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Full Text of HB5283
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HB5283 - 104th General Assembly
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104TH GENERAL ASSEMBLY
State of Illinois
2025 and 2026
HB5283
Introduced 2/10/2026, by Rep. Justin Slaughter
SYNOPSIS AS INTRODUCED:
30 ILCS 500/45-45
Amends the Illinois Procurement Code. In provisions concerning small
business set-asides, provides that (i) no manufacturing business is a
small business if it employs more than the number of persons set forth in
the small business size standard for its specific industry, as established
by the United States Small Business Administration (currently, 250
persons); and (ii) no construction business is a small business if its
annual sales and receipts exceed the small business size standard for its
specific industry, as established by the United States Small Business
Administration (currently, $14,000,000). Effective immediately.
LRB104 19985 HLH 33436 b
A BILL FOR
HB5283
LRB104 19985 HLH 33436 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
HB5283
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LRB104 19985 HLH 33436 b
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shall be included. The maximum number of employees and the
2
maximum dollar volume that a small business may have under the
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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, subject to the
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following 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.
13
(3) No manufacturing business is a small business if
14
it employs more than
the number of persons set forth in the
15
small business size standard for its specific industry, as
16
established by the United States Small Business
17
Administration
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
the small business
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size standard for its specific industry, as established by
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the United States Small Business Administration
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$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
25
of construction contracts shall be no less than 25% nor more
26
than 40% of the annual total contracts for construction.
HB5283
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LRB104 19985 HLH 33436 b
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(d) Withdrawal of designation. A small business set-aside
2
designation may be withdrawn by the purchasing agency when
3
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
5
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
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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
26
procedures for bidding on State contracts.
HB5283
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LRB104 19985 HLH 33436 b
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(3) Examining requests from State agencies for the
2
purchase of property or services to help determine which
3
invitations to bid are to be designated small business
4
set-asides.
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(4) Making recommendations to the chief procurement
6
officer for the simplification of specifications and terms
7
in order to increase the opportunities for small business
8
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
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small business set-asides.
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(f) Small business annual report. Each small business
13
specialist designated under subsection (e) shall annually
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before November 1 report in writing to the General Assembly
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concerning the awarding of contracts to small businesses. The
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report shall include the total value of awards made in the
17
preceding fiscal year under the designation of small business
18
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
22
Disabilities Act, in the preceding fiscal year under the
23
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
26
by Section 3.1 of the General Assembly Organization Act.
HB5283
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LRB104 19985 HLH 33436 b
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(Source: P.A. 103-570, eff. 1-1-24.)
2
Section 99.
Effective date.
This Act takes effect upon
3
becoming law.
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