HB1409 EngrossedLRB103 25706 HLH 52055 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 Business Enterprise for Minorities, Women,
5and Persons with Disabilities Act is amended by changing
6Sections 4 and 4f as follows:
 
7    (30 ILCS 575/4)  (from Ch. 127, par. 132.604)
8    (Section scheduled to be repealed on June 30, 2024)
9    Sec. 4. Award of State contracts.
10    (a) Except as provided in subsection (b), not less than
1130% of the total dollar amount of State contracts, as defined
12by the Secretary of the Council and approved by the Council,
13shall be established as an aspirational goal to be awarded to
14businesses owned by minorities, women, and persons with
15disabilities; provided, however, that of the total amount of
16all State contracts awarded to businesses owned by minorities,
17women, and persons with disabilities pursuant to this Section,
18contracts representing at least 16% shall be awarded to
19businesses owned by minorities, contracts representing at
20least 10% shall be awarded to women-owned businesses, and
21contracts representing at least 4% shall be awarded to
22businesses owned by persons with disabilities.
23    (a-5) In addition to the aspirational goals in awarding

 

 

HB1409 Engrossed- 2 -LRB103 25706 HLH 52055 b

1State contracts set under subsection (a), the Commission shall
2by rule further establish targeted efforts to encourage the
3participation of businesses owned by minorities, women, and
4persons with disabilities on State contracts. Such efforts
5shall include, but not be limited to, further concerted
6outreach efforts to businesses owned by minorities, women, and
7persons with disabilities.
8    The above percentage relates to the total dollar amount of
9State contracts during each State fiscal year, calculated by
10examining independently each type of contract for each agency
11or public institutions of higher education which lets such
12contracts. Only that percentage of arrangements which
13represents the participation of businesses owned by
14minorities, women, and persons with disabilities on such
15contracts shall be included. State contracts subject to the
16requirements of this Act shall include the requirement that
17only expenditures to businesses owned by minorities, women,
18and persons with disabilities that perform a commercially
19useful function may be counted toward the goals set forth by
20this Act. Contracts shall include a definition of
21"commercially useful function" that is consistent with 49 CFR
2226.55(c).
23    (b) Not less than 20% of the total dollar amount of State
24construction contracts is established as an aspirational goal
25to be awarded to businesses owned by minorities, women, and
26persons with disabilities; provided that, contracts

 

 

HB1409 Engrossed- 3 -LRB103 25706 HLH 52055 b

1representing at least 11% of the total dollar amount of State
2construction contracts shall be awarded to businesses owned by
3minorities; contracts representing at least 7% of the total
4dollar amount of State construction contracts shall be awarded
5to women-owned businesses; and contracts representing at least
62% of the total dollar amount of State construction contracts
7shall be awarded to businesses owned by persons with
8disabilities.
9    (c) (Blank).
10    (c-5) All goals established under this Section shall be
11contingent upon the results of the most recent disparity study
12conducted by the State.
13    (d) Within one year after April 28, 2009 (the effective
14date of Public Act 96-8), the Department of Central Management
15Services shall conduct a social scientific study that measures
16the impact of discrimination on minority and women business
17development in Illinois. Within 18 months after April 28, 2009
18(the effective date of Public Act 96-8), the Department shall
19issue a report of its findings and any recommendations on
20whether to adjust the goals for minority and women
21participation established in this Act. Copies of this report
22and the social scientific study shall be filed with the
23Governor and the General Assembly.
24    By December 1, 2020, the Department of Central Management
25Services shall conduct a new social scientific study that
26measures the impact of discrimination on minority and women

 

 

HB1409 Engrossed- 4 -LRB103 25706 HLH 52055 b

1business development in Illinois. By June 1, 2022, the
2Department shall issue a report of its findings and any
3recommendations on whether to adjust the goals for minority
4and women participation established in this Act. Copies of
5this report and the social scientific study shall be filed
6with the Governor and the General Assembly. By December 1,
72022, the Commission on Equity and Inclusion Business
8Enterprise Program shall develop a model for social scientific
9disparity study sourcing for local governmental units to adapt
10and implement to address regional disparities in public
11procurement.
12    (e) All State contract solicitations that include Business
13Enterprise Program participation goals shall require bidders
14or offerors to include utilization plans. Utilization plans
15are due at the time of bid or offer submission. Failure to
16complete and include a utilization plan, including
17documentation demonstrating good faith efforts when requesting
18a waiver, shall render the bid or offer non-responsive.
19    Except as permitted under this Act or as otherwise
20mandated by federal regulation, a bidder or offeror whose bid
21or offer is accepted and who included in that bid a completed
22utilization plan but who fails to meet the goals set forth in
23the plan shall be notified of the deficiency by the
24contracting agency or public institution of higher education
25and shall be given a period of 10 calendar days to cure the
26deficiency by contracting with additional subcontractors who

 

 

HB1409 Engrossed- 5 -LRB103 25706 HLH 52055 b

1are certified by the Business Enterprise Program or by
2increasing the work to be performed by previously identified
3vendors certified by the Business Enterprise Program.
4    Deficiencies that may be cured include: (i) scrivener's
5errors, such as transposed numbers; (ii) information submitted
6in an incorrect form or format; (iii) mistakes resulting from
7failure to follow instructions or to identify and adequately
8document good faith efforts taken to comply with the
9utilization plan; or (iv) a proposal to use a firm whose
10Business Enterprise Program certification has lapsed or is not
11yet recognized. Cure is not authorized if the bidder or
12offeror submits a blank utilization plan, a utilization plan
13that shows lack of reasonable effort to complete the form on
14time, or a utilization plan that states the contract will be
15self-performed, by a non-certified vendor, without showing
16good faith efforts or a request for a waiver. All cure activity
17shall address the deficiencies identified by the purchasing
18agency and shall require clear documentation, including that
19of good faith efforts, to address those deficiencies. Any
20increase in cost to a contract for the addition of a
21subcontractor to cure a bid's deficiency shall not affect the
22bid price and shall not be used in the request for an exemption
23under this Act, and, in no case, shall an identified
24subcontractor with a Business Enterprise Program certification
25made under this Act be terminated from a contract without the
26written consent of the State agency or public institution of

 

 

HB1409 Engrossed- 6 -LRB103 25706 HLH 52055 b

1higher education entering into the contract. The purchasing
2agency or public institution of higher education shall make
3the determination whether the cure is adequate.
4    Vendors certified with the Business Enterprise Program at
5the time and date submittals are due and who do not submit a
6utilization plan or have utilization plan deficiencies shall
7have 10 business days to submit a utilization plan or to
8correct the utilization plan deficiencies.
9    (f) (Blank).
10    (g) (Blank).
11    (h) State agencies and public institutions of higher
12education shall notify the Commission on Equity and Inclusion
13of all non-responsive bids or proposals for State contracts.
14    (i) All goals established under this Section apply to
15architectural, engineering, and land surveying contracts under
16the Architectural, Engineering, and Land Surveying
17Qualifications Based Selection Act.
18(Source: P.A. 101-170, eff. 1-1-20; 101-601, eff. 1-1-20;
19101-657, Article 1, Section 1-5, eff. 1-1-22; 101-657, Article
2040, Section 40-130, eff. 1-1-22; 102-29, eff. 6-25-21;
21102-558, eff. 8-20-21; 102-1119, eff. 1-23-23.)
 
22    (30 ILCS 575/4f)
23    (Section scheduled to be repealed on June 30, 2024)
24    Sec. 4f. Award of State contracts.
25    (1) It is hereby declared to be the public policy of the

 

 

HB1409 Engrossed- 7 -LRB103 25706 HLH 52055 b

1State of Illinois to promote and encourage each State agency
2and public institution of higher education to use businesses
3owned by minorities, women, and persons with disabilities in
4the area of goods and services, including, but not limited to,
5insurance services, investment management services,
6information technology services, accounting
7services,architectural and engineering services, and legal
8services. Furthermore, each State agency and public
9institution of higher education shall utilize such firms to
10the greatest extent feasible within the bounds of financial
11and fiduciary prudence, and take affirmative steps to remove
12any barriers to the full participation of such firms in the
13procurement and contracting opportunities afforded.
14        (a) When a State agency or public institution of
15    higher education, other than a community college, awards a
16    contract for insurance services, for each State agency or
17    public institution of higher education, it shall be the
18    aspirational goal to use insurance brokers owned by
19    minorities, women, and persons with disabilities as
20    defined by this Act, for not less than 20% of the total
21    annual premiums or fees; provided that, contracts
22    representing at least 11% of the total annual premiums or
23    fees shall be awarded to businesses owned by minorities;
24    contracts representing at least 7% of the total annual
25    premiums or fees shall be awarded to women-owned
26    businesses; and contracts representing at least 2% of the

 

 

HB1409 Engrossed- 8 -LRB103 25706 HLH 52055 b

1    total annual premiums or fees shall be awarded to
2    businesses owned by persons with disabilities.
3        (b) When a State agency or public institution of
4    higher education, other than a community college, awards a
5    contract for investment services, for each State agency or
6    public institution of higher education, it shall be the
7    aspirational goal to use emerging investment managers
8    owned by minorities, women, and persons with disabilities
9    as defined by this Act, for not less than 20% of the total
10    funds under management; provided that, contracts
11    representing at least 11% of the total funds under
12    management shall be awarded to businesses owned by
13    minorities; contracts representing at least 7% of the
14    total funds under management shall be awarded to
15    women-owned businesses; and contracts representing at
16    least 2% of the total funds under management shall be
17    awarded to businesses owned by persons with disabilities.
18    Furthermore, it is the aspirational goal that not less
19    than 20% of the direct asset managers of the State funds be
20    minorities, women, and persons with disabilities.
21        (c) When a State agency or public institution of
22    higher education, other than a community college, awards
23    contracts for information technology services, accounting
24    services,architectural and engineering services, and legal
25    services, for each State agency and public institution of
26    higher education, it shall be the aspirational goal to use

 

 

HB1409 Engrossed- 9 -LRB103 25706 HLH 52055 b

1    such firms owned by minorities, women, and persons with
2    disabilities as defined by this Act and lawyers who are
3    minorities, women, and persons with disabilities as
4    defined by this Act, for not less than 20% of the total
5    dollar amount of State contracts; provided that, contracts
6    representing at least 11% of the total dollar amount of
7    State contracts shall be awarded to businesses owned by
8    minorities or minority lawyers; contracts representing at
9    least 7% of the total dollar amount of State contracts
10    shall be awarded to women-owned businesses or women who
11    are lawyers; and contracts representing at least 2% of the
12    total dollar amount of State contracts shall be awarded to
13    businesses owned by persons with disabilities or persons
14    with disabilities who are lawyers.
15        (d) When a community college awards a contract for
16    insurance services, investment services, information
17    technology services, accounting services, architectural
18    and engineering services, and legal services, it shall be
19    the aspirational goal of each community college to use
20    businesses owned by minorities, women, and persons with
21    disabilities as defined in this Act for not less than 20%
22    of the total amount spent on contracts for these services
23    collectively; provided that, contracts representing at
24    least 11% of the total amount spent on contracts for these
25    services shall be awarded to businesses owned by
26    minorities; contracts representing at least 7% of the

 

 

HB1409 Engrossed- 10 -LRB103 25706 HLH 52055 b

1    total amount spent on contracts for these services shall
2    be awarded to women-owned businesses; and contracts
3    representing at least 2% of the total amount spent on
4    contracts for these services shall be awarded to
5    businesses owned by persons with disabilities. When a
6    community college awards contracts for investment
7    services, contracts awarded to investment managers who are
8    not emerging investment managers as defined in this Act
9    shall not be considered businesses owned by minorities,
10    women, or persons with disabilities for the purposes of
11    this Section.
12    (2) As used in this Section:
13        "Accounting services" means the measurement,
14    processing and communication of financial information
15    about economic entities including, but is not limited to,
16    financial accounting, management accounting, auditing,
17    cost containment and auditing services, taxation and
18    accounting information systems.
19        "Architectural and engineering services" means
20    professional services of an architectural or engineering
21    nature, or incidental services, that members of the
22    architectural and engineering professions, and individuals
23    in their employ, may logically or justifiably perform,
24    including studies, investigations, surveying and mapping,
25    tests, evaluations, consultations, comprehensive
26    planning, program management, conceptual designs, plans

 

 

HB1409 Engrossed- 11 -LRB103 25706 HLH 52055 b

1    and specifications, value engineering, construction phase
2    services, soils engineering, drawing reviews, preparation
3    of operating and maintenance manuals, and other related
4    services.
5        "Emerging investment manager" means an investment
6    manager or claims consultant having assets under
7    management below $10 billion or otherwise adjudicating
8    claims.
9        "Information technology services" means, but is not
10    limited to, specialized technology-oriented solutions by
11    combining the processes and functions of software,
12    hardware, networks, telecommunications, web designers,
13    cloud developing resellers, and electronics.
14        "Insurance broker" means an insurance brokerage firm,
15    claims administrator, or both, that procures, places all
16    lines of insurance, or administers claims with annual
17    premiums or fees of at least $5,000,000 but not more than
18    $10,000,000.
19        "Legal services" means work performed by a lawyer
20    including, but not limited to, contracts in anticipation
21    of litigation, enforcement actions, or investigations.
22    (3) Each State agency and public institution of higher
23education shall adopt policies that identify its plan and
24implementation procedures for increasing the use of service
25firms owned by minorities, women, and persons with
26disabilities. All plan and implementation procedures for

 

 

HB1409 Engrossed- 12 -LRB103 25706 HLH 52055 b

1increasing the use of service firms owned by minorities,
2women, and persons with disabilities must be submitted to and
3approved by the Commission on Equity and Inclusion on an
4annual basis.
5    (4) Except as provided in subsection (5), the Council
6shall file no later than March 1 of each year an annual report
7to the Governor, the Bureau on Apprenticeship Programs and
8Clean Energy Jobs, and the General Assembly. The report filed
9with the General Assembly shall be filed as required in
10Section 3.1 of the General Assembly Organization Act. This
11report shall: (i) identify the service firms used by each
12State agency and public institution of higher education, (ii)
13identify the actions it has undertaken to increase the use of
14service firms owned by minorities, women, and persons with
15disabilities, including encouraging non-minority-owned firms
16to use other service firms owned by minorities, women, and
17persons with disabilities as subcontractors when the
18opportunities arise, (iii) state any recommendations made by
19the Council to each State agency and public institution of
20higher education to increase participation by the use of
21service firms owned by minorities, women, and persons with
22disabilities, and (iv) include the following:
23        (A) For insurance services: the names of the insurance
24    brokers or claims consultants used, the total of risk
25    managed by each State agency and public institution of
26    higher education by insurance brokers, the total

 

 

HB1409 Engrossed- 13 -LRB103 25706 HLH 52055 b

1    commissions, fees paid, or both, the lines or insurance
2    policies placed, and the amount of premiums placed; and
3    the percentage of the risk managed by insurance brokers,
4    the percentage of total commission, fees paid, or both,
5    the lines or insurance policies placed, and the amount of
6    premiums placed with each by the insurance brokers owned
7    by minorities, women, and persons with disabilities by
8    each State agency and public institution of higher
9    education.
10        (B) For investment management services: the names of
11    the investment managers used, the total funds under
12    management of investment managers; the total commissions,
13    fees paid, or both; the total and percentage of funds
14    under management of emerging investment managers owned by
15    minorities, women, and persons with disabilities,
16    including the total and percentage of total commissions,
17    fees paid, or both by each State agency and public
18    institution of higher education.
19        (C) The names of service firms, the percentage and
20    total dollar amount paid for professional services by
21    category by each State agency and public institution of
22    higher education.
23        (D) The names of service firms, the percentage and
24    total dollar amount paid for services by category to firms
25    owned by minorities, women, and persons with disabilities
26    by each State agency and public institution of higher

 

 

HB1409 Engrossed- 14 -LRB103 25706 HLH 52055 b

1    education.
2        (E) The total number of contracts awarded for services
3    by category and the total number of contracts awarded to
4    firms owned by minorities, women, and persons with
5    disabilities by each State agency and public institution
6    of higher education.
7    (5) For community college districts, the Business
8Enterprise Council shall only report the following information
9for each community college district: (i) the name of the
10community colleges in the district, (ii) the name and contact
11information of a person at each community college appointed to
12be the single point of contact for vendors owned by
13minorities, women, or persons with disabilities, (iii) the
14policy of the community college district concerning certified
15vendors, (iv) the certifications recognized by the community
16college district for determining whether a business is owned
17or controlled by a minority, woman, or person with a
18disability, (v) outreach efforts conducted by the community
19college district to increase the use of certified vendors,
20(vi) the total expenditures by the community college district
21in the prior fiscal year in the divisions of work specified in
22paragraphs (a), (b), and (c) of subsection (1) of this Section
23and the amount paid to certified vendors in those divisions of
24work, and (vii) the total number of contracts entered into for
25the divisions of work specified in paragraphs (a), (b), and
26(c) of subsection (1) of this Section and the total number of

 

 

HB1409 Engrossed- 15 -LRB103 25706 HLH 52055 b

1contracts awarded to certified vendors providing these
2services to the community college district. The Business
3Enterprise Council shall not make any utilization reports
4under this Act for community college districts for Fiscal Year
52015 and Fiscal Year 2016, but shall make the report required
6by this subsection for Fiscal Year 2017 and for each fiscal
7year thereafter. The Business Enterprise Council shall report
8the information in items (i), (ii), (iii), and (iv) of this
9subsection beginning in September of 2016. The Business
10Enterprise Council may collect the data needed to make its
11report from the Illinois Community College Board.
12    (6) The status of the utilization of services shall be
13discussed at each of the regularly scheduled Business
14Enterprise Council meetings. Time shall be allotted for the
15Council to receive, review, and discuss the progress of the
16use of service firms owned by minorities, women, and persons
17with disabilities by each State agency and public institution
18of higher education; and any evidence regarding past or
19present racial, ethnic, or gender-based discrimination which
20directly impacts a State agency or public institution of
21higher education contracting with such firms. If after
22reviewing such evidence the Council finds that there is or has
23been such discrimination against a specific group, race or
24sex, the Council shall establish sheltered markets or adjust
25existing sheltered markets tailored to address the Council's
26specific findings for the divisions of work specified in

 

 

HB1409 Engrossed- 16 -LRB103 25706 HLH 52055 b

1paragraphs (a), (b), and (c) of subsection (1) of this
2Section.
3(Source: P.A. 101-170, eff. 1-1-20; 101-657, Article 5,
4Section 5-10, eff. 7-1-21 (See Section 25 of P.A. 102-29 for
5effective date of P.A. 101-657, Article 5, Section 5-10);
6101-657, Article 40, Section 40-130, eff. 1-1-22; 102-29, eff.
76-25-21; 102-662, eff. 9-15-21.)