Full Text of SB1270 97th General Assembly
SB1270eng 97TH GENERAL ASSEMBLY |
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| 1 | | AN ACT concerning finance.
| 2 | | WHEREAS, Generation after generation of Illinois' citizens | 3 | | has served our nation and the State of Illinois by serving in | 4 | | America's armed forces, often at great sacrifice; and military | 5 | | service by their citizenry is fundamental to the continuing | 6 | | freedom that America and the State of Illinois enjoy; and | 7 | | WHEREAS, Accordingly, honoring the service of Illinois' | 8 | | military veterans, past, present, and future, must be a | 9 | | primary, cornerstone commitment of Illinois; and | 10 | | WHEREAS, Inasmuch as the State of Illinois acknowledges the | 11 | | past and ongoing commitment of Illinois' military veterans, it | 12 | | is the intent of this Act to (i) foster economic opportunities | 13 | | for Illinois' military veterans by encouraging the | 14 | | establishment of service-disabled veteran-owned small | 15 | | businesses (SDVOSB) and veteran-owned small businesses (VOSB) | 16 | | and (ii) establish an annual, ongoing, percentage goal for all | 17 | | State agencies' award of goods and services contracts and | 18 | | construction-related State spending that shall be set aside for | 19 | | competitive bidding by verified Illinois SDVOSB and VOSB; and | 20 | | WHEREAS, It is further intended that appropriate | 21 | | administrative procedures for the verification of SDVOSB, | 22 | | VOSB, bid solicitations, awards, and all matters pertaining | 23 | | thereto shall be established and implemented by the Department | 24 | | of Central Management Services; therefore | 25 | | Be it enacted by the People of the State of Illinois,
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| 1 | | represented in the General Assembly:
| 2 | | Section 5. The Illinois Procurement Code is amended by | 3 | | changing Section 45-57 as follows: | 4 | | (30 ILCS 500/45-57) | 5 | | Sec. 45-57. Veterans Disabled veterans . | 6 | | (a) Set-aside goal. It is the goal of the State to promote | 7 | | and encourage the continued economic development of small | 8 | | businesses owned and controlled by qualified service disabled | 9 | | veterans and that qualified service-disabled service disabled | 10 | | veteran-owned small businesses (referred to as SDVOSB SDVOB ) | 11 | | and veteran-owned small businesses (referred to as VOSB) | 12 | | participate in the State's procurement process as both prime | 13 | | contractors, and subcontractors , and businesses contracted by | 14 | | the State to perform professional services in architecture or | 15 | | engineering . Not less than 3% of the total dollar amount of | 16 | | State contracts, as defined by the Director of Central | 17 | | Management Services, shall be established as a goal to be | 18 | | awarded to SDVOSB and VOSB. A Task Force shall be established, | 19 | | appointed by the Directors or Secretaries of, and made up of | 20 | | representatives of, the Illinois Department of Veterans' | 21 | | Affairs, the Illinois Department of Transportation, the | 22 | | Department of Central Management Services, the Business | 23 | | Enterprise Program, and the Business Enterprise Council. The | 24 | | Department of Central Management Services shall provide |
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| 1 | | administrative support to the Task Force. The purpose of this | 2 | | Task Force shall be to determine the appropriate percentage | 3 | | goal for award each fiscal year
of the State's total | 4 | | expenditures for contracts
awarded under this Code to SDVOB. | 5 | | That
portion of a contract under which the contractor | 6 | | subcontracts
with a SDVOSB or VOSB SDVOB may be counted toward | 7 | | the
goal of this subsection. The Department of Central | 8 | | Management Services shall adopt rules to implement compliance | 9 | | with this subsection by all State agencies. In making that | 10 | | determination the Task Force shall consult with statewide | 11 | | veterans' service organizations and the business community, | 12 | | including businesses owned by qualified disabled veterans. The | 13 | | Task Force shall submit its report to the General Assembly | 14 | | concerning its recommendations regarding the appropriate | 15 | | percentage goal for award each fiscal year of the State's total | 16 | | expenditures for contracts awarded under this Code to qualified | 17 | | service disabled veterans no later than 90 days after the | 18 | | effective date of this amendatory Act of the 96th General | 19 | | Assembly. | 20 | | (b) Fiscal year reports. By Once the appropriate goal is | 21 | | established, then by each September 1, each chief procurement | 22 | | officer shall report to the Department of Central Management | 23 | | Services on all of the following for the immediately preceding | 24 | | fiscal year, and by each October 1 the Department of Central | 25 | | Management Services shall compile and report that information | 26 | | to the General Assembly: |
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| 1 | | (1) The total number of VOSB, and the number of SDVOSB, | 2 | | SDVOB who submitted bids a bid for contracts a contract | 3 | | under this Code. | 4 | | (2) The total number of VOSB, and the number of SDVOSB, | 5 | | SDVOB who entered into contracts with the State under this | 6 | | Code and the total value of those contracts. | 7 | | (c) Yearly review and recommendations. Each year, each | 8 | | chief procurement officer shall review the progress of all | 9 | | State agencies under its jurisdiction in meeting the goal | 10 | | described in subsection (a), with input from statewide | 11 | | veterans' service organizations and from the business | 12 | | community, including businesses owned by qualified disabled | 13 | | veterans, and shall make recommendations to be included in the | 14 | | Department of Central Management Services' report to the | 15 | | General Assembly regarding continuation, increases, or | 16 | | decreases of the percentage goal. The recommendations shall be | 17 | | based upon the number of businesses that are owned by qualified | 18 | | disabled veterans and on the continued need to encourage and | 19 | | promote businesses owned by qualified disabled veterans. | 20 | | (d) Governor's recommendations. To assist the State in | 21 | | reaching the goal described in subsection (a), the Governor | 22 | | shall recommend to the General Assembly changes in programs to | 23 | | assist businesses owned by qualified disabled veterans. | 24 | | (e) Definitions. As used in this Section: | 25 | | "Armed forces of the United States" means the United States | 26 | | Army, Navy, Air Force, Marine Corps, Coast Guard, or service in |
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| 1 | | active duty as defined under 38 U.S.C. Section 101. Service in | 2 | | the Merchant Marine that constitutes active duty under Section | 3 | | 401 of federal Public Act 95-202 shall also be considered | 4 | | service in the armed forces for purposes of this Section. | 5 | | " Business" means a business that has average annual gross | 6 | | sales over the 3 most recent calendar years of less than | 7 | | $31,000,000 as evidenced by the federal income tax returns of | 8 | | the business. | 9 | | "Certification" means a determination made by the Illinois | 10 | | Department of Veterans' Affairs and the Department of Central | 11 | | Management Services that a business entity is a qualified | 12 | | service-disabled veteran-owned small business or a qualified | 13 | | veteran-owned small business for whatever purpose. A SDVOSB or | 14 | | VOSB owned and controlled by females, minorities, or persons | 15 | | with disabilities, as those terms are defined in Section 2 of | 16 | | the Business Enterprise for Minorities, Females, and Persons | 17 | | with Disabilities Act, shall select and designate whether that | 18 | | business is to be certified as a "female-owned business", | 19 | | "minority-owned business", or "business owned by a person with | 20 | | a disability", as defined in Section 2 of the Business | 21 | | Enterprise for Minorities, Females, and Persons with | 22 | | Disabilities Act, or as a qualified SDVOSB or qualified VOSB | 23 | | under this Section. | 24 | | "Control" means the exclusive, ultimate, majority, or sole | 25 | | control of the business, including but not limited to capital | 26 | | investment and all other financial matters, property, |
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| 1 | | acquisitions, contract negotiations, legal matters, | 2 | | officer-director-employee selection and comprehensive hiring, | 3 | | operation responsibilities, cost-control matters, income and | 4 | | dividend matters, financial transactions, and rights of other | 5 | | shareholders or joint partners. Control shall be real, | 6 | | substantial, and continuing, not pro forma. Control shall | 7 | | include the power to direct or cause the direction of the | 8 | | management and policies of the business and to make the | 9 | | day-to-day as well as major decisions in matters of policy, | 10 | | management, and operations. Control shall be exemplified by | 11 | | possessing the requisite knowledge and expertise to run the | 12 | | particular business , and control shall not include simple | 13 | | majority or absentee ownership . | 14 | | "Qualified service-disabled service disabled veteran" | 15 | | means a
veteran who has been found to have 10% or more a | 16 | | service-connected disability by the United States Department | 17 | | of Veterans Affairs or the United States Department of Defense. | 18 | | "Qualified service-disabled veteran-owned small business" | 19 | | or "SDVOSB" means a small business (i) that is at least 51% | 20 | | owned by one or more qualified service-disabled veterans living | 21 | | in Illinois or, in the case of a corporation, at least 51% of | 22 | | the stock of which is owned by one or more qualified | 23 | | service-disabled veterans living in Illinois; (ii) that has its | 24 | | home office in Illinois; and (iii) for which items (i) and (ii) | 25 | | are factually verified annually by the Department of Central | 26 | | Management Services. |
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| 1 | | "Qualified veteran-owned small business" or "VOSB" means a | 2 | | small business (i) that is at least 51% owned by one or more | 3 | | qualified veterans living in Illinois or, in the case of a | 4 | | corporation, at least 51% of the stock of which is owned by one | 5 | | or more qualified veterans living in Illinois; (ii) that has | 6 | | its home office in Illinois; and (iii) for which items (i) and | 7 | | (ii) are factually verified annually by the Department of | 8 | | Central Management Services. | 9 | | "Qualified disabled veteran-owned business" means a | 10 | | business entity that is at least 51% owned by one or more | 11 | | qualified disabled veterans, or in the case of a corporation, | 12 | | at least 51% of the stock of which is owned by one or more | 13 | | qualified disabled veterans; and the management and daily | 14 | | business operations of which are controlled by one or more of | 15 | | the qualified disabled veterans who own it. | 16 | | "Service-connected disability" means a disability incurred | 17 | | in the line of duty in the active military, naval, or air | 18 | | service as described in 38 U.S.C. 101(16). | 19 | | "Small business" means a business that has annual gross | 20 | | sales of less than $75,000,000 as evidenced by the federal | 21 | | income tax return of the business. A firm with gross sales in | 22 | | excess of this cap may apply to the Department of Central | 23 | | Management Services for certification for a particular | 24 | | contract if the firm can demonstrate that the contract would | 25 | | have significant impact on SDVOSB or VOSB as suppliers or | 26 | | subcontractors or in employment of veterans or |
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| 1 | | service-disabled veterans. | 2 | | "State agency" has the same meaning as in Section 2 of the | 3 | | Business Enterprise for Minorities, Females, and Persons with | 4 | | Disabilities Act. | 5 | | "Time of hostilities with a foreign country" means any | 6 | | period of time in the past, present, or future during which a | 7 | | declaration of war by the United States Congress has been or is | 8 | | in effect or during which an emergency condition has been or is | 9 | | in effect that is recognized by the issuance of a Presidential | 10 | | proclamation or a Presidential executive order and in which the | 11 | | armed forces expeditionary medal or other campaign service | 12 | | medals are awarded according to Presidential executive order. | 13 | | "Veteran" means a person who (i) has been a member of the | 14 | | armed forces of the United States or, while a citizen of the | 15 | | United States, was a member of the armed forces of allies of | 16 | | the United States in time of hostilities with a foreign country | 17 | | and (ii) has served under one or more of the following | 18 | | conditions: (a) the veteran served a total of at least 6 | 19 | | months; (b) the veteran served for the duration of hostilities | 20 | | regardless of the length of the engagement; (c) the veteran was | 21 | | discharged on the basis of hardship; or (d) the veteran was | 22 | | released from active duty because of a service connected | 23 | | disability and was discharged under honorable conditions. | 24 | | served in the active military,
naval, or air service and who | 25 | | was discharged or released from
his or her service under | 26 | | conditions other than dishonorable. |
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| 1 | | (f) Certification program. The Illinois Department of | 2 | | Veterans' Affairs and the Department of Central Management | 3 | | Services Business Enterprise Program shall work together to | 4 | | devise a certification procedure to assure that businesses | 5 | | taking advantage of this Section Act are legitimately | 6 | | classified as qualified service-disabled service disabled | 7 | | veteran-owned small businesses or qualified veteran-owned | 8 | | small businesses .
| 9 | | (g) Penalties. | 10 | | (1) Administrative penalties. The Department of | 11 | | Central Management Services shall suspend any person who | 12 | | commits a violation of Article 33C or subsection (d) of | 13 | | Section 33E-6 of the Criminal Code of 1961 relating to this | 14 | | Section from bidding on, or participating as a contractor, | 15 | | subcontractor, or supplier in, any State contract or | 16 | | project for a period of not less than 3 years, and, if the | 17 | | person is certified as a service-disabled veteran-owned | 18 | | small business or a veteran-owned small business, then the | 19 | | Department shall revoke the business's certification for a | 20 | | period of not less than 3 years. An additional or | 21 | | subsequent violation shall extend the periods of | 22 | | suspension and revocation for a period of not less than 5 | 23 | | years. The suspension and revocation shall apply to the | 24 | | principals of the business and any subsequent business | 25 | | formed or financed by, or affiliated with, those | 26 | | principals. |
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| 1 | | (2) Reports of violations. Each State agency shall | 2 | | report any alleged violation of Article 33C or subsection | 3 | | (d) of Section 33E-6 of the Criminal Code of 1961 relating | 4 | | to this Section to the Department of Central Management | 5 | | Services. The Department of Central Management Services | 6 | | shall subsequently report all such alleged violations to | 7 | | the Attorney General, who shall determine whether to bring | 8 | | a civil action against any person for the violation. | 9 | | (3) List of suspended persons. The Department of | 10 | | Central Management Services shall monitor the status of all | 11 | | reported violations of Article 33C or subsection (d) of | 12 | | Section 33E-6 of the Criminal Code of 1961 relating to this | 13 | | Section and shall maintain and make available to all State | 14 | | agencies a central listing of all persons that committed | 15 | | violations resulting in suspension. | 16 | | (4) Use of suspended persons. During the period of a | 17 | | person's suspension under paragraph (1) of this | 18 | | subsection, a State agency shall not enter into any | 19 | | contract with that person or with any contractor using the | 20 | | services of that person as a subcontractor. | 21 | | (5) Duty to check list. Each State agency shall check | 22 | | the central listing provided by the Department of Central | 23 | | Management Services under paragraph (3) of this subsection | 24 | | to verify that a person being awarded a contract by that | 25 | | State agency, or to be used as a subcontractor or supplier | 26 | | on a contract being awarded by that State agency, is not |
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| 1 | | under suspension pursuant to paragraph (1) of this | 2 | | subsection. | 3 | | (Source: P.A. 96-96, eff. 1-1-10.)
| 4 | | Section 10. The Criminal Code of 1961 is amended by | 5 | | changing Sections 33C-1, 33C-2, 33C-3, 33C-4, 33C-5, 33E-2, and | 6 | | 33E-6 as follows:
| 7 | | (720 ILCS 5/33C-1) (from Ch. 38, par. 33C-1)
| 8 | | Sec. 33C-1. Fraudulently obtaining or retaining | 9 | | certification. A person
who, in the course of business, | 10 | | fraudulently obtains or retains
certification as a minority | 11 | | owned business , or female owned business , service-disabled | 12 | | veteran-owned small business, or veteran-owned small business | 13 | | commits
a Class 2 felony.
| 14 | | (Source: P.A. 84-192.)
| 15 | | (720 ILCS 5/33C-2) (from Ch. 38, par. 33C-2)
| 16 | | Sec. 33C-2. Willfully making a false statement. A person | 17 | | who, in the
course of business, willfully makes a false | 18 | | statement whether by affidavit,
report or other | 19 | | representation, to an official or employee of a State
agency or | 20 | | the Minority and Female Business Enterprise Council for the
| 21 | | purpose of influencing the certification or denial of | 22 | | certification of any
business entity as a minority owned | 23 | | business , or female owned business , service-disabled |
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| 1 | | veteran-owned small business, or veteran-owned small business
| 2 | | commits a Class 2 felony.
| 3 | | (Source: P.A. 84-192.)
| 4 | | (720 ILCS 5/33C-3) (from Ch. 38, par. 33C-3)
| 5 | | Sec. 33C-3.
Willfully obstructing or impeding an official | 6 | | or employee of
any agency in his investigation.
Any person who, | 7 | | in the course of business, willfully obstructs or impedes
an | 8 | | official or employee of any State agency or the Minority and | 9 | | Female
Business Enterprise Council
who is investigating the | 10 | | qualifications of a business
entity which has requested | 11 | | certification as a minority owned business , or a
female owned | 12 | | business , service-disabled veteran-owned small business, or | 13 | | veteran-owned small business commits a Class 2 felony.
| 14 | | (Source: P.A. 84-192.)
| 15 | | (720 ILCS 5/33C-4) (from Ch. 38, par. 33C-4)
| 16 | | Sec. 33C-4.
Fraudulently obtaining public moneys reserved | 17 | | for
disadvantaged business enterprises. Any person who, in the | 18 | | course of
business, fraudulently obtains public moneys | 19 | | reserved for, or allocated or
available to , minority owned | 20 | | businesses , or female owned businesses , service-disabled | 21 | | veteran-owned small businesses, or veteran-owned small | 22 | | businesses commits a
Class 2 felony.
| 23 | | (Source: P.A. 84-192.)
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| 1 | | (720 ILCS 5/33C-5) (from Ch. 38, par. 33C-5)
| 2 | | Sec. 33C-5. Definitions. As used in this Article, "minority | 3 | | owned
business", "female owned business", "State agency" with | 4 | | respect to minority owned businesses and female owned | 5 | | businesses, and "certification" with respect to minority owned | 6 | | businesses and female owned businesses shall
have the meanings | 7 | | ascribed to them in Section 2 of the Business Enterprise for
| 8 | | Minorities, Females, and
Persons with Disabilities Act. As used | 9 | | in this Article, "service-disabled veteran-owned small | 10 | | business", "veteran-owned small business", "State agency" with | 11 | | respect to service-disabled veteran-owned small businesses and | 12 | | veteran-owned small businesses, and "certification" with | 13 | | respect to service-disabled veteran-owned small businesses and | 14 | | veteran-owned small businesses have the same meanings as in | 15 | | Section 45-57 of the Illinois Procurement Code.
| 16 | | (Source: P.A. 92-16, eff. 6-28-01.)
| 17 | | (720 ILCS 5/33E-2) (from Ch. 38, par. 33E-2)
| 18 | | Sec. 33E-2. Definitions. In this Act:
| 19 | | (a) "Public contract" means any
contract for goods, | 20 | | services or construction let to any person with or
without bid | 21 | | by any unit of State or local government.
| 22 | | (b) "Unit of State or local government" means the State, | 23 | | any unit of state
government or agency thereof, any county or | 24 | | municipal government or committee
or agency thereof, or any | 25 | | other entity which is funded by or expends tax
dollars or the |
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| 1 | | proceeds of publicly guaranteed bonds.
| 2 | | (c) "Change order" means a change in a contract term other | 3 | | than as
specifically provided for in the contract which | 4 | | authorizes or necessitates
any increase or decrease in the cost | 5 | | of the contract or the time to completion.
| 6 | | (d) "Person" means any individual, firm, partnership,
| 7 | | corporation, joint venture or other entity, but does not | 8 | | include a unit
of State or local government.
| 9 | | (e) "Person employed by any unit of State or local | 10 | | government" means
any employee of a unit of State or local | 11 | | government and any person defined in
subsection (d) who is | 12 | | authorized by such unit of State or local government
to act on | 13 | | its behalf in relation to any public contract.
| 14 | | (f) "Sheltered market" has the meaning ascribed to it in | 15 | | Section 8b of the Business Enterprise for Minorities,
Females, | 16 | | and Persons with Disabilities Act ; except that, with respect to | 17 | | State contracts set aside for award to service-disabled | 18 | | veteran-owned small businesses and veteran-owned small | 19 | | businesses pursuant to Section 45-57 of the Illinois | 20 | | Procurement Code, "sheltered market" means procurements | 21 | | pursuant to that Section .
| 22 | | (g) "Kickback" means any money, fee, commission, credit, | 23 | | gift, gratuity,
thing of value, or compensation of any kind | 24 | | which is provided, directly or
indirectly, to any prime | 25 | | contractor, prime contractor employee,
subcontractor, or | 26 | | subcontractor employee for the purpose of improperly
obtaining |
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| 1 | | or rewarding favorable treatment in connection with a prime
| 2 | | contract or in connection with a subcontract relating to a | 3 | | prime contract.
| 4 | | (h) "Prime contractor" means any person who has entered | 5 | | into
a public contract.
| 6 | | (i) "Prime contractor employee" means any officer, | 7 | | partner, employee, or
agent of a prime contractor.
| 8 | | (i-5) "Stringing" means knowingly structuring a contract
| 9 | | or job order to avoid the contract or job order being subject | 10 | | to competitive
bidding requirements.
| 11 | | (j) "Subcontract" means a contract or contractual action | 12 | | entered into by
a prime contractor or subcontractor for the | 13 | | purpose of obtaining goods or
services of any kind under a | 14 | | prime contract.
| 15 | | (k) "Subcontractor" (1) means any person, other than the | 16 | | prime
contractor, who offers to furnish or furnishes any goods | 17 | | or services of any
kind under a prime contract or a subcontract | 18 | | entered into in connection
with such prime contract; and (2) | 19 | | includes any person who offers to furnish
or furnishes goods or | 20 | | services to the prime contractor or a higher tier
| 21 | | subcontractor.
| 22 | | (l) "Subcontractor employee" means any officer, partner, | 23 | | employee, or
agent of a subcontractor.
| 24 | | (Source: P.A. 92-16, eff. 6-28-01.)
| 25 | | (720 ILCS 5/33E-6) (from Ch. 38, par. 33E-6)
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| 1 | | Sec. 33E-6.
Interference with contract submission and | 2 | | award by public
official. (a) Any person who is an official of | 3 | | or employed by any unit of
State or local government who | 4 | | knowingly conveys, either directly or indirectly,
outside of | 5 | | the publicly available official invitation to bid, pre-bid
| 6 | | conference, solicitation for contracts procedure or such | 7 | | procedure used
in any sheltered market procurement adopted | 8 | | pursuant to law or ordinance by
that unit of government, to any | 9 | | person any information concerning the
specifications for such | 10 | | contract or the identity of any particular
potential | 11 | | subcontractors, when inclusion of such information concerning | 12 | | the
specifications or contractors in the bid or offer would | 13 | | influence the
likelihood of acceptance of such bid or offer, | 14 | | commits a Class 4 felony.
It shall not constitute a violation | 15 | | of this subsection to convey
information intended to clarify | 16 | | plans or specifications regarding a public
contract where such | 17 | | disclosure of information is also made generally
available to | 18 | | the public.
| 19 | | (b) Any person who is an official of or employed by any | 20 | | unit of State or
local government who, either directly or | 21 | | indirectly, knowingly informs a
bidder or offeror that the bid | 22 | | or offer will be accepted or executed only
if specified | 23 | | individuals are included as subcontractors commits a Class 3
| 24 | | felony.
| 25 | | (c) It shall not constitute a violation of subsection (a) | 26 | | of this
Section where any person who is an official of or |
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| 1 | | employed by any unit of
State or local government follows | 2 | | procedures established (i) by federal,
State or local minority | 3 | | or female owned business enterprise programs or (ii) pursuant | 4 | | to Section 45-57 of the Illinois Procurement Code .
| 5 | | (d) Any bidder or offeror who is the recipient of | 6 | | communications from
the unit of government which he reasonably | 7 | | believes to be proscribed by
subsections (a) or (b), and fails | 8 | | to inform either the Attorney General or
the State's Attorney | 9 | | for the county in which the unit of government is
located, | 10 | | commits a Class A misdemeanor.
| 11 | | (e) Any public official who knowingly awards a contract | 12 | | based on
criteria which were not publicly disseminated via the | 13 | | invitation to bid,
when such invitation to bid is required by | 14 | | law or ordinance, the pre-bid
conference, or any solicitation | 15 | | for contracts procedure or such
procedure used in any sheltered | 16 | | market procurement procedure adopted
pursuant to statute or | 17 | | ordinance, commits a Class 3 felony.
| 18 | | (f) It shall not constitute a violation of subsection (a) | 19 | | for any
person who is an official of or employed by any unit of | 20 | | State or local
government to provide to any person a copy of | 21 | | the transcript or other
summary of any pre-bid conference where | 22 | | such transcript or summary is also
made generally available to | 23 | | the public.
| 24 | | (Source: P.A. 86-150.)
| 25 | | Section 99. Effective date. This Act takes effect July 1, | 26 | | 2011. |
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