HB6694 95TH GENERAL ASSEMBLY

LRB095 22292 JAM 52607 b

95TH GENERAL ASSEMBLY
State of Illinois
2007 and 2008
HB6694

Introduced , by Rep. Ronald A. Wait

SYNOPSIS AS INTRODUCED:

10 ILCS 5/9-36 new
30 ILCS 500/40-17 new
30 ILCS 500/40-45
30 ILCS 500/40-46
30 ILCS 605/7.4
30 ILCS 605/7.5

Amends the Election Code, the Illinois Procurement Code, and the State Property Control Act. Requires the State Board of Elections to develop and maintain on its website a searchable database, derived from political committees' finance reports, of contributors to candidates for and holders of the offices of Governor, Lieutenant Governor, Attorney General, Secretary of State, State Comptroller, and State Treasurer. Prohibits an executive branch State agency from executing a lease with a business entity if the business entity or any of its affiliates has made any campaign contribution of $150 to the officeholder responsible for awarding the lease during the 24 months before the general election at which that officeholder was first elected or re-elected to his or her current office and the officeholder's entire term. Requires the business entity to disclose its affiliates and to certify that no violating contributions have been made. Requires the State agency to check the names of the business entity and its affiliates against the State Board of Elections' contributor database. Makes violations subject to voidability of the lease, voidability of other State leases, and prohibition against future leases. Applies to certain leases otherwise not subject to the Illinois Procurement Code. Effective immediately.

FISCAL NOTE ACT MAY APPLY

A BILL FOR

AN ACT concerning ethics.

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

Section 5. The Election Code is amended by adding Section 9-36 as follows:

(10 ILCS 5/9-36 new)

Sec. 9-36. Contributor registry.

(a) As used in this Section, the term "office" means the office of Governor, Lieutenant Governor, Attorney General, Secretary of State, State Comptroller, and State Treasurer.

(b) The State Board shall develop and maintain on its official website a searchable database of persons and entities making contributions to political committees established to promote candidates for office or the candidacy of officeholders. The information shall be obtained from the political committees' contribution reports filed under this Article and shall include the following, arranged and cross-referenced by name of candidate or officeholder for whom the contribution was made and by name of contributor: (i) the contributor's name and mailing address; (ii) the name of the candidate or officeholder for whom the contribution was made; (iii) the date and amount of each contribution reported for that candidate or officeholder; and (iv) the contributor's occupation and employer, when reported. The Board shall not place the name of a minor child on the website. The Board shall provide a link to all contributions made by anyone reporting the same residential address.

(c) The State Board shall maintain each entry in the database (i) in the case of contributions for an officeholder, for at least 4 years after the officeholder has left office, and (ii) in the case of a candidate not elected to office, for at least 2 years after the general election at which the office sought by that candidate was filled.

Section 10. The Illinois Procurement Code is amended by changing Sections 40-45 and 40-46 and by adding Section 40-17 as follows:

(30 ILCS 500/40-17 new)

Sec. 40-17. Prohibition against political contributors.

(a) As used in this Section:

"Affiliated entity" means (i) any subsidiary of the business entity, (ii) any member of the same unitary business group, (iii) any organization recognized by the United States Internal Revenue Service as a tax-exempt organization described in Section 501(c) of the Internal Revenue Code of 1986 (or any successor provision of federal tax law) established by the business entity, any affiliated entity of that business entity, or any affiliated person of that business entity, or (iv) any political committee for which the business entity, or any 501(c) organization described in item (iii) related to that business entity, is the sponsoring entity.

"Affiliated person" means (i) any person with any ownership interest or distributive share of the business entity in excess of 7.5%, (ii) executive employees of the business entity, and (iii) an immediate family member of any such persons.

"Business entity" means any entity doing business for profit, whether organized as a corporation, partnership, sole proprietorship, limited liability company or partnership, or otherwise.

"Executive employee" means the President, Chairman, Chief Executive Officer, or other employee with executive decision-making authority over the long-term and day-to-day affairs of the entity employing the employee, or an employee whose compensation is determined directly, in whole or in part, by the award or payment of leases with a State agency to the entity employing the employee.

"Contribution" means a contribution as defined in Section 9-1.4 of the Election Code.

"Immediate family member" means:

(1) with respect to a person who is an affiliated person because of an ownership interest or distributive share of the business entity in excess of 7.5%, a spouse, minor child, adult child, parent, adult brother, adult sister, or adult grandchild; and

(2) with respect to a person who is an affiliated person because he or she is an executive employee, a spouse, adult child, parent, adult brother, adult sister, or adult grandchild.

"Officeholder" means the Governor, Lieutenant Governor, Attorney General, Secretary of State, Comptroller, or Treasurer. The Governor shall be considered the officeholder responsible for awarding all leases by all officers and employees of executive branch State agencies under the jurisdiction of the Executive Ethics Commission and not within the jurisdiction of the Attorney General, the Secretary of State, the Comptroller, or the Treasurer.

"Sponsoring entity" means a sponsoring entity as defined in Section 9-3 of the Election Code.

"State agency" means and includes all boards, commissions, agencies, institutions, authorities, and bodies politic and corporate of the State, created by or in accordance with the Illinois Constitution or State statute, of the executive branch of State government and does include colleges, universities, public employee retirement systems, and institutions under the jurisdiction of the governing boards of the University of Illinois, Southern Illinois University, Illinois State University, Eastern Illinois University, Northern Illinois University, Western Illinois University, Chicago State University, Governors State University, Northeastern Illinois University, and the Illinois Board of Higher Education.

(b) A business entity is prohibited from executing a lease of real property or capital improvement with a State agency if the business entity or any of its affiliated entities or affiliated persons, solely or in combination, has made any contribution of $150 to one or more political committees established to promote the candidacy of the officeholder responsible for awarding the lease during the 24-month period immediately preceding the general election at which the officeholder was first elected or re-elected to his or her current office and the entire term of the officeholder.

(c) Each business entity's bid or response to a request for information for a lease with a State agency must disclose, in a manner prescribed by each chief procurement officer by rule, the following information:

(1) the names by which the business entity has been known, and its mailing address for each such name, at any time during the 24-month period immediately preceding the general election at which the officeholder responsible for awarding the lease was first elected or re-elected to his or her current office;

(2) the names and mailing addresses of all of the business entity's affiliated entities and affiliated persons, and descriptions of the affiliations, during the 24-month period immediately preceding the general election at which the officeholder responsible for awarding the lease was first elected or re-elected to his or her current office; and

(3) to the best of the business entity's knowledge, the total amount of contributions made by each entity or person listed in items (1) and (2) during the period described in items (1) and (2) to one or more political committees established to promote the candidacy of the officeholder responsible for awarding the lease.

The business entity must update the information provided under this subsection in accordance with a schedule specified by each chief procurement officer by rule.

(d) Before awarding a lease to and before executing a lease with a business entity, the State agency must examine the campaign contributor database maintained by the State Board of Elections under Section 9-36 of the Election Code to determine whether the business entity is disqualified from participating in the lease procurement because of contributions in violation of this Section.

(e) Every lease executed by the State on or after the effective date of this amendatory Act of the 95th General Assembly shall contain (1) a certification by the business entity that the business entity and its affiliated entities and affiliated persons have not made contributions in violation of this Section and (2) a statement that the lease is voidable under Section 50-60 for the business entity's failure to comply with this Section.

(f) All leases between State agencies and a business entity that violate this Section shall be voidable under Section 50-60. If a business entity violates this Section 3 or more times within a 36-month period, then all leases between State agencies and that business entity shall be void, and that business entity shall not bid or respond to any invitation to bid, request for proposals, or request for information from any State agency or otherwise enter into any leases with any State agency for 3 years from the date of the last violation. A notice of each violation and the penalty imposed shall be published in both the Procurement Bulletin and the Illinois Register.

(g) The disclosures and certifications required by this Section must include the business entity's verification of accuracy and subject the business entity to the penalties of the laws of this State for perjury. Intentional, willful, or material failure to disclose information required under this Section shall render the lease, bid, proposal, or other procurement relationship voidable by the chief procurement officer if he or she deems it to be in the best interest of the State.

(h) This Section applies regardless of the method of source selection used in awarding the lease.

(30 ILCS 500/40-45)

Sec. 40-45. Leases partially exempt from Article. A lease entered into by the State under Section 7.4 of the State Property Control Act is subject to Section 40-17 of this Article but is otherwise not subject to the provisions of this Article.

(Source: P.A. 93-19, eff. 6-20-03.)

(30 ILCS 500/40-46)

Sec. 40-46. Leases partially exempt from Article. A lease entered into under Section 7.5 of the State Property Control Act is subject to Section 40-17 of this Article but is otherwise not subject to the provisions of this Article.

(Source: P.A. 93-19, eff. 6-20-03.)

Section 15. The State Property Control Act is amended by changing Sections 7.4 and 7.5 as follows:

(30 ILCS 605/7.4)

Sec. 7.4. James R. Thompson Center; Elgin Mental Health Center.

(a) Notwithstanding any other provision of this Act or any other law to the contrary, the administrator is authorized under this Section to dispose of or mortgage (i) the James R. Thompson Center located in Chicago, Illinois and (ii) the Elgin Mental Health Center and surrounding land located at 750 S. State Street, Elgin, Illinois in any of the following ways:

(1) The administrator may sell the property as provided in subsection (b).

(2) The administrator may sell the property as provided in subsection (b), and the administrator may immediately thereafter enter into a leaseback or other agreement that directly or indirectly gives the State a right to use, control, and possess the property. Notwithstanding any other provision of law, a lease entered into by the administrator under this subdivision (a)(2) may last for any period not exceeding 99 years.

(3) The administrator may enter into a mortgage agreement, using the property as collateral, to receive a loan or a line of credit based on the equity available in the property. Any loan obtained or line of credit established under this subdivision (a)(3) must require repayment in full in 20 years or less.

(b) The administrator shall obtain 3 appraisals of the real property transferred under subdivision (a)(1) or (a)(2) of this Section, one of which shall be performed by an appraiser residing in the county in which the real property is located. The average of these 3 appraisals, plus the costs of obtaining the appraisals, shall represent the fair market value of the real property. No property may be conveyed under subdivision (a)(1) or (a)(2) of this Section by the administrator for less than the fair market value. The administrator may sell the real property by public auction following notice of the sale by publication on 3 separate days not less than 15 nor more than 30 days prior to the sale in a daily newspaper having general circulation in the county in which the real property is located. If no acceptable offers for the real property are received, the administrator may have new appraisals of the property made. The administrator shall have all power necessary to convey real property under subdivision (a)(1) or (a)(2) of this Section.

The administrator shall have authority to order such surveys, abstracts of title, or commitments for title insurance as may, in his or her reasonable discretion, be deemed necessary to demonstrate to prospective purchasers, bidders, or mortgagees good and marketable title in any property offered for sale or mortgage under this Section. Unless otherwise specifically authorized by the General Assembly, all conveyances of property made by the administrator under subdivision (a)(1) or (a)(2) of this Section shall be by quit claim deed.

(c) All moneys received from the sale or mortgage of real property under this Section shall be deposited into the General Revenue Fund.

(d) The administrator is authorized to enter into any agreements and execute any documents necessary to exercise the authority granted by this Section.

(e) Any agreement to dispose of or mortgage (i) the James R. Thompson Center located in Chicago, Illinois or (ii) the Elgin Mental Health Center and surrounding land located at 750 S. State Street, Elgin, Illinois pursuant to the authority granted by this Section must be entered into no later than one year after the effective date of this amendatory Act of the 93rd General Assembly.

(f) This Section is subject to Section 40-17 of the Illinois Procurement Code.

(Source: P.A. 93-19, eff. 6-20-03.)

(30 ILCS 605/7.5)

Sec. 7.5. Illinois State Toll Highway Authority headquarters.

(a) Notwithstanding any other provision of this Act or any other law to the contrary, the Illinois State Toll Highway Authority, as set forth in items (1) through (3), is authorized under this Section to dispose of or mortgage the Illinois State Toll Highway Authority headquarters building and surrounding land, located at 2700 Ogden Avenue, Downers Grove, Illinois in any of the following ways:

(1) The Authority may sell the property as provided in subsection (b).

(2) The Authority may sell the property as provided in subsection (b) and may immediately thereafter enter into a leaseback or other agreement that directly or indirectly gives the State or the Authority a right to use, control, and possess the property. Notwithstanding any other provision of law, a lease entered into under this subdivision (a)(2) may last for any period not exceeding 99 years.

(3) The Authority may enter into a mortgage agreement, using the property as collateral, to receive a loan or a line of credit based on the equity available in the property. Any loan obtained or line of credit established under this subdivision (a)(3) must require repayment in full in 20 years or less.

(b) The Illinois State Toll Highway Authority shall obtain 3 appraisals of the real property transferred under subdivision (a)(1) or (a)(2) of this Section, one of which shall be performed by an appraiser residing in the county in which the real property is located. The average of these 3 appraisals, plus the costs of obtaining the appraisals, shall represent the fair market value of the real property. No property may be conveyed under subdivision (a)(1) or (a)(2) of this Section by the Authority for less than the fair market value. The Authority may sell the real property by public auction following notice of the sale by publication on 3 separate days not less than 15 nor more than 30 days prior to the sale in a daily newspaper having general circulation in the county in which the real property is located. If no acceptable offers for the real property are received, the Authority may have new appraisals of the property made. The Authority shall have all power necessary to convey real property under subdivision (a)(1) or (a)(2) of this Section.

The Illinois State Toll Highway Authority shall have authority to order such surveys, abstracts of title, or commitments for title insurance as may, in his or her reasonable discretion, be deemed necessary to demonstrate to prospective purchasers, bidders, or mortgagees good and marketable title in any property offered for sale or mortgage under this Section. Unless otherwise specifically authorized by the General Assembly, all conveyances of property made by the Authority under subdivision (a)(1) or (a)(2) of this Section shall be by quit claim deed.

(c) All moneys received from the sale or mortgage of real property under this Section shall be deposited into the General Revenue Fund.

(d) The Authority is authorized to enter into any agreements and execute any documents necessary to exercise the authority granted by this Section.

(e) Any agreement to dispose of or mortgage the Illinois State Toll Highway Authority headquarters building and surrounding land located at 2700 Ogden Avenue, Downers Grove, Illinois pursuant to the authority granted by this Section must be entered into no later than one year after the effective date of this amendatory Act of the 93rd General Assembly.

(f) The provisions of this Section apply and control notwithstanding any other provision of this Act or any other law to the contrary.

(g) This Section is subject to Section 40-17 of the Illinois Procurement Code.

(Source: P.A. 93-19, eff. 6-20-03.)

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