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Bill

SB 2272

PROCUREMENT-SOCIAL ENTERPRISE

104th Regular Session Introduced by Laura Fine and 1 co-sponsor

Illinois would give procurement preferences to social enterprises in state contracting to support mission-driven businesses addressing community needs.

Rule 3-9(a) / Re-referred to Assignments
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Bill Summary · SB 2272

Legislative bill overview

SB 2272 would establish procurement preferences or set-asides for social enterprises in Illinois state contracting. Social enterprises are businesses structured to generate revenue while pursuing social or environmental missions. The bill aims to direct state purchasing power toward these organizations as a policy lever for economic and social development.

Why is this important

State procurement represents billions in annual spending, making it a powerful tool to support targeted business sectors. By prioritizing social enterprises, Illinois could strengthen communities, create jobs aligned with social missions, and support businesses addressing issues like poverty, environmental sustainability, or workforce development. However, this approach diverts contracts from traditional bidders and may affect state purchasing efficiency and costs.

Potential points of contention

  • Definition and verification complexity: Determining what qualifies as a "social enterprise" requires clear standards; overly broad definitions could include many businesses, while narrow ones may exclude deserving organizations
  • Cost implications: Preference programs typically result in higher procurement costs; taxpayers and agencies may face budget pressures if social enterprises charge premium prices
  • Competition fairness: Traditional businesses and contractors argue preference programs create unfair competitive advantages and may violate open bidding principles
  • Implementation capacity: State agencies need resources to identify, vet, and monitor social enterprises; administrative burden could strain procurement offices

Compiled from official sources — confirm details with the bill’s official record.

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