97TH GENERAL ASSEMBLY
State of Illinois
2011 and 2012
HB5067

 

Introduced 2/7/2012, by Rep. Daniel Biss

 

SYNOPSIS AS INTRODUCED:
 
30 ILCS 500/50-37

    Amends the Illinois Procurement Code. Provides that any business entity whose contracts with State agencies annually total more than $50,000 is prohibited from making any contributions to any political committees established to promote the candidacy of any State Senator or Representative in the General Assembly or any declared candidate for State Senator or Representative in the General Assembly for a certain period of time. Provides that any business entity whose aggregate bids and proposals on State contracts total more than $50,000 is prohibited from making any contributions to any political committee established to promote the candidacy of any State Senator or Representative in the General Assembly or any declared candidate for State Senator or Representative in the General Assembly during the period between the invitation for bids or request for proposals is issued and the day after the date the contract is awarded. Effective January 1, 2013.


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FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

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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 50-37 as follows:
 
6    (30 ILCS 500/50-37)
7    Sec. 50-37. Prohibition of political contributions.
8    (a) As used in this Section:
9        The terms "contract", "State contract", and "contract
10    with a State agency" each mean any contract, as defined in
11    this Code, between a business entity and a State agency let
12    or awarded pursuant to this Code. The terms "contract",
13    "State contract", and "contract with a State agency" do not
14    include cost reimbursement contracts; purchase of care
15    agreements as defined in Section 1-15.68 of this Code;
16    contracts for projects eligible for full or partial
17    federal-aid funding reimbursements authorized by the
18    Federal Highway Administration; grants, including but are
19    not limited to grants for job training or transportation;
20    and grants, loans, or tax credit agreements for economic
21    development purposes.
22        "Contribution" means a contribution as defined in
23    Section 9-1.4 of the Election Code.

 

 

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1        "Declared candidate" means a person who has filed a
2    statement of candidacy and petition for nomination or
3    election in the principal office of the State Board of
4    Elections.
5        "State agency" means and includes all boards,
6    commissions, agencies, institutions, authorities, and
7    bodies politic and corporate of the State, created by or in
8    accordance with the Illinois Constitution or State
9    statute, of the executive branch of State government and
10    does include colleges, universities, public employee
11    retirement systems, and institutions under the
12    jurisdiction of the governing boards of the University of
13    Illinois, Southern Illinois University, Illinois State
14    University, Eastern Illinois University, Northern Illinois
15    University, Western Illinois University, Chicago State
16    University, Governors State University, Northeastern
17    Illinois University, and the Illinois Board of Higher
18    Education.
19        "Officeholder" means the Governor, Lieutenant
20    Governor, Attorney General, Secretary of State,
21    Comptroller, or Treasurer. The Governor shall be
22    considered the officeholder responsible for awarding all
23    contracts by all officers and employees of, and vendors and
24    others doing business with, executive branch State
25    agencies under the jurisdiction of the Executive Ethics
26    Commission and not within the jurisdiction of the Attorney

 

 

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1    General, the Secretary of State, the Comptroller, or the
2    Treasurer.
3        "Sponsoring entity" means a sponsoring entity as
4    defined in Section 9-3 of the Election Code.
5        "Affiliated person" means (i) any person with any
6    ownership interest or distributive share of the bidding or
7    contracting business entity in excess of 7.5%, (ii)
8    executive employees of the bidding or contracting business
9    entity, and (iii) the spouse of any such persons.
10    "Affiliated person" does not include a person prohibited by
11    federal law from making contributions or expenditures in
12    connection with a federal, state, or local election.
13        "Affiliated entity" means (i) any corporate parent and
14    each operating subsidiary of the bidding or contracting
15    business entity, (ii) each operating subsidiary of the
16    corporate parent of the bidding or contracting business
17    entity, (iii) any organization recognized by the United
18    States Internal Revenue Service as a tax-exempt
19    organization described in Section 501(c) of the Internal
20    Revenue Code of 1986 (or any successor provision of federal
21    tax law) established by the bidding or contracting business
22    entity, any affiliated entity of that business entity, or
23    any affiliated person of that business entity, or (iv) any
24    political committee for which the bidding or contracting
25    business entity, or any 501(c) organization described in
26    item (iii) related to that business entity, is the

 

 

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1    sponsoring entity. "Affiliated entity" does not include an
2    entity prohibited by federal law from making contributions
3    or expenditures in connection with a federal, state, or
4    local election.
5        "Business entity" means any entity doing business for
6    profit, whether organized as a corporation, partnership,
7    sole proprietorship, limited liability company or
8    partnership, or otherwise.
9        "Executive employee" means (i) the President,
10    Chairman, or Chief Executive Officer of a business entity
11    and any other individual that fulfills equivalent duties as
12    the President, Chairman of the Board, or Chief Executive
13    Officer of a business entity; and (ii) any employee of a
14    business entity whose compensation is determined directly,
15    in whole or in part, by the award or payment of contracts
16    by a State agency to the entity employing the employee. A
17    regular salary that is paid irrespective of the award or
18    payment of a contract with a State agency shall not
19    constitute "compensation" under item (ii) of this
20    definition. "Executive employee" does not include any
21    person prohibited by federal law from making contributions
22    or expenditures in connection with a federal, state, or
23    local election.
24    (b) Any business entity whose contracts with State
25agencies, in the aggregate, annually total more than $50,000,
26and any affiliated entities or affiliated persons of such

 

 

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1business entity, are prohibited from making any contributions
2to any political committees established to promote the
3candidacy of (i) the officeholder responsible for awarding the
4contracts, or (ii) any other declared candidate for that office
5, (iii) any State Senator or Representative in the General
6Assembly, or (iv) any declared candidate for State Senator or
7Representative in the General Assembly. This prohibition shall
8be effective for the duration of the term of office of the
9incumbent officeholder awarding the contracts or for a period
10of 2 years following the expiration or termination of the
11contracts, whichever is longer.
12    (c) Any business entity whose aggregate pending bids and
13proposals on State contracts total more than $50,000, or whose
14aggregate pending bids and proposals on State contracts
15combined with the business entity's aggregate annual total
16value of State contracts exceed $50,000, and any affiliated
17entities or affiliated persons of such business entity, are
18prohibited from making any contributions to any political
19committee established to promote the candidacy of (i) the
20officeholder responsible for awarding the contract on which the
21business entity has submitted a bid or proposal, (ii) any State
22Senator or Representative in the General Assembly, or (iii) any
23declared candidate for State Senator or Representative in the
24General Assembly during the period beginning on the date the
25invitation for bids or request for proposals is issued and
26ending on the day after the date the contract is awarded.

 

 

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1    (c-5) For the purposes of the prohibitions under
2subsections (b) and (c) of this Section, (i) any contribution
3made to a political committee established to promote the
4candidacy of the Governor or a declared candidate for the
5office of Governor shall also be considered as having been made
6to a political committee established to promote the candidacy
7of the Lieutenant Governor, in the case of the Governor, or the
8declared candidate for Lieutenant Governor having filed a joint
9petition, or write-in declaration of intent, with the declared
10candidate for Governor, as applicable, and (ii) any
11contribution made to a political committee established to
12promote the candidacy of the Lieutenant Governor or a declared
13candidate for the office of Lieutenant Governor shall also be
14considered as having been made to a political committee
15established to promote the candidacy of the Governor, in the
16case of the Lieutenant Governor, or the declared candidate for
17Governor having filed a joint petition, or write-in declaration
18of intent, with the declared candidate for Lieutenant Governor,
19as applicable.
20    (d) All contracts between State agencies and a business
21entity that violate subsection (b) or (c) shall be voidable
22under Section 50-60. If a business entity violates subsection
23(b) 3 or more times within a 36-month period, then all
24contracts between State agencies and that business entity shall
25be void, and that business entity shall not bid or respond to
26any invitation to bid or request for proposals from any State

 

 

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1agency or otherwise enter into any contract with any State
2agency for 3 years from the date of the last violation. A
3notice of each violation and the penalty imposed shall be
4published in both the Procurement Bulletin and the Illinois
5Register.
6    (e) Any political committee that has received a
7contribution in violation of subsection (b) or (c) shall pay an
8amount equal to the value of the contribution to the State no
9more than 30 days after notice of the violation concerning the
10contribution appears in the Illinois Register. Payments
11received by the State pursuant to this subsection shall be
12deposited into the general revenue fund.
13(Source: P.A. 96-795, eff. 7-1-10 (see Section 5 of P.A. 96-793
14for the effective date of changes made by P.A. 96-795); 96-848,
15eff. 1-1-10; 97-411, eff. 8-16-11.)
 
16    Section 99. Effective date. This Act takes effect January
171, 2013.