Bill Text: IL HB4846 | 2023-2024 | 103rd General Assembly | Introduced

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Reinserts the provisions of the introduced bill with changes. Further amends the Business Enterprise for Minorities, Women, and Persons with Disabilities Act to define the term "goal". Removes provisions from the introduced bill providing that no State agency or public institution of higher education shall maintain a policy of establishing contract specific goals for the participation of certified vendors that is inconsistent with or less stringent than the uniform standards for calculating contract specific goals established by the Business Enterprise Program. Removes provisions requiring State agencies and public institutions of higher education to submit reports to the Business Enterprise Council. Removes provisions from the introduced bill concerning procedures for determining whether a vendor has made good faith efforts to meet the contract goals. Provides that the Business Enterprise Program may (in the introduced bill, shall) establish uniform standards for calculating contract specific Business Enterprise Program goals for State contracts and State construction contracts. Provides that, for the purposes of those provisions, the terms "State contract" and "State construction contract" do not include grants from State agencies to grantees for capital improvements or operational expenses.

Spectrum: Partisan Bill (Democrat 4-0)

Status: (Engrossed) 2024-05-20 - Referred to Assignments [HB4846 Detail]

Download: Illinois-2023-HB4846-Introduced.html

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103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB4846 Introduced , by Rep. Curtis J. Tarver, II SYNOPSIS AS INTRODUCED:
30 ILCS 575/3.5 new
30 ILCS 575/5 from Ch. 127, par. 132.605
30 ILCS 575/7 from Ch. 127, par. 132.607
30 ILCS 575/8 from Ch. 127, par. 132.608
Amends the Business Enterprise for Minorities, Women, and Persons with Disabilities Act. Provides for a uniform standard of contract goals for State agencies, public institutions of higher education, and other departments. Specifies further requirements concerning the uniform standard of contract goals. Provides that the Secretary of the Business Enterprise Council for Minorities, Women, and Persons with Disabilities shall have the duty to establish an enforcement procedure whereby the Council may recommend to the appropriate State legal officer that the State exercise its legal remedies which shall include, among other legal remedies, the imposition of a penalty in the amount of the discrepancy between the commitment contained in a utilization plan, as such amount may be amended over the term of the contract, and the qualifying payments made to the eligible certified vendors listed in the utilization plan. Provides that the terms of every contract entered into by a State agency or public institution of higher education for purposes of the Act shall include a provision requiring vendors who fail to comply with a utilization plan to return all funds paid to that vendor with an expectation of compliance. Provides that the Council may (rather than shall) grant a waiver when the contractor demonstrates that there has been a good faith effort to comply with the goals for participation by businesses owned by minorities, women, and persons with disabilities. Makes conforming and 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 Business Enterprise for Minorities, Women,
and Persons with Disabilities Act is amended by changing
Sections 5, 7, and 8 and by adding Section 3.5 as follows:
(30 ILCS 575/3.5 new)
Sec. 3.5. Uniform standard of contract goals.
(a) The Business Enterprise Program shall establish
uniform standards for calculating contract specific Business
Enterprise Program goals for all State contracts and State
construction contracts subject to this Act. The uniform
standards may consider normal industry practice, the scope of
the work to be performed under a contract, the availability of
vendors that are able to perform the scope of the work to be
performed under a contract, the availability of certified
vendors that are able to perform the work to be performed under
a contract, and the State's progress to date toward meeting
the aspirational goals set forth in this Act.
(b) No State agency or public institution of higher
education shall maintain a policy of establishing contract
specific goals for the participation of certified vendors that
is inconsistent with or less stringent than the uniform

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standards for calculating contract specific goals established
by the Business Enterprise Program.
(c) Each State agency and public institution of higher
education subject to the requirements of this Act shall, on an
annual basis, submit a report to the Council detailing its
plan to meet the aspirational contract goals established under
this Act and established for that agency and institution.
(30 ILCS 575/5) (from Ch. 127, par. 132.605)
(Section scheduled to be repealed on June 30, 2029)
Sec. 5. Business Enterprise Council.
(1) To help implement, monitor, and enforce the goals of
this Act, there is created the Business Enterprise Council for
Minorities, Women, and Persons with Disabilities, hereinafter
referred to as the Council, composed of the Chairperson of the
Commission on Equity and Inclusion, the Secretary of Human
Services and the Directors of the Department of Human Rights,
the Department of Commerce and Economic Opportunity, the
Department of Central Management Services, the Department of
Transportation and the Capital Development Board, or their
duly appointed representatives, with the Comptroller, or his
or her designee, serving as an advisory member of the Council.
Ten individuals representing businesses that are
minority-owned, women-owned, or owned by persons with
disabilities, 2 individuals representing the business
community, and a representative of public institutions of

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higher education shall be appointed by the Governor. These
members shall serve 2-year terms and shall be eligible for
reappointment. Any vacancy occurring on the Council shall also
be filled by the Governor. Any member appointed to fill a
vacancy occurring prior to the expiration of the term for
which his or her predecessor was appointed shall be appointed
for the remainder of such term. Members of the Council shall
serve without compensation but shall be reimbursed for any
ordinary and necessary expenses incurred in the performance of
their duties.
The Chairperson of the Commission shall serve as the
Council chairperson and shall select, subject to approval of
the Council, a Secretary responsible for the operation of the
program who shall serve as the Division Manager of the
Business Enterprise for Minorities, Women, and Persons with
Disabilities Division of the Commission on Equity and
Inclusion.
The Director of each State agency and the chief executive
officer of each public institution of higher education shall
appoint a liaison to the Council. The liaison shall be
responsible for submitting to the Council any reports and
documents necessary under this Act.
(2) The Council's authority and responsibility shall be
to:
(a) Devise a certification procedure to assure that
businesses taking advantage of this Act are legitimately

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classified as businesses owned by minorities, women, or
persons with disabilities and a registration procedure to
recognize, without additional evidence of Business
Enterprise Program eligibility, the certification of
businesses owned by minorities, women, or persons with
disabilities certified by the City of Chicago, Cook
County, or other jurisdictional programs with requirements
and procedures equaling or exceeding those in this Act.
(b) Maintain a list of all businesses legitimately
classified as businesses owned by minorities, women, or
persons with disabilities to provide to State agencies and
public institutions of higher education.
(c) Review rules and regulations for the
implementation of the program for businesses owned by
minorities, women, and persons with disabilities.
(d) Review compliance plans submitted by each State
agency and public institution of higher education pursuant
to this Act.
(e) Make annual reports as provided in Section 8f to
the Governor and the General Assembly on the status of the
program.
(f) Serve as a central clearinghouse for information
on State contracts, including the maintenance of a list of
all pending State contracts upon which businesses owned by
minorities, women, and persons with disabilities may bid.
At the Council's discretion, maintenance of the list may

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include 24-hour electronic access to the list along with
the bid and application information.
(g) Establish a toll-free telephone number to
facilitate information requests concerning the
certification process and pending contracts.
(h) Adopt a procedure to grant automatic certification
to businesses holding a certification from at least one of
the following entities: (i) the Illinois Unified
Certification Program; (ii) the Women's Business
Development Center in Chicago; (iii) the Chicago Minority
Supplier Development Council; or (iv) any other similar
entity offering such certification to businesses.
(i) Develop and maintain a repository for
non-certified vendors that: (i) have applied for
certification and have been denied; (ii) have started, but
not completed, the certification process; (iii) have
achieved certification, but did not seek renewal; or (iv)
are known businesses owned by minorities, women, or
persons with disabilities.
(3) No premium bond rate of a surety company for a bond
required of a business owned by a minority, woman, or person
with a disability bidding for a State contract shall be higher
than the lowest rate charged by that surety company for a
similar bond in the same classification of work that would be
written for a business not owned by a minority, woman, or
person with a disability.

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(4) Any Council member who has direct financial or
personal interest in any measure pending before the Council
shall disclose this fact to the Council and refrain from
participating in the determination upon such measure.
(5) The Secretary shall have the following duties and
responsibilities:
(a) To be responsible for the day-to-day operation of
the Council.
(b) To serve as a coordinator for all of the State's
programs for businesses owned by minorities, women, and
persons with disabilities and as the information and
referral center for all State initiatives for businesses
owned by minorities, women, and persons with disabilities.
(c) To establish an enforcement procedure whereby the
Council may recommend to the appropriate State legal
officer that the State exercise its legal remedies which
shall include (1) termination of the contract involved,
(2) prohibition of participation by the respondent in
State public contracts for a period not to exceed 3 years,
(3) imposition of a penalty in the amount of the
discrepancy between the commitment contained in the
utilization plan, as such amount may be amended over the
term of the contract, and the qualifying payments made to
the eligible certified vendors listed in the utilization
plan a penalty not to exceed any profit acquired as a
result of violation, or (4) any combination thereof. Such

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procedures shall require prior approval by Council. All
funds collected as penalties under this subsection shall
be used exclusively for maintenance and further
development of the Business Enterprise Program and
encouragement of participation in State procurement by
minorities, women, and persons with disabilities.
(d) To devise appropriate policies, regulations, and
procedures for including participation by businesses owned
by minorities, women, and persons with disabilities as
prime contractors, including, but not limited to: (i)
encouraging the inclusions of qualified businesses owned
by minorities, women, and persons with disabilities on
solicitation lists, (ii) investigating the potential of
blanket bonding programs for small construction jobs, and
(iii) investigating and making recommendations concerning
the use of the sheltered market process.
(e) To devise procedures for the waiver of the
participation goals in appropriate circumstances.
(f) To accept donations and, with the approval of the
Council or the Chairperson of the Commission on Equity and
Inclusion, grants related to the purposes of this Act; to
conduct seminars related to the purpose of this Act and to
charge reasonable registration fees; and to sell
directories, vendor lists, and other such information to
interested parties, except that forms necessary to become
eligible for the program shall be provided free of charge

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to a business or individual applying for the Business
Enterprise Program.
(Source: P.A. 101-601, eff. 1-1-20; 101-657, eff. 1-1-22;
102-29, eff. 6-25-21; 102-558, eff. 8-20-21; 102-721, eff.
1-1-23.)
(30 ILCS 575/7) (from Ch. 127, par. 132.607)
(Section scheduled to be repealed on June 30, 2029)
Sec. 7. Exemptions; waivers; publication of data.
(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

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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
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

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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
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

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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)
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;

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(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.
(b) Limitation. Any such class exemption shall not be
permitted for a period of more than one year at a time.
(3) Waivers. Where a particular contract requires a vendor
to meet a goal established pursuant to this Act, the vendor
shall have the right to request a waiver from such
requirements prior to the contract award. The Business
Enterprise Program shall evaluate a vendor's request for a
waiver based on the vendor's documented good faith efforts to
meet the contract-specific Business Enterprise Program goal.
The Council may 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 may shall also be transmitted in writing to the Bureau
on Apprenticeship Programs and Clean Energy Jobs.
(a) Request for waiver. A vendor's request for a
waiver under this subsection (3) must include, but is not

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limited to, the following:
(i) a list of eligible businesses owned by
minorities, women, and persons with disabilities that
pertain to the the class of contracts in the requested
waiver that were contracted contacted by the vendor.
Eligible businesses are only eligible if the business
is certified for the products or work advertised in
the solicitation or bid;
(ii) (blank);
(iia) a clear demonstration that the vendor
selected portions of the work to be performed by
certified vendors to facilitate meeting the contract
specific goal, and that certified vendors that have
the capability to perform the work of the contract
were solicited through all reasonable and available
means;
(iib) documentation demonstrating that certified
vendors are not rejected as being unqualified without
sound reasons based on a thorough investigation of
their capabilities. The certified vendor's standing
within its industry, membership in specific groups,
organizations, or associations, and political or
social affiliations are not legitimate causes for
rejecting or not contacting or negotiating with a
certified vendor;
(iic) proof that the prime vendor solicited

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eligible certified vendors with: (1) sufficient time
to respond; (2) adequate information about the scope,
specifications, and requirements of the solicitation
or bid, including plans, drawings, and addenda, to
allow eligible businesses an opportunity to respond to
the solicitation or bid; and (3) sufficient follow up
with certified vendors;
(iid) a clear demonstration that the prime vendor
communicated with certified vendors;
(iie) evidence that the prime vendor negotiated
with certified vendors to enter into subcontracts to
provide a commercially useful function of the contract
for a reasonable cost;
(iii) documentation demonstrating that the
difference in cost between the contract proposals
being offered by certified vendors is excessive or
unreasonable;
(iv) a list of certified vendors owned by
minorities, women, and persons with disabilities that
the contractor has used in the current and prior
fiscal years;
(v) documentation demonstrating that the vendor
made efforts to utilize certified vendors despite the
ability or desire of a vendor to perform the work with
its own operations by selecting portions of the work
to be performed by certified vendors, which may, when

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appropriate, include breaking out portions of the work
to be performed into economically feasible units to
facilitate certified vendor participation; and
(vi) documentation that the vendor used the
services of: (1) the State; (2) organizations or
contractors' groups representing or composed of
minorities, women, or persons with disabilities; (3)
local, State, or federal assistance offices
representing or assisting minorities, women, or
persons with disabilities; and (4) other organizations
that provide assistance in the recruitment and
engagement of certified vendors.
If any of the information required under this
subdivision (a) is not available to the vendor, despite
the vendor's good faith efforts to obtain the information,
the vendor's request for a waiver must contain a written
explanation of why that information is not included.
(b) Determination. The Council's determination
concerning waivers must include following:
(i) the justification for the requested waiver,
including whether the requesting vendor made a good
faith effort to identify and solicit certified vendors
based on the criteria set forth in this Section;
(ii) the total number of waivers the vendor has
been granted by the Council in the current and prior
fiscal years;

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(iii) (blank); and
(iv) the vendor'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 vendors 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 vendors identified in the bidder's or offeror's
submitted utilization plan, and (iv) the percentage of the
contract awarded to each certified vendor that is a business
owned by minorities, women, and persons with disabilities
identified in the utilization plan.
(Source: P.A. 102-29, eff. 6-25-21; 102-662, eff. 9-15-21;
103-570, eff. 1-1-24.)
(30 ILCS 575/8) (from Ch. 127, par. 132.608)
(Section scheduled to be repealed on June 30, 2029)
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
recommend any or all of the following actions:

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(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)
the assessment of a penalty in the amount of the
discrepancy between the commitment contained in the
utilization plan, as such amount may be amended over the
term of the contract, and the qualifying payments made to
the certified vendors listed in the utilization plan
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

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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
solicitation efforts to obtain more businesses owned
by minorities, women, and persons with disabilities as
potential sources of supply;
(ii) division of the scope of work 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

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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
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 certified 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. Such remedies

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