Bill Text: IL SB2382 | 2013-2014 | 98th General Assembly | Introduced

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Bill Title: Amends the Illinois Procurement Code. Prohibits campaign contributions from grantees with pending or actual annual aggregate awards of State grant funds totalling more than $50,000, or from the affiliated entities and affiliated persons of such grantees, to any political committees established to promote the candidacy of (i) the executive branch constitutional officeholder responsible for awarding the grant funds or (ii) a declared candidate for that office. Specifies the duration of the prohibitions and the penalties for violations.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Failed) 2015-01-13 - Session Sine Die [SB2382 Detail]

Download: Illinois-2013-SB2382-Introduced.html

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98TH GENERAL ASSEMBLY State of Illinois 2013 and 2014 SB2382 Introduced 2/15/2013, by Sen. Christine Radogno SYNOPSIS AS INTRODUCED:
30 ILCS 500/50-37
Amends the Illinois Procurement Code. Prohibits campaign contributions from grantees with pending or actual annual aggregate awards of State grant funds totalling more than $50,000, or from the affiliated entities and affiliated persons of such grantees, to any political committees established to promote the candidacy of (i) the executive branch constitutional officeholder responsible for awarding the grant funds or (ii) a declared candidate for that office. Specifies the duration of the prohibitions and the penalties for violations.
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A BILL FOR
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AN ACT concerning finance.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Illinois Procurement Code is amended by
changing Section 50-37 as follows:
(30 ILCS 500/50-37)
Sec. 50-37. Prohibition of political contributions.
(a) As used in this Section:
The terms "contract", "State contract", and "contract
with a State agency" each mean any contract, as defined in
this Code, between a business entity and a State agency let
or awarded pursuant to this Code. The terms "contract",
"State contract", and "contract with a State agency" do not
include cost reimbursement contracts; purchase of care
agreements as defined in Section 1-15.68 of this Code;
contracts for projects eligible for full or partial
federal-aid funding reimbursements authorized by the
Federal Highway Administration; grants, including but are
not limited to grants for job training or transportation;
and grants, loans, or tax credit agreements for economic
development purposes.
"Contribution" means a contribution as defined in
Section 9-1.4 of the Election Code.

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"Declared candidate" means a person who has filed a
statement of candidacy and petition for nomination or
election in the principal office of the State Board of
Elections.
"State agency" means and includes all boards,
commissions, agencies, institutions, authorities, and
bodies politic and corporate of the State, created by or in
accordance with the Illinois Constitution or State
statute, of the executive branch of State government and
does include colleges, universities, public employee
retirement systems, and institutions under the
jurisdiction of the governing boards of the University of
Illinois, Southern Illinois University, Illinois State
University, Eastern Illinois University, Northern Illinois
University, Western Illinois University, Chicago State
University, Governors State University, Northeastern
Illinois University, and the Illinois Board of Higher
Education.
"Officeholder" means the Governor, Lieutenant
Governor, Attorney General, Secretary of State,
Comptroller, or Treasurer. The Governor shall be
considered the officeholder responsible for awarding all
contracts by all officers and employees of, and vendors and
others doing business with, executive branch State
agencies under the jurisdiction of the Executive Ethics
Commission and not within the jurisdiction of the Attorney

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General, the Secretary of State, the Comptroller, or the
Treasurer.
"Sponsoring entity" means a sponsoring entity as
defined in Section 9-3 of the Election Code.
"Affiliated person" means (i) any person with any
ownership interest or distributive share in excess of 7.5%
of the bidding or contracting business entity or the
grantee, whichever is applicable in excess of 7.5%, (ii)
executive employees of the bidding or contracting business
entity or the grantee, whichever is applicable, and (iii)
the spouse of any such persons. "Affiliated person" does
not include a person prohibited by federal law from making
contributions or expenditures in connection with a
federal, state, or local election.
"Affiliated entity" means (i) any corporate parent and
each operating subsidiary of the bidding or contracting
business entity or the grantee, whichever is applicable,
(ii) each operating subsidiary of the corporate parent of
the bidding or contracting business entity or the grantee,
whichever is applicable, (iii) any organization recognized
by the United States Internal Revenue Service as a
tax-exempt organization described in Section 501(c) of the
Internal Revenue Code of 1986 (or any successor provision
of federal tax law) established by the bidding or
contracting business entity or the grantee, whichever is
applicable, any affiliated entity of that business entity

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or grantee, whichever is applicable, or any affiliated
person of that business entity or grantee, whichever is
applicable, or (iv) any political committee for which the
bidding or contracting business entity or the grantee, or
any 501(c) organization described in item (iii) related to
that business entity or grantee, is the sponsoring entity.
"Affiliated entity" does not include an entity prohibited
by federal law from making contributions or expenditures in
connection with a federal, state, or local election.
"Business entity" means any entity doing business for
profit, whether organized as a corporation, partnership,
sole proprietorship, limited liability company or
partnership, or otherwise.
"Executive employee" means (i) the President,
Chairman, or Chief Executive Officer of a business entity
or grantee, as well as and any other individual that
fulfills equivalent duties as the President, Chairman of
the Board, or Chief Executive Officer of a business entity
or grantee; and (ii) any employee of a business entity or
grantee whose compensation is determined directly, in
whole or in part, by the award or payment of contracts or
grant funds by a State agency to the entity employing the
employee. A regular salary that is paid irrespective of the
award or payment of grant funds from, or a contract with, a
State agency shall not constitute "compensation" under
item (ii) of this definition. "Executive employee" does not

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include any person prohibited by federal law from making
contributions or expenditures in connection with a
federal, state, or local election.
"Grant funds" has the meaning established in
subsection (b) of Section 2 of the Illinois Grant Funds
Recovery Act.
"Grantee" means any entity that applies for or receives
grant funds from a State agency, whether organized as a
corporation, partnership, sole proprietorship, limited
liability company or partnership, or otherwise.
(b) Any business entity whose contracts with State
agencies, in the aggregate, annually total more than $50,000,
and any affiliated entities or affiliated persons of such
business entity, are prohibited from making any contributions
to any political committees established to promote the
candidacy of (i) the officeholder responsible for awarding the
contracts or (ii) any other declared candidate for that office.
This prohibition shall be effective for the duration of the
term of office of the incumbent officeholder awarding the
contracts or for a period of 2 years following the expiration
or termination of the contracts, whichever is longer.
(b-1) Any grantee whose awards of grant funds from State
agencies, in the aggregate, annually total more than $50,000,
as well as any affiliated entity or affiliated person of the
grantee, is prohibited from making any contributions to any
political committees established to promote the candidacy of

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(i) the officeholder responsible for awarding the grant funds
or (ii) any other declared candidate for that office. This
prohibition shall be effective for the duration of the term of
office of the incumbent officeholder awarding the grant funds
or for a period of 2 years following the expiration or
termination of the grants, whichever is longer.
(c) Any business entity whose aggregate pending bids and
proposals on State contracts total more than $50,000, or whose
aggregate pending bids and proposals on State contracts
combined with the business entity's aggregate annual total
value of State contracts exceed $50,000, and any affiliated
entities or affiliated persons of such business entity, are
prohibited from making any contributions to any political
committee established to promote the candidacy of the
officeholder responsible for awarding the contract on which the
business entity has submitted a bid or proposal during the
period beginning on the date the invitation for bids or request
for proposals is issued and ending on the day after the date
the contract is awarded.
(c-1) Any grantee whose aggregate pending applications for
grant funds from a State agency total more than $50,000, or
whose aggregate pending applications for grant funds combined
with the grantee's aggregate annual total value of grant funds
exceed $50,000, as well as any affiliated entity or affiliated
person of the grantee, is prohibited from making any
contributions to any political committee established to

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promote the candidacy of the officeholder responsible for
awarding the grant funds for which the grantee has submitted an
application during the period beginning on the date the award
of grant funds is announced and ending on the day after the
date the grant funds are awarded.
(c-5) For the purposes of the prohibitions under
subsections (b), (b-1), and (c), and (c-1) of this Section, (i)
any contribution made to a political committee established to
promote the candidacy of the Governor or a declared candidate
for the office of Governor shall also be considered as having
been made to a political committee established to promote the
candidacy of the Lieutenant Governor, in the case of the
Governor, or the declared candidate for Lieutenant Governor
having filed a joint petition, or write-in declaration of
intent, with the declared candidate for Governor, as
applicable, and (ii) any contribution made to a political
committee established to promote the candidacy of the
Lieutenant Governor or a declared candidate for the office of
Lieutenant Governor shall also be considered as having been
made to a political committee established to promote the
candidacy of the Governor, in the case of the Lieutenant
Governor, or the declared candidate for Governor having filed a
joint petition, or write-in declaration of intent, with the
declared candidate for Lieutenant Governor, as applicable.
(d) All contracts between State agencies and a business
entity that violate subsection (b) or (c) shall be voidable

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under Section 50-60, and all awards of grant funds by State
agency to a grant recipient entity that violate subsection
(b-1) or (c-1) shall also be voidable. If a business entity
violates subsection (b) 3 or more times within a 36-month
period, then all contracts between State agencies and that
business entity shall be void, and that business entity shall
not bid or respond to any invitation to bid or request for
proposals from any State agency or otherwise enter into any
contract with any State agency for 3 years from the date of the
last violation. If a grantee violates subsection (b-1) 3 or
more times within a 36-month period, then all awards of grant
funds between State agencies and that grantee shall be void,
and that grantee shall not apply for any award of grant funds
from any State agency for 3 years from the date of the last
violation. A notice of each violation and the penalty imposed
shall be published in both the Procurement Bulletin and the
Illinois Register.
(e) Any political committee that has received a
contribution in violation of subsection (b), (b-1), or (c) , or
(c-1) shall pay an amount equal to the value of the
contribution to the State no more than 30 days after notice of
the violation concerning the contribution appears in the
Illinois Register. Payments received by the State pursuant to
this subsection shall be deposited into the general revenue
fund.

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(Source: P.A. 96-795, eff. 7-1-10 (see Section 5 of P.A. 96-793
for the effective date of changes made by P.A. 96-795); 96-848,
eff. 1-1-10; 97-411, eff. 8-16-11.)