Full Text of SB1270 97th General Assembly
SB1270ham001 97TH GENERAL ASSEMBLY | Rep. Linda Chapa LaVia Filed: 4/28/2011
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| 1 | | AMENDMENT TO SENATE BILL 1270
| 2 | | AMENDMENT NO. ______. Amend Senate Bill 1270 by replacing | 3 | | everything after the enacting clause with the following:
| 4 | | "Section 5. The Illinois Procurement Code is amended by | 5 | | changing Section 45-57 as follows: | 6 | | (30 ILCS 500/45-57) | 7 | | Sec. 45-57. Veterans Disabled veterans . | 8 | | (a) Set-aside goal. It is the goal of the State to promote | 9 | | and encourage the continued economic development of small | 10 | | businesses owned and controlled by qualified service disabled | 11 | | veterans and that qualified service-disabled service disabled | 12 | | veteran-owned small businesses (referred to as SDVOSB SDVOB ) | 13 | | and veteran-owned small businesses (referred to as VOSB) | 14 | | participate in the State's procurement process as both prime | 15 | | contractors and subcontractors. Not less than 3% of the total | 16 | | dollar amount of State contracts, as defined by the Director of |
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| 1 | | Central Management Services, shall be established as a goal to | 2 | | be awarded to SDVOSB and VOSB. A Task Force shall be | 3 | | established, appointed by the Directors or Secretaries of, and | 4 | | made up of representatives of, the Illinois Department of | 5 | | Veterans' Affairs, the Illinois Department of Transportation, | 6 | | the Department of Central Management Services, the Business | 7 | | Enterprise Program, and the Business Enterprise Council. The | 8 | | Department of Central Management Services shall provide | 9 | | administrative support to the Task Force. The purpose of this | 10 | | Task Force shall be to determine the appropriate percentage | 11 | | goal for award each fiscal year
of the State's total | 12 | | expenditures for contracts
awarded under this Code to SDVOB. | 13 | | That
portion of a contract under which the contractor | 14 | | subcontracts
with a SDVOSB or VOSB SDVOB may be counted toward | 15 | | the
goal of this subsection. The Department of Central | 16 | | Management Services shall adopt rules to implement compliance | 17 | | with this subsection by all State agencies. In making that | 18 | | determination the Task Force shall consult with statewide | 19 | | veterans' service organizations and the business community, | 20 | | including businesses owned by qualified disabled veterans. The | 21 | | Task Force shall submit its report to the General Assembly | 22 | | concerning its recommendations regarding the appropriate | 23 | | percentage goal for award each fiscal year of the State's total | 24 | | expenditures for contracts awarded under this Code to qualified | 25 | | service disabled veterans no later than 90 days after the | 26 | | effective date of this amendatory Act of the 96th General |
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| 1 | | Assembly. | 2 | | (b) Fiscal year reports. By Once the appropriate goal is | 3 | | established, then by each September 1, each chief procurement | 4 | | officer shall report to the Department of Central Management | 5 | | Services on all of the following for the immediately preceding | 6 | | fiscal year, and by each October 1 the Department of Central | 7 | | Management Services shall compile and report that information | 8 | | to the General Assembly: | 9 | | (1) The total number of VOSB, and the number of SDVOSB, | 10 | | SDVOB who submitted bids a bid for contracts a contract | 11 | | under this Code. | 12 | | (2) The total number of VOSB, and the number of SDVOSB, | 13 | | SDVOB who entered into contracts with the State under this | 14 | | Code and the total value of those contracts. | 15 | | (c) Yearly review and recommendations. Each year, each | 16 | | chief procurement officer shall review the progress of all | 17 | | State agencies under its jurisdiction in meeting the goal | 18 | | described in subsection (a), with input from statewide | 19 | | veterans' service organizations and from the business | 20 | | community, including businesses owned by qualified disabled | 21 | | veterans, and shall make recommendations to be included in the | 22 | | Department of Central Management Services' report to the | 23 | | General Assembly regarding continuation, increases, or | 24 | | decreases of the percentage goal. The recommendations shall be | 25 | | based upon the number of businesses that are owned by qualified | 26 | | disabled veterans and on the continued need to encourage and |
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| 1 | | promote businesses owned by qualified disabled veterans. | 2 | | (d) Governor's recommendations. To assist the State in | 3 | | reaching the goal described in subsection (a), the Governor | 4 | | shall recommend to the General Assembly changes in programs to | 5 | | assist businesses owned by qualified disabled veterans. | 6 | | (e) Definitions. As used in this Section: | 7 | | "Armed forces of the United States" means the United States | 8 | | Army, Navy, Air Force, Marine Corps, Coast Guard, or service in | 9 | | active duty as defined under 38 U.S.C. Section 101. Service in | 10 | | the Merchant Marine that constitutes active duty under Section | 11 | | 401 of federal Public Act 95-202 shall also be considered | 12 | | service in the armed forces for purposes of this Section. | 13 | | " Business" means a business that has average annual gross | 14 | | sales over the 3 most recent calendar years of less than | 15 | | $31,000,000 as evidenced by the federal income tax returns of | 16 | | the business. | 17 | | "Certification" means a determination made by the Illinois | 18 | | Department of Veterans' Affairs and the Department of Central | 19 | | Management Services that a business entity is a qualified | 20 | | service-disabled veteran-owned small business or a qualified | 21 | | veteran-owned small business for whatever purpose. A SDVOSB or | 22 | | VOSB owned and controlled by females, minorities, or persons | 23 | | with disabilities, as those terms are defined in Section 2 of | 24 | | the Business Enterprise for Minorities, Females, and Persons | 25 | | with Disabilities Act, shall select and designate whether that | 26 | | business is to be certified as a "female-owned business", |
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| 1 | | "minority-owned business", or "business owned by a person with | 2 | | a disability", as defined in Section 2 of the Business | 3 | | Enterprise for Minorities, Females, and Persons with | 4 | | Disabilities Act, or as a qualified SDVOSB or qualified VOSB | 5 | | under this Section. | 6 | | "Control" means the exclusive, ultimate, majority, or sole | 7 | | control of the business, including but not limited to capital | 8 | | investment and all other financial matters, property, | 9 | | acquisitions, contract negotiations, legal matters, | 10 | | officer-director-employee selection and comprehensive hiring, | 11 | | operation responsibilities, cost-control matters, income and | 12 | | dividend matters, financial transactions, and rights of other | 13 | | shareholders or joint partners. Control shall be real, | 14 | | substantial, and continuing, not pro forma. Control shall | 15 | | include the power to direct or cause the direction of the | 16 | | management and policies of the business and to make the | 17 | | day-to-day as well as major decisions in matters of policy, | 18 | | management, and operations. Control shall be exemplified by | 19 | | possessing the requisite knowledge and expertise to run the | 20 | | particular business , and control shall not include simple | 21 | | majority or absentee ownership . | 22 | | "Qualified service-disabled service disabled veteran" | 23 | | means a
veteran who has been found to have 10% or more a | 24 | | service-connected disability by the United States Department | 25 | | of Veterans Affairs or the United States Department of Defense. | 26 | | "Qualified service-disabled veteran-owned small business" |
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| 1 | | or "SDVOSB" means a small business (i) that is at least 51% | 2 | | owned by one or more qualified service-disabled veterans living | 3 | | in Illinois or, in the case of a corporation, at least 51% of | 4 | | the stock of which is owned by one or more qualified | 5 | | service-disabled veterans living in Illinois; (ii) that has its | 6 | | home office in Illinois; and (iii) for which items (i) and (ii) | 7 | | are factually verified annually by the Department of Central | 8 | | Management Services. | 9 | | "Qualified veteran-owned small business" or "VOSB" means a | 10 | | small business (i) that is at least 51% owned by one or more | 11 | | qualified veterans living in Illinois or, in the case of a | 12 | | corporation, at least 51% of the stock of which is owned by one | 13 | | or more qualified veterans living in Illinois; (ii) that has | 14 | | its home office in Illinois; and (iii) for which items (i) and | 15 | | (ii) are factually verified annually by the Department of | 16 | | Central Management Services. | 17 | | "Qualified disabled veteran-owned business" means a | 18 | | business entity that is at least 51% owned by one or more | 19 | | qualified disabled veterans, or in the case of a corporation, | 20 | | at least 51% of the stock of which is owned by one or more | 21 | | qualified disabled veterans; and the management and daily | 22 | | business operations of which are controlled by one or more of | 23 | | the qualified disabled veterans who own it. | 24 | | "Service-connected disability" means a disability incurred | 25 | | in the line of duty in the active military, naval, or air | 26 | | service as described in 38 U.S.C. 101(16). |
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| 1 | | "Small business" means a business that has annual gross | 2 | | sales of less than $75,000,000 as evidenced by the federal | 3 | | income tax return of the business. A firm with gross sales in | 4 | | excess of this cap may apply to the Department of Central | 5 | | Management Services for certification for a particular | 6 | | contract if the firm can demonstrate that the contract would | 7 | | have significant impact on SDVOSB or VOSB as suppliers or | 8 | | subcontractors or in employment of veterans or | 9 | | service-disabled veterans. | 10 | | "State agency" has the same meaning as in Section 2 of the | 11 | | Business Enterprise for Minorities, Females, and Persons with | 12 | | Disabilities Act. | 13 | | "Time of hostilities with a foreign country" means any | 14 | | period of time in the past, present, or future during which a | 15 | | declaration of war by the United States Congress has been or is | 16 | | in effect or during which an emergency condition has been or is | 17 | | in effect that is recognized by the issuance of a Presidential | 18 | | proclamation or a Presidential executive order and in which the | 19 | | armed forces expeditionary medal or other campaign service | 20 | | medals are awarded according to Presidential executive order. | 21 | | "Veteran" means a person who (i) has been a member of the | 22 | | armed forces of the United States or, while a citizen of the | 23 | | United States, was a member of the armed forces of allies of | 24 | | the United States in time of hostilities with a foreign country | 25 | | and (ii) has served under one or more of the following | 26 | | conditions: (a) the veteran served a total of at least 6 |
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| 1 | | months; (b) the veteran served for the duration of hostilities | 2 | | regardless of the length of the engagement; (c) the veteran was | 3 | | discharged on the basis of hardship; or (d) the veteran was | 4 | | released from active duty because of a service connected | 5 | | disability and was discharged under honorable conditions. | 6 | | served in the active military,
naval, or air service and who | 7 | | was discharged or released from
his or her service under | 8 | | conditions other than dishonorable. | 9 | | (f) Certification program. The Illinois Department of | 10 | | Veterans' Affairs and the Department of Central Management | 11 | | Services Business Enterprise Program shall work together to | 12 | | devise a certification procedure to assure that businesses | 13 | | taking advantage of this Section Act are legitimately | 14 | | classified as qualified service-disabled service disabled | 15 | | veteran-owned small businesses or qualified veteran-owned | 16 | | small businesses .
| 17 | | (g) Penalties. | 18 | | (1) Administrative penalties. The Department of | 19 | | Central Management Services shall suspend any person who | 20 | | commits a violation of Section 17-10.3 or subsection (d) of | 21 | | Section 33E-6 of the Criminal Code of 1961 relating to this | 22 | | Section from bidding on, or participating as a contractor, | 23 | | subcontractor, or supplier in, any State contract or | 24 | | project for a period of not less than 3 years, and, if the | 25 | | person is certified as a service-disabled veteran-owned | 26 | | small business or a veteran-owned small business, then the |
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| 1 | | Department shall revoke the business's certification for a | 2 | | period of not less than 3 years. An additional or | 3 | | subsequent violation shall extend the periods of | 4 | | suspension and revocation for a period of not less than 5 | 5 | | years. The suspension and revocation shall apply to the | 6 | | principals of the business and any subsequent business | 7 | | formed or financed by, or affiliated with, those | 8 | | principals. | 9 | | (2) Reports of violations. Each State agency shall | 10 | | report any alleged violation of Section 17-10.3 or | 11 | | subsection (d) of Section 33E-6 of the Criminal Code of | 12 | | 1961 relating to this Section to the Department of Central | 13 | | Management Services. The Department of Central Management | 14 | | Services shall subsequently report all such alleged | 15 | | violations to the Attorney General, who shall determine | 16 | | whether to bring a civil action against any person for the | 17 | | violation. | 18 | | (3) List of suspended persons. The Department of | 19 | | Central Management Services shall monitor the status of all | 20 | | reported violations of Section 17-10.3 or subsection (d) of | 21 | | Section 33E-6 of the Criminal Code of 1961 relating to this | 22 | | Section and shall maintain and make available to all State | 23 | | agencies a central listing of all persons that committed | 24 | | violations resulting in suspension. | 25 | | (4) Use of suspended persons. During the period of a | 26 | | person's suspension under paragraph (1) of this |
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| 1 | | subsection, a State agency shall not enter into any | 2 | | contract with that person or with any contractor using the | 3 | | services of that person as a subcontractor. | 4 | | (5) Duty to check list. Each State agency shall check | 5 | | the central listing provided by the Department of Central | 6 | | Management Services under paragraph (3) of this subsection | 7 | | to verify that a person being awarded a contract by that | 8 | | State agency, or to be used as a subcontractor or supplier | 9 | | on a contract being awarded by that State agency, is not | 10 | | under suspension pursuant to paragraph (1) of this | 11 | | subsection. | 12 | | (Source: P.A. 96-96, eff. 1-1-10.)
| 13 | | Section 10. The Criminal Code of 1961 is amended by | 14 | | changing Sections 17-10.3, 33E-2, and 33E-6 as follows: | 15 | | (720 ILCS 5/17-10.3) | 16 | | (This Section may contain text from a Public Act with a | 17 | | delayed effective date )
| 18 | | Sec. 17-10.3. Deception relating to certification of | 19 | | disadvantaged business enterprises. | 20 | | (a) Fraudulently obtaining or retaining certification. A | 21 | | person
who, in the course of business, fraudulently obtains or | 22 | | retains
certification as a minority owned business , or female | 23 | | owned business , service-disabled veteran-owned small business, | 24 | | or veteran-owned small business commits
a Class 2 felony. |
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| 1 | | (b) Willfully making a false statement. A person who, in | 2 | | the
course of business, willfully makes a false statement | 3 | | whether by affidavit,
report or other representation, to an | 4 | | official or employee of a State
agency or the Minority and | 5 | | Female Business Enterprise Council for the
purpose of | 6 | | influencing the certification or denial of certification of any
| 7 | | business entity as a minority owned business , or female owned | 8 | | business , service-disabled veteran-owned small business, or | 9 | | veteran-owned small business
commits a Class 2 felony. | 10 | | (c) Willfully obstructing or impeding an official or | 11 | | employee of
any agency in his or her investigation.
Any person | 12 | | who, in the course of business, willfully obstructs or impedes
| 13 | | an official or employee of any State agency or the Minority and | 14 | | Female
Business Enterprise Council
who is investigating the | 15 | | qualifications of a business
entity which has requested | 16 | | certification as a minority owned business , or a
female owned | 17 | | business , service-disabled veteran-owned small business, or | 18 | | veteran-owned small business commits a Class 2 felony. | 19 | | (d) Fraudulently obtaining public moneys reserved for
| 20 | | disadvantaged business enterprises. Any person who, in the | 21 | | course of
business, fraudulently obtains public moneys | 22 | | reserved for, or allocated or
available to , minority owned | 23 | | businesses , or female owned businesses , service-disabled | 24 | | veteran-owned small businesses, or veteran-owned small | 25 | | businesses commits a
Class 2 felony. | 26 | | (e) Definitions. As used in this Article, "minority owned
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| 1 | | business", "female owned business", "State agency" with | 2 | | respect to minority owned businesses and female owned | 3 | | businesses, and "certification" with respect to minority owned | 4 | | businesses and female owned businesses shall
have the meanings | 5 | | ascribed to them in Section 2 of the Business Enterprise for
| 6 | | Minorities, Females, and
Persons with Disabilities Act. As used | 7 | | in this Article, "service-disabled veteran-owned small | 8 | | business", "veteran-owned small business", "State agency" with | 9 | | respect to service-disabled veteran-owned small businesses and | 10 | | veteran-owned small businesses, and "certification" with | 11 | | respect to service-disabled veteran-owned small businesses and | 12 | | veteran-owned small businesses have the same meanings as in | 13 | | Section 45-57 of the Illinois Procurement Code.
| 14 | | (Source: P.A. 96-1551, eff. 7-1-11.)
| 15 | | (720 ILCS 5/33E-2) (from Ch. 38, par. 33E-2)
| 16 | | Sec. 33E-2. Definitions. In this Act:
| 17 | | (a) "Public contract" means any
contract for goods, | 18 | | services or construction let to any person with or
without bid | 19 | | by any unit of State or local government.
| 20 | | (b) "Unit of State or local government" means the State, | 21 | | any unit of state
government or agency thereof, any county or | 22 | | municipal government or committee
or agency thereof, or any | 23 | | other entity which is funded by or expends tax
dollars or the | 24 | | proceeds of publicly guaranteed bonds.
| 25 | | (c) "Change order" means a change in a contract term other |
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| 1 | | than as
specifically provided for in the contract which | 2 | | authorizes or necessitates
any increase or decrease in the cost | 3 | | of the contract or the time to completion.
| 4 | | (d) "Person" means any individual, firm, partnership,
| 5 | | corporation, joint venture or other entity, but does not | 6 | | include a unit
of State or local government.
| 7 | | (e) "Person employed by any unit of State or local | 8 | | government" means
any employee of a unit of State or local | 9 | | government and any person defined in
subsection (d) who is | 10 | | authorized by such unit of State or local government
to act on | 11 | | its behalf in relation to any public contract.
| 12 | | (f) "Sheltered market" has the meaning ascribed to it in | 13 | | Section 8b of the Business Enterprise for Minorities,
Females, | 14 | | and Persons with Disabilities Act ; except that, with respect to | 15 | | State contracts set aside for award to service-disabled | 16 | | veteran-owned small businesses and veteran-owned small | 17 | | businesses pursuant to Section 45-57 of the Illinois | 18 | | Procurement Code, "sheltered market" means procurements | 19 | | pursuant to that Section .
| 20 | | (g) "Kickback" means any money, fee, commission, credit, | 21 | | gift, gratuity,
thing of value, or compensation of any kind | 22 | | which is provided, directly or
indirectly, to any prime | 23 | | contractor, prime contractor employee,
subcontractor, or | 24 | | subcontractor employee for the purpose of improperly
obtaining | 25 | | or rewarding favorable treatment in connection with a prime
| 26 | | contract or in connection with a subcontract relating to a |
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| 1 | | prime contract.
| 2 | | (h) "Prime contractor" means any person who has entered | 3 | | into
a public contract.
| 4 | | (i) "Prime contractor employee" means any officer, | 5 | | partner, employee, or
agent of a prime contractor.
| 6 | | (i-5) "Stringing" means knowingly structuring a contract
| 7 | | or job order to avoid the contract or job order being subject | 8 | | to competitive
bidding requirements.
| 9 | | (j) "Subcontract" means a contract or contractual action | 10 | | entered into by
a prime contractor or subcontractor for the | 11 | | purpose of obtaining goods or
services of any kind under a | 12 | | prime contract.
| 13 | | (k) "Subcontractor" (1) means any person, other than the | 14 | | prime
contractor, who offers to furnish or furnishes any goods | 15 | | or services of any
kind under a prime contract or a subcontract | 16 | | entered into in connection
with such prime contract; and (2) | 17 | | includes any person who offers to furnish
or furnishes goods or | 18 | | services to the prime contractor or a higher tier
| 19 | | subcontractor.
| 20 | | (l) "Subcontractor employee" means any officer, partner, | 21 | | employee, or
agent of a subcontractor.
| 22 | | (Source: P.A. 92-16, eff. 6-28-01.)
| 23 | | (720 ILCS 5/33E-6) (from Ch. 38, par. 33E-6)
| 24 | | Sec. 33E-6.
Interference with contract submission and | 25 | | award by public
official. (a) Any person who is an official of |
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| 1 | | or employed by any unit of
State or local government who | 2 | | knowingly conveys, either directly or indirectly,
outside of | 3 | | the publicly available official invitation to bid, pre-bid
| 4 | | conference, solicitation for contracts procedure or such | 5 | | procedure used
in any sheltered market procurement adopted | 6 | | pursuant to law or ordinance by
that unit of government, to any | 7 | | person any information concerning the
specifications for such | 8 | | contract or the identity of any particular
potential | 9 | | subcontractors, when inclusion of such information concerning | 10 | | the
specifications or contractors in the bid or offer would | 11 | | influence the
likelihood of acceptance of such bid or offer, | 12 | | commits a Class 4 felony.
It shall not constitute a violation | 13 | | of this subsection to convey
information intended to clarify | 14 | | plans or specifications regarding a public
contract where such | 15 | | disclosure of information is also made generally
available to | 16 | | the public.
| 17 | | (b) Any person who is an official of or employed by any | 18 | | unit of State or
local government who, either directly or | 19 | | indirectly, knowingly informs a
bidder or offeror that the bid | 20 | | or offer will be accepted or executed only
if specified | 21 | | individuals are included as subcontractors commits a Class 3
| 22 | | felony.
| 23 | | (c) It shall not constitute a violation of subsection (a) | 24 | | of this
Section where any person who is an official of or | 25 | | employed by any unit of
State or local government follows | 26 | | procedures established (i) by federal,
State or local minority |
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| 1 | | or female owned business enterprise programs or (ii) pursuant | 2 | | to Section 45-57 of the Illinois Procurement Code .
| 3 | | (d) Any bidder or offeror who is the recipient of | 4 | | communications from
the unit of government which he reasonably | 5 | | believes to be proscribed by
subsections (a) or (b), and fails | 6 | | to inform either the Attorney General or
the State's Attorney | 7 | | for the county in which the unit of government is
located, | 8 | | commits a Class A misdemeanor.
| 9 | | (e) Any public official who knowingly awards a contract | 10 | | based on
criteria which were not publicly disseminated via the | 11 | | invitation to bid,
when such invitation to bid is required by | 12 | | law or ordinance, the pre-bid
conference, or any solicitation | 13 | | for contracts procedure or such
procedure used in any sheltered | 14 | | market procurement procedure adopted
pursuant to statute or | 15 | | ordinance, commits a Class 3 felony.
| 16 | | (f) It shall not constitute a violation of subsection (a) | 17 | | for any
person who is an official of or employed by any unit of | 18 | | State or local
government to provide to any person a copy of | 19 | | the transcript or other
summary of any pre-bid conference where | 20 | | such transcript or summary is also
made generally available to | 21 | | the public.
| 22 | | (Source: P.A. 86-150.)
| 23 | | Section 99. Effective date. This Act takes effect July 1, | 24 | | 2011.".
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