State of Illinois
91st General Assembly
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Public Act 91-0146

SB421 Enrolled                                 LRB9101383JMmb

    AN ACT to amend the Illinois Procurement Code by changing
Section 50-35.

    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 50-35 as follows:

    (30 ILCS 500/50-35)
    Sec.  50-35.  Disclosure  and  potential   conflicts   of
interest.
    (a)  All  offers from responsive bidders or offerors with
an annual value of more than $10,000 shall be accompanied  by
disclosure  of  the  financial  interests  of the contractor,
bidder,  or  proposer.  The  financial  disclosure  of   each
successful  bidder  or  offeror  shall  become  part  of  the
publicly available contract or procurement file maintained by
the appropriate chief procurement officer.
    (b)  Disclosure  by  the  responsive  bidders or offerors
shall include any ownership or distributive income share that
is in excess of 5%, or an amount  greater  than  60%  of  the
annual  salary  of the Governor, of the bidding entity or its
parent entity, whichever is less, unless  the  contractor  or
bidder (i) is a publicly traded entity subject to Federal 10K
reporting,  in which case it may submit its 10K disclosure in
place of the prescribed disclosure, or (ii)  is  a  privately
held entity that is exempt from Federal 10k reporting but has
more  than  400 shareholders, in which case it may submit the
information that Federal 10k reporting companies are required
to report under 17 CFR 229.401 and  list  the  names  of  any
person  or  entity  holding  any  ownership  share that is in
excess of 5% in place of the prescribed disclosure.  The form
of disclosure shall be prescribed  by  the  applicable  chief
procurement  officer  and  must  include  at least the names,
addresses, and dollar or proportionate share of ownership  of
each  person  identified in this Section, their instrument of
ownership or  beneficial  relationship,  and  notice  of  any
potential  conflict  of  interest  resulting from the current
ownership  or  beneficial   relationship   of   each   person
identified  in  this  Section  having  in addition any of the
following relationships:
         (1)  State employment, currently or in the  previous
    3 years, including contractual employment of services.
         (2)  State  employment  of  spouse,  father, mother,
    son, or daughter, including  contractual  employment  for
    services in the previous 2 years.
         (3)  Elective status; the holding of elective office
    of  the  State  of Illinois, the government of the United
    States, any unit of local government  authorized  by  the
    Constitution  of the State of Illinois or the statutes of
    the State of Illinois currently  or  in  the  previous  3
    years.
         (4)  Relationship  to anyone holding elective office
    currently or in the previous  2  years;  spouse,  father,
    mother, son, or daughter.
         (5)  Appointive   office;   the   holding   of   any
    appointive  government  office  of the State of Illinois,
    the United States  of  America,  or  any  unit  of  local
    government authorized by the Constitution of the State of
    Illinois  or the statutes of the State of Illinois, which
    office entitles the holder to compensation in  excess  of
    expenses   incurred  in  the  discharge  of  that  office
    currently or in the previous 3 years.
         (6)  Relationship  to  anyone   holding   appointive
    office  currently  or  in  the  previous 2 years; spouse,
    father, mother, son, or daughter.
         (7)  Employment, currently  or  in  the  previous  3
    years,  as  or  by  any  registered lobbyist of the State
    government.
         (8)  Relationship  to  anyone  who  is  or   was   a
    registered  lobbyist  in  the  previous  2 years; spouse,
    father, mother, son, or daughter.
         (9)  Compensated employment,  currently  or  in  the
    previous   3   years,   by  any  registered  election  or
    re-election committee registered with  the  Secretary  of
    State  or  any  county clerk in the State of Illinois, or
    any political action committee registered with either the
    Secretary of State or the Federal Board of Elections.
         (10)  Relationship  to   anyone;   spouse,   father,
    mother,  son,  or  daughter;  who is or was a compensated
    employee in the last 2 years of any  registered  election
    or re-election committee registered with the Secretary of
    State  or  any  county clerk in the State of Illinois, or
    any political action committee registered with either the
    Secretary of State or the Federal Board of Elections.
    (c)  The disclosure in subsection (b) is not intended  to
prohibit or prevent any contract.  The disclosure is meant to
fully  and  publicly  disclose  any potential conflict to the
chief procurement officers, State purchasing officers,  their
designees,  and  executive  officers  so  they may adequately
discharge their duty to protect the State.
    (d)  In the case of any contract for personal services in
excess of $50,000; any contract competitively bid  in  excess
of  $250,000; any other contract in excess of $50,000; when a
potential  for  a  conflict  of   interest   is   identified,
discovered,  or reasonably suspected it shall be reviewed and
commented on in writing by  the  Governor  of  the  State  of
Illinois, or by an executive ethics board or commission he or
she  might  designate.   The comment shall be returned to the
responsible  chief  procurement  officer  who  must  rule  in
writing whether to void or allow the contract, bid, offer, or
proposal weighing the best interest of the State of Illinois.
The  comment  and  determination  shall  become  a   publicly
available part of the contract, bid, or proposal file.
    (e)  These  threshholds and disclosure do not relieve the
chief procurement officer, the State purchasing  officer,  or
their  designees  from  reasonable care and diligence for any
contract, bid, offer, or  proposal.   The  chief  procurement
officer,  the  State  purchasing  officer, or their designees
shall be responsible  for  using  any  reasonably  known  and
publicly  available  information  to discover any undisclosed
potential conflict of interest and act to  protect  the  best
interest of the State of Illinois.
    (f)  Inadvertent  or accidental failure to fully disclose
shall render the contract,  bid,  proposal,  or  relationship
voidable  by the chief procurement officer if he or she deems
it in the best interest of the State of Illinois and, at  his
or  her  discretion,  may  be  cause  for barring from future
contracts, bids, proposals, or relationships with  the  State
for a period of up to 2 years.
    (g)  Intentional,   willful,   or   material  failure  to
disclose  shall  render  the  contract,  bid,  proposal,   or
relationship  voidable by the chief procurement officer if he
or she deems it in the best interest of the State of Illinois
and shall result in debarment from  future  contracts,  bids,
proposals,  or  relationships for a period of not less than 2
years and not more than  10  years.   Reinstatement  after  2
years  and  before 10 years must be reviewed and commented on
in writing by the Governor of the State of Illinois, or by an
executive  ethics  board  or  commission  he  or  she   might
designate.   The comment shall be returned to the responsible
chief procurement officer who must rule  in  writing  whether
and when to reinstate.
    (h)  In  addition,  all  disclosures shall note any other
current or pending contracts,  proposals,  leases,  or  other
ongoing  procurement relationships the bidding, proposing, or
offering entity has with any other unit of  State  government
and  shall  clearly  identify  the  unit  and  the  contract,
proposal, lease, or other relationship.
(Source: P.A. 90-572, eff. 2-6-98.)

    Section  99.  Effective date.  This Act takes effect upon
becoming law.

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