Rep. Linda Chapa LaVia

Filed: 4/28/2011

 

 


 

 


 
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1
AMENDMENT TO SENATE BILL 1270

2    AMENDMENT NO. ______. Amend Senate Bill 1270 by replacing
3everything after the enacting clause with the following:
 
4    "Section 5. The Illinois Procurement Code is amended by
5changing Section 45-57 as follows:
 
6    (30 ILCS 500/45-57)
7    Sec. 45-57. Veterans Disabled veterans.
8    (a) Set-aside goal. It is the goal of the State to promote
9and encourage the continued economic development of small
10businesses owned and controlled by qualified service disabled
11veterans and that qualified service-disabled service disabled
12veteran-owned small businesses (referred to as SDVOSB SDVOB)
13and veteran-owned small businesses (referred to as VOSB)
14participate in the State's procurement process as both prime
15contractors and subcontractors. Not less than 3% of the total
16dollar amount of State contracts, as defined by the Director of

 

 

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1Central Management Services, shall be established as a goal to
2be awarded to SDVOSB and VOSB. A Task Force shall be
3established, appointed by the Directors or Secretaries of, and
4made up of representatives of, the Illinois Department of
5Veterans' Affairs, the Illinois Department of Transportation,
6the Department of Central Management Services, the Business
7Enterprise Program, and the Business Enterprise Council. The
8Department of Central Management Services shall provide
9administrative support to the Task Force. The purpose of this
10Task Force shall be to determine the appropriate percentage
11goal for award each fiscal year of the State's total
12expenditures for contracts awarded under this Code to SDVOB.
13That portion of a contract under which the contractor
14subcontracts with a SDVOSB or VOSB SDVOB may be counted toward
15the goal of this subsection. The Department of Central
16Management Services shall adopt rules to implement compliance
17with this subsection by all State agencies. In making that
18determination the Task Force shall consult with statewide
19veterans' service organizations and the business community,
20including businesses owned by qualified disabled veterans. The
21Task Force shall submit its report to the General Assembly
22concerning its recommendations regarding the appropriate
23percentage goal for award each fiscal year of the State's total
24expenditures for contracts awarded under this Code to qualified
25service disabled veterans no later than 90 days after the
26effective date of this amendatory Act of the 96th General

 

 

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1Assembly.
2    (b) Fiscal year reports. By Once the appropriate goal is
3established, then by each September 1, each chief procurement
4officer shall report to the Department of Central Management
5Services on all of the following for the immediately preceding
6fiscal year, and by each October 1 the Department of Central
7Management Services shall compile and report that information
8to the General Assembly:
9        (1) The total number of VOSB, and the number of SDVOSB,
10    SDVOB who submitted bids a bid for contracts a contract
11    under this Code.
12        (2) The total number of VOSB, and the number of SDVOSB,
13    SDVOB who entered into contracts with the State under this
14    Code and the total value of those contracts.
15    (c) Yearly review and recommendations. Each year, each
16chief procurement officer shall review the progress of all
17State agencies under its jurisdiction in meeting the goal
18described in subsection (a), with input from statewide
19veterans' service organizations and from the business
20community, including businesses owned by qualified disabled
21veterans, and shall make recommendations to be included in the
22Department of Central Management Services' report to the
23General Assembly regarding continuation, increases, or
24decreases of the percentage goal. The recommendations shall be
25based upon the number of businesses that are owned by qualified
26disabled veterans and on the continued need to encourage and

 

 

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1promote businesses owned by qualified disabled veterans.
2    (d) Governor's recommendations. To assist the State in
3reaching the goal described in subsection (a), the Governor
4shall recommend to the General Assembly changes in programs to
5assist businesses owned by qualified disabled veterans.
6    (e) Definitions. As used in this Section:
7    "Armed forces of the United States" means the United States
8Army, Navy, Air Force, Marine Corps, Coast Guard, or service in
9active duty as defined under 38 U.S.C. Section 101. Service in
10the Merchant Marine that constitutes active duty under Section
11401 of federal Public Act 95-202 shall also be considered
12service in the armed forces for purposes of this Section.
13    " Business" means a business that has average annual gross
14sales over the 3 most recent calendar years of less than
15$31,000,000 as evidenced by the federal income tax returns of
16the business.
17    "Certification" means a determination made by the Illinois
18Department of Veterans' Affairs and the Department of Central
19Management Services that a business entity is a qualified
20service-disabled veteran-owned small business or a qualified
21veteran-owned small business for whatever purpose. A SDVOSB or
22VOSB owned and controlled by females, minorities, or persons
23with disabilities, as those terms are defined in Section 2 of
24the Business Enterprise for Minorities, Females, and Persons
25with Disabilities Act, shall select and designate whether that
26business is to be certified as a "female-owned business",

 

 

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1"minority-owned business", or "business owned by a person with
2a disability", as defined in Section 2 of the Business
3Enterprise for Minorities, Females, and Persons with
4Disabilities Act, or as a qualified SDVOSB or qualified VOSB
5under this Section.
6    "Control" means the exclusive, ultimate, majority, or sole
7control of the business, including but not limited to capital
8investment and all other financial matters, property,
9acquisitions, contract negotiations, legal matters,
10officer-director-employee selection and comprehensive hiring,
11operation responsibilities, cost-control matters, income and
12dividend matters, financial transactions, and rights of other
13shareholders or joint partners. Control shall be real,
14substantial, and continuing, not pro forma. Control shall
15include the power to direct or cause the direction of the
16management and policies of the business and to make the
17day-to-day as well as major decisions in matters of policy,
18management, and operations. Control shall be exemplified by
19possessing the requisite knowledge and expertise to run the
20particular business, and control shall not include simple
21majority or absentee ownership.
22    "Qualified service-disabled service disabled veteran"
23means a veteran who has been found to have 10% or more a
24service-connected disability by the United States Department
25of Veterans Affairs or the United States Department of Defense.
26    "Qualified service-disabled veteran-owned small business"

 

 

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1or "SDVOSB" means a small business (i) that is at least 51%
2owned by one or more qualified service-disabled veterans living
3in Illinois or, in the case of a corporation, at least 51% of
4the stock of which is owned by one or more qualified
5service-disabled veterans living in Illinois; (ii) that has its
6home office in Illinois; and (iii) for which items (i) and (ii)
7are factually verified annually by the Department of Central
8Management Services.
9    "Qualified veteran-owned small business" or "VOSB" means a
10small business (i) that is at least 51% owned by one or more
11qualified veterans living in Illinois or, in the case of a
12corporation, at least 51% of the stock of which is owned by one
13or more qualified veterans living in Illinois; (ii) that has
14its home office in Illinois; and (iii) for which items (i) and
15(ii) are factually verified annually by the Department of
16Central Management Services.
17    "Qualified disabled veteran-owned business" means a
18business entity that is at least 51% owned by one or more
19qualified disabled veterans, or in the case of a corporation,
20at least 51% of the stock of which is owned by one or more
21qualified disabled veterans; and the management and daily
22business operations of which are controlled by one or more of
23the qualified disabled veterans who own it.
24    "Service-connected disability" means a disability incurred
25in the line of duty in the active military, naval, or air
26service as described in 38 U.S.C. 101(16).

 

 

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1    "Small business" means a business that has annual gross
2sales of less than $75,000,000 as evidenced by the federal
3income tax return of the business. A firm with gross sales in
4excess of this cap may apply to the Department of Central
5Management Services for certification for a particular
6contract if the firm can demonstrate that the contract would
7have significant impact on SDVOSB or VOSB as suppliers or
8subcontractors or in employment of veterans or
9service-disabled veterans.
10    "State agency" has the same meaning as in Section 2 of the
11Business Enterprise for Minorities, Females, and Persons with
12Disabilities Act.
13    "Time of hostilities with a foreign country" means any
14period of time in the past, present, or future during which a
15declaration of war by the United States Congress has been or is
16in effect or during which an emergency condition has been or is
17in effect that is recognized by the issuance of a Presidential
18proclamation or a Presidential executive order and in which the
19armed forces expeditionary medal or other campaign service
20medals are awarded according to Presidential executive order.
21    "Veteran" means a person who (i) has been a member of the
22armed forces of the United States or, while a citizen of the
23United States, was a member of the armed forces of allies of
24the United States in time of hostilities with a foreign country
25and (ii) has served under one or more of the following
26conditions: (a) the veteran served a total of at least 6

 

 

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1months; (b) the veteran served for the duration of hostilities
2regardless of the length of the engagement; (c) the veteran was
3discharged on the basis of hardship; or (d) the veteran was
4released from active duty because of a service connected
5disability and was discharged under honorable conditions.
6served in the active military, naval, or air service and who
7was discharged or released from his or her service under
8conditions other than dishonorable.
9    (f) Certification program. The Illinois Department of
10Veterans' Affairs and the Department of Central Management
11Services Business Enterprise Program shall work together to
12devise a certification procedure to assure that businesses
13taking advantage of this Section Act are legitimately
14classified as qualified service-disabled service disabled
15veteran-owned small businesses or qualified veteran-owned
16small businesses.
17    (g) Penalties.
18        (1) Administrative penalties. The Department of
19    Central Management Services shall suspend any person who
20    commits a violation of Section 17-10.3 or subsection (d) of
21    Section 33E-6 of the Criminal Code of 1961 relating to this
22    Section from bidding on, or participating as a contractor,
23    subcontractor, or supplier in, any State contract or
24    project for a period of not less than 3 years, and, if the
25    person is certified as a service-disabled veteran-owned
26    small business or a veteran-owned small business, then the

 

 

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1    Department shall revoke the business's certification for a
2    period of not less than 3 years. An additional or
3    subsequent violation shall extend the periods of
4    suspension and revocation for a period of not less than 5
5    years. The suspension and revocation shall apply to the
6    principals of the business and any subsequent business
7    formed or financed by, or affiliated with, those
8    principals.
9        (2) Reports of violations. Each State agency shall
10    report any alleged violation of Section 17-10.3 or
11    subsection (d) of Section 33E-6 of the Criminal Code of
12    1961 relating to this Section to the Department of Central
13    Management Services. The Department of Central Management
14    Services shall subsequently report all such alleged
15    violations to the Attorney General, who shall determine
16    whether to bring a civil action against any person for the
17    violation.
18        (3) List of suspended persons. The Department of
19    Central Management Services shall monitor the status of all
20    reported violations of Section 17-10.3 or subsection (d) of
21    Section 33E-6 of the Criminal Code of 1961 relating to this
22    Section and shall maintain and make available to all State
23    agencies a central listing of all persons that committed
24    violations resulting in suspension.
25        (4) Use of suspended persons. During the period of a
26    person's suspension under paragraph (1) of this

 

 

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1    subsection, a State agency shall not enter into any
2    contract with that person or with any contractor using the
3    services of that person as a subcontractor.
4        (5) Duty to check list. Each State agency shall check
5    the central listing provided by the Department of Central
6    Management Services under paragraph (3) of this subsection
7    to verify that a person being awarded a contract by that
8    State agency, or to be used as a subcontractor or supplier
9    on a contract being awarded by that State agency, is not
10    under suspension pursuant to paragraph (1) of this
11    subsection.
12(Source: P.A. 96-96, eff. 1-1-10.)
 
13    Section 10. The Criminal Code of 1961 is amended by
14changing Sections 17-10.3, 33E-2, and 33E-6 as follows:
 
15    (720 ILCS 5/17-10.3)
16    (This Section may contain text from a Public Act with a
17delayed effective date)
18    Sec. 17-10.3. Deception relating to certification of
19disadvantaged business enterprises.
20    (a) Fraudulently obtaining or retaining certification. A
21person who, in the course of business, fraudulently obtains or
22retains certification as a minority owned business, or female
23owned business, service-disabled veteran-owned small business,
24or veteran-owned small business commits a Class 2 felony.

 

 

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1    (b) Willfully making a false statement. A person who, in
2the course of business, willfully makes a false statement
3whether by affidavit, report or other representation, to an
4official or employee of a State agency or the Minority and
5Female Business Enterprise Council for the purpose of
6influencing the certification or denial of certification of any
7business entity as a minority owned business, or female owned
8business, service-disabled veteran-owned small business, or
9veteran-owned small business commits a Class 2 felony.
10    (c) Willfully obstructing or impeding an official or
11employee of any agency in his or her investigation. Any person
12who, in the course of business, willfully obstructs or impedes
13an official or employee of any State agency or the Minority and
14Female Business Enterprise Council who is investigating the
15qualifications of a business entity which has requested
16certification as a minority owned business, or a female owned
17business, service-disabled veteran-owned small business, or
18veteran-owned small business commits a Class 2 felony.
19    (d) Fraudulently obtaining public moneys reserved for
20disadvantaged business enterprises. Any person who, in the
21course of business, fraudulently obtains public moneys
22reserved for, or allocated or available to, minority owned
23businesses, or female owned businesses, service-disabled
24veteran-owned small businesses, or veteran-owned small
25businesses commits a Class 2 felony.
26    (e) Definitions. As used in this Article, "minority owned

 

 

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1business", "female owned business", "State agency" with
2respect to minority owned businesses and female owned
3businesses, and "certification" with respect to minority owned
4businesses and female owned businesses shall have the meanings
5ascribed to them in Section 2 of the Business Enterprise for
6Minorities, Females, and Persons with Disabilities Act. As used
7in this Article, "service-disabled veteran-owned small
8business", "veteran-owned small business", "State agency" with
9respect to service-disabled veteran-owned small businesses and
10veteran-owned small businesses, and "certification" with
11respect to service-disabled veteran-owned small businesses and
12veteran-owned small businesses have the same meanings as in
13Section 45-57 of the Illinois Procurement Code.
14(Source: P.A. 96-1551, eff. 7-1-11.)
 
15    (720 ILCS 5/33E-2)  (from Ch. 38, par. 33E-2)
16    Sec. 33E-2. Definitions. In this Act:
17    (a) "Public contract" means any contract for goods,
18services or construction let to any person with or without bid
19by any unit of State or local government.
20    (b) "Unit of State or local government" means the State,
21any unit of state government or agency thereof, any county or
22municipal government or committee or agency thereof, or any
23other entity which is funded by or expends tax dollars or the
24proceeds of publicly guaranteed bonds.
25    (c) "Change order" means a change in a contract term other

 

 

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1than as specifically provided for in the contract which
2authorizes or necessitates any increase or decrease in the cost
3of the contract or the time to completion.
4    (d) "Person" means any individual, firm, partnership,
5corporation, joint venture or other entity, but does not
6include a unit of State or local government.
7    (e) "Person employed by any unit of State or local
8government" means any employee of a unit of State or local
9government and any person defined in subsection (d) who is
10authorized by such unit of State or local government to act on
11its behalf in relation to any public contract.
12    (f) "Sheltered market" has the meaning ascribed to it in
13Section 8b of the Business Enterprise for Minorities, Females,
14and Persons with Disabilities Act; except that, with respect to
15State contracts set aside for award to service-disabled
16veteran-owned small businesses and veteran-owned small
17businesses pursuant to Section 45-57 of the Illinois
18Procurement Code, "sheltered market" means procurements
19pursuant to that Section.
20    (g) "Kickback" means any money, fee, commission, credit,
21gift, gratuity, thing of value, or compensation of any kind
22which is provided, directly or indirectly, to any prime
23contractor, prime contractor employee, subcontractor, or
24subcontractor employee for the purpose of improperly obtaining
25or rewarding favorable treatment in connection with a prime
26contract or in connection with a subcontract relating to a

 

 

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1prime contract.
2    (h) "Prime contractor" means any person who has entered
3into a public contract.
4    (i) "Prime contractor employee" means any officer,
5partner, employee, or agent of a prime contractor.
6    (i-5) "Stringing" means knowingly structuring a contract
7or job order to avoid the contract or job order being subject
8to competitive bidding requirements.
9    (j) "Subcontract" means a contract or contractual action
10entered into by a prime contractor or subcontractor for the
11purpose of obtaining goods or services of any kind under a
12prime contract.
13    (k) "Subcontractor" (1) means any person, other than the
14prime contractor, who offers to furnish or furnishes any goods
15or services of any kind under a prime contract or a subcontract
16entered into in connection with such prime contract; and (2)
17includes any person who offers to furnish or furnishes goods or
18services to the prime contractor or a higher tier
19subcontractor.
20    (l) "Subcontractor employee" means any officer, partner,
21employee, or agent of a subcontractor.
22(Source: P.A. 92-16, eff. 6-28-01.)
 
23    (720 ILCS 5/33E-6)  (from Ch. 38, par. 33E-6)
24    Sec. 33E-6. Interference with contract submission and
25award by public official. (a) Any person who is an official of

 

 

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1or employed by any unit of State or local government who
2knowingly conveys, either directly or indirectly, outside of
3the publicly available official invitation to bid, pre-bid
4conference, solicitation for contracts procedure or such
5procedure used in any sheltered market procurement adopted
6pursuant to law or ordinance by that unit of government, to any
7person any information concerning the specifications for such
8contract or the identity of any particular potential
9subcontractors, when inclusion of such information concerning
10the specifications or contractors in the bid or offer would
11influence the likelihood of acceptance of such bid or offer,
12commits a Class 4 felony. It shall not constitute a violation
13of this subsection to convey information intended to clarify
14plans or specifications regarding a public contract where such
15disclosure of information is also made generally available to
16the public.
17    (b) Any person who is an official of or employed by any
18unit of State or local government who, either directly or
19indirectly, knowingly informs a bidder or offeror that the bid
20or offer will be accepted or executed only if specified
21individuals are included as subcontractors commits a Class 3
22felony.
23    (c) It shall not constitute a violation of subsection (a)
24of this Section where any person who is an official of or
25employed by any unit of State or local government follows
26procedures established (i) by federal, State or local minority

 

 

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1or female owned business enterprise programs or (ii) pursuant
2to Section 45-57 of the Illinois Procurement Code.
3    (d) Any bidder or offeror who is the recipient of
4communications from the unit of government which he reasonably
5believes to be proscribed by subsections (a) or (b), and fails
6to inform either the Attorney General or the State's Attorney
7for the county in which the unit of government is located,
8commits a Class A misdemeanor.
9    (e) Any public official who knowingly awards a contract
10based on criteria which were not publicly disseminated via the
11invitation to bid, when such invitation to bid is required by
12law or ordinance, the pre-bid conference, or any solicitation
13for contracts procedure or such procedure used in any sheltered
14market procurement procedure adopted pursuant to statute or
15ordinance, commits a Class 3 felony.
16    (f) It shall not constitute a violation of subsection (a)
17for any person who is an official of or employed by any unit of
18State or local government to provide to any person a copy of
19the transcript or other summary of any pre-bid conference where
20such transcript or summary is also made generally available to
21the public.
22(Source: P.A. 86-150.)
 
23    Section 99. Effective date. This Act takes effect July 1,
242011.".