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104TH GENERAL ASSEMBLY
State of Illinois
2025 and 2026
SB3287

Introduced 2/3/2026, by Sen. Ram Villivalam

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 19983 HLH 33434 b

A BILL FOR

SB3287
LRB104 19983 HLH 33434 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 45-45 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

SB3287
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LRB104 19983 HLH 33434 b
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
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
.
18

(4) No construction business is a small business if
19

its annual sales and receipts exceed
the small business
20

size standard for its specific industry, as established by
21

the United States Small Business Administration

22

$14,000,000
.
23

(c) Fair proportion. For the purpose of subsection (a),
24
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.

SB3287
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LRB104 19983 HLH 33434 b
1

(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,
4
all bids or offers shall be rejected, and the bidders or
5
offerors shall be notified of the reason for rejection. The
6
contract shall then be awarded in accordance with this Code
7
without the designation of small business set-aside. Each
8
chief procurement officer shall make the annual report
9
available on his or her official website. Each chief
10
procurement officer shall also issue a press release in
11
conjunction with the small business annual report that
12
includes an executive summary of the annual report and a link
13
to the annual report on the chief procurement officer's
14
website.
15

(e) Small business specialist. Each chief procurement
16
officer shall designate one or more individuals to serve as
17
its small business specialist. The small business specialists
18
shall collectively work together to accomplish the following
19
duties:
20

(1) Compiling and maintaining a comprehensive list of
21

potential small contractors. In this duty, he or she shall
22

cooperate with the Federal Small Business Administration
23

in locating potential sources for various products and
24

services.
25

(2) Assisting small businesses in complying with the
26

procedures for bidding on State contracts.

SB3287
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LRB104 19983 HLH 33434 b
1

(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.
5

(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.
9

(5) Assisting in investigations by purchasing agencies
10

to determine the responsibility of bidders or offerors on
11

small business set-asides.
12

(f) Small business annual report. Each small business
13
specialist designated under subsection (e) shall annually
14
before November 1 report in writing to the General Assembly
15
concerning the awarding of contracts to small businesses. The
16
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
19
awards made to businesses owned by minorities, women, and
20
persons with disabilities, as defined in the Business
21
Enterprise for Minorities, Women, and Persons with
22
Disabilities Act, in the preceding fiscal year under the
23
designation of small business set-aside.
24

The requirement for reporting to the General Assembly
25
shall be satisfied by filing copies of the report as required
26
by Section 3.1 of the General Assembly Organization Act.

SB3287
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LRB104 19983 HLH 33434 b
1
(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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