(30 ILCS 500/50-35) Sec. 50-35. Financial disclosure and potential conflicts of interest. (a) All bids and offers from responsive bidders, offerors, vendors, or contractors with an annual value that exceeds the small purchase threshold established under subsection (a) of Section 20-20 of this Code, and all submissions to a vendor portal, shall be accompanied by disclosure of the financial
interests of the bidder, offeror, potential contractor, or contractor and each subcontractor to be used. In addition, all subcontracts identified as provided by Section 20-120 of this Code with an annual value that exceeds the small purchase threshold established under subsection (a) of Section 20-20 of this Code shall be accompanied by disclosure of the financial
interests of each subcontractor. The financial disclosure of
each successful bidder, offeror, potential contractor, or contractor and its subcontractors shall be incorporated as a material term of the contract and shall become
part of the publicly available contract or procurement file
maintained by the appropriate chief procurement officer. Each disclosure under this Section shall be signed and made under penalty of perjury by an authorized officer or employee on behalf of the bidder, offeror, potential contractor, contractor, or subcontractor, and must be filed with the Procurement Policy Board and the Commission on Equity and Inclusion. (b) Disclosure 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 disclosing entity
or its parent entity, whichever is less, unless the bidder, offeror, potential contractor, contractor, or subcontractor
(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 100
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 individual identified in
this Section having in addition any of the following relationships: (1) State employment, currently or in the previous 3 | ||
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(2) State employment of spouse, father, mother, son, | ||
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(3) Elective status; the holding of elective office | ||
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(4) Relationship to anyone holding elective office | ||
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(5) Appointive office; the holding of any appointive | ||
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(6) Relationship to anyone holding appointive office | ||
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(7) Employment, currently or in the previous 3 years, | ||
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(8) Relationship to anyone who is or was a registered | ||
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(9) Compensated employment, currently or in the | ||
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(10) Relationship to anyone; spouse, father, mother, | ||
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(b-1) The disclosure required under this Section must also include the name and address of each lobbyist required to register under the Lobbyist Registration Act and other agent of the bidder, offeror, potential contractor, contractor, or subcontractor who is not identified under subsections (a) and (b) and who has communicated, is communicating, or may communicate with any State officer or employee concerning the bid or offer. The disclosure under this subsection is a continuing obligation and must be promptly supplemented for accuracy throughout the process and throughout the term of the contract if the bid or offer is successful. (b-2) The disclosure required under this Section must also include, for each of the persons identified in subsection (b) or (b-1), each of the following that occurred within the previous 10 years: suspension or debarment from contracting with any governmental entity; professional licensure discipline; bankruptcies; adverse civil judgments and administrative findings; and criminal felony convictions. The disclosure under this subsection is a continuing obligation and must be promptly supplemented for accuracy throughout the process and throughout the term of the contract if the bid or offer is successful. (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) When a potential for a conflict of interest is identified, discovered, or reasonably suspected, the chief procurement officer or State procurement officer shall send the contract to the Procurement Policy Board and the Commission on Equity and Inclusion. In accordance with the objectives of subsection (c), if the Procurement Policy Board or the Commission on Equity and Inclusion finds evidence of a potential conflict of interest not originally disclosed by the bidder, offeror, potential contractor, contractor, or subcontractor, the Board or the Commission on Equity and Inclusion shall provide written notice to the bidder, offeror, potential contractor, contractor, or subcontractor that is identified, discovered, or reasonably suspected of having a potential conflict of interest. The bidder, offeror, potential contractor, contractor, or subcontractor shall have 15 calendar days to respond in writing to the Board or the Commission on Equity and Inclusion, and a hearing before the Board or the Commission on Equity and Inclusion will be granted upon request by the bidder, offeror, potential contractor, contractor, or subcontractor, at a date and time to be determined by the Board or the Commission on Equity and Inclusion, but which in no event shall occur later than 15 calendar days after the date of the request. Upon consideration, the Board or the Commission on Equity and Inclusion shall recommend, in writing, whether to allow or void the contract, bid, offer, or subcontract weighing the best interest of the State of Illinois. All recommendations shall be submitted to the Executive Ethics Commission. Those recommendations made concerning conflicts identified in the course of a procurement for a public institution of higher education are, for procurements having a cumulative value under $5,000, valid and enforceable, for one calendar year after the initial recommendation was made, for all subsequent conflicts for that vendor with regard to the same public institution of higher education. The Executive Ethics Commission must hold a public hearing within 30 calendar days after receiving the Board's or the Commission on Equity and Inclusion's recommendation if the Procurement Policy Board or the Commission on Equity and Inclusion makes a recommendation to (i) void a contract or (ii) void a bid or offer and the chief procurement officer selected or intends to award the contract to the bidder, offeror, or potential contractor. A chief procurement officer is prohibited from awarding a contract before a hearing if the Board or the Commission on Equity and Inclusion recommendation does not support a bid or offer. The recommendation and proceedings of any hearing, if applicable, shall be available to the public. (e) These thresholds 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 submission to a vendor portal. 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, offer, proposal, subcontract, 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, offers, proposals, subcontracts, 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, offer, proposal, subcontract, 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, offers, proposals, subcontracts, 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, bids, offers, proposals, subcontracts, leases, or other ongoing procurement relationships the bidder, offeror, potential contractor, contractor, or subcontractor has with any other unit of State
government and shall clearly identify the unit and the contract, offer, proposal,
lease, or other relationship. (i) The bidder, offeror, potential contractor, or contractor has a continuing obligation to supplement the disclosure required by this Section throughout the bidding process during the term of any contract, and during the vendor portal registration process. (j) If a bid or offer is received from a responsive bidder, offeror, vendor, contractor, or subcontractor with an annual value of more than $100,000 and the bidder, offeror, vendor, contractor, or subcontractor has an active contract with that same entity and already has submitted their financial disclosures and potential conflicts of interest within the last 12 months, the bidder, offeror, vendor, contractor, or subcontractor may submit a signed affidavit attesting that the original submission of its financial disclosures and potential conflicts of interests has not been altered or changed. The form and content of the affidavit shall be prescribed by the applicable chief procurement officer. (Source: P.A. 101-657, eff. 1-1-22; 102-721, eff. 1-1-23; 102-1119, eff. 1-23-23.) |
(30 ILCS 500/50-36) Sec. 50-36. Disclosure of business in Iran. (a) As used in this Section:
"Business operations" means engaging in commerce
in any form in Iran, including, but not limited to,
acquiring, developing, maintaining, owning, selling,
possessing, leasing, or operating equipment, facilities,
personnel, products, services, personal property, real
property, or any other apparatus of business or commerce. "Company" means any sole proprietorship,
organization, association, corporation, partnership, joint
venture, limited partnership, limited liability partnership,
limited liability company, or other entity or business
association, including all wholly owned subsidiaries,
majority-owned subsidiaries, parent companies, or affiliates
of those entities or business associations, that exists for
the purpose of making profit. "Mineral-extraction activities" include exploring,
extracting, processing, transporting, or wholesale selling or
trading of elemental minerals or associated metal alloys or
oxides (ore), including gold, copper, chromium, chromite,
diamonds, iron, iron ore, silver, tungsten, uranium, and zinc. "Oil-related activities" include, but are not
limited to, owning rights to oil blocks; exporting,
extracting, producing, refining, processing, exploring for,
transporting, selling, or trading of oil; and constructing,
maintaining, or operating a pipeline, refinery, or other
oil-field infrastructure. The mere retail sale of gasoline and
related consumer products is not considered an oil-related
activity. "Petroleum resources" means petroleum, petroleum
byproducts, or natural gas. "Substantial action" means adopting, publicizing,
and implementing a formal plan to cease scrutinized business
operations within one year and to refrain from any such new
business operations. (b) Each bid or offer submitted for a State contract, other than a small purchase defined in Section 20-20, shall include a disclosure of whether or not the bidder, offeror, or any of its corporate parents or subsidiaries, within the 24 months before submission of the bid or offer had
business operations that involved contracts with or provision
of supplies or services to the Government of Iran, companies
in which the Government of Iran has any direct or indirect
equity share, consortiums or projects commissioned by the
Government of Iran, or companies involved in consortiums or
projects commissioned by the Government of Iran and: (1) more than 10% of the company's revenues produced | ||
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(2) the company has, on or after August 5, 1996, made | ||
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(c) A bid or offer that does not include the disclosure required by subsection (b) may be given a period after the bid or offer is submitted to cure non-disclosure. A chief procurement officer may consider the disclosure when evaluating the bid or offer or awarding the contract. (d) Each chief procurement officer shall provide the State Comptroller with the name of each entity disclosed under subsection (b) as doing business or having done business in Iran. The State Comptroller shall post that information on his or her official website.
(Source: P.A. 98-1076, eff. 1-1-15 .) |
(30 ILCS 500/50-37) Sec. 50-37. Prohibition of political contributions. (a) As used in this Section: The terms "contract", "State contract", and "contract | ||
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"Contribution" means a contribution as defined in | ||
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"Declared candidate" means a person who has filed a | ||
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"State agency" means and includes all boards, | ||
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"Officeholder" means the Governor, Lieutenant | ||
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"Sponsoring entity" means a sponsoring entity as | ||
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"Affiliated person" means (i) any person with any | ||
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"Affiliated entity" means (i) any corporate parent | ||
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"Business entity" means any entity doing business for | ||
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"Executive employee" means (i) the President, | ||
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(b) Any business entity whose contracts with State agencies, in the aggregate, total more than $50,000, and any affiliated entities or affiliated persons of such business entity, are prohibited from making any contributions to any political committees established to promote the candidacy of (i) the officeholder responsible for awarding the contracts or (ii) any other declared candidate for that office. This prohibition shall be effective for the duration of the term of office of the incumbent officeholder awarding the contracts or for a period of 2 years following the expiration or termination of the contracts, whichever is longer. (c) Any business entity whose aggregate pending bids and offers on State contracts total more than $50,000, or whose aggregate pending bids and offers on State contracts combined with the business entity's aggregate total value of State contracts exceed $50,000, and any affiliated entities or affiliated persons of such business entity, are prohibited from making any contributions to any political committee established to promote the candidacy of the officeholder responsible for awarding the contract on which the business entity has submitted a bid or offer during the period beginning on the date the invitation for bids, request for proposals, or any other procurement opportunity is issued and ending on the day after the date the contract is awarded. (c-5) For the purposes of the prohibitions under subsections (b) and (c) of this Section, (i) any contribution made to a political committee established to promote the candidacy of the Governor or a declared candidate for the office of Governor shall also be considered as having been made to a political committee established to promote the candidacy of the Lieutenant Governor, in the case of the Governor, or the declared candidate for Lieutenant Governor having filed a joint petition, or write-in declaration of intent, with the declared candidate for Governor, as applicable, and (ii) any contribution made to a political committee established to promote the candidacy of the Lieutenant Governor or a declared candidate for the office of Lieutenant Governor shall also be considered as having been made to a political committee established to promote the candidacy of the Governor, in the case of the Lieutenant Governor, or the declared candidate for Governor having filed a joint petition, or write-in declaration of intent, with the declared candidate for Lieutenant Governor, as applicable. (d) All contracts between State agencies and a business entity that violate subsection (b) or (c) shall be voidable under Section 50-60. If a business entity violates subsection (b) 3 or more times within a 36-month period, then all contracts between State agencies and that business entity shall be void, and that business entity shall not bid or respond to any invitation to bid or request for proposals from any State agency or otherwise enter into any contract with any State agency for 3 years from the date of the last violation. A notice of each violation and the penalty imposed shall be published in both the Procurement Bulletin and the Illinois Register. (e) Any political committee that has received a contribution in violation of subsection (b) or (c) shall pay an amount equal to the value of the contribution to the State no more than 30 calendar days after notice of the violation concerning the contribution appears in the Illinois Register. Payments received by the State pursuant to this subsection shall be deposited into the general revenue fund. (Source: P.A. 103-570, eff. 1-1-24.) |
(30 ILCS 500/50-38) Sec. 50-38. Lobbying restrictions. (a) A person or business that is let or awarded a contract is not entitled to receive any payment, compensation, or other remuneration from the State to compensate the person or business for any expenses related to travel, lodging, or meals that are paid by the person or business to any officer, agent, employee, consultant, independent contractor, director, partner, manager, or shareholder. (b) Any bidder, offeror, potential contractor, or contractor on a State contract that hires a person required to register under the Lobbyist Registration Act to assist in obtaining a contract shall (i) disclose all costs, fees, compensation, reimbursements, and other remunerations paid or to be paid to the lobbyist related to the contract, (ii) not bill or otherwise cause the State of Illinois to pay for any of the lobbyist's costs, fees, compensation, reimbursements, or other remuneration, and (iii) sign a verification certifying that none of the lobbyist's costs, fees, compensation, reimbursements, or other remuneration were billed to the State. This information, along with all supporting documents, shall be filed with the agency awarding the contract and with the Secretary of State. The chief procurement officer shall post this information, together with the contract award notice, in the online Procurement Bulletin. (c) Ban on contingency fee. No person or entity shall retain a person or entity required to register under the Lobbyist Registration Act to attempt to influence the outcome of a procurement decision made under this Code for compensation contingent in whole or in part upon the decision or procurement. Any person who violates this subsection is guilty of a business offense and shall be fined not more than $10,000. (Source: P.A. 98-1076, eff. 1-1-15 .) |
(30 ILCS 500/50-39) Sec. 50-39. Procurement communications reporting requirement. (a) Any written or oral communication received by a State employee who, by the nature of his or her duties, has the authority to participate personally and substantially in the decision to award a State contract and that imparts or requests material information or makes a material argument regarding potential action concerning an active procurement matter, including, but not limited to, an application, a contract, or a project, shall be reported to the Procurement Policy Board, and, with respect to the Illinois Power Agency, by the initiator of the communication, and may be reported also by the recipient. Any person communicating orally, in writing, electronically, or otherwise with the Director or any person employed by, or associated with, the Illinois Power Agency to impart, solicit, or transfer any information related to the content of any power procurement plan, the manner of conducting any power procurement process, the procurement of any power supply, or the method or structure of contracting with power suppliers must disclose to the Procurement Policy Board the full nature, content, and extent of any such communication in writing by submitting a report with the following information: (1) The names of any party to the communication. (2) The date on which the communication occurred. (3) The time at which the communication occurred. (4) The duration
of the communication. (5) The method (written, oral, etc.) of the | ||
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(6) A summary of the substantive content of the | ||
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These communications do not include the following: (i) statements by a person publicly made in a public forum; (ii) statements regarding matters of procedure and practice, such as format, the number of copies required, the manner of filing, and the status of a matter; (iii) statements made by a State employee of the agency to the agency head or other employees of that agency, to the employees of the Executive Ethics Commission, or to an employee of another State agency who, through the communication, is either (a) exercising his or her experience or expertise in the subject matter of the particular procurement in the normal course of business, for official purposes, and at the initiation of the purchasing agency or the appropriate State purchasing officer, or (b) exercising oversight, supervisory, or management authority over the procurement in the normal course of business and as part of official responsibilities; (iv) unsolicited communications providing general information about products, services, or industry best practices before those products or services become involved in a procurement matter; (v) communications received in response to procurement solicitations, including, but not limited to, vendor responses to a request for information, request for proposal, request for qualifications, invitation for bid, or a small purchase, sole source, or emergency solicitation, or questions and answers posted to the Illinois Procurement Bulletin to supplement the procurement action, provided that the communications are made in accordance with the instructions contained in the procurement solicitation, procedures, or guidelines; (vi) communications that are privileged, protected, or confidential under law; and (vii) communications that are part of a formal procurement process as set out by statute, rule, or the solicitation, guidelines, or procedures, including, but not limited to, the posting of procurement opportunities, the process for approving a procurement business case or its equivalent, fiscal approval, submission of bids, the finalizing of contract terms and conditions with an awardee or apparent awardee, and similar formal procurement processes. The provisions of this Section shall not apply to communications regarding the administration and implementation of an existing contract, except communications regarding change orders or the renewal or extension of a contract. The reporting requirement does not apply to any communication asking for clarification regarding a contract solicitation so long as there is no competitive advantage to the person or business and the question and answer, if material, are posted to the Illinois Procurement Bulletin as an addendum to the contract solicitation. (b) The report required by subsection (a) shall be submitted monthly and include at least the following: (i) the date and time of each communication; (ii) the identity of each person from whom the written or oral communication was received, the individual or entity represented by that person, and any action the person requested or recommended; (iii) the identity and job title of the person to whom each communication was made; (iv) if a response is made, the identity and job title of the person making each response; (v) a detailed summary of the points made by each person involved in the communication; (vi) the duration of the communication; (vii) the location or locations of all persons involved in the communication and, if the communication occurred by telephone, the telephone numbers for the callers and recipients of the communication; and (viii) any other pertinent information. No trade secrets or other proprietary or confidential information shall be included in any communication reported to the Procurement Policy Board. (c) Additionally, when an oral communication made by a person required to register under the Lobbyist Registration Act is received by a State employee that is covered under this Section, all individuals who initiate or participate in the oral communication shall submit a written report to that State employee that memorializes the communication and includes, but is not limited to, the items listed in subsection (b). (d) The Procurement Policy Board shall make each report submitted pursuant to this Section available on its website within 7 calendar days after its receipt of the report. The Procurement Policy Board may promulgate rules to ensure compliance with this Section. (e) The reporting requirements shall also be conveyed through ethics training under the State Officials and Employees Ethics Act. An employee who knowingly and intentionally violates this Section shall be subject to suspension or discharge. The Executive Ethics Commission shall promulgate rules, including emergency rules, to implement this Section. (f) This Section becomes operative on January 1, 2011. (g) For purposes of this Section: "Active procurement matter" means a procurement process beginning with requisition or determination of need by an agency and continuing through the publication of an award notice or other completion of a final procurement action, the resolution of any protests, and the expiration of any protest or Procurement Policy Board review period, if applicable. "Active procurement matter" also includes communications relating to change orders, renewals, or extensions. "Material information" means information that a reasonable person would deem important in determining his or her course of action and pertains to significant issues, including, but not limited to, price, quantity, and terms of payment or performance. "Material argument" means a communication that a reasonable person would believe was made for the purpose of influencing a decision relating to a procurement matter. "Material argument" does not include general information about products, services, or industry best practices or a response to a communication initiated by an employee of the State for the purposes of providing information to evaluate new products, trends, services, or technologies. (Source: P.A. 100-43, eff. 8-9-17.) |