Full Text of HB3833 96th General Assembly
HB3833sam002 96TH GENERAL ASSEMBLY | Sen. M. Maggie Crotty Filed: 1/5/2011
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| 1 | | AMENDMENT TO HOUSE BILL 3833
| 2 | | AMENDMENT NO. ______. Amend House Bill 3833, AS AMENDED, by | 3 | | inserting immediately below the title the following:
| 4 | | "WHEREAS, Generation after generation of Illinois' | 5 | | citizens has served our nation and the State of Illinois by | 6 | | serving in America's armed forces, often at great sacrifice; | 7 | | and military service by their citizenry is fundamental to the | 8 | | continuing freedom that America and the State of Illinois | 9 | | enjoy; and | 10 | | WHEREAS, Accordingly, honoring the service of Illinois' | 11 | | military veterans, past, present, and future, must be a | 12 | | primary, cornerstone commitment of Illinois; and | 13 | | WHEREAS, Inasmuch as the State of Illinois acknowledges the | 14 | | past and ongoing commitment of Illinois' military veterans, it | 15 | | is the intent of this Act to (i) foster economic opportunities | 16 | | for Illinois' military veterans by encouraging the | 17 | | establishment of service-disabled veteran-owned small | 18 | | businesses (SDVOSB) and veteran-owned small businesses (VOSB) |
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| 1 | | and (ii) establish an annual, ongoing, percentage goal for all | 2 | | State agencies' award of goods and services contracts and | 3 | | construction-related State spending that shall be set aside for | 4 | | competitive bidding by verified Illinois SDVOSB and VOSB; and | 5 | | WHEREAS, It is further intended that appropriate | 6 | | administrative procedures for the verification of SDVOSB, | 7 | | VOSB, bid solicitations, awards, and all matters pertaining | 8 | | thereto shall be established and implemented by the Department | 9 | | of Central Management Services; therefore,"; and | 10 | | by replacing everything after the enacting clause with the | 11 | | following: | 12 | | "Section 5. The Illinois Procurement Code is amended by | 13 | | changing Section 45-57 as follows: | 14 | | (30 ILCS 500/45-57) | 15 | | Sec. 45-57. Veterans Disabled veterans . | 16 | | (a) Set-aside goal. It is the goal of the State to promote | 17 | | and encourage the continued economic development of small | 18 | | businesses owned and controlled by qualified service disabled | 19 | | veterans and that qualified service-disabled service disabled | 20 | | veteran-owned small businesses (referred to as SDVOSB SDVOB ) | 21 | | and veteran-owned small businesses (referred to as VOSB) | 22 | | participate in the State's procurement process as both prime | 23 | | contractors and subcontractors. The State shall set aside 5% A |
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| 1 | | Task Force shall be established, appointed by the Directors or | 2 | | Secretaries of, and made up of representatives of, the Illinois | 3 | | Department of Veterans' Affairs, the Illinois Department of | 4 | | Transportation, the Department of Central Management Services, | 5 | | the Business Enterprise Program, and the Business Enterprise | 6 | | Council. The Department of Central Management Services shall | 7 | | provide administrative support to the Task Force. The purpose | 8 | | of this Task Force shall be to determine the appropriate | 9 | | percentage goal for award each fiscal year
of the State's total | 10 | | expenditures for contracts
awarded under this Code for award to | 11 | | SDVOSB and VOSB to SDVOB . That
portion of a contract under | 12 | | which the contractor subcontracts
with a SDVOSB or VOSB SDVOB | 13 | | may be counted toward the
goal of this subsection. The | 14 | | Department of Central Management Services shall adopt rules to | 15 | | implement compliance with this subsection by all State | 16 | | agencies. In making that determination the Task Force shall | 17 | | consult with statewide veterans' service organizations and the | 18 | | business community, including businesses owned by qualified | 19 | | disabled veterans. The Task Force shall submit its report to | 20 | | the General Assembly concerning its recommendations regarding | 21 | | the appropriate percentage goal for award each fiscal year of | 22 | | the State's total expenditures for contracts awarded under this | 23 | | Code to qualified service disabled veterans no later than 90 | 24 | | days after the effective date of this amendatory Act of the | 25 | | 96th General Assembly. | 26 | | (b) Fiscal year reports. By Once the appropriate goal is |
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| 1 | | established, then by each September 1, each chief procurement | 2 | | officer shall report to the Department of Central Management | 3 | | Services on all of the following for the immediately preceding | 4 | | fiscal year, and by each October 1 the Department of Central | 5 | | Management Services shall compile and report that information | 6 | | to the General Assembly: | 7 | | (1) The total number of VOSB, and the number of SDVOSB, | 8 | | SDVOB who submitted bids a bid for contracts a contract | 9 | | under this Code. | 10 | | (2) The total number of VOSB, and the number of SDVOSB, | 11 | | SDVOB who entered into contracts with the State under this | 12 | | Code and the total value of those contracts. | 13 | | (c) Yearly review and recommendations. Each year, each | 14 | | chief procurement officer shall review the progress of all | 15 | | State agencies under its jurisdiction in meeting the goal | 16 | | described in subsection (a), with input from statewide | 17 | | veterans' service organizations and from the business | 18 | | community, including businesses owned by qualified disabled | 19 | | veterans, and shall make recommendations to be included in the | 20 | | Department of Central Management Services' report to the | 21 | | General Assembly regarding continuation, increases, or | 22 | | decreases of the percentage goal. The recommendations shall be | 23 | | based upon the number of businesses that are owned by qualified | 24 | | disabled veterans and on the continued need to encourage and | 25 | | promote businesses owned by qualified disabled veterans. | 26 | | (d) Governor's recommendations. To assist the State in |
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| 1 | | reaching the goal described in subsection (a), the Governor | 2 | | shall recommend to the General Assembly changes in programs to | 3 | | assist businesses owned by qualified disabled veterans. | 4 | | (e) Definitions. As used in this Section: | 5 | | " Business" means a business that has average annual gross | 6 | | sales over the 3 most recent calendar years of less than | 7 | | $31,000,000 as evidenced by the federal income tax returns of | 8 | | the business. | 9 | | "Control" means the exclusive, ultimate, majority, or sole | 10 | | control of the business, including but not limited to capital | 11 | | investment and all other financial matters, property, | 12 | | acquisitions, contract negotiations, legal matters, | 13 | | officer-director-employee selection and comprehensive hiring, | 14 | | operation responsibilities, cost-control matters, income and | 15 | | dividend matters, financial transactions, and rights of other | 16 | | shareholders or joint partners. Control shall be real, | 17 | | substantial, and continuing, not pro forma. Control shall | 18 | | include the power to direct or cause the direction of the | 19 | | management and policies of the business and to make the | 20 | | day-to-day as well as major decisions in matters of policy, | 21 | | management, and operations. Control shall be exemplified by | 22 | | possessing the requisite knowledge and expertise to run the | 23 | | particular business. | 24 | | "Qualified service-disabled service disabled veteran" | 25 | | means a
veteran who has been found to have a service-connected | 26 | | disability by the United States Department of Veterans Affairs |
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| 1 | | or the United States Department of Defense. | 2 | | "Qualified service-disabled veteran-owned small business" | 3 | | or "SDVOSB" means a small business (i) that is at least 51% | 4 | | unconditionally owned by one or more qualified | 5 | | service-disabled veterans living in Illinois or, in the case of | 6 | | a corporation, at least 51% of the stock of which is | 7 | | unconditionally owned by one or more qualified | 8 | | service-disabled veterans living in Illinois; (ii) the | 9 | | management and daily business operations of which are | 10 | | controlled by one or more of the qualified service-disabled | 11 | | veterans who own it; (iii) that has its home office in | 12 | | Illinois; and (iv) for which items (i) through (iii) are | 13 | | factually verified annually by the Department of Central | 14 | | Management Services. | 15 | | "Qualified veteran-owned small business" or "VOSB" means a | 16 | | small business (i) that is at least 51% unconditionally owned | 17 | | by one or more qualified veterans living in Illinois or, in the | 18 | | case of a corporation, at least 51% of the stock of which is | 19 | | unconditionally owned by one or more qualified veterans living | 20 | | in Illinois; (ii) the management and daily business operations | 21 | | of which are controlled by one or more of the qualified | 22 | | veterans who own it; (iii) that has its home office in | 23 | | Illinois; and (iv) for which items (i) through (iii) are | 24 | | factually verified annually by the Department of Central | 25 | | Management Services. | 26 | | "Qualified disabled veteran-owned business" means a |
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| 1 | | business entity that is at least 51% owned by one or more | 2 | | qualified disabled veterans, or in the case of a corporation, | 3 | | at least 51% of the stock of which is owned by one or more | 4 | | qualified disabled veterans; and the management and daily | 5 | | business operations of which are controlled by one or more of | 6 | | the qualified disabled veterans who own it. | 7 | | "Service-connected disability" means a disability incurred | 8 | | in the line of duty in the active military, naval, or air | 9 | | service as described in 38 U.S.C. 101(16). | 10 | | "Small business" means any for-profit business in | 11 | | Illinois, including but not limited to any sole proprietorship, | 12 | | partnership, corporation, limited liability company, joint | 13 | | venture, association, or cooperative, that (i) has, including | 14 | | its affiliates, fewer than 500 full-time employees or (ii) is | 15 | | determined by the Department of Central Management Services to | 16 | | be not dominant in its field. | 17 | | "Veteran" means a person who served in the active military,
| 18 | | naval, or air service and who was discharged or released from
| 19 | | his or her service under conditions other than dishonorable. | 20 | | (f) Certification program. The Illinois Department of | 21 | | Veterans' Affairs and the Department of Central Management | 22 | | Services Business Enterprise Program shall work together to | 23 | | devise a certification procedure to assure that businesses | 24 | | taking advantage of this Section Act are legitimately | 25 | | classified as qualified service-disabled service disabled | 26 | | veteran-owned small businesses or qualified veteran-owned |
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| 1 | | small businesses .
| 2 | | (g) VOSBA network. The Director of Central Management | 3 | | Services shall administer a State network of Veteran-Owned | 4 | | Small Business Advocates (VOSBA), who shall report to the | 5 | | Director's appointee and shall do all of the following: | 6 | | (1) Oversee, promote, and coordinate the VOSBA | 7 | | program. | 8 | | (2) Manage appointment and oversight of all VOSBA | 9 | | members. | 10 | | (3) Submit to the Director's appointee an annual report | 11 | | to document the VOSBA program. | 12 | | (4) Coordinate with State agencies and with existing | 13 | | and potential veteran-owned small businesses to achieve | 14 | | the goal described in subsection (a). | 15 | | (h) State agency VOSBA. Each State agency shall appoint and | 16 | | support at least one State agency VOSBA. The Department of | 17 | | Central Management Services shall maintain an online database | 18 | | of all VOSBA, including their telephone numbers, facsimile | 19 | | numbers, electronic mail addresses, and postal addresses. Each | 20 | | State agency VOSBA shall do all of the following: | 21 | | (1) Assist certified veteran-owned small businesses in | 22 | | participating in the State agency's contracting process. | 23 | | (2) Assist the State agency's State purchasing officer | 24 | | in seeking veteran-owned small businesses to participate | 25 | | in the State agency's contract and procurement activities | 26 | | by any feasible means, including without limitation by |
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| 1 | | performing outreach efforts to recruit veteran-owned small | 2 | | businesses to be prime contractors or subcontractors on | 3 | | contracts proposed by the State agency that require | 4 | | veteran-owned small business participation. | 5 | | (3) Meet regularly with the contract and procurement | 6 | | staffs of his or her State agency to disseminate | 7 | | information about the veteran-owned small business | 8 | | set-aside program. | 9 | | (4) Advocate for the veteran-owned small businesses | 10 | | that are used as the State agency's contractors or | 11 | | subcontractors. | 12 | | (5) Report to the Department of Central Management | 13 | | Services regarding any violation of this Section. | 14 | | (6) Coordinate and meet, on a regular basis, with the | 15 | | Illinois Department of Veterans' Affairs in an effort to | 16 | | meet the goal described in subsection (a). | 17 | | (i) Penalties. | 18 | | (1) Administrative penalties. The Department of | 19 | | Central Management Services shall suspend any person who | 20 | | commits a violation of Article 33C or subsection (d) of | 21 | | Section 33E-6 of the Criminal Code of 1961 relating to this | 22 | | Section from bidding on, or participating as a contractor, | 23 | | subcontractor, or supplier in, any State contract or | 24 | | project for a period of not less than 3 years, and, if the | 25 | | person is certified as a service-disabled veteran-owned | 26 | | small business or a veteran-owned small business, then the |
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| 1 | | Department shall revoke the business' certification for a | 2 | | period of not less than 3 years. An additional or | 3 | | subsequent violation shall extend the periods of | 4 | | suspension and revocation for a period of not less than 5 | 5 | | years. The suspension and revocation shall apply to the | 6 | | principals of the business and any subsequent business | 7 | | formed or financed by, or affiliated with, those | 8 | | principals. | 9 | | (2) Reports of violations. Each State agency shall | 10 | | report any alleged violation of Article 33C or subsection | 11 | | (d) of Section 33E-6 of the Criminal Code of 1961 relating | 12 | | to this Section to the Department of Central Management | 13 | | Services. The Department of Central Management Services | 14 | | shall subsequently report all such alleged violations to | 15 | | the Attorney General, who shall determine whether to bring | 16 | | a civil action against any person for the violation. | 17 | | (3) List of suspended persons. The Department of | 18 | | Central Management Services shall monitor the status of all | 19 | | reported violations of Article 33C or subsection (d) of | 20 | | Section 33E-6 of the Criminal Code of 1961 relating to this | 21 | | Section and shall maintain and make available to all State | 22 | | agencies a central listing of all persons that committed | 23 | | violations resulting in suspension. | 24 | | (4) Use of suspended persons. During the period of a | 25 | | person's suspension under paragraph (1) of this | 26 | | subsection, a State agency shall not enter into any |
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| 1 | | contract with that person or with any contractor using the | 2 | | services of that person as a subcontractor. | 3 | | (5) Duty to check list. Each State agency shall check | 4 | | the central listing provided by the Department of Central | 5 | | Management Services under paragraph (3) of this subsection | 6 | | to verify that a person being awarded a contract by that | 7 | | State agency, or to be used as a subcontractor or supplier | 8 | | on a contract being awarded by that State agency, is not | 9 | | under suspension pursuant to paragraph (1) of this | 10 | | subsection. | 11 | | (Source: P.A. 96-96, eff. 1-1-10.)
| 12 | | Section 10. The Criminal Code of 1961 is amended by | 13 | | changing Sections 33C-1, 33C-2, 33C-3, 33C-4, 33C-5, 33E-2, and | 14 | | 33E-6 as follows:
| 15 | | (720 ILCS 5/33C-1) (from Ch. 38, par. 33C-1)
| 16 | | Sec. 33C-1. Fraudulently obtaining or retaining | 17 | | certification. A person
who, in the course of business, | 18 | | fraudulently obtains or retains
certification as a minority | 19 | | owned business , or female owned business , service-disabled | 20 | | veteran-owned small business, or veteran-owned small business | 21 | | commits
a Class 2 felony.
| 22 | | (Source: P.A. 84-192.)
| 23 | | (720 ILCS 5/33C-2) (from Ch. 38, par. 33C-2)
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| 1 | | Sec. 33C-2. Willfully making a false statement. A person | 2 | | who, in the
course of business, willfully makes a false | 3 | | statement whether by affidavit,
report or other | 4 | | representation, to an official or employee of a State
agency or | 5 | | the Minority and Female Business Enterprise Council for the
| 6 | | purpose of influencing the certification or denial of | 7 | | certification of any
business entity as a minority owned | 8 | | business , or female owned business , service-disabled | 9 | | veteran-owned small business, or veteran-owned small business
| 10 | | commits a Class 2 felony.
| 11 | | (Source: P.A. 84-192.)
| 12 | | (720 ILCS 5/33C-3) (from Ch. 38, par. 33C-3)
| 13 | | Sec. 33C-3.
Willfully obstructing or impeding an official | 14 | | or employee of
any agency in his investigation.
Any person who, | 15 | | in the course of business, willfully obstructs or impedes
an | 16 | | official or employee of any State agency or the Minority and | 17 | | Female
Business Enterprise Council
who is investigating the | 18 | | qualifications of a business
entity which has requested | 19 | | certification as a minority owned business , or a
female owned | 20 | | business , service-disabled veteran-owned small business, or | 21 | | veteran-owned small business commits a Class 2 felony.
| 22 | | (Source: P.A. 84-192.)
| 23 | | (720 ILCS 5/33C-4) (from Ch. 38, par. 33C-4)
| 24 | | Sec. 33C-4.
Fraudulently obtaining public moneys reserved |
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| 1 | | for
disadvantaged business enterprises. Any person who, in the | 2 | | course of
business, fraudulently obtains public moneys | 3 | | reserved for, or allocated or
available to , minority owned | 4 | | businesses , or female owned businesses , service-disabled | 5 | | veteran-owned small businesses, or veteran-owned small | 6 | | businesses commits a
Class 2 felony.
| 7 | | (Source: P.A. 84-192.)
| 8 | | (720 ILCS 5/33C-5) (from Ch. 38, par. 33C-5)
| 9 | | Sec. 33C-5. Definitions. As used in this Article, "minority | 10 | | owned
business", "female owned business", "State agency" with | 11 | | respect to minority owned businesses and female owned | 12 | | businesses, and "certification" with respect to minority owned | 13 | | businesses and female owned businesses shall
have the meanings | 14 | | ascribed to them in Section 2 of the Business Enterprise for
| 15 | | Minorities, Females, and
Persons with Disabilities Act. As used | 16 | | in this Article, "service-disabled veteran-owned small | 17 | | business", "veteran-owned small business", "State agency" with | 18 | | respect to service-disabled veteran-owned small businesses and | 19 | | veteran-owned small businesses, and "certification" with | 20 | | respect to service-disabled veteran-owned small businesses and | 21 | | veteran-owned small businesses have the same meanings as in | 22 | | Section 45-57 of the Illinois Procurement Code.
| 23 | | (Source: P.A. 92-16, eff. 6-28-01.)
| 24 | | (720 ILCS 5/33E-2) (from Ch. 38, par. 33E-2)
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| 1 | | Sec. 33E-2. Definitions. In this Act:
| 2 | | (a) "Public contract" means any
contract for goods, | 3 | | services or construction let to any person with or
without bid | 4 | | by any unit of State or local government.
| 5 | | (b) "Unit of State or local government" means the State, | 6 | | any unit of state
government or agency thereof, any county or | 7 | | municipal government or committee
or agency thereof, or any | 8 | | other entity which is funded by or expends tax
dollars or the | 9 | | proceeds of publicly guaranteed bonds.
| 10 | | (c) "Change order" means a change in a contract term other | 11 | | than as
specifically provided for in the contract which | 12 | | authorizes or necessitates
any increase or decrease in the cost | 13 | | of the contract or the time to completion.
| 14 | | (d) "Person" means any individual, firm, partnership,
| 15 | | corporation, joint venture or other entity, but does not | 16 | | include a unit
of State or local government.
| 17 | | (e) "Person employed by any unit of State or local | 18 | | government" means
any employee of a unit of State or local | 19 | | government and any person defined in
subsection (d) who is | 20 | | authorized by such unit of State or local government
to act on | 21 | | its behalf in relation to any public contract.
| 22 | | (f) "Sheltered market" has the meaning ascribed to it in | 23 | | Section 8b of the Business Enterprise for Minorities,
Females, | 24 | | and Persons with Disabilities Act ; except that, with respect to | 25 | | State contracts set aside for award to service-disabled | 26 | | veteran-owned small businesses and veteran-owned small |
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| 1 | | businesses pursuant to Section 45-57 of the Illinois | 2 | | Procurement Code, "sheltered market" means procurements | 3 | | pursuant to that Section .
| 4 | | (g) "Kickback" means any money, fee, commission, credit, | 5 | | gift, gratuity,
thing of value, or compensation of any kind | 6 | | which is provided, directly or
indirectly, to any prime | 7 | | contractor, prime contractor employee,
subcontractor, or | 8 | | subcontractor employee for the purpose of improperly
obtaining | 9 | | or rewarding favorable treatment in connection with a prime
| 10 | | contract or in connection with a subcontract relating to a | 11 | | prime contract.
| 12 | | (h) "Prime contractor" means any person who has entered | 13 | | into
a public contract.
| 14 | | (i) "Prime contractor employee" means any officer, | 15 | | partner, employee, or
agent of a prime contractor.
| 16 | | (i-5) "Stringing" means knowingly structuring a contract
| 17 | | or job order to avoid the contract or job order being subject | 18 | | to competitive
bidding requirements.
| 19 | | (j) "Subcontract" means a contract or contractual action | 20 | | entered into by
a prime contractor or subcontractor for the | 21 | | purpose of obtaining goods or
services of any kind under a | 22 | | prime contract.
| 23 | | (k) "Subcontractor" (1) means any person, other than the | 24 | | prime
contractor, who offers to furnish or furnishes any goods | 25 | | or services of any
kind under a prime contract or a subcontract | 26 | | entered into in connection
with such prime contract; and (2) |
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| 1 | | includes any person who offers to furnish
or furnishes goods or | 2 | | services to the prime contractor or a higher tier
| 3 | | subcontractor.
| 4 | | (l) "Subcontractor employee" means any officer, partner, | 5 | | employee, or
agent of a subcontractor.
| 6 | | (Source: P.A. 92-16, eff. 6-28-01.)
| 7 | | (720 ILCS 5/33E-6) (from Ch. 38, par. 33E-6)
| 8 | | Sec. 33E-6.
Interference with contract submission and | 9 | | award by public
official. (a) Any person who is an official of | 10 | | or employed by any unit of
State or local government who | 11 | | knowingly conveys, either directly or indirectly,
outside of | 12 | | the publicly available official invitation to bid, pre-bid
| 13 | | conference, solicitation for contracts procedure or such | 14 | | procedure used
in any sheltered market procurement adopted | 15 | | pursuant to law or ordinance by
that unit of government, to any | 16 | | person any information concerning the
specifications for such | 17 | | contract or the identity of any particular
potential | 18 | | subcontractors, when inclusion of such information concerning | 19 | | the
specifications or contractors in the bid or offer would | 20 | | influence the
likelihood of acceptance of such bid or offer, | 21 | | commits a Class 4 felony.
It shall not constitute a violation | 22 | | of this subsection to convey
information intended to clarify | 23 | | plans or specifications regarding a public
contract where such | 24 | | disclosure of information is also made generally
available to | 25 | | the public.
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| 1 | | (b) Any person who is an official of or employed by any | 2 | | unit of State or
local government who, either directly or | 3 | | indirectly, knowingly informs a
bidder or offeror that the bid | 4 | | or offer will be accepted or executed only
if specified | 5 | | individuals are included as subcontractors commits a Class 3
| 6 | | felony.
| 7 | | (c) It shall not constitute a violation of subsection (a) | 8 | | of this
Section where any person who is an official of or | 9 | | employed by any unit of
State or local government follows | 10 | | procedures established (i) by federal,
State or local minority | 11 | | or female owned business enterprise programs or (ii) pursuant | 12 | | to Section 45-57 of the Illinois Procurement Code .
| 13 | | (d) Any bidder or offeror who is the recipient of | 14 | | communications from
the unit of government which he reasonably | 15 | | believes to be proscribed by
subsections (a) or (b), and fails | 16 | | to inform either the Attorney General or
the State's Attorney | 17 | | for the county in which the unit of government is
located, | 18 | | commits a Class A misdemeanor.
| 19 | | (e) Any public official who knowingly awards a contract | 20 | | based on
criteria which were not publicly disseminated via the | 21 | | invitation to bid,
when such invitation to bid is required by | 22 | | law or ordinance, the pre-bid
conference, or any solicitation | 23 | | for contracts procedure or such
procedure used in any sheltered | 24 | | market procurement procedure adopted
pursuant to statute or | 25 | | ordinance, commits a Class 3 felony.
| 26 | | (f) It shall not constitute a violation of subsection (a) |
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| 1 | | for any
person who is an official of or employed by any unit of | 2 | | State or local
government to provide to any person a copy of | 3 | | the transcript or other
summary of any pre-bid conference where | 4 | | such transcript or summary is also
made generally available to | 5 | | the public.
| 6 | | (Source: P.A. 86-150.)
| 7 | | Section 99. Effective date. This Act takes effect March 1, | 8 | | 2011.".
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