Illinois General Assembly - Full Text of SB2348
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Full Text of SB2348  102nd General Assembly

SB2348 102ND GENERAL ASSEMBLY

  
  

 


 
102ND GENERAL ASSEMBLY
State of Illinois
2021 and 2022
SB2348

 

Introduced 2/26/2021, 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.


LRB102 10957 RJF 16289 b

 

 

A BILL FOR

 

SB2348LRB102 10957 RJF 16289 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
3immediately preceding fiscal year, and by each March 1 the
4Department of Central Management Services shall compile and
5report that information to the General Assembly:
6        (1) The total number of VOSB, and the number of
7    SDVOSB, who submitted bids for contracts under this Code.
8        (2) The total number of VOSB, and the number of
9    SDVOSB, who entered into contracts with the State under
10    this Code 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
18Department of Central Management Services' report to the
19General Assembly regarding continuation, increases, or
20decreases of the percentage goal. The recommendations shall be
21based upon the number of businesses that are owned by
22qualified veterans and on the continued need to encourage and
23promote businesses owned by 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
4States Army, Navy, Air Force, Marine Corps, Coast Guard, or
5service in active duty as defined under 38 U.S.C. Section 101.
6Service in the Merchant Marine that constitutes active duty
7under Section 401 of federal Public Act 95-202 shall also be
8considered service in the armed forces for purposes of this
9Section.
10    "Certification" means: (1) a determination made by the
11Illinois Department of Veterans' Affairs and the Department of
12Central Management Services that a business entity is a
13qualified service-disabled veteran-owned small business or a
14qualified veteran-owned small business for whatever purpose;
15or (2) a certification made by an authorized official of Cook
16County under that county's veteran-owned business program or
17programs at least 60 days after the effective date of this
18amendatory Act of the 102nd General Assembly, provided that,
19no less than 30 days after the effective date of this
20amendatory Act of the 102nd General Assembly, and on an annual
21basis thereafter, that county official certifies to the
22Department of Veterans' Affairs that Cook County's
23certification standards do not conflict with the requirements
24of this Code, and further provided that upon issuing the
25certification, the county official immediately or as soon as
26practicable notifies the Department of Central Management

 

 

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

 

 

SB2348- 5 -LRB102 10957 RJF 16289 b

1    "Qualified service-disabled veteran" means a veteran who
2has been found to have 10% or more service-connected
3disability by the United States Department of Veterans Affairs
4or the United States Department of Defense.
5    "Qualified service-disabled veteran-owned small business"
6or "SDVOSB" means a small business (i) that is at least 51%
7owned by one or more qualified service-disabled veterans
8living in Illinois or, in the case of a corporation, at least
951% of the stock of which is owned by one or more qualified
10service-disabled veterans living in Illinois; (ii) that has
11its home office in Illinois; and (iii) for which items (i) and
12(ii) are factually verified annually by the Department of
13Central Management Services.
14    "Qualified veteran-owned small business" or "VOSB" means a
15small business (i) that is at least 51% owned by one or more
16qualified veterans living in Illinois or, in the case of a
17corporation, at least 51% of the stock of which is owned by one
18or more qualified veterans living in Illinois; (ii) that has
19its home office in Illinois; and (iii) for which items (i) and
20(ii) are factually verified annually by the Department of
21Central Management Services.
22    "Service-connected disability" means a disability incurred
23in the line of duty in the active military, naval, or air
24service as described in 38 U.S.C. 101(16).
25    "Small business" means a business that has annual gross
26sales of less than $75,000,000 as evidenced by the federal

 

 

SB2348- 6 -LRB102 10957 RJF 16289 b

1income tax return of the business. A firm with gross sales in
2excess of this cap may apply to the Department of Central
3Management Services for certification for a particular
4contract if the firm can demonstrate that the contract would
5have significant impact on SDVOSB or VOSB as suppliers or
6subcontractors or in employment of veterans or
7service-disabled veterans.
8    "State agency" has the meaning provided in Section
91-15.100 of this Code.
10    "Time of hostilities with a foreign country" means any
11period of time in the past, present, or future during which a
12declaration of war by the United States Congress has been or is
13in effect or during which an emergency condition has been or is
14in effect that is recognized by the issuance of a Presidential
15proclamation or a Presidential executive order and in which
16the armed forces expeditionary medal or other campaign service
17medals are awarded according to Presidential executive order.
18    "Veteran" means a person who (i) has been a member of the
19armed forces of the United States or, while a citizen of the
20United States, was a member of the armed forces of allies of
21the United States in time of hostilities with a foreign
22country and (ii) has served under one or more of the following
23conditions: (a) the veteran served a total of at least 6
24months; (b) the veteran served for the duration of hostilities
25regardless of the length of the engagement; (c) the veteran
26was discharged on the basis of hardship; or (d) the veteran was

 

 

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1released from active duty because of a service connected
2disability and was discharged under honorable conditions.
3    (f) Certification program. The Illinois Department of
4Veterans' Affairs and the Department of Central Management
5Services shall work together to devise a certification
6procedure to assure that businesses taking advantage of this
7Section are legitimately classified as qualified
8service-disabled veteran-owned small businesses or qualified
9veteran-owned small businesses.
10    (f-5) Cook County certification program.
11        (1) If, no less than 30 days after the effective date
12    of this amendatory Act of the 102nd General Assembly and
13    on an annual basis thereafter, an authorized Cook County
14    official certifies to the Department of Veterans' Affairs
15    that Cook County's certification standards relative to its
16    veteran-owned business program or programs continue to
17    meet the requirements of this Act, the Department of
18    Central Management Services shall, through its website and
19    other online and print materials, with an authorized
20    official of Cook County: (i) notify parties seeking
21    certification under this Code that, if they are based in
22    Cook County, they may seek and obtain certification under
23    this Act by seeking and obtaining certification under the
24    county's veteran-owned business program or programs; (ii)
25    provide the parties with a website that immediately gives
26    them access to Cook County's program or programs; and

 

 

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

 

 

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

 

 

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1    contract with that person or with any contractor using the
2    services of that person as a subcontractor.
3        (5) Duty to check list. Each State agency shall check
4    the central listing provided by the chief procurement
5    officers appointed pursuant to Section 10-20 under
6    paragraph (3) of this subsection to verify that a person
7    being awarded a contract by that State agency, or to be
8    used as a subcontractor or supplier on a contract being
9    awarded by that State agency, is not under suspension
10    pursuant to paragraph (1) of this subsection.
11(Source: P.A. 100-43, eff. 8-9-17; 100-391, eff. 8-25-17;
12100-863, eff. 8-14-18.)
 
13    Section 99. Effective date. This Act takes effect upon
14becoming law.