Bill Text: IL HB2408 | 2013-2014 | 98th General Assembly | Amended

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: 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", "qualified service-disabled veteran-owned small business", and "qualified veteran-owned small business". Effective immediately.

Spectrum: Moderate Partisan Bill (Democrat 13-3)

Status: (Passed) 2013-08-12 - Public Act . . . . . . . . . 98-0307 [HB2408 Detail]

Download: Illinois-2013-HB2408-Amended.html

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Sen. Michael E. Hastings

Filed: 5/13/2013

09800HB2408sam003 LRB098 06361 OMW 45812 a
AMENDMENT TO HOUSE BILL 2408
AMENDMENT NO. ______. Amend House Bill 2408 by replacing
everything after the enacting clause with the following:
"Section 5. The State Finance Act is amended by changing
Section 6z-64 as follows:
(30 ILCS 105/6z-64)
Sec. 6z-64. The Workers' Compensation Revolving Fund.
(a) The Workers' Compensation Revolving Fund is created as
a revolving fund, not subject to fiscal year limitations, in
the State treasury. The following moneys shall be deposited
into the Fund:
(1) amounts authorized for transfer to the Fund from
the General Revenue Fund and other State funds (except for
funds classified by the Comptroller as federal trust funds
or State trust funds) pursuant to State law or Executive
Order;

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(2) federal funds received by the Department of Central
Management Services (the "Department") as a result of
expenditures from the Fund;
(3) interest earned on moneys in the Fund;
(4) receipts or inter-fund transfers resulting from
billings issued to State agencies and universities for the
cost of workers' compensation services that are not
compensated through the specific fund transfers authorized
by this Section, if any;
(5) amounts received from a State agency or university
for workers' compensation payments for temporary total
disability, as provided in Section 405-105 of the
Department of Central Management Services Law of the Civil
Administrative Code of Illinois; and
(6) amounts recovered through subrogation in workers'
compensation and workers' occupational disease cases.
(b) Moneys in the Fund may be used by the Department for
reimbursement or payment for:
(1) providing workers' compensation services to State
agencies and State universities; or
(2) providing for payment of administrative and other
expenses (and, beginning January 1, 2013, fees and charges
made pursuant to a contract with a private vendor) incurred
in providing workers' compensation services. The
Department, or any successor agency designated to enter
into contracts with one or more private vendors for the

09800HB2408sam003 - 3 - LRB098 06361 OMW 45812 a
administration of the workers' compensation program for
State employees pursuant to subsection 10b of Section
405-105 of the Department of Central Management Services
Law of the Civil Administrative Code of Illinois, is
authorized to establish one or more special funds, as
separate accounts provided by any bank or banks as defined
by the Illinois Banking Act, any savings and loan
association or associations as defined by the Illinois
Savings and Loan Act of 1985, or any credit union as
defined by the Illinois Credit Union Act, to be held by the
Director outside of the State treasury, for the purpose of
receiving the transfer of moneys from the Workers'
Compensation Revolving Fund. The Department may promulgate
rules further defining the methodology for the transfers.
Any interest earned by moneys in the funds or accounts
shall be deposited into the Workers' Compensation
Revolving Fund. The transferred moneys, and interest
accrued thereon, shall be used exclusively for transfers to
contracted private vendors or their financial institutions
for payments to workers' compensation claimants and
providers for workers' compensation services, claims, and
benefits pursuant to this Section and subsection 9 of
Section 405-105 of the Department of Central Management
Services Law of the Civil Administrative Code of Illinois.
The transferred moneys, and interest accrued thereon,
shall not be used for any other purpose including, but not

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limited to, reimbursement or payment of administrative
fees due the contracted vendor pursuant to its contract or
contracts with the Department.
(c) State agencies may direct the Comptroller to process
inter-fund transfers or make payment through the voucher and
warrant process to the Workers' Compensation Revolving Fund in
satisfaction of billings issued under subsection (a) of this
Section.
(d) Reconciliation. For the fiscal year beginning on July
1, 2004 only, the Director of Central Management Services (the
"Director") shall order that each State agency's payments and
transfers made to the Fund be reconciled with actual Fund costs
for workers' compensation services provided by the Department
and attributable to the State agency and relevant fund on no
less than an annual basis. The Director may require reports
from State agencies as deemed necessary to perform this
reconciliation.
(d-5) Notwithstanding any other provision of State law to
the contrary, on or after July 1, 2005 and until June 30, 2006,
in addition to any other transfers that may be provided for by
law, at the direction of and upon notification of the Director
of Central Management Services, the State Comptroller shall
direct and the State Treasurer shall transfer amounts into the
Workers' Compensation Revolving Fund from the designated funds
not exceeding the following totals:
Mental Health Fund............................$17,694,000

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Statistical Services Revolving Fund............$1,252,600
Department of Corrections Reimbursement
and Education Fund.........................$1,198,600
Communications Revolving Fund....................$535,400
Child Support Administrative Fund................$441,900
Health Insurance Reserve Fund....................$238,900
Fire Prevention Fund.............................$234,100
Park and Conservation Fund.......................$142,000
Motor Fuel Tax Fund..............................$132,800
Illinois Workers' Compensation
Commission Operations Fund...................$123,900
State Boating Act Fund...........................$112,300
Public Utility Fund..............................$106,500
State Lottery Fund...............................$101,300
Traffic and Criminal Conviction
Surcharge Fund................................$88,500
State Surplus Property Revolving Fund.............$82,700
Natural Areas Acquisition Fund....................$65,600
Securities Audit and Enforcement Fund.............$65,200
Agricultural Premium Fund.........................$63,400
Capital Development Fund..........................$57,500
State Gaming Fund.................................$54,300
Underground Storage Tank Fund.....................$53,700
Illinois State Medical Disciplinary Fund..........$53,000
Personal Property Tax Replacement Fund............$53,000
General Professions Dedicated Fund...............$51,900

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Total $23,003,100
(d-10) Notwithstanding any other provision of State law to
the contrary and in addition to any other transfers that may be
provided for by law, on the first day of each calendar quarter
of the fiscal year beginning July 1, 2005, or as soon as may be
practical thereafter, the State Comptroller shall direct and
the State Treasurer shall transfer from each designated fund
into the Workers' Compensation Revolving Fund amounts equal to
one-fourth of each of the following totals:
General Revenue Fund......................... $34,000,000
Road Fund.................................... $25,987,000
Total $59,987,000
(d-12) Notwithstanding any other provision of State law to
the contrary and in addition to any other transfers that may be
provided for by law, on the effective date of this amendatory
Act of the 94th General Assembly, or as soon as may be
practical thereafter, the State Comptroller shall direct and
the State Treasurer shall transfer from each designated fund
into the Workers' Compensation Revolving Fund the following
amounts:
General Revenue Fund..........................$10,000,000
Road Fund......................................$5,000,000
Total $15,000,000
(d-15) Notwithstanding any other provision of State law to
the contrary and in addition to any other transfers that may be
provided for by law, on July 1, 2006, or as soon as may be

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practical thereafter, the State Comptroller shall direct and
the State Treasurer shall transfer from each designated fund
into the Workers' Compensation Revolving Fund the following
amounts:
General Revenue Fund.........................$44,028,200
Road Fund....................................$28,084,000
Total $72,112,200
(d-20) Notwithstanding any other provision of State law to
the contrary, on or after July 1, 2006 and until June 30, 2007,
in addition to any other transfers that may be provided for by
law, at the direction of and upon notification of the Director
of Central Management Services, the State Comptroller shall
direct and the State Treasurer shall transfer amounts into the
Workers' Compensation Revolving Fund from the designated funds
not exceeding the following totals:
Mental Health Fund............................$19,121,800
Statistical Services Revolving Fund............$1,353,700
Department of Corrections Reimbursement
and Education Fund.........................$1,295,300
Communications Revolving Fund....................$578,600
Child Support Administrative Fund................$477,600
Health Insurance Reserve Fund....................$258,200
Fire Prevention Fund.............................$253,000
Park and Conservation Fund.......................$153,500
Motor Fuel Tax Fund..............................$143,500
Illinois Workers' Compensation

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Commission Operations Fund...................$133,900
State Boating Act Fund...........................$121,400
Public Utility Fund..............................$115,100
State Lottery Fund...............................$109,500
Traffic and Criminal Conviction Surcharge Fund....$95,700
State Surplus Property Revolving Fund.............$89,400
Natural Areas Acquisition Fund....................$70,800
Securities Audit and Enforcement Fund.............$70,400
Agricultural Premium Fund.........................$68,500
State Gaming Fund.................................$58,600
Underground Storage Tank Fund.....................$58,000
Illinois State Medical Disciplinary Fund..........$57,200
Personal Property Tax Replacement Fund............$57,200
General Professions Dedicated Fund...............$56,100
Total $24,797,000
(d-25) Notwithstanding any other provision of State law to
the contrary and in addition to any other transfers that may be
provided for by law, on July 1, 2009, or as soon as may be
practical thereafter, the State Comptroller shall direct and
the State Treasurer shall transfer from each designated fund
into the Workers' Compensation Revolving Fund the following
amounts:
General Revenue Fund.........................$55,000,000
Road Fund....................................$34,803,000
Total $89,803,000
(d-30) Notwithstanding any other provision of State law to

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the contrary, on or after July 1, 2009 and until June 30, 2010,
in addition to any other transfers that may be provided for by
law, at the direction of and upon notification of the Director
of Central Management Services, the State Comptroller shall
direct and the State Treasurer shall transfer amounts into the
Workers' Compensation Revolving Fund from the designated funds
not exceeding the following totals:
Food and Drug Safety Fund.........................$13,900
Teacher Certificate Fee Revolving Fund.............$6,500
Transportation Regulatory Fund....................$14,500
Financial Institution Fund........................$25,200
General Professions Dedicated Fund................$25,300
Illinois Veterans' Rehabilitation Fund............$64,600
State Boating Act Fund...........................$177,100
State Parks Fund.................................$104,300
Lobbyist Registration Administration Fund.........$14,400
Agricultural Premium Fund.........................$79,100
Fire Prevention Fund.............................$360,200
Mental Health Fund.............................$9,725,200
Illinois State Pharmacy Disciplinary Fund..........$5,600
Public Utility Fund...............................$40,900
Radiation Protection Fund.........................$14,200
Firearm Owner's Notification Fund..................$1,300
Solid Waste Management Fund.......................$74,100
Illinois Gaming Law Enforcement Fund..............$17,800
Subtitle D Management Fund........................$14,100

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Illinois State Medical Disciplinary Fund..........$26,500
Facility Licensing Fund...........................$11,700
Plugging and Restoration Fund......................$9,100
Explosives Regulatory Fund.........................$2,300
Aggregate Operations Regulatory Fund...............$5,000
Coal Mining Regulatory Fund........................$1,900
Registered Certified Public Accountants'
Administration and Disciplinary Fund...........$1,500
Weights and Measures Fund.........................$56,100
Division of Corporations Registered
Limited Liability Partnership Fund.............$3,900
Illinois School Asbestos Abatement Fund...........$14,000
Secretary of State Special License Plate Fund.....$30,700
Capital Development Board Revolving Fund..........$27,000
DCFS Children's Services Fund.....................$69,300
Asbestos Abatement Fund...........................$17,200
Illinois Health Facilities Planning Fund..........$26,800
Emergency Public Health Fund.......................$5,600
Nursing Dedicated and Professional Fund...........$10,000
Optometric Licensing and Disciplinary
Board Fund.....................................$1,600
Underground Resources Conservation
Enforcement Fund..............................$11,500
Drunk and Drugged Driving Prevention Fund.........$18,200
Long Term Care Monitor/Receiver Fund..............$35,400
Community Water Supply Laboratory Fund.............$5,600

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Securities Investors Education Fund................$2,000
Used Tire Management Fund.........................$32,400
Natural Areas Acquisition Fund...................$101,200
Open Space Lands Acquisition
and Development Fund..................$28,400
Working Capital Revolving Fund...................$489,100
State Garage Revolving Fund......................$791,900
Statistical Services Revolving Fund............$3,984,700
Communications Revolving Fund..................$1,432,800
Facilities Management Revolving Fund...........$1,911,600
Professional Services Fund.......................$483,600
Motor Vehicle Review Board Fund...................$15,000
Environmental Laboratory Certification Fund........$3,000
Public Health Laboratory Services
Revolving Fund.................................$2,500
Lead Poisoning Screening, Prevention,
and Abatement Fund............................$28,200
Securities Audit and Enforcement Fund............$258,400
Department of Business Services
Special Operations Fund......................$111,900
Feed Control Fund.................................$20,800
Tanning Facility Permit Fund.......................$5,400
Plumbing Licensure and Program Fund...............$24,400
Tax Compliance and Administration Fund............$27,200
Appraisal Administration Fund......................$2,400
Small Business Environmental Assistance Fund.......$2,200

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Illinois State Fair Fund..........................$31,400
Secretary of State Special Services Fund.........$317,600
Department of Corrections Reimbursement
and Education Fund...........................$324,500
Health Facility Plan Review Fund..................$31,200
Illinois Historic Sites Fund......................$11,500
Attorney General Court Ordered and Voluntary
Compliance Payment Projects Fund..............$18,500
Public Pension Regulation Fund.....................$5,600
Illinois Charity Bureau Fund......................$11,400
Renewable Energy Resources Trust Fund..............$6,700
Energy Efficiency Trust Fund.......................$3,600
Pesticide Control Fund............................$56,800
Attorney General Whistleblower Reward
and Protection Fund...........................$14,200
Partners for Conservation Fund....................$36,900
Capital Litigation Trust Fund........................$800
Motor Vehicle License Plate Fund..................$99,700
Horse Racing Fund.................................$18,900
Death Certificate Surcharge Fund..................$12,800
Auction Regulation Administration Fund...............$500
Motor Carrier Safety Inspection Fund..............$55,800
Assisted Living and Shared Housing
Regulatory Fund..................................$900
Illinois Thoroughbred Breeders Fund................$9,200
Illinois Clean Water Fund.........................$42,300

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Secretary of State DUI Administration Fund........$16,100
Child Support Administrative Fund..............$1,037,900
Secretary of State Police Services Fund............$1,200
Tourism Promotion Fund............................$34,400
IMSA Income Fund..................................$12,700
Presidential Library and Museum Operating Fund....$83,000
Dram Shop Fund....................................$44,500
Illinois State Dental Disciplinary Fund............$5,700
Cycle Rider Safety Training Fund...................$8,700
Traffic and Criminal Conviction Surcharge Fund...$106,100
Design Professionals Administration
and Investigation Fund.........................$4,500
State Police Services Fund.......................$276,100
Metabolic Screening and Treatment Fund............$90,800
Insurance Producer Administration Fund............$45,600
Coal Technology Development Assistance Fund.......$11,700
Hearing Instrument Dispenser Examining
and Disciplinary Fund..........................$1,900
Low-Level Radioactive Waste Facility
Development and Operation Fund.................$1,000
Environmental Protection Permit and
Inspection Fund...............................$66,900
Park and Conservation Fund.......................$199,300
Local Tourism Fund.................................$2,400
Illinois Capital Revolving Loan Fund..............$10,000
Large Business Attraction Fund.......................$100

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Adeline Jay Geo-Karis Illinois Beach
Marina Fund...................................$27,200
Public Infrastructure Construction
Loan Revolving Fund............................$1,700
Insurance Financial Regulation Fund...............$69,200
Total $24,197,800
(d-35) Notwithstanding any other provision of State law to
the contrary and in addition to any other transfers that may be
provided for by law, on July 1, 2010, or as soon as may be
practical thereafter, the State Comptroller shall direct and
the State Treasurer shall transfer from each designated fund
into the Workers' Compensation Revolving Fund the following
amounts:
General Revenue Fund.........................$55,000,000
Road Fund....................................$50,955,300
Total $105,955,300
(d-40) Notwithstanding any other provision of State law to
the contrary, on or after July 1, 2010 and until June 30, 2011,
in addition to any other transfers that may be provided for by
law, at the direction of and upon notification of the Director
of Central Management Services, the State Comptroller shall
direct and the State Treasurer shall transfer amounts into the
Workers' Compensation Revolving Fund from the designated funds
not exceeding the following totals:
Food and Drug Safety Fund.........................$8,700
Financial Institution Fund.......................$44,500

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General Professions Dedicated Fund...............$51,400
Live and Learn Fund..............................$10,900
Illinois Veterans' Rehabilitation Fund..........$106,000
State Boating Act Fund..........................$288,200
State Parks Fund................................$185,900
Wildlife and Fish Fund........................$1,550,300
Lobbyist Registration Administration Fund........$18,100
Agricultural Premium Fund.......................$176,100
Mental Health Fund..............................$291,900
Firearm Owner's Notification Fund.................$2,300
Illinois Gaming Law Enforcement Fund.............$11,300
Illinois State Medical Disciplinary Fund.........$42,300
Facility Licensing Fund..........................$14,200
Plugging and Restoration Fund....................$15,600
Explosives Regulatory Fund........................$4,800
Aggregate Operations Regulatory Fund..............$6,000
Coal Mining Regulatory Fund.......................$7,200
Registered Certified Public Accountants'
Administration and Disciplinary Fund..........$1,900
Weights and Measures Fund.......................$105,200
Division of Corporations Registered
Limited Liability Partnership Fund............$5,300
Illinois School Asbestos Abatement Fund..........$19,900
Secretary of State Special License Plate Fund....$38,700
DCFS Children's Services Fund...................$123,100
Illinois Health Facilities Planning Fund.........$29,700

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Emergency Public Health Fund......................$6,800
Nursing Dedicated and Professional Fund..........$13,500
Optometric Licensing and Disciplinary
Board Fund....................................$1,800
Underground Resources Conservation
Enforcement Fund.............................$16,500
Mandatory Arbitration Fund........................$5,400
Drunk and Drugged Driving Prevention Fund........$26,400
Long Term Care Monitor/Receiver Fund.............$43,800
Securities Investors Education Fund..............$28,500
Used Tire Management Fund.........................$6,300
Natural Areas Acquisition Fund..................$185,000
Open Space Lands Acquisition and
Development Fund.............................$46,800
Working Capital Revolving Fund..................$741,500
State Garage Revolving Fund.....................$356,200
Statistical Services Revolving Fund...........$1,775,900
Communications Revolving Fund...................$630,600
Facilities Management Revolving Fund............$870,800
Professional Services Fund......................$275,500
Motor Vehicle Review Board Fund..................$12,900
Public Health Laboratory Services
Revolving Fund................................$5,300
Lead Poisoning Screening, Prevention,
and Abatement Fund...........................$42,100
Securities Audit and Enforcement Fund...........$162,700

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Department of Business Services
Special Operations Fund.....................$143,700
Feed Control Fund................................$32,300
Tanning Facility Permit Fund......................$3,900
Plumbing Licensure and Program Fund..............$32,600
Tax Compliance and Administration Fund...........$48,400
Appraisal Administration Fund.....................$3,600
Illinois State Fair Fund.........................$30,200
Secretary of State Special Services Fund........$214,400
Department of Corrections Reimbursement
and Education Fund..........................$438,300
Health Facility Plan Review Fund.................$29,900
Public Pension Regulation Fund....................$9,900
Pesticide Control Fund..........................$107,500
Partners for Conservation Fund..................$189,300
Motor Vehicle License Plate Fund................$143,800
Horse Racing Fund................................$20,900
Death Certificate Surcharge Fund.................$16,800
Auction Regulation Administration Fund............$1,000
Motor Carrier Safety Inspection Fund.............$56,800
Assisted Living and Shared Housing
Regulatory Fund...............................$2,200
Illinois Thoroughbred Breeders Fund..............$18,100
Secretary of State DUI Administration Fund.......$19,800
Child Support Administrative Fund.............$1,809,500
Secretary of State Police Services Fund...........$2,500

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Medical Special Purposes Trust Fund..............$20,400
Dram Shop Fund...................................$57,200
Illinois State Dental Disciplinary Fund...........$9,500
Cycle Rider Safety Training Fund.................$12,200
Traffic and Criminal Conviction Surcharge Fund..$128,900
Design Professionals Administration
and Investigation Fund........................$7,300
State Police Services Fund......................$335,700
Metabolic Screening and Treatment Fund...........$81,600
Insurance Producer Administration Fund...........$77,000
Hearing Instrument Dispenser Examining
and Disciplinary Fund.........................$1,900
Park and Conservation Fund......................$361,500
Adeline Jay Geo-Karis Illinois Beach
Marina Fund..................................$42,800
Insurance Financial Regulation Fund.............$108,000
Total $13,033,200
(d-45) Notwithstanding any other provision of State law to
the contrary and in addition to any other transfers that may be
provided for by law, on July 1, 2011, or as soon as may be
practical thereafter, the State Comptroller shall direct and
the State Treasurer shall transfer the sum of $45,000,000 from
the General Revenue Fund into the Workers' Compensation
Revolving Fund.
(e) The term "workers' compensation services" means
services, claims expenses, and related administrative costs

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incurred in performing the duties under Sections 405-105 and
405-411 of the Department of Central Management Services Law of
the Civil Administrative Code of Illinois.
(Source: P.A. 96-45, eff. 7-15-09; 96-959, eff. 7-1-10; 97-641,
eff. 12-19-11; 97-895, eff. 8-3-12.)
Section 10. The Illinois Procurement Code is amended by
changing Section 45-57 as follows:
(30 ILCS 500/45-57)
Sec. 45-57. Veterans.
(a) Set-aside goal. It is the goal of the State to promote
and encourage the continued economic development of small
businesses owned and controlled by qualified veterans and that
qualified service-disabled veteran-owned small businesses
(referred to as SDVOSB) and veteran-owned small businesses
(referred to as VOSB) participate in the State's procurement
process as both prime contractors and subcontractors. Not less
than 3% of the total dollar amount of State contracts, as
defined by the Director of Central Management Services, shall
be established as a goal to be awarded to SDVOSB and VOSB. That
portion of a contract under which the contractor subcontracts
with a SDVOSB or VOSB may be counted toward the goal of this
subsection. The Department of Central Management Services
shall adopt rules to implement compliance with this subsection
by all State agencies.

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

09800HB2408sam003 - 21 - LRB098 06361 OMW 45812 a
shall recommend to the General Assembly changes in programs to
assist businesses owned by qualified veterans.
(e) Definitions. As used in this Section:
"Armed forces of the United States" means the United States
Army, Navy, Air Force, Marine Corps, Coast Guard, or service in
active duty as defined under 38 U.S.C. Section 101. Service in
the Merchant Marine that constitutes active duty under Section
401 of federal Public Act 95-202 shall also be considered
service in the armed forces for purposes of this Section.
"Certification" means a determination made by the Illinois
Department of Veterans' Affairs and the Department of Central
Management Services that a business entity is a qualified
service-disabled veteran-owned small business or a qualified
veteran-owned small business for whatever purpose. A SDVOSB or
VOSB owned and controlled by females, minorities, or persons
with disabilities, as those terms are defined in Section 2 of
the Business Enterprise for Minorities, Females, and Persons
with Disabilities Act, may also shall select and designate
whether that business is to be certified as a "female-owned
business", "minority-owned business", or "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, or as a qualified SDVOSB or qualified VOSB
under this Section.
"Control" means the exclusive, ultimate, majority, or sole
control of the business, including but not limited to capital

09800HB2408sam003 - 22 - LRB098 06361 OMW 45812 a
investment and all other financial matters, property,
acquisitions, contract negotiations, legal matters,
officer-director-employee selection and comprehensive hiring,
operation responsibilities, cost-control matters, income and
dividend matters, financial transactions, and rights of other
shareholders or joint partners. Control shall be real,
substantial, and continuing, not pro forma. Control shall
include the power to direct or cause the direction of the
management and policies of the business and to make the
day-to-day as well as major decisions in matters of policy,
management, and operations. Control shall be exemplified by
possessing the requisite knowledge and expertise to run the
particular business, and control shall not include simple
majority or absentee ownership.
"Qualified service-disabled veteran" means a veteran who
has been found to have 10% or more service-connected disability
by the United States Department of Veterans Affairs or the
United States Department of Defense.
"Qualified service-disabled veteran-owned small business"
or "SDVOSB" means a small business (i) that is at least 51%
owned by one or more qualified service-disabled veterans living
in Illinois or, in the case of a corporation, at least 51% of
the stock of which is owned by one or more qualified
service-disabled veterans living in Illinois; (ii) that has its
home office in Illinois; and (iii) for which items (i) and (ii)
are factually verified annually by the Department of Central

09800HB2408sam003 - 23 - LRB098 06361 OMW 45812 a
Management Services.
"Qualified veteran-owned small business" or "VOSB" means a
small business (i) that is at least 51% owned by one or more
qualified veterans living in Illinois or, in the case of a
corporation, at least 51% of the stock of which is owned by one
or more qualified veterans living in Illinois; (ii) that has
its home office in Illinois; and (iii) for which items (i) and
(ii) are factually verified annually by the Department of
Central Management Services.
"Service-connected disability" means a disability incurred
in the line of duty in the active military, naval, or air
service as described in 38 U.S.C. 101(16).
"Small business" means a business that has annual gross
sales of less than $75,000,000 as evidenced by the federal
income tax return of the business. A firm with gross sales in
excess of this cap may apply to the Department of Central
Management Services for certification for a particular
contract if the firm can demonstrate that the contract would
have significant impact on SDVOSB or VOSB as suppliers or
subcontractors or in employment of veterans or
service-disabled veterans.
"State agency" has the same meaning as in Section 2 of the
Business Enterprise for Minorities, Females, and Persons with
Disabilities Act.
"Time of hostilities with a foreign country" means any
period of time in the past, present, or future during which a

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

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Central Management Services shall suspend any person who
commits a violation of Section 17-10.3 or subsection (d) of
Section 33E-6 of the Criminal Code of 1961 or the Criminal
Code of 2012 relating to this Section from bidding on, or
participating as a contractor, subcontractor, or supplier
in, any State contract or project for a period of not less
than 3 years, and, if the person is certified as a
service-disabled veteran-owned small business or a
veteran-owned small business, then the Department shall
revoke the business's certification for a period of not
less than 3 years. An additional or subsequent violation
shall extend the periods of suspension and revocation for a
period of not less than 5 years. The suspension and
revocation shall apply to the principals of the business
and any subsequent business formed or financed by, or
affiliated with, those principals.
(2) Reports of violations. Each State agency shall
report any alleged violation of Section 17-10.3 or
subsection (d) of Section 33E-6 of the Criminal Code of
1961 or the Criminal Code of 2012 relating to this Section
to the Department of Central Management Services. The
Department of Central Management Services shall
subsequently report all such alleged violations to the
Attorney General, who shall determine whether to bring a
civil action against any person for the violation.
(3) List of suspended persons. The Department of

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Central Management Services shall monitor the status of all
reported violations of Section 17-10.3 or subsection (d) of
Section 33E-6 of the Criminal Code of 1961 or the Criminal
Code of 2012 relating to this Section and shall maintain
and make available to all State agencies a central listing
of all persons that committed violations resulting in
suspension.
(4) Use of suspended persons. During the period of a
person's suspension under paragraph (1) of this
subsection, a State agency shall not enter into any
contract with that person or with any contractor using the
services of that person as a subcontractor.
(5) Duty to check list. Each State agency shall check
the central listing provided by the Department of Central
Management Services under paragraph (3) of this subsection
to verify that a person being awarded a contract by that
State agency, or to be used as a subcontractor or supplier
on a contract being awarded by that State agency, is not
under suspension pursuant to paragraph (1) of this
subsection.
(Source: P.A. 96-96, eff. 1-1-10; 97-260, eff. 8-5-11; 97-1150,
eff. 1-25-13.)
Section 99. Effective date. This Act takes effect upon
becoming law.".