101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020
HB2667

 

Introduced , by Rep. Lamont J. Robinson, Jr.

 

SYNOPSIS AS INTRODUCED:
 
30 ILCS 500/45-85 new

    Amends the Illinois Procurement Code. Creates a small and mid-sized business enterprise initiative program. Provides that the program shall apply to construction contracts and contracts for goods and services by the Department of Transportation and Capital Development Board. Establishes a race and gender-neutral program to increase small and mid-sized business participation in those contracts. Allows the applicable chief procurement officer to set aside certain contracts for exclusive participation of small and mid-sized businesses. Sets forth reporting requirements and penalties for violations of the provisions. Allows the Department of Central Management Services to adopt rules to implement the program. Includes severability provisions.


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A BILL FOR

 

HB2667LRB101 10433 RJF 55539 b

1    AN ACT concerning finance.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Illinois Procurement Code is amended by
5adding Section 45-85 as follows:
 
6    (30 ILCS 500/45-85 new)
7    Sec. 45-85. Small and mid-sized business enterprise
8initiative program.
9    (a) As used in this Section:
10    "Construction contract" means a contract, purchase order,
11or agreement (other than a lease of real property) for the
12construction, repair, or improvement of any building, bridge,
13roadway, sidewalk, alley, railroad, or other structure or
14infrastructure, awarded by State agency, and whose cost is to
15be paid from funds belonging to the State.
16    "Department" means Department of Central Management
17Services.
18    "Local business enterprise" means a business entity
19located within the State, which has the majority of its
20regular, full time work force located within the State.
21    "Program" means the Small and Mid-sized Business
22Initiative program established under this Section.
23    "Small and mid-sized business" means a local business

 

 

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1enterprise that has gross receipts, averaged over its previous
25 fiscal years, or number of employees, per pay period averaged
3over the past 12 months, that do not exceed 1.5 times the size
4standards set forth in 13 CFR Part 121.
5    (b) This Section shall apply to construction contracts and
6contracts for goods and services by the Department of
7Transportation and the Capital Development Board. This Section
8supersedes any inconsistent provision of any law or regulation
9of the State of Illinois to the extent such inconsistency is
10necessary. This Section shall not apply to any contract to the
11extent that it is inconsistent with procedures or standards
12required by any law or regulation of the United States or the
13State of Illinois to the extent the inconsistency is not
14permitted. In connection with any contract funded in whole or
15in part from State or federal sources, State or federal
16standards and regulations shall control to the extent this
17Section is inconsistent with such federal or State standards.
18    (c) Unless otherwise prohibited by any federal, State, or
19local law, the applicable chief procurement officer shall
20establish a race and gender-neutral program to increase small
21and mid-sized business participation in construction and other
22goods and services contracts. The applicable chief procurement
23officer is authorized to identify and offer construction
24contract projects for exclusive participation of small and
25mid-sized businesses. The estimated costs of such projects
26shall not be less than $3,000,000 nor more than $10,000,000.

 

 

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1    (d) To be eligible for the program, a business enterprise
2must:
3        (1) be a small or mid-sized local business enterprise;
4        (2) be in business for at least 2 years at the time the
5    business enterprise claims to be eligible for the program;
6        (3) perform more than 50% of the work on the
7    construction project with its own work force or
8    subcontractors that are small or mid-sized local business
9    enterprises; and
10        (4) be independent, and must not be an affiliate or
11    subsidiary of any other business enterprise. For purposes
12    of this subsection (d), the applicable chief procurement
13    officer shall have the sole authority to determine the
14    independence of a business enterprise.
15    (e) Minority-owned business enterprises and women owned
16business enterprises, as defined in the Business Enterprise for
17Minorities, Females, and Persons with Disabilities Act, shall
18be presumed to be small or mid-sized business enterprises under
19this Section.
20    (f) Except as otherwise provided in subsection (e) of this
21Section, any business enterprise that claims to be a small or
22mid-sized business enterprise shall at the time of the claim,
23and annually thereafter, submit an affidavit, in a form
24prescribed by the chief procurement officer, attesting that it
25meets the small or mid-sized business enterprise eligibility
26requirements in this Section. The applicable chief procurement

 

 

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1officer is authorized to investigate the accuracy of the
2information provided in, and require documents and information
3in support of, the affidavits.
4    (g) Small or mid-sized businesses and business enterprises
5presumed to be small or mid-sized businesses shall notify the
6Department of any change that affects the enterprises' small or
7mid-sized business enterprise status within 5 business days of
8the occurrence of the change.
9    (h) The applicable chief procurement officer is authorized
10to impose reasonable reporting requirements on participants in
11the program. The reporting requirements shall be designed and
12used to evaluate the effectiveness of the program. Any program
13participant shall comply with the reporting requirements as
14required by the applicable chief procurement officer.
15    (i) If the applicable chief procurement officer
16determines, after notice and a hearing before the chief
17procurement officer, that any small or mid-sized business
18enterprise has made fraudulent misrepresentations to the State
19regarding its small or mid-sized business enterprise status, or
20has colluded with another making such fraudulent
21misrepresentations, the small or mid-sized business enterprise
22shall be declared ineligible to contract or subcontract on
23additional contracts. Upon making a finding of ineligibility,
24the applicable chief procurement officer shall determine the
25period of ineligibility imposed, which may include permanent or
26indefinite ineligibility, or ineligibility for a lesser

 

 

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1duration. No small or mid-sized business enterprise shall be
2disqualified for collusive misrepresentations unless all
3parties with which the small or mid-sized business enterprise
4was found to have colluded with are also disqualified. The
5State shall regard as nonresponsive any bid submitted during
6such period of ineligibility which includes a disqualified
7entity as a contractor, subcontractor, or member of a joint
8venture. In the event that a contractor submitting a bid is
9determined by the Department not to have been involved in any
10misrepresentation of the status of a disqualified
11subcontractor included in the bid, the Department may allow the
12contractor to discharge the disqualified subcontractor and, if
13possible, identify and engage a qualified subcontractor as its
14replacement for inclusion in the bid. The consequences provided
15herein shall be in addition to any other criminal or civil
16liability to which such entities may be subject. The Department
17shall inform the appropriate state's attorney of instances of
18fraudulent misrepresentation and collusion.
19    (j) In addition to any other penalty imposed by law, any
20person who knowingly obtains, or knowingly assists another in
21obtaining, a contract with the State by falsely representing
22that the entity, or the entity assisted, is a small or
23mid-sized business enterprise is guilty of a Class C
24misdemeanor.
25    (k) Except as otherwise provided in subsections (i) and
26(j), any person who violates this Section shall be fined not

 

 

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1less than $1,000 nor more than $5,000 for each offense.
2    (l) The Department is authorized to adopt rules for the
3proper administration and enforcement of this Section.
 
4    Section 97. Severability. The provisions of this Act are
5severable under Section 1.31 of the Statute on Statutes.