99TH GENERAL ASSEMBLY
State of Illinois
2015 and 2016
SB1666

 

Introduced 2/20/2015, by Sen. Christine Radogno

 

SYNOPSIS AS INTRODUCED:
 
30 ILCS 500/45-57

    Amends the Procurement Code. Provides that no less than 6% (now, 3%) of the total dollar amount of State contracts shall be established as a goal to be awarded to qualified service-disabled veteran-owned small businesses and veteran-owned small businesses, with each receiving 3%. Effective immediately.


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FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

SB1666LRB099 10344 SXM 30571 b

1    AN ACT concerning finance.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Illinois Procurement Code is amended by
5changing 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
9and encourage the continued economic development of small
10businesses owned and controlled by qualified veterans and that
11qualified 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
14process as both prime contractors and subcontractors. Not less
15than 6% 3% of the total dollar amount of State contracts, as
16defined by the Director of Central Management Services, shall
17be established as a goal with 3% to be awarded to SDVOSB and 3%
18to be awarded to VOSB. That portion of a contract under which
19the contractor subcontracts with a SDVOSB or VOSB may be
20counted toward the goal of this subsection. The Department of
21Central Management Services shall adopt rules to implement
22compliance with this subsection by all State agencies.
23    (b) Fiscal year reports. By each September 1, each chief

 

 

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1procurement officer shall report to the Department of Central
2Management Services on all of the following for the immediately
3preceding fiscal year, and by each March 1 the Department of
4Central Management Services shall compile and report that
5information to the General Assembly:
6        (1) The total number of VOSB, and the number of SDVOSB,
7    who submitted bids for contracts under this Code.
8        (2) The total number of VOSB, and the number of SDVOSB,
9    who entered into contracts with the State under this Code
10    and the total value of those contracts.
11    (c) Yearly review and recommendations. Each year, each
12chief procurement officer shall review the progress of all
13State agencies under its jurisdiction in meeting the goal
14described in subsection (a), with input from statewide
15veterans' service organizations and from the business
16community, including businesses owned by qualified veterans,
17and shall make recommendations to be included in the Department
18of Central Management Services' report to the General Assembly
19regarding continuation, increases, or decreases of the
20percentage goal. The recommendations shall be based upon the
21number of businesses that are owned by qualified veterans and
22on the continued need to encourage and promote businesses owned
23by qualified veterans.
24    (d) Governor's recommendations. To assist the State in
25reaching the goal described in subsection (a), the Governor
26shall recommend to the General Assembly changes in programs to

 

 

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1assist businesses owned by qualified veterans.
2    (e) Definitions. As used in this Section:
3    "Armed forces of the United States" means the United States
4Army, Navy, Air Force, Marine Corps, Coast Guard, or service in
5active duty as defined under 38 U.S.C. Section 101. Service in
6the Merchant Marine that constitutes active duty under Section
7401 of federal Public Act 95-202 shall also be considered
8service in the armed forces for purposes of this Section.
9    "Certification" means a determination made by the Illinois
10Department of Veterans' Affairs and the Department of Central
11Management Services that a business entity is a qualified
12service-disabled veteran-owned small business or a qualified
13veteran-owned small business for whatever purpose. A SDVOSB or
14VOSB owned and controlled by females, minorities, or persons
15with disabilities, as those terms are defined in Section 2 of
16the Business Enterprise for Minorities, Females, and Persons
17with Disabilities Act, may also select and designate whether
18that business is to be certified as a "female-owned business",
19"minority-owned business", or "business owned by a person with
20a disability", as defined in Section 2 of the Business
21Enterprise for Minorities, Females, and Persons with
22Disabilities Act.
23    "Control" means the exclusive, ultimate, majority, or sole
24control of the business, including but not limited to capital
25investment and all other financial matters, property,
26acquisitions, contract negotiations, legal matters,

 

 

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1officer-director-employee selection and comprehensive hiring,
2operation responsibilities, cost-control matters, income and
3dividend matters, financial transactions, and rights of other
4shareholders or joint partners. Control shall be real,
5substantial, and continuing, not pro forma. Control shall
6include the power to direct or cause the direction of the
7management and policies of the business and to make the
8day-to-day as well as major decisions in matters of policy,
9management, and operations. Control shall be exemplified by
10possessing the requisite knowledge and expertise to run the
11particular business, and control shall not include simple
12majority or absentee ownership.
13    "Qualified service-disabled veteran" means a veteran who
14has been found to have 10% or more service-connected disability
15by the United States Department of Veterans Affairs or the
16United States Department of Defense.
17    "Qualified service-disabled veteran-owned small business"
18or "SDVOSB" means a small business (i) that is at least 51%
19owned by one or more qualified service-disabled veterans living
20in Illinois or, in the case of a corporation, at least 51% of
21the stock of which is owned by one or more qualified
22service-disabled veterans living in Illinois; (ii) that has its
23home office in Illinois; and (iii) for which items (i) and (ii)
24are factually verified annually by the Department of Central
25Management Services.
26    "Qualified veteran-owned small business" or "VOSB" means a

 

 

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1small business (i) that is at least 51% owned by one or more
2qualified veterans living in Illinois or, in the case of a
3corporation, at least 51% of the stock of which is owned by one
4or more qualified veterans living in Illinois; (ii) that has
5its home office in Illinois; and (iii) for which items (i) and
6(ii) are factually verified annually by the Department of
7Central Management Services.
8    "Service-connected disability" means a disability incurred
9in the line of duty in the active military, naval, or air
10service as described in 38 U.S.C. 101(16).
11    "Small business" means a business that has annual gross
12sales of less than $75,000,000 as evidenced by the federal
13income tax return of the business. A firm with gross sales in
14excess of this cap may apply to the Department of Central
15Management Services for certification for a particular
16contract if the firm can demonstrate that the contract would
17have significant impact on SDVOSB or VOSB as suppliers or
18subcontractors or in employment of veterans or
19service-disabled veterans.
20    "State agency" has the same meaning as in Section 2 of the
21Business Enterprise for Minorities, Females, and Persons with
22Disabilities Act.
23    "Time of hostilities with a foreign country" means any
24period of time in the past, present, or future during which a
25declaration of war by the United States Congress has been or is
26in effect or during which an emergency condition has been or is

 

 

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1in effect that is recognized by the issuance of a Presidential
2proclamation or a Presidential executive order and in which the
3armed forces expeditionary medal or other campaign service
4medals are awarded according to Presidential executive order.
5    "Veteran" means a person who (i) has been a member of the
6armed forces of the United States or, while a citizen of the
7United States, was a member of the armed forces of allies of
8the United States in time of hostilities with a foreign country
9and (ii) has served under one or more of the following
10conditions: (a) the veteran served a total of at least 6
11months; (b) the veteran served for the duration of hostilities
12regardless of the length of the engagement; (c) the veteran was
13discharged on the basis of hardship; or (d) the veteran was
14released from active duty because of a service connected
15disability and was discharged under honorable conditions.
16    (f) Certification program. The Illinois Department of
17Veterans' Affairs and the Department of Central Management
18Services shall work together to devise a certification
19procedure to assure that businesses taking advantage of this
20Section are legitimately classified as qualified
21service-disabled veteran-owned small businesses or qualified
22veteran-owned small businesses.
23    (g) Penalties.
24        (1) Administrative penalties. The chief procurement
25    officers appointed pursuant to Section 10-20 shall suspend
26    any person who commits a violation of Section 17-10.3 or

 

 

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1    subsection (d) of Section 33E-6 of the Criminal Code of
2    2012 relating to this Section from bidding on, or
3    participating as a contractor, subcontractor, or supplier
4    in, any State contract or project for a period of not less
5    than 3 years, and, if the person is certified as a
6    service-disabled veteran-owned small business or a
7    veteran-owned small business, then the Department shall
8    revoke the business's certification for a period of not
9    less than 3 years. An additional or subsequent violation
10    shall extend the periods of suspension and revocation for a
11    period of not less than 5 years. The suspension and
12    revocation shall apply to the principals of the business
13    and any subsequent business formed or financed by, or
14    affiliated with, those principals.
15        (2) Reports of violations. Each State agency shall
16    report any alleged violation of Section 17-10.3 or
17    subsection (d) of Section 33E-6 of the Criminal Code of
18    2012 relating to this Section to the chief procurement
19    officers appointed pursuant to Section 10-20. The chief
20    procurement officers appointed pursuant to Section 10-20
21    shall subsequently report all such alleged violations to
22    the Attorney General, who shall determine whether to bring
23    a civil action against any person for the violation.
24        (3) List of suspended persons. The chief procurement
25    officers appointed pursuant to Section 10-20 shall monitor
26    the status of all reported violations of Section 17-10.3 or

 

 

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1    subsection (d) of Section 33E-6 of the Criminal Code of
2    1961 or the Criminal Code of 2012 relating to this Section
3    and shall maintain and make available to all State agencies
4    a central listing of all persons that committed violations
5    resulting in suspension.
6        (4) Use of suspended persons. During the period of a
7    person's suspension under paragraph (1) of this
8    subsection, a State agency shall not enter into any
9    contract with that person or with any contractor using the
10    services of that person as a subcontractor.
11        (5) Duty to check list. Each State agency shall check
12    the central listing provided by the chief procurement
13    officers appointed pursuant to Section 10-20 under
14    paragraph (3) of this subsection to verify that a person
15    being awarded a contract by that State agency, or to be
16    used as a subcontractor or supplier on a contract being
17    awarded by that State agency, is not under suspension
18    pursuant to paragraph (1) of this subsection.
19(Source: P.A. 97-260, eff. 8-5-11; 97-1150, eff. 1-25-13;
2098-307, eff. 8-12-13; 98-1076, eff. 1-1-15.)
 
21    Section 99. Effective date. This Act takes effect upon
22becoming law.