101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020
SB1680

 

Introduced 2/15/2019, by Sen. Antonio Muņoz

 

SYNOPSIS AS INTRODUCED:
 
30 ILCS 500/45-57

    Amends the Illinois Procurement Code. Provides that each chief procurement officer has authority to designate as veteran small business set-asides a fair proportion of construction, supply, and service contracts for awards to qualified service-disabled veteran-owned small businesses or veteran-owned small businesses. Provides further requirements concerning veteran small business set-aside designations. Requires each chief procurement officer to report to the General Assembly (currently, Department of Central Management Services) on specified information concerning qualified service-disabled veteran-owned small businesses and veteran-owned small businesses, and requires that the number of bids or offers will be delineated between contracts that were designated as set-aside and those that were not designated as set-aside. Makes other changes.


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A BILL FOR

 

SB1680LRB101 09928 RJF 55030 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 45-57 as follows:
 
6    (30 ILCS 500/45-57)
7    Sec. 45-57. Veterans.
8    (a) Goal Set-aside goal. It is the goal of the State to
9promote and encourage the continued economic development of
10small businesses owned and controlled by qualified veterans and
11that qualified service-disabled veteran-owned small businesses
12(referred to as SDVOSB) and veteran-owned small businesses
13(referred to as VOSB) participate in the State's procurement
14process as both prime contractors and subcontractors. Not less
15than 3% of the total dollar amount of State contracts, as
16defined by the Director of Central Management Services, shall
17be established as a goal to be awarded to SDVOSB and VOSB. That
18portion of a contract under which the contractor subcontracts
19with a SDVOSB or VOSB may be counted toward the goal of this
20subsection. The Department of Central Management Services
21shall adopt rules to implement compliance with this subsection
22by all State agencies.
23    (a-5) Set-asides. Each chief procurement officer has

 

 

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1authority to designate as veteran small business set-asides a
2fair proportion of construction, supply, and service contracts
3for awards to qualified service-disabled veteran-owned small
4businesses or veteran-owned small businesses. Advertisements
5for bids or offers for such contracts shall specify designation
6as veteran small business set-asides. In awarding the
7contracts, only bids or offers from qualified service-disabled
8veteran-owned small businesses or veteran-owned small
9businesses shall be considered.
10        (1) A veteran small business set-aside designation may
11    be withdrawn by the purchasing agency when deemed in the
12    best interests of the State. Upon withdrawal, all bids or
13    offers shall be rejected, and the bidders or offerors shall
14    be notified of the reason for rejection. The contract shall
15    then be awarded in accordance with this Code without the
16    designation of veteran small business set-aside.
17        (2) Each chief procurement officer may adopt rules to
18    implement and administer the use of set-asides.
19    (b) Fiscal year reports. By each November 1, each chief
20procurement officer shall report to the General Assembly
21Department of Central Management Services on all of the
22following for the immediately preceding fiscal year, and by
23each March 1 the Department of Central Management Services
24shall compile and report that information to the General
25Assembly:
26        (1) The total number of VOSB, and the number of SDVOSB,

 

 

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1    who submitted bids or offers for contracts under this Code.
2    The number of bids or offers will be delineated between
3    contracts that were set-aside under subsection (a-5) and
4    those that were not set-aside.
5        (2) The total number of VOSB, and the number of SDVOSB,
6    who entered into contracts with the State under this Code
7    and the total value of those contracts. The number of
8    contracts and the value of contracts will be delineated
9    between contracts that were awarded as set-asides under
10    subsection (a-5) and those that were not set-aside.
11    The requirement for reporting to the General Assembly under
12this subsection (b) shall be satisfied by filing copies of the
13report as required by Section 3.1 of the General Assembly
14Organization Act.
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 veterans,
21and shall make recommendations to be included in the Department
22of Central Management Services' report to the General Assembly
23regarding continuation, increases, or decreases of the
24percentage goal. The recommendations shall be based upon the
25number of businesses that are owned by qualified veterans and
26on the continued need to encourage and promote businesses owned

 

 

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1by qualified 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 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    "Certification" means a determination made by the Illinois
14Department of Veterans' Affairs and the Department of Central
15Management Services that a business entity is a qualified
16service-disabled veteran-owned small business or a qualified
17veteran-owned small business for whatever purpose. A SDVOSB or
18VOSB owned and controlled by women, minorities, or persons with
19disabilities, as those terms are defined in Section 2 of the
20Business Enterprise for Minorities, Women, and Persons with
21Disabilities Act, may also select and designate whether that
22business is to be certified as a "women-owned business",
23"minority-owned business", or "business owned by a person with
24a disability", as defined in Section 2 of the Business
25Enterprise for Minorities, Women, and Persons with
26Disabilities Act.

 

 

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1    "Control" means the exclusive, ultimate, majority, or sole
2control of the business, including but not limited to capital
3investment and all other financial matters, property,
4acquisitions, contract negotiations, legal matters,
5officer-director-employee selection and comprehensive hiring,
6operation responsibilities, cost-control matters, income and
7dividend matters, financial transactions, and rights of other
8shareholders or joint partners. Control shall be real,
9substantial, and continuing, not pro forma. Control shall
10include the power to direct or cause the direction of the
11management and policies of the business and to make the
12day-to-day as well as major decisions in matters of policy,
13management, and operations. Control shall be exemplified by
14possessing the requisite knowledge and expertise to run the
15particular business, and control shall not include simple
16majority or absentee ownership.
17    "Qualified service-disabled veteran" means a veteran who
18has been found to have 10% or more service-connected disability
19by the United States Department of Veterans Affairs or the
20United States Department of Defense.
21    "Qualified service-disabled veteran-owned small business"
22or "SDVOSB" means a small business (i) that is at least 51%
23owned by one or more qualified service-disabled veterans living
24in Illinois or, in the case of a corporation, at least 51% of
25the stock of which is owned by one or more qualified
26service-disabled veterans living in Illinois; (ii) that has its

 

 

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1home office in Illinois; and (iii) for which items (i) and (ii)
2are factually verified annually by the Department of Central
3Management Services.
4    "Qualified veteran-owned small business" or "VOSB" means a
5small business (i) that is at least 51% owned by one or more
6qualified veterans living in Illinois or, in the case of a
7corporation, at least 51% of the stock of which is owned by one
8or more qualified veterans living in Illinois; (ii) that has
9its home office in Illinois; and (iii) for which items (i) and
10(ii) are factually verified annually by the Department of
11Central Management Services.
12    "Service-connected disability" means a disability incurred
13in the line of duty in the active military, naval, or air
14service as described in 38 U.S.C. 101(16).
15    "Small business" means a business that has annual gross
16sales of less than $75,000,000 as evidenced by the federal
17income tax return of the business. A firm with gross sales in
18excess of this cap may apply to the Department of Central
19Management Services for certification for a particular
20contract if the firm can demonstrate that the contract would
21have significant impact on SDVOSB or VOSB as suppliers or
22subcontractors or in employment of veterans or
23service-disabled veterans.
24    "State agency" has the meaning provided in Section 1-15.100
25of this Code.
26    "Time of hostilities with a foreign country" means any

 

 

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1period of time in the past, present, or future during which a
2declaration of war by the United States Congress has been or is
3in effect or during which an emergency condition has been or is
4in effect that is recognized by the issuance of a Presidential
5proclamation or a Presidential executive order and in which the
6armed forces expeditionary medal or other campaign service
7medals are awarded according to Presidential executive order.
8    "Veteran" means a person who (i) has been a member of the
9armed forces of the United States or, while a citizen of the
10United States, was a member of the armed forces of allies of
11the United States in time of hostilities with a foreign country
12and (ii) has served under one or more of the following
13conditions: (a) the veteran served a total of at least 6
14months; (b) the veteran served for the duration of hostilities
15regardless of the length of the engagement; (c) the veteran was
16discharged on the basis of hardship; or (d) the veteran was
17released from active duty because of a service connected
18disability and was discharged under honorable conditions.
19    (f) Certification program. The Illinois Department of
20Veterans' Affairs and the Department of Central Management
21Services shall work together to devise a certification
22procedure to assure that businesses taking advantage of this
23Section are legitimately classified as qualified
24service-disabled veteran-owned small businesses or qualified
25veteran-owned small businesses.
26    (g) Penalties.

 

 

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1        (1) Administrative penalties. The chief procurement
2    officers appointed pursuant to Section 10-20 shall suspend
3    any person who commits a violation of Section 17-10.3 or
4    subsection (d) of Section 33E-6 of the Criminal Code of
5    2012 relating to this Section from bidding on, or
6    participating as a contractor, subcontractor, or supplier
7    in, any State contract or project for a period of not less
8    than 3 years, and, if the person is certified as a
9    service-disabled veteran-owned small business or a
10    veteran-owned small business, then the Department shall
11    revoke the business's certification for a period of not
12    less than 3 years. An additional or subsequent violation
13    shall extend the periods of suspension and revocation for a
14    period of not less than 5 years. The suspension and
15    revocation shall apply to the principals of the business
16    and any subsequent business formed or financed by, or
17    affiliated with, those principals.
18        (2) Reports of violations. Each State agency shall
19    report any alleged violation of Section 17-10.3 or
20    subsection (d) of Section 33E-6 of the Criminal Code of
21    2012 relating to this Section to the chief procurement
22    officers appointed pursuant to Section 10-20. The chief
23    procurement officers appointed pursuant to Section 10-20
24    shall subsequently report all such alleged violations to
25    the Attorney General, who shall determine whether to bring
26    a civil action against any person for the violation.

 

 

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1        (3) List of suspended persons. The chief procurement
2    officers appointed pursuant to Section 10-20 shall monitor
3    the status of all reported violations of Section 17-10.3 or
4    subsection (d) of Section 33E-6 of the Criminal Code of
5    1961 or the Criminal Code of 2012 relating to this Section
6    and shall maintain and make available to all State agencies
7    a central listing of all persons that committed violations
8    resulting in suspension.
9        (4) Use of suspended persons. During the period of a
10    person's suspension under paragraph (1) of this
11    subsection, a State agency shall not enter into any
12    contract with that person or with any contractor using the
13    services of that person as a subcontractor.
14        (5) Duty to check list. Each State agency shall check
15    the central listing provided by the chief procurement
16    officers appointed pursuant to Section 10-20 under
17    paragraph (3) of this subsection to verify that a person
18    being awarded a contract by that State agency, or to be
19    used as a subcontractor or supplier on a contract being
20    awarded by that State agency, is not under suspension
21    pursuant to paragraph (1) of this subsection.
22(Source: P.A. 100-43, eff. 8-9-17; 100-391, eff. 8-25-17;
23100-863, eff. 8-14-18.)