101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020
SB0122

 

Introduced 1/29/2019, by Sen. Michael E. Hastings

 

SYNOPSIS AS INTRODUCED:
 
30 ILCS 500/45-57

    Amends the Illinois Procurement Code. Allows an authorized official of Cook County under the county's veteran-owned business program to certify to the Department of Veterans' Affairs that Cook County's certification standards do not conflict with the requirements of the Code concerning veteran-owned businesses. Requires that, upon certification, the Department of Central Management Services will notify Cook County businesses of certain information concerning the notification and ensure that parties who obtain certification under Cook County's program are immediately registered with the State as certified and qualified businesses under the Code. Requires the Department to contribute money to support the program under available appropriations. Effective immediately.


LRB101 06922 RJF 51954 b

 

 

A BILL FOR

 

SB0122LRB101 06922 RJF 51954 b

1    AN ACT concerning finance.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Illinois Procurement Code is amended by
5changing Section 45-57 as follows:
 
6    (30 ILCS 500/45-57)
7    Sec. 45-57. Veterans.
8    (a) Set-aside goal. It is the goal of the State to promote
9and encourage the continued economic development of small
10businesses owned and controlled by qualified veterans and that
11qualified service-disabled veteran-owned small businesses
12(referred to as SDVOSB) and veteran-owned small businesses
13(referred to as VOSB) participate in the State's procurement
14process as both prime contractors and subcontractors. Not less
15than 3% of the total dollar amount of State contracts, as
16defined by the Director of Central Management Services, shall
17be established as a goal to be awarded to SDVOSB and VOSB. That
18portion of a contract under which the contractor subcontracts
19with a SDVOSB or VOSB may be counted toward the goal of this
20subsection. The Department of Central Management Services
21shall adopt rules to implement compliance with this subsection
22by all State agencies.
23    (b) Fiscal year reports. By each November 1, each chief

 

 

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1procurement officer shall report to the Department of Central
2Management Services on all of the following for the immediately
3preceding fiscal year, and by each March 1 the Department of
4Central Management Services shall compile and report that
5information to the General Assembly:
6        (1) The total number of VOSB, and the number of SDVOSB,
7    who submitted bids for contracts under this Code.
8        (2) The total number of VOSB, and the number of SDVOSB,
9    who entered into contracts with the State under this Code
10    and the total value of those contracts.
11    (c) Yearly review and recommendations. Each year, each
12chief procurement officer shall review the progress of all
13State agencies under its jurisdiction in meeting the goal
14described in subsection (a), with input from statewide
15veterans' service organizations and from the business
16community, including businesses owned by qualified veterans,
17and shall make recommendations to be included in the Department
18of Central Management Services' report to the General Assembly
19regarding continuation, increases, or decreases of the
20percentage goal. The recommendations shall be based upon the
21number of businesses that are owned by qualified veterans and
22on the continued need to encourage and promote businesses owned
23by qualified veterans.
24    (d) Governor's recommendations. To assist the State in
25reaching the goal described in subsection (a), the Governor
26shall recommend to the General Assembly changes in programs to

 

 

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1assist businesses owned by qualified veterans.
2    (e) Definitions. As used in this Section:
3    "Armed forces of the United States" means the United States
4Army, Navy, Air Force, Marine Corps, Coast Guard, or service in
5active duty as defined under 38 U.S.C. Section 101. Service in
6the Merchant Marine that constitutes active duty under Section
7401 of federal Public Act 95-202 shall also be considered
8service in the armed forces for purposes of this Section.
9    "Certification" means: (1) a determination made by the
10Illinois Department of Veterans' Affairs and the Department of
11Central Management Services that a business entity is a
12qualified service-disabled veteran-owned small business or a
13qualified veteran-owned small business for whatever purpose;
14or (2) a certification made by an authorized official of Cook
15County under that county's veteran-owned business program or
16programs at least 60 days after the effective date of this
17amendatory Act of the 101st General Assembly, provided that, no
18less than 30 days after the effective date of this amendatory
19Act of the 101st General Assembly, and on an annual basis
20thereafter, that county official certifies to the Department of
21Veterans' Affairs that Cook County's certification standards
22do not conflict with the requirements of this Code, and further
23provided that upon issuing the certification, the county
24official immediately or as soon as practicable notifies the
25Department of Central Management Services of the fact and
26nature of the certification. A SDVOSB or VOSB owned and

 

 

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1controlled by women, minorities, or persons with disabilities,
2as those terms are defined in Section 2 of the Business
3Enterprise for Minorities, Women, and Persons with
4Disabilities Act, may also select and designate whether that
5business is to be certified as a "women-owned business",
6"minority-owned business", or "business owned by a person with
7a disability", as defined in Section 2 of the Business
8Enterprise for Minorities, Women, and Persons with
9Disabilities Act.
10    "Control" means the exclusive, ultimate, majority, or sole
11control of the business, including but not limited to capital
12investment and all other financial matters, property,
13acquisitions, contract negotiations, legal matters,
14officer-director-employee selection and comprehensive hiring,
15operation responsibilities, cost-control matters, income and
16dividend matters, financial transactions, and rights of other
17shareholders or joint partners. Control shall be real,
18substantial, and continuing, not pro forma. Control shall
19include the power to direct or cause the direction of the
20management and policies of the business and to make the
21day-to-day as well as major decisions in matters of policy,
22management, and operations. Control shall be exemplified by
23possessing the requisite knowledge and expertise to run the
24particular business, and control shall not include simple
25majority or absentee ownership.
26    "Qualified service-disabled veteran" means a veteran who

 

 

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1has been found to have 10% or more service-connected disability
2by the United States Department of Veterans Affairs or the
3United States Department of Defense.
4    "Qualified service-disabled veteran-owned small business"
5or "SDVOSB" means a small business (i) that is at least 51%
6owned by one or more qualified service-disabled veterans living
7in Illinois or, in the case of a corporation, at least 51% of
8the stock of which is owned by one or more qualified
9service-disabled veterans living in Illinois; (ii) that has its
10home office in Illinois; and (iii) for which items (i) and (ii)
11are factually verified annually by the Department of Central
12Management Services.
13    "Qualified veteran-owned small business" or "VOSB" means a
14small business (i) that is at least 51% owned by one or more
15qualified veterans living in Illinois or, in the case of a
16corporation, at least 51% of the stock of which is owned by one
17or more qualified veterans living in Illinois; (ii) that has
18its home office in Illinois; and (iii) for which items (i) and
19(ii) are factually verified annually by the Department of
20Central Management Services.
21    "Service-connected disability" means a disability incurred
22in the line of duty in the active military, naval, or air
23service as described in 38 U.S.C. 101(16).
24    "Small business" means a business that has annual gross
25sales of less than $75,000,000 as evidenced by the federal
26income tax return of the business. A firm with gross sales in

 

 

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1excess of this cap may apply to the Department of Central
2Management Services for certification for a particular
3contract if the firm can demonstrate that the contract would
4have significant impact on SDVOSB or VOSB as suppliers or
5subcontractors or in employment of veterans or
6service-disabled veterans.
7    "State agency" has the meaning provided in Section 1-15.100
8of this Code.
9    "Time of hostilities with a foreign country" means any
10period of time in the past, present, or future during which a
11declaration of war by the United States Congress has been or is
12in effect or during which an emergency condition has been or is
13in effect that is recognized by the issuance of a Presidential
14proclamation or a Presidential executive order and in which the
15armed forces expeditionary medal or other campaign service
16medals are awarded according to Presidential executive order.
17    "Veteran" means a person who (i) has been a member of the
18armed forces of the United States or, while a citizen of the
19United States, was a member of the armed forces of allies of
20the United States in time of hostilities with a foreign country
21and (ii) has served under one or more of the following
22conditions: (a) the veteran served a total of at least 6
23months; (b) the veteran served for the duration of hostilities
24regardless of the length of the engagement; (c) the veteran was
25discharged on the basis of hardship; or (d) the veteran was
26released from active duty because of a service connected

 

 

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1disability and was discharged under honorable conditions.
2    (f) Certification program. The Illinois Department of
3Veterans' Affairs and the Department of Central Management
4Services shall work together to devise a certification
5procedure to assure that businesses taking advantage of this
6Section are legitimately classified as qualified
7service-disabled veteran-owned small businesses or qualified
8veteran-owned small businesses.
9    (f-5) Cook County certification program.
10        (1) If, no less than 30 days after the effective date
11    of this amendatory Act of the 101st General Assembly and on
12    an annual basis thereafter, an authorized Cook County
13    official certifies to the Department of Veterans' Affairs
14    that Cook County's certification standards relative to its
15    veteran-owned business program or programs continue to
16    meet the requirements of this Act, the Department of
17    Central Management Services shall, through its website and
18    other online and print materials, with an authorized
19    official of Cook County: (i) notify parties seeking
20    certification under this Code that, if they are based in
21    Cook County, they may seek and obtain certification under
22    this Act by seeking and obtaining certification under the
23    county's veteran-owned business program or programs; (ii)
24    provide the parties with a website that immediately gives
25    them access to Cook County's program or programs; and (iii)
26    ensure that parties who obtain certification under Cook

 

 

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1    County's program or program are immediately registered
2    with the State as certified and qualified businesses under
3    this Code.
4        (2) Within available appropriations, the Department of
5    Central Management Services shall, by way of an annual
6    intergovernmental agreement, contribute a sum as is agreed
7    to by the parties to support efforts on the part of Cook
8    County to certify eligible veteran business enterprises on
9    behalf of the State and the county. Those efforts shall
10    include: (i) providing ongoing outreach through online
11    marketing and publicity; (ii) developing, organizing, and
12    hosting outreach events each year in the county; and (iii)
13    providing regular technical support.
14    (g) Penalties.
15        (1) Administrative penalties. The chief procurement
16    officers appointed pursuant to Section 10-20 shall suspend
17    any person who commits a violation of Section 17-10.3 or
18    subsection (d) of Section 33E-6 of the Criminal Code of
19    2012 relating to this Section from bidding on, or
20    participating as a contractor, subcontractor, or supplier
21    in, any State contract or project for a period of not less
22    than 3 years, and, if the person is certified as a
23    service-disabled veteran-owned small business or a
24    veteran-owned small business, then the Department shall
25    revoke the business's certification for a period of not
26    less than 3 years. An additional or subsequent violation

 

 

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1    shall extend the periods of suspension and revocation for a
2    period of not less than 5 years. The suspension and
3    revocation shall apply to the principals of the business
4    and any subsequent business formed or financed by, or
5    affiliated with, those principals.
6        (2) Reports of violations. Each State agency shall
7    report any alleged violation of Section 17-10.3 or
8    subsection (d) of Section 33E-6 of the Criminal Code of
9    2012 relating to this Section to the chief procurement
10    officers appointed pursuant to Section 10-20. The chief
11    procurement officers appointed pursuant to Section 10-20
12    shall subsequently report all such alleged violations to
13    the Attorney General, who shall determine whether to bring
14    a civil action against any person for the violation.
15        (3) List of suspended persons. The chief procurement
16    officers appointed pursuant to Section 10-20 shall monitor
17    the status of all reported violations of Section 17-10.3 or
18    subsection (d) of Section 33E-6 of the Criminal Code of
19    1961 or the Criminal Code of 2012 relating to this Section
20    and shall maintain and make available to all State agencies
21    a central listing of all persons that committed violations
22    resulting in suspension.
23        (4) Use of suspended persons. During the period of a
24    person's suspension under paragraph (1) of this
25    subsection, a State agency shall not enter into any
26    contract with that person or with any contractor using the

 

 

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1    services of that person as a subcontractor.
2        (5) Duty to check list. Each State agency shall check
3    the central listing provided by the chief procurement
4    officers appointed pursuant to Section 10-20 under
5    paragraph (3) of this subsection to verify that a person
6    being awarded a contract by that State agency, or to be
7    used as a subcontractor or supplier on a contract being
8    awarded by that State agency, is not under suspension
9    pursuant to paragraph (1) of this subsection.
10(Source: P.A. 100-43, eff. 8-9-17; 100-391, eff. 8-25-17;
11100-863, eff. 8-14-18.)
 
12    Section 99. Effective date. This Act takes effect upon
13becoming law.