Rep. Linda Chapa LaVia

Filed: 5/6/2011

 

 


 

 


 
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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, and businesses contracted by
16the State to perform professional services in architecture or

 

 

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1engineering. Not less than 3% of the total dollar amount of
2State contracts, as defined by the Director of Central
3Management Services, shall be established as a goal to be
4awarded to SDVOSB and VOSB. A Task Force shall be established,
5appointed by the Directors or Secretaries of, and made up of
6representatives of, the Illinois Department of Veterans'
7Affairs, the Illinois Department of Transportation, the
8Department of Central Management Services, the Business
9Enterprise Program, and the Business Enterprise Council. The
10Department of Central Management Services shall provide
11administrative support to the Task Force. The purpose of this
12Task Force shall be to determine the appropriate percentage
13goal for award each fiscal year of the State's total
14expenditures for contracts awarded under this Code to SDVOB.
15That portion of a contract under which the contractor
16subcontracts with a SDVOSB or VOSB SDVOB may be counted toward
17the goal of this subsection. The Department of Central
18Management Services shall adopt rules to implement compliance
19with this subsection by all State agencies. In making that
20determination the Task Force shall consult with statewide
21veterans' service organizations and the business community,
22including businesses owned by qualified disabled veterans. The
23Task Force shall submit its report to the General Assembly
24concerning its recommendations regarding the appropriate
25percentage goal for award each fiscal year of the State's total
26expenditures for contracts awarded under this Code to qualified

 

 

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1service disabled veterans no later than 90 days after the
2effective date of this amendatory Act of the 96th General
3Assembly.
4    (b) Fiscal year reports. By Once the appropriate goal is
5established, then by each September 1, each chief procurement
6officer shall report to the Department of Central Management
7Services on all of the following for the immediately preceding
8fiscal year, and by each March October 1 the Department of
9Central Management Services shall compile and report that
10information to the General Assembly:
11        (1) The total number of VOSB, and the number of SDVOSB,
12    SDVOB who submitted bids a bid for contracts a contract
13    under this Code.
14        (2) The total number of VOSB, and the number of SDVOSB,
15    SDVOB who entered into contracts with the State under this
16    Code and the total value of those contracts.
17    (c) Yearly review and recommendations. Each year, each
18chief procurement officer shall review the progress of all
19State agencies under its jurisdiction in meeting the goal
20described in subsection (a), with input from statewide
21veterans' service organizations and from the business
22community, including businesses owned by qualified disabled
23veterans, and shall make recommendations to be included in the
24Department of Central Management Services' report to the
25General Assembly regarding continuation, increases, or
26decreases of the percentage goal. The recommendations shall be

 

 

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1based upon the number of businesses that are owned by qualified
2disabled veterans and on the continued need to encourage and
3promote businesses owned by qualified disabled veterans.
4    (d) Governor's recommendations. To assist the State in
5reaching the goal described in subsection (a), the Governor
6shall recommend to the General Assembly changes in programs to
7assist businesses owned by qualified disabled veterans.
8    (e) Definitions. As used in this Section:
9    "Armed forces of the United States" means the United States
10Army, Navy, Air Force, Marine Corps, Coast Guard, or service in
11active duty as defined under 38 U.S.C. Section 101. Service in
12the Merchant Marine that constitutes active duty under Section
13401 of federal Public Act 95-202 shall also be considered
14service in the armed forces for purposes of this Section.
15    " Business" means a business that has average annual gross
16sales over the 3 most recent calendar years of less than
17$31,000,000 as evidenced by the federal income tax returns of
18the business.
19    "Certification" means a determination made by the Illinois
20Department of Veterans' Affairs and the Department of Central
21Management Services that a business entity is a qualified
22service-disabled veteran-owned small business or a qualified
23veteran-owned small business for whatever purpose. A SDVOSB or
24VOSB owned and controlled by females, minorities, or persons
25with disabilities, as those terms are defined in Section 2 of
26the Business Enterprise for Minorities, Females, and Persons

 

 

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

 

 

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

 

 

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1in the line of duty in the active military, naval, or air
2service as described in 38 U.S.C. 101(16).
3    "Small business" means a business that has annual gross
4sales of less than $75,000,000 as evidenced by the federal
5income tax return of the business. A firm with gross sales in
6excess of this cap may apply to the Department of Central
7Management Services for certification for a particular
8contract if the firm can demonstrate that the contract would
9have significant impact on SDVOSB or VOSB as suppliers or
10subcontractors or in employment of veterans or
11service-disabled veterans.
12    "State agency" has the same meaning as in Section 2 of the
13Business Enterprise for Minorities, Females, and Persons with
14Disabilities Act.
15    "Time of hostilities with a foreign country" means any
16period of time in the past, present, or future during which a
17declaration of war by the United States Congress has been or is
18in effect or during which an emergency condition has been or is
19in effect that is recognized by the issuance of a Presidential
20proclamation or a Presidential executive order and in which the
21armed forces expeditionary medal or other campaign service
22medals are awarded according to Presidential executive order.
23    "Veteran" means a person who (i) has been a member of the
24armed forces of the United States or, while a citizen of the
25United States, was a member of the armed forces of allies of
26the United States in time of hostilities with a foreign country

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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1    Sec. 33E-6. Interference with contract submission and
2award by public official. (a) Any person who is an official of
3or employed by any unit of State or local government who
4knowingly conveys, either directly or indirectly, outside of
5the publicly available official invitation to bid, pre-bid
6conference, solicitation for contracts procedure or such
7procedure used in any sheltered market procurement adopted
8pursuant to law or ordinance by that unit of government, to any
9person any information concerning the specifications for such
10contract or the identity of any particular potential
11subcontractors, when inclusion of such information concerning
12the specifications or contractors in the bid or offer would
13influence the likelihood of acceptance of such bid or offer,
14commits a Class 4 felony. It shall not constitute a violation
15of this subsection to convey information intended to clarify
16plans or specifications regarding a public contract where such
17disclosure of information is also made generally available to
18the public.
19    (b) Any person who is an official of or employed by any
20unit of State or local government who, either directly or
21indirectly, knowingly informs a bidder or offeror that the bid
22or offer will be accepted or executed only if specified
23individuals are included as subcontractors commits a Class 3
24felony.
25    (c) It shall not constitute a violation of subsection (a)
26of this Section where any person who is an official of or

 

 

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

 

 

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12011.".