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Public Act 097-0490 | ||||
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AN ACT concerning finance.
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Be it enacted by the People of the State of Illinois,
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represented in the General Assembly:
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Section 5. The Illinois Procurement Code is amended by | ||||
changing Section 50-35 as follows: | ||||
(30 ILCS 500/50-35) | ||||
Sec. 50-35. Financial disclosure and potential conflicts | ||||
of interest. | ||||
(a) All offers from responsive bidders or offerors with an | ||||
annual value of
more than $25,000, and all subcontracts | ||||
identified as provided by Section 20-120 of this Code, shall be | ||||
accompanied by disclosure of the financial
interests of the | ||||
contractor, bidder, or proposer and each subcontractor to be | ||||
used. The financial disclosure of
each successful bidder or | ||||
offeror and its subcontractors shall be incorporated as a | ||||
material term of the contract and shall become
part of the | ||||
publicly available contract or procurement file
maintained by | ||||
the appropriate chief procurement officer. Each disclosure | ||||
under this Section and Section 50-34 shall be signed and made | ||||
under penalty of perjury by an authorized officer or employee | ||||
on behalf of the bidder or offeror, and must be filed with the | ||||
Procurement Policy Board. | ||||
(b) Disclosure shall include any
ownership or distributive |
income share that is in excess of 5%, or an amount
greater than | ||
60% of the annual salary of the Governor, of the disclosing | ||
entity
or its parent entity, whichever is less, unless the | ||
contractor, bidder, or subcontractor
(i) is a
publicly traded | ||
entity subject to Federal 10K reporting, in which case it may
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submit its 10K
disclosure in place of the prescribed | ||
disclosure, or (ii) is a privately held
entity that is exempt | ||
from Federal 10k reporting but has more than 200 400
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shareholders, in which case it may submit the information that | ||
Federal 10k
reporting companies are required to report under 17 | ||
CFR 229.401 and list the
names of any person or entity holding | ||
any ownership share that is in excess of
5% in place of the | ||
prescribed disclosure. The form of disclosure shall
be | ||
prescribed by the applicable chief procurement officer and must | ||
include at
least the names,
addresses, and dollar or | ||
proportionate share of ownership of each person
identified in | ||
this Section, their instrument of ownership or beneficial
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relationship, and notice of any potential conflict of interest | ||
resulting from
the current ownership or beneficial | ||
relationship of each person identified in
this Section having | ||
in addition any of the following relationships: | ||
(1) State employment, currently or in the previous 3 | ||
years, including
contractual employment of services. | ||
(2) State employment of spouse, father, mother, son, or | ||
daughter,
including
contractual employment for services in | ||
the previous 2 years. |
(3) Elective status; the holding of elective office of | ||
the State of
Illinois, the government of the United States, | ||
any unit of local government
authorized by the Constitution | ||
of the State of Illinois or the statutes of the
State of | ||
Illinois currently or in the previous 3 years. | ||
(4) Relationship to anyone holding elective office | ||
currently or in the
previous 2 years; spouse, father, | ||
mother, son, or daughter. | ||
(5) Appointive office; the holding of any appointive | ||
government office of
the State of Illinois, the United | ||
States of America, or any unit of local
government | ||
authorized by the Constitution of the State of Illinois or | ||
the
statutes of the State of Illinois, which office | ||
entitles the holder to
compensation in excess of expenses | ||
incurred in the discharge of that office
currently or in | ||
the previous 3 years. | ||
(6) Relationship to anyone holding appointive office | ||
currently or in the
previous 2 years; spouse, father, | ||
mother, son, or daughter. | ||
(7) Employment, currently or in the previous 3 years, | ||
as or by any
registered lobbyist of the State government. | ||
(8) Relationship to anyone who is or was a registered | ||
lobbyist in the
previous 2 years; spouse, father, mother, | ||
son, or daughter. | ||
(9) Compensated employment, currently or in the | ||
previous 3 years, by any
registered election or re-election |
committee registered with the Secretary of
State or any | ||
county clerk in the State of Illinois, or any political | ||
action
committee registered with either the Secretary of | ||
State or the Federal Board of
Elections. | ||
(10) Relationship to anyone; spouse, father, mother, | ||
son, or daughter; who
is or was a compensated employee in | ||
the last 2 years of any registered
election or re-election | ||
committee registered with the Secretary of State or any
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county clerk in the State of Illinois, or any political | ||
action committee
registered with either the Secretary of | ||
State or the Federal Board of
Elections. | ||
(b-1) The disclosure required under this Section must also | ||
include the name and address of each lobbyist required to | ||
register under the Lobbyist Registration Act and other agent of | ||
the bidder or offeror who is not identified under subsections | ||
(a) and (b) and who has communicated, is communicating, or may | ||
communicate with any State officer or employee concerning the | ||
bid or offer. The disclosure under this subsection is a | ||
continuing obligation and must be promptly supplemented for | ||
accuracy throughout the process and throughout the term of the | ||
contract if the bid or offer is successful. | ||
(b-2) The disclosure required under this Section must also | ||
include, for each of the persons identified in subsection (b) | ||
or (b-1), each of the following that occurred within the | ||
previous 10 years: debarment from contracting with any | ||
governmental entity; professional licensure discipline; |
bankruptcies; adverse civil judgments and administrative | ||
findings; and criminal felony convictions. The disclosure | ||
under this subsection is a continuing obligation and must be | ||
promptly supplemented for accuracy throughout the process and | ||
throughout the term of the contract if the bid or offer is | ||
successful. | ||
(c) The disclosure in subsection (b) is not intended to | ||
prohibit or prevent
any
contract. The disclosure is meant to | ||
fully and publicly disclose any potential
conflict to the chief | ||
procurement officers, State purchasing officers, their
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designees, and executive officers so they may adequately | ||
discharge their duty
to protect the State. | ||
(d) When a potential for a conflict of interest is | ||
identified, discovered, or reasonably suspected, the chief | ||
procurement officer or State procurement officer shall send the | ||
contract to the Procurement Policy Board. The Board shall | ||
recommend, in writing, whether to allow or void the contract, | ||
bid, offer, or subcontract weighing the best interest of the | ||
State of Illinois. All recommendations shall be submitted to | ||
the chief procurement officer. The chief procurement officer | ||
must hold a public hearing if the Procurement Policy Board | ||
makes a recommendation to (i) void a contract or (ii) void a | ||
bid or offer and the chief procurement officer selected or | ||
intends to award the contract to the bidder or offeror. A chief | ||
procurement officer is prohibited from awarding a contract | ||
before a hearing if the Board recommendation does not support a |
bid or offer. The recommendation and proceedings of any | ||
hearing, if applicable, shall become part of the contract, bid, | ||
or proposal file and shall be available to the public. | ||
(e) These thresholds and disclosure do not relieve the | ||
chief procurement
officer, the State purchasing officer, or
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their designees from reasonable care and diligence for any | ||
contract, bid,
offer,
or proposal. The chief procurement | ||
officer, the State purchasing officer, or
their designees shall | ||
be
responsible for using any reasonably known and publicly | ||
available information
to
discover any undisclosed potential | ||
conflict of interest and act to protect the
best interest of | ||
the State of Illinois. | ||
(f) Inadvertent or accidental failure to fully disclose | ||
shall render the
contract, bid, proposal, subcontract, or | ||
relationship voidable by the chief procurement
officer if he or | ||
she deems it in
the best interest of the State of Illinois and, | ||
at his or her discretion, may
be cause for barring from future | ||
contracts, bids, proposals, subcontracts, or
relationships | ||
with the State for a period of up to 2 years. | ||
(g) Intentional, willful, or material failure to disclose | ||
shall render the
contract, bid, proposal, subcontract, or | ||
relationship voidable by the chief procurement
officer if he or | ||
she deems it in
the best interest of the State of Illinois and | ||
shall result in debarment from
future contracts, bids, | ||
proposals, subcontracts, or relationships for a period of not | ||
less
than 2 years and not more than 10 years. Reinstatement |
after 2 years and
before 10 years must be reviewed and | ||
commented on in writing by the Governor
of the State of | ||
Illinois, or by an executive ethics board or commission he or
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she
might designate. The comment shall be returned to the | ||
responsible chief
procurement officer who must
rule in writing | ||
whether and when to reinstate. | ||
(h) In addition, all disclosures shall note any other | ||
current or pending
contracts, proposals, subcontracts, leases, | ||
or other ongoing procurement relationships the
bidding, | ||
proposing, offering, or subcontracting entity has with any | ||
other unit of State
government and shall clearly identify the | ||
unit and the contract, proposal,
lease, or other relationship. | ||
(i) The contractor or bidder has a continuing obligation to | ||
supplement the disclosure required by this Section throughout | ||
the bidding process or during the term of any contract. | ||
(Source: P.A. 95-331, eff. 8-21-07; 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); 96-920, eff. 7-1-10.)
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Section 99. Effective date. This Act takes effect upon | ||
becoming law.
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