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| | 103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024 HB3859 Introduced 2/17/2023, by Rep. Lance Yednock SYNOPSIS AS INTRODUCED: |
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Amends the Illinois Procurement Code. In respect to a "qualified veteran-owned small business", provides that the business must have annual gross sales of less than $150,000,000 (rather than $75,000,000) as evidenced by the federal income tax return of the business.
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| | A BILL FOR |
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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 45-57 as follows: |
6 | | (30 ILCS 500/45-57) |
7 | | Sec. 45-57. Veterans. |
8 | | (a) Set-aside goal. It is the goal of the State to promote |
9 | | and encourage the continued economic development of small |
10 | | businesses owned and controlled by qualified veterans and that |
11 | | qualified service-disabled veteran-owned small businesses |
12 | | (referred to as SDVOSB) and veteran-owned small businesses |
13 | | (referred to as VOSB) participate in the State's procurement |
14 | | process as both prime contractors and subcontractors. Not less |
15 | | than 3% of the total dollar amount of State contracts, as |
16 | | defined by the Commission on Equity and Inclusion, shall be |
17 | | established as a goal to be awarded to SDVOSB and VOSB. That
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18 | | portion of a contract under which the contractor subcontracts
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19 | | with a SDVOSB or VOSB may be counted toward the
goal of this |
20 | | subsection. The Commission on Equity and Inclusion shall adopt |
21 | | rules to implement compliance with this subsection by all |
22 | | State agencies. |
23 | | (b) Fiscal year reports. By each November 1, each chief |
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1 | | procurement officer shall report to the Commission on Equity |
2 | | and Inclusion on all of the following for the immediately |
3 | | preceding fiscal year, and by each March 1 the Commission on |
4 | | Equity and Inclusion shall compile and report that information |
5 | | to the General Assembly: |
6 | | (1) The total number of VOSB, and the number of |
7 | | SDVOSB, who submitted bids for contracts under this Code. |
8 | | (2) The total number of VOSB, and the number of |
9 | | SDVOSB, who entered into contracts with the State under |
10 | | this Code and the total value of those contracts. |
11 | | (b-5) The Commission on Equity and Inclusion shall submit |
12 | | an annual report to the Governor and the General Assembly that |
13 | | shall include the following: |
14 | | (1) a year-by-year comparison of the number of |
15 | | certifications the State has issued to veteran-owned small |
16 | | businesses and service-disabled veteran-owned small |
17 | | businesses; |
18 | | (2) the obstacles, if any, the Commission on Equity |
19 | | and Inclusion faces when certifying veteran-owned |
20 | | businesses and possible rules or changes to rules to |
21 | | address those issues; |
22 | | (3) a year-by-year comparison of awarded contracts to |
23 | | certified veteran-owned small businesses and |
24 | | service-disabled veteran-owned small businesses; and |
25 | | (4) any other information that the Commission on |
26 | | Equity and Inclusion deems necessary to assist |
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1 | | veteran-owned small businesses and service-disabled |
2 | | veteran-owned small businesses to become certified with |
3 | | the State. |
4 | | The Commission on Equity and Inclusion shall conduct a |
5 | | minimum of 2 outreach events per year to ensure that |
6 | | veteran-owned small businesses and service-disabled |
7 | | veteran-owned small businesses know about the procurement |
8 | | opportunities and certification requirements with the State. |
9 | | The Commission on Equity and Inclusion may receive |
10 | | appropriations for outreach. |
11 | | (c) Yearly review and recommendations. Each year, each |
12 | | chief procurement officer shall review the progress of all |
13 | | State agencies under its jurisdiction in meeting the goal |
14 | | described in subsection (a), with input from statewide |
15 | | veterans' service organizations and from the business |
16 | | community, including businesses owned by qualified veterans, |
17 | | and shall make recommendations to be included in the |
18 | | Commission on Equity and Inclusion's report to the General |
19 | | Assembly regarding continuation, increases, or decreases of |
20 | | the percentage goal. The recommendations shall be based upon |
21 | | the number of businesses that are owned by qualified veterans |
22 | | and on the continued need to encourage and promote businesses |
23 | | owned by qualified veterans. |
24 | | (d) Governor's recommendations. To assist the State in |
25 | | reaching the goal described in subsection (a), the Governor |
26 | | shall recommend to the General Assembly changes in programs to |
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1 | | assist businesses owned by qualified veterans. |
2 | | (e) Definitions. As used in this Section: |
3 | | "Armed forces of the United States" means the United |
4 | | States Army, Navy, Air Force, Marine Corps, Coast Guard, or |
5 | | service in active duty as defined under 38 U.S.C. Section 101. |
6 | | Service in the Merchant Marine that constitutes active duty |
7 | | under Section 401 of federal Public Act 95-202 shall also be |
8 | | considered service in the armed forces for purposes of this |
9 | | Section. |
10 | | "Certification" means a determination made by the Illinois |
11 | | Department of Veterans' Affairs and the Commission on Equity |
12 | | and Inclusion that a business entity is a qualified |
13 | | service-disabled veteran-owned small business or a qualified |
14 | | veteran-owned small business for whatever purpose. A SDVOSB or |
15 | | VOSB owned and controlled by women, minorities, or persons |
16 | | with disabilities, as those terms are defined in Section 2 of |
17 | | the Business Enterprise for Minorities, Women, and Persons |
18 | | with Disabilities Act, may also select and designate whether |
19 | | that business is to be certified as a "women-owned business", |
20 | | "minority-owned business", or "business owned by a person with |
21 | | a disability", as defined in Section 2 of the Business |
22 | | Enterprise for Minorities, Women, and Persons with |
23 | | Disabilities Act. |
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 veteran" means a
veteran who |
15 | | has been found to have 10% or more service-connected |
16 | | disability by the United States Department of Veterans Affairs |
17 | | 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 |
21 | | living in Illinois or, in the case of a corporation, at least |
22 | | 51% of the stock of which is owned by one or more qualified |
23 | | service-disabled veterans living in Illinois; (ii) that has |
24 | | its home office in Illinois; and (iii) for which items (i) and |
25 | | (ii) are factually verified annually by the Commission on |
26 | | Equity and Inclusion. |
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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 Commission on |
8 | | Equity and Inclusion. |
9 | | "Service-connected disability" means a disability incurred |
10 | | in the line of duty in the active military, naval, or air |
11 | | service as described in 38 U.S.C. 101(16). |
12 | | "Small business" means a business that has annual gross |
13 | | sales of less than $150,000,000 $75,000,000 as evidenced by |
14 | | the federal income tax return of the business. A firm with |
15 | | gross sales in excess of this cap may apply to the Commission |
16 | | on Equity and Inclusion for certification for a particular |
17 | | contract if the firm can demonstrate that the contract would |
18 | | have significant impact on SDVOSB or VOSB as suppliers or |
19 | | subcontractors or in employment of veterans or |
20 | | service-disabled veterans. |
21 | | "State agency" has the meaning provided in Section |
22 | | 1-15.100 of this Code. |
23 | | "Time of hostilities with a foreign country" means any |
24 | | period of time in the past, present, or future during which a |
25 | | declaration of war by the United States Congress has been or is |
26 | | in effect or during which an emergency condition has been or is |
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1 | | in effect that is recognized by the issuance of a Presidential |
2 | | proclamation or a Presidential executive order and in which |
3 | | the armed forces expeditionary medal or other campaign service |
4 | | medals are awarded according to Presidential executive order. |
5 | | "Veteran" means a person who (i) has been a member of the |
6 | | armed forces of the United States or, while a citizen of the |
7 | | United States, was a member of the armed forces of allies of |
8 | | the United States in time of hostilities with a foreign |
9 | | country and (ii) has served under one or more of the following |
10 | | conditions: (a) the veteran served a total of at least 6 |
11 | | months; (b) the veteran served for the duration of hostilities |
12 | | regardless of the length of the engagement; (c) the veteran |
13 | | was discharged on the basis of hardship; or (d) the veteran was |
14 | | released from active duty because of a service connected |
15 | | disability and was discharged under honorable conditions. |
16 | | (f) Certification program. The Illinois Department of |
17 | | Veterans' Affairs and the Commission on Equity and Inclusion |
18 | | shall work together to devise a certification procedure to |
19 | | assure that businesses taking advantage of this Section are |
20 | | legitimately classified as qualified service-disabled |
21 | | veteran-owned small businesses or qualified veteran-owned |
22 | | small businesses.
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23 | | The Commission on Equity and Inclusion shall: |
24 | | (1) compile and maintain a comprehensive list of |
25 | | certified veteran-owned small businesses and |
26 | | service-disabled veteran-owned small businesses; |
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1 | | (2) assist veteran-owned small businesses and |
2 | | service-disabled veteran-owned small businesses in |
3 | | complying with the procedures for bidding on State |
4 | | contracts; |
5 | | (3) provide training for State agencies regarding the |
6 | | goal setting process and compliance with veteran-owned |
7 | | small business and service-disabled veteran-owned small |
8 | | business goals; and |
9 | | (4) implement and maintain an electronic portal on the |
10 | | Commission on Equity and Inclusion's website for the |
11 | | purpose of completing and submitting veteran-owned small |
12 | | business and service-disabled veteran-owned small business |
13 | | certificates. |
14 | | The Commission on Equity and Inclusion, in consultation |
15 | | with the Department of Veterans' Affairs, may develop programs |
16 | | and agreements to encourage cities, counties, towns, |
17 | | townships, and other certifying entities to adopt uniform |
18 | | certification procedures and certification recognition |
19 | | programs. |
20 | | (f-5) A business shall be certified by the Commission on |
21 | | Equity and Inclusion as a service-disabled veteran-owned small |
22 | | business or a veteran-owned small business for purposes of |
23 | | this Section if the Commission on Equity and Inclusion |
24 | | determines that the business has been certified as a |
25 | | service-disabled veteran-owned small business or a |
26 | | veteran-owned small business by the Vets First Verification |
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1 | | Program of the United States Department of Veterans Affairs, |
2 | | and the business has provided to the Commission on Equity and |
3 | | Inclusion the following: |
4 | | (1) documentation showing certification as a |
5 | | service-disabled veteran-owned small business or a |
6 | | veteran-owned small business by the Vets First |
7 | | Verification Program of the United States Department of |
8 | | Veterans Affairs; |
9 | | (2) proof that the business has its home office in |
10 | | Illinois; and |
11 | | (3) proof that the qualified veterans or qualified |
12 | | service-disabled veterans live in the State of Illinois. |
13 | | The policies of the Commission on Equity and Inclusion |
14 | | regarding recognition of the Vets First Verification Program |
15 | | of the United States Department of Veterans Affairs shall be |
16 | | reviewed annually by the Commission on Equity and Inclusion, |
17 | | and recognition of service-disabled veteran-owned small |
18 | | businesses and veteran-owned small businesses certified by the |
19 | | Vets First Verification Program of the United States |
20 | | Department of Veterans Affairs may be discontinued by the |
21 | | Commission on Equity and Inclusion by rule upon a finding that |
22 | | the certification standards of the Vets First Verification |
23 | | Program of the United States Department of Veterans Affairs do |
24 | | not meet the certification requirements established by the |
25 | | Commission on Equity and Inclusion. |
26 | | (g) Penalties. |
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1 | | (1) Administrative penalties. The chief procurement |
2 | | officers appointed pursuant to Section 10-20 shall suspend |
3 | | any person who commits a violation of Section 17-10.3 or |
4 | | subsection (d) of Section 33E-6 of the Criminal Code of |
5 | | 2012 relating to this Section from bidding on, or |
6 | | participating as a contractor, subcontractor, or supplier |
7 | | in, any State contract or project for a period of not less |
8 | | than 3 years, and, if the person is certified as a |
9 | | service-disabled veteran-owned small business or a |
10 | | veteran-owned small business, then the Commission on |
11 | | Equity and Inclusion shall revoke the business's |
12 | | certification for a period of not less than 3 years. An |
13 | | additional or subsequent violation shall extend the |
14 | | periods of suspension and revocation for a period of not |
15 | | less than 5 years. The suspension and revocation shall |
16 | | apply to the principals of the business and any subsequent |
17 | | business formed or financed by, or affiliated with, those |
18 | | principals. |
19 | | (2) Reports of violations. Each State agency shall |
20 | | report any alleged violation of Section 17-10.3 or |
21 | | subsection (d) of Section 33E-6 of the Criminal Code of |
22 | | 2012 relating to this Section to the chief procurement |
23 | | officers appointed pursuant to Section 10-20. The chief |
24 | | procurement officers appointed pursuant to Section 10-20 |
25 | | shall subsequently report all such alleged violations to |
26 | | the Attorney General, who shall determine whether to bring |
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1 | | a civil action against any person for the violation. |
2 | | (3) List of suspended persons. The chief procurement |
3 | | officers appointed pursuant to Section 10-20 shall monitor |
4 | | the status of all reported violations of Section 17-10.3 |
5 | | or subsection (d) of Section 33E-6 of the Criminal Code of |
6 | | 1961 or the Criminal Code of 2012 relating to this Section |
7 | | and shall maintain and make available to all State |
8 | | agencies a central listing of all persons that committed |
9 | | violations resulting in suspension. |
10 | | (4) Use of suspended persons. During the period of a |
11 | | person's suspension under paragraph (1) of this |
12 | | subsection, a State agency shall not enter into any |
13 | | contract with that person or with any contractor using the |
14 | | services of that person as a subcontractor. |
15 | | (5) Duty to check list. Each State agency shall check |
16 | | the central listing provided by the chief procurement |
17 | | officers appointed pursuant to Section 10-20 under |
18 | | paragraph (3) of this subsection to verify that a person |
19 | | being awarded a contract by that State agency, or to be |
20 | | used as a subcontractor or supplier on a contract being |
21 | | awarded by that State agency, is not under suspension |
22 | | pursuant to paragraph (1) of this subsection. |
23 | | (h) On and after the effective date of this amendatory Act |
24 | | of the 102nd General Assembly, all powers, duties, rights, and |
25 | | responsibilities of the Department of Central Management |
26 | | Services with respect to the requirements of this Section are |
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1 | | transferred to the Commission on Equity and Inclusion. |
2 | | All books, records, papers, documents, property (real and |
3 | | personal), contracts, causes of action, and pending business |
4 | | pertaining to the powers, duties, rights, and responsibilities |
5 | | transferred by this amendatory Act from the Department of |
6 | | Central Management Services to the Commission on Equity and |
7 | | Inclusion, including, but not limited to, material in |
8 | | electronic or magnetic format and necessary computer hardware |
9 | | and software, shall be transferred to the Commission on Equity |
10 | | and Inclusion. |
11 | | The powers, duties, rights, and responsibilities |
12 | | transferred from the Department of Central Management Services |
13 | | by this amendatory Act shall be vested in and shall be |
14 | | exercised by the Commission on Equity and Inclusion. |
15 | | Whenever reports or notices are now required to be made or |
16 | | given or papers or documents furnished or served by any person |
17 | | to or upon the Department of Central Management Services in |
18 | | connection with any of the powers, duties, rights, and |
19 | | responsibilities transferred by this amendatory Act, the same |
20 | | shall be made, given, furnished, or served in the same manner |
21 | | to or upon the Commission on Equity and Inclusion. |
22 | | This amendatory Act of the 102nd General Assembly does not |
23 | | affect any act done, ratified, or canceled or any right |
24 | | occurring or established or any action or proceeding had or |
25 | | commenced in an administrative, civil, or criminal cause by |
26 | | the Department of Central Management Services before this |
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1 | | amendatory Act takes effect; such actions or proceedings may |
2 | | be prosecuted and continued by the Commission on Equity and |
3 | | Inclusion. |
4 | | Any rules of the Department of Central Management Services |
5 | | that relate to its powers, duties, rights, and |
6 | | responsibilities under this Section and are in full force on |
7 | | the effective date of this amendatory Act of the 102nd General |
8 | | Assembly shall become the rules of the Commission on Equity |
9 | | and Inclusion. This amendatory Act does not affect the |
10 | | legality of any such rules in the Illinois Administrative |
11 | | Code.
Any proposed rules filed with the Secretary of State by |
12 | | the Department of Central Management Services that are pending |
13 | | in the rulemaking process on the effective date of this |
14 | | amendatory Act and pertain to the powers, duties, rights, and |
15 | | responsibilities transferred, shall be deemed to have been |
16 | | filed by the Commission on Equity and Inclusion. As soon as |
17 | | practicable hereafter, the Commission on Equity and Inclusion |
18 | | shall revise and clarify the rules transferred to it under |
19 | | this amendatory Act to reflect the reorganization of powers, |
20 | | duties, rights, and responsibilities affected by this |
21 | | amendatory Act, using the procedures for recodification of |
22 | | rules available under the Illinois Administrative Procedure |
23 | | Act, except that existing title, part, and section numbering |
24 | | for the affected rules may be retained. The Commission on |
25 | | Equity and Inclusion may propose and adopt under the Illinois |
26 | | Administrative Procedure Act such other rules of the |