99TH GENERAL ASSEMBLY
State of Illinois
2015 and 2016
SB1494

 

Introduced 2/20/2015, by Sen. Thomas Cullerton

 

SYNOPSIS AS INTRODUCED:
 
30 ILCS 500/45-57

    Amends the Procurement Code. Provides that 3% of the total dollar amount of State contracts shall be established as a goal to be awarded to qualified service-disabled veteran-owned small businesses.


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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. An
18additional 3% of the total dollar amount of State contracts
19shall be established as a goal to be awarded to SDVOSB. That
20portion of a contract under which the contractor subcontracts
21with a SDVOSB or VOSB may be counted toward the goal of this
22subsection. The Department of Central Management Services
23shall adopt rules to implement compliance with this subsection

 

 

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

 

 

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1reaching the goal described in subsection (a), the Governor
2shall recommend to the General Assembly changes in programs to
3assist businesses owned by qualified veterans.
4    (e) Definitions. As used in this Section:
5    "Armed forces of the United States" means the United States
6Army, Navy, Air Force, Marine Corps, Coast Guard, or service in
7active duty as defined under 38 U.S.C. Section 101. Service in
8the Merchant Marine that constitutes active duty under Section
9401 of federal Public Act 95-202 shall also be considered
10service in the armed forces for purposes of this Section.
11    "Certification" means a determination made by the Illinois
12Department of Veterans' Affairs and the Department of Central
13Management Services that a business entity is a qualified
14service-disabled veteran-owned small business or a qualified
15veteran-owned small business for whatever purpose. A SDVOSB or
16VOSB owned and controlled by females, minorities, or persons
17with disabilities, as those terms are defined in Section 2 of
18the Business Enterprise for Minorities, Females, and Persons
19with Disabilities Act, may also select and designate whether
20that business is to be certified as a "female-owned business",
21"minority-owned business", or "business owned by a person with
22a disability", as defined in Section 2 of the Business
23Enterprise for Minorities, Females, and Persons with
24Disabilities Act.
25    "Control" means the exclusive, ultimate, majority, or sole
26control of the business, including but not limited to capital

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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1    officers appointed pursuant to Section 10-20 shall monitor
2    the status of all reported violations of Section 17-10.3 or
3    subsection (d) of Section 33E-6 of the Criminal Code of
4    1961 or the Criminal Code of 2012 relating to this Section
5    and shall maintain and make available to all State agencies
6    a central listing of all persons that committed violations
7    resulting in suspension.
8        (4) Use of suspended persons. During the period of a
9    person's suspension under paragraph (1) of this
10    subsection, a State agency shall not enter into any
11    contract with that person or with any contractor using the
12    services of that person as a subcontractor.
13        (5) Duty to check list. Each State agency shall check
14    the central listing provided by the chief procurement
15    officers appointed pursuant to Section 10-20 under
16    paragraph (3) of this subsection to verify that a person
17    being awarded a contract by that State agency, or to be
18    used as a subcontractor or supplier on a contract being
19    awarded by that State agency, is not under suspension
20    pursuant to paragraph (1) of this subsection.
21(Source: P.A. 97-260, eff. 8-5-11; 97-1150, eff. 1-25-13;
2298-307, eff. 8-12-13; 98-1076, eff. 1-1-15.)