HB2408enr 98TH GENERAL ASSEMBLY

HB2408 Enrolled LRB098 06361 OMW 36403 b

AN ACT concerning finance.

Be it enacted by the People of the State of Illinois, represented in the General Assembly:

Section 5. The State Finance Act is amended by changing Section 6z-64 as follows:

(30 ILCS 105/6z-64)

Sec. 6z-64. The Workers' Compensation Revolving Fund.

(a) The Workers' Compensation Revolving Fund is created as a revolving fund, not subject to fiscal year limitations, in the State treasury. The following moneys shall be deposited into the Fund:

(1) amounts authorized for transfer to the Fund from the General Revenue Fund and other State funds (except for funds classified by the Comptroller as federal trust funds or State trust funds) pursuant to State law or Executive Order;

(2) federal funds received by the Department of Central Management Services (the "Department") as a result of expenditures from the Fund;

(3) interest earned on moneys in the Fund;

(4) receipts or inter-fund transfers resulting from billings issued to State agencies and universities for the cost of workers' compensation services that are not compensated through the specific fund transfers authorized by this Section, if any;

(5) amounts received from a State agency or university for workers' compensation payments for temporary total disability, as provided in Section 405-105 of the Department of Central Management Services Law of the Civil Administrative Code of Illinois; and

(6) amounts recovered through subrogation in workers' compensation and workers' occupational disease cases.

(b) Moneys in the Fund may be used by the Department for reimbursement or payment for:

(1) providing workers' compensation services to State agencies and State universities; or

(2) providing for payment of administrative and other expenses (and, beginning January 1, 2013, fees and charges made pursuant to a contract with a private vendor) incurred in providing workers' compensation services. The Department, or any successor agency designated to enter into contracts with one or more private vendors for the administration of the workers' compensation program for State employees pursuant to subsection 10b of Section 405-105 of the Department of Central Management Services Law of the Civil Administrative Code of Illinois, is authorized to establish one or more special funds, as separate accounts provided by any bank or banks as defined by the Illinois Banking Act, any savings and loan association or associations as defined by the Illinois Savings and Loan Act of 1985, or any credit union as defined by the Illinois Credit Union Act, to be held by the Director outside of the State treasury, for the purpose of receiving the transfer of moneys from the Workers' Compensation Revolving Fund. The Department may promulgate rules further defining the methodology for the transfers. Any interest earned by moneys in the funds or accounts shall be deposited into the Workers' Compensation Revolving Fund. The transferred moneys, and interest accrued thereon, shall be used exclusively for transfers to contracted private vendors or their financial institutions for payments to workers' compensation claimants and providers for workers' compensation services, claims, and benefits pursuant to this Section and subsection 9 of Section 405-105 of the Department of Central Management Services Law of the Civil Administrative Code of Illinois. The transferred moneys, and interest accrued thereon, shall not be used for any other purpose including, but not limited to, reimbursement or payment of administrative fees due the contracted vendor pursuant to its contract or contracts with the Department.

(c) State agencies may direct the Comptroller to process inter-fund transfers or make payment through the voucher and warrant process to the Workers' Compensation Revolving Fund in satisfaction of billings issued under subsection (a) of this Section.

(d) Reconciliation. For the fiscal year beginning on July 1, 2004 only, the Director of Central Management Services (the "Director") shall order that each State agency's payments and transfers made to the Fund be reconciled with actual Fund costs for workers' compensation services provided by the Department and attributable to the State agency and relevant fund on no less than an annual basis. The Director may require reports from State agencies as deemed necessary to perform this reconciliation.

(d-5) Notwithstanding any other provision of State law to the contrary, on or after July 1, 2005 and until June 30, 2006, in addition to any other transfers that may be provided for by law, at the direction of and upon notification of the Director of Central Management Services, the State Comptroller shall direct and the State Treasurer shall transfer amounts into the Workers' Compensation Revolving Fund from the designated funds not exceeding the following totals:

Mental Health Fund............................$17,694,000

Statistical Services Revolving Fund............$1,252,600

Department of Corrections Reimbursement

and Education Fund.........................$1,198,600

Communications Revolving Fund....................$535,400

Child Support Administrative Fund................$441,900

Health Insurance Reserve Fund....................$238,900

Fire Prevention Fund.............................$234,100

Park and Conservation Fund.......................$142,000

Motor Fuel Tax Fund..............................$132,800

Illinois Workers' Compensation

Commission Operations Fund...................$123,900

State Boating Act Fund...........................$112,300

Public Utility Fund..............................$106,500

State Lottery Fund...............................$101,300

Traffic and Criminal Conviction

Surcharge Fund................................$88,500

State Surplus Property Revolving Fund.............$82,700

Natural Areas Acquisition Fund....................$65,600

Securities Audit and Enforcement Fund.............$65,200

Agricultural Premium Fund.........................$63,400

Capital Development Fund..........................$57,500

State Gaming Fund.................................$54,300

Underground Storage Tank Fund.....................$53,700

Illinois State Medical Disciplinary Fund..........$53,000

Personal Property Tax Replacement Fund............$53,000

General Professions Dedicated Fund...............$51,900

Total $23,003,100

(d-10) Notwithstanding any other provision of State law to the contrary and in addition to any other transfers that may be provided for by law, on the first day of each calendar quarter of the fiscal year beginning July 1, 2005, or as soon as may be practical thereafter, the State Comptroller shall direct and the State Treasurer shall transfer from each designated fund into the Workers' Compensation Revolving Fund amounts equal to one-fourth of each of the following totals:

General Revenue Fund......................... $34,000,000

Road Fund.................................... $25,987,000

Total $59,987,000

(d-12) Notwithstanding any other provision of State law to the contrary and in addition to any other transfers that may be provided for by law, on the effective date of this amendatory Act of the 94th General Assembly, or as soon as may be practical thereafter, the State Comptroller shall direct and the State Treasurer shall transfer from each designated fund into the Workers' Compensation Revolving Fund the following amounts:

General Revenue Fund..........................$10,000,000

Road Fund......................................$5,000,000

Total $15,000,000

(d-15) Notwithstanding any other provision of State law to the contrary and in addition to any other transfers that may be provided for by law, on July 1, 2006, or as soon as may be practical thereafter, the State Comptroller shall direct and the State Treasurer shall transfer from each designated fund into the Workers' Compensation Revolving Fund the following amounts:

General Revenue Fund.........................$44,028,200

Road Fund....................................$28,084,000

Total $72,112,200

(d-20) Notwithstanding any other provision of State law to the contrary, on or after July 1, 2006 and until June 30, 2007, in addition to any other transfers that may be provided for by law, at the direction of and upon notification of the Director of Central Management Services, the State Comptroller shall direct and the State Treasurer shall transfer amounts into the Workers' Compensation Revolving Fund from the designated funds not exceeding the following totals:

Mental Health Fund............................$19,121,800

Statistical Services Revolving Fund............$1,353,700

Department of Corrections Reimbursement

and Education Fund.........................$1,295,300

Communications Revolving Fund....................$578,600

Child Support Administrative Fund................$477,600

Health Insurance Reserve Fund....................$258,200

Fire Prevention Fund.............................$253,000

Park and Conservation Fund.......................$153,500

Motor Fuel Tax Fund..............................$143,500

Illinois Workers' Compensation

Commission Operations Fund...................$133,900

State Boating Act Fund...........................$121,400

Public Utility Fund..............................$115,100

State Lottery Fund...............................$109,500

Traffic and Criminal Conviction Surcharge Fund....$95,700

State Surplus Property Revolving Fund.............$89,400

Natural Areas Acquisition Fund....................$70,800

Securities Audit and Enforcement Fund.............$70,400

Agricultural Premium Fund.........................$68,500

State Gaming Fund.................................$58,600

Underground Storage Tank Fund.....................$58,000

Illinois State Medical Disciplinary Fund..........$57,200

Personal Property Tax Replacement Fund............$57,200

General Professions Dedicated Fund...............$56,100

Total $24,797,000

(d-25) Notwithstanding any other provision of State law to the contrary and in addition to any other transfers that may be provided for by law, on July 1, 2009, or as soon as may be practical thereafter, the State Comptroller shall direct and the State Treasurer shall transfer from each designated fund into the Workers' Compensation Revolving Fund the following amounts:

General Revenue Fund.........................$55,000,000

Road Fund....................................$34,803,000

Total $89,803,000

(d-30) Notwithstanding any other provision of State law to the contrary, on or after July 1, 2009 and until June 30, 2010, in addition to any other transfers that may be provided for by law, at the direction of and upon notification of the Director of Central Management Services, the State Comptroller shall direct and the State Treasurer shall transfer amounts into the Workers' Compensation Revolving Fund from the designated funds not exceeding the following totals:

Food and Drug Safety Fund.........................$13,900

Teacher Certificate Fee Revolving Fund.............$6,500

Transportation Regulatory Fund....................$14,500

Financial Institution Fund........................$25,200

General Professions Dedicated Fund................$25,300

Illinois Veterans' Rehabilitation Fund............$64,600

State Boating Act Fund...........................$177,100

State Parks Fund.................................$104,300

Lobbyist Registration Administration Fund.........$14,400

Agricultural Premium Fund.........................$79,100

Fire Prevention Fund.............................$360,200

Mental Health Fund.............................$9,725,200

Illinois State Pharmacy Disciplinary Fund..........$5,600

Public Utility Fund...............................$40,900

Radiation Protection Fund.........................$14,200

Firearm Owner's Notification Fund..................$1,300

Solid Waste Management Fund.......................$74,100

Illinois Gaming Law Enforcement Fund..............$17,800

Subtitle D Management Fund........................$14,100

Illinois State Medical Disciplinary Fund..........$26,500

Facility Licensing Fund...........................$11,700

Plugging and Restoration Fund......................$9,100

Explosives Regulatory Fund.........................$2,300

Aggregate Operations Regulatory Fund...............$5,000

Coal Mining Regulatory Fund........................$1,900

Registered Certified Public Accountants'

Administration and Disciplinary Fund...........$1,500

Weights and Measures Fund.........................$56,100

Division of Corporations Registered

Limited Liability Partnership Fund.............$3,900

Illinois School Asbestos Abatement Fund...........$14,000

Secretary of State Special License Plate Fund.....$30,700

Capital Development Board Revolving Fund..........$27,000

DCFS Children's Services Fund.....................$69,300

Asbestos Abatement Fund...........................$17,200

Illinois Health Facilities Planning Fund..........$26,800

Emergency Public Health Fund.......................$5,600

Nursing Dedicated and Professional Fund...........$10,000

Optometric Licensing and Disciplinary

Board Fund.....................................$1,600

Underground Resources Conservation

Enforcement Fund..............................$11,500

Drunk and Drugged Driving Prevention Fund.........$18,200

Long Term Care Monitor/Receiver Fund..............$35,400

Community Water Supply Laboratory Fund.............$5,600

Securities Investors Education Fund................$2,000

Used Tire Management Fund.........................$32,400

Natural Areas Acquisition Fund...................$101,200

Open Space Lands Acquisition

and Development Fund..................$28,400

Working Capital Revolving Fund...................$489,100

State Garage Revolving Fund......................$791,900

Statistical Services Revolving Fund............$3,984,700

Communications Revolving Fund..................$1,432,800

Facilities Management Revolving Fund...........$1,911,600

Professional Services Fund.......................$483,600

Motor Vehicle Review Board Fund...................$15,000

Environmental Laboratory Certification Fund........$3,000

Public Health Laboratory Services

Revolving Fund.................................$2,500

Lead Poisoning Screening, Prevention,

and Abatement Fund............................$28,200

Securities Audit and Enforcement Fund............$258,400

Department of Business Services

Special Operations Fund......................$111,900

Feed Control Fund.................................$20,800

Tanning Facility Permit Fund.......................$5,400

Plumbing Licensure and Program Fund...............$24,400

Tax Compliance and Administration Fund............$27,200

Appraisal Administration Fund......................$2,400

Small Business Environmental Assistance Fund.......$2,200

Illinois State Fair Fund..........................$31,400

Secretary of State Special Services Fund.........$317,600

Department of Corrections Reimbursement

and Education Fund...........................$324,500

Health Facility Plan Review Fund..................$31,200

Illinois Historic Sites Fund......................$11,500

Attorney General Court Ordered and Voluntary

Compliance Payment Projects Fund..............$18,500

Public Pension Regulation Fund.....................$5,600

Illinois Charity Bureau Fund......................$11,400

Renewable Energy Resources Trust Fund..............$6,700

Energy Efficiency Trust Fund.......................$3,600

Pesticide Control Fund............................$56,800

Attorney General Whistleblower Reward

and Protection Fund...........................$14,200

Partners for Conservation Fund....................$36,900

Capital Litigation Trust Fund........................$800

Motor Vehicle License Plate Fund..................$99,700

Horse Racing Fund.................................$18,900

Death Certificate Surcharge Fund..................$12,800

Auction Regulation Administration Fund...............$500

Motor Carrier Safety Inspection Fund..............$55,800

Assisted Living and Shared Housing

Regulatory Fund..................................$900

Illinois Thoroughbred Breeders Fund................$9,200

Illinois Clean Water Fund.........................$42,300

Secretary of State DUI Administration Fund........$16,100

Child Support Administrative Fund..............$1,037,900

Secretary of State Police Services Fund............$1,200

Tourism Promotion Fund............................$34,400

IMSA Income Fund..................................$12,700

Presidential Library and Museum Operating Fund....$83,000

Dram Shop Fund....................................$44,500

Illinois State Dental Disciplinary Fund............$5,700

Cycle Rider Safety Training Fund...................$8,700

Traffic and Criminal Conviction Surcharge Fund...$106,100

Design Professionals Administration

and Investigation Fund.........................$4,500

State Police Services Fund.......................$276,100

Metabolic Screening and Treatment Fund............$90,800

Insurance Producer Administration Fund............$45,600

Coal Technology Development Assistance Fund.......$11,700

Hearing Instrument Dispenser Examining

and Disciplinary Fund..........................$1,900

Low-Level Radioactive Waste Facility

Development and Operation Fund.................$1,000

Environmental Protection Permit and

Inspection Fund...............................$66,900

Park and Conservation Fund.......................$199,300

Local Tourism Fund.................................$2,400

Illinois Capital Revolving Loan Fund..............$10,000

Large Business Attraction Fund.......................$100

Adeline Jay Geo-Karis Illinois Beach

Marina Fund...................................$27,200

Public Infrastructure Construction

Loan Revolving Fund............................$1,700

Insurance Financial Regulation Fund...............$69,200

Total $24,197,800

(d-35) Notwithstanding any other provision of State law to the contrary and in addition to any other transfers that may be provided for by law, on July 1, 2010, or as soon as may be practical thereafter, the State Comptroller shall direct and the State Treasurer shall transfer from each designated fund into the Workers' Compensation Revolving Fund the following amounts:

General Revenue Fund.........................$55,000,000

Road Fund....................................$50,955,300

Total $105,955,300

(d-40) Notwithstanding any other provision of State law to the contrary, on or after July 1, 2010 and until June 30, 2011, in addition to any other transfers that may be provided for by law, at the direction of and upon notification of the Director of Central Management Services, the State Comptroller shall direct and the State Treasurer shall transfer amounts into the Workers' Compensation Revolving Fund from the designated funds not exceeding the following totals:

Food and Drug Safety Fund.........................$8,700

Financial Institution Fund.......................$44,500

General Professions Dedicated Fund...............$51,400

Live and Learn Fund..............................$10,900

Illinois Veterans' Rehabilitation Fund..........$106,000

State Boating Act Fund..........................$288,200

State Parks Fund................................$185,900

Wildlife and Fish Fund........................$1,550,300

Lobbyist Registration Administration Fund........$18,100

Agricultural Premium Fund.......................$176,100

Mental Health Fund..............................$291,900

Firearm Owner's Notification Fund.................$2,300

Illinois Gaming Law Enforcement Fund.............$11,300

Illinois State Medical Disciplinary Fund.........$42,300

Facility Licensing Fund..........................$14,200

Plugging and Restoration Fund....................$15,600

Explosives Regulatory Fund........................$4,800

Aggregate Operations Regulatory Fund..............$6,000

Coal Mining Regulatory Fund.......................$7,200

Registered Certified Public Accountants'

Administration and Disciplinary Fund..........$1,900

Weights and Measures Fund.......................$105,200

Division of Corporations Registered

Limited Liability Partnership Fund............$5,300

Illinois School Asbestos Abatement Fund..........$19,900

Secretary of State Special License Plate Fund....$38,700

DCFS Children's Services Fund...................$123,100

Illinois Health Facilities Planning Fund.........$29,700

Emergency Public Health Fund......................$6,800

Nursing Dedicated and Professional Fund..........$13,500

Optometric Licensing and Disciplinary

Board Fund....................................$1,800

Underground Resources Conservation

Enforcement Fund.............................$16,500

Mandatory Arbitration Fund........................$5,400

Drunk and Drugged Driving Prevention Fund........$26,400

Long Term Care Monitor/Receiver Fund.............$43,800

Securities Investors Education Fund..............$28,500

Used Tire Management Fund.........................$6,300

Natural Areas Acquisition Fund..................$185,000

Open Space Lands Acquisition and

Development Fund.............................$46,800

Working Capital Revolving Fund..................$741,500

State Garage Revolving Fund.....................$356,200

Statistical Services Revolving Fund...........$1,775,900

Communications Revolving Fund...................$630,600

Facilities Management Revolving Fund............$870,800

Professional Services Fund......................$275,500

Motor Vehicle Review Board Fund..................$12,900

Public Health Laboratory Services

Revolving Fund................................$5,300

Lead Poisoning Screening, Prevention,

and Abatement Fund...........................$42,100

Securities Audit and Enforcement Fund...........$162,700

Department of Business Services

Special Operations Fund.....................$143,700

Feed Control Fund................................$32,300

Tanning Facility Permit Fund......................$3,900

Plumbing Licensure and Program Fund..............$32,600

Tax Compliance and Administration Fund...........$48,400

Appraisal Administration Fund.....................$3,600

Illinois State Fair Fund.........................$30,200

Secretary of State Special Services Fund........$214,400

Department of Corrections Reimbursement

and Education Fund..........................$438,300

Health Facility Plan Review Fund.................$29,900

Public Pension Regulation Fund....................$9,900

Pesticide Control Fund..........................$107,500

Partners for Conservation Fund..................$189,300

Motor Vehicle License Plate Fund................$143,800

Horse Racing Fund................................$20,900

Death Certificate Surcharge Fund.................$16,800

Auction Regulation Administration Fund............$1,000

Motor Carrier Safety Inspection Fund.............$56,800

Assisted Living and Shared Housing

Regulatory Fund...............................$2,200

Illinois Thoroughbred Breeders Fund..............$18,100

Secretary of State DUI Administration Fund.......$19,800

Child Support Administrative Fund.............$1,809,500

Secretary of State Police Services Fund...........$2,500

Medical Special Purposes Trust Fund..............$20,400

Dram Shop Fund...................................$57,200

Illinois State Dental Disciplinary Fund...........$9,500

Cycle Rider Safety Training Fund.................$12,200

Traffic and Criminal Conviction Surcharge Fund..$128,900

Design Professionals Administration

and Investigation Fund........................$7,300

State Police Services Fund......................$335,700

Metabolic Screening and Treatment Fund...........$81,600

Insurance Producer Administration Fund...........$77,000

Hearing Instrument Dispenser Examining

and Disciplinary Fund.........................$1,900

Park and Conservation Fund......................$361,500

Adeline Jay Geo-Karis Illinois Beach

Marina Fund..................................$42,800

Insurance Financial Regulation Fund.............$108,000

Total $13,033,200

(d-45) Notwithstanding any other provision of State law to the contrary and in addition to any other transfers that may be provided for by law, on July 1, 2011, or as soon as may be practical thereafter, the State Comptroller shall direct and the State Treasurer shall transfer the sum of $45,000,000 from the General Revenue Fund into the Workers' Compensation Revolving Fund.

(e) The term "workers' compensation services" means services, claims expenses, and related administrative costs incurred in performing the duties under Sections 405-105 and 405-411 of the Department of Central Management Services Law of the Civil Administrative Code of Illinois.

(Source: P.A. 96-45, eff. 7-15-09; 96-959, eff. 7-1-10; 97-641, eff. 12-19-11; 97-895, eff. 8-3-12.)

Section 10. The Illinois Procurement Code is amended by changing Section 45-57 as follows:

(30 ILCS 500/45-57)

Sec. 45-57. Veterans.

(a) Set-aside goal. It is the goal of the State to promote and encourage the continued economic development of small businesses owned and controlled by qualified veterans and that qualified service-disabled veteran-owned small businesses (referred to as SDVOSB) and veteran-owned small businesses (referred to as VOSB) participate in the State's procurement process as both prime contractors and subcontractors. Not less than 3% of the total dollar amount of State contracts, as defined by the Director of Central Management Services, shall be established as a goal to be awarded to SDVOSB and VOSB. That portion of a contract under which the contractor subcontracts with a SDVOSB or VOSB may be counted toward the goal of this subsection. The Department of Central Management Services shall adopt rules to implement compliance with this subsection by all State agencies.

(b) Fiscal year reports. By each September 1, each chief procurement officer shall report to the Department of Central Management Services on all of the following for the immediately preceding fiscal year, and by each March 1 the Department of Central Management Services shall compile and report that information to the General Assembly:

(1) The total number of VOSB, and the number of SDVOSB, who submitted bids for contracts under this Code.

(2) The total number of VOSB, and the number of SDVOSB, who entered into contracts with the State under this Code and the total value of those contracts.

(c) Yearly review and recommendations. Each year, each chief procurement officer shall review the progress of all State agencies under its jurisdiction in meeting the goal described in subsection (a), with input from statewide veterans' service organizations and from the business community, including businesses owned by qualified veterans, and shall make recommendations to be included in the Department of Central Management Services' report to the General Assembly regarding continuation, increases, or decreases of the percentage goal. The recommendations shall be based upon the number of businesses that are owned by qualified veterans and on the continued need to encourage and promote businesses owned by qualified veterans.

(d) Governor's recommendations. To assist the State in reaching the goal described in subsection (a), the Governor shall recommend to the General Assembly changes in programs to assist businesses owned by qualified veterans.

(e) Definitions. As used in this Section:

"Armed forces of the United States" means the United States Army, Navy, Air Force, Marine Corps, Coast Guard, or service in active duty as defined under 38 U.S.C. Section 101. Service in the Merchant Marine that constitutes active duty under Section 401 of federal Public Act 95-202 shall also be considered service in the armed forces for purposes of this Section.

"Certification" means a determination made by the Illinois Department of Veterans' Affairs and the Department of Central Management Services that a business entity is a qualified service-disabled veteran-owned small business or a qualified veteran-owned small business for whatever purpose. A SDVOSB or VOSB owned and controlled by females, minorities, or persons with disabilities, as those terms are defined in Section 2 of the Business Enterprise for Minorities, Females, and Persons with Disabilities Act, may also shall select and designate whether that business is to be certified as a "female-owned business", "minority-owned business", or "business owned by a person with a disability", as defined in Section 2 of the Business Enterprise for Minorities, Females, and Persons with Disabilities Act, or as a qualified SDVOSB or qualified VOSB under this Section.

"Control" means the exclusive, ultimate, majority, or sole control of the business, including but not limited to capital investment and all other financial matters, property, acquisitions, contract negotiations, legal matters, officer-director-employee selection and comprehensive hiring, operation responsibilities, cost-control matters, income and dividend matters, financial transactions, and rights of other shareholders or joint partners. Control shall be real, substantial, and continuing, not pro forma. Control shall include the power to direct or cause the direction of the management and policies of the business and to make the day-to-day as well as major decisions in matters of policy, management, and operations. Control shall be exemplified by possessing the requisite knowledge and expertise to run the particular business, and control shall not include simple majority or absentee ownership.

"Qualified service-disabled veteran" means a veteran who has been found to have 10% or more service-connected disability by the United States Department of Veterans Affairs or the United States Department of Defense.

"Qualified service-disabled veteran-owned small business" or "SDVOSB" means a small business (i) that is at least 51% owned by one or more qualified service-disabled veterans living in Illinois or, in the case of a corporation, at least 51% of the stock of which is owned by one or more qualified service-disabled veterans living in Illinois; (ii) that has its home office in Illinois; and (iii) for which items (i) and (ii) are factually verified annually by the Department of Central Management Services.

"Qualified veteran-owned small business" or "VOSB" means a small business (i) that is at least 51% owned by one or more qualified veterans living in Illinois or, in the case of a corporation, at least 51% of the stock of which is owned by one or more qualified veterans living in Illinois; (ii) that has its home office in Illinois; and (iii) for which items (i) and (ii) are factually verified annually by the Department of Central Management Services.

"Service-connected disability" means a disability incurred in the line of duty in the active military, naval, or air service as described in 38 U.S.C. 101(16).

"Small business" means a business that has annual gross sales of less than $75,000,000 as evidenced by the federal income tax return of the business. A firm with gross sales in excess of this cap may apply to the Department of Central Management Services for certification for a particular contract if the firm can demonstrate that the contract would have significant impact on SDVOSB or VOSB as suppliers or subcontractors or in employment of veterans or service-disabled veterans.

"State agency" has the same meaning as in Section 2 of the Business Enterprise for Minorities, Females, and Persons with Disabilities Act.

"Time of hostilities with a foreign country" means any period of time in the past, present, or future during which a declaration of war by the United States Congress has been or is in effect or during which an emergency condition has been or is in effect that is recognized by the issuance of a Presidential proclamation or a Presidential executive order and in which the armed forces expeditionary medal or other campaign service medals are awarded according to Presidential executive order.

"Veteran" means a person who (i) has been a member of the armed forces of the United States or, while a citizen of the United States, was a member of the armed forces of allies of the United States in time of hostilities with a foreign country and (ii) has served under one or more of the following conditions: (a) the veteran served a total of at least 6 months; (b) the veteran served for the duration of hostilities regardless of the length of the engagement; (c) the veteran was discharged on the basis of hardship; or (d) the veteran was released from active duty because of a service connected disability and was discharged under honorable conditions.

(f) Certification program. The Illinois Department of Veterans' Affairs and the Department of Central Management Services shall work together to devise a certification procedure to assure that businesses taking advantage of this Section are legitimately classified as qualified service-disabled veteran-owned small businesses or qualified veteran-owned small businesses.

(g) Penalties.

(1) Administrative penalties. The Department of Central Management Services shall suspend any person who commits a violation of Section 17-10.3 or subsection (d) of Section 33E-6 of the Criminal Code of 1961 or the Criminal Code of 2012 relating to this Section from bidding on, or participating as a contractor, subcontractor, or supplier in, any State contract or project for a period of not less than 3 years, and, if the person is certified as a service-disabled veteran-owned small business or a veteran-owned small business, then the Department shall revoke the business's certification for a period of not less than 3 years. An additional or subsequent violation shall extend the periods of suspension and revocation for a period of not less than 5 years. The suspension and revocation shall apply to the principals of the business and any subsequent business formed or financed by, or affiliated with, those principals.

(2) Reports of violations. Each State agency shall report any alleged violation of Section 17-10.3 or subsection (d) of Section 33E-6 of the Criminal Code of 1961 or the Criminal Code of 2012 relating to this Section to the Department of Central Management Services. The Department of Central Management Services shall subsequently report all such alleged violations to the Attorney General, who shall determine whether to bring a civil action against any person for the violation.

(3) List of suspended persons. The Department of Central Management Services shall monitor the status of all reported violations of Section 17-10.3 or subsection (d) of Section 33E-6 of the Criminal Code of 1961 or the Criminal Code of 2012 relating to this Section and shall maintain and make available to all State agencies a central listing of all persons that committed violations resulting in suspension.

(4) Use of suspended persons. During the period of a person's suspension under paragraph (1) of this subsection, a State agency shall not enter into any contract with that person or with any contractor using the services of that person as a subcontractor.

(5) Duty to check list. Each State agency shall check the central listing provided by the Department of Central Management Services under paragraph (3) of this subsection to verify that a person being awarded a contract by that State agency, or to be used as a subcontractor or supplier on a contract being awarded by that State agency, is not under suspension pursuant to paragraph (1) of this subsection.

(Source: P.A. 96-96, eff. 1-1-10; 97-260, eff. 8-5-11; 97-1150, eff. 1-25-13.)

Section 99. Effective date. This Act takes effect upon becoming law.