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1 | AN ACT concerning State government.
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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 Election Code is amended by adding Section | ||||||
5 | 9-35 as follows: | ||||||
6 | (10 ILCS 5/9-35 new)
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7 | Sec. 9-35. Registration of business entities. | ||||||
8 | (a) This Section governs the procedures for the | ||||||
9 | registration required under Section 20-160 of the Illinois | ||||||
10 | Procurement Code. | ||||||
11 | For the purposes of this Section, the terms "officeholder", | ||||||
12 | "State contract", "business entity", "State agency", | ||||||
13 | "affiliated entity", and "affiliated person" have the meanings | ||||||
14 | ascribed to those terms in Section 50-37 of the Illinois | ||||||
15 | Procurement Code. | ||||||
16 | (b) Registration under Section 20-160 of the Illinois | ||||||
17 | Procurement Code, and any changes to that registration, must be | ||||||
18 | made electronically. The State Board of Elections by rule shall | ||||||
19 | provide for electronic registration, which must contain | ||||||
20 | substantially the following: | ||||||
21 | (1) The name and address of the business entity. | ||||||
22 | (2) The name and address of any affiliated entity of | ||||||
23 | the business entity, including a description of the |
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1 | affiliation. | ||||||
2 | (3) The name and address of any affiliated person of | ||||||
3 | the business entity, including a description of the | ||||||
4 | affiliation. | ||||||
5 | (c) The Board shall provide a certificate of registration | ||||||
6 | to the business entity. The certificate shall be electronic and | ||||||
7 | accessible to the business entity through the State Board of | ||||||
8 | Elections' website and protected by a password. | ||||||
9 | (d) Any business entity required to register under Section | ||||||
10 | 20-160 of the Illinois Procurement Code shall provide a copy of | ||||||
11 | the registration certificate, by first class mail or hand | ||||||
12 | delivery within 10 days after registration, to each affiliated | ||||||
13 | entity or affiliated person whose identity is required to be | ||||||
14 | disclosed. Failure to provide notice to an affiliated entity or | ||||||
15 | affiliated person is a business offense for which the business | ||||||
16 | entity is subject to a fine not to exceed $1,001. | ||||||
17 | (e) In addition to any penalty under Section 20-160 of the | ||||||
18 | Illinois Procurement Code, intentional, willful, or material | ||||||
19 | failure to disclose information required for registration is | ||||||
20 | subject to a civil penalty imposed by the State Board of | ||||||
21 | Elections. The State Board shall impose a civil penalty of | ||||||
22 | $1,000 per business day for failure to update a registration. | ||||||
23 | (f) Any business entity required to register under Section | ||||||
24 | 20-160 of the Illinois Procurement Code shall notify any | ||||||
25 | political committee to which it makes a contribution, at the | ||||||
26 | time of the contribution, that the business entity is |
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1 | registered with the State Board of Elections under Section | ||||||
2 | 20-160 of the Illinois Procurement Code. Any affiliated entity | ||||||
3 | or affiliated person of a business entity required to register | ||||||
4 | under Section 20-160 of the Illinois Procurement Code shall | ||||||
5 | notify any political committee to which it makes a contribution | ||||||
6 | that it is affiliated with a business entity registered with | ||||||
7 | the State Board of Elections under Section 20-160 of the | ||||||
8 | Illinois Procurement Code. | ||||||
9 | (g) The State Board of Elections on its official website | ||||||
10 | shall have a searchable database containing (i) all information | ||||||
11 | required to be submitted to the Board under Section 20-160 of | ||||||
12 | the Illinois Procurement Code and (ii) all reports filed under | ||||||
13 | this Article with the State Board of Elections by all political | ||||||
14 | committees. For the purposes of databases maintained by the | ||||||
15 | State Board of Elections, "searchable" means able to search by | ||||||
16 | "political committee", as defined in this Article, and by | ||||||
17 | "officeholder", "State agency", "business entity", "affiliated | ||||||
18 | entity", and "affiliated person". The Board shall not place the | ||||||
19 | name of a minor child on the website. However, the Board shall | ||||||
20 | provide a link to all contributions made by anyone reporting | ||||||
21 | the same residential address as any affiliated person. In | ||||||
22 | addition, the State Board of Elections on its official website | ||||||
23 | shall provide an electronic connection to any searchable | ||||||
24 | database of State contracts maintained by the Comptroller, | ||||||
25 | searchable by business entity. | ||||||
26 | (h) The State Board of Elections shall have rulemaking |
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1 | authority to implement this Section. | ||||||
2 | Section 10. The Illinois Procurement Code is amended by | ||||||
3 | adding Sections 20-160 and 50-37 as follows: | ||||||
4 | (30 ILCS 500/20-160 new)
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5 | Sec. 20-160. Business entities; certification; | ||||||
6 | registration with the State Board of Elections. | ||||||
7 | (a) For purposes of this Section, the terms "business | ||||||
8 | entity", "contract", "State contract", "contract with a State | ||||||
9 | agency", "State agency", "affiliated entity", and "affiliated | ||||||
10 | person" have the meanings ascribed to those terms in Section | ||||||
11 | 50-37. | ||||||
12 | (b) Every bid submitted to and every contract executed by | ||||||
13 | the State on or after the effective date of this amendatory Act | ||||||
14 | of the 95th General Assembly shall contain (1) a certification | ||||||
15 | by the bidder or contractor that either (i) the bidder or | ||||||
16 | contractor is not required to register as a business entity | ||||||
17 | with the State Board of Elections pursuant to this Section or | ||||||
18 | (ii) the bidder or contractor has registered as a business | ||||||
19 | entity with the State Board of Elections and acknowledges a | ||||||
20 | continuing duty to update the registration and (2) a statement | ||||||
21 | that the contract is voidable under Section 50-60 for the | ||||||
22 | bidder's or contractor's failure to comply with this Section. | ||||||
23 | (c) Within 30 days after the effective date of this | ||||||
24 | amendatory Act of the 95th General Assembly, each business |
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1 | entity (i) whose aggregate bids and proposals on State | ||||||
2 | contracts annually total more than $50,000, (ii) whose | ||||||
3 | aggregate bids and proposals on State contracts combined with | ||||||
4 | the business entity's aggregate annual total value of State | ||||||
5 | contracts exceed $50,000, or (iii) whose contracts with State | ||||||
6 | agencies, in the aggregate, annually total more than $50,000 | ||||||
7 | shall register with the State Board of Elections in accordance | ||||||
8 | with Section 9-35 of the Election Code. A business entity | ||||||
9 | required to register under this subsection shall submit a copy | ||||||
10 | of the certificate of registration to the applicable chief | ||||||
11 | procurement officer within 90 days after the effective date of | ||||||
12 | this amendatory Act of the 95th General Assembly. A business | ||||||
13 | entity required to register under this subsection due to item | ||||||
14 | (i) or (ii) has a continuing duty to ensure that the | ||||||
15 | registration is accurate during the period beginning on the | ||||||
16 | date of registration and ending on the day after the date the | ||||||
17 | contract is awarded; any change in information must be reported | ||||||
18 | to the State Board of Elections within 2 business days | ||||||
19 | following such change. A business entity required to register | ||||||
20 | under this subsection due to item (iii) has a continuing duty | ||||||
21 | to ensure that the registration is accurate in accordance with | ||||||
22 | subsection (f). | ||||||
23 | (d) Any business entity, not required under subsection (c) | ||||||
24 | to register within 30 days after the effective date of this | ||||||
25 | amendatory Act of the 95th General Assembly, whose aggregate | ||||||
26 | bids and proposals on State contracts annually total more than |
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1 | $50,000, or whose aggregate bids and proposals on State | ||||||
2 | contracts combined with the business entity's aggregate annual | ||||||
3 | total value of State contracts exceed $50,000, shall register | ||||||
4 | with the State Board of Elections in accordance with Section | ||||||
5 | 9-35 of the Election Code prior to submitting to a State agency | ||||||
6 | the bid or proposal whose value causes the business entity to | ||||||
7 | fall within the monetary description of this subsection. A | ||||||
8 | business entity required to register under this subsection has | ||||||
9 | a continuing duty to ensure that the registration is accurate | ||||||
10 | during the period beginning on the date of registration and | ||||||
11 | ending on the day after the date the contract is awarded. Any | ||||||
12 | change in information must be reported to the State Board of | ||||||
13 | Elections within 2 business days following such change. | ||||||
14 | (e) A business entity whose contracts with State agencies, | ||||||
15 | in the aggregate, annually total more than $50,000 must | ||||||
16 | maintain its registration under this Section and has a | ||||||
17 | continuing duty to ensure that the registration is accurate for | ||||||
18 | the duration of the term of office of the incumbent | ||||||
19 | officeholder awarding the contracts or for a period of 2 years | ||||||
20 | following the expiration or termination of the contracts, | ||||||
21 | whichever is longer. Any change in information shall be | ||||||
22 | reported to the State Board of Elections within 10 days | ||||||
23 | following such change; however, if a business entity required | ||||||
24 | to register under this subsection has a pending bid or | ||||||
25 | proposal, any change in information shall be reported to the | ||||||
26 | State Board of Elections within 2 business days. |
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1 | (f) A business entity's continuing duty under this Section | ||||||
2 | to ensure the accuracy of its registration includes the | ||||||
3 | requirement that the business entity notify the State Board of | ||||||
4 | Elections of any change in information, including but not | ||||||
5 | limited to changes of affiliated entities or affiliated | ||||||
6 | persons. | ||||||
7 | (g) A copy of a certificate of registration must accompany | ||||||
8 | any bid or proposal for a contract with a State agency by a | ||||||
9 | business entity required to register under this Section. A | ||||||
10 | chief procurement officer shall not accept a bid or proposal | ||||||
11 | unless the certificate is submitted to the agency with the bid | ||||||
12 | or proposal. | ||||||
13 | (h) A registration, and any changes to a registration, must | ||||||
14 | include the business entity's verification of accuracy and | ||||||
15 | subjects the business entity to the penalties of the laws of | ||||||
16 | this State for perjury. | ||||||
17 | In addition to any penalty under Section 9-35 of the | ||||||
18 | Election Code, intentional, willful, or material failure to | ||||||
19 | disclose information required for registration shall render | ||||||
20 | the contract, bid, proposal, or other procurement relationship | ||||||
21 | voidable by the chief procurement officer if he or she deems it | ||||||
22 | to be in the best interest of the State of Illinois. | ||||||
23 | (i) This Section applies regardless of the method of source | ||||||
24 | selection used in awarding the contract. | ||||||
25 | (30 ILCS 500/50-37 new) |
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1 | Sec. 50-37. Prohibition of political contributions. | ||||||
2 | (a) As used in this Section: | ||||||
3 | The terms "contract", "State contract", and "contract | ||||||
4 | with a State agency" each mean any contract, as defined in | ||||||
5 | this Code, between a business entity and a State agency let | ||||||
6 | or awarded pursuant to this Code. The terms "contract", | ||||||
7 | "State contract", and "contract with a State agency" do not | ||||||
8 | include cost reimbursement contracts; purchase of care | ||||||
9 | agreements as defined in Section 1-15.68 of this Code; | ||||||
10 | grants, including but are not limited to grants for job | ||||||
11 | training or transportation; and grants, loans, or tax | ||||||
12 | credit agreements for economic development purposes. | ||||||
13 | "Contribution" means a contribution as defined in | ||||||
14 | Section 9-1.4 of the Election Code. | ||||||
15 | "Declared candidate" means a person who has filed a | ||||||
16 | statement of candidacy and petition for nomination or | ||||||
17 | election in the principal office of the State Board of | ||||||
18 | Elections. | ||||||
19 | "State agency" means and includes all boards, | ||||||
20 | commissions, agencies, institutions, authorities, and | ||||||
21 | bodies politic and corporate of the State, created by or in | ||||||
22 | accordance with the Illinois Constitution or State | ||||||
23 | statute, of the executive branch of State government and | ||||||
24 | does include colleges, universities,
public employee | ||||||
25 | retirement systems, and institutions under the | ||||||
26 | jurisdiction of the governing boards of the University of |
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1 | Illinois, Southern Illinois University, Illinois State | ||||||
2 | University, Eastern Illinois University, Northern Illinois | ||||||
3 | University, Western Illinois University, Chicago State | ||||||
4 | University, Governors State University, Northeastern | ||||||
5 | Illinois University, and the Illinois Board of Higher | ||||||
6 | Education. | ||||||
7 | "Officeholder" means the Governor, Lieutenant | ||||||
8 | Governor, Attorney General, Secretary of State, | ||||||
9 | Comptroller, or Treasurer. The Governor shall be | ||||||
10 | considered the officeholder responsible for awarding all | ||||||
11 | contracts by all officers and employees of, and vendors and | ||||||
12 | others doing business with, executive branch State | ||||||
13 | agencies under the jurisdiction of the Executive Ethics | ||||||
14 | Commission and not within the jurisdiction of the Attorney | ||||||
15 | General, the Secretary of State, the Comptroller, or the | ||||||
16 | Treasurer. | ||||||
17 | "Sponsoring entity" means a sponsoring entity as | ||||||
18 | defined in Section 9-3 of the Election Code. | ||||||
19 | "Affiliated person" means (i) any person with any | ||||||
20 | ownership
interest or distributive share of the bidding or | ||||||
21 | contracting business entity in excess of 7.5%, (ii) | ||||||
22 | executive employees of the bidding or contracting business | ||||||
23 | entity, and (iii) the spouse and minor children of any such | ||||||
24 | persons. | ||||||
25 | "Affiliated entity" means (i) any subsidiary of the | ||||||
26 | bidding or contracting business entity, (ii) any member of |
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1 | the same unitary business group, (iii) any organization | ||||||
2 | recognized by the United States Internal Revenue Service as | ||||||
3 | a tax-exempt organization described in Section 501(c) of | ||||||
4 | the Internal Revenue Code of 1986 (or any successor | ||||||
5 | provision of federal tax law) established by the bidding or | ||||||
6 | contracting business entity, any affiliated entity of that | ||||||
7 | business entity, or any affiliated person of that business | ||||||
8 | entity, or (iv) any political committee for which the | ||||||
9 | bidding or contracting business entity, or any 501(c) | ||||||
10 | organization described in item (iii) related to that | ||||||
11 | business entity, is the sponsoring entity. | ||||||
12 | "Business entity" means any entity doing business for | ||||||
13 | profit, whether organized as a corporation, partnership, | ||||||
14 | sole proprietorship, limited liability company or | ||||||
15 | partnership, or otherwise. | ||||||
16 | "Executive employee" means the President, Chairman, | ||||||
17 | Chief Executive Officer, or other employee with executive | ||||||
18 | decision-making authority over the long-term and | ||||||
19 | day-to-day affairs of the entity employing the employee, or | ||||||
20 | an employee whose compensation is determined directly, in | ||||||
21 | whole or in part, by the award or payment of contracts by a | ||||||
22 | State agency to the entity employing the employee. | ||||||
23 | (b) Any business entity whose contracts with State | ||||||
24 | agencies, in the aggregate, annually total more than $50,000, | ||||||
25 | and any affiliated entities or affiliated persons of such | ||||||
26 | business entity, are prohibited from making any contributions |
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1 | to any political committees established to promote the | ||||||
2 | candidacy of (i) the officeholder responsible for awarding the | ||||||
3 | contracts or (ii) any other declared candidate for that office. | ||||||
4 | This prohibition shall be effective for the duration of the | ||||||
5 | term of office of the incumbent officeholder awarding the | ||||||
6 | contracts or for a period of 2 years following the expiration | ||||||
7 | or termination of the contracts, whichever is longer. | ||||||
8 | (c) Any business entity whose aggregate pending bids and | ||||||
9 | proposals on State contracts total more than $50,000, or whose | ||||||
10 | aggregate pending bids and proposals on State contracts | ||||||
11 | combined with the business entity's aggregate annual total | ||||||
12 | value of State contracts exceed $50,000, and any affiliated | ||||||
13 | entities or affiliated persons of such business entity, are | ||||||
14 | prohibited from making any contributions to any political | ||||||
15 | committee
established to promote the candidacy of the | ||||||
16 | officeholder responsible for awarding the contract on which the | ||||||
17 | business entity has submitted a bid or proposal during the | ||||||
18 | period beginning on the date the invitation for bids or request | ||||||
19 | for proposals is issued and ending on the day after the date | ||||||
20 | the contract is awarded. | ||||||
21 | (d) All contracts between State agencies and a business | ||||||
22 | entity that violate subsection (b) or (c) shall be voidable | ||||||
23 | under Section 50-60. If a business entity violates subsection | ||||||
24 | (b) 3 or more times within a 36-month period, then all | ||||||
25 | contracts between State agencies and that business entity shall | ||||||
26 | be void, and that business entity shall not bid or respond to |
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1 | any invitation to bid or request for proposals from any State | ||||||
2 | agency or otherwise enter into any contract with any State | ||||||
3 | agency for 3 years from the date of the last violation. A | ||||||
4 | notice of each violation and the penalty imposed shall be | ||||||
5 | published in both the Procurement Bulletin and the Illinois | ||||||
6 | Register. | ||||||
7 | (e) Any political committee that has received a | ||||||
8 | contribution in violation of subsection (b) or (c) shall pay an | ||||||
9 | amount equal to the value of the contribution to the State no | ||||||
10 | more than 30 days after notice of the violation concerning the | ||||||
11 | contribution appears in the Illinois Register. Payments | ||||||
12 | received by the State
pursuant to this subsection shall be | ||||||
13 | deposited into the general revenue
fund.
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14 | Section 97. Severability. If the provisions of this Act or | ||||||
15 | its application to any person or circumstance is held invalid, | ||||||
16 | the invalidity of that provision or application does not affect | ||||||
17 | the other provisions or applications of this Act that can be | ||||||
18 | given effect without the invalid provision or application. |