Illinois General Assembly - Full Text of SB0687
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Full Text of SB0687  102nd General Assembly

SB0687enr 102ND GENERAL ASSEMBLY

  
  
  

 


 
SB0687 EnrolledLRB102 12622 RJF 17960 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    (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
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 a determination made by the Illinois
11Department of Veterans' Affairs and the Department of Central
12Management Services that a business entity is a qualified
13service-disabled veteran-owned small business or a qualified
14veteran-owned small business for whatever purpose. A SDVOSB or
15VOSB owned and controlled by women, minorities, or persons
16with disabilities, as those terms are defined in Section 2 of
17the Business Enterprise for Minorities, Women, and Persons
18with Disabilities Act, may also select and designate whether
19that business is to be certified as a "women-owned business",
20"minority-owned business", or "business owned by a person with
21a disability", as defined in Section 2 of the Business
22Enterprise for Minorities, Women, and Persons with
23Disabilities Act.
24    "Control" means the exclusive, ultimate, majority, or sole
25control of the business, including but not limited to capital
26investment and all other financial matters, property,

 

 

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1acquisitions, contract negotiations, legal matters,
2officer-director-employee selection and comprehensive hiring,
3operation responsibilities, cost-control matters, income and
4dividend matters, financial transactions, and rights of other
5shareholders or joint partners. Control shall be real,
6substantial, and continuing, not pro forma. Control shall
7include the power to direct or cause the direction of the
8management and policies of the business and to make the
9day-to-day as well as major decisions in matters of policy,
10management, and operations. Control shall be exemplified by
11possessing the requisite knowledge and expertise to run the
12particular business, and control shall not include simple
13majority or absentee ownership.
14    "Qualified service-disabled veteran" means a veteran who
15has been found to have 10% or more service-connected
16disability by the United States Department of Veterans Affairs
17or the United States Department of Defense.
18    "Qualified service-disabled veteran-owned small business"
19or "SDVOSB" means a small business (i) that is at least 51%
20owned by one or more qualified service-disabled veterans
21living in Illinois or, in the case of a corporation, at least
2251% of the stock of which is owned by one or more qualified
23service-disabled veterans living in Illinois; (ii) that has
24its home office in Illinois; and (iii) for which items (i) and
25(ii) are factually verified annually by the Department of
26Central Management Services.

 

 

SB0687 Enrolled- 6 -LRB102 12622 RJF 17960 b

1    "Qualified veteran-owned small business" or "VOSB" means a
2small business (i) that is at least 51% owned by one or more
3qualified veterans living in Illinois or, in the case of a
4corporation, at least 51% of the stock of which is owned by one
5or more qualified veterans living in Illinois; (ii) that has
6its home office in Illinois; and (iii) for which items (i) and
7(ii) are factually verified annually by the Department of
8Central Management Services.
9    "Service-connected disability" means a disability incurred
10in the line of duty in the active military, naval, or air
11service as described in 38 U.S.C. 101(16).
12    "Small business" means a business that has annual gross
13sales of less than $75,000,000 as evidenced by the federal
14income tax return of the business. A firm with gross sales in
15excess of this cap may apply to the Department of Central
16Management Services for certification for a particular
17contract if the firm can demonstrate that the contract would
18have significant impact on SDVOSB or VOSB as suppliers or
19subcontractors or in employment of veterans or
20service-disabled veterans.
21    "State agency" has the meaning provided in Section
221-15.100 of this Code.
23    "Time of hostilities with a foreign country" means any
24period of time in the past, present, or future during which a
25declaration of war by the United States Congress has been or is
26in effect or during which an emergency condition has been or is

 

 

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

 

 

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1        (2) assist veteran-owned small businesses and
2    service-disabled veteran-owned small businesses in
3    complying with the procedures for bidding on State
4    contracts;
5        (3) provide training for State agencies regarding the
6    goal setting process and compliance with veteran-owned
7    small business and service-disabled veteran-owned small
8    business goals; and
9        (4) implement and maintain an electronic portal on the
10    Department's website for the purpose of completing and
11    submitting veteran-owned small business and
12    service-disabled veteran-owned small business
13    certificates.
14    The Department of Central Management Services, in
15consultation with the Department of Veterans' Affairs, may
16develop programs and agreements to encourage cities, counties,
17towns, townships, and other certifying entities to adopt
18uniform certification procedures and certification recognition
19programs.
20    (f-5) A business shall be certified by the Department of
21Central Management Services as a service-disabled
22veteran-owned small business or a veteran-owned small business
23for purposes of this Section if the Department of Central
24Management Services determines that the business has been
25certified as a service-disabled veteran-owned small business
26or a veteran-owned small business by the Vets First

 

 

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

 

 

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

 

 

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1    a civil action against any person for the violation.
2        (3) List of suspended persons. The chief procurement
3    officers appointed pursuant to Section 10-20 shall monitor
4    the status of all reported violations of Section 17-10.3
5    or subsection (d) of Section 33E-6 of the Criminal Code of
6    1961 or the Criminal Code of 2012 relating to this Section
7    and shall maintain and make available to all State
8    agencies a central listing of all persons that committed
9    violations resulting in suspension.
10        (4) Use of suspended persons. During the period of a
11    person's suspension under paragraph (1) of this
12    subsection, a State agency shall not enter into any
13    contract with that person or with any contractor using the
14    services of that person as a subcontractor.
15        (5) Duty to check list. Each State agency shall check
16    the central listing provided by the chief procurement
17    officers appointed pursuant to Section 10-20 under
18    paragraph (3) of this subsection to verify that a person
19    being awarded a contract by that State agency, or to be
20    used as a subcontractor or supplier on a contract being
21    awarded by that State agency, is not under suspension
22    pursuant to paragraph (1) of this subsection.
23(Source: P.A. 100-43, eff. 8-9-17; 100-391, eff. 8-25-17;
24100-863, eff. 8-14-18.)
 
25    Section 99. Effective date. This Act takes effect upon
26becoming law.