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Full Text of HB2833
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HB2833 - 104th General Assembly
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104TH GENERAL ASSEMBLY
State of Illinois
2025 and 2026
HB2833
Introduced 2/6/2025, by Rep. Charles Meier
SYNOPSIS AS INTRODUCED:
30 ILCS 500/45-45
Amends the Illinois Procurement Code. In provisions concerning small
business set-asides, provides that the maximum number of employees and the
maximum dollar volume that a small business may have shall mirror the
United States Small Business Administration's Table of Small Business Size
Standards. Effective immediately.
LRB104 09625 HLH 19690 b
A BILL FOR
HB2833
LRB104 09625 HLH 19690 b
1
AN ACT concerning finance.
2
Be it enacted by the People of the State of Illinois,
3
represented in the General Assembly:
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Section 5.
The Illinois Procurement Code is amended by
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changing Section 45-45 as follows:
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(30 ILCS 500/45-45)
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Sec. 45-45.
Small businesses.
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(a) Set-asides. Each chief procurement officer has
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authority to designate as small business set-asides a fair
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proportion of construction, supply, and service contracts for
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award to small businesses in Illinois. Advertisements for bids
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or offers for those contracts shall specify designation as
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small business set-asides. In awarding the contracts, only
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bids or offers from qualified small businesses shall be
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considered.
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(b) Small business. "Small business" means a business that
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is independently owned and operated and that is not dominant
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in its field of operation. The chief procurement officer shall
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establish a detailed definition by rule, using in addition to
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the foregoing criteria other criteria, including the number of
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employees and the dollar volume of business. When computing
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the size status of a potential contractor, annual sales and
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receipts of the potential contractor and all of its affiliates
HB2833
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LRB104 09625 HLH 19690 b
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shall be included. The maximum number of employees and the
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maximum dollar volume that a small business may have under the
3
rules promulgated by the chief procurement officer may vary
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from industry to industry to the extent necessary to reflect
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differing characteristics of those industries
and shall mirror
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the United States Small Business Administration's Table of
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Small Business Size Standards.
, subject to the following
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limitations:
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(1) No wholesale business is a small business if its
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annual sales for its most recently completed fiscal year
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exceed $13,000,000.
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(2) No retail business or business selling services is
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a small business if its annual sales and receipts exceed
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$8,000,000.
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(3) No manufacturing business is a small business if
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it employs more than 250 persons.
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(4) No construction business is a small business if
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its annual sales and receipts exceed $14,000,000.
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(c) Fair proportion. For the purpose of subsection (a),
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for State agencies of the executive branch, a fair proportion
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of construction contracts shall be no less than 25% nor more
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than 40% of the annual total contracts for construction.
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(d) Withdrawal of designation. A small business set-aside
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designation may be withdrawn by the purchasing agency when
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deemed in the best interests of the State. Upon withdrawal,
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all bids or offers shall be rejected, and the bidders or
HB2833
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LRB104 09625 HLH 19690 b
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offerors shall be notified of the reason for rejection. The
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contract shall then be awarded in accordance with this Code
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without the designation of small business set-aside. Each
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chief procurement officer shall make the annual report
5
available on his or her official website. Each chief
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procurement officer shall also issue a press release in
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conjunction with the small business annual report that
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includes an executive summary of the annual report and a link
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to the annual report on the chief procurement officer's
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website.
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(e) Small business specialist. Each chief procurement
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officer shall designate one or more individuals to serve as
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its small business specialist. The small business specialists
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shall collectively work together to accomplish the following
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duties:
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(1) Compiling and maintaining a comprehensive list of
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potential small contractors. In this duty, he or she shall
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cooperate with the Federal Small Business Administration
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in locating potential sources for various products and
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services.
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(2) Assisting small businesses in complying with the
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procedures for bidding on State contracts.
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(3) Examining requests from State agencies for the
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purchase of property or services to help determine which
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invitations to bid are to be designated small business
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set-asides.
HB2833
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LRB104 09625 HLH 19690 b
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(4) Making recommendations to the chief procurement
2
officer for the simplification of specifications and terms
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in order to increase the opportunities for small business
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participation.
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(5) Assisting in investigations by purchasing agencies
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to determine the responsibility of bidders or offerors on
7
small business set-asides.
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(f) Small business annual report. Each small business
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specialist designated under subsection (e) shall annually
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before November 1 report in writing to the General Assembly
11
concerning the awarding of contracts to small businesses. The
12
report shall include the total value of awards made in the
13
preceding fiscal year under the designation of small business
14
set-aside. The report shall also include the total value of
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awards made to businesses owned by minorities, women, and
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persons with disabilities, as defined in the Business
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Enterprise for Minorities, Women, and Persons with
18
Disabilities Act, in the preceding fiscal year under the
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designation of small business set-aside.
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The requirement for reporting to the General Assembly
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shall be satisfied by filing copies of the report as required
22
by Section 3.1 of the General Assembly Organization Act.
23
(Source: P.A. 103-570, eff. 1-1-24.)
24
Section 99.
Effective date.
This Act takes effect upon
25
becoming law.
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