98TH GENERAL ASSEMBLY
State of Illinois
2013 and 2014
HB2408

 

Introduced , by Rep. Jerry F. Costello, II - Linda Chapa LaVia

 

SYNOPSIS AS INTRODUCED:
 
30 ILCS 500/45-57

    Amends the Illinois Procurement Code. Provides that any veteran-owned small business shall be certified as any number of the following that apply: "female owned business", "minority owned business", "business owned by a person with a disability", as defined in Section 2 of the Business Enterprise for Minorities, Females, and Persons with Disabilities Act, "qualified service-disabled veteran-owned small business", and "qualified veteran-owned small business" under this Section. Effective immediately.


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A BILL FOR

 

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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) 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 veterans and that
11qualified 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    (b) Fiscal year reports. By each September 1, each chief

 

 

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1procurement officer shall report to the Department of Central
2Management Services on all of the following for the immediately
3preceding fiscal year, and by each March 1 the Department of
4Central Management Services shall compile and report that
5information to the General Assembly:
6        (1) The total number of VOSB, and the number of SDVOSB,
7    who submitted bids for contracts under this Code.
8        (2) The total number of VOSB, and the number of SDVOSB,
9    who entered into contracts with the State under this Code
10    and the total value of those contracts.
11    (c) Yearly review and recommendations. Each year, each
12chief procurement officer shall review the progress of all
13State agencies under its jurisdiction in meeting the goal
14described in subsection (a), with input from statewide
15veterans' service organizations and from the business
16community, including businesses owned by qualified veterans,
17and shall make recommendations to be included in the Department
18of Central Management Services' report to the General Assembly
19regarding continuation, increases, or decreases of the
20percentage goal. The recommendations shall be based upon the
21number of businesses that are owned by qualified veterans and
22on the continued need to encourage and promote businesses owned
23by qualified veterans.
24    (d) Governor's recommendations. To assist the State in
25reaching the goal described in subsection (a), the Governor
26shall recommend to the General Assembly changes in programs to

 

 

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1assist businesses owned by qualified veterans.
2    (e) Definitions. As used in this Section:
3    "Armed forces of the United States" means the United States
4Army, Navy, Air Force, Marine Corps, Coast Guard, or service in
5active duty as defined under 38 U.S.C. Section 101. Service in
6the Merchant Marine that constitutes active duty under Section
7401 of federal Public Act 95-202 shall also be considered
8service in the armed forces for purposes of this Section.
9    "Certification" means a determination made by the Illinois
10Department of Veterans' Affairs and the Department of Central
11Management Services that a business entity is a qualified
12service-disabled veteran-owned small business or a qualified
13veteran-owned small business for whatever purpose. A SDVOSB or
14VOSB owned and controlled by females, minorities, or persons
15with disabilities, or any combination thereof, as those terms
16are defined in Section 2 of the Business Enterprise for
17Minorities, Females, and Persons with Disabilities Act, shall
18be certified as any number of the following that apply: "female
19owned business", "minority owned business", "business owned by
20a person with a disability", as defined in Section 2 of the
21Business Enterprise for Minorities, Females, and Persons with
22Disabilities Act, "qualified service-disabled veteran-owned
23small business", and "qualified veteran-owned small business"
24under this Section. shall select and designate whether that
25business is to be certified as a "female-owned business",
26"minority-owned business", or "business owned by a person with

 

 

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

 

 

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

 

 

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

 

 

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1procedure to assure that businesses taking advantage of this
2Section are legitimately classified as qualified
3service-disabled veteran-owned small businesses or qualified
4veteran-owned small businesses.
5    (g) Penalties.
6        (1) Administrative penalties. The Department of
7    Central Management Services shall suspend any person who
8    commits a violation of Section 17-10.3 or subsection (d) of
9    Section 33E-6 of the Criminal Code of 1961 relating to this
10    Section from bidding on, or participating as a contractor,
11    subcontractor, or supplier in, any State contract or
12    project for a period of not less than 3 years, and, if the
13    person is certified as a service-disabled veteran-owned
14    small business or a veteran-owned small business, then the
15    Department shall revoke the business's certification for a
16    period of not less than 3 years. An additional or
17    subsequent violation shall extend the periods of
18    suspension and revocation for a period of not less than 5
19    years. The suspension and revocation shall apply to the
20    principals of the business and any subsequent business
21    formed or financed by, or affiliated with, those
22    principals.
23        (2) Reports of violations. Each State agency shall
24    report any alleged violation of Section 17-10.3 or
25    subsection (d) of Section 33E-6 of the Criminal Code of
26    1961 relating to this Section to the Department of Central

 

 

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1    Management Services. The Department of Central Management
2    Services shall subsequently report all such alleged
3    violations to the Attorney General, who shall determine
4    whether to bring a civil action against any person for the
5    violation.
6        (3) List of suspended persons. The Department of
7    Central Management Services shall monitor the status of all
8    reported violations of Section 17-10.3 or subsection (d) of
9    Section 33E-6 of the Criminal Code of 1961 relating to this
10    Section and shall maintain and make available to all State
11    agencies a central listing of all persons that committed
12    violations resulting in suspension.
13        (4) Use of suspended persons. During the period of a
14    person's suspension under paragraph (1) of this
15    subsection, a State agency shall not enter into any
16    contract with that person or with any contractor using the
17    services of that person as a subcontractor.
18        (5) Duty to check list. Each State agency shall check
19    the central listing provided by the Department of Central
20    Management Services under paragraph (3) of this subsection
21    to verify that a person being awarded a contract by that
22    State agency, or to be used as a subcontractor or supplier
23    on a contract being awarded by that State agency, is not
24    under suspension pursuant to paragraph (1) of this
25    subsection.
26(Source: P.A. 96-96, eff. 1-1-10; 97-260, eff. 8-5-11.)
 

 

 

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1    Section 99. Effective date. This Act takes effect upon
2becoming law.