Sen. Michael E. Hastings

Filed: 4/25/2017

 

 


 

 


 
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1
AMENDMENT TO SENATE BILL 1620

2    AMENDMENT NO. ______. Amend Senate Bill 1620 by replacing
3everything after the enacting clause with the following:
 
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) Set-aside goal. It is the goal of the State to promote
9and encourage the continued economic development of small
10businesses owned and controlled by qualified veterans and that
11qualified 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
14process as both prime contractors and subcontractors. Not less
15than 3% of the total dollar amount of State contracts, as
16defined by the Director of Central Management Services, shall

 

 

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1be established as a goal to be awarded to SDVOSB and VOSB. That
2portion of a contract under which the contractor subcontracts
3with a SDVOSB or VOSB may be counted toward the goal of this
4subsection. The Department of Central Management Services
5shall adopt rules to implement compliance with this subsection
6by all State agencies.
7    (b) Fiscal year reports. By each September 1, each chief
8procurement officer shall report to the Department of Central
9Management Services on all of the following for the immediately
10preceding fiscal year, and by each March 1 the Department of
11Central Management Services shall compile and report that
12information to the General Assembly:
13        (1) The total number of VOSB, and the number of SDVOSB,
14    who submitted bids for contracts under this Code.
15        (2) The total number of VOSB, and the number of SDVOSB,
16    who entered into contracts with the State under this Code
17    and the total value of those contracts.
18    (c) Yearly review and recommendations. Each year, each
19chief procurement officer shall review the progress of all
20State agencies under its jurisdiction in meeting the goal
21described in subsection (a), with input from statewide
22veterans' service organizations and from the business
23community, including businesses owned by qualified veterans,
24and shall make recommendations to be included in the Department
25of Central Management Services' report to the General Assembly
26regarding continuation, increases, or decreases of the

 

 

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1percentage goal. The recommendations shall be based upon the
2number of businesses that are owned by qualified veterans and
3on the continued need to encourage and promote businesses owned
4by qualified veterans.
5    (d) Governor's recommendations. To assist the State in
6reaching the goal described in subsection (a), the Governor
7shall recommend to the General Assembly changes in programs to
8assist businesses owned by qualified veterans.
9    (e) Definitions. As used in this Section:
10    "Armed forces of the United States" means the United States
11Army, Navy, Air Force, Marine Corps, Coast Guard, or service in
12active duty as defined under 38 U.S.C. Section 101. Service in
13the Merchant Marine that constitutes active duty under Section
14401 of federal Public Act 95-202 shall also be considered
15service in the armed forces for purposes of this Section.
16    "Certification" means: (1) a determination made by the
17Illinois Department of Veterans' Affairs and the Department of
18Central Management Services that a business entity is a
19qualified service-disabled veteran-owned small business or a
20qualified veteran-owned small business for whatever purpose;
21or (2) a certification made by an authorized official of Cook
22County under that county's veteran-owned business program or
23programs at least 60 days after the effective date of this
24amendatory Act of the 100th General Assembly, provided that, no
25less than 30 days after the effective date of this amendatory
26Act of the 100th General Assembly, and on an annual basis

 

 

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1thereafter, that county official certifies to the Department of
2Veterans' Affairs that Cook County's certification standards
3do not conflict with the requirements of this Code, and further
4provided that upon issuing the certification, the county
5official immediately or as soon as practicable notifies the
6Department of Central Management Services of the fact and
7nature of the certification. A SDVOSB or VOSB owned and
8controlled by females, minorities, or persons with
9disabilities, as those terms are defined in Section 2 of the
10Business Enterprise for Minorities, Females, and Persons with
11Disabilities Act, may also select and designate whether that
12business is to be certified as a "female-owned business",
13"minority-owned business", or "business owned by a person with
14a disability", as defined in Section 2 of the Business
15Enterprise for Minorities, Females, and Persons with
16Disabilities Act.
17    "Control" means the exclusive, ultimate, majority, or sole
18control of the business, including but not limited to capital
19investment and all other financial matters, property,
20acquisitions, contract negotiations, legal matters,
21officer-director-employee selection and comprehensive hiring,
22operation responsibilities, cost-control matters, income and
23dividend matters, financial transactions, and rights of other
24shareholders or joint partners. Control shall be real,
25substantial, and continuing, not pro forma. Control shall
26include the power to direct or cause the direction of the

 

 

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1management and policies of the business and to make the
2day-to-day as well as major decisions in matters of policy,
3management, and operations. Control shall be exemplified by
4possessing the requisite knowledge and expertise to run the
5particular business, and control shall not include simple
6majority or absentee ownership.
7    "Qualified service-disabled veteran" means a veteran who
8has been found to have 10% or more service-connected disability
9by the United States Department of Veterans Affairs or the
10United States Department of Defense.
11    "Qualified service-disabled veteran-owned small business"
12or "SDVOSB" means a small business (i) that is at least 51%
13owned by one or more qualified service-disabled veterans living
14in Illinois or, in the case of a corporation, at least 51% of
15the stock of which is owned by one or more qualified
16service-disabled veterans living in Illinois; (ii) that has its
17home office in Illinois; and (iii) for which items (i) and (ii)
18are factually verified annually by the Department of Central
19Management Services.
20    "Qualified veteran-owned small business" or "VOSB" means a
21small business (i) that is at least 51% owned by one or more
22qualified veterans living in Illinois or, in the case of a
23corporation, at least 51% of the stock of which is owned by one
24or more qualified veterans living in Illinois; (ii) that has
25its home office in Illinois; and (iii) for which items (i) and
26(ii) are factually verified annually by the Department of

 

 

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1Central Management Services.
2    "Service-connected disability" means a disability incurred
3in the line of duty in the active military, naval, or air
4service as described in 38 U.S.C. 101(16).
5    "Small business" means a business that has annual gross
6sales of less than $75,000,000 as evidenced by the federal
7income tax return of the business. A firm with gross sales in
8excess of this cap may apply to the Department of Central
9Management Services for certification for a particular
10contract if the firm can demonstrate that the contract would
11have significant impact on SDVOSB or VOSB as suppliers or
12subcontractors or in employment of veterans or
13service-disabled veterans.
14    "State agency" has the same meaning as in Section 2 of the
15Business Enterprise for Minorities, Females, and Persons with
16Disabilities Act.
17    "Time of hostilities with a foreign country" means any
18period of time in the past, present, or future during which a
19declaration of war by the United States Congress has been or is
20in effect or during which an emergency condition has been or is
21in effect that is recognized by the issuance of a Presidential
22proclamation or a Presidential executive order and in which the
23armed forces expeditionary medal or other campaign service
24medals are awarded according to Presidential executive order.
25    "Veteran" means a person who (i) has been a member of the
26armed forces of the United States or, while a citizen of the

 

 

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1United States, was a member of the armed forces of allies of
2the United States in time of hostilities with a foreign country
3and (ii) has served under one or more of the following
4conditions: (a) the veteran served a total of at least 6
5months; (b) the veteran served for the duration of hostilities
6regardless of the length of the engagement; (c) the veteran was
7discharged on the basis of hardship; or (d) the veteran was
8released from active duty because of a service connected
9disability and was discharged under honorable conditions.
10    (f) Certification program. The Illinois Department of
11Veterans' Affairs and the Department of Central Management
12Services shall work together to devise a certification
13procedure to assure that businesses taking advantage of this
14Section are legitimately classified as qualified
15service-disabled veteran-owned small businesses or qualified
16veteran-owned small businesses.
17    (f-5) Cook County certification program.
18        (1) If, no less than 30 days after the effective date
19    of this amendatory Act of the 100th General Assembly and on
20    an annual basis thereafter, an authorized Cook County
21    official certifies to the Department of Veterans' Affairs
22    that Cook County's certification standards relative to its
23    veteran-owned business program or programs continue to
24    meet the requirements of this Act, the Department of
25    Central Management Services shall, through its website and
26    other online and print materials, with an authorized

 

 

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1    official of Cook County: (i) notify parties seeking
2    certification under this Code that, if they are based in
3    Cook County, they may seek and obtain certification under
4    this Act by seeking and obtaining certification under the
5    county's veteran-owned business program or programs; (ii)
6    provide the parties with a website that immediately gives
7    them access to Cook County's program or programs; and (iii)
8    ensure that parties who obtain certification under Cook
9    County's program or program are immediately registered
10    with the State as certified and qualified businesses under
11    this Code.
12        (2) Within available appropriations, the Department of
13    Central Management Services shall, by way of an annual
14    intergovernmental agreement, contribute a sum as is agreed
15    to by the parties to support efforts on the part of Cook
16    County to certify eligible veteran business enterprises on
17    behalf of the State and the county. Those efforts shall
18    include: (i) providing ongoing outreach through online
19    marketing and publicity; (ii) developing, organizing, and
20    hosting outreach events each year in the county; and (iii)
21    providing regular technical support.
22    (g) Penalties.
23        (1) Administrative penalties. The chief procurement
24    officers appointed pursuant to Section 10-20 shall suspend
25    any person who commits a violation of Section 17-10.3 or
26    subsection (d) of Section 33E-6 of the Criminal Code of

 

 

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

 

 

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1    1961 or the Criminal Code of 2012 relating to this Section
2    and shall maintain and make available to all State agencies
3    a central listing of all persons that committed violations
4    resulting in suspension.
5        (4) Use of suspended persons. During the period of a
6    person's suspension under paragraph (1) of this
7    subsection, a State agency shall not enter into any
8    contract with that person or with any contractor using the
9    services of that person as a subcontractor.
10        (5) Duty to check list. Each State agency shall check
11    the central listing provided by the chief procurement
12    officers appointed pursuant to Section 10-20 under
13    paragraph (3) of this subsection to verify that a person
14    being awarded a contract by that State agency, or to be
15    used as a subcontractor or supplier on a contract being
16    awarded by that State agency, is not under suspension
17    pursuant to paragraph (1) of this subsection.
18(Source: P.A. 97-260, eff. 8-5-11; 97-1150, eff. 1-25-13;
1998-307, eff. 8-12-13; 98-1076, eff. 1-1-15.)
 
20    Section 99. Effective date. This Act takes effect upon
21becoming law.".