State of Illinois
91st General Assembly
Legislation

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91_SB0421

 
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 1        AN ACT to amend the Illinois Procurement Code by changing
 2    Section 50-35.

 3        Be it enacted by the People of  the  State  of  Illinois,
 4    represented in the General Assembly:

 5        Section  5.   The Illinois Procurement Code is amended by
 6    changing Section 50-35 as follows:

 7        (30 ILCS 500/50-35)
 8        Sec.  50-35.  Disclosure  and  potential   conflicts   of
 9    interest.
10        (a)  All  offers from responsive bidders or offerors with
11    an annual value of more than $10,000 shall be accompanied  by
12    disclosure  of  the  financial  interests  of the contractor,
13    bidder,  or  proposer.  The  financial  disclosure  of   each
14    successful  bidder  or  offeror  shall  become  part  of  the
15    publicly available contract or procurement file maintained by
16    the appropriate chief procurement officer.
17        (b)  Disclosure  by  the  responsive  bidders or offerors
18    shall include any ownership or distributive income share that
19    is in excess of 5%, or an amount  greater  than  60%  of  the
20    annual  salary  of the Governor, of the bidding entity or its
21    parent entity, whichever is less, unless  the  contractor  or
22    bidder (i) is a publicly traded entity subject to Federal 10K
23    reporting,  in which case it may submit its 10K disclosure in
24    place of the prescribed disclosure, or (ii)  is  a  privately
25    held entity that is exempt from Federal 10k reporting but has
26    more  than  400 shareholders, in which case it may submit the
27    information that Federal 10k reporting companies are required
28    to report under 17 CFR 229.401 and  list  the  names  of  any
29    person  or  entity  holding  any  ownership  share that is in
30    excess of 5% in place of the prescribed disclosure.  The form
31    of disclosure shall be prescribed  by  the  applicable  chief
 
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 1    procurement  officer  and  must  include  at least the names,
 2    addresses, and dollar or proportionate share of ownership  of
 3    each  person  identified in this Section, their instrument of
 4    ownership or  beneficial  relationship,  and  notice  of  any
 5    potential  conflict  of  interest  resulting from the current
 6    ownership  or  beneficial   relationship   of   each   person
 7    identified  in  this  Section  having  in addition any of the
 8    following relationships:
 9             (1)  State employment, currently or in the  previous
10        3 years, including contractual employment of services.
11             (2)  State  employment  of  spouse,  father, mother,
12        son, or daughter, including  contractual  employment  for
13        services in the previous 2 years.
14             (3)  Elective status; the holding of elective office
15        of  the  State  of Illinois, the government of the United
16        States, any unit of local government  authorized  by  the
17        Constitution  of the State of Illinois or the statutes of
18        the State of Illinois currently  or  in  the  previous  3
19        years.
20             (4)  Relationship  to anyone holding elective office
21        currently or in the previous  2  years;  spouse,  father,
22        mother, son, or daughter.
23             (5)  Appointive   office;   the   holding   of   any
24        appointive  government  office  of the State of Illinois,
25        the United States  of  America,  or  any  unit  of  local
26        government authorized by the Constitution of the State of
27        Illinois  or the statutes of the State of Illinois, which
28        office entitles the holder to compensation in  excess  of
29        expenses   incurred  in  the  discharge  of  that  office
30        currently or in the previous 3 years.
31             (6)  Relationship  to  anyone   holding   appointive
32        office  currently  or  in  the  previous 2 years; spouse,
33        father, mother, son, or daughter.
34             (7)  Employment, currently  or  in  the  previous  3
 
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 1        years,  as  or  by  any  registered lobbyist of the State
 2        government.
 3             (8)  Relationship  to  anyone  who  is  or   was   a
 4        registered  lobbyist  in  the  previous  2 years; spouse,
 5        father, mother, son, or daughter.
 6             (9)  Compensated employment,  currently  or  in  the
 7        previous   3   years,   by  any  registered  election  or
 8        re-election committee registered with  the  Secretary  of
 9        State  or  any  county clerk in the State of Illinois, or
10        any political action committee registered with either the
11        Secretary of State or the Federal Board of Elections.
12             (10)  Relationship  to   anyone;   spouse,   father,
13        mother,  son,  or  daughter;  who is or was a compensated
14        employee in the last 2 years of any  registered  election
15        or re-election committee registered with the Secretary of
16        State  or  any  county clerk in the State of Illinois, or
17        any political action committee registered with either the
18        Secretary of State or the Federal Board of Elections.
19        (c)  The disclosure in subsection (b) is not intended  to
20    prohibit or prevent any contract.  The disclosure is meant to
21    fully  and  publicly  disclose  any potential conflict to the
22    chief procurement officers, State purchasing officers,  their
23    designees,  and  executive  officers  so  they may adequately
24    discharge their duty to protect the State.
25        (d)  In the case of any contract for personal services in
26    excess of $50,000; any contract competitively bid  in  excess
27    of  $250,000; any other contract in excess of $50,000; when a
28    potential  for  a  conflict  of   interest   is   identified,
29    discovered,  or reasonably suspected it shall be reviewed and
30    commented on in writing by  the  Governor  of  the  State  of
31    Illinois, or by an executive ethics board or commission he or
32    she  might  designate.   The comment shall be returned to the
33    responsible  chief  procurement  officer  who  must  rule  in
34    writing whether to void or allow the contract, bid, offer, or
 
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 1    proposal weighing the best interest of the State of Illinois.
 2    The  comment  and  determination  shall  become  a   publicly
 3    available part of the contract, bid, or proposal file.
 4        (e)  These  threshholds and disclosure do not relieve the
 5    chief procurement officer, the State purchasing  officer,  or
 6    their  designees  from  reasonable care and diligence for any
 7    contract, bid, offer, or  proposal.   The  chief  procurement
 8    officer,  the  State  purchasing  officer, or their designees
 9    shall be responsible  for  using  any  reasonably  known  and
10    publicly  available  information  to discover any undisclosed
11    potential conflict of interest and act to  protect  the  best
12    interest of the State of Illinois.
13        (f)  Inadvertent  or accidental failure to fully disclose
14    shall render the contract,  bid,  proposal,  or  relationship
15    voidable  by the chief procurement officer if he or she deems
16    it in the best interest of the State of Illinois and, at  his
17    or  her  discretion,  may  be  cause  for barring from future
18    contracts, bids, proposals, or relationships with  the  State
19    for a period of up to 2 years.
20        (g)  Intentional,   willful,   or   material  failure  to
21    disclose  shall  render  the  contract,  bid,  proposal,   or
22    relationship  voidable by the chief procurement officer if he
23    or she deems it in the best interest of the State of Illinois
24    and shall result in debarment from  future  contracts,  bids,
25    proposals,  or  relationships for a period of not less than 2
26    years and not more than  10  years.   Reinstatement  after  2
27    years  and  before 10 years must be reviewed and commented on
28    in writing by the Governor of the State of Illinois, or by an
29    executive  ethics  board  or  commission  he  or  she   might
30    designate.   The comment shall be returned to the responsible
31    chief procurement officer who must rule  in  writing  whether
32    and when to reinstate.
33        (h)  In  addition,  all  disclosures shall note any other
34    current or pending contracts,  proposals,  leases,  or  other
 
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 1    ongoing  procurement relationships the bidding, proposing, or
 2    offering entity has with any other unit of  State  government
 3    and  shall  clearly  identify  the  unit  and  the  contract,
 4    proposal, lease, or other relationship.
 5    (Source: P.A. 90-572, eff. 2-6-98.)

 6        Section  99.  Effective date.  This Act takes effect upon
 7    becoming law.

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