Public Act 102-0166
 
SB0687 EnrolledLRB102 12622 RJF 17960 b


  
    AN ACT concerning finance.
  
 
    Be it enacted by the People of the State of Illinois,
 
represented in the General Assembly:
  


 
    Section 5. 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 November 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.
    (b-5)   The Department of Central Management Services shall 
submit an annual report to the Governor and the General 
Assembly that shall include the following:
        (1)   a year-by-year comparison of the number of 
    certifications the State has issued to veteran-owned small 
    businesses and service-disabled veteran-owned small 
    businesses;
        (2)   the obstacles, if any, the Department of Central 
    Management Services faces when certifying veteran-owned 
    businesses and possible rules or changes to rules to 
    address those issues;
        (3)   a year-by-year comparison of awarded contracts to 
    certified veteran-owned small businesses and 
    service-disabled veteran-owned small businesses; and
        (4)   any other information that the Department of 
    Central Management Services deems necessary to assist 
    veteran-owned small businesses and service-disabled 
    veteran-owned small businesses to become certified with 
    the State.
    The Department of Central Management Services shall 
conduct a minimum of 2 outreach events per year to ensure that 
veteran-owned small businesses and service-disabled 
veteran-owned small businesses know about the procurement 
opportunities and certification requirements with the State. 
The Department of Central Management Services may receive 
appropriations for outreach. 
    (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 women, minorities, or persons 
with disabilities, as those terms are defined in Section 2 of 
the Business Enterprise for Minorities, Women, and Persons 
with Disabilities Act, may also select and designate whether 
that business is to be certified as a "women-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, Women, and Persons with 
Disabilities Act. 
    "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 meaning provided in Section 
1-15.100 of this Code. 
    "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. 

    The Department of Central Management Services shall:
        (1)   compile and maintain a comprehensive list of 
    certified veteran-owned small businesses and 
    service-disabled veteran-owned small businesses;
        (2)   assist veteran-owned small businesses and 
    service-disabled veteran-owned small businesses in 
    complying with the procedures for bidding on State 
    contracts;
        (3)   provide training for State agencies regarding the 
    goal setting process and compliance with veteran-owned 
    small business and service-disabled veteran-owned small 
    business goals; and
        (4)   implement and maintain an electronic portal on the 
    Department's website for the purpose of completing and 
    submitting veteran-owned small business and 
    service-disabled veteran-owned small business 
    certificates.
    The Department of Central Management Services, in 
consultation with the Department of Veterans' Affairs, may 
develop programs and agreements to encourage cities, counties, 
towns, townships, and other certifying entities to adopt 
uniform certification procedures and certification recognition 
programs. 
    (f-5)   A business shall be certified by the Department of 
Central Management Services as a service-disabled 
veteran-owned small business or a veteran-owned small business 
for purposes of this Section if the Department of Central 
Management Services determines that the business has been 
certified as a service-disabled veteran-owned small business 
or a veteran-owned small business by the Vets First 
Verification Program of the United States Department of 
Veterans Affairs, and the business has provided to the 
Department of Central Management Services the following:
        (1)   documentation showing certification as a 
    service-disabled veteran-owned small business or a 
    veteran-owned small business by the Vets First 
    Verification Program of the United States Department of 
    Veterans Affairs;
        (2)   proof that the business has its home office in 
    Illinois; and
        (3)   proof that the qualified veterans or qualified 
    service-disabled veterans live in the State of Illinois.
    The policies of the Department of Central Management 
Services regarding recognition of the Vets First Verification 
Program of the United States Department of Veterans Affairs 
shall be reviewed annually by the Department of Central 
Management Services, and recognition of service-disabled 
veteran-owned small businesses and veteran-owned small 
businesses certified by the Vets First Verification Program of 
the United States Department of Veterans Affairs may be 
discontinued by the Department of Central Management Services 
by rule upon a finding that the certification standards of the 
Vets First Verification Program of the United States 
Department of Veterans Affairs do not meet the certification 
requirements established by the Department of Central 
Management Services. 
    (g) Penalties.
        (1) Administrative penalties. The chief procurement 
    officers appointed pursuant to Section 10-20 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 
    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 
    2012 relating to this Section to the chief procurement 
    officers appointed pursuant to Section 10-20. The chief 
    procurement officers appointed pursuant to Section 10-20 
    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 chief procurement 
    officers appointed pursuant to Section 10-20 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 chief procurement 
    officers appointed pursuant to Section 10-20 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. 100-43, eff. 8-9-17; 100-391, eff. 8-25-17; 
100-863, eff. 8-14-18.)
 

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