Sen. Jeffrey M. Schoenberg
Filed: 4/4/2005
 
 

 




 

 		












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AMENDMENT TO SENATE BILL 1966 




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    AMENDMENT NO. ______. Amend Senate Bill 1966 on page 3, in 
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line 15 by inserting after "50-20" the following:

 
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"and by adding Section 50-21"; and
 
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on page 6, by inserting after line 14 the following:
 
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    "Section 5. The Illinois Procurement Code is amended  by 
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adding Section 50-21 as follows:
 
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    (30 ILCS 500/50-21  new)
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    Sec. 50-21. Bond issuances.
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    (a) A State agency shall not enter into a contract with 
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respect to the issuance of bonds or other securities by the 
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State or a State agency with any entity that uses an 
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independent consultant.
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    As used in this subsection, "independent consultant" means 
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a person used by the entity to obtain or retain securities 
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business through direct or indirect communication by the person 
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with a State official or employee on behalf of the entity when 
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the communication is undertaken by the person in exchange for 
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or with the understanding of receiving payment from the entity 
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or another person.  "Independent consultant" does not include 
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(i) a finance professional employed by the entity or (ii) a 
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person whose sole basis of compensation from the entity is the 
 


 






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actual provision of legal, accounting, or engineering advice, 
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services, or assistance in connection with the securities 
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business that the entity seeks to obtain or retain.
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    (b) Each contract entered into by a State agency with 
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respect to the issuance of bonds or other securities by the 
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State or a State agency shall include a certification by any 
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contracting party subject to the Municipal Securities 
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Rulemaking Board's Rule G-38, or a successor rule, that the 
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contracting entity is and shall remain for the duration of the 
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contract in compliance with the Rule's requirements for 
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reporting political contributions.  Violation of the 
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certification makes the contract voidable by the State and 
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shall bar the awarding of a State agency contract with respect 
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to the issuance of bonds or other securities to the violator 
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for a period of 10 years after the determination of the 
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violation.
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    (c) Any entity convicted of violating the Municipal 
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Securities Rulemaking Board's Rule G-37 or Rule G-38, or any 
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successor rules, with respect to the prohibitions of those 
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rules against obtaining or retaining municipal securities 
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business and the making of political contributions or payments 
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is permanently barred from participating in any State agency 
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contract with respect to the issuance of bonds or other 
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securities.


 
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    Section 99. Effective date. This Act takes effect upon 
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becoming law.".