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1 | AN ACT concerning finance.
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2 | Be it enacted by the People of the State of Illinois,
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3 | represented in the General Assembly:
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4 | Section 5. The Illinois Procurement Code is amended by | |||||||||||||||||||||
5 | changing Sections 5-5 and 50-35 as follows:
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6 | (30 ILCS 500/5-5)
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7 | Sec. 5-5. Procurement Policy Board.
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8 | (a) Creation. There is created a Procurement Policy Board, | |||||||||||||||||||||
9 | an agency of the State of Illinois.
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10 | (b) Authority and duties. The Board shall have the
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11 | authority and responsibility to
review, comment upon, and | |||||||||||||||||||||
12 | recommend, consistent with this Code, rules and
practices | |||||||||||||||||||||
13 | governing the
procurement, management, control,
and disposal | |||||||||||||||||||||
14 | of supplies, services, professional or artistic
services, | |||||||||||||||||||||
15 | construction, and real
property and capital improvement leases | |||||||||||||||||||||
16 | procured by the State.
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17 | Upon a three-fifths vote of its members, the Board may | |||||||||||||||||||||
18 | review a
contract.
Upon a three-fifths vote of its members, the | |||||||||||||||||||||
19 | Board may propose procurement
rules for consideration by chief | |||||||||||||||||||||
20 | procurement officers. These proposals shall
be published in | |||||||||||||||||||||
21 | each volume of the Procurement Bulletin.
Except as otherwise | |||||||||||||||||||||
22 | provided by law, the Board shall act upon the vote of a
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23 | majority of its members who have been appointed and are |
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1 | serving.
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2 | (b-5) Reviews, studies, and hearings. The Board may review, | ||||||
3 | study, and hold public hearings concerning the implementation | ||||||
4 | and administration of this Code. Each chief procurement | ||||||
5 | officer, associate procurement officer, State purchasing | ||||||
6 | officer, and State agency shall cooperate with the Board, | ||||||
7 | provide information to the Board, and be responsive to the | ||||||
8 | Board in the Board's conduct of its reviews, studies, and | ||||||
9 | hearings.
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10 | (c) Members. The Board shall consist of 5 members
appointed | ||||||
11 | one each by the 4 legislative leaders and
the Governor.
Each
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12 | member shall have demonstrated sufficient business or | ||||||
13 | professional
experience in the area of
procurement to perform | ||||||
14 | the functions of the Board. No member may be a member
of the | ||||||
15 | General Assembly.
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16 | (d) Terms. Of the initial appointees, the Governor shall
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17 | designate one member, as Chairman, to serve
a one-year term, | ||||||
18 | the President of the Senate and the Speaker of the House shall
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19 | each appoint one member to serve 3-year terms, and the Minority | ||||||
20 | Leader of the
House
and the Minority Leader of the Senate shall | ||||||
21 | each
appoint one member to serve 2-year terms. Subsequent
terms | ||||||
22 | shall be 4 years. Members may be reappointed for
succeeding | ||||||
23 | terms.
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24 | (e) Reimbursement. Members shall receive no compensation
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25 | but shall be reimbursed
for any expenses reasonably incurred in | ||||||
26 | the performance of their
duties.
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1 | (f) Staff support. Upon a three-fifths vote of its members, | ||||||
2 | the Board may
employ an executive director. Subject to | ||||||
3 | appropriation, the
Board also may employ a reasonable and | ||||||
4 | necessary number of staff persons.
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5 | (g) Meetings. Meetings of the Board may be conducted | ||||||
6 | telephonically,
electronically, or through the use of other | ||||||
7 | telecommunications.
Written minutes of such meetings shall be
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8 | created and available for public inspection and copying.
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9 | (h) The Board shall rule whether to void contracts due to | ||||||
10 | conflicts of interests in accordance with subsection (d) of | ||||||
11 | Section 50-35. | ||||||
12 | (Source: P.A. 93-839, eff. 7-30-04.)
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13 | (30 ILCS 500/50-35)
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14 | Sec. 50-35. Disclosure and potential conflicts of | ||||||
15 | interest.
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16 | (a) All offers from responsive bidders or offerors with an | ||||||
17 | annual value of
more than $10,000 shall be accompanied by | ||||||
18 | disclosure of the financial
interests of the contractor, | ||||||
19 | bidder, or proposer. The financial disclosure of
each | ||||||
20 | successful bidder or offeror shall become
part of the publicly | ||||||
21 | available contract or procurement file
maintained by the | ||||||
22 | appropriate chief procurement officer.
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23 | (b) Disclosure by the responsive bidders or offerors shall | ||||||
24 | include any
ownership or distributive income share that is in | ||||||
25 | excess of 5%, or an amount
greater than 60% of the annual |
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1 | salary of the Governor, of the bidding entity
or its parent | ||||||
2 | entity, whichever is less, unless the contractor or bidder
(i) | ||||||
3 | is a
publicly traded entity subject to Federal 10K reporting, | ||||||
4 | in which case it may
submit its 10K
disclosure in place of the | ||||||
5 | prescribed disclosure, or (ii) is a privately held
entity that | ||||||
6 | is exempt from Federal 10k reporting but has more than 400
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7 | shareholders, in which case it may submit the information that | ||||||
8 | Federal 10k
reporting companies are required to report under 17 | ||||||
9 | CFR 229.401 and list the
names of any person or entity holding | ||||||
10 | any ownership share that is in excess of
5% in place of the | ||||||
11 | prescribed disclosure. The form of disclosure shall
be | ||||||
12 | prescribed by the applicable chief procurement officer and must | ||||||
13 | include at
least the names,
addresses, and dollar or | ||||||
14 | proportionate share of ownership of each person
identified in | ||||||
15 | this Section, their instrument of ownership or beneficial
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16 | relationship, and notice of any potential conflict of interest | ||||||
17 | resulting from
the current ownership or beneficial | ||||||
18 | relationship of each person identified in
this Section having | ||||||
19 | in addition any of the following relationships:
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20 | (1) State employment, currently or in the previous 3 | ||||||
21 | years, including
contractual employment of services.
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22 | (2) State employment of spouse, father, mother, son, or | ||||||
23 | daughter,
including
contractual employment for services in | ||||||
24 | the previous 2 years.
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25 | (3) Elective status; the holding of elective office of | ||||||
26 | the State of
Illinois, the government of the United States, |
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1 | any unit of local government
authorized by the Constitution | ||||||
2 | of the State of Illinois or the statutes of the
State of | ||||||
3 | Illinois currently or in the previous 3 years.
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4 | (4) Relationship to anyone holding elective office | ||||||
5 | currently or in the
previous 2 years; spouse, father, | ||||||
6 | mother, son, or daughter.
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7 | (5) Appointive office; the holding of any appointive | ||||||
8 | government office of
the State of Illinois, the United | ||||||
9 | States of America, or any unit of local
government | ||||||
10 | authorized by the Constitution of the State of Illinois or | ||||||
11 | the
statutes of the State of Illinois, which office | ||||||
12 | entitles the holder to
compensation in excess of expenses | ||||||
13 | incurred in the discharge of that office
currently or in | ||||||
14 | the previous 3 years.
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15 | (6) Relationship to anyone holding appointive office | ||||||
16 | currently or in the
previous 2 years; spouse, father, | ||||||
17 | mother, son, or daughter.
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18 | (7) Employment, currently or in the previous 3 years, | ||||||
19 | as or by any
registered lobbyist of the State government.
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20 | (8) Relationship to anyone who is or was a registered | ||||||
21 | lobbyist in the
previous 2 years; spouse, father, mother, | ||||||
22 | son, or daughter.
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23 | (9) Compensated employment, currently or in the | ||||||
24 | previous 3 years, by any
registered election or re-election | ||||||
25 | committee registered with the Secretary of
State or any | ||||||
26 | county clerk in the State of Illinois, or any political |
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1 | action
committee registered with either the Secretary of | ||||||
2 | State or the Federal Board of
Elections.
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3 | (10) Relationship to anyone; spouse, father, mother, | ||||||
4 | son, or daughter; who
is or was a compensated employee in | ||||||
5 | the last 2 years of any registered
election or re-election | ||||||
6 | committee registered with the Secretary of State or any
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7 | county clerk in the State of Illinois, or any political | ||||||
8 | action committee
registered with either the Secretary of | ||||||
9 | State or the Federal Board of
Elections.
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10 | (c) The disclosure in subsection (b) is not intended to | ||||||
11 | prohibit or prevent
any
contract. The disclosure is meant to | ||||||
12 | fully and publicly disclose any potential
conflict to the chief | ||||||
13 | procurement officers, State purchasing officers, their
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14 | designees, and executive officers so they may adequately | ||||||
15 | discharge their duty
to protect the State.
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16 | (d) In the case of any contract for personal services in | ||||||
17 | excess of
$50,000; any contract competitively bid in excess of | ||||||
18 | $250,000; any other
contract in excess of $50,000; when a | ||||||
19 | potential for a conflict of interest
is identified, discovered, | ||||||
20 | or reasonably suspected it shall be reviewed and
commented on | ||||||
21 | in writing by the Procurement Policy Board, which Governor of | ||||||
22 | the State of Illinois, or by an
executive ethics board or | ||||||
23 | commission he or she might designate. The comment
shall be
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24 | returned to the responsible chief procurement officer who must | ||||||
25 | rule in writing
whether to void or
allow the contract, bid, | ||||||
26 | offer, or proposal weighing the best interest of the
State of |
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1 | Illinois. The comment and determination shall become a publicly
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2 | available part of the contract, bid, or proposal file.
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3 | (e) These thresholds and disclosure do not relieve the | ||||||
4 | chief procurement
officer, the State purchasing officer, or
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5 | their designees from reasonable care and diligence for any | ||||||
6 | contract, bid,
offer,
or proposal. The chief procurement | ||||||
7 | officer, the State purchasing officer, or
their designees shall | ||||||
8 | be
responsible for using any reasonably known and publicly | ||||||
9 | available information
to
discover any undisclosed potential | ||||||
10 | conflict of interest and act to protect the
best interest of | ||||||
11 | the State of Illinois.
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12 | (f) Inadvertent or accidental failure to fully disclose | ||||||
13 | shall render the
contract, bid, proposal, or relationship | ||||||
14 | voidable by the chief procurement
officer if he or she deems it | ||||||
15 | in
the best interest of the State of Illinois and, at his or | ||||||
16 | her discretion, may
be cause for barring from future contracts, | ||||||
17 | bids, proposals, or
relationships with the State for a period | ||||||
18 | of up to 2 years.
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19 | (g) Intentional, willful, or material failure to disclose | ||||||
20 | shall render the
contract, bid, proposal, or relationship | ||||||
21 | voidable by the chief procurement
officer if he or she deems it | ||||||
22 | in
the best interest of the State of Illinois and shall result | ||||||
23 | in debarment from
future contracts, bids, proposals, or | ||||||
24 | relationships for a period of not less
than 2 years and not | ||||||
25 | more than 10 years. Reinstatement after 2 years and
before 10 | ||||||
26 | years must be reviewed and commented on in writing by the |
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1 | Governor
of the State of Illinois, or by an executive ethics | ||||||
2 | board or commission he or
she
might designate. The comment | ||||||
3 | shall be returned to the responsible chief
procurement officer | ||||||
4 | who must
rule in writing whether and when to reinstate.
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5 | (h) In addition, all disclosures shall note any other | ||||||
6 | current or pending
contracts, proposals, leases, or other | ||||||
7 | ongoing procurement relationships the
bidding, proposing, or | ||||||
8 | offering entity has with any other unit of State
government and | ||||||
9 | shall clearly identify the unit and the contract, proposal,
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10 | lease, or other relationship.
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11 | (Source: P.A. 95-331, eff. 8-21-07.)
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