Bill Amendment: IL SB0122 | 2019-2020 | 101st General Assembly
NOTE: For additional amemendments please see the Bill Drafting List
Bill Title: PROCUREMENT-VETERAN PREFERENCE
Status: 2021-01-13 - Session Sine Die [SB0122 Detail]
Download: Illinois-2019-SB0122-Senate_Amendment_001.html
Bill Title: PROCUREMENT-VETERAN PREFERENCE
Status: 2021-01-13 - Session Sine Die [SB0122 Detail]
Download: Illinois-2019-SB0122-Senate_Amendment_001.html
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1 | AMENDMENT TO SENATE BILL 122
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2 | AMENDMENT NO. ______. Amend Senate Bill 122 by replacing | ||||||
3 | everything after the enacting clause with the following:
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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) 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 |
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1 | be established as a goal to be awarded to SDVOSB and VOSB. That
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2 | portion of a contract under which the contractor subcontracts
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3 | with a SDVOSB or VOSB may be counted toward the
goal of this | ||||||
4 | subsection. The Department of Central Management Services | ||||||
5 | shall adopt rules to implement compliance with this subsection | ||||||
6 | by all State agencies. | ||||||
7 | (b) Fiscal year reports. By each November 1, each chief | ||||||
8 | procurement officer shall report to the Department of Central | ||||||
9 | Management Services on all of the following for the immediately | ||||||
10 | preceding fiscal year, and by each March 1 the Department of | ||||||
11 | Central Management Services shall compile and report that | ||||||
12 | information to the General Assembly: | ||||||
13 | (1) The total number of VOSB, and the number of SDVOSB, | ||||||
14 | who submitted bids for contracts under this Code. | ||||||
15 | (2) The total number of VOSB, and the number of SDVOSB, | ||||||
16 | who entered into contracts with the State under this Code | ||||||
17 | and the total value of those contracts. | ||||||
18 | (b-5) The Department of Central Management Services shall | ||||||
19 | submit an annual report to the Governor and the General | ||||||
20 | Assembly that shall include the following: | ||||||
21 | (1) a year-by-year comparison of the number of | ||||||
22 | certifications the State has issued to veteran-owned small | ||||||
23 | businesses and service-disabled veteran-owned small | ||||||
24 | businesses; | ||||||
25 | (2) the obstacles, if any, the Department of Central | ||||||
26 | Management Services faces when certifying veteran-owned |
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1 | businesses and possible rules or changes to rules to | ||||||
2 | address those issues; | ||||||
3 | (3) a year-by-year comparison of awarded contracts to | ||||||
4 | certified veteran-owned small businesses and | ||||||
5 | service-disabled veteran-owned small businesses; and | ||||||
6 | (4) any other information that the Department of | ||||||
7 | Central Management Services deems necessary to assist | ||||||
8 | veteran-owned small businesses and service-disabled | ||||||
9 | veteran-owned small businesses to become certified with | ||||||
10 | the State. | ||||||
11 | The Department of Central Management Services shall | ||||||
12 | conduct a minimum of 2 outreach events per year to ensure that | ||||||
13 | veteran-owned small businesses and service-disabled | ||||||
14 | veteran-owned small businesses know about the procurement | ||||||
15 | opportunities and certification requirements with the State. | ||||||
16 | The Department of Central Management Services may receive | ||||||
17 | appropriations for outreach. | ||||||
18 | (c) Yearly review and recommendations. Each year, each | ||||||
19 | chief procurement officer shall review the progress of all | ||||||
20 | State agencies under its jurisdiction in meeting the goal | ||||||
21 | described in subsection (a), with input from statewide | ||||||
22 | veterans' service organizations and from the business | ||||||
23 | community, including businesses owned by qualified veterans, | ||||||
24 | and shall make recommendations to be included in the Department | ||||||
25 | of Central Management Services' report to the General Assembly | ||||||
26 | regarding continuation, increases, or decreases of the |
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1 | percentage goal. The recommendations shall be based upon the | ||||||
2 | number of businesses that are owned by qualified veterans and | ||||||
3 | on the continued need to encourage and promote businesses owned | ||||||
4 | by qualified veterans. | ||||||
5 | (d) Governor's recommendations. To assist the State in | ||||||
6 | reaching the goal described in subsection (a), the Governor | ||||||
7 | shall recommend to the General Assembly changes in programs to | ||||||
8 | assist businesses owned by qualified veterans. | ||||||
9 | (e) Definitions. As used in this Section: | ||||||
10 | "Armed forces of the United States" means the United States | ||||||
11 | Army, Navy, Air Force, Marine Corps, Coast Guard, or service in | ||||||
12 | active duty as defined under 38 U.S.C. Section 101. Service in | ||||||
13 | the Merchant Marine that constitutes active duty under Section | ||||||
14 | 401 of federal Public Act 95-202 shall also be considered | ||||||
15 | service in the armed forces for purposes of this Section. | ||||||
16 | "Certification" means a determination made by the Illinois | ||||||
17 | Department of Veterans' Affairs and the Department of Central | ||||||
18 | Management Services that a business entity is a qualified | ||||||
19 | service-disabled veteran-owned small business or a qualified | ||||||
20 | veteran-owned small business for whatever purpose. A SDVOSB or | ||||||
21 | VOSB owned and controlled by women, minorities, or persons with | ||||||
22 | disabilities, as those terms are defined in Section 2 of the | ||||||
23 | Business Enterprise for Minorities, Women, and Persons with | ||||||
24 | Disabilities Act, may also select and designate whether that | ||||||
25 | business is to be certified as a "women-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, Women, and Persons with | ||||||
3 | Disabilities Act. | ||||||
4 | "Control" means the exclusive, ultimate, majority, or sole | ||||||
5 | control of the business, including but not limited to capital | ||||||
6 | investment and all other financial matters, property, | ||||||
7 | acquisitions, contract negotiations, legal matters, | ||||||
8 | officer-director-employee selection and comprehensive hiring, | ||||||
9 | operation responsibilities, cost-control matters, income and | ||||||
10 | dividend matters, financial transactions, and rights of other | ||||||
11 | shareholders or joint partners. Control shall be real, | ||||||
12 | substantial, and continuing, not pro forma. Control shall | ||||||
13 | include the power to direct or cause the direction of the | ||||||
14 | management and policies of the business and to make the | ||||||
15 | day-to-day as well as major decisions in matters of policy, | ||||||
16 | management, and operations. Control shall be exemplified by | ||||||
17 | possessing the requisite knowledge and expertise to run the | ||||||
18 | particular business, and control shall not include simple | ||||||
19 | majority or absentee ownership. | ||||||
20 | "Qualified service-disabled veteran" means a
veteran who | ||||||
21 | has been found to have 10% or more service-connected disability | ||||||
22 | by the United States Department of Veterans Affairs or the | ||||||
23 | United States Department of Defense. | ||||||
24 | "Qualified service-disabled veteran-owned small business" | ||||||
25 | or "SDVOSB" means a small business (i) that is at least 51% | ||||||
26 | owned by one or more qualified service-disabled veterans living |
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1 | in Illinois or, in the case of a corporation, at least 51% of | ||||||
2 | the stock of which is owned by one or more qualified | ||||||
3 | service-disabled veterans living in Illinois; (ii) that has its | ||||||
4 | home office in Illinois; and (iii) for which items (i) and (ii) | ||||||
5 | are factually verified annually by the Department of Central | ||||||
6 | Management Services. | ||||||
7 | "Qualified veteran-owned small business" or "VOSB" means a | ||||||
8 | small business (i) that is at least 51% owned by one or more | ||||||
9 | qualified veterans living in Illinois or, in the case of a | ||||||
10 | corporation, at least 51% of the stock of which is owned by one | ||||||
11 | or more qualified veterans living in Illinois; (ii) that has | ||||||
12 | its home office in Illinois; and (iii) for which items (i) and | ||||||
13 | (ii) are factually verified annually by the Department of | ||||||
14 | Central Management Services. | ||||||
15 | "Service-connected disability" means a disability incurred | ||||||
16 | in the line of duty in the active military, naval, or air | ||||||
17 | service as described in 38 U.S.C. 101(16). | ||||||
18 | "Small business" means a business that has annual gross | ||||||
19 | sales of less than $75,000,000 as evidenced by the federal | ||||||
20 | income tax return of the business. A firm with gross sales in | ||||||
21 | excess of this cap may apply to the Department of Central | ||||||
22 | Management Services for certification for a particular | ||||||
23 | contract if the firm can demonstrate that the contract would | ||||||
24 | have significant impact on SDVOSB or VOSB as suppliers or | ||||||
25 | subcontractors or in employment of veterans or | ||||||
26 | service-disabled veterans. |
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1 | "State agency" has the meaning provided in Section 1-15.100 | ||||||
2 | of this Code. | ||||||
3 | "Time of hostilities with a foreign country" means any | ||||||
4 | period of time in the past, present, or future during which a | ||||||
5 | declaration of war by the United States Congress has been or is | ||||||
6 | in effect or during which an emergency condition has been or is | ||||||
7 | in effect that is recognized by the issuance of a Presidential | ||||||
8 | proclamation or a Presidential executive order and in which the | ||||||
9 | armed forces expeditionary medal or other campaign service | ||||||
10 | medals are awarded according to Presidential executive order. | ||||||
11 | "Veteran" means a person who (i) has been a member of the | ||||||
12 | armed forces of the United States or, while a citizen of the | ||||||
13 | United States, was a member of the armed forces of allies of | ||||||
14 | the United States in time of hostilities with a foreign country | ||||||
15 | and (ii) has served under one or more of the following | ||||||
16 | conditions: (a) the veteran served a total of at least 6 | ||||||
17 | months; (b) the veteran served for the duration of hostilities | ||||||
18 | regardless of the length of the engagement; (c) the veteran was | ||||||
19 | discharged on the basis of hardship; or (d) the veteran was | ||||||
20 | released from active duty because of a service connected | ||||||
21 | disability and was discharged under honorable conditions. | ||||||
22 | (f) Certification program. The Illinois Department of | ||||||
23 | Veterans' Affairs and the Department of Central Management | ||||||
24 | Services shall work together to devise a certification | ||||||
25 | procedure to assure that businesses taking advantage of this | ||||||
26 | Section are legitimately classified as qualified |
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1 | service-disabled veteran-owned small businesses or qualified | ||||||
2 | veteran-owned small businesses.
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3 | The Department of Central Management Services shall: | ||||||
4 | (1) compile and maintain a comprehensive list of | ||||||
5 | certified veteran-owned small businesses and | ||||||
6 | service-disabled veteran-owned small businesses; | ||||||
7 | (2) assist veteran-owned small businesses and | ||||||
8 | service-disabled veteran-owned small businesses in | ||||||
9 | complying with the procedures for bidding on state | ||||||
10 | contracts; | ||||||
11 | (3) provide training for State agencies regarding the | ||||||
12 | goal setting process and compliance with veteran-owned | ||||||
13 | small business and service-disabled veteran-owned small | ||||||
14 | business goals; and | ||||||
15 | (4) implement and maintain an electronic portal on the | ||||||
16 | Department's website for the purpose of completing and | ||||||
17 | submitting veteran-owned small business and | ||||||
18 | service-disabled veteran-owned small business | ||||||
19 | certificates. | ||||||
20 | The Department of Central Management Services, in | ||||||
21 | consultation with the Department of Veteran Affairs, may | ||||||
22 | develop programs and agreements to encourage cities, counties, | ||||||
23 | towns, townships, and other certifying entities to adopt | ||||||
24 | uniform certification procedures and certification recognition | ||||||
25 | programs. | ||||||
26 | (f-5) A business shall be certified by the Department of |
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1 | Central Management Services as a service-disabled | ||||||
2 | veteran-owned small business or a veteran-owned small business | ||||||
3 | for purposes of this Section if the Department of Central | ||||||
4 | Management Services determines that the business has been | ||||||
5 | certified as a service-disabled veteran-owned small business | ||||||
6 | or a veteran-owned small business by the Vets First | ||||||
7 | Verification Program of the United States Department of | ||||||
8 | Veterans Affairs, and the business has provided to the | ||||||
9 | Department of Central Management Services the following: | ||||||
10 | (1) documentation showing certification as a | ||||||
11 | service-disabled veteran-owned small business or a | ||||||
12 | veteran-owned small business by the Vets First | ||||||
13 | Verification Program of the United States Department of | ||||||
14 | Veterans Affairs; | ||||||
15 | (2) proof that the business has its home office in | ||||||
16 | Illinois; and | ||||||
17 | (3) proof that the qualified veterans or qualified | ||||||
18 | service-disabled veterans live in the State of Illinois. | ||||||
19 | The policies of the Department of Central Management | ||||||
20 | Services regarding recognition of the Vets First Verification | ||||||
21 | Program of the United States Department of Veterans Affairs | ||||||
22 | shall be reviewed annually by the Department of Central | ||||||
23 | Management Services, and recognition of service-disabled | ||||||
24 | veteran-owned small businesses and veteran-owned small | ||||||
25 | businesses certified by the Vets First Verification Program of | ||||||
26 | the United States Department of Veterans Affairs may be |
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1 | discontinued by the Department of Central Management Services | ||||||
2 | by rule upon a finding that the certification standards of the | ||||||
3 | Vets First Verification Program of the United States Department | ||||||
4 | of Veterans Affairs do not meet the certification requirements | ||||||
5 | established by the Department of Central Management Services. | ||||||
6 | (g) Penalties. | ||||||
7 | (1) Administrative penalties. The chief procurement | ||||||
8 | officers appointed pursuant to Section 10-20 shall suspend | ||||||
9 | any person who commits a violation of Section 17-10.3 or | ||||||
10 | subsection (d) of Section 33E-6 of the Criminal Code of | ||||||
11 | 2012 relating to this Section from bidding on, or | ||||||
12 | participating as a contractor, subcontractor, or supplier | ||||||
13 | in, any State contract or project for a period of not less | ||||||
14 | than 3 years, and, if the person is certified as a | ||||||
15 | service-disabled veteran-owned small business or a | ||||||
16 | veteran-owned small business, then the Department shall | ||||||
17 | revoke the business's certification for a period of not | ||||||
18 | less than 3 years. An additional or subsequent violation | ||||||
19 | shall extend the periods of suspension and revocation for a | ||||||
20 | period of not less than 5 years. The suspension and | ||||||
21 | revocation shall apply to the principals of the business | ||||||
22 | and any subsequent business formed or financed by, or | ||||||
23 | affiliated with, those principals. | ||||||
24 | (2) Reports of violations. Each State agency shall | ||||||
25 | report any alleged violation of Section 17-10.3 or | ||||||
26 | subsection (d) of Section 33E-6 of the Criminal Code of |
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1 | 2012 relating to this Section to the chief procurement | ||||||
2 | officers appointed pursuant to Section 10-20. The chief | ||||||
3 | procurement officers appointed pursuant to Section 10-20 | ||||||
4 | shall subsequently report all such alleged violations to | ||||||
5 | the Attorney General, who shall determine whether to bring | ||||||
6 | a civil action against any person for the violation. | ||||||
7 | (3) List of suspended persons. The chief procurement | ||||||
8 | officers appointed pursuant to Section 10-20 shall monitor | ||||||
9 | the status of all reported violations of Section 17-10.3 or | ||||||
10 | subsection (d) of Section 33E-6 of the Criminal Code of | ||||||
11 | 1961 or the Criminal Code of 2012 relating to this Section | ||||||
12 | and shall maintain and make available to all State agencies | ||||||
13 | a central listing of all persons that committed violations | ||||||
14 | resulting in suspension. | ||||||
15 | (4) Use of suspended persons. During the period of a | ||||||
16 | person's suspension under paragraph (1) of this | ||||||
17 | subsection, a State agency shall not enter into any | ||||||
18 | contract with that person or with any contractor using the | ||||||
19 | services of that person as a subcontractor. | ||||||
20 | (5) Duty to check list. Each State agency shall check | ||||||
21 | the central listing provided by the chief procurement | ||||||
22 | officers appointed pursuant to Section 10-20 under | ||||||
23 | paragraph (3) of this subsection to verify that a person | ||||||
24 | being awarded a contract by that State agency, or to be | ||||||
25 | used as a subcontractor or supplier on a contract being | ||||||
26 | awarded by that State agency, is not under suspension |
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1 | pursuant to paragraph (1) of this subsection. | ||||||
2 | (Source: P.A. 100-43, eff. 8-9-17; 100-391, eff. 8-25-17; | ||||||
3 | 100-863, eff. 8-14-18.)
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4 | Section 99. Effective date. This Act takes effect upon | ||||||
5 | becoming law.".
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