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Full Text of HB1444  97th General Assembly

HB1444enr 97TH GENERAL ASSEMBLY

  
  
  

 


 
HB1444 EnrolledLRB097 06571 PJG 46656 b

1    AN ACT concerning finance.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Illinois Procurement Code is amended by
5changing Section 50-35 as follows:
 
6    (30 ILCS 500/50-35)
7    Sec. 50-35. Financial disclosure and potential conflicts
8of interest.
9    (a) All offers from responsive bidders or offerors with an
10annual value of more than $25,000, and all subcontracts
11identified as provided by Section 20-120 of this Code, shall be
12accompanied by disclosure of the financial interests of the
13contractor, bidder, or proposer and each subcontractor to be
14used. The financial disclosure of each successful bidder or
15offeror and its subcontractors shall be incorporated as a
16material term of the contract and shall become part of the
17publicly available contract or procurement file maintained by
18the appropriate chief procurement officer. Each disclosure
19under this Section and Section 50-34 shall be signed and made
20under penalty of perjury by an authorized officer or employee
21on behalf of the bidder or offeror, and must be filed with the
22Procurement Policy Board.
23    (b) Disclosure shall include any ownership or distributive

 

 

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1income share that is in excess of 5%, or an amount greater than
260% of the annual salary of the Governor, of the disclosing
3entity or its parent entity, whichever is less, unless the
4contractor, bidder, or subcontractor (i) is a publicly traded
5entity subject to Federal 10K reporting, in which case it may
6submit its 10K disclosure in place of the prescribed
7disclosure, or (ii) is a privately held entity that is exempt
8from Federal 10k reporting but has more than 200 400
9shareholders, in which case it may submit the information that
10Federal 10k reporting companies are required to report under 17
11CFR 229.401 and list the names of any person or entity holding
12any ownership share that is in excess of 5% in place of the
13prescribed disclosure. The form of disclosure shall be
14prescribed by the applicable chief procurement officer and must
15include at least the names, addresses, and dollar or
16proportionate share of ownership of each person identified in
17this Section, their instrument of ownership or beneficial
18relationship, and notice of any potential conflict of interest
19resulting from the current ownership or beneficial
20relationship of each person identified in this Section having
21in addition any of the following relationships:
22        (1) State employment, currently or in the previous 3
23    years, including contractual employment of services.
24        (2) State employment of spouse, father, mother, son, or
25    daughter, including contractual employment for services in
26    the previous 2 years.

 

 

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1        (3) Elective status; the holding of elective office of
2    the State of Illinois, the government of the United States,
3    any unit of local government authorized by the Constitution
4    of the State of Illinois or the statutes of the State of
5    Illinois currently or in the previous 3 years.
6        (4) Relationship to anyone holding elective office
7    currently or in the previous 2 years; spouse, father,
8    mother, son, or daughter.
9        (5) Appointive office; the holding of any appointive
10    government office of the State of Illinois, the United
11    States of America, or any unit of local government
12    authorized by the Constitution of the State of Illinois or
13    the statutes of the State of Illinois, which office
14    entitles the holder to compensation in excess of expenses
15    incurred in the discharge of that office currently or in
16    the previous 3 years.
17        (6) Relationship to anyone holding appointive office
18    currently or in the previous 2 years; spouse, father,
19    mother, son, or daughter.
20        (7) Employment, currently or in the previous 3 years,
21    as or by any registered lobbyist of the State government.
22        (8) Relationship to anyone who is or was a registered
23    lobbyist in the previous 2 years; spouse, father, mother,
24    son, or daughter.
25        (9) Compensated employment, currently or in the
26    previous 3 years, by any registered election or re-election

 

 

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1    committee registered with the Secretary of State or any
2    county clerk in the State of Illinois, or any political
3    action committee registered with either the Secretary of
4    State or the Federal Board of Elections.
5        (10) Relationship to anyone; spouse, father, mother,
6    son, or daughter; who is or was a compensated employee in
7    the last 2 years of any registered election or re-election
8    committee registered with the Secretary of State or any
9    county clerk in the State of Illinois, or any political
10    action committee registered with either the Secretary of
11    State or the Federal Board of Elections.
12    (b-1) The disclosure required under this Section must also
13include the name and address of each lobbyist required to
14register under the Lobbyist Registration Act and other agent of
15the bidder or offeror who is not identified under subsections
16(a) and (b) and who has communicated, is communicating, or may
17communicate with any State officer or employee concerning the
18bid or offer. The disclosure under this subsection is a
19continuing obligation and must be promptly supplemented for
20accuracy throughout the process and throughout the term of the
21contract if the bid or offer is successful.
22    (b-2) The disclosure required under this Section must also
23include, for each of the persons identified in subsection (b)
24or (b-1), each of the following that occurred within the
25previous 10 years: debarment from contracting with any
26governmental entity; professional licensure discipline;

 

 

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1bankruptcies; adverse civil judgments and administrative
2findings; and criminal felony convictions. The disclosure
3under this subsection is a continuing obligation and must be
4promptly supplemented for accuracy throughout the process and
5throughout the term of the contract if the bid or offer is
6successful.
7    (c) The disclosure in subsection (b) is not intended to
8prohibit or prevent any contract. The disclosure is meant to
9fully and publicly disclose any potential conflict to the chief
10procurement officers, State purchasing officers, their
11designees, and executive officers so they may adequately
12discharge their duty to protect the State.
13    (d) When a potential for a conflict of interest is
14identified, discovered, or reasonably suspected, the chief
15procurement officer or State procurement officer shall send the
16contract to the Procurement Policy Board. The Board shall
17recommend, in writing, whether to allow or void the contract,
18bid, offer, or subcontract weighing the best interest of the
19State of Illinois. All recommendations shall be submitted to
20the chief procurement officer. The chief procurement officer
21must hold a public hearing if the Procurement Policy Board
22makes a recommendation to (i) void a contract or (ii) void a
23bid or offer and the chief procurement officer selected or
24intends to award the contract to the bidder or offeror. A chief
25procurement officer is prohibited from awarding a contract
26before a hearing if the Board recommendation does not support a

 

 

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1bid or offer. The recommendation and proceedings of any
2hearing, if applicable, shall become part of the contract, bid,
3or proposal file and shall be available to the public.
4    (e) These thresholds and disclosure do not relieve the
5chief procurement officer, the State purchasing officer, or
6their designees from reasonable care and diligence for any
7contract, bid, offer, or proposal. The chief procurement
8officer, the State purchasing officer, or their designees shall
9be responsible for using any reasonably known and publicly
10available information to discover any undisclosed potential
11conflict of interest and act to protect the best interest of
12the State of Illinois.
13    (f) Inadvertent or accidental failure to fully disclose
14shall render the contract, bid, proposal, subcontract, or
15relationship voidable by the chief procurement officer if he or
16she deems it in the best interest of the State of Illinois and,
17at his or her discretion, may be cause for barring from future
18contracts, bids, proposals, subcontracts, or relationships
19with the State for a period of up to 2 years.
20    (g) Intentional, willful, or material failure to disclose
21shall render the contract, bid, proposal, subcontract, or
22relationship voidable by the chief procurement officer if he or
23she deems it in the best interest of the State of Illinois and
24shall result in debarment from future contracts, bids,
25proposals, subcontracts, or relationships for a period of not
26less than 2 years and not more than 10 years. Reinstatement

 

 

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1after 2 years and before 10 years must be reviewed and
2commented on in writing by the Governor of the State of
3Illinois, or by an executive ethics board or commission he or
4she might designate. The comment shall be returned to the
5responsible chief procurement officer who must rule in writing
6whether and when to reinstate.
7    (h) In addition, all disclosures shall note any other
8current or pending contracts, proposals, subcontracts, leases,
9or other ongoing procurement relationships the bidding,
10proposing, offering, or subcontracting entity has with any
11other unit of State government and shall clearly identify the
12unit and the contract, proposal, lease, or other relationship.
13    (i) The contractor or bidder has a continuing obligation to
14supplement the disclosure required by this Section throughout
15the bidding process or during the term of any contract.
16(Source: P.A. 95-331, eff. 8-21-07; 96-795, eff. 7-1-10 (see
17Section 5 of P.A. 96-793 for the effective date of changes made
18by P.A. 96-795); 96-920, eff. 7-1-10.)
 
19    Section 99. Effective date. This Act takes effect upon
20becoming law.