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| | 101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020 SB0122 Introduced 1/29/2019, by Sen. Michael E. Hastings SYNOPSIS AS INTRODUCED: |
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Amends the Illinois Procurement Code. Allows an authorized official of Cook County under the county's veteran-owned business program to certify to the Department of Veterans' Affairs that Cook County's certification standards do not conflict with the requirements of the Code concerning veteran-owned businesses. Requires that, upon certification, the Department of Central Management Services will notify Cook County businesses of certain information concerning the notification and ensure that parties who obtain certification under Cook County's program are immediately registered with the State as certified and qualified businesses under the Code. Requires the Department to contribute money to support the program under available appropriations. Effective immediately.
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| | A BILL FOR |
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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 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 to be awarded to SDVOSB and VOSB. That
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18 | | portion of a contract under which the contractor subcontracts
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19 | | with a SDVOSB or VOSB may be counted toward the
goal of this |
20 | | subsection. The Department of Central Management Services |
21 | | shall adopt rules to implement compliance with this subsection |
22 | | by all State agencies. |
23 | | (b) Fiscal year reports. By each November 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 : (1) a determination made by the |
10 | | Illinois Department of Veterans' Affairs and the Department of |
11 | | Central Management Services that a business entity is a |
12 | | qualified service-disabled veteran-owned small business or a |
13 | | qualified veteran-owned small business for whatever purpose ; |
14 | | or (2) a certification made by an authorized official of Cook |
15 | | County under that county's veteran-owned business program or |
16 | | programs at least 60 days after the effective date of this |
17 | | amendatory Act of the 101st General Assembly, provided that, no |
18 | | less than 30 days after the effective date of this amendatory |
19 | | Act of the 101st General Assembly, and on an annual basis |
20 | | thereafter, that county official certifies to the Department of |
21 | | Veterans' Affairs that Cook County's certification standards |
22 | | do not conflict with the requirements of this Code, and further |
23 | | provided that upon issuing the certification, the county |
24 | | official immediately or as soon as practicable notifies the |
25 | | Department of Central Management Services of the fact and |
26 | | nature of the certification . A SDVOSB or VOSB owned and |
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1 | | controlled by women, minorities, or persons with disabilities, |
2 | | as those terms are defined in Section 2 of the Business |
3 | | Enterprise for Minorities, Women, and Persons with |
4 | | Disabilities Act, may also select and designate whether that |
5 | | business is to be certified as a "women-owned business", |
6 | | "minority-owned business", or "business owned by a person with |
7 | | a disability", as defined in Section 2 of the Business |
8 | | Enterprise for Minorities, Women, and Persons with |
9 | | Disabilities Act. |
10 | | "Control" means the exclusive, ultimate, majority, or sole |
11 | | control of the business, including but not limited to capital |
12 | | investment and all other financial matters, property, |
13 | | acquisitions, contract negotiations, legal matters, |
14 | | officer-director-employee selection and comprehensive hiring, |
15 | | operation responsibilities, cost-control matters, income and |
16 | | dividend matters, financial transactions, and rights of other |
17 | | shareholders or joint partners. Control shall be real, |
18 | | substantial, and continuing, not pro forma. Control shall |
19 | | include the power to direct or cause the direction of the |
20 | | management and policies of the business and to make the |
21 | | day-to-day as well as major decisions in matters of policy, |
22 | | management, and operations. Control shall be exemplified by |
23 | | possessing the requisite knowledge and expertise to run the |
24 | | particular business, and control shall not include simple |
25 | | majority or absentee ownership. |
26 | | "Qualified service-disabled veteran" means a
veteran who |
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1 | | has been found to have 10% or more service-connected disability |
2 | | by the United States Department of Veterans Affairs or the |
3 | | United States Department of Defense. |
4 | | "Qualified service-disabled veteran-owned small business" |
5 | | or "SDVOSB" means a small business (i) that is at least 51% |
6 | | owned by one or more qualified service-disabled veterans living |
7 | | in Illinois or, in the case of a corporation, at least 51% of |
8 | | the stock of which is owned by one or more qualified |
9 | | service-disabled veterans living in Illinois; (ii) that has its |
10 | | home office in Illinois; and (iii) for which items (i) and (ii) |
11 | | are factually verified annually by the Department of Central |
12 | | Management Services. |
13 | | "Qualified veteran-owned small business" or "VOSB" means a |
14 | | small business (i) that is at least 51% owned by one or more |
15 | | qualified veterans living in Illinois or, in the case of a |
16 | | corporation, at least 51% of the stock of which is owned by one |
17 | | or more qualified veterans living in Illinois; (ii) that has |
18 | | its home office in Illinois; and (iii) for which items (i) and |
19 | | (ii) are factually verified annually by the Department of |
20 | | Central Management Services. |
21 | | "Service-connected disability" means a disability incurred |
22 | | in the line of duty in the active military, naval, or air |
23 | | service as described in 38 U.S.C. 101(16). |
24 | | "Small business" means a business that has annual gross |
25 | | sales of less than $75,000,000 as evidenced by the federal |
26 | | income tax return of the business. A firm with gross sales in |
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1 | | excess of this cap may apply to the Department of Central |
2 | | Management Services for certification for a particular |
3 | | contract if the firm can demonstrate that the contract would |
4 | | have significant impact on SDVOSB or VOSB as suppliers or |
5 | | subcontractors or in employment of veterans or |
6 | | service-disabled veterans. |
7 | | "State agency" has the meaning provided in Section 1-15.100 |
8 | | of this Code. |
9 | | "Time of hostilities with a foreign country" means any |
10 | | period of time in the past, present, or future during which a |
11 | | declaration of war by the United States Congress has been or is |
12 | | in effect or during which an emergency condition has been or is |
13 | | in effect that is recognized by the issuance of a Presidential |
14 | | proclamation or a Presidential executive order and in which the |
15 | | armed forces expeditionary medal or other campaign service |
16 | | medals are awarded according to Presidential executive order. |
17 | | "Veteran" means a person who (i) has been a member of the |
18 | | armed forces of the United States or, while a citizen of the |
19 | | United States, was a member of the armed forces of allies of |
20 | | the United States in time of hostilities with a foreign country |
21 | | and (ii) has served under one or more of the following |
22 | | conditions: (a) the veteran served a total of at least 6 |
23 | | months; (b) the veteran served for the duration of hostilities |
24 | | regardless of the length of the engagement; (c) the veteran was |
25 | | discharged on the basis of hardship; or (d) the veteran was |
26 | | released from active duty because of a service connected |
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1 | | disability and was discharged under honorable conditions. |
2 | | (f) Certification program. The Illinois Department of |
3 | | Veterans' Affairs and the Department of Central Management |
4 | | Services shall work together to devise a certification |
5 | | procedure to assure that businesses taking advantage of this |
6 | | Section are legitimately classified as qualified |
7 | | service-disabled veteran-owned small businesses or qualified |
8 | | veteran-owned small businesses.
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9 | | (f-5) Cook County certification program. |
10 | | (1) If, no less than 30 days after the effective date |
11 | | of this amendatory Act of the 101st General Assembly and on |
12 | | an annual basis thereafter, an authorized Cook County |
13 | | official certifies to the Department of Veterans' Affairs |
14 | | that Cook County's certification standards relative to its |
15 | | veteran-owned business program or programs continue to |
16 | | meet the requirements of this Act, the Department of |
17 | | Central Management Services shall, through its website and |
18 | | other online and print materials, with an authorized |
19 | | official of Cook County: (i) notify parties seeking |
20 | | certification under this Code that, if they are based in |
21 | | Cook County, they may seek and obtain certification under |
22 | | this Act by seeking and obtaining certification under the |
23 | | county's veteran-owned business program or programs; (ii) |
24 | | provide the parties with a website that immediately gives |
25 | | them access to Cook County's program or programs; and (iii) |
26 | | ensure that parties who obtain certification under Cook |
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1 | | County's program or program are immediately registered |
2 | | with the State as certified and qualified businesses under |
3 | | this Code. |
4 | | (2) Within available appropriations, the Department of |
5 | | Central Management Services shall, by way of an annual |
6 | | intergovernmental agreement, contribute a sum as is agreed |
7 | | to by the parties to support efforts on the part of Cook |
8 | | County to certify eligible veteran business enterprises on |
9 | | behalf of the State and the county. Those efforts shall |
10 | | include: (i) providing ongoing outreach through online |
11 | | marketing and publicity; (ii) developing, organizing, and |
12 | | hosting outreach events each year in the county; and (iii) |
13 | | providing regular technical support. |
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 Department shall |
25 | | revoke the business's certification for a period of not |
26 | | less than 3 years. An additional or subsequent violation |
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1 | | shall extend the periods of suspension and revocation for a |
2 | | period of not less than 5 years. The suspension and |
3 | | revocation shall apply to the principals of the business |
4 | | and any subsequent business formed or financed by, or |
5 | | affiliated with, those principals. |
6 | | (2) Reports of violations. Each State agency shall |
7 | | report any alleged violation of Section 17-10.3 or |
8 | | subsection (d) of Section 33E-6 of the Criminal Code of |
9 | | 2012 relating to this Section to the chief procurement |
10 | | officers appointed pursuant to Section 10-20. The chief |
11 | | procurement officers appointed pursuant to Section 10-20 |
12 | | shall subsequently report all such alleged violations to |
13 | | the Attorney General, who shall determine whether to bring |
14 | | a civil action against any person for the violation. |
15 | | (3) List of suspended persons. The chief procurement |
16 | | officers appointed pursuant to Section 10-20 shall monitor |
17 | | the status of all reported violations of Section 17-10.3 or |
18 | | subsection (d) of Section 33E-6 of the Criminal Code of |
19 | | 1961 or the Criminal Code of 2012 relating to this Section |
20 | | and shall maintain and make available to all State agencies |
21 | | a central listing of all persons that committed violations |
22 | | resulting in suspension. |
23 | | (4) Use of suspended persons. During the period of a |
24 | | person's suspension under paragraph (1) of this |
25 | | subsection, a State agency shall not enter into any |
26 | | contract with that person or with any contractor using the |
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1 | | services of that person as a subcontractor. |
2 | | (5) Duty to check list. Each State agency shall check |
3 | | the central listing provided by the chief procurement |
4 | | officers appointed pursuant to Section 10-20 under |
5 | | paragraph (3) of this subsection to verify that a person |
6 | | being awarded a contract by that State agency, or to be |
7 | | used as a subcontractor or supplier on a contract being |
8 | | awarded by that State agency, is not under suspension |
9 | | pursuant to paragraph (1) of this subsection. |
10 | | (Source: P.A. 100-43, eff. 8-9-17; 100-391, eff. 8-25-17; |
11 | | 100-863, eff. 8-14-18.)
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12 | | Section 99. Effective date. This Act takes effect upon |
13 | | becoming law.
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