102ND GENERAL ASSEMBLY
State of Illinois
2021 and 2022
HB2770

 

Introduced 2/19/2021, by Rep. Dave Vella

 

SYNOPSIS AS INTRODUCED:
 
30 ILCS 500/45-57

    Amends the Illinois Procurement Code. Provides that each chief procurement officer has authority to designate as veteran small business set-asides a fair proportion of construction, supply, and service contracts for awards to qualified service-disabled veteran-owned small businesses or veteran-owned small businesses. Provides further requirements concerning veteran small business set-aside designations. Requires each chief procurement officer to report to the General Assembly (currently, Department of Central Management Services) on specified information concerning qualified service-disabled veteran-owned small businesses and veteran-owned small businesses, and requires that the number of bids or offers will be delineated between contracts that were designated as set-aside and those that were not designated as set-aside. Makes other changes.


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A BILL FOR

 

HB2770LRB102 12716 RJF 18055 b

1    AN ACT concerning finance.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Illinois Procurement Code is amended by
5changing Section 45-57 as follows:
 
6    (30 ILCS 500/45-57)
7    Sec. 45-57. Veterans.
8    (a) Goal Set-aside goal. It is the goal of the State to
9promote and encourage the continued economic development of
10small businesses owned and controlled by qualified veterans
11and that qualified service-disabled veteran-owned small
12businesses (referred to as SDVOSB) and veteran-owned small
13businesses (referred to as VOSB) participate in the State's
14procurement process as both prime contractors and
15subcontractors. Not less than 3% of the total dollar amount of
16State contracts, as defined by the Director of Central
17Management Services, shall be established as a goal to be
18awarded to SDVOSB and VOSB. That portion of a contract under
19which the contractor subcontracts with a SDVOSB or VOSB may be
20counted toward the goal of this subsection. The Department of
21Central Management Services shall adopt rules to implement
22compliance with this subsection by all State agencies.
23    (a-5) Set-asides. Each chief procurement officer has

 

 

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1authority to designate as veteran small business set-asides a
2fair proportion of construction, supply, and service contracts
3for awards to qualified service-disabled veteran-owned small
4businesses or veteran-owned small businesses. Advertisements
5for bids or offers for such contracts shall specify
6designation as veteran small business set-asides. In awarding
7the contracts, only bids or offers from qualified
8service-disabled veteran-owned small businesses or
9veteran-owned small businesses shall be considered.
10        (1) A veteran small business set-aside designation may
11    be withdrawn by the purchasing agency when deemed in the
12    best interests of the State. Upon withdrawal, all bids or
13    offers shall be rejected, and the bidders or offerors
14    shall be notified of the reason for rejection. The
15    contract shall then be awarded in accordance with this
16    Code without the designation of veteran small business
17    set-aside.
18        (2) Each chief procurement officer may adopt rules to
19    implement and administer the use of set-asides.
20    (b) Fiscal year reports. By each November 1, each chief
21procurement officer shall report to the General Assembly
22Department of Central Management Services on all of the
23following for the immediately preceding fiscal year, and by
24each March 1 the Department of Central Management Services
25shall compile and report that information to the General
26Assembly:

 

 

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1        (1) The total number of VOSB, and the number of
2    SDVOSB, who submitted bids or offers for contracts under
3    this Code. The number of bids or offers will be delineated
4    between contracts that were set-aside under subsection
5    (a-5) and those that were not set-aside.
6        (2) The total number of VOSB, and the number of
7    SDVOSB, who entered into contracts with the State under
8    this Code and the total value of those contracts. The
9    number of contracts and the value of contracts will be
10    delineated between contracts that were awarded as
11    set-asides under subsection (a-5) and those that were not
12    set-aside.
13    The requirement for reporting to the General Assembly
14under this subsection (b) shall be satisfied by filing copies
15of the report as required by Section 3.1 of the General
16Assembly Organization Act.
17    (c) Yearly review and recommendations. Each year, each
18chief procurement officer shall review the progress of all
19State agencies under its jurisdiction in meeting the goal
20described in subsection (a), with input from statewide
21veterans' service organizations and from the business
22community, including businesses owned by qualified veterans,
23and shall make recommendations to be included in the
24Department of Central Management Services' report to the
25General Assembly regarding continuation, increases, or
26decreases of the percentage goal. The recommendations shall be

 

 

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1based upon the number of businesses that are owned by
2qualified veterans and on the continued need to encourage and
3promote businesses owned by qualified veterans.
4    (d) Governor's recommendations. To assist the State in
5reaching the goal described in subsection (a), the Governor
6shall recommend to the General Assembly changes in programs to
7assist businesses owned by qualified veterans.
8    (e) Definitions. As used in this Section:
9    "Armed forces of the United States" means the United
10States Army, Navy, Air Force, Marine Corps, Coast Guard, or
11service in active duty as defined under 38 U.S.C. Section 101.
12Service in the Merchant Marine that constitutes active duty
13under Section 401 of federal Public Act 95-202 shall also be
14considered service in the armed forces for purposes of this
15Section.
16    "Certification" means a determination made by the Illinois
17Department of Veterans' Affairs and the Department of Central
18Management Services that a business entity is a qualified
19service-disabled veteran-owned small business or a qualified
20veteran-owned small business for whatever purpose. A SDVOSB or
21VOSB owned and controlled by women, minorities, or persons
22with disabilities, as those terms are defined in Section 2 of
23the Business Enterprise for Minorities, Women, and Persons
24with Disabilities Act, may also select and designate whether
25that business is to be certified as a "women-owned business",
26"minority-owned business", or "business owned by a person with

 

 

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1a disability", as defined in Section 2 of the Business
2Enterprise for Minorities, Women, and Persons with
3Disabilities Act.
4    "Control" means the exclusive, ultimate, majority, or sole
5control of the business, including but not limited to capital
6investment and all other financial matters, property,
7acquisitions, contract negotiations, legal matters,
8officer-director-employee selection and comprehensive hiring,
9operation responsibilities, cost-control matters, income and
10dividend matters, financial transactions, and rights of other
11shareholders or joint partners. Control shall be real,
12substantial, and continuing, not pro forma. Control shall
13include the power to direct or cause the direction of the
14management and policies of the business and to make the
15day-to-day as well as major decisions in matters of policy,
16management, and operations. Control shall be exemplified by
17possessing the requisite knowledge and expertise to run the
18particular business, and control shall not include simple
19majority or absentee ownership.
20    "Qualified service-disabled veteran" means a veteran who
21has been found to have 10% or more service-connected
22disability by the United States Department of Veterans Affairs
23or the United States Department of Defense.
24    "Qualified service-disabled veteran-owned small business"
25or "SDVOSB" means a small business (i) that is at least 51%
26owned by one or more qualified service-disabled veterans

 

 

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1living in Illinois or, in the case of a corporation, at least
251% of the stock of which is owned by one or more qualified
3service-disabled veterans living in Illinois; (ii) that has
4its home office in Illinois; and (iii) for which items (i) and
5(ii) are factually verified annually by the Department of
6Central Management Services.
7    "Qualified veteran-owned small business" or "VOSB" means a
8small business (i) that is at least 51% owned by one or more
9qualified veterans living in Illinois or, in the case of a
10corporation, at least 51% of the stock of which is owned by one
11or more qualified veterans living in Illinois; (ii) that has
12its home office in Illinois; and (iii) for which items (i) and
13(ii) are factually verified annually by the Department of
14Central Management Services.
15    "Service-connected disability" means a disability incurred
16in the line of duty in the active military, naval, or air
17service as described in 38 U.S.C. 101(16).
18    "Small business" means a business that has annual gross
19sales of less than $75,000,000 as evidenced by the federal
20income tax return of the business. A firm with gross sales in
21excess of this cap may apply to the Department of Central
22Management Services for certification for a particular
23contract if the firm can demonstrate that the contract would
24have significant impact on SDVOSB or VOSB as suppliers or
25subcontractors or in employment of veterans or
26service-disabled veterans.

 

 

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1    "State agency" has the meaning provided in Section
21-15.100 of this Code.
3    "Time of hostilities with a foreign country" means any
4period of time in the past, present, or future during which a
5declaration of war by the United States Congress has been or is
6in effect or during which an emergency condition has been or is
7in effect that is recognized by the issuance of a Presidential
8proclamation or a Presidential executive order and in which
9the armed forces expeditionary medal or other campaign service
10medals are awarded according to Presidential executive order.
11    "Veteran" means a person who (i) has been a member of the
12armed forces of the United States or, while a citizen of the
13United States, was a member of the armed forces of allies of
14the United States in time of hostilities with a foreign
15country and (ii) has served under one or more of the following
16conditions: (a) the veteran served a total of at least 6
17months; (b) the veteran served for the duration of hostilities
18regardless of the length of the engagement; (c) the veteran
19was discharged on the basis of hardship; or (d) the veteran was
20released from active duty because of a service connected
21disability and was discharged under honorable conditions.
22    (f) Certification program. The Illinois Department of
23Veterans' Affairs and the Department of Central Management
24Services shall work together to devise a certification
25procedure to assure that businesses taking advantage of this
26Section are legitimately classified as qualified

 

 

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1service-disabled veteran-owned small businesses or qualified
2veteran-owned small businesses.
3    (g) Penalties.
4        (1) Administrative penalties. The chief procurement
5    officers appointed pursuant to Section 10-20 shall suspend
6    any person who commits a violation of Section 17-10.3 or
7    subsection (d) of Section 33E-6 of the Criminal Code of
8    2012 relating to this Section from bidding on, or
9    participating as a contractor, subcontractor, or supplier
10    in, any State contract or project for a period of not less
11    than 3 years, and, if the person is certified as a
12    service-disabled veteran-owned small business or a
13    veteran-owned small business, then the Department shall
14    revoke the business's certification for a period of not
15    less than 3 years. An additional or subsequent violation
16    shall extend the periods of suspension and revocation for
17    a period of not less than 5 years. The suspension and
18    revocation shall apply to the principals of the business
19    and any subsequent business formed or financed by, or
20    affiliated with, those principals.
21        (2) Reports of violations. Each State agency shall
22    report any alleged violation of Section 17-10.3 or
23    subsection (d) of Section 33E-6 of the Criminal Code of
24    2012 relating to this Section to the chief procurement
25    officers appointed pursuant to Section 10-20. The chief
26    procurement officers appointed pursuant to Section 10-20

 

 

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1    shall subsequently report all such alleged violations to
2    the Attorney General, who shall determine whether to bring
3    a civil action against any person for the violation.
4        (3) List of suspended persons. The chief procurement
5    officers appointed pursuant to Section 10-20 shall monitor
6    the status of all reported violations of Section 17-10.3
7    or subsection (d) of Section 33E-6 of the Criminal Code of
8    1961 or the Criminal Code of 2012 relating to this Section
9    and shall maintain and make available to all State
10    agencies a central listing of all persons that committed
11    violations resulting in suspension.
12        (4) Use of suspended persons. During the period of a
13    person's suspension under paragraph (1) of this
14    subsection, a State agency shall not enter into any
15    contract with that person or with any contractor using the
16    services of that person as a subcontractor.
17        (5) Duty to check list. Each State agency shall check
18    the central listing provided by the chief procurement
19    officers appointed pursuant to Section 10-20 under
20    paragraph (3) of this subsection to verify that a person
21    being awarded a contract by that State agency, or to be
22    used as a subcontractor or supplier on a contract being
23    awarded by that State agency, is not under suspension
24    pursuant to paragraph (1) of this subsection.
25(Source: P.A. 100-43, eff. 8-9-17; 100-391, eff. 8-25-17;
26100-863, eff. 8-14-18.)