Bill Text: IL SB1680 | 2019-2020 | 101st General Assembly | Engrossed
Bill Title: Amends the Illinois Procurement Code. Provides that each chief procurement officer has authority to designate as veteran small business set-asides a fair proportion of construction, supply, and service contracts for awards to qualified service-disabled veteran-owned small businesses or veteran-owned small businesses. Provides further requirements concerning veteran small business set-aside designations. Requires each chief procurement officer to report to the General Assembly (currently, Department of Central Management Services) on specified information concerning qualified service-disabled veteran-owned small businesses and veteran-owned small businesses, and requires that the number of bids or offers will be delineated between contracts that were designated as set-aside and those that were not designated as set-aside. Makes other changes.
Spectrum: Partisan Bill (Democrat 8-0)
Status: (Failed) 2021-01-13 - Session Sine Die [SB1680 Detail]
Download: Illinois-2019-SB1680-Engrossed.html
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1 | AN ACT concerning finance.
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2 | Be it enacted by the People of the State of Illinois,
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3 | represented in the General Assembly:
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4 | Section 5. The Illinois Procurement Code is amended by | ||||||
5 | changing Section 45-57 as follows:
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6 | (30 ILCS 500/45-57) | ||||||
7 | Sec. 45-57. Veterans. | ||||||
8 | (a) Goal Set-aside goal . It is the goal of the State to | ||||||
9 | promote and encourage the continued economic development of | ||||||
10 | small businesses owned and controlled by qualified veterans and | ||||||
11 | that qualified 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 | ||||||
14 | process as both prime contractors and subcontractors. Not less | ||||||
15 | than 3% of the total dollar amount of State contracts, as | ||||||
16 | defined by the Director of Central Management Services, shall | ||||||
17 | be established as a goal to be awarded to SDVOSB and VOSB. That
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18 | portion of a contract under which the contractor subcontracts
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19 | with a SDVOSB or VOSB may be counted toward the
goal of this | ||||||
20 | subsection. The Department of Central Management Services | ||||||
21 | shall adopt rules to implement compliance with this subsection | ||||||
22 | by all State agencies. | ||||||
23 | (a-5) Set-asides. Each chief procurement officer has |
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1 | authority to designate as veteran small business set-asides a | ||||||
2 | fair proportion of construction, supply, and service contracts | ||||||
3 | for awards to qualified service-disabled veteran-owned small | ||||||
4 | businesses or veteran-owned small businesses. Advertisements | ||||||
5 | for bids or offers for such contracts shall specify designation | ||||||
6 | as veteran small business set-asides. In awarding the | ||||||
7 | contracts, only bids or offers from qualified service-disabled | ||||||
8 | veteran-owned small businesses or veteran-owned small | ||||||
9 | businesses shall be considered. | ||||||
10 | (1) A veteran small business set-aside designation may | ||||||
11 | be withdrawn by the purchasing agency when deemed in the | ||||||
12 | best interests of the State. Upon withdrawal, all bids or | ||||||
13 | offers shall be rejected, and the bidders or offerors shall | ||||||
14 | be notified of the reason for rejection. The contract shall | ||||||
15 | then be awarded in accordance with this Code without the | ||||||
16 | designation of veteran small business set-aside. | ||||||
17 | (2) Each chief procurement officer may adopt rules to | ||||||
18 | implement and administer the use of set-asides. | ||||||
19 | (b) Fiscal year reports. By each November 1, each chief | ||||||
20 | procurement officer shall report to the Department of Central | ||||||
21 | Management Services on all of the following for the immediately | ||||||
22 | preceding fiscal year, and by each March 1 the Department of | ||||||
23 | Central Management Services shall compile and report that | ||||||
24 | information to the General Assembly: | ||||||
25 | (1) The total number of VOSB, and the number of SDVOSB, | ||||||
26 | who submitted bids or offers for contracts under this Code. |
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1 | The number of bids or offers will be delineated between | ||||||
2 | contracts that were set-aside under subsection (a-5) and | ||||||
3 | those that were not set-aside. | ||||||
4 | (2) The total number of VOSB, and the number of SDVOSB, | ||||||
5 | who entered into contracts with the State under this Code | ||||||
6 | and the total value of those contracts. The number of | ||||||
7 | contracts and the value of contracts will be delineated | ||||||
8 | between contracts that were awarded as set-asides under | ||||||
9 | subsection (a-5) and those that were not set-aside. | ||||||
10 | The requirement for reporting to the General Assembly under | ||||||
11 | this subsection (b) shall be satisfied by filing copies of the | ||||||
12 | report as required by Section 3.1 of the General Assembly | ||||||
13 | Organization Act. | ||||||
14 | (c) Yearly review and recommendations. Each year, each | ||||||
15 | chief procurement officer shall review the progress of all | ||||||
16 | State agencies under its jurisdiction in meeting the goal | ||||||
17 | described in subsection (a), with input from statewide | ||||||
18 | veterans' service organizations and from the business | ||||||
19 | community, including businesses owned by qualified veterans, | ||||||
20 | and shall make recommendations to be included in the Department | ||||||
21 | of Central Management Services' report to the General Assembly | ||||||
22 | regarding continuation, increases, or decreases of the | ||||||
23 | percentage goal. The recommendations shall be based upon the | ||||||
24 | number of businesses that are owned by qualified veterans and | ||||||
25 | on the continued need to encourage and promote businesses owned | ||||||
26 | by qualified veterans. |
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1 | (d) Governor's recommendations. To assist the State in | ||||||
2 | reaching the goal described in subsection (a), the Governor | ||||||
3 | shall recommend to the General Assembly changes in programs to | ||||||
4 | assist businesses owned by qualified veterans. | ||||||
5 | (e) Definitions. As used in this Section: | ||||||
6 | "Armed forces of the United States" means the United States | ||||||
7 | Army, Navy, Air Force, Marine Corps, Coast Guard, or service in | ||||||
8 | active duty as defined under 38 U.S.C. Section 101. Service in | ||||||
9 | the Merchant Marine that constitutes active duty under Section | ||||||
10 | 401 of federal Public Act 95-202 shall also be considered | ||||||
11 | service in the armed forces for purposes of this Section. | ||||||
12 | "Certification" means a determination made by the Illinois | ||||||
13 | Department of Veterans' Affairs and the Department of Central | ||||||
14 | Management Services that a business entity is a qualified | ||||||
15 | service-disabled veteran-owned small business or a qualified | ||||||
16 | veteran-owned small business for whatever purpose. A SDVOSB or | ||||||
17 | VOSB owned and controlled by women, minorities, or persons with | ||||||
18 | disabilities, as those terms are defined in Section 2 of the | ||||||
19 | Business Enterprise for Minorities, Women, and Persons with | ||||||
20 | Disabilities Act, may also select and designate whether that | ||||||
21 | business is to be certified as a "women-owned business", | ||||||
22 | "minority-owned business", or "business owned by a person with | ||||||
23 | a disability", as defined in Section 2 of the Business | ||||||
24 | Enterprise for Minorities, Women, and Persons with | ||||||
25 | Disabilities Act. | ||||||
26 | "Control" means the exclusive, ultimate, majority, or sole |
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1 | control of the business, including but not limited to capital | ||||||
2 | investment and all other financial matters, property, | ||||||
3 | acquisitions, contract negotiations, legal matters, | ||||||
4 | officer-director-employee selection and comprehensive hiring, | ||||||
5 | operation responsibilities, cost-control matters, income and | ||||||
6 | dividend matters, financial transactions, and rights of other | ||||||
7 | shareholders or joint partners. Control shall be real, | ||||||
8 | substantial, and continuing, not pro forma. Control shall | ||||||
9 | include the power to direct or cause the direction of the | ||||||
10 | management and policies of the business and to make the | ||||||
11 | day-to-day as well as major decisions in matters of policy, | ||||||
12 | management, and operations. Control shall be exemplified by | ||||||
13 | possessing the requisite knowledge and expertise to run the | ||||||
14 | particular business, and control shall not include simple | ||||||
15 | majority or absentee ownership. | ||||||
16 | "Qualified service-disabled veteran" means a
veteran who | ||||||
17 | has been found to have 10% or more service-connected disability | ||||||
18 | by the United States Department of Veterans Affairs or the | ||||||
19 | United States Department of Defense. | ||||||
20 | "Qualified service-disabled veteran-owned small business" | ||||||
21 | or "SDVOSB" means a small business (i) that is at least 51% | ||||||
22 | owned by one or more qualified service-disabled veterans living | ||||||
23 | in Illinois or, in the case of a corporation, at least 51% of | ||||||
24 | the stock of which is owned by one or more qualified | ||||||
25 | service-disabled veterans living in Illinois; (ii) that has its | ||||||
26 | home office in Illinois; and (iii) for which items (i) and (ii) |
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1 | are factually verified annually by the Department of Central | ||||||
2 | Management Services. | ||||||
3 | "Qualified veteran-owned small business" or "VOSB" means a | ||||||
4 | small business (i) that is at least 51% owned by one or more | ||||||
5 | qualified veterans living in Illinois or, in the case of a | ||||||
6 | corporation, at least 51% of the stock of which is owned by one | ||||||
7 | or more qualified veterans living in Illinois; (ii) that has | ||||||
8 | its home office in Illinois; and (iii) for which items (i) and | ||||||
9 | (ii) are factually verified annually by the Department of | ||||||
10 | Central Management Services. | ||||||
11 | "Service-connected disability" means a disability incurred | ||||||
12 | in the line of duty in the active military, naval, or air | ||||||
13 | service as described in 38 U.S.C. 101(16). | ||||||
14 | "Small business" means a business that has annual gross | ||||||
15 | sales of less than $75,000,000 as evidenced by the federal | ||||||
16 | income tax return of the business. A firm with gross sales in | ||||||
17 | excess of this cap may apply to the Department of Central | ||||||
18 | Management Services for certification for a particular | ||||||
19 | contract if the firm can demonstrate that the contract would | ||||||
20 | have significant impact on SDVOSB or VOSB as suppliers or | ||||||
21 | subcontractors or in employment of veterans or | ||||||
22 | service-disabled veterans. | ||||||
23 | "State agency" has the meaning provided in Section 1-15.100 | ||||||
24 | of this Code. | ||||||
25 | "Time of hostilities with a foreign country" means any | ||||||
26 | period of time in the past, present, or future during which a |
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1 | declaration of war by the United States Congress has been or is | ||||||
2 | in effect or during which an emergency condition has been or is | ||||||
3 | in effect that is recognized by the issuance of a Presidential | ||||||
4 | proclamation or a Presidential executive order and in which the | ||||||
5 | armed forces expeditionary medal or other campaign service | ||||||
6 | medals are awarded according to Presidential executive order. | ||||||
7 | "Veteran" means a person who (i) has been a member of the | ||||||
8 | armed forces of the United States or, while a citizen of the | ||||||
9 | United States, was a member of the armed forces of allies of | ||||||
10 | the United States in time of hostilities with a foreign country | ||||||
11 | and (ii) has served under one or more of the following | ||||||
12 | conditions: (a) the veteran served a total of at least 6 | ||||||
13 | months; (b) the veteran served for the duration of hostilities | ||||||
14 | regardless of the length of the engagement; (c) the veteran was | ||||||
15 | discharged on the basis of hardship; or (d) the veteran was | ||||||
16 | released from active duty because of a service connected | ||||||
17 | disability and was discharged under honorable conditions. | ||||||
18 | (f) Certification program. The Illinois Department of | ||||||
19 | Veterans' Affairs and the Department of Central Management | ||||||
20 | Services shall work together to devise a certification | ||||||
21 | procedure to assure that businesses taking advantage of this | ||||||
22 | Section are legitimately classified as qualified | ||||||
23 | service-disabled veteran-owned small businesses or qualified | ||||||
24 | veteran-owned small businesses.
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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. 100-43, eff. 8-9-17; 100-391, eff. 8-25-17; | ||||||
22 | 100-863, eff. 8-14-18.)
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