Full Text of SB3731 103rd General Assembly
SB3731 103RD GENERAL ASSEMBLY | | | 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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| 1 | | AN ACT concerning finance. | 2 | | Be it enacted by the People of the State of Illinois, | 3 | | represented in the General Assembly: | 4 | | Section 5. The Illinois Procurement Code is amended by | 5 | | changing Section 45-45 and by adding Section 45-46 as follows: | 6 | | (30 ILCS 500/45-45) | 7 | | Sec. 45-45. Small businesses. | 8 | | (a) Set-asides. Each chief procurement officer has | 9 | | authority to designate as small business set-asides a fair | 10 | | proportion of construction, supply, and service contracts for | 11 | | award to small businesses in Illinois. Advertisements for bids | 12 | | or offers for those contracts shall specify designation as | 13 | | small business set-asides. In awarding the contracts, only | 14 | | bids or offers from qualified small businesses shall be | 15 | | considered. | 16 | | (b) Small business. "Small business" means a business that | 17 | | is independently owned and operated and that is not dominant | 18 | | in its field of operation. The chief procurement officer shall | 19 | | establish a detailed definition by rule, using in addition to | 20 | | the foregoing criteria other criteria, including the number of | 21 | | employees and the dollar volume of business. When computing | 22 | | the size status of a potential contractor, annual sales and | 23 | | receipts of the potential contractor and all of its affiliates |
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| 1 | | shall be included. The maximum number of employees and the | 2 | | maximum dollar volume that a small business may have under the | 3 | | rules promulgated by the chief procurement officer may vary | 4 | | from industry to industry to the extent necessary to reflect | 5 | | differing characteristics of those industries, subject to the | 6 | | following limitations: | 7 | | (1) No wholesale business is a small business if its | 8 | | annual sales for its most recently completed fiscal year | 9 | | exceed $13,000,000. | 10 | | (2) No retail business or business selling services is | 11 | | a small business if its annual sales and receipts exceed | 12 | | $8,000,000. | 13 | | (3) No manufacturing business is a small business if | 14 | | it employs more than 250 persons. | 15 | | (4) No construction business is a small business if | 16 | | its annual sales and receipts exceed $45,000,000 | 17 | | $14,000,000 . | 18 | | (c) Fair proportion. For the purpose of subsection (a), | 19 | | for State agencies of the executive branch, a fair proportion | 20 | | of construction contracts shall be no less than 25% nor more | 21 | | than 40% of the annual total contracts for construction. | 22 | | (d) Withdrawal of designation. A small business set-aside | 23 | | designation may be withdrawn by the purchasing agency when | 24 | | deemed in the best interests of the State. Upon withdrawal, | 25 | | all bids or offers shall be rejected, and the bidders or | 26 | | offerors shall be notified of the reason for rejection. The |
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| 1 | | contract shall then be awarded in accordance with this Code | 2 | | without the designation of small business set-aside. Each | 3 | | chief procurement officer shall make the annual report | 4 | | available on his or her official website. Each chief | 5 | | procurement officer shall also issue a press release in | 6 | | conjunction with the small business annual report that | 7 | | includes an executive summary of the annual report and a link | 8 | | to the annual report on the chief procurement officer's | 9 | | website. | 10 | | (e) Small business specialist. Each chief procurement | 11 | | officer shall designate one or more individuals to serve as | 12 | | its small business specialist. The small business specialists | 13 | | shall collectively work together to accomplish the following | 14 | | duties: | 15 | | (1) Compiling and maintaining a comprehensive list of | 16 | | potential small contractors. In this duty, he or she shall | 17 | | cooperate with the Federal Small Business Administration | 18 | | in locating potential sources for various products and | 19 | | services. | 20 | | (2) Assisting small businesses in complying with the | 21 | | procedures for bidding on State contracts. | 22 | | (3) Examining requests from State agencies for the | 23 | | purchase of property or services to help determine which | 24 | | invitations to bid are to be designated small business | 25 | | set-asides. | 26 | | (4) Making recommendations to the chief procurement |
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| 1 | | officer for the simplification of specifications and terms | 2 | | in order to increase the opportunities for small business | 3 | | participation. | 4 | | (5) Assisting in investigations by purchasing agencies | 5 | | to determine the responsibility of bidders or offerors on | 6 | | small business set-asides. | 7 | | (f) Small business annual report. Each small business | 8 | | specialist designated under subsection (e) shall annually | 9 | | before November 1 report in writing to the General Assembly | 10 | | concerning the awarding of contracts to small businesses. The | 11 | | report shall include the total value of awards made in the | 12 | | preceding fiscal year under the designation of small business | 13 | | set-aside. The report shall also include the total value of | 14 | | awards made to businesses owned by minorities, women, and | 15 | | persons with disabilities, as defined in the Business | 16 | | Enterprise for Minorities, Women, and Persons with | 17 | | Disabilities Act, in the preceding fiscal year under the | 18 | | designation of small business set-aside. | 19 | | The requirement for reporting to the General Assembly | 20 | | shall be satisfied by filing copies of the report as required | 21 | | by Section 3.1 of the General Assembly Organization Act. | 22 | | (Source: P.A. 103-570, eff. 1-1-24.) | 23 | | (30 ILCS 500/45-46 new) | 24 | | Sec. 45-46. Mid-Size businesses. | 25 | | (a) As used in the Section, "mid-size business" means a |
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| 1 | | business that is independently owned and operated and that is | 2 | | not dominant in its field of operation. "Mid-size business" | 3 | | includes a construction business with annual sales and | 4 | | receipts in excess of $45,000,000, but not over $67,500,000. | 5 | | (b) The chief procurement officer shall adopt rules to | 6 | | establish additional criteria to designate mid-size businesses | 7 | | for the purposes of the mid-size business set-asides described | 8 | | in subsection (c), including the number of employees and | 9 | | dollar volume of the business. When computing the size status | 10 | | of a potential contractor, annual sales and receipts of the | 11 | | potential contractor and all of its affiliates shall be | 12 | | included. The maximum number of employees and the maximum | 13 | | dollar volume that a mid-size business may have under the | 14 | | rules adopted by the chief procurement officer may vary from | 15 | | industry to industry, to the extent necessary to reflect | 16 | | differing characteristics of those industries, subject to the | 17 | | limitation that no business shall qualify as a mid-size | 18 | | business if its annual sales and receipts exceed $67,500,000. | 19 | | (c) Each chief procurement officer shall designate a fair | 20 | | proportion, as determined by each chief procurement officer, | 21 | | of construction, supply, and service contracts as mid-size | 22 | | business set-asides for award to mid-size businesses in | 23 | | Illinois. Advertisements for bids or offers for these | 24 | | contracts shall specify designation as mid-size business | 25 | | set-asides. In awarding the contracts, only bids or offers | 26 | | from qualified mid-size businesses shall be considered. |
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