SB2382 98TH GENERAL ASSEMBLY

LRB098 08315 JDS 38420 b

98TH GENERAL ASSEMBLY
State of Illinois
2013 and 2014
SB2382

Introduced 2/15/2013, by Sen. Christine Radogno

SYNOPSIS AS INTRODUCED:

30 ILCS 500/50-37

Amends the Illinois Procurement Code. Prohibits campaign contributions from grantees with pending or actual annual aggregate awards of State grant funds totalling more than $50,000, or from the affiliated entities and affiliated persons of such grantees, to any political committees established to promote the candidacy of (i) the executive branch constitutional officeholder responsible for awarding the grant funds or (ii) a declared candidate for that office. Specifies the duration of the prohibitions and the penalties for violations.

A BILL FOR

AN ACT concerning finance.

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 Section 50-37 as follows:

(30 ILCS 500/50-37)

Sec. 50-37. Prohibition of political contributions.

(a) As used in this Section:

The terms "contract", "State contract", and "contract with a State agency" each mean any contract, as defined in this Code, between a business entity and a State agency let or awarded pursuant to this Code. The terms "contract", "State contract", and "contract with a State agency" do not include cost reimbursement contracts; purchase of care agreements as defined in Section 1-15.68 of this Code; contracts for projects eligible for full or partial federal-aid funding reimbursements authorized by the Federal Highway Administration; grants, including but are not limited to grants for job training or transportation; and grants, loans, or tax credit agreements for economic development purposes.

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

"Declared candidate" means a person who has filed a statement of candidacy and petition for nomination or election in the principal office of the State Board of Elections.

"State agency" means and includes all boards, commissions, agencies, institutions, authorities, and bodies politic and corporate of the State, created by or in accordance with the Illinois Constitution or State statute, of the executive branch of State government and does include colleges, universities, public employee retirement systems, and institutions under the jurisdiction of the governing boards of the University of Illinois, Southern Illinois University, Illinois State University, Eastern Illinois University, Northern Illinois University, Western Illinois University, Chicago State University, Governors State University, Northeastern Illinois University, and the Illinois Board of Higher Education.

"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 a 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 in excess of 7.5% of the bidding or contracting business entity or the grantee, whichever is applicable in excess of 7.5%, (ii) executive employees of the bidding or contracting business entity or the grantee, whichever is applicable, and (iii) the spouse of any such persons. "Affiliated person" does not include a person prohibited by federal law from making contributions or expenditures in connection with a federal, state, or local election.

"Affiliated entity" means (i) any corporate parent and each operating subsidiary of the bidding or contracting business entity or the grantee, whichever is applicable, (ii) each operating subsidiary of the corporate parent of the bidding or contracting business entity or the grantee, whichever is applicable, (iii) any organization recognized by the United States Internal Revenue Service as a tax-exempt organization described in Section 501(c) of the Internal Revenue Code of 1986 (or any successor provision of federal tax law) established by the bidding or contracting business entity or the grantee, whichever is applicable, any affiliated entity of that business entity or grantee, whichever is applicable, or any affiliated person of that business entity or grantee, whichever is applicable, or (iv) any political committee for which the bidding or contracting business entity or the grantee, or any 501(c) organization described in item (iii) related to that business entity or grantee, is the sponsoring entity. "Affiliated entity" does not include an entity prohibited by federal law from making contributions or expenditures in connection with a federal, state, or local election.

"Business entity" means any entity doing business for profit, whether organized as a corporation, partnership, sole proprietorship, limited liability company or partnership, or otherwise.

"Executive employee" means (i) the President, Chairman, or Chief Executive Officer of a business entity or grantee, as well as and any other individual that fulfills equivalent duties as the President, Chairman of the Board, or Chief Executive Officer of a business entity or grantee; and (ii) any employee of a business entity or grantee whose compensation is determined directly, in whole or in part, by the award or payment of contracts or grant funds by a State agency to the entity employing the employee. A regular salary that is paid irrespective of the award or payment of grant funds from, or a contract with, a State agency shall not constitute "compensation" under item (ii) of this definition. "Executive employee" does not include any person prohibited by federal law from making contributions or expenditures in connection with a federal, state, or local election.

"Grant funds" has the meaning established in subsection (b) of Section 2 of the Illinois Grant Funds Recovery Act.

"Grantee" means any entity that applies for or receives grant funds from a State agency, whether organized as a corporation, partnership, sole proprietorship, limited liability company or partnership, or otherwise.

(b) Any business entity whose contracts with State agencies, in the aggregate, annually total more than $50,000, and any affiliated entities or affiliated persons of such business entity, are prohibited from making any contributions to any political committees established to promote the candidacy of (i) the officeholder responsible for awarding the contracts or (ii) any other declared candidate for that office. This prohibition shall be effective for the duration of the term of office of the incumbent officeholder awarding the contracts or for a period of 2 years following the expiration or termination of the contracts, whichever is longer.

(b-1) Any grantee whose awards of grant funds from State agencies, in the aggregate, annually total more than $50,000, as well as any affiliated entity or affiliated person of the grantee, is prohibited from making any contributions to any political committees established to promote the candidacy of (i) the officeholder responsible for awarding the grant funds or (ii) any other declared candidate for that office. This prohibition shall be effective for the duration of the term of office of the incumbent officeholder awarding the grant funds or for a period of 2 years following the expiration or termination of the grants, whichever is longer.

(c) Any business entity whose aggregate pending bids and proposals on State contracts total more than $50,000, or whose aggregate pending bids and proposals on State contracts combined with the business entity's aggregate annual total value of State contracts exceed $50,000, and any affiliated entities or affiliated persons of such business entity, are prohibited from making any contributions to any political committee established to promote the candidacy of the officeholder responsible for awarding the contract on which the business entity has submitted a bid or proposal during the period beginning on the date the invitation for bids or request for proposals is issued and ending on the day after the date the contract is awarded.

(c-1) Any grantee whose aggregate pending applications for grant funds from a State agency total more than $50,000, or whose aggregate pending applications for grant funds combined with the grantee's aggregate annual total value of grant funds exceed $50,000, as well as any affiliated entity or affiliated person of the grantee, is prohibited from making any contributions to any political committee established to promote the candidacy of the officeholder responsible for awarding the grant funds for which the grantee has submitted an application during the period beginning on the date the award of grant funds is announced and ending on the day after the date the grant funds are awarded.

(c-5) For the purposes of the prohibitions under subsections (b), (b-1), and (c), and (c-1) of this Section, (i) any contribution made to a political committee established to promote the candidacy of the Governor or a declared candidate for the office of Governor shall also be considered as having been made to a political committee established to promote the candidacy of the Lieutenant Governor, in the case of the Governor, or the declared candidate for Lieutenant Governor having filed a joint petition, or write-in declaration of intent, with the declared candidate for Governor, as applicable, and (ii) any contribution made to a political committee established to promote the candidacy of the Lieutenant Governor or a declared candidate for the office of Lieutenant Governor shall also be considered as having been made to a political committee established to promote the candidacy of the Governor, in the case of the Lieutenant Governor, or the declared candidate for Governor having filed a joint petition, or write-in declaration of intent, with the declared candidate for Lieutenant Governor, as applicable.

(d) All contracts between State agencies and a business entity that violate subsection (b) or (c) shall be voidable under Section 50-60, and all awards of grant funds by State agency to a grant recipient entity that violate subsection (b-1) or (c-1) shall also be voidable. If a business entity violates subsection (b) 3 or more times within a 36-month period, then all contracts between State agencies and that business entity shall be void, and that business entity 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. If a grantee violates subsection (b-1) 3 or more times within a 36-month period, then all awards of grant funds between State agencies and that grantee shall be void, and that grantee shall not apply for any award of grant funds from 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.

(e) Any political committee that has received a contribution in violation of subsection (b), (b-1), or (c) , or (c-1) shall pay an amount equal to the value of the contribution to the State no more than 30 days after notice of the violation concerning the contribution appears in the Illinois Register. Payments received by the State pursuant to this subsection shall be deposited into the general revenue fund.

(Source: P.A. 96-795, eff. 7-1-10 (see Section 5 of P.A. 96-793 for the effective date of changes made by P.A. 96-795); 96-848, eff. 1-1-10; 97-411, eff. 8-16-11.)