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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    (b-5) The Department of Central Management Services shall
12submit an annual report to the Governor and the General
13Assembly that shall include the following:
14        (1) a year-by-year comparison of the number of
15    certifications the State has issued to veteran-owned small
16    businesses and service-disabled veteran-owned small
17    businesses;
18        (2) the obstacles, if any, the Department of Central
19    Management Services faces when certifying veteran-owned
20    businesses and possible rules or changes to rules to
21    address those issues;
22        (3) a year-by-year comparison of awarded contracts to
23    certified veteran-owned small businesses and
24    service-disabled veteran-owned small businesses; and
25        (4) any other information that the Department of
26    Central Management Services deems necessary to assist



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1    veteran-owned small businesses and service-disabled
2    veteran-owned small businesses to become certified with
3    the State.
4    The Department of Central Management Services shall
5conduct a minimum of 2 outreach events per year to ensure that
6veteran-owned small businesses and service-disabled
7veteran-owned small businesses know about the procurement
8opportunities and certification requirements with the State.
9The Department of Central Management Services may receive
10appropriations for outreach.
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 a determination made by the Illinois
10Department of Veterans' Affairs and the Department of Central
11Management Services that a business entity is a qualified
12service-disabled veteran-owned small business or a qualified
13veteran-owned small business for whatever purpose. A SDVOSB or
14VOSB owned and controlled by women, minorities, or persons with
15disabilities, as those terms are defined in Section 2 of the
16Business Enterprise for Minorities, Women, and Persons with
17Disabilities Act, may also select and designate whether that
18business is to be certified as a "women-owned business",
19"minority-owned business", or "business owned by a person with
20a disability", as defined in Section 2 of the Business
21Enterprise for Minorities, Women, and Persons with
22Disabilities Act.
23    "Control" means the exclusive, ultimate, majority, or sole
24control of the business, including but not limited to capital
25investment and all other financial matters, property,
26acquisitions, contract negotiations, legal matters,



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1officer-director-employee selection and comprehensive hiring,
2operation responsibilities, cost-control matters, income and
3dividend matters, financial transactions, and rights of other
4shareholders or joint partners. Control shall be real,
5substantial, and continuing, not pro forma. Control shall
6include the power to direct or cause the direction of the
7management and policies of the business and to make the
8day-to-day as well as major decisions in matters of policy,
9management, and operations. Control shall be exemplified by
10possessing the requisite knowledge and expertise to run the
11particular business, and control shall not include simple
12majority or absentee ownership.
13    "Qualified service-disabled veteran" means a veteran who
14has been found to have 10% or more service-connected disability
15by the United States Department of Veterans Affairs or the
16United States Department of Defense.
17    "Qualified service-disabled veteran-owned small business"
18or "SDVOSB" means a small business (i) that is at least 51%
19owned by one or more qualified service-disabled veterans living
20in Illinois or, in the case of a corporation, at least 51% of
21the stock of which is owned by one or more qualified
22service-disabled veterans living in Illinois; (ii) that has its
23home office in Illinois; and (iii) for which items (i) and (ii)
24are factually verified annually by the Department of Central
25Management Services.
26    "Qualified veteran-owned small business" or "VOSB" means a



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1small business (i) that is at least 51% owned by one or more
2qualified veterans living in Illinois or, in the case of a
3corporation, at least 51% of the stock of which is owned by one
4or more qualified veterans living in Illinois; (ii) that has
5its home office in Illinois; and (iii) for which items (i) and
6(ii) are factually verified annually by the Department of
7Central Management Services.
8    "Service-connected disability" means a disability incurred
9in the line of duty in the active military, naval, or air
10service as described in 38 U.S.C. 101(16).
11    "Small business" means a business that has annual gross
12sales of less than $75,000,000 as evidenced by the federal
13income tax return of the business. A firm with gross sales in
14excess of this cap may apply to the Department of Central
15Management Services for certification for a particular
16contract if the firm can demonstrate that the contract would
17have significant impact on SDVOSB or VOSB as suppliers or
18subcontractors or in employment of veterans or
19service-disabled veterans.
20    "State agency" has the meaning provided in Section 1-15.100
21of this Code.
22    "Time of hostilities with a foreign country" means any
23period of time in the past, present, or future during which a
24declaration of war by the United States Congress has been or is
25in effect or during which an emergency condition has been or is
26in effect that is recognized by the issuance of a Presidential



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1proclamation or a Presidential executive order and in which the
2armed forces expeditionary medal or other campaign service
3medals are awarded according to Presidential executive order.
4    "Veteran" means a person who (i) has been a member of the
5armed forces of the United States or, while a citizen of the
6United States, was a member of the armed forces of allies of
7the United States in time of hostilities with a foreign country
8and (ii) has served under one or more of the following
9conditions: (a) the veteran served a total of at least 6
10months; (b) the veteran served for the duration of hostilities
11regardless of the length of the engagement; (c) the veteran was
12discharged on the basis of hardship; or (d) the veteran was
13released from active duty because of a service connected
14disability and was discharged under honorable conditions.
15    (f) Certification program. The Illinois Department of
16Veterans' Affairs and the Department of Central Management
17Services shall work together to devise a certification
18procedure to assure that businesses taking advantage of this
19Section are legitimately classified as qualified
20service-disabled veteran-owned small businesses or qualified
21veteran-owned small businesses.
22    The Department of Central Management Services shall:
23        (1) compile and maintain a comprehensive list of
24    certified veteran-owned small businesses and
25    service-disabled veteran-owned small businesses;
26        (2) assist veteran-owned small businesses and



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1    service-disabled veteran-owned small businesses in
2    complying with the procedures for bidding on State
3    contracts;
4        (3) provide training for State agencies regarding the
5    goal setting process and compliance with veteran-owned
6    small business and service-disabled veteran-owned small
7    business goals; and
8        (4) implement and maintain an electronic portal on the
9    Department's website for the purpose of completing and
10    submitting veteran-owned small business and
11    service-disabled veteran-owned small business
12    certificates.
13    The Department of Central Management Services, in
14consultation with the Department of Veterans' Affairs, may
15develop programs and agreements to encourage cities, counties,
16towns, townships, and other certifying entities to adopt
17uniform certification procedures and certification recognition
19    (f-5) A business shall be certified by the Department of
20Central Management Services as a service-disabled
21veteran-owned small business or a veteran-owned small business
22for purposes of this Section if the Department of Central
23Management Services determines that the business has been
24certified as a service-disabled veteran-owned small business
25or a veteran-owned small business by the Vets First
26Verification Program of the United States Department of



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1Veterans Affairs, and the business has provided to the
2Department of Central Management Services the following:
3        (1) documentation showing certification as a
4    service-disabled veteran-owned small business or a
5    veteran-owned small business by the Vets First
6    Verification Program of the United States Department of
7    Veterans Affairs;
8        (2) proof that the business has its home office in
9    Illinois; and
10        (3) proof that the qualified veterans or qualified
11    service-disabled veterans live in the State of Illinois.
12    The policies of the Department of Central Management
13Services regarding recognition of the Vets First Verification
14Program of the United States Department of Veterans Affairs
15shall be reviewed annually by the Department of Central
16Management Services, and recognition of service-disabled
17veteran-owned small businesses and veteran-owned small
18businesses certified by the Vets First Verification Program of
19the United States Department of Veterans Affairs may be
20discontinued by the Department of Central Management Services
21by rule upon a finding that the certification standards of the
22Vets First Verification Program of the United States Department
23of Veterans Affairs do not meet the certification requirements
24established by the Department of Central Management Services.
25    (g) Penalties.
26        (1) Administrative penalties. The chief procurement



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1    officers appointed pursuant to Section 10-20 shall suspend
2    any person who commits a violation of Section 17-10.3 or
3    subsection (d) of Section 33E-6 of the Criminal Code of
4    2012 relating to this Section from bidding on, or
5    participating as a contractor, subcontractor, or supplier
6    in, any State contract or project for a period of not less
7    than 3 years, and, if the person is certified as a
8    service-disabled veteran-owned small business or a
9    veteran-owned small business, then the Department shall
10    revoke the business's certification for a period of not
11    less than 3 years. An additional or subsequent violation
12    shall extend the periods of suspension and revocation for a
13    period of not less than 5 years. The suspension and
14    revocation shall apply to the principals of the business
15    and any subsequent business formed or financed by, or
16    affiliated with, those principals.
17        (2) Reports of violations. Each State agency shall
18    report any alleged violation of Section 17-10.3 or
19    subsection (d) of Section 33E-6 of the Criminal Code of
20    2012 relating to this Section to the chief procurement
21    officers appointed pursuant to Section 10-20. The chief
22    procurement officers appointed pursuant to Section 10-20
23    shall subsequently report all such alleged violations to
24    the Attorney General, who shall determine whether to bring
25    a civil action against any person for the violation.
26        (3) List of suspended persons. The chief procurement



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1    officers appointed pursuant to Section 10-20 shall monitor
2    the status of all reported violations of Section 17-10.3 or
3    subsection (d) of Section 33E-6 of the Criminal Code of
4    1961 or the Criminal Code of 2012 relating to this Section
5    and shall maintain and make available to all State agencies
6    a central listing of all persons that committed violations
7    resulting in suspension.
8        (4) Use of suspended persons. During the period of a
9    person's suspension under paragraph (1) of this
10    subsection, a State agency shall not enter into any
11    contract with that person or with any contractor using the
12    services of that person as a subcontractor.
13        (5) Duty to check list. Each State agency shall check
14    the central listing provided by the chief procurement
15    officers appointed pursuant to Section 10-20 under
16    paragraph (3) of this subsection to verify that a person
17    being awarded a contract by that State agency, or to be
18    used as a subcontractor or supplier on a contract being
19    awarded by that State agency, is not under suspension
20    pursuant to paragraph (1) of this subsection.
21(Source: P.A. 100-43, eff. 8-9-17; 100-391, eff. 8-25-17;
22100-863, eff. 8-14-18.)
23    Section 99. Effective date. This Act takes effect upon
24becoming law.