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Public Act 102-0166


 

Public Act 0166 102ND GENERAL ASSEMBLY

  
  
  

 


 
Public Act 102-0166
 
SB0687 EnrolledLRB102 12622 RJF 17960 b

    AN ACT concerning finance.
 
    Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
 
    Section 5. The Illinois Procurement Code is amended by
changing Section 45-57 as follows:
 
    (30 ILCS 500/45-57)
    Sec. 45-57. Veterans.
    (a) Set-aside goal. It is the goal of the State to promote
and encourage the continued economic development of small
businesses owned and controlled by qualified veterans and that
qualified service-disabled veteran-owned small businesses
(referred to as SDVOSB) and veteran-owned small businesses
(referred to as VOSB) participate in the State's procurement
process as both prime contractors and subcontractors. Not less
than 3% of the total dollar amount of State contracts, as
defined by the Director of Central Management Services, shall
be established as a goal to be awarded to SDVOSB and VOSB. That
portion of a contract under which the contractor subcontracts
with a SDVOSB or VOSB may be counted toward the goal of this
subsection. The Department of Central Management Services
shall adopt rules to implement compliance with this subsection
by all State agencies.
    (b) Fiscal year reports. By each November 1, each chief
procurement officer shall report to the Department of Central
Management Services on all of the following for the
immediately preceding fiscal year, and by each March 1 the
Department of Central Management Services shall compile and
report that information to the General Assembly:
        (1) The total number of VOSB, and the number of
    SDVOSB, who submitted bids for contracts under this Code.
        (2) The total number of VOSB, and the number of
    SDVOSB, who entered into contracts with the State under
    this Code and the total value of those contracts.
    (b-5) The Department of Central Management Services shall
submit an annual report to the Governor and the General
Assembly that shall include the following:
        (1) a year-by-year comparison of the number of
    certifications the State has issued to veteran-owned small
    businesses and service-disabled veteran-owned small
    businesses;
        (2) the obstacles, if any, the Department of Central
    Management Services faces when certifying veteran-owned
    businesses and possible rules or changes to rules to
    address those issues;
        (3) a year-by-year comparison of awarded contracts to
    certified veteran-owned small businesses and
    service-disabled veteran-owned small businesses; and
        (4) any other information that the Department of
    Central Management Services deems necessary to assist
    veteran-owned small businesses and service-disabled
    veteran-owned small businesses to become certified with
    the State.
    The Department of Central Management Services shall
conduct a minimum of 2 outreach events per year to ensure that
veteran-owned small businesses and service-disabled
veteran-owned small businesses know about the procurement
opportunities and certification requirements with the State.
The Department of Central Management Services may receive
appropriations for outreach.
    (c) Yearly review and recommendations. Each year, each
chief procurement officer shall review the progress of all
State agencies under its jurisdiction in meeting the goal
described in subsection (a), with input from statewide
veterans' service organizations and from the business
community, including businesses owned by qualified veterans,
and shall make recommendations to be included in the
Department of Central Management Services' report to the
General Assembly regarding continuation, increases, or
decreases of the percentage goal. The recommendations shall be
based upon the number of businesses that are owned by
qualified veterans and on the continued need to encourage and
promote businesses owned by qualified veterans.
    (d) Governor's recommendations. To assist the State in
reaching the goal described in subsection (a), the Governor
shall recommend to the General Assembly changes in programs to
assist businesses owned by qualified veterans.
    (e) Definitions. As used in this Section:
    "Armed forces of the United States" means the United
States Army, Navy, Air Force, Marine Corps, Coast Guard, or
service in active duty as defined under 38 U.S.C. Section 101.
Service in the Merchant Marine that constitutes active duty
under Section 401 of federal Public Act 95-202 shall also be
considered service in the armed forces for purposes of this
Section.
    "Certification" means a determination made by the Illinois
Department of Veterans' Affairs and the Department of Central
Management Services that a business entity is a qualified
service-disabled veteran-owned small business or a qualified
veteran-owned small business for whatever purpose. A SDVOSB or
VOSB owned and controlled by women, minorities, or persons
with disabilities, as those terms are defined in Section 2 of
the Business Enterprise for Minorities, Women, and Persons
with Disabilities Act, may also select and designate whether
that business is to be certified as a "women-owned business",
"minority-owned business", or "business owned by a person with
a disability", as defined in Section 2 of the Business
Enterprise for Minorities, Women, and Persons with
Disabilities Act.
    "Control" means the exclusive, ultimate, majority, or sole
control of the business, including but not limited to capital
investment and all other financial matters, property,
acquisitions, contract negotiations, legal matters,
officer-director-employee selection and comprehensive hiring,
operation responsibilities, cost-control matters, income and
dividend matters, financial transactions, and rights of other
shareholders or joint partners. Control shall be real,
substantial, and continuing, not pro forma. Control shall
include the power to direct or cause the direction of the
management and policies of the business and to make the
day-to-day as well as major decisions in matters of policy,
management, and operations. Control shall be exemplified by
possessing the requisite knowledge and expertise to run the
particular business, and control shall not include simple
majority or absentee ownership.
    "Qualified service-disabled veteran" means a veteran who
has been found to have 10% or more service-connected
disability by the United States Department of Veterans Affairs
or the United States Department of Defense.
    "Qualified service-disabled veteran-owned small business"
or "SDVOSB" means a small business (i) that is at least 51%
owned by one or more qualified service-disabled veterans
living in Illinois or, in the case of a corporation, at least
51% of the stock of which is owned by one or more qualified
service-disabled veterans living in Illinois; (ii) that has
its home office in Illinois; and (iii) for which items (i) and
(ii) are factually verified annually by the Department of
Central Management Services.
    "Qualified veteran-owned small business" or "VOSB" means a
small business (i) that is at least 51% owned by one or more
qualified veterans living in Illinois or, in the case of a
corporation, at least 51% of the stock of which is owned by one
or more qualified veterans living in Illinois; (ii) that has
its home office in Illinois; and (iii) for which items (i) and
(ii) are factually verified annually by the Department of
Central Management Services.
    "Service-connected disability" means a disability incurred
in the line of duty in the active military, naval, or air
service as described in 38 U.S.C. 101(16).
    "Small business" means a business that has annual gross
sales of less than $75,000,000 as evidenced by the federal
income tax return of the business. A firm with gross sales in
excess of this cap may apply to the Department of Central
Management Services for certification for a particular
contract if the firm can demonstrate that the contract would
have significant impact on SDVOSB or VOSB as suppliers or
subcontractors or in employment of veterans or
service-disabled veterans.
    "State agency" has the meaning provided in Section
1-15.100 of this Code.
    "Time of hostilities with a foreign country" means any
period of time in the past, present, or future during which a
declaration of war by the United States Congress has been or is
in effect or during which an emergency condition has been or is
in effect that is recognized by the issuance of a Presidential
proclamation or a Presidential executive order and in which
the armed forces expeditionary medal or other campaign service
medals are awarded according to Presidential executive order.
    "Veteran" means a person who (i) has been a member of the
armed forces of the United States or, while a citizen of the
United States, was a member of the armed forces of allies of
the United States in time of hostilities with a foreign
country and (ii) has served under one or more of the following
conditions: (a) the veteran served a total of at least 6
months; (b) the veteran served for the duration of hostilities
regardless of the length of the engagement; (c) the veteran
was discharged on the basis of hardship; or (d) the veteran was
released from active duty because of a service connected
disability and was discharged under honorable conditions.
    (f) Certification program. The Illinois Department of
Veterans' Affairs and the Department of Central Management
Services shall work together to devise a certification
procedure to assure that businesses taking advantage of this
Section are legitimately classified as qualified
service-disabled veteran-owned small businesses or qualified
veteran-owned small businesses.
    The Department of Central Management Services shall:
        (1) compile and maintain a comprehensive list of
    certified veteran-owned small businesses and
    service-disabled veteran-owned small businesses;
        (2) assist veteran-owned small businesses and
    service-disabled veteran-owned small businesses in
    complying with the procedures for bidding on State
    contracts;
        (3) provide training for State agencies regarding the
    goal setting process and compliance with veteran-owned
    small business and service-disabled veteran-owned small
    business goals; and
        (4) implement and maintain an electronic portal on the
    Department's website for the purpose of completing and
    submitting veteran-owned small business and
    service-disabled veteran-owned small business
    certificates.
    The Department of Central Management Services, in
consultation with the Department of Veterans' Affairs, may
develop programs and agreements to encourage cities, counties,
towns, townships, and other certifying entities to adopt
uniform certification procedures and certification recognition
programs.
    (f-5) A business shall be certified by the Department of
Central Management Services as a service-disabled
veteran-owned small business or a veteran-owned small business
for purposes of this Section if the Department of Central
Management Services determines that the business has been
certified as a service-disabled veteran-owned small business
or a veteran-owned small business by the Vets First
Verification Program of the United States Department of
Veterans Affairs, and the business has provided to the
Department of Central Management Services the following:
        (1) documentation showing certification as a
    service-disabled veteran-owned small business or a
    veteran-owned small business by the Vets First
    Verification Program of the United States Department of
    Veterans Affairs;
        (2) proof that the business has its home office in
    Illinois; and
        (3) proof that the qualified veterans or qualified
    service-disabled veterans live in the State of Illinois.
    The policies of the Department of Central Management
Services regarding recognition of the Vets First Verification
Program of the United States Department of Veterans Affairs
shall be reviewed annually by the Department of Central
Management Services, and recognition of service-disabled
veteran-owned small businesses and veteran-owned small
businesses certified by the Vets First Verification Program of
the United States Department of Veterans Affairs may be
discontinued by the Department of Central Management Services
by rule upon a finding that the certification standards of the
Vets First Verification Program of the United States
Department of Veterans Affairs do not meet the certification
requirements established by the Department of Central
Management Services.
    (g) Penalties.
        (1) Administrative penalties. The chief procurement
    officers appointed pursuant to Section 10-20 shall suspend
    any person who commits a violation of Section 17-10.3 or
    subsection (d) of Section 33E-6 of the Criminal Code of
    2012 relating to this Section from bidding on, or
    participating as a contractor, subcontractor, or supplier
    in, any State contract or project for a period of not less
    than 3 years, and, if the person is certified as a
    service-disabled veteran-owned small business or a
    veteran-owned small business, then the Department shall
    revoke the business's certification for a period of not
    less than 3 years. An additional or subsequent violation
    shall extend the periods of suspension and revocation for
    a period of not less than 5 years. The suspension and
    revocation shall apply to the principals of the business
    and any subsequent business formed or financed by, or
    affiliated with, those principals.
        (2) Reports of violations. Each State agency shall
    report any alleged violation of Section 17-10.3 or
    subsection (d) of Section 33E-6 of the Criminal Code of
    2012 relating to this Section to the chief procurement
    officers appointed pursuant to Section 10-20. The chief
    procurement officers appointed pursuant to Section 10-20
    shall subsequently report all such alleged violations to
    the Attorney General, who shall determine whether to bring
    a civil action against any person for the violation.
        (3) List of suspended persons. The chief procurement
    officers appointed pursuant to Section 10-20 shall monitor
    the status of all reported violations of Section 17-10.3
    or subsection (d) of Section 33E-6 of the Criminal Code of
    1961 or the Criminal Code of 2012 relating to this Section
    and shall maintain and make available to all State
    agencies a central listing of all persons that committed
    violations resulting in suspension.
        (4) Use of suspended persons. During the period of a
    person's suspension under paragraph (1) of this
    subsection, a State agency shall not enter into any
    contract with that person or with any contractor using the
    services of that person as a subcontractor.
        (5) Duty to check list. Each State agency shall check
    the central listing provided by the chief procurement
    officers appointed pursuant to Section 10-20 under
    paragraph (3) of this subsection to verify that a person
    being awarded a contract by that State agency, or to be
    used as a subcontractor or supplier on a contract being
    awarded by that State agency, is not under suspension
    pursuant to paragraph (1) of this subsection.
(Source: P.A. 100-43, eff. 8-9-17; 100-391, eff. 8-25-17;
100-863, eff. 8-14-18.)
 
    Section 99. Effective date. This Act takes effect upon
becoming law.

Effective Date: 7/26/2021