Illinois General Assembly - Full Text of HB2408

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Full Text of HB2408 98th General Assembly

Introduced   Engrossed   Enrolled
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Senate Amendment 003
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HB2408sam003 98TH GENERAL ASSEMBLY
Sen. Michael E. Hastings
Filed: 5/13/2013

09800HB2408sam003 LRB098 06361 OMW 45812 a

1 AMENDMENT TO HOUSE BILL 2408
2     AMENDMENT NO. ______. Amend House Bill 2408 by replacing
3 everything after the enacting clause with the following:

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

6     (30 ILCS 105/6z-64)
7     Sec. 6z-64. The Workers' Compensation Revolving Fund.
8     (a) The Workers' Compensation Revolving Fund is created as
9 a revolving fund, not subject to fiscal year limitations, in
10 the State treasury. The following moneys shall be deposited
11 into the Fund:
12         (1) amounts authorized for transfer to the Fund from
13     the General Revenue Fund and other State funds (except for
14     funds classified by the Comptroller as federal trust funds
15     or State trust funds) pursuant to State law or Executive
16     Order;

09800HB2408sam003 - 2 - LRB098 06361 OMW 45812 a

1         (2) federal funds received by the Department of Central
2     Management Services (the "Department") as a result of
3     expenditures from the Fund;
4         (3) interest earned on moneys in the Fund;
5         (4) receipts or inter-fund transfers resulting from
6     billings issued to State agencies and universities for the
7     cost of workers' compensation services that are not
8     compensated through the specific fund transfers authorized
9     by this Section, if any;
10         (5) amounts received from a State agency or university
11     for workers' compensation payments for temporary total
12     disability, as provided in Section 405-105 of the
13     Department of Central Management Services Law of the Civil
14     Administrative Code of Illinois; and
15         (6) amounts recovered through subrogation in workers'
16     compensation and workers' occupational disease cases.
17     (b) Moneys in the Fund may be used by the Department for
18 reimbursement or payment for:
19         (1) providing workers' compensation services to State
20     agencies and State universities; or
21         (2) providing for payment of administrative and other
22     expenses (and, beginning January 1, 2013, fees and charges
23     made pursuant to a contract with a private vendor) incurred
24     in providing workers' compensation services. The
25     Department, or any successor agency designated to enter
26     into contracts with one or more private vendors for the

09800HB2408sam003 - 3 - LRB098 06361 OMW 45812 a

1     administration of the workers' compensation program for
2     State employees pursuant to subsection 10b of Section
3     405-105 of the Department of Central Management Services
4     Law of the Civil Administrative Code of Illinois, is
5     authorized to establish one or more special funds, as
6     separate accounts provided by any bank or banks as defined
7     by the Illinois Banking Act, any savings and loan
8     association or associations as defined by the Illinois
9     Savings and Loan Act of 1985, or any credit union as
10     defined by the Illinois Credit Union Act, to be held by the
11     Director outside of the State treasury, for the purpose of
12     receiving the transfer of moneys from the Workers'
13     Compensation Revolving Fund. The Department may promulgate
14     rules further defining the methodology for the transfers.
15     Any interest earned by moneys in the funds or accounts
16     shall be deposited into the Workers' Compensation
17     Revolving Fund. The transferred moneys, and interest
18     accrued thereon, shall be used exclusively for transfers to
19     contracted private vendors or their financial institutions
20     for payments to workers' compensation claimants and
21     providers for workers' compensation services, claims, and
22     benefits pursuant to this Section and subsection 9 of
23     Section 405-105 of the Department of Central Management
24     Services Law of the Civil Administrative Code of Illinois.
25     The transferred moneys, and interest accrued thereon,
26     shall not be used for any other purpose including, but not

09800HB2408sam003 - 4 - LRB098 06361 OMW 45812 a

1     limited to, reimbursement or payment of administrative
2     fees due the contracted vendor pursuant to its contract or
3     contracts with the Department.
4     (c) State agencies may direct the Comptroller to process
5 inter-fund transfers or make payment through the voucher and
6 warrant process to the Workers' Compensation Revolving Fund in
7 satisfaction of billings issued under subsection (a) of this
8 Section.
9     (d) Reconciliation. For the fiscal year beginning on July
10 1, 2004 only, the Director of Central Management Services (the
11 "Director") shall order that each State agency's payments and
12 transfers made to the Fund be reconciled with actual Fund costs
13 for workers' compensation services provided by the Department
14 and attributable to the State agency and relevant fund on no
15 less than an annual basis. The Director may require reports
16 from State agencies as deemed necessary to perform this
17 reconciliation.
18     (d-5) Notwithstanding any other provision of State law to
19 the contrary, on or after July 1, 2005 and until June 30, 2006,
20 in addition to any other transfers that may be provided for by
21 law, at the direction of and upon notification of the Director
22 of Central Management Services, the State Comptroller shall
23 direct and the State Treasurer shall transfer amounts into the
24 Workers' Compensation Revolving Fund from the designated funds
25 not exceeding the following totals:
26     Mental Health Fund............................$17,694,000

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1     Statistical Services Revolving Fund............$1,252,600
2     Department of Corrections Reimbursement
3         and Education Fund.........................$1,198,600
4     Communications Revolving Fund....................$535,400
5     Child Support Administrative Fund................$441,900
6     Health Insurance Reserve Fund....................$238,900
7     Fire Prevention Fund.............................$234,100
8     Park and Conservation Fund.......................$142,000
9     Motor Fuel Tax Fund..............................$132,800
10     Illinois Workers' Compensation
11         Commission Operations Fund...................$123,900
12     State Boating Act Fund...........................$112,300
13     Public Utility Fund..............................$106,500
14     State Lottery Fund...............................$101,300
15     Traffic and Criminal Conviction
16         Surcharge Fund................................$88,500
17     State Surplus Property Revolving Fund.............$82,700
18     Natural Areas Acquisition Fund....................$65,600
19     Securities Audit and Enforcement Fund.............$65,200
20     Agricultural Premium Fund.........................$63,400
21     Capital Development Fund..........................$57,500
22     State Gaming Fund.................................$54,300
23     Underground Storage Tank Fund.....................$53,700
24     Illinois State Medical Disciplinary Fund..........$53,000
25     Personal Property Tax Replacement Fund............$53,000
26     General Professions Dedicated Fund...............$51,900

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1     Total                                        $23,003,100
2     (d-10) Notwithstanding any other provision of State law to
3 the contrary and in addition to any other transfers that may be
4 provided for by law, on the first day of each calendar quarter
5 of the fiscal year beginning July 1, 2005, or as soon as may be
6 practical thereafter, the State Comptroller shall direct and
7 the State Treasurer shall transfer from each designated fund
8 into the Workers' Compensation Revolving Fund amounts equal to
9 one-fourth of each of the following totals:
10     General Revenue Fund......................... $34,000,000
11     Road Fund.................................... $25,987,000
12     Total                                       $59,987,000
13     (d-12) Notwithstanding any other provision of State law to
14 the contrary and in addition to any other transfers that may be
15 provided for by law, on the effective date of this amendatory
16 Act of the 94th General Assembly, or as soon as may be
17 practical thereafter, the State Comptroller shall direct and
18 the State Treasurer shall transfer from each designated fund
19 into the Workers' Compensation Revolving Fund the following
20 amounts:
21     General Revenue Fund..........................$10,000,000
22     Road Fund......................................$5,000,000
23     Total                                        $15,000,000
24     (d-15) Notwithstanding any other provision of State law to
25 the contrary and in addition to any other transfers that may be
26 provided for by law, on July 1, 2006, or as soon as may be

09800HB2408sam003 - 7 - LRB098 06361 OMW 45812 a

1 practical thereafter, the State Comptroller shall direct and
2 the State Treasurer shall transfer from each designated fund
3 into the Workers' Compensation Revolving Fund the following
4 amounts:
5     General Revenue Fund.........................$44,028,200
6     Road Fund....................................$28,084,000
7     Total                                        $72,112,200
8     (d-20) Notwithstanding any other provision of State law to
9 the contrary, on or after July 1, 2006 and until June 30, 2007,
10 in addition to any other transfers that may be provided for by
11 law, at the direction of and upon notification of the Director
12 of Central Management Services, the State Comptroller shall
13 direct and the State Treasurer shall transfer amounts into the
14 Workers' Compensation Revolving Fund from the designated funds
15 not exceeding the following totals:
16     Mental Health Fund............................$19,121,800
17     Statistical Services Revolving Fund............$1,353,700
18     Department of Corrections Reimbursement
19         and Education Fund.........................$1,295,300
20     Communications Revolving Fund....................$578,600
21     Child Support Administrative Fund................$477,600
22     Health Insurance Reserve Fund....................$258,200
23     Fire Prevention Fund.............................$253,000
24     Park and Conservation Fund.......................$153,500
25     Motor Fuel Tax Fund..............................$143,500
26     Illinois Workers' Compensation

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1         Commission Operations Fund...................$133,900
2     State Boating Act Fund...........................$121,400
3     Public Utility Fund..............................$115,100
4     State Lottery Fund...............................$109,500
5     Traffic and Criminal Conviction Surcharge Fund....$95,700
6     State Surplus Property Revolving Fund.............$89,400
7     Natural Areas Acquisition Fund....................$70,800
8     Securities Audit and Enforcement Fund.............$70,400
9     Agricultural Premium Fund.........................$68,500
10     State Gaming Fund.................................$58,600
11     Underground Storage Tank Fund.....................$58,000
12     Illinois State Medical Disciplinary Fund..........$57,200
13     Personal Property Tax Replacement Fund............$57,200
14     General Professions Dedicated Fund...............$56,100
15     Total                                        $24,797,000
16     (d-25) Notwithstanding any other provision of State law to
17 the contrary and in addition to any other transfers that may be
18 provided for by law, on July 1, 2009, or as soon as may be
19 practical thereafter, the State Comptroller shall direct and
20 the State Treasurer shall transfer from each designated fund
21 into the Workers' Compensation Revolving Fund the following
22 amounts:
23     General Revenue Fund.........................$55,000,000
24     Road Fund....................................$34,803,000
25     Total                                        $89,803,000
26     (d-30) Notwithstanding any other provision of State law to

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1 the contrary, on or after July 1, 2009 and until June 30, 2010,
2 in addition to any other transfers that may be provided for by
3 law, at the direction of and upon notification of the Director
4 of Central Management Services, the State Comptroller shall
5 direct and the State Treasurer shall transfer amounts into the
6 Workers' Compensation Revolving Fund from the designated funds
7 not exceeding the following totals:
8     Food and Drug Safety Fund.........................$13,900
9     Teacher Certificate Fee Revolving Fund.............$6,500
10     Transportation Regulatory Fund....................$14,500
11     Financial Institution Fund........................$25,200
12     General Professions Dedicated Fund................$25,300
13     Illinois Veterans' Rehabilitation Fund............$64,600
14     State Boating Act Fund...........................$177,100
15     State Parks Fund.................................$104,300
16     Lobbyist Registration Administration Fund.........$14,400
17     Agricultural Premium Fund.........................$79,100
18     Fire Prevention Fund.............................$360,200
19     Mental Health Fund.............................$9,725,200
20     Illinois State Pharmacy Disciplinary Fund..........$5,600
21     Public Utility Fund...............................$40,900
22     Radiation Protection Fund.........................$14,200
23     Firearm Owner's Notification Fund..................$1,300
24     Solid Waste Management Fund.......................$74,100
25     Illinois Gaming Law Enforcement Fund..............$17,800
26     Subtitle D Management Fund........................$14,100

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1     Illinois State Medical Disciplinary Fund..........$26,500
2     Facility Licensing Fund...........................$11,700
3     Plugging and Restoration Fund......................$9,100
4     Explosives Regulatory Fund.........................$2,300
5     Aggregate Operations Regulatory Fund...............$5,000
6     Coal Mining Regulatory Fund........................$1,900
7     Registered Certified Public Accountants'
8         Administration and Disciplinary Fund...........$1,500
9     Weights and Measures Fund.........................$56,100
10     Division of Corporations Registered
11         Limited Liability Partnership Fund.............$3,900
12     Illinois School Asbestos Abatement Fund...........$14,000
13     Secretary of State Special License Plate Fund.....$30,700
14     Capital Development Board Revolving Fund..........$27,000
15     DCFS Children's Services Fund.....................$69,300
16     Asbestos Abatement Fund...........................$17,200
17     Illinois Health Facilities Planning Fund..........$26,800
18     Emergency Public Health Fund.......................$5,600
19     Nursing Dedicated and Professional Fund...........$10,000
20     Optometric Licensing and Disciplinary
21         Board Fund.....................................$1,600
22     Underground Resources Conservation
23         Enforcement Fund..............................$11,500
24     Drunk and Drugged Driving Prevention Fund.........$18,200
25     Long Term Care Monitor/Receiver Fund..............$35,400
26     Community Water Supply Laboratory Fund.............$5,600

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1     Securities Investors Education Fund................$2,000
2     Used Tire Management Fund.........................$32,400
3     Natural Areas Acquisition Fund...................$101,200
4     Open Space Lands Acquisition
5         and Development Fund..................$28,400
6     Working Capital Revolving Fund...................$489,100
7     State Garage Revolving Fund......................$791,900
8     Statistical Services Revolving Fund............$3,984,700
9     Communications Revolving Fund..................$1,432,800
10     Facilities Management Revolving Fund...........$1,911,600
11     Professional Services Fund.......................$483,600
12     Motor Vehicle Review Board Fund...................$15,000
13     Environmental Laboratory Certification Fund........$3,000
14     Public Health Laboratory Services
15         Revolving Fund.................................$2,500
16     Lead Poisoning Screening, Prevention,
17         and Abatement Fund............................$28,200
18     Securities Audit and Enforcement Fund............$258,400
19     Department of Business Services
20         Special Operations Fund......................$111,900
21     Feed Control Fund.................................$20,800
22     Tanning Facility Permit Fund.......................$5,400
23     Plumbing Licensure and Program Fund...............$24,400
24     Tax Compliance and Administration Fund............$27,200
25     Appraisal Administration Fund......................$2,400
26     Small Business Environmental Assistance Fund.......$2,200

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1     Illinois State Fair Fund..........................$31,400
2     Secretary of State Special Services Fund.........$317,600
3     Department of Corrections Reimbursement
4         and Education Fund...........................$324,500
5     Health Facility Plan Review Fund..................$31,200
6     Illinois Historic Sites Fund......................$11,500
7     Attorney General Court Ordered and Voluntary
8         Compliance Payment Projects Fund..............$18,500
9     Public Pension Regulation Fund.....................$5,600
10     Illinois Charity Bureau Fund......................$11,400
11     Renewable Energy Resources Trust Fund..............$6,700
12     Energy Efficiency Trust Fund.......................$3,600
13     Pesticide Control Fund............................$56,800
14     Attorney General Whistleblower Reward
15         and Protection Fund...........................$14,200
16     Partners for Conservation Fund....................$36,900
17     Capital Litigation Trust Fund........................$800
18     Motor Vehicle License Plate Fund..................$99,700
19     Horse Racing Fund.................................$18,900
20     Death Certificate Surcharge Fund..................$12,800
21     Auction Regulation Administration Fund...............$500
22     Motor Carrier Safety Inspection Fund..............$55,800
23     Assisted Living and Shared Housing
24         Regulatory Fund..................................$900
25     Illinois Thoroughbred Breeders Fund................$9,200
26     Illinois Clean Water Fund.........................$42,300

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1     Secretary of State DUI Administration Fund........$16,100
2     Child Support Administrative Fund..............$1,037,900
3     Secretary of State Police Services Fund............$1,200
4     Tourism Promotion Fund............................$34,400
5     IMSA Income Fund..................................$12,700
6     Presidential Library and Museum Operating Fund....$83,000
7     Dram Shop Fund....................................$44,500
8     Illinois State Dental Disciplinary Fund............$5,700
9     Cycle Rider Safety Training Fund...................$8,700
10     Traffic and Criminal Conviction Surcharge Fund...$106,100
11     Design Professionals Administration
12         and Investigation Fund.........................$4,500
13     State Police Services Fund.......................$276,100
14     Metabolic Screening and Treatment Fund............$90,800
15     Insurance Producer Administration Fund............$45,600
16     Coal Technology Development Assistance Fund.......$11,700
17     Hearing Instrument Dispenser Examining
18         and Disciplinary Fund..........................$1,900
19     Low-Level Radioactive Waste Facility
20         Development and Operation Fund.................$1,000
21     Environmental Protection Permit and
22         Inspection Fund...............................$66,900
23     Park and Conservation Fund.......................$199,300
24     Local Tourism Fund.................................$2,400
25     Illinois Capital Revolving Loan Fund..............$10,000
26     Large Business Attraction Fund.......................$100

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1     Adeline Jay Geo-Karis Illinois Beach
2         Marina Fund...................................$27,200
3     Public Infrastructure Construction
4         Loan Revolving Fund............................$1,700
5     Insurance Financial Regulation Fund...............$69,200
6     Total                                        $24,197,800
7     (d-35) Notwithstanding any other provision of State law to
8 the contrary and in addition to any other transfers that may be
9 provided for by law, on July 1, 2010, or as soon as may be
10 practical thereafter, the State Comptroller shall direct and
11 the State Treasurer shall transfer from each designated fund
12 into the Workers' Compensation Revolving Fund the following
13 amounts:
14     General Revenue Fund.........................$55,000,000
15     Road Fund....................................$50,955,300
16     Total                                       $105,955,300
17     (d-40) Notwithstanding any other provision of State law to
18 the contrary, on or after July 1, 2010 and until June 30, 2011,
19 in addition to any other transfers that may be provided for by
20 law, at the direction of and upon notification of the Director
21 of Central Management Services, the State Comptroller shall
22 direct and the State Treasurer shall transfer amounts into the
23 Workers' Compensation Revolving Fund from the designated funds
24 not exceeding the following totals:
25     Food and Drug Safety Fund.........................$8,700
26     Financial Institution Fund.......................$44,500

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1     General Professions Dedicated Fund...............$51,400
2     Live and Learn Fund..............................$10,900
3     Illinois Veterans' Rehabilitation Fund..........$106,000
4     State Boating Act Fund..........................$288,200
5     State Parks Fund................................$185,900
6     Wildlife and Fish Fund........................$1,550,300
7     Lobbyist Registration Administration Fund........$18,100
8     Agricultural Premium Fund.......................$176,100
9     Mental Health Fund..............................$291,900
10     Firearm Owner's Notification Fund.................$2,300
11     Illinois Gaming Law Enforcement Fund.............$11,300
12     Illinois State Medical Disciplinary Fund.........$42,300
13     Facility Licensing Fund..........................$14,200
14     Plugging and Restoration Fund....................$15,600
15     Explosives Regulatory Fund........................$4,800
16     Aggregate Operations Regulatory Fund..............$6,000
17     Coal Mining Regulatory Fund.......................$7,200
18     Registered Certified Public Accountants'
19         Administration and Disciplinary Fund..........$1,900
20     Weights and Measures Fund.......................$105,200
21     Division of Corporations Registered
22         Limited Liability Partnership Fund............$5,300
23     Illinois School Asbestos Abatement Fund..........$19,900
24     Secretary of State Special License Plate Fund....$38,700
25     DCFS Children's Services Fund...................$123,100
26     Illinois Health Facilities Planning Fund.........$29,700

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1     Emergency Public Health Fund......................$6,800
2     Nursing Dedicated and Professional Fund..........$13,500
3     Optometric Licensing and Disciplinary
4         Board Fund....................................$1,800
5     Underground Resources Conservation
6         Enforcement Fund.............................$16,500
7     Mandatory Arbitration Fund........................$5,400
8     Drunk and Drugged Driving Prevention Fund........$26,400
9     Long Term Care Monitor/Receiver Fund.............$43,800
10     Securities Investors Education Fund..............$28,500
11     Used Tire Management Fund.........................$6,300
12     Natural Areas Acquisition Fund..................$185,000
13     Open Space Lands Acquisition and
14         Development Fund.............................$46,800
15     Working Capital Revolving Fund..................$741,500
16     State Garage Revolving Fund.....................$356,200
17     Statistical Services Revolving Fund...........$1,775,900
18     Communications Revolving Fund...................$630,600
19     Facilities Management Revolving Fund............$870,800
20     Professional Services Fund......................$275,500
21     Motor Vehicle Review Board Fund..................$12,900
22     Public Health Laboratory Services
23         Revolving Fund................................$5,300
24     Lead Poisoning Screening, Prevention,
25         and Abatement Fund...........................$42,100
26     Securities Audit and Enforcement Fund...........$162,700

09800HB2408sam003 - 17 - LRB098 06361 OMW 45812 a

1     Department of Business Services
2         Special Operations Fund.....................$143,700
3     Feed Control Fund................................$32,300
4     Tanning Facility Permit Fund......................$3,900
5     Plumbing Licensure and Program Fund..............$32,600
6     Tax Compliance and Administration Fund...........$48,400
7     Appraisal Administration Fund.....................$3,600
8     Illinois State Fair Fund.........................$30,200
9     Secretary of State Special Services Fund........$214,400
10     Department of Corrections Reimbursement
11         and Education Fund..........................$438,300
12     Health Facility Plan Review Fund.................$29,900
13     Public Pension Regulation Fund....................$9,900
14     Pesticide Control Fund..........................$107,500
15     Partners for Conservation Fund..................$189,300
16     Motor Vehicle License Plate Fund................$143,800
17     Horse Racing Fund................................$20,900
18     Death Certificate Surcharge Fund.................$16,800
19     Auction Regulation Administration Fund............$1,000
20     Motor Carrier Safety Inspection Fund.............$56,800
21     Assisted Living and Shared Housing
22         Regulatory Fund...............................$2,200
23     Illinois Thoroughbred Breeders Fund..............$18,100
24     Secretary of State DUI Administration Fund.......$19,800
25     Child Support Administrative Fund.............$1,809,500
26     Secretary of State Police Services Fund...........$2,500

09800HB2408sam003 - 18 - LRB098 06361 OMW 45812 a

1     Medical Special Purposes Trust Fund..............$20,400
2     Dram Shop Fund...................................$57,200
3     Illinois State Dental Disciplinary Fund...........$9,500
4     Cycle Rider Safety Training Fund.................$12,200
5     Traffic and Criminal Conviction Surcharge Fund..$128,900
6     Design Professionals Administration
7         and Investigation Fund........................$7,300
8     State Police Services Fund......................$335,700
9     Metabolic Screening and Treatment Fund...........$81,600
10     Insurance Producer Administration Fund...........$77,000
11     Hearing Instrument Dispenser Examining
12         and Disciplinary Fund.........................$1,900
13     Park and Conservation Fund......................$361,500
14     Adeline Jay Geo-Karis Illinois Beach
15         Marina Fund..................................$42,800
16     Insurance Financial Regulation Fund.............$108,000
17     Total                                        $13,033,200
18     (d-45) Notwithstanding any other provision of State law to
19 the contrary and in addition to any other transfers that may be
20 provided for by law, on July 1, 2011, or as soon as may be
21 practical thereafter, the State Comptroller shall direct and
22 the State Treasurer shall transfer the sum of $45,000,000 from
23 the General Revenue Fund into the Workers' Compensation
24 Revolving Fund.
25     (e) The term "workers' compensation services" means
26 services, claims expenses, and related administrative costs

09800HB2408sam003 - 19 - LRB098 06361 OMW 45812 a

1 incurred in performing the duties under Sections 405-105 and
2 405-411 of the Department of Central Management Services Law of
3 the Civil Administrative Code of Illinois.
4 (Source: P.A. 96-45, eff. 7-15-09; 96-959, eff. 7-1-10; 97-641,
5 eff. 12-19-11; 97-895, eff. 8-3-12.)

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

8     (30 ILCS 500/45-57)
9     Sec. 45-57. Veterans.
10     (a) Set-aside goal. It is the goal of the State to promote
11 and encourage the continued economic development of small
12 businesses owned and controlled by qualified veterans and that
13 qualified service-disabled veteran-owned small businesses
14 (referred to as SDVOSB) and veteran-owned small businesses
15 (referred to as VOSB) participate in the State's procurement
16 process as both prime contractors and subcontractors. Not less
17 than 3% of the total dollar amount of State contracts, as
18 defined by the Director of Central Management Services, shall
19 be established as a goal to be awarded to SDVOSB and VOSB. That
20 portion of a contract under which the contractor subcontracts
21 with a SDVOSB or VOSB may be counted toward the goal of this
22 subsection. The Department of Central Management Services
23 shall adopt rules to implement compliance with this subsection
24 by all State agencies.

09800HB2408sam003 - 20 - LRB098 06361 OMW 45812 a

1     (b) Fiscal year reports. By each September 1, each chief
2 procurement officer shall report to the Department of Central
3 Management Services on all of the following for the immediately
4 preceding fiscal year, and by each March 1 the Department of
5 Central Management Services shall compile and report that
6 information to the General Assembly:
7         (1) The total number of VOSB, and the number of SDVOSB,
8     who submitted bids for contracts under this Code.
9         (2) The total number of VOSB, and the number of SDVOSB,
10     who entered into contracts with the State under this Code
11     and the total value of those contracts.
12     (c) Yearly review and recommendations. Each year, each
13 chief procurement officer shall review the progress of all
14 State agencies under its jurisdiction in meeting the goal
15 described in subsection (a), with input from statewide
16 veterans' service organizations and from the business
17 community, including businesses owned by qualified veterans,
18 and shall make recommendations to be included in the Department
19 of Central Management Services' report to the General Assembly
20 regarding continuation, increases, or decreases of the
21 percentage goal. The recommendations shall be based upon the
22 number of businesses that are owned by qualified veterans and
23 on the continued need to encourage and promote businesses owned
24 by qualified veterans.
25     (d) Governor's recommendations. To assist the State in
26 reaching the goal described in subsection (a), the Governor

09800HB2408sam003 - 21 - LRB098 06361 OMW 45812 a

1 shall recommend to the General Assembly changes in programs to
2 assist businesses owned by qualified veterans.
3     (e) Definitions. As used in this Section:
4     "Armed forces of the United States" means the United States
5 Army, Navy, Air Force, Marine Corps, Coast Guard, or service in
6 active duty as defined under 38 U.S.C. Section 101. Service in
7 the Merchant Marine that constitutes active duty under Section
8 401 of federal Public Act 95-202 shall also be considered
9 service in the armed forces for purposes of this Section.
10     "Certification" means a determination made by the Illinois
11 Department of Veterans' Affairs and the Department of Central
12 Management Services that a business entity is a qualified
13 service-disabled veteran-owned small business or a qualified
14 veteran-owned small business for whatever purpose. A SDVOSB or
15 VOSB owned and controlled by females, minorities, or persons
16 with disabilities, as those terms are defined in Section 2 of
17 the Business Enterprise for Minorities, Females, and Persons
18 with Disabilities Act, may also ~~shall~~ select and designate
19 whether that business is to be certified as a "female-owned
20 business", "minority-owned business", or "business owned by a
21 person with a disability", as defined in Section 2 of the
22 Business Enterprise for Minorities, Females, and Persons with
23 Disabilities Act~~, or as a qualified SDVOSB or qualified VOSB~~
24 ~~under this Section~~.
25     "Control" means the exclusive, ultimate, majority, or sole
26 control of the business, including but not limited to capital

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1 investment and all other financial matters, property,
2 acquisitions, contract negotiations, legal matters,
3 officer-director-employee selection and comprehensive hiring,
4 operation responsibilities, cost-control matters, income and
5 dividend matters, financial transactions, and rights of other
6 shareholders or joint partners. Control shall be real,
7 substantial, and continuing, not pro forma. Control shall
8 include the power to direct or cause the direction of the
9 management and policies of the business and to make the
10 day-to-day as well as major decisions in matters of policy,
11 management, and operations. Control shall be exemplified by
12 possessing the requisite knowledge and expertise to run the
13 particular business, and control shall not include simple
14 majority or absentee ownership.
15     "Qualified service-disabled veteran" means a veteran who
16 has been found to have 10% or more service-connected disability
17 by the United States Department of Veterans Affairs or the
18 United States Department of Defense.
19     "Qualified service-disabled veteran-owned small business"
20 or "SDVOSB" means a small business (i) that is at least 51%
21 owned by one or more qualified service-disabled veterans living
22 in Illinois or, in the case of a corporation, at least 51% of
23 the stock of which is owned by one or more qualified
24 service-disabled veterans living in Illinois; (ii) that has its
25 home office in Illinois; and (iii) for which items (i) and (ii)
26 are factually verified annually by the Department of Central

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1 Management Services.
2     "Qualified veteran-owned small business" or "VOSB" means a
3 small business (i) that is at least 51% owned by one or more
4 qualified veterans living in Illinois or, in the case of a
5 corporation, at least 51% of the stock of which is owned by one
6 or more qualified veterans living in Illinois; (ii) that has
7 its home office in Illinois; and (iii) for which items (i) and
8 (ii) are factually verified annually by the Department of
9 Central Management Services.
10     "Service-connected disability" means a disability incurred
11 in the line of duty in the active military, naval, or air
12 service as described in 38 U.S.C. 101(16).
13     "Small business" means a business that has annual gross
14 sales of less than $75,000,000 as evidenced by the federal
15 income tax return of the business. A firm with gross sales in
16 excess of this cap may apply to the Department of Central
17 Management Services for certification for a particular
18 contract if the firm can demonstrate that the contract would
19 have significant impact on SDVOSB or VOSB as suppliers or
20 subcontractors or in employment of veterans or
21 service-disabled veterans.
22     "State agency" has the same meaning as in Section 2 of the
23 Business Enterprise for Minorities, Females, and Persons with
24 Disabilities Act.
25     "Time of hostilities with a foreign country" means any
26 period of time in the past, present, or future during which a

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1 declaration of war by the United States Congress has been or is
2 in effect or during which an emergency condition has been or is
3 in effect that is recognized by the issuance of a Presidential
4 proclamation or a Presidential executive order and in which the
5 armed forces expeditionary medal or other campaign service
6 medals are awarded according to Presidential executive order.
7     "Veteran" means a person who (i) has been a member of the
8 armed forces of the United States or, while a citizen of the
9 United States, was a member of the armed forces of allies of
10 the United States in time of hostilities with a foreign country
11 and (ii) has served under one or more of the following
12 conditions: (a) the veteran served a total of at least 6
13 months; (b) the veteran served for the duration of hostilities
14 regardless of the length of the engagement; (c) the veteran was
15 discharged on the basis of hardship; or (d) the veteran was
16 released from active duty because of a service connected
17 disability and was discharged under honorable conditions.
18     (f) Certification program. The Illinois Department of
19 Veterans' Affairs and the Department of Central Management
20 Services shall work together to devise a certification
21 procedure to assure that businesses taking advantage of this
22 Section are legitimately classified as qualified
23 service-disabled veteran-owned small businesses or qualified
24 veteran-owned small businesses.
25     (g) Penalties.
26         (1) Administrative penalties. The Department of

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1     Central Management Services shall suspend any person who
2     commits a violation of Section 17-10.3 or subsection (d) of
3     Section 33E-6 of the Criminal Code of 1961 or the Criminal
4     Code of 2012 relating to this Section from bidding on, or
5     participating as a contractor, subcontractor, or supplier
6     in, any State contract or project for a period of not less
7     than 3 years, and, if the person is certified as a
8     service-disabled veteran-owned small business or a
9     veteran-owned small business, then the Department shall
10     revoke the business's certification for a period of not
11     less than 3 years. An additional or subsequent violation
12     shall extend the periods of suspension and revocation for a
13     period of not less than 5 years. The suspension and
14     revocation shall apply to the principals of the business
15     and any subsequent business formed or financed by, or
16     affiliated with, those principals.
17         (2) Reports of violations. Each State agency shall
18     report any alleged violation of Section 17-10.3 or
19     subsection (d) of Section 33E-6 of the Criminal Code of
20     1961 or the Criminal Code of 2012 relating to this Section
21     to the Department of Central Management Services. The
22     Department of Central Management Services shall
23     subsequently report all such alleged violations to the
24     Attorney General, who shall determine whether to bring a
25     civil action against any person for the violation.
26         (3) List of suspended persons. The Department of

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1     Central Management Services shall monitor the status of all
2     reported violations of Section 17-10.3 or subsection (d) of
3     Section 33E-6 of the Criminal Code of 1961 or the Criminal
4     Code of 2012 relating to this Section and shall maintain
5     and make available to all State agencies a central listing
6     of all persons that committed violations resulting in
7     suspension.
8         (4) Use of suspended persons. During the period of a
9     person's suspension under paragraph (1) of this
10     subsection, a State agency shall not enter into any
11     contract with that person or with any contractor using the
12     services of that person as a subcontractor.
13         (5) Duty to check list. Each State agency shall check
14     the central listing provided by the Department of Central
15     Management Services under paragraph (3) of this subsection
16     to verify that a person being awarded a contract by that
17     State agency, or to be used as a subcontractor or supplier
18     on a contract being awarded by that State agency, is not
19     under suspension pursuant to paragraph (1) of this
20     subsection.
21 (Source: P.A. 96-96, eff. 1-1-10; 97-260, eff. 8-5-11; 97-1150,
22 eff. 1-25-13.)

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

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