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Public Act 095-0971


 

Public Act 0971 95TH GENERAL ASSEMBLY



 


 
Public Act 095-0971
 
HB0824 Enrolled LRB095 10469 RCE 30684 b

    AN ACT concerning State government.
 
    Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
 
    Section 5. The Election Code is amended by adding Section
9-35 as follows:
 
    (10 ILCS 5/9-35 new)
    Sec. 9-35. Registration of business entities.
    (a) This Section governs the procedures for the
registration required under Section 20-160 of the Illinois
Procurement Code.
    For the purposes of this Section, the terms "officeholder",
"State contract", "business entity", "State agency",
"affiliated entity", and "affiliated person" have the meanings
ascribed to those terms in Section 50-37 of the Illinois
Procurement Code.
    (b) Registration under Section 20-160 of the Illinois
Procurement Code, and any changes to that registration, must be
made electronically. The State Board of Elections by rule shall
provide for electronic registration, which must contain
substantially the following:
        (1) The name and address of the business entity.
        (2) The name and address of any affiliated entity of
    the business entity, including a description of the
    affiliation.
        (3) The name and address of any affiliated person of
    the business entity, including a description of the
    affiliation.
    (c) The Board shall provide a certificate of registration
to the business entity. The certificate shall be electronic and
accessible to the business entity through the State Board of
Elections' website and protected by a password.
    (d) Any business entity required to register under Section
20-160 of the Illinois Procurement Code shall provide a copy of
the registration certificate, by first class mail or hand
delivery within 10 days after registration, to each affiliated
entity or affiliated person whose identity is required to be
disclosed. Failure to provide notice to an affiliated entity or
affiliated person is a business offense for which the business
entity is subject to a fine not to exceed $1,001.
    (e) In addition to any penalty under Section 20-160 of the
Illinois Procurement Code, intentional, willful, or material
failure to disclose information required for registration is
subject to a civil penalty imposed by the State Board of
Elections. The State Board shall impose a civil penalty of
$1,000 per business day for failure to update a registration.
    (f) Any business entity required to register under Section
20-160 of the Illinois Procurement Code shall notify any
political committee to which it makes a contribution, at the
time of the contribution, that the business entity is
registered with the State Board of Elections under Section
20-160 of the Illinois Procurement Code. Any affiliated entity
or affiliated person of a business entity required to register
under Section 20-160 of the Illinois Procurement Code shall
notify any political committee to which it makes a contribution
that it is affiliated with a business entity registered with
the State Board of Elections under Section 20-160 of the
Illinois Procurement Code.
    (g) The State Board of Elections on its official website
shall have a searchable database containing (i) all information
required to be submitted to the Board under Section 20-160 of
the Illinois Procurement Code and (ii) all reports filed under
this Article with the State Board of Elections by all political
committees. For the purposes of databases maintained by the
State Board of Elections, "searchable" means able to search by
"political committee", as defined in this Article, and by
"officeholder", "State agency", "business entity", "affiliated
entity", and "affiliated person". The Board shall not place the
name of a minor child on the website. However, the Board shall
provide a link to all contributions made by anyone reporting
the same residential address as any affiliated person. In
addition, the State Board of Elections on its official website
shall provide an electronic connection to any searchable
database of State contracts maintained by the Comptroller,
searchable by business entity.
    (h) The State Board of Elections shall have rulemaking
authority to implement this Section.
 
    Section 10. The Illinois Procurement Code is amended by
adding Sections 20-160 and 50-37 as follows:
 
    (30 ILCS 500/20-160 new)
    Sec. 20-160. Business entities; certification;
registration with the State Board of Elections.
    (a) For purposes of this Section, the terms "business
entity", "contract", "State contract", "contract with a State
agency", "State agency", "affiliated entity", and "affiliated
person" have the meanings ascribed to those terms in Section
50-37.
    (b) Every bid submitted to and every contract executed by
the State on or after the effective date of this amendatory Act
of the 95th General Assembly shall contain (1) a certification
by the bidder or contractor that either (i) the bidder or
contractor is not required to register as a business entity
with the State Board of Elections pursuant to this Section or
(ii) the bidder or contractor has registered as a business
entity with the State Board of Elections and acknowledges a
continuing duty to update the registration and (2) a statement
that the contract is voidable under Section 50-60 for the
bidder's or contractor's failure to comply with this Section.
    (c) Within 30 days after the effective date of this
amendatory Act of the 95th General Assembly, each business
entity (i) whose aggregate bids and proposals on State
contracts annually total more than $50,000, (ii) whose
aggregate bids and proposals on State contracts combined with
the business entity's aggregate annual total value of State
contracts exceed $50,000, or (iii) whose contracts with State
agencies, in the aggregate, annually total more than $50,000
shall register with the State Board of Elections in accordance
with Section 9-35 of the Election Code. A business entity
required to register under this subsection shall submit a copy
of the certificate of registration to the applicable chief
procurement officer within 90 days after the effective date of
this amendatory Act of the 95th General Assembly. A business
entity required to register under this subsection due to item
(i) or (ii) has a continuing duty to ensure that the
registration is accurate during the period beginning on the
date of registration and ending on the day after the date the
contract is awarded; any change in information must be reported
to the State Board of Elections within 2 business days
following such change. A business entity required to register
under this subsection due to item (iii) has a continuing duty
to ensure that the registration is accurate in accordance with
subsection (f).
    (d) Any business entity, not required under subsection (c)
to register within 30 days after the effective date of this
amendatory Act of the 95th General Assembly, whose aggregate
bids and proposals on State contracts annually total more than
$50,000, or whose aggregate bids and proposals on State
contracts combined with the business entity's aggregate annual
total value of State contracts exceed $50,000, shall register
with the State Board of Elections in accordance with Section
9-35 of the Election Code prior to submitting to a State agency
the bid or proposal whose value causes the business entity to
fall within the monetary description of this subsection. A
business entity required to register under this subsection has
a continuing duty to ensure that the registration is accurate
during the period beginning on the date of registration and
ending on the day after the date the contract is awarded. Any
change in information must be reported to the State Board of
Elections within 2 business days following such change.
    (e) A business entity whose contracts with State agencies,
in the aggregate, annually total more than $50,000 must
maintain its registration under this Section and has a
continuing duty to ensure that the registration is accurate 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. Any change in information shall be
reported to the State Board of Elections within 10 days
following such change; however, if a business entity required
to register under this subsection has a pending bid or
proposal, any change in information shall be reported to the
State Board of Elections within 2 business days.
    (f) A business entity's continuing duty under this Section
to ensure the accuracy of its registration includes the
requirement that the business entity notify the State Board of
Elections of any change in information, including but not
limited to changes of affiliated entities or affiliated
persons.
    (g) A copy of a certificate of registration must accompany
any bid or proposal for a contract with a State agency by a
business entity required to register under this Section. A
chief procurement officer shall not accept a bid or proposal
unless the certificate is submitted to the agency with the bid
or proposal.
    (h) A registration, and any changes to a registration, must
include the business entity's verification of accuracy and
subjects the business entity to the penalties of the laws of
this State for perjury.
    In addition to any penalty under Section 9-35 of the
Election Code, intentional, willful, or material failure to
disclose information required for registration shall render
the contract, bid, proposal, or other procurement relationship
voidable by the chief procurement officer if he or she deems it
to be in the best interest of the State of Illinois.
    (i) This Section applies regardless of the method of source
selection used in awarding the contract.
 
    (30 ILCS 500/50-37 new)
    Sec. 50-37. Prohibition of political contributions.
    (a) As used in this Section:
        The terms "contract", "State contract", and "contract
    with a State agency" each mean any contract, as defined in
    this Code, between a business entity and a State agency let
    or awarded pursuant to this Code. The terms "contract",
    "State contract", and "contract with a State agency" do not
    include cost reimbursement contracts; purchase of care
    agreements as defined in Section 1-15.68 of this Code;
    grants, including but are not limited to grants for job
    training or transportation; and grants, loans, or tax
    credit agreements for economic development purposes.
        "Contribution" means a contribution as defined in
    Section 9-1.4 of the Election Code.
        "Declared candidate" means a person who has filed a
    statement of candidacy and petition for nomination or
    election in the principal office of the State Board of
    Elections.
        "State agency" means and includes all boards,
    commissions, agencies, institutions, authorities, and
    bodies politic and corporate of the State, created by or in
    accordance with the Illinois Constitution or State
    statute, of the executive branch of State government and
    does include colleges, universities, public employee
    retirement systems, and institutions under the
    jurisdiction of the governing boards of the University of
    Illinois, Southern Illinois University, Illinois State
    University, Eastern Illinois University, Northern Illinois
    University, Western Illinois University, Chicago State
    University, Governors State University, Northeastern
    Illinois University, and the Illinois Board of Higher
    Education.
        "Officeholder" means the Governor, Lieutenant
    Governor, Attorney General, Secretary of State,
    Comptroller, or Treasurer. The Governor shall be
    considered the officeholder responsible for awarding all
    contracts by all officers and employees of, and vendors and
    others doing business with, executive branch State
    agencies under the jurisdiction of the Executive Ethics
    Commission and not within the jurisdiction of the Attorney
    General, the Secretary of State, the Comptroller, or the
    Treasurer.
        "Sponsoring entity" means a sponsoring entity as
    defined in Section 9-3 of the Election Code.
        "Affiliated person" means (i) any person with any
    ownership interest or distributive share of the bidding or
    contracting business entity in excess of 7.5%, (ii)
    executive employees of the bidding or contracting business
    entity, and (iii) the spouse and minor children of any such
    persons.
        "Affiliated entity" means (i) any subsidiary of the
    bidding or contracting business entity, (ii) any member of
    the same unitary business group, (iii) any organization
    recognized by the United States Internal Revenue Service as
    a tax-exempt organization described in Section 501(c) of
    the Internal Revenue Code of 1986 (or any successor
    provision of federal tax law) established by the bidding or
    contracting business entity, any affiliated entity of that
    business entity, or any affiliated person of that business
    entity, or (iv) any political committee for which the
    bidding or contracting business entity, or any 501(c)
    organization described in item (iii) related to that
    business entity, is the sponsoring entity.
        "Business entity" means any entity doing business for
    profit, whether organized as a corporation, partnership,
    sole proprietorship, limited liability company or
    partnership, or otherwise.
        "Executive employee" means the President, Chairman,
    Chief Executive Officer, or other employee with executive
    decision-making authority over the long-term and
    day-to-day affairs of the entity employing the employee, or
    an employee whose compensation is determined directly, in
    whole or in part, by the award or payment of contracts by a
    State agency to the entity employing the employee.
    (b) Any business entity whose contracts with State
agencies, in the aggregate, annually 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
proposals on State contracts total more than $50,000, or whose
aggregate pending bids and proposals on State contracts
combined with the business entity's aggregate annual 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 proposal during the
period beginning on the date the invitation for bids or request
for proposals is issued and ending on the day after the date
the contract is awarded.
    (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 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.
 
    Section 97. Severability. If the provisions of this Act or
its application to any person or circumstance is held invalid,
the invalidity of that provision or application does not affect
the other provisions or applications of this Act that can be
given effect without the invalid provision or application.

Effective Date: 1/1/2009