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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 50-35 as follows:
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6 | (30 ILCS 500/50-35)
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7 | Sec. 50-35. Disclosure and potential conflicts of | |||||||||||||||||||
8 | interest.
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9 | (a) All offers from responsive bidders or offerors with an | |||||||||||||||||||
10 | annual value of
more than $10,000 shall be accompanied by | |||||||||||||||||||
11 | disclosure of the financial
interests of (i) the contractor, | |||||||||||||||||||
12 | bidder, or proposer and (ii) each subcontractor named in the | |||||||||||||||||||
13 | offer . The financial disclosure of
each successful bidder or | |||||||||||||||||||
14 | offeror shall become
part of the publicly available contract or | |||||||||||||||||||
15 | procurement file
maintained by the appropriate chief | |||||||||||||||||||
16 | procurement officer.
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17 | (b) Disclosure by the responsive bidders or offerors shall | |||||||||||||||||||
18 | include any
ownership or distributive income share that is in | |||||||||||||||||||
19 | excess of 5%, or an amount
greater than 60% of the annual | |||||||||||||||||||
20 | salary of the Governor, of the bidding entity
or its parent | |||||||||||||||||||
21 | entity, whichever is less, unless the contractor or bidder
(i) | |||||||||||||||||||
22 | is a
publicly traded entity subject to Federal 10K reporting, | |||||||||||||||||||
23 | in which case it may
submit its 10K
disclosure in place of the |
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1 | prescribed disclosure, or (ii) is a privately held
entity that | ||||||
2 | is exempt from Federal 10k reporting but has more than 400
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3 | shareholders, in which case it may submit the information that | ||||||
4 | Federal 10k
reporting companies are required to report under 17 | ||||||
5 | CFR 229.401 and list the
names of any person or entity holding | ||||||
6 | any ownership share that is in excess of
5% in place of the | ||||||
7 | prescribed disclosure. The form of disclosure shall
be | ||||||
8 | prescribed by the applicable chief procurement officer and must | ||||||
9 | include at
least the names,
addresses, and dollar or | ||||||
10 | proportionate share of ownership of each person
identified in | ||||||
11 | this Section, their instrument of ownership or beneficial
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12 | relationship, and notice of any potential conflict of interest | ||||||
13 | resulting from
the current ownership or beneficial | ||||||
14 | relationship of each person identified in
this Section having | ||||||
15 | in addition any of the following relationships:
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16 | (1) State employment, currently or in the previous 3 | ||||||
17 | years, including
contractual employment of services.
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18 | (2) State employment of spouse, father, mother, son, or | ||||||
19 | daughter,
including
contractual employment for services in | ||||||
20 | the previous 2 years.
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21 | (3) Elective status; the holding of elective office of | ||||||
22 | the State of
Illinois, the government of the United States, | ||||||
23 | any unit of local government
authorized by the Constitution | ||||||
24 | of the State of Illinois or the statutes of the
State of | ||||||
25 | Illinois currently or in the previous 3 years.
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26 | (4) Relationship to anyone holding elective office |
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1 | currently or in the
previous 2 years; spouse, father, | ||||||
2 | mother, son, or daughter.
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3 | (5) Appointive office; the holding of any appointive | ||||||
4 | government office of
the State of Illinois, the United | ||||||
5 | States of America, or any unit of local
government | ||||||
6 | authorized by the Constitution of the State of Illinois or | ||||||
7 | the
statutes of the State of Illinois, which office | ||||||
8 | entitles the holder to
compensation in excess of expenses | ||||||
9 | incurred in the discharge of that office
currently or in | ||||||
10 | the previous 3 years.
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11 | (6) Relationship to anyone holding appointive office | ||||||
12 | currently or in the
previous 2 years; spouse, father, | ||||||
13 | mother, son, or daughter.
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14 | (7) Employment, currently or in the previous 3 years, | ||||||
15 | as or by any
registered lobbyist of the State government.
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16 | (8) Relationship to anyone who is or was a registered | ||||||
17 | lobbyist in the
previous 2 years; spouse, father, mother, | ||||||
18 | son, or daughter.
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19 | (9) Compensated employment, currently or in the | ||||||
20 | previous 3 years, by any
registered election or re-election | ||||||
21 | committee registered with the Secretary of
State or any | ||||||
22 | county clerk in the State of Illinois, or any political | ||||||
23 | action
committee registered with either the Secretary of | ||||||
24 | State or the Federal Board of
Elections.
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25 | (10) Relationship to anyone; spouse, father, mother, | ||||||
26 | son, or daughter; who
is or was a compensated employee in |
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1 | the last 2 years of any registered
election or re-election | ||||||
2 | committee registered with the Secretary of State or any
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3 | county clerk in the State of Illinois, or any political | ||||||
4 | action committee
registered with either the Secretary of | ||||||
5 | State or the Federal Board of
Elections.
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6 | (b-5) The disclosure required by this Section shall include | ||||||
7 | each interest, as described in subsection (b), of each | ||||||
8 | subcontractor named in the offer. | ||||||
9 | (c) The disclosure in subsection (b) is not intended to | ||||||
10 | prohibit or prevent
any
contract. The disclosure is meant to | ||||||
11 | fully and publicly disclose any potential
conflict to the chief | ||||||
12 | procurement officers, State purchasing officers, their
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13 | designees, and executive officers so they may adequately | ||||||
14 | discharge their duty
to protect the State.
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15 | (d) In the case of any contract for personal services in | ||||||
16 | excess of
$50,000; any contract competitively bid in excess of | ||||||
17 | $250,000; any other
contract in excess of $50,000; when a | ||||||
18 | potential for a conflict of interest
is identified, discovered, | ||||||
19 | or reasonably suspected it shall be reviewed and
commented on | ||||||
20 | in writing by the Governor of the State of Illinois, or by an
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21 | executive ethics board or commission he or she might designate. | ||||||
22 | The comment
shall be
returned to the responsible chief | ||||||
23 | procurement officer who must rule in writing
whether to void or
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24 | allow the contract, bid, offer, or proposal weighing the best | ||||||
25 | interest of the
State of Illinois. The comment and | ||||||
26 | determination shall become a publicly
available part of the |
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1 | contract, bid, or proposal file.
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2 | (e) These thresholds and disclosure do not relieve the | ||||||
3 | chief procurement
officer, the State purchasing officer, or
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4 | their designees from reasonable care and diligence for any | ||||||
5 | contract, bid,
offer,
or proposal. The chief procurement | ||||||
6 | officer, the State purchasing officer, or
their designees shall | ||||||
7 | be
responsible for using any reasonably known and publicly | ||||||
8 | available information
to
discover any undisclosed potential | ||||||
9 | conflict of interest and act to protect the
best interest of | ||||||
10 | the State of Illinois.
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11 | (f) Inadvertent or accidental failure to fully disclose | ||||||
12 | shall render the
contract, bid, proposal, or relationship | ||||||
13 | voidable by the chief procurement
officer if he or she deems it | ||||||
14 | in
the best interest of the State of Illinois and, at his or | ||||||
15 | her discretion, may
be cause for barring from future contracts, | ||||||
16 | bids, proposals, or
relationships with the State for a period | ||||||
17 | of up to 2 years.
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18 | (g) Intentional, willful, or material failure to disclose | ||||||
19 | shall render the
contract, bid, proposal, or relationship | ||||||
20 | voidable by the chief procurement
officer if he or she deems it | ||||||
21 | in
the best interest of the State of Illinois and shall result | ||||||
22 | in debarment from
future contracts, bids, proposals, or | ||||||
23 | relationships for a period of not less
than 2 years and not | ||||||
24 | more than 10 years. Reinstatement after 2 years and
before 10 | ||||||
25 | years must be reviewed and commented on in writing by the | ||||||
26 | Governor
of the State of Illinois, or by an executive ethics |
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1 | board or commission he or
she
might designate. The comment | ||||||
2 | shall be returned to the responsible chief
procurement officer | ||||||
3 | who must
rule in writing whether and when to reinstate.
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4 | (h) In addition, all disclosures shall note any other | ||||||
5 | current or pending
contracts, proposals, leases, or other | ||||||
6 | ongoing procurement relationships the
bidding, proposing, or | ||||||
7 | offering entity has with any other unit of State
government and | ||||||
8 | shall clearly identify the unit and the contract, proposal,
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9 | lease, or other relationship.
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10 | (Source: P.A. 95-331, eff. 8-21-07.)
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