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| | 99TH GENERAL ASSEMBLY
State of Illinois
2015 and 2016 SB1666 Introduced 2/20/2015, by Sen. Christine Radogno SYNOPSIS AS INTRODUCED: |
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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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1 | | AN ACT concerning finance.
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2 | | Be it enacted by the People of the State of Illinois,
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3 | | represented in the General Assembly:
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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 6% 3% of the total dollar amount of State contracts, as |
16 | | defined by the Director of Central Management Services, shall |
17 | | be established as a goal with 3% to be awarded to SDVOSB and 3% |
18 | | to be awarded to VOSB. That
portion of a contract under which |
19 | | the contractor subcontracts
with a SDVOSB or VOSB may be |
20 | | counted toward the
goal of this subsection. The Department of |
21 | | Central Management Services shall adopt rules to implement |
22 | | compliance with this subsection by all State agencies. |
23 | | (b) Fiscal year reports. By each September 1, each chief |
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1 | | procurement officer shall report to the Department of Central |
2 | | Management Services on all of the following for the immediately |
3 | | preceding fiscal year, and by each March 1 the Department of |
4 | | Central Management Services shall compile and report that |
5 | | information 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 |
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 Department |
18 | | of Central Management Services' report to the General Assembly |
19 | | regarding continuation, increases, or decreases of the |
20 | | percentage goal. The recommendations shall be based upon the |
21 | | number of businesses that are owned by qualified veterans and |
22 | | on the continued need to encourage and promote businesses owned |
23 | | 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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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 States |
4 | | Army, Navy, Air Force, Marine Corps, Coast Guard, or service in |
5 | | active duty as defined under 38 U.S.C. Section 101. Service in |
6 | | the Merchant Marine that constitutes active duty under Section |
7 | | 401 of federal Public Act 95-202 shall also be considered |
8 | | service in the armed forces for purposes of this Section. |
9 | | "Certification" means a determination made by the Illinois |
10 | | Department of Veterans' Affairs and the Department of Central |
11 | | Management Services that a business entity is a qualified |
12 | | service-disabled veteran-owned small business or a qualified |
13 | | veteran-owned small business for whatever purpose. A SDVOSB or |
14 | | VOSB owned and controlled by females, minorities, or persons |
15 | | with disabilities, as those terms are defined in Section 2 of |
16 | | the Business Enterprise for Minorities, Females, and Persons |
17 | | with Disabilities Act, may also select and designate whether |
18 | | that business is to be certified as a "female-owned business", |
19 | | "minority-owned business", or "business owned by a person with |
20 | | a disability", as defined in Section 2 of the Business |
21 | | Enterprise for Minorities, Females, and Persons with |
22 | | Disabilities Act. |
23 | | "Control" means the exclusive, ultimate, majority, or sole |
24 | | control of the business, including but not limited to capital |
25 | | investment and all other financial matters, property, |
26 | | acquisitions, contract negotiations, legal matters, |
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1 | | officer-director-employee selection and comprehensive hiring, |
2 | | operation responsibilities, cost-control matters, income and |
3 | | dividend matters, financial transactions, and rights of other |
4 | | shareholders or joint partners. Control shall be real, |
5 | | substantial, and continuing, not pro forma. Control shall |
6 | | include the power to direct or cause the direction of the |
7 | | management and policies of the business and to make the |
8 | | day-to-day as well as major decisions in matters of policy, |
9 | | management, and operations. Control shall be exemplified by |
10 | | possessing the requisite knowledge and expertise to run the |
11 | | particular business, and control shall not include simple |
12 | | majority or absentee ownership. |
13 | | "Qualified service-disabled veteran" means a
veteran who |
14 | | has been found to have 10% or more service-connected disability |
15 | | by the United States Department of Veterans Affairs or the |
16 | | United States Department of Defense. |
17 | | "Qualified service-disabled veteran-owned small business" |
18 | | or "SDVOSB" means a small business (i) that is at least 51% |
19 | | owned by one or more qualified service-disabled veterans living |
20 | | in Illinois or, in the case of a corporation, at least 51% of |
21 | | the stock of which is owned by one or more qualified |
22 | | service-disabled veterans living in Illinois; (ii) that has its |
23 | | home office in Illinois; and (iii) for which items (i) and (ii) |
24 | | are factually verified annually by the Department of Central |
25 | | Management Services. |
26 | | "Qualified veteran-owned small business" or "VOSB" means a |
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1 | | small business (i) that is at least 51% owned by one or more |
2 | | qualified veterans living in Illinois or, in the case of a |
3 | | corporation, at least 51% of the stock of which is owned by one |
4 | | or more qualified veterans living in Illinois; (ii) that has |
5 | | its home office in Illinois; and (iii) for which items (i) and |
6 | | (ii) are factually verified annually by the Department of |
7 | | Central Management Services. |
8 | | "Service-connected disability" means a disability incurred |
9 | | in the line of duty in the active military, naval, or air |
10 | | service as described in 38 U.S.C. 101(16). |
11 | | "Small business" means a business that has annual gross |
12 | | sales of less than $75,000,000 as evidenced by the federal |
13 | | income tax return of the business. A firm with gross sales in |
14 | | excess of this cap may apply to the Department of Central |
15 | | Management Services for certification for a particular |
16 | | contract if the firm can demonstrate that the contract would |
17 | | have significant impact on SDVOSB or VOSB as suppliers or |
18 | | subcontractors or in employment of veterans or |
19 | | service-disabled veterans. |
20 | | "State agency" has the same meaning as in Section 2 of the |
21 | | Business Enterprise for Minorities, Females, and Persons with |
22 | | Disabilities Act. |
23 | | "Time of hostilities with a foreign country" means any |
24 | | period of time in the past, present, or future during which a |
25 | | declaration of war by the United States Congress has been or is |
26 | | in effect or during which an emergency condition has been or is |
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1 | | in effect that is recognized by the issuance of a Presidential |
2 | | proclamation or a Presidential executive order and in which the |
3 | | armed forces expeditionary medal or other campaign service |
4 | | medals are awarded according to Presidential executive order. |
5 | | "Veteran" means a person who (i) has been a member of the |
6 | | armed forces of the United States or, while a citizen of the |
7 | | United States, was a member of the armed forces of allies of |
8 | | the United States in time of hostilities with a foreign country |
9 | | and (ii) has served under one or more of the following |
10 | | conditions: (a) the veteran served a total of at least 6 |
11 | | months; (b) the veteran served for the duration of hostilities |
12 | | regardless of the length of the engagement; (c) the veteran was |
13 | | discharged on the basis of hardship; or (d) the veteran was |
14 | | released from active duty because of a service connected |
15 | | disability and was discharged under honorable conditions. |
16 | | (f) Certification program. The Illinois Department of |
17 | | Veterans' Affairs and the Department of Central Management |
18 | | Services shall work together to devise a certification |
19 | | procedure to assure that businesses taking advantage of this |
20 | | Section are legitimately classified as qualified |
21 | | service-disabled veteran-owned small businesses or qualified |
22 | | veteran-owned small businesses.
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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; |
20 | | 98-307, eff. 8-12-13; 98-1076, eff. 1-1-15 .)
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21 | | Section 99. Effective date. This Act takes effect upon |
22 | | becoming law.
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