Bill Text: IL SB3731 | 2023-2024 | 103rd General Assembly | Introduced

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Bill Title: Amends the Illinois Procurement Code. Provides that a construction business with annual sales and receipts in excess of $45,000,000 but not over $67,500,000.00 is a mid-size business. Provides that each chief procurement officer has authority to designate a fair proportion of construction, supply, and service contracts as mid-size business set-asides for award to mid-size businesses in Illinois. Requires advertisements for bids or offers for those contracts to specify designation as mid-size business set-asides. Provides that, in awarding the contracts, only bids or offers from qualified mid-size businesses shall be considered.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced) 2024-06-26 - Pursuant to Senate Rule 3-9(b) / Referred to Assignments [SB3731 Detail]

Download: Illinois-2023-SB3731-Introduced.html

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103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 SB3731 Introduced 2/9/2024, by Sen. Cristina Castro SYNOPSIS AS INTRODUCED:
30 ILCS 500/45-45
30 ILCS 500/45-46 new
Amends the Illinois Procurement Code. Provides that a construction business with annual sales and receipts in excess of $45,000,000 but not over $67,500,000.00 is a mid-size business. Provides that each chief procurement officer has authority to designate a fair proportion of construction, supply, and service contracts as mid-size business set-asides for award to mid-size businesses in Illinois. Requires advertisements for bids or offers for those contracts to specify designation as mid-size business set-asides. Provides that, in awarding the contracts, only bids or offers from qualified mid-size businesses shall be considered.
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A BILL FOR
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AN ACT concerning finance.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Illinois Procurement Code is amended by
changing Section 45-45 and by adding Section 45-46 as follows:
(30 ILCS 500/45-45)
Sec. 45-45. Small businesses.
(a) Set-asides. Each chief procurement officer has
authority to designate as small business set-asides a fair
proportion of construction, supply, and service contracts for
award to small businesses in Illinois. Advertisements for bids
or offers for those contracts shall specify designation as
small business set-asides. In awarding the contracts, only
bids or offers from qualified small businesses shall be
considered.
(b) Small business. "Small business" means a business that
is independently owned and operated and that is not dominant
in its field of operation. The chief procurement officer shall
establish a detailed definition by rule, using in addition to
the foregoing criteria other criteria, including the number of
employees and the dollar volume of business. When computing
the size status of a potential contractor, annual sales and
receipts of the potential contractor and all of its affiliates

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shall be included. The maximum number of employees and the
maximum dollar volume that a small business may have under the
rules promulgated by the chief procurement officer may vary
from industry to industry to the extent necessary to reflect
differing characteristics of those industries, subject to the
following limitations:
(1) No wholesale business is a small business if its
annual sales for its most recently completed fiscal year
exceed $13,000,000.
(2) No retail business or business selling services is
a small business if its annual sales and receipts exceed
$8,000,000.
(3) No manufacturing business is a small business if
it employs more than 250 persons.
(4) No construction business is a small business if
its annual sales and receipts exceed $45,000,000
$14,000,000.
(c) Fair proportion. For the purpose of subsection (a),
for State agencies of the executive branch, a fair proportion
of construction contracts shall be no less than 25% nor more
than 40% of the annual total contracts for construction.
(d) Withdrawal of designation. A small business set-aside
designation may be withdrawn by the purchasing agency when
deemed in the best interests of the State. Upon withdrawal,
all bids or offers shall be rejected, and the bidders or
offerors shall be notified of the reason for rejection. The

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

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officer for the simplification of specifications and terms
in order to increase the opportunities for small business
participation.
(5) Assisting in investigations by purchasing agencies
to determine the responsibility of bidders or offerors on
small business set-asides.
(f) Small business annual report. Each small business
specialist designated under subsection (e) shall annually
before November 1 report in writing to the General Assembly
concerning the awarding of contracts to small businesses. The
report shall include the total value of awards made in the
preceding fiscal year under the designation of small business
set-aside. The report shall also include the total value of
awards made to businesses owned by minorities, women, and
persons with disabilities, as defined in the Business
Enterprise for Minorities, Women, and Persons with
Disabilities Act, in the preceding fiscal year under the
designation of small business set-aside.
The requirement for reporting to the General Assembly
shall be satisfied by filing copies of the report as required
by Section 3.1 of the General Assembly Organization Act.
(Source: P.A. 103-570, eff. 1-1-24.)
(30 ILCS 500/45-46 new)
Sec. 45-46. Mid-Size businesses.
(a) As used in the Section, "mid-size business" means a

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