HB6956 96TH GENERAL ASSEMBLY

LRB096 23878 RLJ 43266 b

96TH GENERAL ASSEMBLY
State of Illinois
2009 and 2010
HB6956

Introduced , by Rep. Robert F. Flider

SYNOPSIS AS INTRODUCED:

See Index

Amends the Illinois Governmental Ethics Act. Prohibits campaign contributions from business entities with annual aggregate contracts with a member of the Illinois General Assembly or pending contract bids of more than $25,000, or from the affiliated entities and affiliated persons of such business entities, to any political committees established to promote the candidacy of (i) the member of the General Assembly responsible for awarding the contracts or (ii) in the case of current contracts with a member of the General Assembly of more than $25,000, a declared candidate for that office. Requires that specified business entities electronically register with the State Board of Elections. Amends the Counties Code and the Illinois Municipal Code. Prohibits campaign contributions from business entities with annual aggregate contracts with a county or a municipality or pending contract bids of more than $25,000, or from the affiliated entities and affiliated persons of such business entities, to any political committees established to promote the candidacy of (i) the county or municipal officeholder responsible for awarding the contracts or any member of the governing body of the county or municipality if the governing body awarded or approved the contracts or (ii) in the case of current contracts with counties or municipalities of more than $25,000, a declared candidate for that office or the governing body of the county or municipality. Requires that specified business entities electronically register with the State Board of Elections. Limits home rule powers. Makes other changes. Amends the Election Code to make conforming changes. Amends the State Mandates Act to require implementation without reimbursement.

FISCAL NOTE ACT MAY APPLY

HOME RULE NOTE ACT MAY APPLY

STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT

A BILL FOR

AN ACT concerning government.

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

Section 5. The Illinois Governmental Ethics Act is amended by adding Sections 3-108, 3-109, and 3-110 as follows:

(5 ILCS 420/3-108 new)

Sec. 3-108. Prohibition of political contributions.

(a) As used in this Section:

"Affiliated entity" means (i) any corporate parent and each operating subsidiary of the bidding or contracting business entity; (ii) each operating subsidiary of the corporate parent of the bidding or contracting business entity; (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 bidding or contracting 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 bidding or contracting business entity, or any 501(c) organization described in item (iii) related to that business entity, is the sponsoring entity. "Affiliated entity" does not include an entity prohibited by federal law from making contributions or expenditures in connection with a federal, state, or local election.

"Affiliated person" means (i) any person with any ownership interest or distributive share of the bidding or contracting business entity in excess of 7.5%, (ii) executive employees of the bidding or contracting business entity, and (iii) the spouse of any of those persons. "Affiliated person" does not include a person prohibited by federal law from making contributions or expenditures in connection with a federal, state, or local election.

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

"Contract" means all types of agreements entered into by a member of the General Assembly, including change orders and renewals, regardless of what they may be called, for the procurement, use, or disposal of supplies, services, professional or artistic services, or construction or for leases of real property, whether the member of the General Assembly is lessor or lessee, or capital improvements, and including master contracts, contracts for financing through use of installment or lease-purchase arrangements, renegotiated contracts, amendments to contracts, and change orders.

"Contract with a member of the General Assembly" means any contract, as defined in this subsection (a), between a business entity and a member of the General Assembly let or awarded pursuant to this Code. The term "contract" does not include cost reimbursement contracts or grants, including, but are not limited to, grants for job training or transportation.

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

"Declared candidate" means a person who has filed a statement of candidacy and petition for nomination or election as required under the Election Code.

"Executive employee" means (i) the President, Chairperson, or Chief Executive Officer of a business entity and any other individual that fulfills equivalent duties as the President, Chairperson of the Board, or Chief Executive Officer of a business entity; and (ii) any employee of a business entity whose compensation is determined directly, in whole or in part, by the award or payment of contracts by a member of the General Assembly to the entity employing the employee. A regular salary that is paid irrespective of the award or payment of a contract with a member of the General Assembly shall not constitute "compensation" under item (ii) of this definition. "Executive employee" does not include any person prohibited by federal law from making contributions or expenditures in connection with a federal, state, or local election.

"Officeholder" means any person elected or appointed to fill a vacancy in the Illinois General Assembly.

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

(b) Any business entity whose contracts with a member of the General Assembly, in the aggregate, annually total more than $25,000, and any affiliated entities or affiliated persons of that business entity, are prohibited from making any contributions to any political committees established to promote the candidacy of (i) the officeholder responsible for awarding the contracts or (iii) any other declared candidate for that office. This prohibition is effective for the duration of the term of office of the incumbent officeholder awarding the contracts or for a period of 2 years following the expiration or termination of the contracts, whichever is longer.

(c) Any business entity whose aggregate pending bids and proposals on contracts with a member of the General Assembly total more than $25,000, or whose aggregate pending bids and proposals on contracts with a member of the General Assembly combined with the business entity's aggregate annual total value of contracts with a member of the General Assembly exceed $25,000, and any affiliated entities or affiliated persons of that business entity, are prohibited from making any contributions to any political committee established to promote the candidacy of the officeholder responsible for awarding the contract on which the business entity has submitted a bid or proposal during the period beginning on the date the invitation for bids or request for proposals is issued and ending on the day after the date the contract is awarded.

(d) All contracts between a member of the General Assembly and a business entity that violate subsection (b) or (c) are voidable. If a business entity violates subsection (b) 3 or more times within a 36-month period, then all contracts between the member of the General Assembly and that business entity are void, and that business entity may not bid or respond to any invitation to bid or request for proposals from the member of the General Assembly or otherwise enter into any contract with the member of the General Assembly for 3 years after the date of the last violation. A notice of each violation and the penalty imposed shall be published in a newspaper of general circulation within the Legislative District or Representative District that the member represents.

(e) Any political committee that has received a contribution in violation of subsection (b) or (c) shall pay an amount equal to the value of the contribution to the State no more than 30 days after notice of the violation concerning the contribution appears in a newspaper of general circulation within the Legislative District or Representative District that the member represents. Payments received by the State pursuant to this subsection shall be deposited into the General Revenue Fund.

(5 ILCS 420/3-109 new)

Sec. 3-109. Business entities; registration with the State Board of Elections.

(a) For purposes of this Section, the terms "business entity", "contract", "contract with a member of the General Assembly", "affiliated entity", and "affiliated person" have the meanings ascribed to those terms in Section 3-108.

(b) Every bid submitted to and every contract executed by a member of the General Assembly on or after the effective date of this amendatory Act of the 96th General Assembly shall contain (1) a certification by the bidder or contractor that either (i) the bidder or contractor is not required to register as a business entity with the State Board of Elections pursuant to this Section or (ii) the bidder or contractor has registered as a business entity with the State Board of Elections and acknowledges a continuing duty to update the registration and (2) a statement that the contract is voidable for the bidder's or contractor's failure to comply with this Section.

(c) Within 30 days after the effective date of this amendatory Act of the 96th General Assembly, each business entity (i) whose aggregate bids and proposals on contracts with a member of the General Assembly annually total more than $25,000, (ii) whose aggregate bids and proposals on contracts with a member of the General Assembly combined with the business entity's aggregate annual total value of contracts with the member of the General Assembly exceed $25,000, or (iii) whose contracts with a member of the General Assembly, in the aggregate, annually total more than $25,000 shall register with the State Board of Elections in accordance with Section 9-35 of the Election Code. A business entity required to register under this subsection shall submit a copy of the certificate of registration to the Clerk of the House or the Secretary of the Senate, as applicable, within 90 days after the effective date of this amendatory Act of the 96th General Assembly. A business entity required to register under this subsection due to item (i) or (ii) has a continuing duty to ensure that the registration is accurate during the period beginning on the date of registration and ending on the day after the date the contract is awarded; any change in information must be reported to the State Board of Elections within 2 business days following the change. A business entity required to register under this subsection due to item (iii) has a continuing duty to ensure that the registration is accurate in accordance with subsection (e).

(d) Any business entity, not required under subsection (c) to register within 30 days after the effective date of this amendatory Act of the 96th General Assembly, whose aggregate bids and proposals on contracts with a member of the General Assembly annually total more than $25,000, or whose aggregate bids and proposals on contracts with a member of the General Assembly combined with the business entity's aggregate annual total value of contracts with a member of the General Assembly exceed $25,000, shall register with the State Board of Elections in accordance with Section 9-35 of the Election Code before submitting to a member of the General Assembly the bid or proposal whose value causes the business entity to fall within the monetary description of this subsection. A business entity required to register under this subsection has a continuing duty to ensure that the registration is accurate during the period beginning on the date of registration and ending on the day after the date the contract is awarded. Any change in information must be reported to the State Board of Elections within 5 business days following that change or no later than a day before the contract is awarded, whichever date is earlier.

(e) A business entity whose contracts with a member of the General Assembly, in the aggregate, annually total more than $25,000 must maintain its registration under this Section and has a continuing duty to ensure that the registration is accurate for the duration of the term of office of the incumbent officeholder awarding the contracts or for a period of 2 years following the expiration or termination of the contracts, whichever is longer. A business entity, required to register under this subsection, has a continuing duty to report any changes on a quarterly basis to the State Board of Elections within 10 business days following the last day of January, April, July, and October of each year. Any update pursuant to this paragraph that is received beyond that date is presumed late and the civil penalty authorized by subsection (e) of Section 9-35 of the Election Code may be assessed.

Also, if a business entity required to register under this subsection has a pending bid or proposal, any change in information shall be reported to the State Board of Elections within 5 business days or no later than a day before the contract is awarded, whichever date is earlier.

(f) A business entity's continuing duty under this Section to ensure the accuracy of its registration includes the requirement that the business entity notify the State Board of Elections of any change in information, including but not limited to changes of affiliated entities or affiliated persons.

(g) A copy of a certificate of registration must accompany any bid or proposal for a contract with a member of the General Assembly by a business entity required to register under this Section. A member of the General Assembly shall not accept a bid or proposal unless the certificate is submitted to the member of the General Assembly with the bid or proposal.

(h) A registration, and any changes to a registration, must include the business entity's verification of accuracy and subjects the business entity to the penalties of the laws of this State for perjury.

In addition to any penalty under Section 9-35 of the Election Code, intentional, willful, or material failure to disclose information required for registration shall render the contract, bid, proposal, or other procurement relationship voidable by the member of the General Assembly.

(i) This Section applies regardless of the method of source selection used in awarding the contract.

(5 ILCS 420/3-110 new)

Sec. 3-110. Procurement communications reporting requirement.

(a) Any written or oral communication received by a member of the General Assembly that imparts or requests material information or makes a material argument regarding potential action concerning a procurement matter, including, but not limited to, an application, a contract, or a project, shall be reported to the ethics office for that member of the General Assembly. These communications do not include the following: (i) statements by a person publicly made in a public forum; (ii) statements regarding matters of procedure and practice, such as format, the number of copies required, the manner of filing, and the status of a matter; and (iii) statements made by the member of the General Assembly to the employees of the Legislative Ethics Commission. The provisions of this Section shall not apply to communications regarding the administration and implementation of an existing contract, except communications regarding change orders or the renewal or extension of a contract.

(b) The report required by subsection (a) shall be submitted monthly and include at least the following: (i) the date and time of each communication; (ii) the identity of each person from whom the written or oral communication was received, the individual or entity represented by that person, and any action the person requested or recommended; (iii) the identity and job title of the person to whom each communication was made; (iv) if a response is made, the identity and job title of the person making each response; (v) a detailed summary of the points made by each person involved in the communication; (vi) the duration of the communication; (vii) the location or locations of all persons involved in the communication and, if the communication occurred by telephone, the telephone numbers for the callers and recipients of the communication; and (viii) any other pertinent information.

(c) Additionally, when an oral communication made by a person required to register under the Lobbyist Registration Act is received by a member of the General Assembly that is covered under this Section, all individuals who initiate or participate in the oral communication shall submit a written report to that member of the General Assembly that memorializes the communication and includes, but is not limited to, the items listed in subsection (b).

(d) Each ethics officer shall make each report submitted pursuant to this Section available on the General Assembly website within 7 days after his or her receipt of the report. Each ethics officer may promulgate rules to ensure compliance with this Section.

(e) The reporting requirements shall also be conveyed through ethics training under the State Officials and Employees Ethics Act. An employee who knowingly and intentionally violates this Section shall be subject to suspension or discharge. The Legislative Ethics Commission shall promulgate rules, including emergency rules, to implement this Section.

Section 10. The Election Code is amended by changing Section 9-35 as follows:

(10 ILCS 5/9-35)

Sec. 9-35. Registration of business entities.

(a) This Section governs the procedures for the registration required under Section 20-160 of the Illinois Procurement Code, Section 3-109 of the Illinois Governmental Ethics Act, Section 5-1135 of the Counties Code, and Section 11-42.1-5 of the Illinois Municipal Code.

For the purposes of this Section, the terms "officeholder", "State contract", "business entity", "State agency", "affiliated entity", and "affiliated person" have the meanings ascribed to those terms in Section 50-37 of the Illinois Procurement Code, Section 3-109 of the Illinois Governmental Ethics Act, Section 5-1135 of the Counties Code, or Section 11-42.1-5 of the Illinois Municipal Code, as applicable.

(b) Registration under Section 20-160 of the Illinois Procurement Code, Section 3-109 of the Illinois Governmental Ethics Act, Section 5-1135 of the Counties Code, or Section 11-42.1-5 of the Illinois Municipal Code, and any changes to that registration, must be made electronically, and the State Board of Elections by rule shall provide for electronic registration; except that the State Board may adopt emergency rules providing for a temporary filing system, effective through August 1, 2009, under which business entities must file the required registration forms provided by the Board via e-mail attachment in a PDF file or via another type of mail service and must receive from the State Board registration certificates via e-mail or paper registration certificates. The State Board shall retain the registrations submitted by business entities via e-mail or another type of mail service for at least 6 months following the establishment of the electronic registration system required by this subsection.

Each registration must contain substantially the following:

(1) The name and address of the business entity.

(2) The name and address of any affiliated entity of the business entity, including a description of the affiliation.

(3) The name and address of any affiliated person of the business entity, including a description of the affiliation.

(4) A statement that the registration is for State registration required by Section 20-160 of the Illinois Procurement Code, General Assembly registration required by Section 3-109 of the Illinois Governmental Ethics Act, county registration required by Section 5-1135 of the Counties Code, or municipal registration required by Section 11-42.1-5 of the Illinois Municipal Code. For General Assembly registrations, the business entity must identity the member of the General Assembly. For county and municipal registrations, the business entity must identify the county or municipality.

(c) The Board shall provide a certificate of registration to the business entity. The certificate shall be electronic, except as otherwise provided in this Section, and accessible to the business entity through the State Board of Elections' website and protected by a password. Within 60 days after establishment of the electronic system, each business entity that submitted a registration via e-mail attachment or paper copy pursuant to this Section shall re-submit its registration electronically. At the time of re-submission, the State Board of Elections shall provide an electronic certificate of registration to that business entity.

(d) Any business entity required to register under Section 20-160 of the Illinois Procurement Code, Section 3-109 of the Illinois Governmental Ethics Act, Section 5-1135 of the Counties Code, or Section 11-42.1-5 of the Illinois Municipal Code shall provide a copy of the registration certificate, by first class mail or hand delivery within 10 days after registration, to each affiliated entity or affiliated person whose identity is required to be disclosed. Failure to provide notice to an affiliated entity or affiliated person is a business offense for which the business entity is subject to a fine not to exceed $1,001.

(e) In addition to any penalty under Section 20-160 of the Illinois Procurement Code, Section 3-109 of the Illinois Governmental Ethics Act, Section 5-1135 of the Counties Code, or Section 11-42.1-5 of the Illinois Municipal Code, intentional, willful, or material failure to disclose information required for registration is subject to a civil penalty imposed by the State Board of Elections. The State Board shall impose a civil penalty of $1,000 per business day for failure to update a registration.

(f) Any business entity required to register under Section 20-160 of the Illinois Procurement Code, Section 3-109 of the Illinois Governmental Ethics Act, Section 5-1135 of the Counties Code, or Section 11-42.1-5 of the Illinois Municipal Code shall notify any political committee to which it makes a contribution, at the time of the contribution, that the business entity is registered with the State Board of Elections under Section 20-160 of the Illinois Procurement Code, Section 3-109 of the Illinois Governmental Ethics Act, Section 5-1135 of the Counties Code, or Section 11-42.1-5 of the Illinois Municipal Code. Any affiliated entity or affiliated person of a business entity required to register under Section 20-160 of the Illinois Procurement Code, Section 3-109 of the Illinois Governmental Ethics Act, Section 5-1135 of the Counties Code, or Section 11-42.1-5 of the Illinois Municipal Code shall notify any political committee to which it makes a contribution that it is affiliated with a business entity registered with the State Board of Elections under Section 20-160 of the Illinois Procurement Code, Section 3-109 of the Illinois Governmental Ethics Act, Section 5-1135 of the Counties Code, or Section 11-42.1-5 of the Illinois Municipal Code.

(g) The State Board of Elections on its official website shall have a searchable database containing (i) all information required to be submitted to the Board under Section 20-160 of the Illinois Procurement Code, Section 3-109 of the Illinois Governmental Ethics Act, Section 5-1135 of the Counties Code, and Section 11-42.1-5 of the Illinois Municipal Code and (ii) all reports filed under this Article with the State Board of Elections by all political committees. For the purposes of databases maintained by the State Board of Elections, "searchable" means able to search by "political committee", as defined in this Article, and by "officeholder", "State agency", "business entity", "affiliated entity", and "affiliated person". No more than 90 days after the effective date of this amendatory Act of the 96th General Assembly, the database must be searchable by "county" and "municipality". The Board shall not place the name of a minor child on the website. However, the Board shall provide a link to all contributions made by anyone reporting the same residential address as any affiliated person. In addition, the State Board of Elections on its official website shall provide an electronic connection to any searchable database of State contracts maintained by the Comptroller, searchable by business entity.

(h) The State Board of Elections shall have rulemaking authority to implement this Section.

(Source: P.A. 95-971, eff. 1-1-09; 95-1038, eff. 3-11-09.)

Section 15. The Counties Code is amended by adding Sections 5-1133, 5-1135, and 5-1137 as follows:

(55 ILCS 5/5-1133 new)

Sec. 5-1133. Prohibition of political contributions.

(a) As used in this Section:

"Affiliated entity" means (i) any corporate parent and each operating subsidiary of the bidding or contracting business entity; (ii) each operating subsidiary of the corporate parent of the bidding or contracting business entity; (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 bidding or contracting 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 bidding or contracting business entity, or any 501(c) organization described in item (iii) related to that business entity, is the sponsoring entity. "Affiliated entity" does not include an entity prohibited by federal law from making contributions or expenditures in connection with a federal, state, or local election.

"Affiliated person" means (i) any person with any ownership interest or distributive share of the bidding or contracting business entity in excess of 7.5%, (ii) executive employees of the bidding or contracting business entity, and (iii) the spouse of any of those persons. "Affiliated person" does not include a person prohibited by federal law from making contributions or expenditures in connection with a federal, state, or local election.

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

"Contract" means all types of agreements entered into by counties, including change orders and renewals, regardless of what they may be called, for the procurement, use, or disposal of supplies, services, professional or artistic services, or construction or for leases of real property, whether the county is lessor or lessee, or capital improvements, and including master contracts, contracts for financing through use of installment or lease-purchase arrangements, renegotiated contracts, amendments to contracts, and change orders.

"Contract with a county" means any contract, as defined in this subsection (a), between a business entity and a county let or awarded pursuant to this Code. The term "contract" does not include cost reimbursement contracts; grants, including but are not limited to grants for job training or transportation; and grants, loans, or tax credit agreements for economic development purposes.

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

"Declared candidate" means a person who has filed a statement of candidacy and petition for nomination or election as required under the Election Code.

"Executive employee" means (i) the President, Chairperson, or Chief Executive Officer of a business entity and any other individual that fulfills equivalent duties as the President, Chairperson of the Board, or Chief Executive Officer of a business entity; and (ii) any employee of a business entity whose compensation is determined directly, in whole or in part, by the award or payment of contracts by a county to the entity employing the employee. A regular salary that is paid irrespective of the award or payment of a contract with a county shall not constitute "compensation" under item (ii) of this definition. "Executive employee" does not include any person prohibited by federal law from making contributions or expenditures in connection with a federal, state, or local election.

"Officeholder" means any county official elected or appointed to fill a vacancy in an elected county office.

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

(b) Any business entity whose contracts with a county, in the aggregate, annually total more than $25,000, and any affiliated entities or affiliated persons of that business entity, are prohibited from making any contributions to any political committees established to promote the candidacy of (i) the officeholder responsible for awarding the contracts, (ii) any member of the governing body of the county if the governing body awarded or approved the contracts, or (iii) any other declared candidate for that office or the governing body of the county. This prohibition is effective for the duration of the term of office of the incumbent officeholder awarding the contracts or any member of the governing body of the county if the governing body awarded or approved the contracts or for a period of 2 years following the expiration or termination of the contracts, whichever is longer.

(c) Any business entity whose aggregate pending bids and proposals on contracts with a county total more than $25,000, or whose aggregate pending bids and proposals on contracts with a county combined with the business entity's aggregate annual total value of contracts with a county exceed $25,000, and any affiliated entities or affiliated persons of that business entity, are prohibited from making any contributions to any political committee established to promote the candidacy of the officeholder responsible for awarding the contract or any member of the governing body of the county if the governing body awarded or approved the contracts on which the business entity has submitted a bid or proposal during the period beginning on the date the invitation for bids or request for proposals is issued and ending on the day after the date the contract is awarded.

(d) All contracts between a county and a business entity that violate subsection (b) or (c) are voidable. If a business entity violates subsection (b) 3 or more times within a 36-month period, then all contracts between the county and that business entity are void, and that business entity may not bid or respond to any invitation to bid or request for proposals from the county or otherwise enter into any contract with the county for 3 years after the date of the last violation. A notice of each violation and the penalty imposed shall be published in a newspaper of general circulation within the county.

(e) Any political committee that has received a contribution in violation of subsection (b) or (c) shall pay an amount equal to the value of the contribution to the county no more than 30 days after notice of the violation concerning the contribution appears in a newspaper of general circulation within the county. Payments received by the county pursuant to this subsection shall be deposited into the county's general fund.

(f) A county may not regulate campaign contributions in a manner inconsistent with this Section. This Section is a limitation under subsection (i) of Section 6 of Article VII of the Illinois Constitution on the concurrent exercise by home rule units of powers and functions exercised by the State.

(55 ILCS 5/5-1135 new)

Sec. 5-1135. Business entities; registration with the State Board of Elections.

(a) For purposes of this Section, the terms "business entity", "contract", "contract with a county", "affiliated entity", and "affiliated person" have the meanings ascribed to those terms in Section 5-1133.

(b) Every bid submitted to and every contract executed by a county on or after the effective date of this amendatory Act of the 96th General Assembly shall contain (1) a certification by the bidder or contractor that either (i) the bidder or contractor is not required to register as a business entity with the State Board of Elections pursuant to this Section or (ii) the bidder or contractor has registered as a business entity with the State Board of Elections and acknowledges a continuing duty to update the registration and (2) a statement that the contract is voidable for the bidder's or contractor's failure to comply with this Section.

(c) Within 30 days after the effective date of this amendatory Act of the 96th General Assembly, each business entity (i) whose aggregate bids and proposals on contracts with a county annually total more than $25,000, (ii) whose aggregate bids and proposals on contracts with a county combined with the business entity's aggregate annual total value of contracts with the county exceed $25,000, or (iii) whose contracts with a county, in the aggregate, annually total more than $25,000 shall register with the State Board of Elections in accordance with Section 9-35 of the Election Code. A business entity required to register under this subsection shall submit a copy of the certificate of registration to the county clerk within 90 days after the effective date of this amendatory Act of the 96th General Assembly. A business entity required to register under this subsection due to item (i) or (ii) has a continuing duty to ensure that the registration is accurate during the period beginning on the date of registration and ending on the day after the date the contract is awarded; any change in information must be reported to the State Board of Elections within 2 business days following the change. A business entity required to register under this subsection due to item (iii) has a continuing duty to ensure that the registration is accurate in accordance with subsection (e).

(d) Any business entity, not required under subsection (c) to register within 30 days after the effective date of this amendatory Act of the 96th General Assembly, whose aggregate bids and proposals on contracts with a county annually total more than $25,000, or whose aggregate bids and proposals on contracts with a county combined with the business entity's aggregate annual total value of contracts with a county exceed $25,000, shall register with the State Board of Elections in accordance with Section 9-35 of the Election Code before submitting to a county the bid or proposal whose value causes the business entity to fall within the monetary description of this subsection. A business entity required to register under this subsection has a continuing duty to ensure that the registration is accurate during the period beginning on the date of registration and ending on the day after the date the contract is awarded. Any change in information must be reported to the State Board of Elections within 5 business days following that change or no later than a day before the contract is awarded, whichever date is earlier.

(e) A business entity whose contracts with a county, in the aggregate, annually total more than $25,000 must maintain its registration under this Section and has a continuing duty to ensure that the registration is accurate for the duration of the term of office of the incumbent officeholder awarding the contracts or any member of the governing body of the county if the governing body awarded or approved the contracts or for a period of 2 years following the expiration or termination of the contracts, whichever is longer. A business entity, required to register under this subsection, has a continuing duty to report any changes on a quarterly basis to the State Board of Elections within 10 business days following the last day of January, April, July, and October of each year. Any update pursuant to this paragraph that is received beyond that date is presumed late and the civil penalty authorized by subsection (e) of Section 9-35 of the Election Code may be assessed.

Also, if a business entity required to register under this subsection has a pending bid or proposal, any change in information shall be reported to the State Board of Elections within 5 business days or no later than a day before the contract is awarded, whichever date is earlier.

(f) A business entity's continuing duty under this Section to ensure the accuracy of its registration includes the requirement that the business entity notify the State Board of Elections of any change in information, including but not limited to changes of affiliated entities or affiliated persons.

(g) A copy of a certificate of registration must accompany any bid or proposal for a contract with a county by a business entity required to register under this Section. A county shall not accept a bid or proposal unless the certificate is submitted to the county with the bid or proposal.

(h) A registration, and any changes to a registration, must include the business entity's verification of accuracy and subjects the business entity to the penalties of the laws of this State for perjury.

In addition to any penalty under Section 9-35 of the Election Code, intentional, willful, or material failure to disclose information required for registration shall render the contract, bid, proposal, or other procurement relationship voidable by the governing body of the county if the members of the governing body deem it to be in the best interest of the county.

(i) This Section applies regardless of the method of source selection used in awarding the contract.

(j) A county may not regulate the submission of bids in a manner inconsistent with this Section. This Section is a limitation under subsection (i) of Section 6 of Article VII of the Illinois Constitution on the concurrent exercise by home rule units of powers and functions exercised by the State.

(55 ILCS 5/5-1137 new)

Sec. 5-1137. Procurement communications reporting requirement.

(a) Any written or oral communication received by a county officeholder that imparts or requests material information or makes a material argument regarding potential action concerning a procurement matter, including, but not limited to, an application, a contract, or a project, shall be reported to the ethics officer for the county that the officeholder represents. These communications do not include the following: (i) statements by a person publicly made in a public forum; (ii) statements regarding matters of procedure and practice, such as format, the number of copies required, the manner of filing, and the status of a matter; and (iii) statements made by a county officeholder to the ethics officer for the county. The provisions of this Section shall not apply to communications regarding the administration and implementation of an existing contract, except communications regarding change orders or the renewal or extension of a contract.

(b) The report required by subsection (a) shall be submitted monthly and include at least the following: (i) the date and time of each communication; (ii) the identity of each person from whom the written or oral communication was received, the individual or entity represented by that person, and any action the person requested or recommended; (iii) the identity and job title of the person to whom each communication was made; (iv) if a response is made, the identity and job title of the person making each response; (v) a detailed summary of the points made by each person involved in the communication; (vi) the duration of the communication; (vii) the location or locations of all persons involved in the communication and, if the communication occurred by telephone, the telephone numbers for the callers and recipients of the communication; and (viii) any other pertinent information.

(c) Additionally, when an oral communication made by a person required to register as a lobbyist by the county or under the Lobbyist Registration Act is received by a county officeholder that is covered under this Section, all individuals who initiate or participate in the oral communication shall submit a written report to that county officeholder that memorializes the communication and includes, but is not limited to, the items listed in subsection (b).

(d) The ethics officer for the county shall make each report submitted pursuant to this Section available on the county's official website within 7 days after his or her receipt of the report. If the county does not maintain a website, then the ethics officer shall publish each report in a newspaper of general circulation within the county within 7 days after his or her receipt of the report. The governing body of the county may promulgate rules to ensure compliance with this Section.

(e) The reporting requirements shall also be conveyed through ethics training under the State Officials and Employees Ethics Act and county resolution or ordinance. An employee who knowingly and intentionally violates this Section shall be subject to suspension or discharge. The governing body of the county shall promulgate rules to implement this Section.

(f) For the purposes of this Section, "county officeholder" means any county official elected or appointed to fill a vacancy in an elected county office.

(g) A county may not regulate the reporting of procurement communications in a manner inconsistent with this Section. This Section is a limitation under subsection (i) of Section 6 of Article VII of the Illinois Constitution on the concurrent exercise by home rule units of powers and functions exercised by the State.

Section 20. The Illinois Municipal Code is amended by adding Sections 11-42.1-3, 11-42.1-5, and 11-42.1-10 as follows:

(65 ILCS 5/11-42.1-3 new)

Sec. 11-42.1-3. Prohibition of political contributions.

(a) As used in this Section:

"Affiliated entity" means (i) any corporate parent and each operating subsidiary of the bidding or contracting business entity; (ii) each operating subsidiary of the corporate parent of the bidding or contracting business entity; (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 bidding or contracting 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 bidding or contracting business entity, or any 501(c) organization described in item (iii) related to that business entity, is the sponsoring entity. "Affiliated entity" does not include an entity prohibited by federal law from making contributions or expenditures in connection with a federal, state, or local election.

"Affiliated person" means (i) any person with any ownership interest or distributive share of the bidding or contracting business entity in excess of 7.5%, (ii) executive employees of the bidding or contracting business entity, and (iii) the spouse of any of those persons. "Affiliated person" does not include a person prohibited by federal law from making contributions or expenditures in connection with a federal, state, or local election.

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

"Contract" means all types of agreements entered into by municipalities, including change orders and renewals, regardless of what they may be called, for the procurement, use, or disposal of supplies, services, professional or artistic services, or construction or for leases of real property, whether the municipality is lessor or lessee, or capital improvements, and including master contracts, contracts for financing through use of installment or lease-purchase arrangements, renegotiated contracts, amendments to contracts, and change orders.

"Contract with a municipality" means any contract, as defined in this subsection (a), between a business entity and a municipality let or awarded pursuant to this Code. The term "contract" does not include cost reimbursement contracts; grants, including but are not limited to grants for job training or transportation; and grants, loans, or tax credit agreements for economic development purposes.

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

"Declared candidate" means a person who has filed a statement of candidacy and petition for nomination or election as required under the Election Code.

"Executive employee" means (i) the President, Chairperson, or Chief Executive Officer of a business entity and any other individual that fulfills equivalent duties as the President, Chairperson of the Board, or Chief Executive Officer of a business entity; and (ii) any employee of a business entity whose compensation is determined directly, in whole or in part, by the award or payment of contracts by a municipality to the entity employing the employee. A regular salary that is paid irrespective of the award or payment of a contract with a municipality shall not constitute "compensation" under item (ii) of this definition. "Executive employee" does not include any person prohibited by federal law from making contributions or expenditures in connection with a federal, state, or local election.

"Officeholder" means any municipal official elected or appointed to fill a vacancy in an elected municipal office.

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

(b) Any business entity whose contracts with a municipality, in the aggregate, annually total more than $25,000, and any affiliated entities or affiliated persons of that business entity, are prohibited from making any contributions to any political committees established to promote the candidacy of (i) the officeholder responsible for awarding the contracts, (ii) any member of the governing body of the municipality if the governing body awarded or approved the contracts, or (iii) any other declared candidate for that office or the governing body of the municipality. This prohibition is effective for the duration of the term of office of the incumbent officeholder awarding the contracts or any member of the governing body of the municipality if the governing body awarded or approved the contracts or for a period of 2 years following the expiration or termination of the contracts, whichever is longer.

(c) Any business entity whose aggregate pending bids and proposals on contracts with a municipality total more than $25,000, or whose aggregate pending bids and proposals on contracts with a municipality combined with the business entity's aggregate annual total value of contracts with a municipality exceed $25,000, and any affiliated entities or affiliated persons of that business entity, are prohibited from making any contributions to any political committee established to promote the candidacy of the officeholder responsible for awarding the contract or any member of the governing body of the municipality if the governing body awarded or approved the contracts on which the business entity has submitted a bid or proposal during the period beginning on the date the invitation for bids or request for proposals is issued and ending on the day after the date the contract is awarded.

(d) All contracts between a municipality and a business entity that violate subsection (b) or (c) are voidable. If a business entity violates subsection (b) 3 or more times within a 36-month period, then all contracts between the municipality and that business entity are void, and that business entity may not bid or respond to any invitation to bid or request for proposals from the municipality or otherwise enter into any contract with the municipality for 3 years after the date of the last violation. A notice of each violation and the penalty imposed shall be published in a newspaper of general circulation within the municipality.

(e) Any political committee that has received a contribution in violation of subsection (b) or (c) shall pay an amount equal to the value of the contribution to the municipality no more than 30 days after notice of the violation concerning the contribution appears in a newspaper of general circulation within the municipality. Payments received by the municipality pursuant to this subsection shall be deposited into the municipality's general fund.

(f) A municipality may not regulate campaign contributions in a manner inconsistent with this Section. This Section is a limitation under subsection (i) of Section 6 of Article VII of the Illinois Constitution on the concurrent exercise by home rule units of powers and functions exercised by the State.

(65 ILCS 5/11-42.1-5 new)

Sec. 11-42.1-5. Business entities; registration with the State Board of Elections.

(a) For purposes of this Section, the terms "business entity", "contract", "contract with a municipality", "affiliated entity", and "affiliated person" have the meanings ascribed to those terms in Section 11-42.1-3.

(b) Every bid submitted to and every contract executed by a municipality on or after the effective date of this amendatory Act of the 96th General Assembly shall contain (1) a certification by the bidder or contractor that either (i) the bidder or contractor is not required to register as a business entity with the State Board of Elections pursuant to this Section or (ii) the bidder or contractor has registered as a business entity with the State Board of Elections and acknowledges a continuing duty to update the registration and (2) a statement that the contract is voidable for the bidder's or contractor's failure to comply with this Section.

(c) Within 30 days after the effective date of this amendatory Act of the 96th General Assembly, each business entity (i) whose aggregate bids and proposals on contracts with a municipality annually total more than $25,000, (ii) whose aggregate bids and proposals on contracts with a municipality combined with the business entity's aggregate annual total value of contracts with the municipality exceed $25,000, or (iii) whose contracts with a municipality, in the aggregate, annually total more than $25,000 shall register with the State Board of Elections in accordance with Section 9-35 of the Election Code. A business entity required to register under this subsection shall submit a copy of the certificate of registration to the municipal clerk within 90 days after the effective date of this amendatory Act of the 96th General Assembly. A business entity required to register under this subsection due to item (i) or (ii) has a continuing duty to ensure that the registration is accurate during the period beginning on the date of registration and ending on the day after the date the contract is awarded; any change in information must be reported to the State Board of Elections within 2 business days following the change. A business entity required to register under this subsection due to item (iii) has a continuing duty to ensure that the registration is accurate in accordance with subsection (e).

(d) Any business entity, not required under subsection (c) to register within 30 days after the effective date of this amendatory Act of the 96th General Assembly, whose aggregate bids and proposals on contracts with a municipality annually total more than $25,000, or whose aggregate bids and proposals on contracts with a municipality combined with the business entity's aggregate annual total value of contracts with a municipality exceed $25,000, shall register with the State Board of Elections in accordance with Section 9-35 of the Election Code before submitting to a municipality the bid or proposal whose value causes the business entity to fall within the monetary description of this subsection. A business entity required to register under this subsection has a continuing duty to ensure that the registration is accurate during the period beginning on the date of registration and ending on the day after the date the contract is awarded. Any change in information must be reported to the State Board of Elections within 5 business days following that change or no later than a day before the contract is awarded, whichever date is earlier.

(e) A business entity whose contracts with a municipality, in the aggregate, annually total more than $25,000 must maintain its registration under this Section and has a continuing duty to ensure that the registration is accurate for the duration of the term of office of the incumbent officeholder awarding the contracts or any member of the governing body of the municipality if the governing body awarded or approved the contracts or for a period of 2 years following the expiration or termination of the contracts, whichever is longer. A business entity, required to register under this subsection, has a continuing duty to report any changes on a quarterly basis to the State Board of Elections within 10 business days following the last day of January, April, July, and October of each year. Any update pursuant to this paragraph that is received beyond that date is presumed late and the civil penalty authorized by subsection (e) of Section 9-35 of the Election Code may be assessed.

Also, if a business entity required to register under this subsection has a pending bid or proposal, any change in information shall be reported to the State Board of Elections within 5 business days or no later than a day before the contract is awarded, whichever date is earlier.

(f) A business entity's continuing duty under this Section to ensure the accuracy of its registration includes the requirement that the business entity notify the State Board of Elections of any change in information, including but not limited to changes of affiliated entities or affiliated persons.

(g) A copy of a certificate of registration must accompany any bid or proposal for a contract with a municipality by a business entity required to register under this Section. A municipality shall not accept a bid or proposal unless the certificate is submitted to the municipality with the bid or proposal.

(h) A registration, and any changes to a registration, must include the business entity's verification of accuracy and subjects the business entity to the penalties of the laws of this State for perjury.

In addition to any penalty under Section 9-35 of the Election Code, intentional, willful, or material failure to disclose information required for registration shall render the contract, bid, proposal, or other procurement relationship voidable by the governing body of the municipality if the members of the governing body deem it to be in the best interest of the municipality.

(i) This Section applies regardless of the method of source selection used in awarding the contract.

(j) A municipality may not regulate the submission of bids in a manner inconsistent with this Section. This Section is a limitation under subsection (i) of Section 6 of Article VII of the Illinois Constitution on the concurrent exercise by home rule units of powers and functions exercised by the State.

(65 ILCS 5/11-42.1-10 new)

Sec. 11-42.1-10. Procurement communications reporting requirement.

(a) Any written or oral communication received by a municipal officeholder that imparts or requests material information or makes a material argument regarding potential action concerning a procurement matter, including, but not limited to, an application, a contract, or a project, shall be reported to the ethics officer for the municipality that the officeholder represents. These communications do not include the following: (i) statements by a person publicly made in a public forum; (ii) statements regarding matters of procedure and practice, such as format, the number of copies required, the manner of filing, and the status of a matter; and (iii) statements made by a municipal officeholder to the ethics officer for the municipality. The provisions of this Section shall not apply to communications regarding the administration and implementation of an existing contract, except communications regarding change orders or the renewal or extension of a contract.

(b) The report required by subsection (a) shall be submitted monthly and include at least the following: (i) the date and time of each communication; (ii) the identity of each person from whom the written or oral communication was received, the individual or entity represented by that person, and any action the person requested or recommended; (iii) the identity and job title of the person to whom each communication was made; (iv) if a response is made, the identity and job title of the person making each response; (v) a detailed summary of the points made by each person involved in the communication; (vi) the duration of the communication; (vii) the location or locations of all persons involved in the communication and, if the communication occurred by telephone, the telephone numbers for the callers and recipients of the communication; and (viii) any other pertinent information.

(c) Additionally, when an oral communication made by a person required to register as a lobbyist by the municipality or under the Lobbyist Registration Act is received by a municipal officeholder that is covered under this Section, all individuals who initiate or participate in the oral communication shall submit a written report to that municipal officeholder that memorializes the communication and includes, but is not limited to, the items listed in subsection (b).

(d) The ethics officer for the municipality shall make each report submitted pursuant to this Section available on the municipality's official website within 7 days after his or her receipt of the report. If the municipality does not maintain a website, then the ethics officer shall publish each report in a newspaper of general circulation within the municipality within 7 days after his or her receipt of the report. The governing body of the municipality may promulgate rules to ensure compliance with this Section.

(e) The reporting requirements shall also be conveyed through ethics training under the State Officials and Employees Ethics Act and municipal resolution or ordinance. An employee who knowingly and intentionally violates this Section shall be subject to suspension or discharge. The governing body of the municipality shall promulgate rules to implement this Section.

(f) For the purposes of this Section, "municipal officeholder" means any municipal official elected or appointed to fill a vacancy in an elected municipal office.

(g) A municipality may not regulate the reporting of procurement communications in a manner inconsistent with this Section. This Section is a limitation under subsection (i) of Section 6 of Article VII of the Illinois Constitution on the concurrent exercise by home rule units of powers and functions exercised by the State.

Section 90. The State Mandates Act is amended by adding Section 8.34 as follows:

(30 ILCS 805/8.34 new)

Sec. 8.34. Exempt mandate. Notwithstanding Sections 6 and 8 of this Act, no reimbursement by the State is required for the implementation of any mandate created by this amendatory Act of the 96th General Assembly.