98TH GENERAL ASSEMBLY State of Illinois 2013 and 2014 HB2408

Introduced , by Rep. Jerry F. Costello, II - Linda Chapa LaVia

SYNOPSIS AS INTRODUCED:

30 ILCS 500/45-57

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", as defined in Section 2 of the Business Enterprise for Minorities, Females, and Persons with Disabilities Act, "qualified service-disabled veteran-owned small business", and "qualified veteran-owned small business" under this Section. Effective immediately.

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A BILL FOR

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1 AN ACT concerning finance.

2 Be it enacted by the People of the State of Illinois,

3 represented in the General Assembly:

4 Section 5. The Illinois Procurement Code is amended by

5 changing Section 45-57 as follows:

6 (30 ILCS 500/45-57)

7 Sec. 45-57. Veterans.

8 (a) Set-aside goal. It is the goal of the State to promote

9 and encourage the continued economic development of small

10 businesses owned and controlled by qualified veterans and that

11 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

18 portion of a contract under which the contractor subcontracts

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 (b) Fiscal year reports. By each September 1, each chief

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1 procurement officer shall report to the Department of Central

2 Management Services on all of the following for the immediately

3 preceding fiscal year, and by each March 1 the Department of

4 Central Management Services shall compile and report that

5 information to the General Assembly:

6 (1) The total number of VOSB, and the number of SDVOSB,

7 who submitted bids for contracts under this Code.

8 (2) The total number of VOSB, and the number of SDVOSB,

9 who entered into contracts with the State under this Code

10 and the total value of those contracts.

11 (c) Yearly review and recommendations. Each year, each

12 chief procurement officer shall review the progress of all

13 State agencies under its jurisdiction in meeting the goal

14 described in subsection (a), with input from statewide

15 veterans' service organizations and from the business

16 community, including businesses owned by qualified veterans,

17 and shall make recommendations to be included in the Department

18 of Central Management Services' report to the General Assembly

19 regarding continuation, increases, or decreases of the

20 percentage goal. The recommendations shall be based upon the

21 number of businesses that are owned by qualified veterans and

22 on the continued need to encourage and promote businesses owned

23 by qualified veterans.

24 (d) Governor's recommendations. To assist the State in

25 reaching the goal described in subsection (a), the Governor

26 shall recommend to the General Assembly changes in programs to

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1 assist businesses owned by qualified veterans.

2 (e) Definitions. As used in this Section:

3 "Armed forces of the United States" means the United States

4 Army, Navy, Air Force, Marine Corps, Coast Guard, or service in

5 active duty as defined under 38 U.S.C. Section 101. Service in

6 the Merchant Marine that constitutes active duty under Section

7 401 of federal Public Act 95-202 shall also be considered

8 service in the armed forces for purposes of this Section.

9 "Certification" means a determination made by the Illinois

10 Department of Veterans' Affairs and the Department of Central

11 Management Services that a business entity is a qualified

12 service-disabled veteran-owned small business or a qualified

13 veteran-owned small business for whatever purpose. A SDVOSB or

14 VOSB owned and controlled by females, minorities, or persons

15 with disabilities, or any combination thereof, as those terms

16 are defined in Section 2 of the Business Enterprise for

17 Minorities, Females, and Persons with Disabilities Act, shall

18 be certified as any number of the following that apply: "female

19 owned business", "minority owned business", "business owned by

20 a person with a disability", as defined in Section 2 of the

21 Business Enterprise for Minorities, Females, and Persons with

22 Disabilities Act, "qualified service-disabled veteran-owned

23 small business", and "qualified veteran-owned small business"

24 under this Section. ~~shall select and designate whether that~~

25 ~~business is to be certified as a "female-owned business",~~

26 ~~"minority-owned business", or "business owned by a person with~~

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1 ~~a disability", as defined in Section 2 of the Business~~

2 ~~Enterprise for Minorities, Females, and Persons with~~

3 ~~Disabilities Act, or as a qualified SDVOSB or qualified VOSB~~

4 ~~under this Section~~.

5 "Control" means the exclusive, ultimate, majority, or sole

6 control of the business, including but not limited to capital

7 investment and all other financial matters, property,

8 acquisitions, contract negotiations, legal matters,

9 officer-director-employee selection and comprehensive hiring,

10 operation responsibilities, cost-control matters, income and

11 dividend matters, financial transactions, and rights of other

12 shareholders or joint partners. Control shall be real,

13 substantial, and continuing, not pro forma. Control shall

14 include the power to direct or cause the direction of the

15 management and policies of the business and to make the

16 day-to-day as well as major decisions in matters of policy,

17 management, and operations. Control shall be exemplified by

18 possessing the requisite knowledge and expertise to run the

19 particular business, and control shall not include simple

20 majority or absentee ownership.

21 "Qualified service-disabled veteran" means a veteran who

22 has been found to have 10% or more service-connected disability

23 by the United States Department of Veterans Affairs or the

24 United States Department of Defense.

25 "Qualified service-disabled veteran-owned small business"

26 or "SDVOSB" means a small business (i) that is at least 51%

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1 owned by one or more qualified service-disabled veterans living

2 in Illinois or, in the case of a corporation, at least 51% of

3 the stock of which is owned by one or more qualified

4 service-disabled veterans living in Illinois; (ii) that has its

5 home office in Illinois; and (iii) for which items (i) and (ii)

6 are factually verified annually by the Department of Central

7 Management Services.

8 "Qualified veteran-owned small business" or "VOSB" means a

9 small business (i) that is at least 51% owned by one or more

10 qualified veterans living in Illinois or, in the case of a

11 corporation, at least 51% of the stock of which is owned by one

12 or more qualified veterans living in Illinois; (ii) that has

13 its home office in Illinois; and (iii) for which items (i) and

14 (ii) are factually verified annually by the Department of

15 Central Management Services.

16 "Service-connected disability" means a disability incurred

17 in the line of duty in the active military, naval, or air

18 service as described in 38 U.S.C. 101(16).

19 "Small business" means a business that has annual gross

20 sales of less than $75,000,000 as evidenced by the federal

21 income tax return of the business. A firm with gross sales in

22 excess of this cap may apply to the Department of Central

23 Management Services for certification for a particular

24 contract if the firm can demonstrate that the contract would

25 have significant impact on SDVOSB or VOSB as suppliers or

26 subcontractors or in employment of veterans or

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1 service-disabled veterans.

2 "State agency" has the same meaning as in Section 2 of the

3 Business Enterprise for Minorities, Females, and Persons with

4 Disabilities Act.

5 "Time of hostilities with a foreign country" means any

6 period of time in the past, present, or future during which a

7 declaration of war by the United States Congress has been or is

8 in effect or during which an emergency condition has been or is

9 in effect that is recognized by the issuance of a Presidential

10 proclamation or a Presidential executive order and in which the

11 armed forces expeditionary medal or other campaign service

12 medals are awarded according to Presidential executive order.

13 "Veteran" means a person who (i) has been a member of the

14 armed forces of the United States or, while a citizen of the

15 United States, was a member of the armed forces of allies of

16 the United States in time of hostilities with a foreign country

17 and (ii) has served under one or more of the following

18 conditions: (a) the veteran served a total of at least 6

19 months; (b) the veteran served for the duration of hostilities

20 regardless of the length of the engagement; (c) the veteran was

21 discharged on the basis of hardship; or (d) the veteran was

22 released from active duty because of a service connected

23 disability and was discharged under honorable conditions.

24 (f) Certification program. The Illinois Department of

25 Veterans' Affairs and the Department of Central Management

26 Services shall work together to devise a certification

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1 procedure to assure that businesses taking advantage of this

2 Section are legitimately classified as qualified

3 service-disabled veteran-owned small businesses or qualified

4 veteran-owned small businesses.

5 (g) Penalties.

6 (1) Administrative penalties. The Department of

7 Central Management Services shall suspend any person who

8 commits a violation of Section 17-10.3 or subsection (d) of

9 Section 33E-6 of the Criminal Code of 1961 relating to this

10 Section from bidding on, or participating as a contractor,

11 subcontractor, or supplier in, any State contract or

12 project for a period of not less than 3 years, and, if the

13 person is certified as a service-disabled veteran-owned

14 small business or a veteran-owned small business, then the

15 Department shall revoke the business's certification for a

16 period of not less than 3 years. An additional or

17 subsequent violation shall extend the periods of

18 suspension and revocation for a period of not less than 5

19 years. The suspension and revocation shall apply to the

20 principals of the business and any subsequent business

21 formed or financed by, or affiliated with, those

22 principals.

23 (2) Reports of violations. Each State agency shall

24 report any alleged violation of Section 17-10.3 or

25 subsection (d) of Section 33E-6 of the Criminal Code of

26 1961 relating to this Section to the Department of Central

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1 Management Services. The Department of Central Management

2 Services shall subsequently report all such alleged

3 violations to the Attorney General, who shall determine

4 whether to bring a civil action against any person for the

5 violation.

6 (3) List of suspended persons. The Department of

7 Central Management Services shall monitor the status of all

8 reported violations of Section 17-10.3 or subsection (d) of

9 Section 33E-6 of the Criminal Code of 1961 relating to this

10 Section and shall maintain and make available to all State

11 agencies a central listing of all persons that committed

12 violations resulting in suspension.

13 (4) Use of suspended persons. During the period of a

14 person's suspension under paragraph (1) of this

15 subsection, a State agency shall not enter into any

16 contract with that person or with any contractor using the

17 services of that person as a subcontractor.

18 (5) Duty to check list. Each State agency shall check

19 the central listing provided by the Department of Central

20 Management Services under paragraph (3) of this subsection

21 to verify that a person being awarded a contract by that

22 State agency, or to be used as a subcontractor or supplier

23 on a contract being awarded by that State agency, is not

24 under suspension pursuant to paragraph (1) of this

25 subsection.

26 (Source: P.A. 96-96, eff. 1-1-10; 97-260, eff. 8-5-11.)

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1 Section 99. Effective date. This Act takes effect upon

2 becoming law.