SB2138 94TH GENERAL ASSEMBLY

LRB094 14166 JAM 49073 b

94TH GENERAL ASSEMBLY
State of Illinois
2005 and 2006
SB2138

Introduced 10/19/2005, by Sen. Miguel del Valle - Jeffrey M. Schoenberg

SYNOPSIS AS INTRODUCED:

30 ILCS 500/50-13
30 ILCS 500/50-20
30 ILCS 500/50-37 new

Amends the Illinois Procurement Code. Provides that State officers and employees prohibited from obtaining State contracts may not receive legal, banking, consulting, or other fees related to State government bond issuances. Prohibits waivers from the prohibition. Prohibits State contractors with contracts with an annual aggregate value of more than $25,000 from making political contributions to the executive branch constitutional officers responsible for awarding the contracts. Establishes penalties for violations. Requires that each State contract bid or offer in excess of $10,000 annual value must be accompanied by a disclosure of the bidder's or offeror's political contributions to the executive branch constitutional officer responsible for awarding the contract. Authorizes the State Comptroller to refuse payments under contracts for which those disclosures were not made. Makes other changes. Effective July 1, 2006.

A BILL FOR

AN ACT concerning procurement.

Be it enacted by the People of the State of Illinois, represented in the General Assembly:

Section 5. The Illinois Procurement Code is amended by changing Sections 50-13 and 50-20 and by adding Section 50-37 as follows:

(30 ILCS 500/50-13)

Sec. 50-13. Conflicts of interest.

(a) Prohibition. It is unlawful for any person holding an elective office in this State, holding a seat in the General Assembly, or appointed to or employed in any of the offices or agencies of State government and who receives compensation for such employment in excess of 60% of the salary of the Governor of the State of Illinois, or who is an officer or employee of the Capital Development Board or the Illinois Toll Highway Authority, or who is the spouse or minor child of any such person to have or acquire any contract, or any direct pecuniary interest in any contract therein, whether for stationery, printing, paper, or any services, materials, or supplies, that will be wholly or partially satisfied by the payment of funds appropriated by the General Assembly of the State of Illinois or in any contract of the Capital Development Board or the Illinois Toll Highway Authority.

(b) Interests. It is unlawful for any firm, partnership, association, or corporation, in which any person listed in subsection (a) is entitled to receive (i) more than 7 1/2% of the total distributable income or (ii) an amount in excess of the salary of the Governor, to have or acquire any such contract or direct pecuniary interest therein.

(b-5) Notwithstanding any other provision of law, no person listed in subsection (a) may receive a legal, banking, consulting, or other fee related to the issuance of any bond issued by the State or by any agency or other entity of State government.

(c) Combined interests. It is unlawful for any firm, partnership, association, or corporation, in which any person listed in subsection (a) together with his or her spouse or minor children is entitled to receive (i) more than 15%, in the aggregate, of the total distributable income or (ii) an amount in excess of 2 times the salary of the Governor, to have or acquire any such contract or direct pecuniary interest therein.

(c-5) Appointees and firms. In addition to any provisions of this Code, the interests of certain appointees and their firms are subject to Section 3A-35 of the Illinois Governmental Ethics Act.

(d) Securities. Nothing in this Section invalidates the provisions of any bond or other security previously offered or to be offered for sale or sold by or for the State of Illinois.

(e) Prior interests. This Section does not affect the validity of any contract made between the State and an officer or employee of the State or member of the General Assembly, his or her spouse, minor child, or other immediate family member living in his or her residence or any combination of those persons if that contract was in existence before his or her election or employment as an officer, member, or employee. The contract is voidable, however, if it cannot be completed within 365 days after the officer, member, or employee takes office or is employed.

(f) Exceptions.

(1) Public aid payments. This Section does not apply to payments made for a public aid recipient.

(2) Teaching. This Section does not apply to a contract for personal services as a teacher or school administrator between a member of the General Assembly or his or her spouse, or a State officer or employee or his or her spouse, and any school district, public community college district, the University of Illinois, Southern Illinois University, Illinois State University, Eastern Illinois University, Northern Illinois University, Western Illinois University, Chicago State University, Governor State University, or Northeastern Illinois University.

(3) Ministerial duties. This Section does not apply to a contract for personal services of a wholly ministerial character, including but not limited to services as a laborer, clerk, typist, stenographer, page, bookkeeper, receptionist, or telephone switchboard operator, made by a spouse or minor child of an elective or appointive State officer or employee or of a member of the General Assembly.

(4) Child and family services. This Section does not apply to payments made to a member of the General Assembly, a State officer or employee, his or her spouse or minor child acting as a foster parent, homemaker, advocate, or volunteer for or in behalf of a child or family served by the Department of Children and Family Services.

(5) Licensed professionals. Contracts with licensed professionals, provided they are competitively bid or part of a reimbursement program for specific, customary goods and services through the Department of Children and Family Services, the Department of Human Services, the Department of Public Aid, the Department of Public Health, or the Department on Aging.

(g) Penalty. A person convicted of a violation of this Section is guilty of a business offense and shall be fined not less than $1,000 nor more than $5,000.

(Source: P.A. 93-615, eff. 11-19-03.)

(30 ILCS 500/50-20)

Sec. 50-20. Exemptions. With the approval of the appropriate chief procurement officer involved, the Governor, or an executive ethics board or commission he or she designates, may exempt named individuals from the prohibitions of Section 50-13, except the prohibitions set forth in subsection (b-5) of Section 50-13, when, in his, her, or its judgment, the public interest in having the individual in the service of the State outweighs the public policy evidenced in that Section. An exemption is effective only when it is filed with the Secretary of State and the Comptroller and includes a statement setting forth the name of the individual and all the pertinent facts that would make that Section applicable, setting forth the reason for the exemption, and declaring the individual exempted from that Section. Notice of each exemption shall be published in the Illinois Procurement Bulletin.

(Source: P.A. 90-572, eff. 2-6-98.)

(30 ILCS 500/50-37 new)

Sec. 50-37. Disclosure of political contributions.

(a) All offers from responsive bidders or offerors with an annual value of more than $10,000 shall be accompanied by disclosure of the political contributions of the contractor, bidder, or proposer as provided in this Section. The appropriate chief procurement officer shall ensure that this disclosure is not used in the awarding of the contract or selection of the vendor and further ensure that the disclosure remains confidential until after the contract is awarded or vendor is selected. The disclosure of each successful bidder or offeror shall become part of the publicly available contract or procurement file maintained by the appropriate chief procurement officer and shall also be filed with the Comptroller as part of the filing required pursuant to Section 20-80 of this Code.

(b) Disclosure by the responsive bidders or offerors shall include at least the names and addresses of the contributors and the dollar amounts of any contributions to the officeholder responsible for awarding the contract or to any political committees established to promote the candidacy of such officeholder made within the previous 2 years by the responsive bidders or offerors and any affiliated persons or entities.

(c) As used in this Section:

"Contribution" means contribution as defined in Section 9-1.4 of the Election Code.

"Officeholder" means the Governor, Lieutenant Governor, Attorney General, Secretary of State, Comptroller, or Treasurer. The Governor shall be considered the officeholder responsible for awarding all contracts by all officers and employees of, and vendors and others doing business with, executive branch State agencies under the jurisdiction of the Executive Ethics Commission and not within the jurisdiction of the Attorney General, the Secretary of State, the Comptroller, or the Treasurer.

"Sponsoring entity" means sponsoring entity as defined in Section 9-3 of the Election Code.

"Affiliated person" means (i) any person with any ownership interest or distributive share of the bidding or contracting entity in excess of 5%, (ii) executive employees of the bidding or contracting entity, and (iii) the spouse and minor children of any such persons.

"Affiliated entity" means (i) any subsidiary of the bidding or contracting entity, (ii) any member of the same unitary business group, or (iii) any political committee for which the bidding or contracting entity is the sponsoring entity.

(d) Pursuant to Section 9 of the State Comptroller Act, the Comptroller may refuse to draw a warrant for payment on any voucher based on the obligation of any contract if the disclosures required by this Section are not filed with the Comptroller.

(e) Notwithstanding subsection (b), contributions to any candidate that in the aggregate do not exceed $500 within the previous 2 years do not need to be disclosed.

(f) Any business whose contracts with State agencies, in the aggregate, annually total more than $25,000 is prohibited from making any contributions to the officeholder responsible for awarding the contracts or to any political committees established to promote the candidacy of that officeholder. This prohibition shall be effective for the current term of office of the incumbent awarding the contracts or for a period of 2 years following the conclusion of the contracts, whichever is longer. This prohibition shall also apply to contributions from any affiliated persons or entities.

(g) All contracts between State agencies and a business that violates subsection (f) shall be voidable under Section 50-60.

If a business violates subsection (f) 3 or more times within a 36-month period, then all contracts between State agencies and that business shall be void, and that business shall not bid or respond to any invitation to bid or request for proposals from any State agency or otherwise enter into any contract with any State agency for 3 years from the date of the last violation.

A notice of each violation and the penalty imposed shall be published in both the Procurement Bulletin and the Illinois Register.

Section 99. Effective date. This Act takes effect July 1, 2006.