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104TH GENERAL ASSEMBLY
State of Illinois
2025 and 2026
SB2657

Introduced 5/6/2025, by Sen. Mike Porfirio

SYNOPSIS AS INTRODUCED:

30 ILCS 500/45-57

Amends the Illinois Procurement Code. Provides that the Commission on
Equity and Inclusion shall, by rule, develop registration procedures to
recognize, without additional evidence of eligibility, the certification
of businesses that are certified by units of local government in the State
as service-disabled veteran-owned small businesses or veteran-owned small
businesses if those local government certifications are made in accordance
with requirements and procedures that equal or exceed the requirements and
procedures for State certification. Provides that units of local
government in the State may recognize, without additional evidence of
eligibility, the certification of service-disabled veteran-owned small
businesses and veteran-owned small businesses that are certified as such
by the Commission on Equity and Inclusion. Effective immediately.
LRB104 13448 HLH 25853 b

A BILL FOR

SB2657
LRB104 13448 HLH 25853 b
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 45-57 as follows:

6

(30 ILCS 500/45-57)
7

Sec. 45-57.
Veterans.
8

(a) Set-aside goal. It is the goal of the State to promote
9
and encourage the continued economic development of small
10
businesses owned and controlled by qualified veterans and that
11
qualified service-disabled veteran-owned small businesses
12
(referred to as SDVOSB) and veteran-owned small businesses
13
(referred to as VOSB) participate in the State's procurement
14
process as both prime contractors and subcontractors. Not less
15
than 3% of the total dollar amount of State contracts, as
16
defined by the Commission on Equity and Inclusion, shall be
17
established as a goal to be awarded to SDVOSB and VOSB. That
18
portion of a contract under which the contractor subcontracts
19
with a SDVOSB or VOSB may be counted toward the goal of this
20
subsection. The Commission on Equity and Inclusion shall adopt
21
rules to implement compliance with this subsection by all
22
State agencies.
23

(b) Fiscal year reports. By each November 1, each chief

SB2657
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1
procurement officer shall report to the Commission on Equity
2
and Inclusion on all of the following for the immediately
3
preceding fiscal year, and by each March 1 the Commission on
4
Equity and Inclusion shall compile and report that information
5
to the General Assembly:
6

(1) The total number of VOSB, and the number of
7

SDVOSB, who submitted bids for contracts under this Code.
8

(2) The total number of VOSB, and the number of
9

SDVOSB, who entered into contracts with the State under
10

this Code and the total value of those contracts.
11

(b-5) The Commission on Equity and Inclusion shall submit
12
an annual report to the Governor and the General Assembly that
13
shall include the following:
14

(1) a year-by-year comparison of the number of
15

certifications the State has issued to veteran-owned small
16

businesses and service-disabled veteran-owned small
17

businesses;
18

(2) the obstacles, if any, the Commission on Equity
19

and Inclusion faces when certifying veteran-owned
20

businesses and possible rules or changes to rules to
21

address those issues;
22

(3) a year-by-year comparison of awarded contracts to
23

certified veteran-owned small businesses and
24

service-disabled veteran-owned small businesses; and
25

(4) any other information that the Commission on
26

Equity and Inclusion deems necessary to assist

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1

veteran-owned small businesses and service-disabled
2

veteran-owned small businesses to become certified with
3

the State.
4

The Commission on Equity and Inclusion shall conduct a
5
minimum of 2 outreach events per year to ensure that
6
veteran-owned small businesses and service-disabled
7
veteran-owned small businesses know about the procurement
8
opportunities and certification requirements with the State.
9
The Commission on Equity and Inclusion may receive
10
appropriations for outreach.
11

(c) Yearly review and recommendations. Each year, each
12
chief procurement officer shall review the progress of all
13
State agencies under its jurisdiction in meeting the goal
14
described in subsection (a), with input from statewide
15
veterans' service organizations and from the business
16
community, including businesses owned by qualified veterans,
17
and shall make recommendations to be included in the
18
Commission on Equity and Inclusion's report to the General
19
Assembly regarding continuation, increases, or decreases of
20
the percentage goal. The recommendations shall be based upon
21
the number of businesses that are owned by qualified veterans
22
and on the continued need to encourage and promote businesses
23
owned by qualified veterans.
24

(d) Governor's recommendations. To assist the State in
25
reaching the goal described in subsection (a), the Governor
26
shall recommend to the General Assembly changes in programs to

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LRB104 13448 HLH 25853 b
1
assist businesses owned by qualified veterans.
2

(e) Definitions. As used in this Section:
3

"Armed forces of the United States" means the United
4
States Army, Navy, Air Force, Space Force, Marine Corps, Coast
5
Guard, or service in active duty as defined under 38 U.S.C.
6
Section 101. Service in the Merchant Marine that constitutes
7
active duty under Section 401 of federal Public
Law

Act
95-202
8
shall also be considered service in the armed forces for
9
purposes of this Section.
10

"Certification" means a determination made by the Illinois
11
Department of Veterans' Affairs and the Commission on Equity
12
and Inclusion that a business entity is a qualified
13
service-disabled veteran-owned small business or a qualified
14
veteran-owned small business for whatever purpose. A SDVOSB or
15
VOSB owned and controlled by women, minorities, or persons
16
with disabilities, as those terms are defined in Section 2 of
17
the Business Enterprise for Minorities, Women, and Persons
18
with Disabilities Act, may also select and designate whether
19
that business is to be certified as a "women-owned business",
20
"minority-owned business", or "business owned by a person with
21
a disability", as defined in Section 2 of the Business
22
Enterprise for Minorities, Women, and Persons with
23
Disabilities Act.
24

"Control" means the exclusive, ultimate, majority, or sole
25
control of the business, including but not limited to capital
26
investment and all other financial matters, property,

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acquisitions, contract negotiations, legal matters,
2
officer-director-employee selection and comprehensive hiring,
3
operation responsibilities, cost-control matters, income and
4
dividend matters, financial transactions, and rights of other
5
shareholders or joint partners. Control shall be real,
6
substantial, and continuing, not pro forma. Control shall
7
include the power to direct or cause the direction of the
8
management and policies of the business and to make the
9
day-to-day as well as major decisions in matters of policy,
10
management, and operations. Control shall be exemplified by
11
possessing the requisite knowledge and expertise to run the
12
particular business, and control shall not include simple
13
majority or absentee ownership.
14

"Qualified service-disabled veteran" means a veteran who
15
has been found to have 10% or more service-connected
16
disability by the United States Department of Veterans Affairs
17
or the United States Department of Defense.
18

"Qualified service-disabled veteran-owned small business"
19
or "SDVOSB" means a small business (i) that is at least 51%
20
owned by one or more qualified service-disabled veterans
21
living in Illinois or, in the case of a corporation, at least
22
51% of the stock of which is owned by one or more qualified
23
service-disabled veterans living in Illinois; (ii) that has
24
its home office in Illinois; and (iii) for which items (i) and
25
(ii) are factually verified annually by the Commission on
26
Equity and Inclusion.

SB2657
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1

"Qualified veteran-owned small business" or "VOSB" means a
2
small business (i) that is at least 51% owned by one or more
3
qualified veterans living in Illinois or, in the case of a
4
corporation, at least 51% of the stock of which is owned by one
5
or more qualified veterans living in Illinois; (ii) that has
6
its home office in Illinois; and (iii) for which items (i) and
7
(ii) are factually verified annually by the Commission on
8
Equity and Inclusion.
9

"Service-connected disability" means a disability incurred
10
in the line of duty in the active military, naval, or air
11
service as described in 38 U.S.C. 101(16).
12

"Small business" means a business that has annual gross
13
sales of less than $150,000,000 as evidenced by the federal
14
income tax return of the business. A firm with gross sales in
15
excess of this cap may apply to the Commission on Equity and
16
Inclusion for certification for a particular contract if the
17
firm can demonstrate that the contract would have significant
18
impact on SDVOSB or VOSB as suppliers or subcontractors or in
19
employment of veterans or service-disabled veterans.
20

"State agency" has the meaning provided in Section
21
1-15.100 of this Code.
22

"Time of hostilities with a foreign country" means any
23
period of time in the past, present, or future during which a
24
declaration of war by the United States Congress has been or is
25
in effect or during which an emergency condition has been or is
26
in effect that is recognized by the issuance of a Presidential

SB2657
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LRB104 13448 HLH 25853 b
1
proclamation or a Presidential executive order and in which
2
the armed forces expeditionary medal or other campaign service
3
medals are awarded according to Presidential executive order.
4

"Veteran" means a person who (i) has been a member of the
5
armed forces of the United States or, while a citizen of the
6
United States, was a member of the armed forces of allies of
7
the United States in time of hostilities with a foreign
8
country and (ii) has served under one or more of the following
9
conditions: (a) the veteran served a total of at least 6
10
months; (b) the veteran served for the duration of hostilities
11
regardless of the length of the engagement; (c) the veteran
12
was discharged on the basis of hardship; or (d) the veteran was
13
released from active duty because of a service connected
14
disability and was discharged under honorable conditions.
15

(f) Certification program. The Illinois Department of
16
Veterans' Affairs and the Commission on Equity and Inclusion
17
shall work together to devise a certification procedure to
18
assure that businesses taking advantage of this Section are
19
legitimately classified as qualified service-disabled
20
veteran-owned small businesses or qualified veteran-owned
21
small businesses.
22

The Commission on Equity and Inclusion shall:
23

(1) compile and maintain a comprehensive list of
24

certified veteran-owned small businesses and
25

service-disabled veteran-owned small businesses;
26

(2) assist veteran-owned small businesses and

SB2657
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LRB104 13448 HLH 25853 b
1

service-disabled veteran-owned small businesses in
2

complying with the procedures for bidding on State
3

contracts;
4

(3) provide training for State agencies regarding the
5

goal setting process and compliance with veteran-owned
6

small business and service-disabled veteran-owned small
7

business goals; and
8

(4) implement and maintain an electronic portal on the
9

Commission on Equity and Inclusion's website for the
10

purpose of completing and submitting veteran-owned small
11

business and service-disabled veteran-owned small business
12

certificates.
13

The Commission on Equity and Inclusion shall, by rule,
14
develop registration procedures to recognize, without
15
additional evidence of eligibility, the certification of
16
businesses that are certified by units of local government in
17
the State as service-disabled veteran-owned small businesses
18
or veteran-owned small businesses if those local government
19
certifications are made in accordance with requirements and
20
procedures that equal or exceed the requirements and
21
procedures for State certification set forth in this Section.
22
Any unit of local government in the State may, in its
23
discretion, recognize without additional evidence of
24
eligibility, the certification of service-disabled
25
veteran-owned small businesses and veteran-owned small
26
businesses that are certified by the Commission on Equity and

SB2657
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LRB104 13448 HLH 25853 b
1
Inclusion.

2

The Commission on Equity and Inclusion, in consultation
3
with the Department of Veterans' Affairs, may develop programs
4
and agreements to encourage cities, counties, towns,
5
townships, and other certifying entities to adopt uniform
6
certification procedures and certification recognition
7
programs.
8

(f-5) A business shall be certified by the Commission on
9
Equity and Inclusion as a service-disabled veteran-owned small
10
business or a veteran-owned small business for purposes of
11
this Section if the Commission on Equity and Inclusion
12
determines that the business has been certified as a
13
service-disabled veteran-owned small business or a
14
veteran-owned small business by the Vets First Verification
15
Program of the United States Department of Veterans Affairs,
16
and the business has provided to the Commission on Equity and
17
Inclusion the following:
18

(1) documentation showing certification as a
19

service-disabled veteran-owned small business or a
20

veteran-owned small business by the Vets First
21

Verification Program of the United States Department of
22

Veterans Affairs;
23

(2) proof that the business has its home office in
24

Illinois; and
25

(3) proof that the qualified veterans or qualified
26

service-disabled veterans live in the State of Illinois.

SB2657
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LRB104 13448 HLH 25853 b
1

The policies of the Commission on Equity and Inclusion
2
regarding recognition of the Vets First Verification Program
3
of the United States Department of Veterans Affairs shall be
4
reviewed annually by the Commission on Equity and Inclusion,
5
and recognition of service-disabled veteran-owned small
6
businesses and veteran-owned small businesses certified by the
7
Vets First Verification Program of the United States
8
Department of Veterans Affairs may be discontinued by the
9
Commission on Equity and Inclusion by rule upon a finding that
10
the certification standards of the Vets First Verification
11
Program of the United States Department of Veterans Affairs do
12
not meet the certification requirements established by the
13
Commission on Equity and Inclusion.
14

(g) Penalties.
15

(1) Administrative penalties. The chief procurement
16

officers appointed pursuant to Section 10-20 shall suspend
17

any person who commits a violation of Section 17-10.3 or
18

subsection (d) of Section 33E-6 of the Criminal Code of
19

2012 relating to this Section from bidding on, or
20

participating as a contractor, subcontractor, or supplier
21

in, any State contract or project for a period of not less
22

than 3 years, and, if the person is certified as a
23

service-disabled veteran-owned small business or a
24

veteran-owned small business, then the Commission on
25

Equity and Inclusion shall revoke the business's
26

certification for a period of not less than 3 years. An

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LRB104 13448 HLH 25853 b
1

additional or subsequent violation shall extend the
2

periods of suspension and revocation for a period of not
3

less than 5 years. The suspension and revocation shall
4

apply to the principals of the business and any subsequent
5

business formed or financed by, or affiliated with, those
6

principals.
7

(2) Reports of violations. Each State agency shall
8

report any alleged violation of Section 17-10.3 or
9

subsection (d) of Section 33E-6 of the Criminal Code of
10

2012 relating to this Section to the chief procurement
11

officers appointed pursuant to Section 10-20. The chief
12

procurement officers appointed pursuant to Section 10-20
13

shall subsequently report all such alleged violations to
14

the Attorney General, who shall determine whether to bring
15

a civil action against any person for the violation.
16

(3) List of suspended persons. The chief procurement
17

officers appointed pursuant to Section 10-20 shall monitor
18

the status of all reported violations of Section 17-10.3
19

or subsection (d) of Section 33E-6 of the Criminal Code of
20

1961 or the Criminal Code of 2012 relating to this Section
21

and shall maintain and make available to all State
22

agencies a central listing of all persons that committed
23

violations resulting in suspension.
24

(4) Use of suspended persons. During the period of a
25

person's suspension under paragraph (1) of this
26

subsection, a State agency shall not enter into any

SB2657
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LRB104 13448 HLH 25853 b
1

contract with that person or with any contractor using the
2

services of that person as a subcontractor.
3

(5) Duty to check list. Each State agency shall check
4

the central listing provided by the chief procurement
5

officers appointed pursuant to Section 10-20 under
6

paragraph (3) of this subsection to verify that a person
7

being awarded a contract by that State agency, or to be
8

used as a subcontractor or supplier on a contract being
9

awarded by that State agency, is not under suspension
10

pursuant to paragraph (1) of this subsection.
11

(h) On and after
November 30, 2021 (
the effective date of
12
Public Act 102-671)

this amendatory Act of the 102nd General
13
Assembly
, all powers, duties, rights, and responsibilities of
14
the Department of Central Management Services with respect to
15
the requirements of this Section are transferred to the
16
Commission on Equity and Inclusion.
17

All books, records, papers, documents, property (real and
18
personal), contracts, causes of action, and pending business
19
pertaining to the powers, duties, rights, and responsibilities
20
transferred by
Public Act 102-671

this amendatory Act
from the
21
Department of Central Management Services to the Commission on
22
Equity and Inclusion, including, but not limited to, material
23
in electronic or magnetic format and necessary computer
24
hardware and software, shall be transferred to the Commission
25
on Equity and Inclusion.
26

The powers, duties, rights, and responsibilities

SB2657
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LRB104 13448 HLH 25853 b
1
transferred from the Department of Central Management Services
2
by this amendatory Act shall be vested in and shall be
3
exercised by the Commission on Equity and Inclusion.
4

Whenever reports or notices are now required to be made or
5
given or papers or documents furnished or served by any person
6
to or upon the Department of Central Management Services in
7
connection with any of the powers, duties, rights, and
8
responsibilities transferred by
Public Act 102-671

this
9
amendatory Act
, the same shall be made, given, furnished, or
10
served in the same manner to or upon the Commission on Equity
11
and Inclusion.
12

Public Act 102-671

This amendatory Act of the 102nd
13
General Assembly
does not affect any act done, ratified, or
14
canceled or any right occurring or established or any action
15
or proceeding had or commenced in an administrative, civil, or
16
criminal cause by the Department of Central Management
17
Services before this amendatory Act takes effect; such actions
18
or proceedings may be prosecuted and continued by the
19
Commission on Equity and Inclusion.
20

Any rules of the Department of Central Management Services
21
that relate to its powers, duties, rights, and
22
responsibilities under this Section and are in full force on
23
the effective date of
Public Act 102-671

this amendatory Act
24
of the 102nd General Assembly
shall become the rules of the
25
Commission on Equity and Inclusion.
Public Act 102-671

This
26
amendatory Act
does not affect the legality of any such rules

SB2657
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LRB104 13448 HLH 25853 b
1
in the Illinois Administrative Code. Any proposed rules filed
2
with the Secretary of State by the Department of Central
3
Management Services that are pending in the rulemaking process
4
on
November 30, 2021

the effective date of this amendatory Act

5
and pertain to the powers, duties, rights, and
6
responsibilities transferred, shall be deemed to have been
7
filed by the Commission on Equity and Inclusion. As soon as
8
practicable hereafter, the Commission on Equity and Inclusion
9
shall revise and clarify the rules transferred to it under
10
Public Act 102-671

this amendatory Act
to reflect the
11
reorganization of powers, duties, rights, and responsibilities
12
affected by
Public Act 102-671

this amendatory Act
, using the
13
procedures for recodification of rules available under the
14
Illinois Administrative Procedure Act, except that existing
15
title, part, and section numbering for the affected rules may
16
be retained. The Commission on Equity and Inclusion may
17
propose and adopt under the Illinois Administrative Procedure
18
Act such other rules of the Department of Central Management
19
Services that will now be administered by the Commission on
20
Equity and Inclusion.
21
(Source: P.A. 102-166, eff. 7-26-21; 102-671, eff. 11-30-21;
22
103-570, eff. 1-1-24; 103-746, eff. 1-1-25; revised 11-22-24.)

23

Section 99.
Effective date.
This Act takes effect upon
24
becoming law.

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