Sen. Michael E. Hastings

Filed: 4/1/2019





10100SB0122sam001LRB101 06922 RJF 58804 a


2    AMENDMENT NO. ______. Amend Senate Bill 122 by replacing
3everything after the enacting clause with the following:
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



10100SB0122sam001- 2 -LRB101 06922 RJF 58804 a

1be established as a goal to be awarded to SDVOSB and VOSB. That
2portion of a contract under which the contractor subcontracts
3with a SDVOSB or VOSB may be counted toward the goal of this
4subsection. The Department of Central Management Services
5shall adopt rules to implement compliance with this subsection
6by all State agencies.
7    (b) Fiscal year reports. By each November 1, each chief
8procurement officer shall report to the Department of Central
9Management Services on all of the following for the immediately
10preceding fiscal year, and by each March 1 the Department of
11Central Management Services shall compile and report that
12information to the General Assembly:
13        (1) The total number of VOSB, and the number of SDVOSB,
14    who submitted bids for contracts under this Code.
15        (2) The total number of VOSB, and the number of SDVOSB,
16    who entered into contracts with the State under this Code
17    and the total value of those contracts.
18    (b-5) The Department of Central Management Services shall
19submit an annual report to the Governor and the General
20Assembly that shall include the following:
21        (1) a year-by-year comparison of the number of
22    certifications the State has issued to veteran-owned small
23    businesses and service-disabled veteran-owned small
24    businesses;
25        (2) the obstacles, if any, the Department of Central
26    Management Services faces when certifying veteran-owned



10100SB0122sam001- 3 -LRB101 06922 RJF 58804 a

1    businesses and possible rules or changes to rules to
2    address those issues;
3        (3) a year-by-year comparison of awarded contracts to
4    certified veteran-owned small businesses and
5    service-disabled veteran-owned small businesses; and
6        (4) any other information that the Department of
7    Central Management Services deems necessary to assist
8    veteran-owned small businesses and service-disabled
9    veteran-owned small businesses to become certified with
10    the State.
11    The Department of Central Management Services shall
12conduct a minimum of 2 outreach events per year to ensure that
13veteran-owned small businesses and service-disabled
14veteran-owned small businesses know about the procurement
15opportunities and certification requirements with the State.
16The Department of Central Management Services may receive
17appropriations for outreach.
18    (c) Yearly review and recommendations. Each year, each
19chief procurement officer shall review the progress of all
20State agencies under its jurisdiction in meeting the goal
21described in subsection (a), with input from statewide
22veterans' service organizations and from the business
23community, including businesses owned by qualified veterans,
24and shall make recommendations to be included in the Department
25of Central Management Services' report to the General Assembly
26regarding continuation, increases, or decreases of the



10100SB0122sam001- 4 -LRB101 06922 RJF 58804 a

1percentage goal. The recommendations shall be based upon the
2number of businesses that are owned by qualified veterans and
3on the continued need to encourage and promote businesses owned
4by qualified veterans.
5    (d) Governor's recommendations. To assist the State in
6reaching the goal described in subsection (a), the Governor
7shall recommend to the General Assembly changes in programs to
8assist businesses owned by qualified veterans.
9    (e) Definitions. As used in this Section:
10    "Armed forces of the United States" means the United States
11Army, Navy, Air Force, Marine Corps, Coast Guard, or service in
12active duty as defined under 38 U.S.C. Section 101. Service in
13the Merchant Marine that constitutes active duty under Section
14401 of federal Public Act 95-202 shall also be considered
15service in the armed forces for purposes of this Section.
16    "Certification" means a determination made by the Illinois
17Department of Veterans' Affairs and the Department of Central
18Management Services that a business entity is a qualified
19service-disabled veteran-owned small business or a qualified
20veteran-owned small business for whatever purpose. A SDVOSB or
21VOSB owned and controlled by women, minorities, or persons with
22disabilities, as those terms are defined in Section 2 of the
23Business Enterprise for Minorities, Women, and Persons with
24Disabilities Act, may also select and designate whether that
25business is to be certified as a "women-owned business",
26"minority-owned business", or "business owned by a person with



10100SB0122sam001- 5 -LRB101 06922 RJF 58804 a

1a disability", as defined in Section 2 of the Business
2Enterprise for Minorities, Women, and Persons with
3Disabilities Act.
4    "Control" means the exclusive, ultimate, majority, or sole
5control of the business, including but not limited to capital
6investment and all other financial matters, property,
7acquisitions, contract negotiations, legal matters,
8officer-director-employee selection and comprehensive hiring,
9operation responsibilities, cost-control matters, income and
10dividend matters, financial transactions, and rights of other
11shareholders or joint partners. Control shall be real,
12substantial, and continuing, not pro forma. Control shall
13include the power to direct or cause the direction of the
14management and policies of the business and to make the
15day-to-day as well as major decisions in matters of policy,
16management, and operations. Control shall be exemplified by
17possessing the requisite knowledge and expertise to run the
18particular business, and control shall not include simple
19majority or absentee ownership.
20    "Qualified service-disabled veteran" means a veteran who
21has been found to have 10% or more service-connected disability
22by the United States Department of Veterans Affairs or the
23United States Department of Defense.
24    "Qualified service-disabled veteran-owned small business"
25or "SDVOSB" means a small business (i) that is at least 51%
26owned by one or more qualified service-disabled veterans living



10100SB0122sam001- 6 -LRB101 06922 RJF 58804 a

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



10100SB0122sam001- 7 -LRB101 06922 RJF 58804 a

1    "State agency" has the meaning provided in Section 1-15.100
2of this Code.
3    "Time of hostilities with a foreign country" means any
4period of time in the past, present, or future during which a
5declaration of war by the United States Congress has been or is
6in effect or during which an emergency condition has been or is
7in effect that is recognized by the issuance of a Presidential
8proclamation or a Presidential executive order and in which the
9armed forces expeditionary medal or other campaign service
10medals are awarded according to Presidential executive order.
11    "Veteran" means a person who (i) has been a member of the
12armed forces of the United States or, while a citizen of the
13United States, was a member of the armed forces of allies of
14the United States in time of hostilities with a foreign country
15and (ii) has served under one or more of the following
16conditions: (a) the veteran served a total of at least 6
17months; (b) the veteran served for the duration of hostilities
18regardless of the length of the engagement; (c) the veteran was
19discharged on the basis of hardship; or (d) the veteran was
20released from active duty because of a service connected
21disability and was discharged under honorable conditions.
22    (f) Certification program. The Illinois Department of
23Veterans' Affairs and the Department of Central Management
24Services shall work together to devise a certification
25procedure to assure that businesses taking advantage of this
26Section are legitimately classified as qualified



10100SB0122sam001- 8 -LRB101 06922 RJF 58804 a

1service-disabled veteran-owned small businesses or qualified
2veteran-owned small businesses.
3    The Department of Central Management Services shall:
4        (1) compile and maintain a comprehensive list of
5    certified veteran-owned small businesses and
6    service-disabled veteran-owned small businesses;
7        (2) assist veteran-owned small businesses and
8    service-disabled veteran-owned small businesses in
9    complying with the procedures for bidding on state
10    contracts;
11        (3) provide training for State agencies regarding the
12    goal setting process and compliance with veteran-owned
13    small business and service-disabled veteran-owned small
14    business goals; and
15        (4) implement and maintain an electronic portal on the
16    Department's website for the purpose of completing and
17    submitting veteran-owned small business and
18    service-disabled veteran-owned small business
19    certificates.
20    The Department of Central Management Services, in
21consultation with the Department of Veteran Affairs, may
22develop programs and agreements to encourage cities, counties,
23towns, townships, and other certifying entities to adopt
24uniform certification procedures and certification recognition
26    (f-5) A business shall be certified by the Department of



10100SB0122sam001- 9 -LRB101 06922 RJF 58804 a

1Central Management Services as a service-disabled
2veteran-owned small business or a veteran-owned small business
3for purposes of this Section if the Department of Central
4Management Services determines that the business has been
5certified as a service-disabled veteran-owned small business
6or a veteran-owned small business by the Vets First
7Verification Program of the United States Department of
8Veterans Affairs, and the business has provided to the
9Department of Central Management Services the following:
10        (1) documentation showing certification as a
11    service-disabled veteran-owned small business or a
12    veteran-owned small business by the Vets First
13    Verification Program of the United States Department of
14    Veterans Affairs;
15        (2) proof that the business has its home office in
16    Illinois; and
17        (3) proof that the qualified veterans or qualified
18    service-disabled veterans live in the State of Illinois.
19    The policies of the Department of Central Management
20Services regarding recognition of the Vets First Verification
21Program of the United States Department of Veterans Affairs
22shall be reviewed annually by the Department of Central
23Management Services, and recognition of service-disabled
24veteran-owned small businesses and veteran-owned small
25businesses certified by the Vets First Verification Program of
26the United States Department of Veterans Affairs may be



10100SB0122sam001- 10 -LRB101 06922 RJF 58804 a

1discontinued by the Department of Central Management Services
2by rule upon a finding that the certification standards of the
3Vets First Verification Program of the United States Department
4of Veterans Affairs do not meet the certification requirements
5established by the Department of Central Management Services.
6    (g) Penalties.
7        (1) Administrative penalties. The chief procurement
8    officers appointed pursuant to Section 10-20 shall suspend
9    any person who commits a violation of Section 17-10.3 or
10    subsection (d) of Section 33E-6 of the Criminal Code of
11    2012 relating to this Section from bidding on, or
12    participating as a contractor, subcontractor, or supplier
13    in, any State contract or project for a period of not less
14    than 3 years, and, if the person is certified as a
15    service-disabled veteran-owned small business or a
16    veteran-owned small business, then the Department shall
17    revoke the business's certification for a period of not
18    less than 3 years. An additional or subsequent violation
19    shall extend the periods of suspension and revocation for a
20    period of not less than 5 years. The suspension and
21    revocation shall apply to the principals of the business
22    and any subsequent business formed or financed by, or
23    affiliated with, those principals.
24        (2) Reports of violations. Each State agency shall
25    report any alleged violation of Section 17-10.3 or
26    subsection (d) of Section 33E-6 of the Criminal Code of



10100SB0122sam001- 11 -LRB101 06922 RJF 58804 a

1    2012 relating to this Section to the chief procurement
2    officers appointed pursuant to Section 10-20. The chief
3    procurement officers appointed pursuant to Section 10-20
4    shall subsequently report all such alleged violations to
5    the Attorney General, who shall determine whether to bring
6    a civil action against any person for the violation.
7        (3) List of suspended persons. The chief procurement
8    officers appointed pursuant to Section 10-20 shall monitor
9    the status of all reported violations of Section 17-10.3 or
10    subsection (d) of Section 33E-6 of the Criminal Code of
11    1961 or the Criminal Code of 2012 relating to this Section
12    and shall maintain and make available to all State agencies
13    a central listing of all persons that committed violations
14    resulting in suspension.
15        (4) Use of suspended persons. During the period of a
16    person's suspension under paragraph (1) of this
17    subsection, a State agency shall not enter into any
18    contract with that person or with any contractor using the
19    services of that person as a subcontractor.
20        (5) Duty to check list. Each State agency shall check
21    the central listing provided by the chief procurement
22    officers appointed pursuant to Section 10-20 under
23    paragraph (3) of this subsection to verify that a person
24    being awarded a contract by that State agency, or to be
25    used as a subcontractor or supplier on a contract being
26    awarded by that State agency, is not under suspension



10100SB0122sam001- 12 -LRB101 06922 RJF 58804 a

1    pursuant to paragraph (1) of this subsection.
2(Source: P.A. 100-43, eff. 8-9-17; 100-391, eff. 8-25-17;
3100-863, eff. 8-14-18.)
4    Section 99. Effective date. This Act takes effect upon
5becoming law.".