Services shall conduct a social scientific study that measures
the impact of discrimination on minority and women business
development in Illinois. Within 18 months after April 28, 2009
(the effective date of Public Act 96-8), the Department shall
issue a report of its findings and any recommendations on
whether to adjust the goals for minority and women
participation established in this Act. Copies of this report

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and the social scientific study shall be filed with the
Governor and the General Assembly.
By December 1, 2020, the Department of Central Management
Services shall conduct a new social scientific study that
measures the impact of discrimination on minority and women
business development in Illinois. By June 1, 2022, the
Department shall issue a report of its findings and any
recommendations on whether to adjust the goals for minority
and women participation established in this Act. Copies of
this report and the social scientific study shall be filed
with the Governor and the General Assembly. By December 1,
2022, the Commission on Equity and Inclusion Business
Enterprise Program shall develop a model for social scientific
disparity study sourcing for local governmental units to adapt
and implement to address regional disparities in public
procurement.
(e) All State contract solicitations that include Business
Enterprise Program participation goals shall require bidders
or offerors to include utilization plans. Utilization plans
are due at the time of bid or offer submission. Failure to
complete and include a utilization plan, including
documentation demonstrating good faith efforts when requesting
a waiver, shall render the bid or offer non-responsive.
Except as permitted under this Act or as otherwise
mandated by federal regulation, a bidder or offeror whose bid
or offer is accepted and who included in that bid a completed

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utilization plan but who fails to meet the goals set forth in
the plan shall be notified of the deficiency by the
contracting agency or public institution of higher education
and shall be given a period of 10 calendar days to cure the
deficiency by contracting with additional subcontractors who
are certified by the Business Enterprise Program or by
increasing the work to be performed by previously identified
vendors certified by the Business Enterprise Program.
Deficiencies that may be cured include: (i) scrivener's
errors, such as transposed numbers; (ii) information submitted
in an incorrect form or format; (iii) mistakes resulting from
failure to follow instructions or to identify and adequately
document good faith efforts taken to comply with the
utilization plan; or (iv) a proposal to use a firm whose
Business Enterprise Program certification has lapsed or is not
yet recognized. Cure is not authorized if the bidder or
offeror submits a blank utilization plan, a utilization plan
that shows lack of reasonable effort to complete the form on
time, or a utilization plan that states the contract will be
self-performed, by a non-certified vendor, without showing
good faith efforts or a request for a waiver. All cure activity
shall address the deficiencies identified by the purchasing
agency and shall require clear documentation, including that
of good faith efforts, to address those deficiencies. Any
increase in cost to a contract for the addition of a
subcontractor to cure a bid's deficiency shall not affect the

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bid price and shall not be used in the request for an exemption
under this Act, and, in no case, shall an identified
subcontractor with a Business Enterprise Program certification
made under this Act be terminated from a contract without the
written consent of the State agency or public institution of
higher education entering into the contract. The purchasing
agency or public institution of higher education shall make
the determination whether the cure is adequate.
Vendors certified with the Business Enterprise Program at
the time and date submittals are due and who do not submit a
utilization plan or have utilization plan deficiencies shall
have 10 business days to submit a utilization plan or to
correct the utilization plan deficiencies.
(f) (Blank).
(g) (Blank).
(h) State agencies and public institutions of higher
education shall notify the Commission on Equity and Inclusion
of all non-responsive bids or proposals for State contracts.
(Source: P.A. 101-170, eff. 1-1-20; 101-601, eff. 1-1-20;
101-657, Article 1, Section 1-5, eff. 1-1-22; 101-657, Article
40, Section 40-130, eff. 1-1-22; 102-29, eff. 6-25-21;
102-558, eff. 8-20-21; 102-1119, eff. 1-23-23.)
(30 ILCS 575/7) (from Ch. 127, par. 132.607)
(Section scheduled to be repealed on June 30, 2024)
Sec. 7. Exemptions; waivers; publication of data.

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(1) Individual contract exemptions. The Council, at the
written request of the affected agency, public institution of
higher education, or recipient of a grant or loan of State
funds of $250,000 or more complying with Section 45 of the
State Finance Act, may permit an individual contract or
contract package, (related contracts being bid or awarded
simultaneously for the same project or improvements) be made
wholly or partially exempt from State contracting goals for
businesses owned by minorities, women, and persons with
disabilities prior to the advertisement for bids or
solicitation of proposals whenever there has been a
determination, reduced to writing and based on the best
information available at the time of the determination, that
there is an insufficient number of businesses owned by
minorities, women, and persons with disabilities to ensure
adequate competition and an expectation of reasonable prices
on bids or proposals solicited for the individual contract or
contract package in question. Any such exemptions shall be
given by the Council to the Bureau on Apprenticeship Programs
and Clean Energy Jobs.
(a) Written request for contract exemption. A written
request for an individual contract exemption must include,
but is not limited to, the following:
(i) a list of eligible businesses owned by
minorities, women, and persons with disabilities;
(ii) a clear demonstration that the number of

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eligible businesses identified in subparagraph (i)
above is insufficient to ensure adequate competition;
(iii) the difference in cost between the contract
proposals being offered by businesses owned by
minorities, women, and persons with disabilities and
the agency or public institution of higher education's
expectations of reasonable prices on bids or proposals
within that class; and
(iv) a list of eligible businesses owned by
minorities, women, and persons with disabilities that
the contractor has used in the current and prior
fiscal years.
(b) Determination. The Council's determination
concerning an individual contract exemption must consider,
at a minimum, the following:
(i) the justification for the requested exemption,
including whether diligent efforts were undertaken to
identify and solicit eligible businesses owned by
minorities, women, and persons with disabilities;
(ii) the total number of exemptions granted to the
affected agency, public institution of higher
education, or recipient of a grant or loan of State
funds of $250,000 or more complying with Section 45 of
the State Finance Act that have been granted by the
Council in the current and prior fiscal years; and
(iii) the percentage of contracts awarded by the

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agency or public institution of higher education to
eligible businesses owned by minorities, women, and
persons with disabilities in the current and prior
fiscal years.
(2) Class exemptions.
(a) Creation. The Council, at the written request of
the affected agency or public institution of higher
education, may permit an entire class of contracts be made
exempt from State contracting goals for businesses owned
by minorities, women, and persons with disabilities
whenever there has been a determination, reduced to
writing and based on the best information available at the
time of the determination, that there is an insufficient
number of qualified businesses owned by minorities, women,
and persons with disabilities to ensure adequate
competition and an expectation of reasonable prices on
bids or proposals within that class. Any such exemption
shall be given by the Council to the Bureau on
Apprenticeship Programs and Clean Energy Jobs.
(a-1) Written request for class exemption. A written
request for a class exemption must include, but is not
limited to, the following:
(i) a list of eligible businesses owned by
minorities, women, and persons with disabilities;
(ii) a clear demonstration that the number of
eligible businesses identified in subparagraph (i)

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above is insufficient to ensure adequate competition;
(iii) the difference in cost between the contract
proposals being offered by eligible businesses owned
by minorities, women, and persons with disabilities
and the agency or public institution of higher
education's expectations of reasonable prices on bids
or proposals within that class; and
(iv) the number of class exemptions the affected
agency or public institution of higher education
requested in the current and prior fiscal years.
(a-2) Determination. The Council's determination
concerning class exemptions must consider, at a minimum,
the following:
(i) the justification for the requested exemption,
including whether diligent efforts were undertaken to
identify and solicit eligible businesses owned by
minorities, women, and persons with disabilities;
(ii) the total number of class exemptions granted
to the requesting agency or public institution of
higher education that have been granted by the Council
in the current and prior fiscal years; and
(iii) the percentage of contracts awarded by the
agency or public institution of higher education to
eligible businesses owned by minorities, women, and
persons with disabilities the current and prior fiscal
years.

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(b) Limitation. Any such class exemption shall not be
permitted for a period of more than one year at a time.
(3) (Blank). Waivers. Where a particular contract requires
a contractor to meet a goal established pursuant to this Act,
the contractor shall have the right to request a waiver from
such requirements prior to the contract award. The Council
shall grant the waiver when the contractor demonstrates that
there has been made a good faith effort to comply with the
goals for participation by businesses owned by minorities,
women, and persons with disabilities. Any such waiver shall
also be transmitted in writing to the Bureau on Apprenticeship
Programs and Clean Energy Jobs.
(a) Request for waiver. A contractor's request for a
waiver under this subsection (3) must include, but is not
limited to, the following, if available:
(i) a list of eligible businesses owned by
minorities, women, and persons with disabilities that
pertain to the scope of work of the contract. Eligible
businesses are only eligible if the business is
certified for the products or work advertised in the
solicitation;
(ii) (blank);
(iia) a clear demonstration that the contractor
selected portions of the work to be performed by
eligible businesses owned by minorities, women, and
persons with disabilities, solicited through all

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reasonable and available means eligible businesses,
and negotiated in good faith with interested eligible
businesses;
(iib) documentation demonstrating that businesses
owned by minorities, women, and persons with
disabilities are not rejected as being unqualified
without sound reasons based on a thorough
investigation of their capabilities;
(iii) documentation demonstrating that the
contract proposals being offered by businesses owned
by minorities, women, and persons with disabilities
are excessive or unreasonable; and
(iv) a list of businesses owned by minorities,
women, and persons with disabilities that the
contractor has used in the current and prior fiscal
years.
(b) Determination. The Council's determination
concerning waivers must include following:
(i) the justification for the requested waiver,
including whether the requesting contractor made a
good faith effort to identify and solicit eligible
businesses owned by minorities, women, and persons
with disabilities;
(ii) the total number of waivers the contractor
has been granted by the Council in the current and
prior fiscal years;

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(iii) (blank); and
(iv) the contractor's use of businesses owned by
minorities, women, and persons with disabilities in
the current and prior fiscal years.
(3.5) (Blank).
(4) Conflict with other laws. In the event that any State
contract, which otherwise would be subject to the provisions
of this Act, is or becomes subject to federal laws or
regulations which conflict with the provisions of this Act or
actions of the State taken pursuant hereto, the provisions of
the federal laws or regulations shall apply and the contract
shall be interpreted and enforced accordingly.
(5) Each chief procurement officer, as defined in the
Illinois Procurement Code, shall maintain on his or her
official Internet website a database of the following: (i)
waivers granted under this Section with respect to contracts
under his or her jurisdiction; (ii) a State agency or public
institution of higher education's written request for an
exemption of an individual contract or an entire class of
contracts; and (iii) the Council's written determination
granting or denying a request for an exemption of an
individual contract or an entire class of contracts. The
database, which shall be updated periodically as necessary,
shall be searchable by contractor name and by contracting
State agency.
(6) Each chief procurement officer, as defined by the

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Illinois Procurement Code, shall maintain on its website a
list of all firms that have been prohibited from bidding,
offering, or entering into a contract with the State of
Illinois as a result of violations of this Act.
Each public notice required by law of the award of a State
contract shall include for each bid or offer submitted for
that contract the following: (i) the bidder's or offeror's
name, (ii) the bid amount, (iii) the name or names of the
certified firms identified in the bidder's or offeror's
submitted utilization plan, and (iv) the bid's amount and
percentage of the contract awarded to businesses owned by
minorities, women, and persons with disabilities identified in
the utilization plan.
(Source: P.A. 101-170, eff. 1-1-20; 101-601, eff. 1-1-20;
101-657, eff. 1-1-22; 102-29, eff. 6-25-21; 102-662, eff.
9-15-21.)
(30 ILCS 575/8) (from Ch. 127, par. 132.608)
(Section scheduled to be repealed on June 30, 2024)
Sec. 8. Enforcement.
(1) The Commission on Equity and Inclusion shall make such
findings, recommendations and proposals to the Governor as are
necessary and appropriate to enforce this Act. If, as a result
of its monitoring activities, the Commission determines that
its goals and policies are not being met by any State agency or
public institution of higher education, the Commission may

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recommend any or all of the following actions:
(a) Establish enforcement procedures whereby the
Commission may recommend to the appropriate State agency,
public institutions of higher education, or law
enforcement officer that legal or administrative remedies
be initiated for violations of contract provisions or
rules issued hereunder or by a contracting State agency or
public institutions of higher education. State agencies
and public institutions of higher education shall be
authorized to adopt remedies for such violations which
shall include (1) termination of the contract involved,
(2) prohibition of participation of the respondents in
public contracts for a period not to exceed one year, (3)
imposition of a penalty not to exceed any profit acquired
as a result of violation, or (4) any combination thereof.
(b) If the Commission concludes that a compliance plan
submitted under Section 6 is unlikely to produce the
participation goals for businesses owned by minorities,
women, and persons with disabilities within the then
current fiscal year, the Commission may recommend that the
State agency or public institution of higher education
revise its plan to provide additional opportunities for
participation by businesses owned by minorities, women,
and persons with disabilities. Such recommended revisions
may include, but shall not be limited to, the following:
(i) assurances of stronger and better focused

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solicitation efforts to obtain more businesses owned
by minorities, women, and persons with disabilities as
potential sources of supply;
(ii) division of job or project requirements, when
economically feasible, into tasks or quantities to
permit participation of businesses owned by
minorities, women, and persons with disabilities;
(iii) elimination of extended experience or
capitalization requirements, when programmatically
feasible, to permit participation of businesses owned
by minorities, women, and persons with disabilities;
(iv) identification of specific proposed contracts
as particularly attractive or appropriate for
participation by businesses owned by minorities,
women, and persons with disabilities, such
identification to result from and be coupled with the
efforts of subparagraphs (i) through (iii);
(v) implementation of those regulations
established for the use of the sheltered market
process.
(2) State agencies and public institutions of higher
education shall monitor a vendor's compliance with its
utilization plan and the terms of its contract. Without
limitation, a vendor's failure to comply with its contractual
commitments as contained in the utilization plan; failure to
cooperate in providing information regarding its compliance

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with its utilization plan; or the provision of false or
misleading information or statements concerning compliance,
certification status, or eligibility of the Business
Enterprise Program-certified vendor, good faith efforts, or
any other material fact or representation shall constitute a
material breach of the contract and entitle the State agency
or public institution of higher education to declare a
default, terminate the contract, or exercise those remedies
provided for in the contract, at law, or in equity.
(3) Prior to the expiration or termination of a contract,
State agencies and public institutions of higher education
shall evaluate the contractor's fulfillment of the contract
goals for participation by businesses owned by minorities,
women, and persons with disabilities. The agency or public
institution of higher education shall prepare a report of the
vendor's compliance with the contract goals and file it with
the Secretary. If the Secretary determines that the vendor did
not fulfill the contract goals, the vendor shall be in breach
of the contract and may be subject to remedies or sanctions,
unless the vendor can show that it made good faith efforts to
meet the contract goals. Any vendor failing to meet the
contract goals established under this Act shall return all
funds which were allocated for, but not awarded to, black or
African American owned businesses. The vendor shall have 60
days after completion of any project to return such funds.
Such remedies or sanctions for failing to make good faith

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efforts may include (i) disqualification of the contractor
from doing business with the State for a period of no more than
one year or (ii) cancellation, without any penalty to the
State, of any contract entered into by the vendor. The
Business Enterprise Program shall develop procedures for
determining whether a vendor has made good faith efforts to
meet the contract goals upon the expiration or termination of
a contract.
(Source: P.A. 101-657, eff. 1-1-22; 102-29, eff. 6-25-21.)
(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

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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
$5,000,000; of $5,000,000 or more, but less than
$10,000,000; and of $10,000,000 or more; .
(6) the total procurement budget of the State and the
percentage of the State budget spent on procurement; and
(7) the amount of revenue procured by black or African
American owned businesses through State contracts.
(Source: P.A. 99-462, eff. 8-25-15; 100-391, eff. 8-25-17.)