Full Text of HB2770 102nd General Assembly
HB2770 102ND GENERAL ASSEMBLY |
| | 102ND GENERAL ASSEMBLY
State of Illinois
2021 and 2022 HB2770 Introduced 2/19/2021, by Rep. Dave Vella SYNOPSIS AS INTRODUCED: |
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Amends the Illinois Procurement Code. Provides that each chief procurement officer has authority to designate as veteran small business set-asides a fair proportion of construction, supply, and service contracts for awards to qualified service-disabled veteran-owned small businesses or veteran-owned small businesses. Provides further requirements concerning veteran small business set-aside designations. Requires each chief procurement officer to report to the General Assembly (currently, Department of Central Management Services) on specified information concerning qualified service-disabled veteran-owned small businesses and veteran-owned small businesses, and requires that the number of bids or offers will be delineated between contracts that were designated as set-aside and those that were not designated as set-aside. Makes other changes.
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| | A BILL FOR |
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| 1 | | AN ACT concerning finance.
| 2 | | Be it enacted by the People of the State of Illinois,
| 3 | | represented in the General Assembly:
| 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. | 8 | | (a) Goal Set-aside goal . It is the goal of the State to | 9 | | promote and encourage the continued economic development of | 10 | | small businesses owned and controlled by qualified veterans | 11 | | and that qualified service-disabled veteran-owned small | 12 | | businesses (referred to as SDVOSB) and veteran-owned small | 13 | | businesses (referred to as VOSB) participate in the State's | 14 | | procurement process as both prime contractors and | 15 | | subcontractors. Not less than 3% of the total dollar amount of | 16 | | State contracts, as defined by the Director of Central | 17 | | Management Services, shall be established as a goal to be | 18 | | awarded to SDVOSB and VOSB. That
portion of a contract under | 19 | | which the contractor subcontracts
with a SDVOSB or VOSB may be | 20 | | counted toward the
goal of this subsection. The Department of | 21 | | Central Management Services shall adopt rules to implement | 22 | | compliance with this subsection by all State agencies. | 23 | | (a-5) Set-asides. Each chief procurement officer has |
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| 1 | | authority to designate as veteran small business set-asides a | 2 | | fair proportion of construction, supply, and service contracts | 3 | | for awards to qualified service-disabled veteran-owned small | 4 | | businesses or veteran-owned small businesses. Advertisements | 5 | | for bids or offers for such contracts shall specify | 6 | | designation as veteran small business set-asides. In awarding | 7 | | the contracts, only bids or offers from qualified | 8 | | service-disabled veteran-owned small businesses or | 9 | | veteran-owned small businesses shall be considered. | 10 | | (1) A veteran small business set-aside designation may | 11 | | be withdrawn by the purchasing agency when deemed in the | 12 | | best interests of the State. Upon withdrawal, all bids or | 13 | | offers shall be rejected, and the bidders or offerors | 14 | | shall be notified of the reason for rejection. The | 15 | | contract shall then be awarded in accordance with this | 16 | | Code without the designation of veteran small business | 17 | | set-aside. | 18 | | (2) Each chief procurement officer may adopt rules to | 19 | | implement and administer the use of set-asides. | 20 | | (b) Fiscal year reports. By each November 1, each chief | 21 | | procurement officer shall report to the General Assembly | 22 | | Department of Central Management Services on all of the | 23 | | following for the immediately preceding fiscal year , and by | 24 | | each March 1 the Department of Central Management Services | 25 | | shall compile and report that information to the General | 26 | | Assembly : |
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| 1 | | (1) The total number of VOSB, and the number of | 2 | | SDVOSB, who submitted bids or offers for contracts under | 3 | | this Code. The number of bids or offers will be delineated | 4 | | between contracts that were set-aside under subsection | 5 | | (a-5) and those that were not set-aside. | 6 | | (2) The total number of VOSB, and the number of | 7 | | SDVOSB, who entered into contracts with the State under | 8 | | this Code and the total value of those contracts. The | 9 | | number of contracts and the value of contracts will be | 10 | | delineated between contracts that were awarded as | 11 | | set-asides under subsection (a-5) and those that were not | 12 | | set-aside. | 13 | | The requirement for reporting to the General Assembly | 14 | | under this subsection (b) shall be satisfied by filing copies | 15 | | of the report as required by Section 3.1 of the General | 16 | | Assembly Organization Act. | 17 | | (c) Yearly review and recommendations. Each year, each | 18 | | chief procurement officer shall review the progress of all | 19 | | State agencies under its jurisdiction in meeting the goal | 20 | | described in subsection (a), with input from statewide | 21 | | veterans' service organizations and from the business | 22 | | community, including businesses owned by qualified veterans, | 23 | | and shall make recommendations to be included in the | 24 | | Department of Central Management Services' report to the | 25 | | General Assembly regarding continuation, increases, or | 26 | | decreases of the percentage goal. The recommendations shall be |
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| 1 | | based upon the number of businesses that are owned by | 2 | | qualified veterans and on the continued need to encourage and | 3 | | promote businesses owned by qualified veterans. | 4 | | (d) Governor's recommendations. To assist the State in | 5 | | reaching the goal described in subsection (a), the Governor | 6 | | shall recommend to the General Assembly changes in programs to | 7 | | assist businesses owned by qualified veterans. | 8 | | (e) Definitions. As used in this Section: | 9 | | "Armed forces of the United States" means the United | 10 | | States Army, Navy, Air Force, Marine Corps, Coast Guard, or | 11 | | service in active duty as defined under 38 U.S.C. Section 101. | 12 | | Service in the Merchant Marine that constitutes active duty | 13 | | under Section 401 of federal Public Act 95-202 shall also be | 14 | | considered service in the armed forces for purposes of this | 15 | | Section. | 16 | | "Certification" means a determination made by the Illinois | 17 | | Department of Veterans' Affairs and the Department of Central | 18 | | Management Services that a business entity is a qualified | 19 | | service-disabled veteran-owned small business or a qualified | 20 | | veteran-owned small business for whatever purpose. A SDVOSB or | 21 | | VOSB owned and controlled by women, minorities, or persons | 22 | | with disabilities, as those terms are defined in Section 2 of | 23 | | the Business Enterprise for Minorities, Women, and Persons | 24 | | with Disabilities Act, may also select and designate whether | 25 | | that business is to be certified as a "women-owned business", | 26 | | "minority-owned business", or "business owned by a person with |
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| 1 | | a disability", as defined in Section 2 of the Business | 2 | | Enterprise for Minorities, Women, and Persons with | 3 | | Disabilities Act. | 4 | | "Control" means the exclusive, ultimate, majority, or sole | 5 | | control of the business, including but not limited to capital | 6 | | investment and all other financial matters, property, | 7 | | acquisitions, contract negotiations, legal matters, | 8 | | officer-director-employee selection and comprehensive hiring, | 9 | | operation responsibilities, cost-control matters, income and | 10 | | dividend matters, financial transactions, and rights of other | 11 | | shareholders or joint partners. Control shall be real, | 12 | | substantial, and continuing, not pro forma. Control shall | 13 | | include the power to direct or cause the direction of the | 14 | | management and policies of the business and to make the | 15 | | day-to-day as well as major decisions in matters of policy, | 16 | | management, and operations. Control shall be exemplified by | 17 | | possessing the requisite knowledge and expertise to run the | 18 | | particular business, and control shall not include simple | 19 | | majority or absentee ownership. | 20 | | "Qualified service-disabled veteran" means a
veteran who | 21 | | has been found to have 10% or more service-connected | 22 | | disability by the United States Department of Veterans Affairs | 23 | | or the United States Department of Defense. | 24 | | "Qualified service-disabled veteran-owned small business" | 25 | | or "SDVOSB" means a small business (i) that is at least 51% | 26 | | owned by one or more qualified service-disabled veterans |
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| 1 | | living in Illinois or, in the case of a corporation, at least | 2 | | 51% of the stock of which is owned by one or more qualified | 3 | | service-disabled veterans living in Illinois; (ii) that has | 4 | | its home office in Illinois; and (iii) for which items (i) and | 5 | | (ii) are factually verified annually by the Department of | 6 | | Central Management Services. | 7 | | "Qualified veteran-owned small business" or "VOSB" means a | 8 | | small business (i) that is at least 51% owned by one or more | 9 | | qualified veterans living in Illinois or, in the case of a | 10 | | corporation, at least 51% of the stock of which is owned by one | 11 | | or more qualified veterans living in Illinois; (ii) that has | 12 | | its home office in Illinois; and (iii) for which items (i) and | 13 | | (ii) are factually verified annually by the Department of | 14 | | Central Management Services. | 15 | | "Service-connected disability" means a disability incurred | 16 | | in the line of duty in the active military, naval, or air | 17 | | service as described in 38 U.S.C. 101(16). | 18 | | "Small business" means a business that has annual gross | 19 | | sales of less than $75,000,000 as evidenced by the federal | 20 | | income tax return of the business. A firm with gross sales in | 21 | | excess of this cap may apply to the Department of Central | 22 | | Management Services for certification for a particular | 23 | | contract if the firm can demonstrate that the contract would | 24 | | have significant impact on SDVOSB or VOSB as suppliers or | 25 | | subcontractors or in employment of veterans or | 26 | | service-disabled veterans. |
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| 1 | | "State agency" has the meaning provided in Section | 2 | | 1-15.100 of this Code. | 3 | | "Time of hostilities with a foreign country" means any | 4 | | period of time in the past, present, or future during which a | 5 | | declaration of war by the United States Congress has been or is | 6 | | in effect or during which an emergency condition has been or is | 7 | | in effect that is recognized by the issuance of a Presidential | 8 | | proclamation or a Presidential executive order and in which | 9 | | the armed forces expeditionary medal or other campaign service | 10 | | medals are awarded according to Presidential executive order. | 11 | | "Veteran" means a person who (i) has been a member of the | 12 | | armed forces of the United States or, while a citizen of the | 13 | | United States, was a member of the armed forces of allies of | 14 | | the United States in time of hostilities with a foreign | 15 | | country and (ii) has served under one or more of the following | 16 | | conditions: (a) the veteran served a total of at least 6 | 17 | | months; (b) the veteran served for the duration of hostilities | 18 | | regardless of the length of the engagement; (c) the veteran | 19 | | was discharged on the basis of hardship; or (d) the veteran was | 20 | | released from active duty because of a service connected | 21 | | disability and was discharged under honorable conditions. | 22 | | (f) Certification program. The Illinois Department of | 23 | | Veterans' Affairs and the Department of Central Management | 24 | | Services shall work together to devise a certification | 25 | | procedure to assure that businesses taking advantage of this | 26 | | Section are legitimately classified as qualified |
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| 1 | | service-disabled veteran-owned small businesses or qualified | 2 | | veteran-owned small businesses.
| 3 | | (g) Penalties. | 4 | | (1) Administrative penalties. The chief procurement | 5 | | officers appointed pursuant to Section 10-20 shall suspend | 6 | | any person who commits a violation of Section 17-10.3 or | 7 | | subsection (d) of Section 33E-6 of the Criminal Code of | 8 | | 2012 relating to this Section from bidding on, or | 9 | | participating as a contractor, subcontractor, or supplier | 10 | | in, any State contract or project for a period of not less | 11 | | than 3 years, and, if the person is certified as a | 12 | | service-disabled veteran-owned small business or a | 13 | | veteran-owned small business, then the Department shall | 14 | | revoke the business's certification for a period of not | 15 | | less than 3 years. An additional or subsequent violation | 16 | | shall extend the periods of suspension and revocation for | 17 | | a period of not less than 5 years. The suspension and | 18 | | revocation shall apply to the principals of the business | 19 | | and any subsequent business formed or financed by, or | 20 | | affiliated with, those principals. | 21 | | (2) Reports of violations. Each State agency shall | 22 | | report any alleged violation of Section 17-10.3 or | 23 | | subsection (d) of Section 33E-6 of the Criminal Code of | 24 | | 2012 relating to this Section to the chief procurement | 25 | | officers appointed pursuant to Section 10-20. The chief | 26 | | procurement officers appointed pursuant to Section 10-20 |
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| 1 | | shall subsequently report all such alleged violations to | 2 | | the Attorney General, who shall determine whether to bring | 3 | | a civil action against any person for the violation. | 4 | | (3) List of suspended persons. The chief procurement | 5 | | officers appointed pursuant to Section 10-20 shall monitor | 6 | | the status of all reported violations of Section 17-10.3 | 7 | | or subsection (d) of Section 33E-6 of the Criminal Code of | 8 | | 1961 or the Criminal Code of 2012 relating to this Section | 9 | | and shall maintain and make available to all State | 10 | | agencies a central listing of all persons that committed | 11 | | violations resulting in suspension. | 12 | | (4) Use of suspended persons. During the period of a | 13 | | person's suspension under paragraph (1) of this | 14 | | subsection, a State agency shall not enter into any | 15 | | contract with that person or with any contractor using the | 16 | | services of that person as a subcontractor. | 17 | | (5) Duty to check list. Each State agency shall check | 18 | | the central listing provided by the chief procurement | 19 | | officers appointed pursuant to Section 10-20 under | 20 | | paragraph (3) of this subsection to verify that a person | 21 | | being awarded a contract by that State agency, or to be | 22 | | used as a subcontractor or supplier on a contract being | 23 | | awarded by that State agency, is not under suspension | 24 | | pursuant to paragraph (1) of this subsection. | 25 | | (Source: P.A. 100-43, eff. 8-9-17; 100-391, eff. 8-25-17; | 26 | | 100-863, eff. 8-14-18.)
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