SB3731 103RD GENERAL ASSEMBLY

LRB103 38346 MXP 68481 b

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.

A BILL FOR

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 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 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 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 business that is independently owned and operated and that is not dominant in its field of operation. "Mid-size business" includes a construction business with annual sales and receipts in excess of $45,000,000, but not over $67,500,000.

(b) The chief procurement officer shall adopt rules to establish additional criteria to designate mid-size businesses for the purposes of the mid-size business set-asides described in subsection (c), including the number of employees and dollar volume of the business. When computing the size status of a potential contractor, annual sales and receipts of the potential contractor and all of its affiliates shall be included. The maximum number of employees and the maximum dollar volume that a mid-size business may have under the rules adopted 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 limitation that no business shall qualify as a mid-size business if its annual sales and receipts exceed $67,500,000.

(c) Each chief procurement officer shall designate a fair proportion, as determined by each chief procurement officer, of construction, supply, and service contracts as mid-size business set-asides for award to mid-size businesses in Illinois. Advertisements for bids or offers for these contracts shall specify designation as mid-size business set-asides. In awarding the contracts, only bids or offers from qualified mid-size businesses shall be considered.