State of Illinois
91st General Assembly

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 1        AN ACT to amend the Illinois Procurement Code by changing
 2    Section 45-45.

 3        Be it enacted by the People of  the  State  of  Illinois,
 4    represented in the General Assembly:

 5        Section  5.   The Illinois Procurement Code is amended by
 6    changing Section 45-45 as follows:

 7        (30 ILCS 500/45-45)
 8        Sec. 45-45.  Small businesses.
 9        (a)  Set-asides.   The  chief  procurement  officer   has
10    authority  to  designate  as small business set-asides a fair
11    proportion of construction, supply, and service contracts for
12    award to small businesses in Illinois.    Advertisements  for
13    bids  or offers for those contracts shall specify designation
14    as small business set-asides.   In  awarding  the  contracts,
15    only  bids or offers from qualified small businesses shall be
16    considered.
17        (b)  Small business.  "Small business" means  a  business
18    that  is  independently  owned  and  operated and that is not
19    dominant in its field of operation.   The  chief  procurement
20    officer  shall establish a detailed definition by rule, using
21    in  addition  to  the  foregoing  criteria  other   criteria,
22    including  the  number  of employees and the dollar volume of
23    business.  When computing the size status of a bidder, annual
24    sales and receipts of the bidder and all  of  its  affiliates
25    shall  be  included.  The maximum number of employees and the
26    maximum dollar volume that a small business  may  have  under
27    the  rules  promulgated  by the chief procurement officer may
28    vary from industry to industry to  the  extent  necessary  to
29    reflect   differing   characteristics  of  those  industries,
30    subject to the following limitations:
31             (1)  No wholesale business is a  small  business  if
                            -2-                LRB9109300SMdv
 1        its  annual  sales for its most recently completed fiscal
 2        year exceed $7,500,000.
 3             (2)  No retail business or business selling services
 4        is a small business if  its  annual  sales  and  receipts
 5        exceed $1,500,000.
 6             (3)  No  manufacturing  business is a small business
 7        if it employs more than 250 persons.
 8             (4)  No construction business is a small business if
 9        its  annual  sales  and   receipts   exceed   $15,000,000
10        $3,000,000.
11        (c)  Fair proportion.  For the purpose of subsection (a),
12    for State agencies of the executive branch, a fair proportion
13    of  construction contracts shall be no less than 25% nor more
14    than 40% of the annual total contracts for construction.
15        (d)  Withdrawal  of  designation.    A   small   business
16    set-aside  designation  may  be  withdrawn  by the purchasing
17    agency when deemed in the best interests of the State.   Upon
18    withdrawal,  all  bids  or  offers shall be rejected, and the
19    bidders or offerors shall  be  notified  of  the  reason  for
20    rejection.   The contract shall then be awarded in accordance
21    with this Code without  the  designation  of  small  business
22    set-aside.
23        (e)  Small  business  specialist.   The chief procurement
24    officer shall designate a State purchasing officer  who  will
25    be   responsible   for   engaging   an  experienced  contract
26    negotiator to serve as its small business  specialist,  whose
27    duties shall include:
28             (1)  Compiling   and   maintaining  a  comprehensive
29        bidders list of small businesses.  In this  duty,  he  or
30        she  shall  cooperate  with  the  Federal  Small Business
31        Administration in locating potential sources for  various
32        products and services.
33             (2)  Assisting  small  businesses  in complying with
34        the procedures for bidding on State contracts.
                            -3-                LRB9109300SMdv
 1             (3)  Examining requests from State agencies for  the
 2        purchase  of property or services to help determine which
 3        invitations to bid are to be  designated  small  business
 4        set-asides.
 5             (4)  Making recommendations to the chief procurement
 6        officer  for  the  simplification  of  specifications and
 7        terms in order to increase the  opportunities  for  small
 8        business participation.
 9             (5)  Assisting   in   investigations  by  purchasing
10        agencies to determine the responsibility  of  bidders  on
11        small business set-asides.
12        (f)  Small  business annual report.  The State purchasing
13    officer designated under subsection (e) shall annually before
14    December  1  report  in  writing  to  the  General   Assembly
15    concerning  the  awarding  of  contracts to small businesses.
16    The report shall include the total value of  awards  made  in
17    the  preceding  fiscal  year  under  the designation of small
18    business set-aside. The report shall also include  the  total
19    value  of  awards  made  to  businesses  owned by minorities,
20    females, and persons with disabilities,  as  defined  in  the
21    Business Enterprise for Minorities, Females, and Persons with
22    Disabilities  Act,   in  the  preceding fiscal year under the
23    designation of small business set-aside.
24        The requirement for reporting  to  the  General  Assembly
25    shall be satisfied by filing copies of the report as required
26    by Section 3.1 of the General Assembly Organization Act.
27    (Source: P.A. 90-572, eff. date - See Sec. 99-5.)

28        Section  99.  Effective date.  This Act takes effect upon
29    becoming law.

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