Public Act 097-0260
 
SB1270 EnrolledLRB097 07929 PJG 48046 b


  
    AN ACT concerning finance.
  
 
    WHEREAS, Generation after generation of Illinois' citizens 
has served our nation and the State of Illinois by serving in 
America's armed forces, often at great sacrifice; and  military 
service by their citizenry is fundamental to the continuing 
freedom that America and the State of Illinois enjoy; and
    WHEREAS, Accordingly, honoring the service of Illinois' 
military veterans, past, present, and future, must be a 
primary, cornerstone commitment of Illinois; and
    WHEREAS, Inasmuch as the State of Illinois acknowledges the 
past and ongoing commitment of Illinois' military veterans, it 
is the intent of this Act to (i) foster economic opportunities 
for Illinois' military veterans by encouraging the 
establishment of service-disabled veteran-owned small 
businesses (SDVOSB) and veteran-owned small businesses (VOSB) 
and (ii) establish an annual, ongoing, percentage goal for all 
State agencies' award of goods and services contracts and 
construction-related State spending that shall be set aside for 
competitive bidding by verified Illinois SDVOSB and VOSB; and
    WHEREAS, It is further intended that appropriate 
administrative procedures for the verification of SDVOSB, 
VOSB, bid solicitations, awards, and all matters pertaining 
thereto shall be established and implemented by the Department 
of Central Management Services; therefore
 
    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 Disabled 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 service disabled 
veterans and that qualified service-disabled service disabled 
veteran-owned small businesses (referred to as SDVOSB SDVOB) 
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. A Task Force  shall be 
established, appointed by the Directors or Secretaries of, and 
made up of representatives of, the Illinois Department of 
Veterans' Affairs, the Illinois Department of Transportation, 
the Department of Central Management Services, the Business 
Enterprise Program, and the Business Enterprise Council.  The 
Department of Central Management Services shall provide 
administrative support to the Task Force. The purpose of this 
Task Force shall be to determine the appropriate percentage 
goal for award each fiscal year



 of the State's total 
expenditures for contracts



 awarded under this Code to SDVOB. 
That



 portion of a contract under which the contractor 
subcontracts



 with a SDVOSB or VOSB SDVOB 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.  In making that 
determination the Task Force shall consult with statewide 
veterans' service organizations and the business community, 
including businesses owned by qualified disabled veterans. The 
Task Force shall submit its report to the General Assembly 
concerning its recommendations regarding the appropriate 
percentage goal for award each fiscal year of the State's total 
expenditures for contracts awarded under this Code to qualified 
service disabled veterans no later than 90 days after the 
effective date of this amendatory Act of the 96th General 
Assembly.
    (b) Fiscal year reports. By Once the appropriate goal is 
established, then 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 October 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, 
    SDVOB who submitted bids a bid for contracts a contract 
    under this Code.
        (2) The total number of VOSB, and the number of SDVOSB, 
    SDVOB 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 disabled 
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 
disabled veterans and on the continued need to encourage and 
promote businesses owned by qualified disabled 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 disabled 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. 
    " Business" means a business that has average annual gross 
sales over the 3 most recent calendar years of less than 
$31,000,000 as evidenced by the federal income tax returns of 
the business.
    "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, 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 service disabled veteran" 
means a







  veteran who has been found to have 10% or more a 
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. 
    "Qualified disabled veteran-owned business" means a 
business entity that is at least 51% owned by one or more 
qualified disabled veterans, or in the case of a corporation, 
at least 51% of the stock of which is owned by one or more 
qualified disabled veterans; and the management and daily 
business operations of which are controlled by one or more of 
the qualified disabled veterans who own it.
    "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. 
served in the active military,



 naval, or air service and who 
was discharged or released from



 his or her service under 
conditions other than dishonorable.
    (f) Certification program. The Illinois Department of 
Veterans' Affairs and the Department of Central Management 
Services Business Enterprise Program shall work together to 
devise a certification procedure to assure that businesses 
taking advantage of this Section Act are legitimately 
classified as qualified service-disabled 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 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 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 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.)
  
 
    Section 10. The Criminal Code of 1961 is amended  by 
changing Sections 17-10.3, 33E-2, and 33E-6 as follows:
 
    (720 ILCS 5/17-10.3)
    (This Section may contain text from a Public Act with a 
delayed effective date)

    Sec. 17-10.3. Deception relating to certification of 
disadvantaged business enterprises.
    (a) Fraudulently obtaining or retaining certification. A 
person
who, in the course of business, fraudulently obtains or 
retains
certification as a minority owned business, or female 
owned business, service-disabled veteran-owned small business, 
or veteran-owned small business commits
a Class 2 felony.
    (b) Willfully making a false statement. A person who, in 
the
course of business, willfully makes a false statement 
whether by affidavit,
report or other representation, to an 
official or employee of a State
agency or the Minority and 
Female Business Enterprise Council for the
purpose of 
influencing the certification or denial of certification of any

business entity as a minority owned business, or female owned 
business, service-disabled veteran-owned small business, or 
veteran-owned small business
commits a Class 2 felony.
    (c) Willfully obstructing or impeding an official or 
employee of
any agency in his or her investigation.
Any person 
who, in the course of business, willfully obstructs or impedes

an official or employee of any State agency or the Minority and 
Female
Business Enterprise Council
who is investigating the 
qualifications of a business
entity which has requested 
certification as a minority owned business, or a
female owned 
business, service-disabled veteran-owned small business, or 
veteran-owned small business commits a Class 2 felony.
    (d) Fraudulently obtaining public moneys reserved for

disadvantaged business enterprises.  Any person who, in the 
course of
business, fraudulently obtains public moneys 
reserved for, or allocated or
available to, minority owned 
businesses, or female owned businesses, service-disabled 
veteran-owned small businesses, or veteran-owned small 
businesses commits a
Class 2 felony.
    (e) Definitions. As used in this Article, "minority owned

business", "female owned business", "State agency"  with 
respect to minority owned businesses and female owned 
businesses, and "certification" with respect to minority owned 
businesses and female owned businesses shall
have the meanings 
ascribed to them in Section 2 of the Business Enterprise for

Minorities, Females, and
Persons with Disabilities Act. As used 
in this Article, "service-disabled veteran-owned small 
business", "veteran-owned small business", "State agency" with 
respect to service-disabled veteran-owned small businesses and 
veteran-owned small businesses, and "certification" with 
respect to service-disabled veteran-owned small businesses and 
veteran-owned small businesses have the same meanings as in 
Section 45-57 of the Illinois Procurement Code. 

(Source: P.A. 96-1551, eff. 7-1-11.)
 



    (720 ILCS 5/33E-2)  (from Ch. 38, par. 33E-2)



    Sec. 33E-2. Definitions. In this Act:

    (a) "Public contract" means any
contract for goods, 
services or construction let to any person with or
without bid 
by any unit of State or local government.

    (b) "Unit of State or local government" means the State, 
any unit of state
government or agency thereof, any county or 
municipal government or committee
or agency thereof, or any 
other entity which is funded by or expends tax
dollars or the 
proceeds of publicly guaranteed bonds.

    (c) "Change order" means a change in a contract term other 
than as
specifically provided for in the contract which 
authorizes or necessitates
any increase or decrease in the cost 
of the contract or the time to completion.

    (d) "Person" means any individual, firm, partnership,

corporation, joint venture or other entity, but does not 
include a unit
of State or local government.

    (e) "Person employed by any unit of State or local 
government" means
any employee of a unit of State or local 
government and any person defined in
subsection (d) who is 
authorized by such unit of State or local government
to act on 
its behalf in relation to any public contract.

    (f) "Sheltered market" has the meaning ascribed to it in 
Section 8b of the Business Enterprise for Minorities,
Females, 
and Persons with Disabilities Act; except that, with respect to 
State contracts set aside for award to service-disabled 
veteran-owned small businesses and veteran-owned small 
businesses pursuant to Section 45-57 of the Illinois 
Procurement Code, "sheltered market" means procurements 
pursuant to that Section.

    (g) "Kickback" means any money, fee, commission, credit, 
gift, gratuity,
thing of value, or compensation of any kind 
which is provided, directly or
indirectly, to any prime 
contractor, prime contractor employee,
subcontractor, or 
subcontractor employee for the purpose of improperly
obtaining 
or rewarding favorable treatment in connection with a prime

contract or in connection with a subcontract relating to a 
prime contract.

    (h) "Prime contractor" means any person who has entered 
into
a public contract.

    (i) "Prime contractor employee" means any officer, 
partner, employee, or
agent of a prime contractor.

    (i-5) "Stringing" means knowingly structuring a contract

or job order to avoid the contract or job order being subject 
to competitive
bidding requirements.

    (j) "Subcontract" means a contract or contractual action 
entered into by
a prime contractor or subcontractor for the 
purpose of obtaining goods or
services of any kind under a 
prime contract.

    (k) "Subcontractor" (1) means any person, other than the 
prime
contractor, who offers to furnish or furnishes any goods 
or services of any
kind under a prime contract or a subcontract 
entered into in connection
with such prime contract; and (2) 
includes any person who offers to furnish
or furnishes goods or 
services to the prime contractor or a higher tier

subcontractor.

    (l) "Subcontractor employee" means any officer, partner, 
employee, or
agent of a subcontractor.

(Source: P.A. 92-16, eff. 6-28-01.)

 



    (720 ILCS 5/33E-6)  (from Ch. 38, par. 33E-6)



    Sec. 33E-6. 
Interference with contract submission and 
award by public
official.  (a) Any person who is an official of 
or employed by any unit of
State or local government who 
knowingly conveys, either directly or indirectly,
outside of 
the publicly available official invitation to bid, pre-bid

conference, solicitation for contracts procedure or such 
procedure used
in any sheltered market procurement adopted 
pursuant to law or ordinance by
that unit of government, to any 
person any information concerning the
specifications for such 
contract or the identity of any particular
potential 
subcontractors, when inclusion of such information concerning 
the
specifications or contractors in the bid or offer would 
influence the
likelihood of acceptance of such bid or offer, 
commits a Class 4 felony.
It shall not constitute a violation 
of this subsection to convey
information intended to clarify 
plans or specifications regarding a public
contract where such 
disclosure of information is also made generally
available to 
the public.

    (b) Any person who is an official of or employed by any 
unit of State or
local government who, either directly or 
indirectly, knowingly informs a
bidder or offeror that the bid 
or offer will be accepted or executed only
if specified 
individuals are included as subcontractors commits a Class 3

felony.

    (c) It shall not constitute a violation of subsection (a) 
of this
Section where any person who is an official of or 
employed by any unit of
State or local government follows 
procedures established (i) by federal,
State or local minority 
or female owned business enterprise programs or (ii) pursuant 
to Section 45-57 of the Illinois Procurement Code.

    (d) Any bidder or offeror who is the recipient of 
communications from
the unit of government which he reasonably 
believes to be proscribed by
subsections (a) or (b), and fails 
to inform either the Attorney General or
the State's Attorney 
for the county in which the unit of government is
located, 
commits a Class A misdemeanor.

    (e) Any public official who knowingly awards a contract 
based on
criteria which were not publicly disseminated via the 
invitation to bid,
when such invitation to bid is required by 
law or ordinance, the pre-bid
conference, or any solicitation 
for contracts procedure or such
procedure used in any sheltered 
market procurement procedure adopted
pursuant to statute or 
ordinance, commits a Class 3 felony.

    (f) It shall not constitute a violation of subsection (a) 
for any
person who is an official of or employed by any unit of 
State or local
government to provide to any person a copy of 
the transcript or other
summary of any pre-bid conference where 
such transcript or summary is also
made generally available to 
the public.

(Source: P.A. 86-150.)

 
    Section 99. Effective date. This Act takes effect July 1, 
2011.