Full Text of SB1949 98th General Assembly
SB1949sam001 98TH GENERAL ASSEMBLY | Sen. Pamela J. Althoff Filed: 3/17/2014
| | 09800SB1949sam001 | | LRB098 07740 HLH 56664 a |
|
| 1 | | AMENDMENT TO SENATE BILL 1949
| 2 | | AMENDMENT NO. ______. Amend Senate Bill 1949 by replacing | 3 | | everything after the enacting clause with the following:
| 4 | | "Section 5. The Illinois Procurement Code is amended by | 5 | | changing Sections 1-13, 1-15.107, 1-15.108, 1-15.110, 35-40, | 6 | | 45-45, 50-10.5, 50-35, and 50-36 and by adding Section 1-15.109 | 7 | | as follows: | 8 | | (30 ILCS 500/1-13) | 9 | | (Section scheduled to be repealed on December 31, 2014) | 10 | | Sec. 1-13. Applicability to public institutions of higher | 11 | | education. | 12 | | (a) This Code shall apply to public institutions of higher | 13 | | education, regardless of the source of the funds with which | 14 | | contracts are paid, except as provided in this Section. | 15 | | (b) Except as provided in this Section, this Code shall not | 16 | | apply to procurements made by or on behalf of public |
| | | 09800SB1949sam001 | - 2 - | LRB098 07740 HLH 56664 a |
|
| 1 | | institutions of higher education for any of the following: | 2 | | (1) Memberships in professional, academic, or athletic | 3 | | organizations on behalf of a public institution of higher | 4 | | education, an employee of a public institution of higher | 5 | | education, or a student at a public institution of higher | 6 | | education. | 7 | | (2) Procurement expenditures for events or activities | 8 | | paid for exclusively by revenues generated by the event or | 9 | | activity, gifts or donations for the event or activity, | 10 | | private grants, or any combination thereof. | 11 | | (3) Procurement expenditures for events or activities | 12 | | for which the use of specific vendors is mandated or | 13 | | identified by the sponsor of the event or activity, | 14 | | provided that the sponsor is providing a majority of the | 15 | | funding for the event or activity. | 16 | | (4) Procurement expenditures necessary to provide | 17 | | artistic or musical services, performances, or productions | 18 | | held at a venue operated by a public institution of higher | 19 | | education. | 20 | | (5) Procurement expenditures for periodicals and books | 21 | | procured for use by a university library or academic | 22 | | department, except for expenditures related to procuring | 23 | | textbooks for student use or materials for resale or | 24 | | rental. | 25 | | Notice of each contract entered into by a public institution of | 26 | | higher education that is related to the procurement of goods |
| | | 09800SB1949sam001 | - 3 - | LRB098 07740 HLH 56664 a |
|
| 1 | | and services identified in items (1) through (5) of this | 2 | | subsection shall be published in the Procurement Bulletin | 3 | | within 14 days after contract execution. The Chief Procurement | 4 | | Officer shall prescribe the form and content of the notice. | 5 | | Each public institution of higher education shall provide the | 6 | | Chief Procurement Officer, on a monthly basis, in the form and | 7 | | content prescribed by the Chief Procurement Officer, a report | 8 | | of contracts that are related to the procurement of goods and | 9 | | services identified in this subsection. At a minimum, this | 10 | | report shall include the name of the contractor, a description | 11 | | of the supply or service provided, the total amount of the | 12 | | contract, the term of the contract, and the exception to the | 13 | | Code utilized. A copy of any or all of these contracts shall be | 14 | | made available to the Chief Procurement Officer immediately | 15 | | upon request. The Chief Procurement Officer shall submit a | 16 | | report to the Governor and General Assembly no later than | 17 | | November 1 of each year that shall include, at a minimum, an | 18 | | annual summary of the monthly information reported to the Chief | 19 | | Procurement Officer. | 20 | | (c) Procurements made by or on behalf of public | 21 | | institutions of higher education for any of the following shall | 22 | | be made in accordance with the requirements of this Code to the | 23 | | extent practical as provided in this subsection: | 24 | | (1) Contracts with a foreign entity necessary for | 25 | | research or educational activities, provided that the | 26 | | foreign entity either does not maintain an office in the |
| | | 09800SB1949sam001 | - 4 - | LRB098 07740 HLH 56664 a |
|
| 1 | | United States or is the sole source of the service or | 2 | | product. | 3 | | (2) Procurements of FDA-regulated goods, products, and | 4 | | services necessary for the delivery of care and treatment | 5 | | at medical, dental, or veterinary teaching facilities | 6 | | utilized by the University of Illinois or Southern Illinois | 7 | | University. | 8 | | (3) Contracts for programming and broadcast license | 9 | | rights for university-operated radio and television | 10 | | stations. | 11 | | (4) Procurements required for fulfillment of a grant. | 12 | | Upon the written request of a public institution of higher | 13 | | education, the Chief Procurement Officer may waive | 14 | | registration, certification, and hearing requirements of this | 15 | | Code if, based on the item to be procured or the terms of a | 16 | | grant, compliance is impractical. The public institution of | 17 | | higher education shall provide the Chief Procurement Officer | 18 | | with specific reasons for the waiver, including the necessity | 19 | | of contracting with a particular vendor, and shall certify that | 20 | | an effort was made in good faith to comply with the provisions | 21 | | of this Code. The Chief Procurement Officer shall provide | 22 | | written justification for any waivers. By November 1 of each | 23 | | year, the Chief Procurement Officer shall file a report with | 24 | | the General Assembly identifying each contract approved with | 25 | | waivers and providing the justification given for any waivers | 26 | | for each of those contracts. Notice of each waiver made under |
| | | 09800SB1949sam001 | - 5 - | LRB098 07740 HLH 56664 a |
|
| 1 | | this subsection shall be published in the Procurement Bulletin | 2 | | within 14 days after contract execution. The Chief Procurement | 3 | | Officer shall prescribe the form and content of the notice. | 4 | | (d) Notwithstanding this Section, a waiver of the | 5 | | registration requirements of Section 20-160 does not permit a | 6 | | business entity and any affiliated entities or affiliated | 7 | | persons to make campaign contributions if otherwise prohibited | 8 | | by Section 50-37. The total amount of contracts awarded in | 9 | | accordance with this Section shall be included in determining | 10 | | the aggregate amount of contracts or pending bids of a business | 11 | | entity and any affiliated entities or affiliated persons. | 12 | | (e) Notwithstanding subsection (e) of Section 50-10.5 of | 13 | | this Code, the Chief Procurement Officer, with the approval of | 14 | | the Executive Ethics Commission, may permit a public | 15 | | institution of higher education to accept a bid or enter into a | 16 | | contract with a business that assisted the public institution | 17 | | of higher education in determining whether there is a need for | 18 | | a contract or assisted in reviewing, drafting, or preparing | 19 | | documents related to a bid or contract, provided that the bid | 20 | | or contract is essential to research administered by the public | 21 | | institution of higher education and it is in the best interest | 22 | | of the public institution of higher education to accept the bid | 23 | | or contract. For purposes of this subsection, "business" | 24 | | includes all individuals with whom a business is affiliated, | 25 | | including, but not limited to, any officer, agent, employee, | 26 | | consultant, independent contractor, director, partner, |
| | | 09800SB1949sam001 | - 6 - | LRB098 07740 HLH 56664 a |
|
| 1 | | manager, or shareholder of a business. The Executive Ethics | 2 | | Commission may promulgate rules and regulations for the | 3 | | implementation and administration of the provisions of this | 4 | | subsection (e). | 5 | | (f) As used in this Section: | 6 | | "Grant" means non-appropriated funding provided by a | 7 | | federal or private entity to support a project or program | 8 | | administered by a public institution of higher education and | 9 | | any non-appropriated funding provided to a sub-recipient of the | 10 | | grant. | 11 | | "Public institution of higher education" means Chicago | 12 | | State University, Eastern Illinois University, Governors State | 13 | | University, Illinois State University, Northeastern Illinois | 14 | | University, Northern Illinois University, Southern Illinois | 15 | | University, University of Illinois, Western Illinois | 16 | | University, and, for purposes of this Code only, the Illinois | 17 | | Mathematics and Science Academy. | 18 | | (g) This Section is repealed on December 31, 2016 2014 .
| 19 | | (Source: P.A. 97-643, eff. 12-20-11; 97-895, eff. 8-3-12.) | 20 | | (30 ILCS 500/1-15.107) | 21 | | Sec. 1-15.107. Subcontract. "Subcontract" means a contract | 22 | | between a person and a person who has a contract subject to | 23 | | this Code, pursuant to which the subcontractor provides to the | 24 | | contractor, or, if the contract price exceeds $50,000, another | 25 | | subcontractor, some or all of the goods, services, real |
| | | 09800SB1949sam001 | - 7 - | LRB098 07740 HLH 56664 a |
|
| 1 | | property, remuneration, or other monetary forms of | 2 | | consideration that are the subject and necessary to the | 3 | | execution, in whole or in part, of the primary contract and | 4 | | includes, among other things, subleases from a lessee of a | 5 | | State agency.
| 6 | | (Source: P.A. 96-795, eff. 7-1-10 (see Section 5 of P.A. 96-793 | 7 | | for the effective date of P.A. 96-795); 97-895, eff. 8-3-12.) | 8 | | (30 ILCS 500/1-15.108) | 9 | | Sec. 1-15.108. Subcontractor. "Subcontractor" means a | 10 | | person or entity that enters into a contractual agreement with | 11 | | a total value of $50,000 or more with a person or entity who | 12 | | has a contract subject to this Code pursuant to which the | 13 | | person or entity provides some or all of the goods, services, | 14 | | real property, remuneration, or other monetary forms of | 15 | | consideration that are the subject and necessary to the | 16 | | execution, in whole or in part, of the primary State contract, | 17 | | including subleases from a lessee of a State contract.
| 18 | | (Source: P.A. 96-920, eff. 7-1-10; 97-895, eff. 8-3-12.) | 19 | | (30 ILCS 500/1-15.109 new) | 20 | | Sec. 1-15.109. Supplier. "Supplier" means any person or | 21 | | entity providing all personal property, including but not | 22 | | limited to equipment, materials, printing and insurance, and | 23 | | the financing of those supplies that can be procured regularly | 24 | | or are available on the commercial market.
|
| | | 09800SB1949sam001 | - 8 - | LRB098 07740 HLH 56664 a |
|
| 1 | | (30 ILCS 500/1-15.110)
| 2 | | Sec. 1-15.110. Supplies. "Supplies" means all personal
| 3 | | property, including but not
limited to equipment, materials, | 4 | | printing, and insurance, and the
financing of those supplies | 5 | | that can be procured regularly or are available on the | 6 | | commercial market .
| 7 | | (Source: P.A. 90-572, eff. 2-6-98.)
| 8 | | (30 ILCS 500/35-40) | 9 | | Sec. 35-40. Subcontractors. | 10 | | (a) Any contract granted under this Article shall state | 11 | | whether the services
of a subcontractor will be used. The | 12 | | contract shall include the names and
addresses of all | 13 | | subcontractors with subcontracts with an annual value of more | 14 | | than $50,000, the general type of work to be performed by such | 15 | | subcontractors, and the expected amount of money each will
| 16 | | receive under the contract. Upon the request of the chief | 17 | | procurement officer appointed pursuant to paragraph (2) of | 18 | | subsection (a) of Section 10-20, the contractor shall provide | 19 | | the chief procurement officer a copy of a subcontract so | 20 | | identified within 15 days after the request is made. A | 21 | | subcontractor, or contractor on behalf of a subcontractor, may | 22 | | identify information that is deemed proprietary or | 23 | | confidential. If the chief procurement officer determines the | 24 | | information is not relevant to the primary contract, or the |
| | | 09800SB1949sam001 | - 9 - | LRB098 07740 HLH 56664 a |
|
| 1 | | chief procurement officer determines the information is | 2 | | proprietary or could harm the business interest of the | 3 | | subcontractor, then the chief procurement officer may, in his | 4 | | or her discretion, redact the information. Redacted | 5 | | information shall not become part of the public record. | 6 | | (b) If at any time during the term of a contract, a | 7 | | contractor adds or
changes any subcontractors, he or she shall | 8 | | promptly notify, in writing, the chief procurement officer for | 9 | | matters other than construction
or the higher education chief
| 10 | | procurement officer, whichever is appropriate, and the
| 11 | | responsible State purchasing officer, or their
designee of the | 12 | | names and addresses and the
expected amount of money each new | 13 | | or replaced subcontractor will receive. Upon request of the | 14 | | chief procurement officer appointed pursuant to paragraph (2) | 15 | | of subsection (a) of Section 10-20, the contractor shall | 16 | | provide the chief procurement officer a copy of any new or | 17 | | amended subcontract so identified within 15 days after the | 18 | | request is made. | 19 | | (c) In addition to any other requirements of this Code, a | 20 | | subcontract subject to this Section must include all of the | 21 | | subcontractor's certifications required by Article 50 of this | 22 | | Code. | 23 | | (d) This Section applies to procurements solicited on or | 24 | | after the effective date of this amendatory Act of the 98th | 25 | | General Assembly. | 26 | | (Source: P.A. 95-481, eff. 8-28-07; 96-920, eff. 7-1-10.)
|
| | | 09800SB1949sam001 | - 10 - | LRB098 07740 HLH 56664 a |
|
| 1 | | (30 ILCS 500/45-45)
| 2 | | Sec. 45-45. Small businesses.
| 3 | | (a) Set-asides. The chief procurement officer has | 4 | | authority to designate as
small business set-asides a fair
| 5 | | proportion of construction, supply, and service contracts for | 6 | | award
to small businesses in Illinois.
Advertisements for bids | 7 | | or offers for those contracts shall
specify designation as | 8 | | small business
set-asides. In awarding the contracts, only bids | 9 | | or offers from
qualified small businesses shall
be considered.
| 10 | | (b) Small business. "Small business" means a business that
| 11 | | is independently owned and
operated and that is not dominant in | 12 | | its field of operation. The
chief procurement officer shall | 13 | | establish a detailed
definition by rule, using in addition to | 14 | | the foregoing criteria
other criteria, including the number
of | 15 | | employees and the dollar volume of business. When computing
the | 16 | | size status of a bidder,
annual sales and receipts of the | 17 | | bidder and all of its affiliates
shall be included. The maximum
| 18 | | number of employees and the maximum dollar volume that a small
| 19 | | business may have under
the rules promulgated by the chief | 20 | | procurement officer may vary from industry
to
industry to the | 21 | | extent necessary
to reflect differing characteristics of those | 22 | | industries, subject
to the following limitations:
| 23 | | (1) No wholesale business is a small business if its
| 24 | | annual sales for its most
recently completed fiscal year | 25 | | exceed $ 14,000,000 10,000,000 .
|
| | | 09800SB1949sam001 | - 11 - | LRB098 07740 HLH 56664 a |
|
| 1 | | (2) No retail business or business selling services is
| 2 | | a small business if it employs more than 100 employees or | 3 | | if its
annual sales and receipts exceed $ 7,000,000 | 4 | | 6,000,000 . For retail business or business selling | 5 | | information technology services that include, but are not | 6 | | limited to, computer programming, data processing and | 7 | | system design businesses, annual sales and receipts may not | 8 | | exceed $25,000,000.
| 9 | | (3) No manufacturing business is a small business if it
| 10 | | employs more than 250
persons.
| 11 | | (4) No construction business is a small business if its
| 12 | | annual sales and receipts
exceed $10,000,000.
| 13 | | (c) Fair proportion. For the purpose of subsection (a), for | 14 | | State agencies
of the executive branch, a
fair proportion of | 15 | | construction
contracts shall be no less than 25% nor more than | 16 | | 40% of the
annual total contracts for
construction.
| 17 | | (d) Withdrawal of designation. A small business set-aside
| 18 | | designation may be withdrawn
by the purchasing agency when | 19 | | deemed in the best interests of the
State. Upon withdrawal, all
| 20 | | bids or offers shall be rejected, and the bidders or offerors
| 21 | | shall be notified of the reason for
rejection. The contract | 22 | | shall then be awarded in accordance with
this Code without the
| 23 | | designation of small business set-aside.
| 24 | | (e) Small business specialist. The chief procurement | 25 | | officer shall
designate a
State purchasing officer
who will be | 26 | | responsible for engaging an experienced contract
negotiator to |
| | | 09800SB1949sam001 | - 12 - | LRB098 07740 HLH 56664 a |
|
| 1 | | serve as its small
business specialist, whose duties shall | 2 | | include:
| 3 | | (1) Compiling and maintaining a comprehensive bidders
| 4 | | list of small
businesses. In this duty, he or she shall | 5 | | cooperate with the
Federal Small Business
Administration | 6 | | in locating potential sources for various products
and | 7 | | services.
| 8 | | (2) Assisting small businesses in complying with the
| 9 | | procedures for bidding
on State contracts.
| 10 | | (3) Examining requests from State agencies for the
| 11 | | purchase of property or
services to help determine which | 12 | | invitations to bid are to be
designated small business | 13 | | set-asides.
| 14 | | (4) Making recommendations to the chief procurement | 15 | | officer for the
simplification of
specifications and terms | 16 | | in order to increase the opportunities
for small business | 17 | | participation.
| 18 | | (5) Assisting in investigations by purchasing agencies
| 19 | | to determine the
responsibility of bidders on small | 20 | | business set-asides.
| 21 | | (f) Small business annual report. The State purchasing
| 22 | | officer designated under
subsection (e) shall annually before | 23 | | December 1 report in writing
to the General Assembly
concerning | 24 | | the awarding of contracts to small businesses. The
report shall | 25 | | include the total
value of awards made in the preceding fiscal | 26 | | year under the
designation of small business set-aside.
The |
| | | 09800SB1949sam001 | - 13 - | LRB098 07740 HLH 56664 a |
|
| 1 | | report shall also include the total value of awards made to
| 2 | | businesses owned by minorities, females, and persons with | 3 | | disabilities, as
defined in the Business Enterprise for | 4 | | Minorities, Females, and Persons with
Disabilities Act, in the | 5 | | preceding fiscal year under the designation of small
business | 6 | | set-aside.
| 7 | | The requirement for reporting to the General Assembly shall
| 8 | | be satisfied by filing copies
of the report as required by | 9 | | Section 3.1 of the General Assembly
Organization Act.
| 10 | | (Source: P.A. 92-60, eff. 7-12-01; 93-769, eff. 1-1-05.)
| 11 | | (30 ILCS 500/50-10.5) | 12 | | Sec. 50-10.5. Prohibited bidders and contractors. | 13 | | (a) Unless otherwise provided, no business shall bid or | 14 | | enter into a
contract or subcontract under this Code if the | 15 | | business or any
officer, director, partner, or other managerial | 16 | | agent of the business has been
convicted of a felony under the | 17 | | Sarbanes-Oxley Act of 2002 or a
Class 3 or Class 2 felony under | 18 | | the Illinois Securities Law of 1953 for a
period of 5 years | 19 | | from
the date of conviction. | 20 | | (b) Every bid submitted to and contract executed by the | 21 | | State and every subcontract subject to Section 20-120 of this | 22 | | Code shall contain
a certification by the bidder, contractor, | 23 | | or subcontractor, respectively, that the bidder, contractor, | 24 | | or subcontractor is not barred
from being awarded a contract or | 25 | | subcontract under this Section and
acknowledges that the chief |
| | | 09800SB1949sam001 | - 14 - | LRB098 07740 HLH 56664 a |
|
| 1 | | procurement officer shall declare the related contract void
if | 2 | | any of
the certifications completed pursuant to this subsection | 3 | | (b) are false. If the false certification is made by a | 4 | | subcontractor, then the contractor's submitted bid and the | 5 | | executed contract may not be declared void, unless the | 6 | | contractor refuses to terminate the subcontract upon the | 7 | | State's request after a finding that the subcontract's | 8 | | certification was false. | 9 | | (c) If a business is not a natural person, the prohibition | 10 | | in subsection (a)
applies only if: | 11 | | (1) the business itself is convicted of a felony | 12 | | referenced in subsection
(a); or | 13 | | (2) the business is ordered to pay punitive damages | 14 | | based on the
conduct
of any officer, director, partner, or | 15 | | other managerial agent who has been
convicted of a felony | 16 | | referenced in subsection (a). | 17 | | (d) A natural person who is convicted of a felony | 18 | | referenced in subsection
(a) remains subject to Section 50-10. | 19 | | (e) No person or business shall bid or enter into a | 20 | | contract under this Code if the person or business assisted an | 21 | | employee of the State of Illinois, who, by the nature of his or | 22 | | her duties, has the authority to participate personally and | 23 | | substantially in the decision to award a State contract, by | 24 | | reviewing, drafting, directing, or preparing any invitation | 25 | | for bids, a request for proposal, or request for information or | 26 | | provided similar assistance except as part of a publicly issued |
| | | 09800SB1949sam001 | - 15 - | LRB098 07740 HLH 56664 a |
|
| 1 | | opportunity to review drafts of all or part of these documents. | 2 | | This subsection does not prohibit a person or business from | 3 | | submitting a bid or proposal or entering into a contract if the | 4 | | person or business: (i) initiates a communication with an | 5 | | employee to provide general information about products, | 6 | | services, or industry best practices and, if applicable, that | 7 | | communication is documented in accordance with Section 50-39 or | 8 | | (ii) responds to a communication initiated by an employee of | 9 | | the State for the purposes of providing information to evaluate | 10 | | new products, trends, services, or technologies. | 11 | | Nothing in this Section prohibits a vendor developing | 12 | | technology, goods, or services from bidding or offering to | 13 | | supply that technology or those goods or services if the | 14 | | subject demonstrated to the State represents industry trends | 15 | | and innovation and is not specifically designed to meet the | 16 | | State's needs. | 17 | | For purposes of this subsection (e), "business" includes | 18 | | all individuals with whom a business is affiliated, including, | 19 | | but not limited to, any officer, agent, employee, consultant, | 20 | | independent contractor, director, partner, or manager , or | 21 | | shareholder of a business. | 22 | | No person or business shall submit specifications to a | 23 | | State agency unless requested to do so by an employee of the | 24 | | State. No person or business who contracts with a State agency | 25 | | to write specifications for a particular procurement need shall | 26 | | submit a bid or proposal or receive a contract for that |
| | | 09800SB1949sam001 | - 16 - | LRB098 07740 HLH 56664 a |
|
| 1 | | procurement need. | 2 | | (Source: P.A. 96-795, eff. 7-1-10 (see Section 5 of P.A. 96-793 | 3 | | for the effective date of changes made by P.A. 96-795); 96-920, | 4 | | eff. 7-1-10; 97-895, eff. 8-3-12.) | 5 | | (30 ILCS 500/50-35) | 6 | | Sec. 50-35. Financial disclosure and potential conflicts | 7 | | of interest. | 8 | | (a) All offers from responsive bidders or offerors with an | 9 | | annual value of
more than $50,000 $25,000 shall be accompanied | 10 | | by disclosure of the financial
interests of the contractor, | 11 | | bidder, or proposer and each subcontractor to be used. In | 12 | | addition, all subcontracts identified as provided by Section | 13 | | 20-120 of this Code with an annual value of
more than $50,000 | 14 | | shall be accompanied by disclosure of the financial
interests | 15 | | of each subcontractor. The financial disclosure of
each | 16 | | successful bidder or offeror and its subcontractors shall be | 17 | | incorporated as a material term of the contract and shall | 18 | | become
part of the publicly available contract or procurement | 19 | | file
maintained by the appropriate chief procurement officer. | 20 | | Each disclosure under this Section shall be signed and made | 21 | | under penalty of perjury by an authorized officer or employee | 22 | | on behalf of the bidder or offeror, and must be filed with the | 23 | | Procurement Policy Board. | 24 | | (b) Disclosure shall include any
ownership or distributive | 25 | | income share that is in excess of 5%, or an amount
greater than |
| | | 09800SB1949sam001 | - 17 - | LRB098 07740 HLH 56664 a |
|
| 1 | | 60% of the annual salary of the Governor, of the disclosing | 2 | | entity
or its parent entity, whichever is less, unless the | 3 | | contractor, bidder, or subcontractor
(i) is a
publicly traded | 4 | | entity subject to Federal 10K reporting, in which case it may
| 5 | | submit its 10K
disclosure in place of the prescribed | 6 | | disclosure, or (ii) is a privately held
entity that is exempt | 7 | | from Federal 10k reporting but has more than 100 200
| 8 | | shareholders, in which case it may submit the information that | 9 | | Federal 10k
reporting companies are required to report under 17 | 10 | | CFR 229.401 and list the
names of any person or entity holding | 11 | | any ownership share that is in excess of
5% in place of the | 12 | | prescribed disclosure. The form of disclosure shall
be | 13 | | prescribed by the applicable chief procurement officer and must | 14 | | include at
least the names,
addresses, and dollar or | 15 | | proportionate share of ownership of each person
identified in | 16 | | this Section, their instrument of ownership or beneficial
| 17 | | relationship, and notice of any potential conflict of interest | 18 | | resulting from
the current ownership or beneficial | 19 | | relationship of each person identified in
this Section having | 20 | | in addition any of the following relationships: | 21 | | (1) State employment, currently or in the previous 3 | 22 | | years, including
contractual employment of services. | 23 | | (2) State employment of spouse, father, mother, son, or | 24 | | daughter,
including
contractual employment for services in | 25 | | the previous 2 years. | 26 | | (3) Elective status; the holding of elective office of |
| | | 09800SB1949sam001 | - 18 - | LRB098 07740 HLH 56664 a |
|
| 1 | | the State of
Illinois, the government of the United States, | 2 | | any unit of local government
authorized by the Constitution | 3 | | of the State of Illinois or the statutes of the
State of | 4 | | Illinois currently or in the previous 3 years. | 5 | | (4) Relationship to anyone holding elective office | 6 | | currently or in the
previous 2 years; spouse, father, | 7 | | mother, son, or daughter. | 8 | | (5) Appointive office; the holding of any appointive | 9 | | government office of
the State of Illinois, the United | 10 | | States of America, or any unit of local
government | 11 | | authorized by the Constitution of the State of Illinois or | 12 | | the
statutes of the State of Illinois, which office | 13 | | entitles the holder to
compensation in excess of expenses | 14 | | incurred in the discharge of that office
currently or in | 15 | | the previous 3 years. | 16 | | (6) Relationship to anyone holding appointive office | 17 | | currently or in the
previous 2 years; spouse, father, | 18 | | mother, son, or daughter. | 19 | | (7) Employment, currently or in the previous 3 years, | 20 | | as or by any
registered lobbyist of the State government. | 21 | | (8) Relationship to anyone who is or was a registered | 22 | | lobbyist in the
previous 2 years; spouse, father, mother, | 23 | | son, or daughter. | 24 | | (9) Compensated employment, currently or in the | 25 | | previous 3 years, by any
registered election or re-election | 26 | | committee registered with the Secretary of
State or any |
| | | 09800SB1949sam001 | - 19 - | LRB098 07740 HLH 56664 a |
|
| 1 | | county clerk in the State of Illinois, or any political | 2 | | action
committee registered with either the Secretary of | 3 | | State or the Federal Board of
Elections. | 4 | | (10) Relationship to anyone; spouse, father, mother, | 5 | | son, or daughter; who
is or was a compensated employee in | 6 | | the last 2 years of any registered
election or re-election | 7 | | committee registered with the Secretary of State or any
| 8 | | county clerk in the State of Illinois, or any political | 9 | | action committee
registered with either the Secretary of | 10 | | State or the Federal Board of
Elections. | 11 | | (b-1) The disclosure required under this Section must also | 12 | | include the name and address of each lobbyist required to | 13 | | register under the Lobbyist Registration Act and other agent of | 14 | | the bidder or offeror who is not identified under subsections | 15 | | (a) and (b) and who has communicated, is communicating, or may | 16 | | communicate with any State officer or employee concerning the | 17 | | bid or offer. The disclosure under this subsection is a | 18 | | continuing obligation and must be promptly supplemented for | 19 | | accuracy throughout the process and throughout the term of the | 20 | | contract if the bid or offer is successful. | 21 | | (b-2) The disclosure required under this Section must also | 22 | | include, for each of the persons identified in subsection (b) | 23 | | or (b-1), each of the following that occurred within the | 24 | | previous 10 years: debarment from contracting with any | 25 | | governmental entity; professional licensure discipline; | 26 | | bankruptcies; adverse civil judgments and administrative |
| | | 09800SB1949sam001 | - 20 - | LRB098 07740 HLH 56664 a |
|
| 1 | | findings; and criminal felony convictions. The disclosure | 2 | | under this subsection is a continuing obligation and must be | 3 | | promptly supplemented for accuracy throughout the process and | 4 | | throughout the term of the contract if the bid or offer is | 5 | | successful. | 6 | | (c) The disclosure in subsection (b) is not intended to | 7 | | prohibit or prevent
any
contract. The disclosure is meant to | 8 | | fully and publicly disclose any potential
conflict to the chief | 9 | | procurement officers, State purchasing officers, their
| 10 | | designees, and executive officers so they may adequately | 11 | | discharge their duty
to protect the State. | 12 | | (d) When a potential for a conflict of interest is | 13 | | identified, discovered, or reasonably suspected, the chief | 14 | | procurement officer or State procurement officer shall send the | 15 | | contract to the Procurement Policy Board. In accordance with | 16 | | the objectives of subsection (c), if the Procurement Policy | 17 | | Board finds evidence of a potential conflict of interest not | 18 | | originally disclosed by the contractor or subcontractor, the | 19 | | Board shall provide written notice to the contractor or | 20 | | subcontractor that is identified, discovered, or reasonably | 21 | | suspected of having a potential conflict of interest. The | 22 | | contractor or subcontractor shall have 15 days to respond in | 23 | | writing to the Board, and a hearing before the Board will be | 24 | | granted upon the contractor's or subcontractor's request, at a | 25 | | date and time to be determined by the Board, but which in no | 26 | | event shall occur later than 15 days after the date of the |
| | | 09800SB1949sam001 | - 21 - | LRB098 07740 HLH 56664 a |
|
| 1 | | request. Upon consideration, the Board shall recommend, in | 2 | | writing, whether to allow or void the contract, bid, offer, or | 3 | | subcontract weighing the best interest of the State of | 4 | | Illinois. All recommendations shall be submitted to the | 5 | | Executive Ethics Commission. The Executive Ethics Commission | 6 | | must hold a public hearing within 30 days after receiving the | 7 | | Board's recommendation if the Procurement Policy Board makes a | 8 | | recommendation to (i) void a contract or (ii) void a bid or | 9 | | offer and the chief procurement officer selected or intends to | 10 | | award the contract to the bidder or offeror. A chief | 11 | | procurement officer is prohibited from awarding a contract | 12 | | before a hearing if the Board recommendation does not support a | 13 | | bid or offer. The recommendation and proceedings of any | 14 | | hearing, if applicable, shall be available to the public. | 15 | | (e) These thresholds and disclosure do not relieve the | 16 | | chief procurement
officer, the State purchasing officer, or
| 17 | | their designees from reasonable care and diligence for any | 18 | | contract, bid,
offer,
or proposal. The chief procurement | 19 | | officer, the State purchasing officer, or
their designees shall | 20 | | be
responsible for using any reasonably known and publicly | 21 | | available information
to
discover any undisclosed potential | 22 | | conflict of interest and act to protect the
best interest of | 23 | | the State of Illinois. | 24 | | (f) Inadvertent or accidental failure to fully disclose | 25 | | shall render the
contract, bid, proposal, subcontract, or | 26 | | relationship voidable by the chief procurement
officer if he or |
| | | 09800SB1949sam001 | - 22 - | LRB098 07740 HLH 56664 a |
|
| 1 | | she deems it in
the best interest of the State of Illinois and, | 2 | | at his or her discretion, may
be cause for barring from future | 3 | | contracts, bids, proposals, subcontracts, or
relationships | 4 | | with the State for a period of up to 2 years. | 5 | | (g) Intentional, willful, or material failure to disclose | 6 | | shall render the
contract, bid, proposal, subcontract, or | 7 | | relationship voidable by the chief procurement
officer if he or | 8 | | she deems it in
the best interest of the State of Illinois and | 9 | | shall result in debarment from
future contracts, bids, | 10 | | proposals, subcontracts, or relationships for a period of not | 11 | | less
than 2 years and not more than 10 years. Reinstatement | 12 | | after 2 years and
before 10 years must be reviewed and | 13 | | commented on in writing by the Governor
of the State of | 14 | | Illinois, or by an executive ethics board or commission he or
| 15 | | she
might designate. The comment shall be returned to the | 16 | | responsible chief
procurement officer who must
rule in writing | 17 | | whether and when to reinstate. | 18 | | (h) In addition, all disclosures shall note any other | 19 | | current or pending
contracts, proposals, subcontracts, leases, | 20 | | or other ongoing procurement relationships the
bidding, | 21 | | proposing, offering, or subcontracting entity has with any | 22 | | other unit of State
government and shall clearly identify the | 23 | | unit and the contract, proposal,
lease, or other relationship. | 24 | | (i) The contractor or bidder has a continuing obligation to | 25 | | supplement the disclosure required by this Section throughout | 26 | | the bidding process or during the term of any contract. |
| | | 09800SB1949sam001 | - 23 - | LRB098 07740 HLH 56664 a |
|
| 1 | | (Source: P.A. 96-795, eff. 7-1-10 (see Section 5 of P.A. 96-793 | 2 | | for the effective date of changes made by P.A. 96-795); 96-920, | 3 | | eff. 7-1-10; 97-490, eff. 8-22-11; 97-895, eff. 8-3-12.) | 4 | | (30 ILCS 500/50-36) | 5 | | Sec. 50-36. Disclosure of business in Iran. | 6 | | (a) As used in this Section:
| 7 | | "Business operations" means engaging in commerce
in any | 8 | | form in Iran, including, but not limited to,
acquiring, | 9 | | developing, maintaining, owning, selling,
possessing, leasing, | 10 | | or operating equipment, facilities,
personnel, products, | 11 | | services, personal property, real
property, or any other | 12 | | apparatus of business or commerce. | 13 | | "Company" means any sole proprietorship,
organization, | 14 | | association, corporation, partnership, joint
venture, limited | 15 | | partnership, limited liability partnership,
limited liability | 16 | | company, or other entity or business
association, including all | 17 | | wholly owned subsidiaries,
majority-owned subsidiaries, parent | 18 | | companies, or affiliates
of those entities or business | 19 | | associations, that exists for
the purpose of making profit. | 20 | | "Mineral-extraction activities" include exploring,
| 21 | | extracting, processing, transporting, or wholesale selling or
| 22 | | trading of elemental minerals or associated metal alloys or
| 23 | | oxides (ore), including gold, copper, chromium, chromite,
| 24 | | diamonds, iron, iron ore, silver, tungsten, uranium, and zinc. | 25 | | "Oil-related activities" include, but are not
limited to, |
| | | 09800SB1949sam001 | - 24 - | LRB098 07740 HLH 56664 a |
|
| 1 | | owning rights to oil blocks; exporting,
extracting, producing, | 2 | | refining, processing, exploring for,
transporting, selling, or | 3 | | trading of oil; and constructing,
maintaining, or operating a | 4 | | pipeline, refinery, or other
oil-field infrastructure. The | 5 | | mere retail sale of gasoline and
related consumer products is | 6 | | not considered an oil-related
activity. | 7 | | "Petroleum resources" means petroleum, petroleum
| 8 | | byproducts, or natural gas. | 9 | | "Substantial action" means adopting, publicizing,
and | 10 | | implementing a formal plan to cease scrutinized business
| 11 | | operations within one year and to refrain from any such new
| 12 | | business operations. | 13 | | (b) Each bid, offer, or proposal submitted for a State | 14 | | contract, other than a small purchase defined in Section 20-20, | 15 | | shall include a disclosure of whether or not the bidder, | 16 | | offeror, or proposing entity, or any of its corporate parents | 17 | | or subsidiaries, within the 24 months before submission of the | 18 | | bid, offer, or proposal had
business operations that involved | 19 | | contracts with or provision
of supplies or services to the | 20 | | Government of Iran, companies
in which the Government of Iran | 21 | | has any direct or indirect
equity share, consortiums or | 22 | | projects commissioned by the
Government of Iran, or companies | 23 | | involved in consortiums or
projects commissioned by the | 24 | | Government of Iran and: | 25 | | (1) more than 10% of the company's revenues produced in | 26 | | or assets located in Iran involve oil-related activities or
|
| | | 09800SB1949sam001 | - 25 - | LRB098 07740 HLH 56664 a |
|
| 1 | | mineral-extraction activities; less than 75% of the
| 2 | | company's revenues produced in or assets located in Iran | 3 | | involve contracts
with or provision of oil-related or | 4 | | mineral-extraction
products or services to the Government | 5 | | of Iran or a project or
consortium created exclusively by | 6 | | that government; and the
company has failed to take | 7 | | substantial action; or | 8 | | (2) the company has, on or after
August 5, 1996, made | 9 | | an investment of $20 million or more, or
any combination of | 10 | | investments of at least $10 million each
that in the | 11 | | aggregate equals or exceeds $20 million in any
12-month | 12 | | period, that directly or significantly contributes
to the | 13 | | enhancement of Iran's ability to develop petroleum
| 14 | | resources of Iran. | 15 | | (c) A bid, offer, or proposal that does not include the | 16 | | disclosure required by subsection (b) shall not be awarded a | 17 | | contract considered responsive . A chief procurement officer | 18 | | may request any correction of the disclosure and may consider | 19 | | the disclosure when evaluating the bid, offer, or proposal or | 20 | | awarding the contract. | 21 | | (d) Each chief procurement officer shall provide the State | 22 | | Comptroller with the name of each entity disclosed under | 23 | | subsection (b) as doing business or having done business in | 24 | | Iran. The State Comptroller shall post that information on his | 25 | | or her official website.
| 26 | | (Source: P.A. 95-616, eff. 1-1-08.)
|
| | | 09800SB1949sam001 | - 26 - | LRB098 07740 HLH 56664 a |
|
| 1 | | Section 99. Effective date. This Act takes effect upon | 2 | | becoming law.".
|
|