Full Text of SB1620 100th General Assembly
SB1620 100TH GENERAL ASSEMBLY |
| | 100TH GENERAL ASSEMBLY
State of Illinois
2017 and 2018 SB1620 Introduced 2/9/2017, by Sen. Michael E. Hastings SYNOPSIS AS INTRODUCED: |
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Amends the Illinois Procurement Code. Provides that the certification of service-disabled veteran-owned small businesses and veteran-owned small businesses is an exclusive powers and functions of the State. Denies home rule powers. Effective immediately.
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| | | HOME RULE NOTE ACT MAY APPLY | |
| | 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) 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 veterans and that | 11 | | qualified 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 | 14 | | process as both prime contractors and subcontractors. Not less | 15 | | than 3% of the total dollar amount of State contracts, as | 16 | | defined by the Director of Central Management Services, shall | 17 | | be established as a goal to be awarded to SDVOSB and VOSB. That
| 18 | | portion of a contract under which the contractor subcontracts
| 19 | | with a SDVOSB or VOSB may be counted toward the
goal of this | 20 | | subsection. The Department of Central Management Services | 21 | | shall adopt rules to implement compliance with this subsection | 22 | | by all State agencies. | 23 | | (b) Fiscal year reports. By each September 1, each chief |
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| 1 | | procurement officer shall report to the Department of Central | 2 | | Management Services on all of the following for the immediately | 3 | | preceding fiscal year, and by each March 1 the Department of | 4 | | Central Management Services shall compile and report that | 5 | | information to the General Assembly: | 6 | | (b-5) The certifications of SDVOSB and VOSB are exclusive | 7 | | powers and functions of the State. A home rule unit may not | 8 | | certify a SDVOSB or VOSB. This subsection is a denial and | 9 | | limitation of home rule powers and functions under subsection | 10 | | (h) of Section 6 of Article VII of the Illinois Constitution. | 11 | | (1) The total number of VOSB, and the number of SDVOSB, | 12 | | who submitted bids for contracts under this Code. | 13 | | (2) The total number of VOSB, and the number of SDVOSB, | 14 | | who entered into contracts with the State under this Code | 15 | | and the total value of those contracts. | 16 | | (c) Yearly review and recommendations. Each year, each | 17 | | chief procurement officer shall review the progress of all | 18 | | State agencies under its jurisdiction in meeting the goal | 19 | | described in subsection (a), with input from statewide | 20 | | veterans' service organizations and from the business | 21 | | community, including businesses owned by qualified veterans, | 22 | | and shall make recommendations to be included in the Department | 23 | | of Central Management Services' report to the General Assembly | 24 | | regarding continuation, increases, or decreases of the | 25 | | percentage goal. The recommendations shall be based upon the | 26 | | number of businesses that are owned by qualified veterans and |
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| 1 | | on the continued need to encourage and promote businesses owned | 2 | | by qualified veterans. | 3 | | (d) Governor's recommendations. To assist the State in | 4 | | reaching the goal described in subsection (a), the Governor | 5 | | shall recommend to the General Assembly changes in programs to | 6 | | assist businesses owned by qualified veterans. | 7 | | (e) Definitions. As used in this Section: | 8 | | "Armed forces of the United States" means the United States | 9 | | Army, Navy, Air Force, Marine Corps, Coast Guard, or service in | 10 | | active duty as defined under 38 U.S.C. Section 101. Service in | 11 | | the Merchant Marine that constitutes active duty under Section | 12 | | 401 of federal Public Act 95-202 shall also be considered | 13 | | service in the armed forces for purposes of this Section. | 14 | | "Certification" means a determination made by the Illinois | 15 | | Department of Veterans' Affairs and the Department of Central | 16 | | Management Services that a business entity is a qualified | 17 | | service-disabled veteran-owned small business or a qualified | 18 | | veteran-owned small business for whatever purpose. A SDVOSB or | 19 | | VOSB owned and controlled by females, minorities, or persons | 20 | | with disabilities, as those terms are defined in Section 2 of | 21 | | the Business Enterprise for Minorities, Females, and Persons | 22 | | with Disabilities Act, may also select and designate whether | 23 | | that business is to be certified as a "female-owned business", | 24 | | "minority-owned business", or "business owned by a person with | 25 | | a disability", as defined in Section 2 of the Business | 26 | | Enterprise for Minorities, Females, and Persons with |
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| 1 | | Disabilities Act. | 2 | | "Control" means the exclusive, ultimate, majority, or sole | 3 | | control of the business, including but not limited to capital | 4 | | investment and all other financial matters, property, | 5 | | acquisitions, contract negotiations, legal matters, | 6 | | officer-director-employee selection and comprehensive hiring, | 7 | | operation responsibilities, cost-control matters, income and | 8 | | dividend matters, financial transactions, and rights of other | 9 | | shareholders or joint partners. Control shall be real, | 10 | | substantial, and continuing, not pro forma. Control shall | 11 | | include the power to direct or cause the direction of the | 12 | | management and policies of the business and to make the | 13 | | day-to-day as well as major decisions in matters of policy, | 14 | | management, and operations. Control shall be exemplified by | 15 | | possessing the requisite knowledge and expertise to run the | 16 | | particular business, and control shall not include simple | 17 | | majority or absentee ownership. | 18 | | "Qualified service-disabled veteran" means a
veteran who | 19 | | has been found to have 10% or more service-connected disability | 20 | | by the United States Department of Veterans Affairs or the | 21 | | United States Department of Defense. | 22 | | "Qualified service-disabled veteran-owned small business" | 23 | | or "SDVOSB" means a small business (i) that is at least 51% | 24 | | owned by one or more qualified service-disabled veterans living | 25 | | in Illinois or, in the case of a corporation, at least 51% of | 26 | | the stock of which is owned by one or more qualified |
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| 1 | | service-disabled veterans living in Illinois; (ii) that has its | 2 | | home office in Illinois; and (iii) for which items (i) and (ii) | 3 | | are factually verified annually by the Department of Central | 4 | | Management Services. | 5 | | "Qualified veteran-owned small business" or "VOSB" means a | 6 | | small business (i) that is at least 51% owned by one or more | 7 | | qualified veterans living in Illinois or, in the case of a | 8 | | corporation, at least 51% of the stock of which is owned by one | 9 | | or more qualified veterans living in Illinois; (ii) that has | 10 | | its home office in Illinois; and (iii) for which items (i) and | 11 | | (ii) are factually verified annually by the Department of | 12 | | Central Management Services. | 13 | | "Service-connected disability" means a disability incurred | 14 | | in the line of duty in the active military, naval, or air | 15 | | service as described in 38 U.S.C. 101(16). | 16 | | "Small business" means a business that has annual gross | 17 | | sales of less than $75,000,000 as evidenced by the federal | 18 | | income tax return of the business. A firm with gross sales in | 19 | | excess of this cap may apply to the Department of Central | 20 | | Management Services for certification for a particular | 21 | | contract if the firm can demonstrate that the contract would | 22 | | have significant impact on SDVOSB or VOSB as suppliers or | 23 | | subcontractors or in employment of veterans or | 24 | | service-disabled veterans. | 25 | | "State agency" has the same meaning as in Section 2 of the | 26 | | Business Enterprise for Minorities, Females, and Persons with |
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| 1 | | Disabilities Act. | 2 | | "Time of hostilities with a foreign country" means any | 3 | | period of time in the past, present, or future during which a | 4 | | declaration of war by the United States Congress has been or is | 5 | | in effect or during which an emergency condition has been or is | 6 | | in effect that is recognized by the issuance of a Presidential | 7 | | proclamation or a Presidential executive order and in which the | 8 | | armed forces expeditionary medal or other campaign service | 9 | | medals are awarded according to Presidential executive order. | 10 | | "Veteran" means a person who (i) has been a member of the | 11 | | armed forces of the United States or, while a citizen of the | 12 | | United States, was a member of the armed forces of allies of | 13 | | the United States in time of hostilities with a foreign country | 14 | | and (ii) has served under one or more of the following | 15 | | conditions: (a) the veteran served a total of at least 6 | 16 | | months; (b) the veteran served for the duration of hostilities | 17 | | regardless of the length of the engagement; (c) the veteran was | 18 | | discharged on the basis of hardship; or (d) the veteran was | 19 | | released from active duty because of a service connected | 20 | | disability and was discharged under honorable conditions. | 21 | | (f) Certification program. The Illinois Department of | 22 | | Veterans' Affairs and the Department of Central Management | 23 | | Services shall work together to devise a certification | 24 | | procedure to assure that businesses taking advantage of this | 25 | | Section are legitimately classified as qualified | 26 | | service-disabled veteran-owned small businesses or qualified |
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| 1 | | veteran-owned small businesses.
| 2 | | (g) Penalties. | 3 | | (1) Administrative penalties. The chief procurement | 4 | | officers appointed pursuant to Section 10-20 shall suspend | 5 | | any person who commits a violation of Section 17-10.3 or | 6 | | subsection (d) of Section 33E-6 of the Criminal Code of | 7 | | 2012 relating to this Section from bidding on, or | 8 | | participating as a contractor, subcontractor, or supplier | 9 | | in, any State contract or project for a period of not less | 10 | | than 3 years, and, if the person is certified as a | 11 | | service-disabled veteran-owned small business or a | 12 | | veteran-owned small business, then the Department shall | 13 | | revoke the business's certification for a period of not | 14 | | less than 3 years. An additional or subsequent violation | 15 | | shall extend the periods of suspension and revocation for a | 16 | | period of not less than 5 years. The suspension and | 17 | | revocation shall apply to the principals of the business | 18 | | and any subsequent business formed or financed by, or | 19 | | affiliated with, those principals. | 20 | | (2) Reports of violations. Each State agency shall | 21 | | report any alleged violation of Section 17-10.3 or | 22 | | subsection (d) of Section 33E-6 of the Criminal Code of | 23 | | 2012 relating to this Section to the chief procurement | 24 | | officers appointed pursuant to Section 10-20. The chief | 25 | | procurement officers appointed pursuant to Section 10-20 | 26 | | shall subsequently report all such alleged violations to |
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| 1 | | the Attorney General, who shall determine whether to bring | 2 | | a civil action against any person for the violation. | 3 | | (3) List of suspended persons. The chief procurement | 4 | | officers appointed pursuant to Section 10-20 shall monitor | 5 | | the status of all reported violations of Section 17-10.3 or | 6 | | subsection (d) of Section 33E-6 of the Criminal Code of | 7 | | 1961 or the Criminal Code of 2012 relating to this Section | 8 | | and shall maintain and make available to all State agencies | 9 | | a central listing of all persons that committed violations | 10 | | resulting in suspension. | 11 | | (4) Use of suspended persons. During the period of a | 12 | | person's suspension under paragraph (1) of this | 13 | | subsection, a State agency shall not enter into any | 14 | | contract with that person or with any contractor using the | 15 | | services of that person as a subcontractor. | 16 | | (5) Duty to check list. Each State agency shall check | 17 | | the central listing provided by the chief procurement | 18 | | officers appointed pursuant to Section 10-20 under | 19 | | paragraph (3) of this subsection to verify that a person | 20 | | being awarded a contract by that State agency, or to be | 21 | | used as a subcontractor or supplier on a contract being | 22 | | awarded by that State agency, is not under suspension | 23 | | pursuant to paragraph (1) of this subsection. | 24 | | (Source: P.A. 97-260, eff. 8-5-11; 97-1150, eff. 1-25-13; | 25 | | 98-307, eff. 8-12-13; 98-1076, eff. 1-1-15 .)
| 26 | | Section 99. Effective date. This Act takes effect upon |
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| 1 | | becoming law.
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