98TH GENERAL ASSEMBLY
State of Illinois
2013 and 2014
SB2382

 

Introduced 2/15/2013, by Sen. Christine Radogno

 

SYNOPSIS AS INTRODUCED:
 
30 ILCS 500/50-37

    Amends the Illinois Procurement Code. Prohibits campaign contributions from grantees with pending or actual annual aggregate awards of State grant funds totalling more than $50,000, or from the affiliated entities and affiliated persons of such grantees, to any political committees established to promote the candidacy of (i) the executive branch constitutional officeholder responsible for awarding the grant funds or (ii) a declared candidate for that office. Specifies the duration of the prohibitions and the penalties for violations.


LRB098 08315 JDS 38420 b

 

 

A BILL FOR

 

SB2382LRB098 08315 JDS 38420 b

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 in excess of 7.5%
7    of the bidding or contracting business entity or the
8    grantee, whichever is applicable in excess of 7.5%, (ii)
9    executive employees of the bidding or contracting business
10    entity or the grantee, whichever is applicable, and (iii)
11    the spouse of any such persons. "Affiliated person" does
12    not include a person prohibited by federal law from making
13    contributions or expenditures in connection with a
14    federal, state, or local election.
15        "Affiliated entity" means (i) any corporate parent and
16    each operating subsidiary of the bidding or contracting
17    business entity or the grantee, whichever is applicable,
18    (ii) each operating subsidiary of the corporate parent of
19    the bidding or contracting business entity or the grantee,
20    whichever is applicable, (iii) any organization recognized
21    by the United States Internal Revenue Service as a
22    tax-exempt organization described in Section 501(c) of the
23    Internal Revenue Code of 1986 (or any successor provision
24    of federal tax law) established by the bidding or
25    contracting business entity or the grantee, whichever is
26    applicable, any affiliated entity of that business entity

 

 

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1    or grantee, whichever is applicable, or any affiliated
2    person of that business entity or grantee, whichever is
3    applicable, or (iv) any political committee for which the
4    bidding or contracting business entity or the grantee, or
5    any 501(c) organization described in item (iii) related to
6    that business entity or grantee, is the sponsoring entity.
7    "Affiliated entity" does not include an entity prohibited
8    by federal law from making contributions or expenditures in
9    connection with a federal, state, or local election.
10        "Business entity" means any entity doing business for
11    profit, whether organized as a corporation, partnership,
12    sole proprietorship, limited liability company or
13    partnership, or otherwise.
14        "Executive employee" means (i) the President,
15    Chairman, or Chief Executive Officer of a business entity
16    or grantee, as well as and any other individual that
17    fulfills equivalent duties as the President, Chairman of
18    the Board, or Chief Executive Officer of a business entity
19    or grantee; and (ii) any employee of a business entity or
20    grantee whose compensation is determined directly, in
21    whole or in part, by the award or payment of contracts or
22    grant funds by a State agency to the entity employing the
23    employee. A regular salary that is paid irrespective of the
24    award or payment of grant funds from, or a contract with, a
25    State agency shall not constitute "compensation" under
26    item (ii) of this definition. "Executive employee" does not

 

 

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1    include any person prohibited by federal law from making
2    contributions or expenditures in connection with a
3    federal, state, or local election.
4        "Grant funds" has the meaning established in
5    subsection (b) of Section 2 of the Illinois Grant Funds
6    Recovery Act.
7        "Grantee" means any entity that applies for or receives
8    grant funds from a State agency, whether organized as a
9    corporation, partnership, sole proprietorship, limited
10    liability company or partnership, or otherwise.
11    (b) Any business entity whose contracts with State
12agencies, in the aggregate, annually total more than $50,000,
13and any affiliated entities or affiliated persons of such
14business entity, are prohibited from making any contributions
15to any political committees established to promote the
16candidacy of (i) the officeholder responsible for awarding the
17contracts or (ii) any other declared candidate for that office.
18This prohibition shall be effective for the duration of the
19term of office of the incumbent officeholder awarding the
20contracts or for a period of 2 years following the expiration
21or termination of the contracts, whichever is longer.
22    (b-1) Any grantee whose awards of grant funds from State
23agencies, in the aggregate, annually total more than $50,000,
24as well as any affiliated entity or affiliated person of the
25grantee, is prohibited from making any contributions to any
26political committees established to promote the candidacy of

 

 

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

 

 

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1promote the candidacy of the officeholder responsible for
2awarding the grant funds for which the grantee has submitted an
3application during the period beginning on the date the award
4of grant funds is announced and ending on the day after the
5date the grant funds are awarded.
6    (c-5) For the purposes of the prohibitions under
7subsections (b), (b-1), and (c), and (c-1) of this Section, (i)
8any contribution made to a political committee established to
9promote the candidacy of the Governor or a declared candidate
10for the office of Governor shall also be considered as having
11been made to a political committee established to promote the
12candidacy of the Lieutenant Governor, in the case of the
13Governor, or the declared candidate for Lieutenant Governor
14having filed a joint petition, or write-in declaration of
15intent, with the declared candidate for Governor, as
16applicable, and (ii) any contribution made to a political
17committee established to promote the candidacy of the
18Lieutenant Governor or a declared candidate for the office of
19Lieutenant Governor shall also be considered as having been
20made to a political committee established to promote the
21candidacy of the Governor, in the case of the Lieutenant
22Governor, or the declared candidate for Governor having filed a
23joint petition, or write-in declaration of intent, with the
24declared candidate for Lieutenant Governor, as applicable.
25    (d) All contracts between State agencies and a business
26entity that violate subsection (b) or (c) shall be voidable

 

 

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1under Section 50-60, and all awards of grant funds by State
2agency to a grant recipient entity that violate subsection
3(b-1) or (c-1) shall also be voidable. If a business entity
4violates subsection (b) 3 or more times within a 36-month
5period, then all contracts between State agencies and that
6business entity shall be void, and that business entity shall
7not bid or respond to any invitation to bid or request for
8proposals from any State agency or otherwise enter into any
9contract with any State agency for 3 years from the date of the
10last violation. If a grantee violates subsection (b-1) 3 or
11more times within a 36-month period, then all awards of grant
12funds between State agencies and that grantee shall be void,
13and that grantee shall not apply for any award of grant funds
14from any State agency for 3 years from the date of the last
15violation. A notice of each violation and the penalty imposed
16shall be published in both the Procurement Bulletin and the
17Illinois Register.
18    
19    (e) Any political committee that has received a
20contribution in violation of subsection (b), (b-1), or (c) , or
21(c-1) shall pay an amount equal to the value of the
22contribution to the State no more than 30 days after notice of
23the violation concerning the contribution appears in the
24Illinois Register. Payments received by the State pursuant to
25this subsection shall be deposited into the general revenue
26fund.

 

 

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1(Source: P.A. 96-795, eff. 7-1-10 (see Section 5 of P.A. 96-793
2for the effective date of changes made by P.A. 96-795); 96-848,
3eff. 1-1-10; 97-411, eff. 8-16-11.)