97TH GENERAL ASSEMBLY
State of Illinois
2011 and 2012
SB3634

 

Introduced 2/10/2012, by Sen. Pamela J. Althoff

 

SYNOPSIS AS INTRODUCED:
 
30 ILCS 500/15-25
30 ILCS 500/20-120
30 ILCS 500/20-160
30 ILCS 500/50-35

    Amends the Illinois Procurement Code. Provides that notice of each contract that is awarded shall be posted in the online electronic Illinois Procurement Bulletin for 7 days prior to the execution of the contract. Provides that, for construction agency procurements (now, for procurements subject to the authority of the chief procurement officer for the Department of Transportation), the contract shall include the names and addresses of all known subcontractors with subcontracts with an annual value of more than $25,000. Provides that a copy of a certificate of registration filed with the State Board of Elections must be submitted to the State agency within 3 days after the submission deadline (now, must accompany any bid or proposal). Provides that all offers shall be accompanied by either a disclosure of financial interests or an affidavit stating that the most recent previous disclosure has not changed (now, shall be accompanied by a disclosure of financial interests). Provides that, when a bidder or offeror has previously disclosed a potential conflict of interest, and the circumstances have not materially changed for the current bid or offer under consideration, the bidder or offeror shall submit the Procurement Policy Board's previous written recommendation for the previous contract, bid, or offer, which shall automatically renew for the current bid or offer. Effective immediately.


LRB097 19814 PJG 65088 b

FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

SB3634LRB097 19814 PJG 65088 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 Sections 15-25, 20-120, 20-160, and 50-35 as follows:
 
6    (30 ILCS 500/15-25)
7    Sec. 15-25. Bulletin content.
8    (a) Invitations for bids. Notice of each and every contract
9that is offered, including renegotiated contracts and change
10orders, shall be published in the Bulletin, and all businesses
11listed on the Department of Transportation Disadvantaged
12Business Enterprise Directory, the Department of Central
13Management Services Business Enterprise Program and Small
14Business Vendors Directory, and the Capital Development
15Board's Directory of Certified Minority and Female Business
16Enterprises shall be furnished written instructions and
17information on how to register on each Procurement Bulletin
18maintained by the State. Such information shall be provided to
19each business within 30 days after the business' notice of
20certification. The applicable chief procurement officer may
21provide by rule an organized format for the publication of this
22information, but in any case it must include at least the date
23first offered, the date submission of offers is due, the

 

 

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1location that offers are to be submitted to, the purchasing
2State agency, the responsible State purchasing officer, a brief
3purchase description, the method of source selection,
4information of how to obtain a comprehensive purchase
5description and any disclosure and contract forms, and
6encouragement to prospective vendors to hire qualified
7veterans, as defined by Section 45-67 of this Code, and
8qualified Illinois minorities, women, persons with
9disabilities, and residents discharged from any Illinois adult
10correctional center.
11    (b) Contracts let. Notice of each and every contract that
12is let, including renegotiated contracts and change orders,
13shall be issued electronically to those bidders or offerors
14submitting responses to the solicitations, inclusive of the
15unsuccessful bidders, immediately upon contract let. Failure
16of any chief procurement officer to give such notice shall
17result in tolling the time for filing a bid protest up to 5
18business days. The apparent low bidder's award and all other
19bids from bidders responding to solicitations shall be posted
20on the agency's website the next business day.
21    (b-5) Contracts awarded. Notice of each and every contract
22that is awarded, including renegotiated contracts and change
23orders, shall be issued electronically to the successful
24responsible bidder or offeror, posted on the agency's website
25the next business day, and published in the next available
26subsequent Bulletin. The applicable chief procurement officer

 

 

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1may provide by rule an organized format for the publication of
2this information, but in any case it must include at least all
3of the information specified in subsection (a) as well as the
4name of the successful responsible bidder or offeror, the
5contract price, the number of unsuccessful responsive bidders,
6and any other disclosure specified in any Section of this Code.
7This notice must be posted in the online electronic Bulletin
8for 7 days prior to execution of the contract.
9    (c) Emergency purchase disclosure. Any chief procurement
10officer or State purchasing officer exercising emergency
11purchase authority under this Code shall publish a written
12description and reasons and the total cost, if known, or an
13estimate if unknown and the name of the responsible chief
14procurement officer and State purchasing officer, and the
15business or person contracted with for all emergency purchases
16in the next timely, practicable Bulletin. This notice must be
17posted in the online electronic Bulletin no later than 3
18business days after the contract is awarded. Notice of a
19hearing to extend an emergency contract must be posted in the
20online electronic Procurement Bulletin no later than 5 business
21days prior to the hearing.
22    (c-5) Business Enterprise Program report. Each purchasing
23agency shall post in the online electronic Bulletin a copy of
24its annual report of utilization of businesses owned by
25minorities, females, and persons with disabilities as
26submitted to the Business Enterprise Council for Minorities,

 

 

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1Females, and Persons with Disabilities pursuant to Section 6(c)
2of the Business Enterprise for Minorities, Females, and Persons
3with Disabilities Act within 10 business days after its
4submission of its report to the Council.
5    (c-10) Renewals. Notice of each contract renewal shall be
6posted in the online electronic Bulletin within 10 business
7days of the determination to renew the contract and the next
8available subsequent Bulletin. The notice shall include at
9least all of the information required in subsection (b).
10    (c-15) Sole source procurements. Before entering into a
11sole source contract, a chief procurement officer exercising
12sole source procurement authority under this Code shall publish
13a written description of intent to enter into a sole source
14contract along with a description of the item to be procured
15and the intended sole source contractor. This notice must be
16posted in the online electronic Procurement Bulletin before a
17sole source contract is awarded and at least 14 days before the
18hearing required by Section 20-25.
19    (d) Other required disclosure. The applicable chief
20procurement officer shall provide by rule for the organized
21publication of all other disclosure required in other Sections
22of this Code in a timely manner.
23    (e) The changes to subsections (b), (c), (c-5), (c-10), and
24(c-15) of this Section made by this amendatory Act of the 96th
25General Assembly apply to reports submitted, offers made, and
26notices on contracts executed on or after its effective date.

 

 

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1    (f) The Department of Central Management Services, the
2Capital Development Board, the Department of Transportation,
3and the higher education chief procurement officer shall
4provide the Procurement Policy Board with the information and
5resources necessary, and in a manner, to effectuate the purpose
6of this amendatory Act of the 96th General Assembly.
7(Source: P.A. 95-536, eff. 1-1-08; 96-795, eff. 7-1-10 (see
8Section 5 of P.A. 96-793 for the effective date of changes made
9by P.A. 96-795); 96-1444, eff. 8-20-10.)
 
10    (30 ILCS 500/20-120)
11    Sec. 20-120. Subcontractors.
12    (a) Any contract granted under this Code shall state
13whether the services of a subcontractor will or may be used.
14The contract shall include the names and addresses of all known
15subcontractors with subcontracts with an annual value of more
16than $25,000 and the expected amount of money each will receive
17under the contract. For construction agency procurements
18subject to the authority of the chief procurement officer
19appointed pursuant to subsection (a)(2) of Section 10-20, the
20contract shall include only the names and addresses of all
21known subcontractors of the primary contractor with
22subcontracts with an annual value of more than $25,000. The
23contractor shall provide the chief procurement officer or State
24purchasing officer a copy of any subcontract with an annual
25value of more than $25,000 so identified within 20 days after

 

 

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1the execution of the State contract or after execution of the
2subcontract, whichever is later. A subcontractor, or
3contractor on behalf of a subcontractor, may identify
4information that is deemed proprietary or confidential. If the
5chief procurement officer determines the information is not
6relevant to the primary contract, the chief procurement officer
7may excuse the inclusion of the information. If the chief
8procurement officer determines the information is proprietary
9or could harm the business interest of the subcontractor, the
10chief procurement officer may, in his or her discretion, redact
11the information. Redacted information shall not become part of
12the public record.
13    (b) If at any time during the term of a contract, a
14contractor adds or changes any subcontractors, he or she shall
15promptly notify, in writing, the chief procurement officer,
16State purchasing officer, or their designee of the names and
17addresses and the expected amount of money each new or replaced
18subcontractor will receive. The contractor shall provide to the
19responsible chief procurement officer a copy of the subcontract
20within 20 days after the execution of the subcontract.
21    (c) In addition to any other requirements of this Code, a
22subcontract subject to this Section must include all of the
23subcontractor's certifications required by Article 50 of the
24Code.
25    (d) This Section applies to procurements solicited on or
26after the effective date of this amendatory Act of the 96th

 

 

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1General Assembly.
2(Source: P.A. 96-795, eff. 7-1-10 (see Section 5 of P.A. 96-793
3for the effective date of P.A. 96-795); 96-920, eff. 7-1-10.)
 
4    (30 ILCS 500/20-160)
5    Sec. 20-160. Business entities; certification;
6registration with the State Board of Elections.
7    (a) For purposes of this Section, the terms "business
8entity", "contract", "State contract", "contract with a State
9agency", "State agency", "affiliated entity", and "affiliated
10person" have the meanings ascribed to those terms in Section
1150-37.
12    (b) Every bid submitted to and every contract executed by
13the State on or after January 1, 2009 (the effective date of
14Public Act 95-971) shall contain (1) a certification by the
15bidder or contractor that either (i) the bidder or contractor
16is not required to register as a business entity with the State
17Board of Elections pursuant to this Section or (ii) the bidder
18or contractor has registered as a business entity with the
19State Board of Elections and acknowledges a continuing duty to
20update the registration and (2) a statement that the contract
21is voidable under Section 50-60 for the bidder's or
22contractor's failure to comply with this Section.
23    (c) Within 30 days after the effective date of this
24amendatory Act of the 95th General Assembly, each business
25entity (i) whose aggregate bids and proposals on State

 

 

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1contracts annually total more than $50,000, (ii) whose
2aggregate bids and proposals on State contracts combined with
3the business entity's aggregate annual total value of State
4contracts exceed $50,000, or (iii) whose contracts with State
5agencies, in the aggregate, annually total more than $50,000
6shall register with the State Board of Elections in accordance
7with Section 9-35 of the Election Code. A business entity
8required to register under this subsection shall submit a copy
9of the certificate of registration to the applicable chief
10procurement officer within 90 days after the effective date of
11this amendatory Act of the 95th General Assembly. A business
12entity required to register under this subsection due to item
13(i) or (ii) has a continuing duty to ensure that the
14registration is accurate during the period beginning on the
15date of registration and ending on the day after the date the
16contract is awarded; any change in information must be reported
17to the State Board of Elections 5 business days following such
18change or no later than a day before the contract is awarded,
19whichever date is earlier. A business entity required to
20register under this subsection due to item (iii) has a
21continuing duty to ensure that the registration is accurate in
22accordance with subsection (e).
23    (d) Any business entity, not required under subsection (c)
24to register within 30 days after the effective date of this
25amendatory Act of the 95th General Assembly, whose aggregate
26bids and proposals on State contracts annually total more than

 

 

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1$50,000, or whose aggregate bids and proposals on State
2contracts combined with the business entity's aggregate annual
3total value of State contracts exceed $50,000, shall register
4with the State Board of Elections in accordance with Section
59-35 of the Election Code prior to submitting to a State agency
6the bid or proposal whose value causes the business entity to
7fall within the monetary description of this subsection. A
8business entity required to register under this subsection has
9a continuing duty to ensure that the registration is accurate
10during the period beginning on the date of registration and
11ending on the day after the date the contract is awarded. Any
12change in information must be reported to the State Board of
13Elections within 5 business days following such change or no
14later than a day before the contract is awarded, whichever date
15is earlier.
16    (e) A business entity whose contracts with State agencies,
17in the aggregate, annually total more than $50,000 must
18maintain its registration under this Section and has a
19continuing duty to ensure that the registration is accurate for
20the duration of the term of office of the incumbent
21officeholder awarding the contracts or for a period of 2 years
22following the expiration or termination of the contracts,
23whichever is longer. A business entity, required to register
24under this subsection, has a continuing duty to report any
25changes on a quarterly basis to the State Board of Elections
26within 10 business days following the last day of January,

 

 

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1April, July, and October of each year. Any update pursuant to
2this paragraph that is received beyond that date is presumed
3late and the civil penalty authorized by subsection (e) of
4Section 9-35 of the Election Code (10 ILCS 5/9-35) may be
5assessed.
6    Also, if a business entity required to register under this
7subsection has a pending bid or proposal, any change in
8information shall be reported to the State Board of Elections
9within 5 business days following such change or no later than a
10day before the contract is awarded, whichever date is earlier.
11    (f) A business entity's continuing duty under this Section
12to ensure the accuracy of its registration includes the
13requirement that the business entity notify the State Board of
14Elections of any change in information, including but not
15limited to changes of affiliated entities or affiliated
16persons.
17    (g) A copy of a certificate of registration must be
18submitted to the State agency within 3 business days following
19the submission deadline for accompany any bid or proposal for a
20contract with a State agency by a business entity required to
21register under this Section. A chief procurement officer shall
22not accept a bid or proposal unless the certificate is
23submitted to the agency within 3 business days after submission
24deadline for with the bid or proposal. Bids or offers on
25construction or construction-related services for construction
26agencies may satisfy the requirements of this subsection by

 

 

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1submitting a copy of the certificate during the
2prequalification application process.
3    (h) A registration, and any changes to a registration, must
4include the business entity's verification of accuracy and
5subjects the business entity to the penalties of the laws of
6this State for perjury.
7    In addition to any penalty under Section 9-35 of the
8Election Code, intentional, willful, or material failure to
9disclose information required for registration shall render
10the contract, bid, proposal, or other procurement relationship
11voidable by the chief procurement officer if he or she deems it
12to be in the best interest of the State of Illinois.
13    (i) This Section applies regardless of the method of source
14selection used in awarding the contract.
15(Source: P.A. 96-795, eff. 7-1-10 (see Section 5 of P.A. 96-793
16for the effective date of changes made by P.A. 96-795); 96-848,
17eff. 1-1-10; 97-333, eff. 8-12-11.)
 
18    (30 ILCS 500/50-35)
19    Sec. 50-35. Financial disclosure and potential conflicts
20of interest.
21    (a) All offers from responsive bidders or offerors with an
22annual value of more than $25,000, and all subcontracts
23identified as provided by Section 20-120 of this Code, shall be
24accompanied by either (i) a disclosure of the financial
25interests of the contractor, bidder, or proposer and each

 

 

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1subcontractor to be used or (ii) an affidavit, including a copy
2of the most recent financial disclosure, stating that the most
3recent previous disclosure has not changed, provided that no
4potential conflict of interest was identified pursuant to
5subsection (d). The financial disclosure or affidavit of each
6successful bidder or offeror and its subcontractors shall be
7incorporated as a material term of the contract and shall
8become part of the publicly available contract or procurement
9file maintained by the appropriate chief procurement officer.
10Each disclosure or affidavit under this Section and Section
1150-34 shall be signed and made under penalty of perjury by an
12authorized officer or employee on behalf of the bidder or
13offeror, and must be filed with the Procurement Policy Board.
14The Procurement Policy Board shall create a repository of
15current financial disclosures and affidavits accessible and
16searchable by State agencies subject to this Code.
17    (b) Disclosure shall include any ownership or distributive
18income share that is in excess of 5%, or an amount greater than
1960% of the annual salary of the Governor, of the disclosing
20entity or its parent entity, whichever is less, unless the
21contractor, bidder, or subcontractor (i) is a publicly traded
22entity subject to Federal 10K reporting, in which case it may
23submit its 10K disclosure in place of the prescribed
24disclosure, or (ii) is a privately held entity that is exempt
25from Federal 10k reporting but has more than 200 shareholders,
26in which case it may submit the information that Federal 10k

 

 

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1reporting companies are required to report under 17 CFR 229.401
2and list the names of any person or entity holding any
3ownership share that is in excess of 5% in place of the
4prescribed disclosure. The form of disclosure shall be
5prescribed by the applicable chief procurement officer and must
6include at least the names, addresses, and dollar or
7proportionate share of ownership of each person identified in
8this Section, their instrument of ownership or beneficial
9relationship, and notice of any potential conflict of interest
10resulting from the current ownership or beneficial
11relationship of each person identified in this Section having
12in addition any of the following relationships:
13        (1) State employment, currently or in the previous 3
14    years, including contractual employment of services.
15        (2) State employment of spouse, father, mother, son, or
16    daughter, including contractual employment for services in
17    the previous 2 years.
18        (3) Elective status; the holding of elective office of
19    the State of Illinois, the government of the United States,
20    any unit of local government authorized by the Constitution
21    of the State of Illinois or the statutes of the State of
22    Illinois currently or in the previous 3 years.
23        (4) Relationship to anyone holding elective office
24    currently or in the previous 2 years; spouse, father,
25    mother, son, or daughter.
26        (5) Appointive office; the holding of any appointive

 

 

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1    government office of the State of Illinois, the United
2    States of America, or any unit of local government
3    authorized by the Constitution of the State of Illinois or
4    the statutes of the State of Illinois, which office
5    entitles the holder to compensation in excess of expenses
6    incurred in the discharge of that office currently or in
7    the previous 3 years.
8        (6) Relationship to anyone holding appointive office
9    currently or in the previous 2 years; spouse, father,
10    mother, son, or daughter.
11        (7) Employment, currently or in the previous 3 years,
12    as or by any registered lobbyist of the State government.
13        (8) Relationship to anyone who is or was a registered
14    lobbyist in the previous 2 years; spouse, father, mother,
15    son, or daughter.
16        (9) Compensated employment, currently or in the
17    previous 3 years, by any registered election or re-election
18    committee registered with the Secretary of State or any
19    county clerk in the State of Illinois, or any political
20    action committee registered with either the Secretary of
21    State or the Federal Board of Elections.
22        (10) Relationship to anyone; spouse, father, mother,
23    son, or daughter; who is or was a compensated employee in
24    the last 2 years of any registered election or re-election
25    committee registered with the Secretary of State or any
26    county clerk in the State of Illinois, or any political

 

 

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1    action committee registered with either the Secretary of
2    State or the Federal Board of Elections.
3    (b-1) The disclosure required under this Section must also
4include the name and address of each lobbyist required to
5register under the Lobbyist Registration Act and other agent of
6the bidder or offeror who is not identified under subsections
7(a) and (b) and who has communicated, is communicating, or may
8communicate with any State officer or employee concerning the
9bid or offer. The disclosure under this subsection is a
10continuing obligation and must be promptly supplemented for
11accuracy throughout the process and throughout the term of the
12contract if the bid or offer is successful.
13    (b-2) The disclosure required under this Section must also
14include, for each of the persons identified in subsection (b)
15or (b-1), each of the following that occurred within the
16previous 10 years: debarment from contracting with any
17governmental entity; professional licensure discipline;
18bankruptcies; adverse civil judgments and administrative
19findings; and criminal felony convictions. The disclosure
20under this subsection is a continuing obligation and must be
21promptly supplemented for accuracy throughout the process and
22throughout the term of the contract if the bid or offer is
23successful.
24    (c) The disclosure in subsection (b) is not intended to
25prohibit or prevent any contract. The disclosure is meant to
26fully and publicly disclose any potential conflict to the chief

 

 

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1procurement officers, State purchasing officers, their
2designees, and executive officers so they may adequately
3discharge their duty to protect the State.
4    (d) When a potential for a conflict of interest is
5identified, discovered, or reasonably suspected, the chief
6procurement officer or State procurement officer shall send the
7contract to the Procurement Policy Board. The Board shall
8recommend, in a written statement to the bidder or offeror and
9the State agency writing, whether to allow or void the
10contract, bid, offer, or subcontract weighing the best interest
11of the State of Illinois. All recommendations shall be
12submitted to the chief procurement officer. The chief
13procurement officer must hold a public hearing if the
14Procurement Policy Board makes a recommendation to (i) void a
15contract or (ii) void a bid or offer and the chief procurement
16officer selected or intends to award the contract to the bidder
17or offeror. A chief procurement officer is prohibited from
18awarding a contract before a hearing if the Board
19recommendation does not support a bid or offer. The
20recommendation and proceedings of any hearing, if applicable,
21shall become part of the contract, bid, or proposal file and
22shall be available to the public. When a bidder, offeror, or
23subcontractor has previously disclosed a potential conflict of
24interest, and the circumstances of that potential conflict have
25not materially changed for the current bid, offer, or
26subcontract under consideration, the bidder or offeror shall

 

 

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1submit the written recommendation by the Board allowing the
2previous contract, bid, offer, or subcontract, and that
3recommendation shall automatically renew for the current bid,
4offer, or subcontract.
5    (e) These thresholds and disclosure do not relieve the
6chief procurement officer, the State purchasing officer, or
7their designees from reasonable care and diligence for any
8contract, bid, offer, or proposal. The chief procurement
9officer, the State purchasing officer, or their designees shall
10be responsible for using any reasonably known and publicly
11available information to discover any undisclosed potential
12conflict of interest and act to protect the best interest of
13the State of Illinois.
14    (f) Inadvertent or accidental failure to fully disclose
15shall render the contract, bid, proposal, subcontract, or
16relationship voidable by the chief procurement officer if he or
17she deems it in the best interest of the State of Illinois and,
18at his or her discretion, may be cause for barring from future
19contracts, bids, proposals, subcontracts, or relationships
20with the State for a period of up to 2 years.
21    (g) Intentional, willful, or material failure to disclose
22shall render the contract, bid, proposal, subcontract, or
23relationship voidable by the chief procurement officer if he or
24she deems it in the best interest of the State of Illinois and
25shall result in debarment from future contracts, bids,
26proposals, subcontracts, or relationships for a period of not

 

 

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1less than 2 years and not more than 10 years. Reinstatement
2after 2 years and before 10 years must be reviewed and
3commented on in writing by the Governor of the State of
4Illinois, or by an executive ethics board or commission he or
5she might designate. The comment shall be returned to the
6responsible chief procurement officer who must rule in writing
7whether and when to reinstate.
8    (h) In addition, all disclosures shall note any other
9current or pending contracts, proposals, subcontracts, leases,
10or other ongoing procurement relationships the bidding,
11proposing, offering, or subcontracting entity has with any
12other unit of State government and shall clearly identify the
13unit and the contract, proposal, lease, or other relationship.
14    (i) The contractor or bidder has a continuing obligation to
15supplement the disclosure required by this Section throughout
16the bidding process or during the term of any contract.
17(Source: P.A. 96-795, eff. 7-1-10 (see Section 5 of P.A. 96-793
18for the effective date of changes made by P.A. 96-795); 96-920,
19eff. 7-1-10; 97-490, eff. 8-22-11.)
 
20    Section 99. Effective date. This Act takes effect upon
21becoming law.