Bill Text: IL HB0345 | 2011-2012 | 97th General Assembly | Amended

---

Bill Title: Amends the Freedom of Information Act. Makes a technical change in a Section concerning the short title.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Failed) 2013-01-08 - Session Sine Die [HB0345 Detail]

Download: Illinois-2011-HB0345-Amended.html

---

Rep. Ann Williams

Filed: 4/13/2011

09700HB0345ham001 LRB097 03232 JDS 54470 a
AMENDMENT TO HOUSE BILL 345
AMENDMENT NO. ______. Amend House Bill 345 by replacing
everything after the enacting clause with the following:
"Section 5. The State Officials and Employees Ethics Act is
amended by changing Sections 5-45, 20-50, and 50-5 as follows:
(5 ILCS 430/5-45)
Sec. 5-45. Procurement; revolving door prohibition.
(a) No former officer, member, or State employee, or spouse
or immediate family member living with such person, shall,
within a period of one year immediately after termination of
State employment, knowingly accept employment or receive
compensation or fees for services from a person or entity if
the officer, member, or State employee, during the year
immediately preceding termination of State employment,
participated personally and substantially in the award of State
contracts, or the issuance of State contract change orders,

09700HB0345ham001 - 2 - LRB097 03232 JDS 54470 a
with a cumulative value of $25,000 or more to the person or
entity, or its parent or subsidiary.
(b) No former officer of the executive branch or State
employee of the executive branch with regulatory or licensing
authority, or spouse or immediate family member living with
such person, shall, within a period of one year immediately
after termination of State employment, knowingly accept
employment or receive compensation or fees for services from a
person or entity if the officer or State employee, during the
year immediately preceding termination of State employment,
participated personally and substantially in making a
regulatory or licensing decision that directly applied to the
person or entity, or its parent or subsidiary.
(c) Within 6 months after the effective date of this
amendatory Act of the 96th General Assembly, each executive
branch constitutional officer and legislative leader, the
Auditor General, and the Joint Committee on Legislative Support
Services shall adopt a policy delineating which State positions
under his or her jurisdiction and control, by the nature of
their duties, may have the authority to participate personally
and substantially in the award of State contracts or in
regulatory or licensing decisions. The Governor shall adopt
such a policy for all State employees of the executive branch
not under the jurisdiction and control of any other executive
branch constitutional officer.
The policies required under subsection (c) of this Section

09700HB0345ham001 - 3 - LRB097 03232 JDS 54470 a
shall be filed with the appropriate ethics commission
established under this Act or, for the Auditor General, with
the Office of the Auditor General.
(d) Each Inspector General shall have the authority to
determine that additional State positions under his or her
jurisdiction, not otherwise subject to the policies required by
subsection (c) of this Section, are nonetheless subject to the
notification requirement of subsection (f) below due to their
involvement in the award of State contracts or in regulatory or
licensing decisions.
(e) The Joint Committee on Legislative Support Services,
the Auditor General, and each of the executive branch
constitutional officers and legislative leaders subject to
subsection (c) of this Section shall provide written
notification to all employees in positions subject to the
policies required by subsection (c) or a determination made
under subsection (d): (1) upon hiring, promotion, or transfer
into the relevant position; and (2) at the time the employee's
duties are changed in such a way as to qualify that employee.
An employee receiving notification must certify in writing that
the person was advised of the prohibition and the requirement
to notify the appropriate Inspector General in subsection (f).
(f) Any State employee in a position subject to the
policies required by subsection (c) or to a determination under
subsection (d), but who does not fall within the prohibition of
subsection (h) below, who is offered non-State employment

09700HB0345ham001 - 4 - LRB097 03232 JDS 54470 a
during State employment or within a period of one year
immediately after termination of State employment shall, prior
to accepting such non-State employment, notify the appropriate
Inspector General. Within 10 business calendar days after
receiving notification from an employee in a position subject
to the policies required by subsection (c), such Inspector
General shall make a determination as to whether the State
employee is restricted from accepting such employment by
subsection (a) or (b). In making a determination, in addition
to any other relevant information, an Inspector General shall
assess the effect of the prospective employment or relationship
upon decisions referred to in subsections (a) and (b), based on
the totality of the participation by the former officer,
member, or State employee in those decisions. A determination
by an Inspector General must be in writing, signed and dated by
the Inspector General, and delivered to the subject of the
determination within 10 calendar days or the person is deemed
eligible for the employment opportunity. For purposes of this
subsection, "appropriate Inspector General" means (i) for
members and employees of the legislative branch, the
Legislative Inspector General; (ii) for the Auditor General and
employees of the Office of the Auditor General, the Inspector
General provided for in Section 30-5 of this Act; and (iii) for
executive branch officers and employees, the Inspector General
having jurisdiction over the officer or employee. Notice of any
determination of an Inspector General and of any such appeal

09700HB0345ham001 - 5 - LRB097 03232 JDS 54470 a
shall be given to the ultimate jurisdictional authority, the
Attorney General, and the Executive Ethics Commission.
(g) An Inspector General's determination regarding
restrictions under subsection (a) or (b) may be appealed to the
appropriate Ethics Commission by the person subject to the
decision or the Attorney General no later than the 10th
business calendar day after the date of the determination.
On appeal, the Ethics Commission or Auditor General shall
seek, accept, and consider written public comments regarding a
determination. In deciding whether to uphold an Inspector
General's determination, the appropriate Ethics Commission or
Auditor General shall assess, in addition to any other relevant
information, the effect of the prospective employment or
relationship upon the decisions referred to in subsections (a)
and (b), based on the totality of the participation by the
former officer, member, or State employee in those decisions.
The Ethics Commission shall decide whether to uphold an
Inspector General's determination within 10 business calendar
days or the person is deemed eligible for the employment
opportunity.
(h) The following officers, members, or State employees
shall not, within a period of one year immediately after
termination of office or State employment, knowingly accept
employment or receive compensation or fees for services from a
person or entity if the person or entity or its parent or
subsidiary, during the year immediately preceding termination

09700HB0345ham001 - 6 - LRB097 03232 JDS 54470 a
of State employment, was a party to a State contract or
contracts with a cumulative value of $25,000 or more involving
the officer, member, or State employee's State agency, or was
the subject of a regulatory or licensing decision involving the
officer, member, or State employee's State agency, regardless
of whether he or she participated personally and substantially
in the award of the State contract or contracts or the making
of the regulatory or licensing decision in question:
(1) members or officers;
(2) members of a commission or board created by the
Illinois Constitution;
(3) persons whose appointment to office is subject to
the advice and consent of the Senate;
(4) the head of a department, commission, board,
division, bureau, authority, or other administrative unit
within the government of this State;
(5) chief procurement officers, State purchasing
officers, and their designees whose duties are directly
related to State procurement; and
(6) chiefs of staff, deputy chiefs of staff, associate
chiefs of staff, assistant chiefs of staff, and deputy
governors.
(Source: P.A. 96-555, eff. 8-18-09.)
(5 ILCS 430/20-50)
Sec. 20-50. Investigation reports.

09700HB0345ham001 - 7 - LRB097 03232 JDS 54470 a
(a) If an Executive Inspector General, upon the conclusion
of an investigation, determines that reasonable cause exists to
believe that a violation has occurred, then the Executive
Inspector General shall issue a summary report of the
investigation. The report shall be delivered to the appropriate
ultimate jurisdictional authority and to the head of each State
agency affected by or involved in the investigation, if
appropriate. The appropriate ultimate jurisdictional authority
or agency head shall respond to the summary report within 20
days, in writing, to the Executive Inspector General. The
response shall include a description of any corrective or
disciplinary action to be imposed.
(b) The summary report of the investigation shall include
the following:
(1) A description of any allegations or other
information received by the Executive Inspector General
pertinent to the investigation.
(2) A description of any alleged misconduct discovered
in the course of the investigation.
(3) Recommendations for any corrective or disciplinary
action to be taken in response to any alleged misconduct
described in the report, including but not limited to
discharge.
(4) Other information the Executive Inspector General
deems relevant to the investigation or resulting
recommendations.

09700HB0345ham001 - 8 - LRB097 03232 JDS 54470 a
(c) Within 30 days after receiving a response from the
appropriate ultimate jurisdictional authority or agency head
under subsection (a), the Executive Inspector General shall
notify the Commission and the Attorney General if the Executive
Inspector General believes that a complaint should be filed
with the Commission. If the Executive Inspector General desires
to file a complaint with the Commission, the Executive
Inspector General shall submit the summary report and
supporting documents to the Attorney General. If the Attorney
General concludes that there is insufficient evidence that a
violation has occurred, the Attorney General shall notify the
Executive Inspector General and the Executive Inspector
General shall deliver to the Executive Ethics Commission a copy
of the summary report and response from the ultimate
jurisdictional authority or agency head. If the Attorney
General determines that reasonable cause exists to believe that
a violation has occurred, then the Executive Inspector General,
represented by the Attorney General, may file with the
Executive Ethics Commission a complaint. The complaint shall
set forth the alleged violation and the grounds that exist to
support the complaint. The complaint must be filed with the
Commission within 18 months after the most recent act of the
alleged violation or of a series of alleged violations except
where there is reasonable cause to believe that fraudulent
concealment has occurred. To constitute fraudulent concealment
sufficient to toll this limitations period, there must be an

09700HB0345ham001 - 9 - LRB097 03232 JDS 54470 a
affirmative act or representation calculated to prevent
discovery of the fact that a violation has occurred. If a
complaint is not filed with the Commission within 6 months
after notice by the Inspector General to the Commission and the
Attorney General, then the Commission may set a meeting of the
Commission at which the Attorney General shall appear and
provide a status report to the Commission.
(c-5) Within 30 days after receiving a response from the
appropriate ultimate jurisdictional authority or agency head
under subsection (a), if the Executive Inspector General does
not believe that a complaint should be filed, the Executive
Inspector General shall deliver to the Executive Ethics
Commission a statement setting forth the basis for the decision
not to file a complaint and a copy of the summary report and
response from the ultimate jurisdictional authority or agency
head. An Inspector General may also submit a redacted version
of the summary report and response from the ultimate
jurisdictional authority if the Inspector General believes
either contains information that, in the opinion of the
Inspector General, should be redacted prior to releasing the
report, may interfere with an ongoing investigation, or
identifies an informant or complainant.
(c-10) If, after reviewing the documents, the Commission
believes that further investigation is warranted, the
Commission may request that the Executive Inspector General
provide additional information or conduct further

09700HB0345ham001 - 10 - LRB097 03232 JDS 54470 a
investigation. The Commission may also appoint a Special
Executive Inspector General to investigate or refer the summary
report and response from the ultimate jurisdictional authority
to the Attorney General for further investigation or review. If
the Commission requests the Attorney General to investigate or
review, the Commission must notify the Attorney General and the
Inspector General. The Attorney General may not begin an
investigation or review until receipt of notice from the
Commission. If, after review, the Attorney General determines
that reasonable cause exists to believe that a violation has
occurred, then the Attorney General may file a complaint with
the Executive Ethics Commission. If the Attorney General
concludes that there is insufficient evidence that a violation
has occurred, the Attorney General shall notify the Executive
Ethics Commission and the appropriate Executive Inspector
General.
(d) A copy of the complaint filed with the Executive Ethics
Commission must be served on all respondents named in the
complaint and on each respondent's ultimate jurisdictional
authority in the same manner as process is served under the
Code of Civil Procedure.
(e) A respondent may file objections to the complaint
within 30 days after notice of the complaint petition has been
served on the respondent.
(f) The Commission shall meet, either in person or by
telephone, at least 30 days after the complaint is served on

09700HB0345ham001 - 11 - LRB097 03232 JDS 54470 a
all respondents in a closed session to review the sufficiency
of the complaint. The Commission shall issue notice by
certified mail, return receipt requested, to the Executive
Inspector General, Attorney General, and all respondents of the
Commission's ruling on the sufficiency of the complaint. If the
complaint is deemed to sufficiently allege a violation of this
Act, then the Commission shall include a hearing date scheduled
within 4 weeks after the date of the notice, unless all of the
parties consent to a later date. If the complaint is deemed not
to sufficiently allege a violation, then the Commission shall
send by certified mail, return receipt requested, a notice to
the Executive Inspector General, Attorney General, and all
respondents of the decision to dismiss the complaint.
(g) On the scheduled date the Commission shall conduct a
closed meeting, either in person or, if the parties consent, by
telephone, on the complaint and allow all parties the
opportunity to present testimony and evidence. All such
proceedings shall be transcribed.
(h) Within an appropriate time limit set by rules of the
Executive Ethics Commission, the Commission shall (i) dismiss
the complaint, (ii) issue a recommendation of discipline to the
respondent and the respondent's ultimate jurisdictional
authority, (iii) impose an administrative fine upon the
respondent, (iv) issue injunctive relief as described in
Section 50-10, or (v) impose a combination of (ii) through
(iv).

09700HB0345ham001 - 12 - LRB097 03232 JDS 54470 a
(i) The proceedings on any complaint filed with the
Commission shall be conducted pursuant to rules promulgated by
the Commission.
(j) The Commission may designate hearing officers to
conduct proceedings as determined by rule of the Commission.
(k) In all proceedings before the Commission, the standard
of proof is by a preponderance of the evidence.
(l) Within 30 days after the issuance of a final
administrative decision that concludes that a violation
occurred, the Executive Ethics Commission shall make public the
entire record of proceedings before the Commission, the
decision, any recommendation, any discipline imposed, and the
response from the agency head or ultimate jurisdictional
authority to the Executive Ethics Commission.
(Source: P.A. 96-555, eff. 8-18-09.)
(5 ILCS 430/50-5)
Sec. 50-5. Penalties.
(a) A person is guilty of a Class A misdemeanor and subject
to a fine of up to $20,000 if that person intentionally
violates any provision of Section 5-15, 5-30, 5-40, or 5-45 or
Article 15.
(a-1) In addition to any other penalty that may apply,
whether criminal or civil, an An ethics commission may levy an
administrative fine for a violation of Section 5-45 of this Act
of up to 3 times the total annual compensation that would have

09700HB0345ham001 - 13 - LRB097 03232 JDS 54470 a
been obtained in violation of Section 5-45.
(b) A person who intentionally violates any provision of
Section 5-20, 5-35, 5-50, or 5-55 is guilty of a business
offense subject to a fine of at least $1,001 and up to $5,000.
(c) A person who intentionally violates any provision of
Article 10 is guilty of a business offense and subject to a
fine of at least $1,001 and up to $5,000.
(d) Any person who intentionally makes a false report
alleging a violation of any provision of this Act to an ethics
commission, an inspector general, the State Police, a State's
Attorney, the Attorney General, or any other law enforcement
official is guilty of a Class A misdemeanor and subject to a
fine of up to $20,000.
(e) In addition to any other penalty that may apply,
whether criminal or civil, an An ethics commission may levy an
administrative fine of up to $20,000 $5,000 against any person
who violates this Act, who intentionally obstructs or
interferes with an investigation conducted under this Act by an
inspector general, or who intentionally makes a false,
frivolous, or bad faith allegation.
(f) In addition to any other penalty that may apply,
whether criminal or civil, a State employee who intentionally
violates any provision of Section 5-5, 5-15, 5-20, 5-30, 5-35,
5-45, or 5-50, Article 10, Article 15, or Section 20-90 or
25-90 is subject to discipline or discharge by the appropriate
ultimate jurisdictional authority.

09700HB0345ham001 - 14 - LRB097 03232 JDS 54470 a
(Source: P.A. 96-555, eff. 8-18-09.)
Section 10. The Illinois Procurement Code is amended by
changing Section 50-60 and by adding Section 50-33 as follows:
(30 ILCS 500/50-33 new)
Sec. 50-33. Lawful and ethical conduct.
(a) No person shall enter into or perform a contract with a
State agency or enter into or perform a subcontract under this
Code if that person has engaged in conduct, alone or in concert
with any other person, relating to the contract or subcontract
which would constitute a violation of Section 17-9, Section
17-10, Section 17-24, Article 33, Section 33C-4, or Article 33E
of the Criminal Code of 1961, or any similar federal offense.
(b) Every bid submitted and contract executed by the State
and every subcontract subject to Section 20-120 of this Code
shall contain a certification by the bidder, contractor, or
subcontractor, respectively, that the bidder, contractor, or
subcontractor is not barred from bidding for, entering into, or
performing a contract under subsection (a) of this Section and
that he or she acknowledges that the chief procurement officer
may declare the related contract void if any of the
certifications completed pursuant to this subsection (b) are
false.
(30 ILCS 500/50-60)

09700HB0345ham001 - 15 - LRB097 03232 JDS 54470 a
Sec. 50-60. Voidable contracts.
(a) If any contract or amendment thereto is entered into or
purchase or expenditure of funds is made at any time in
violation of this Code or any other law, the contract or
amendment thereto may be declared void by the chief procurement
officer or may be ratified and affirmed, provided the chief
procurement officer determines that ratification is in the best
interests of the State. If the contract is ratified and
affirmed, it shall be without prejudice to the State's rights
to any appropriate damages.
(b) If, during the term of a contract, the chief
procurement officer determines that the contractor is
delinquent in the payment of debt as set forth in Section 50-11
of this Code, the chief procurement officer may declare the
contract void if it determines that voiding the contract is in
the best interests of the State. The Debt Collection Bureau
shall adopt rules for the implementation of this subsection
(b).
(c) If, during the term of a contract, the chief
procurement officer determines that the contractor is in
violation of Section 50-10.5 of this Code, the chief
procurement officer shall declare the contract void.
(d) If, during the term of a contract, the contracting
agency learns from an annual certification or otherwise
determines that the contractor no longer qualifies to enter
into State contracts by reason of Section 50-5, 50-10, 50-12,

09700HB0345ham001 - 16 - LRB097 03232 JDS 54470 a
50-14, or 50-14.5, or 50-33 of this Article, the chief
procurement officer may declare the contract void if it
determines that voiding the contract is in the best interests
of the State.
(e) If, during the term of a contract, the chief
procurement officer learns from an annual certification or
otherwise determines that a subcontractor subject to Section
20-120 no longer qualifies to enter into State contracts by
reason of Section 50-5, 50-10, 50-10.5, 50-11, 50-12, 50-14, or
50-14.5, or 50-33 of this Article, the chief procurement
officer may declare the related contract void if it determines
that voiding the contract is in the best interests of the
State.
(f) The changes to this Section made by Public Act 96-795
apply to actions taken by the chief procurement officer on or
after July 1, 2010.
(Source: P.A. 96-493, eff. 1-1-10; 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); 96-1000, eff. 7-2-10.)
Section 15. The Criminal Code of 1961 is amended by
changing Sections 33-7, 33E-2, and 33E-7 as follows:
(720 ILCS 5/33-7)
Sec. 33-7. Public contractor misconduct.
(a) A public contractor; a person seeking a public contract

09700HB0345ham001 - 17 - LRB097 03232 JDS 54470 a
on behalf of himself, herself, or another; an employee of a
public contractor; or a person seeking a public contract on
behalf of himself, herself, or another commits public
contractor misconduct when, in the performance of, or in
connection with, a contract with the State, a unit of local
government, or a school district or in obtaining or seeking to
obtain such a contract he or she commits any of the following
acts:
(1) intentionally or knowingly makes, uses, or causes
to be made or used a false record or statement to conceal,
avoid, or decrease an obligation to pay or transmit money
or property;
(2) knowingly performs an act that he or she knows he
or she is forbidden by law to perform;
(3) with intent to obtain a personal advantage for
himself, herself, or another, he or she performs an act in
excess of his or her contractual responsibility;
(4) solicits or offers or knowingly accepts or provides
for the performance of any act a fee or reward that he or
she knows is not authorized by law; or
(5) knowingly or intentionally seeks or receives
compensation or reimbursement for goods and services he or
she purported to deliver or render, but failed to do so
pursuant to the terms of the contract, to the unit of State
or local government or school district.
(b) Sentence. Any person who violates this Section commits

09700HB0345ham001 - 18 - LRB097 03232 JDS 54470 a
a Class 3 felony. Any person convicted of this offense or a
similar offense in any state of the United States which
contains the same elements of this offense shall be barred for
10 years from the date of conviction from contracting with,
employment by, or holding public office with the State or any
unit of local government or school district. No corporation
shall be barred as a result of a conviction under this Section
of any employee or agent of such corporation if the employee so
convicted is no longer employed by the corporation and (1) it
has been finally adjudicated not guilty or (2) it demonstrates
to the government entity with which it seeks to contract, and
that entity finds, that the commission of the offense was
neither authorized, requested, commanded, nor performed by a
director, officer or high managerial agent on behalf of the
corporation as provided in paragraph (2) of subsection (a) of
Section 5-4 of this Code.
(c) The Attorney General or the State's Attorney in the
county where the principal office of the unit of local
government or school district is located may bring a civil
action on behalf of any unit of State or local government to
recover a civil penalty from any person who knowingly engages
in conduct which violates subsection (a) of this Section in
treble the amount of the monetary cost to the unit of State or
local government or school district involved in the violation.
The Attorney General or State's Attorney shall be entitled to
recover reasonable attorney's fees as part of the costs

09700HB0345ham001 - 19 - LRB097 03232 JDS 54470 a
assessed to the defendant. This subsection (c) shall in no way
limit the ability of any unit of State or local government or
school district to recover moneys or damages regarding public
contracts under any other law or ordinance. A civil action
shall be barred unless the action is commenced within 6 years
after the later of (1) the date on which the conduct
establishing the cause of action occurred or (2) the date on
which the unit of State or local government or school district
knew or should have known that the conduct establishing the
cause of action occurred.
(d) This amendatory Act of the 96th General Assembly shall
not be construed to create a private right of action.
(Source: P.A. 96-575, eff. 8-18-09.)
(720 ILCS 5/33E-2) (from Ch. 38, par. 33E-2)
Sec. 33E-2. Definitions. In this Act:
(a) "Public contract" means any contract for goods,
services or construction let to any person with or without bid
by any unit of State or local government.
(b) "Unit of State or local government" means the State,
any unit of state government or agency thereof, any county or
municipal government or committee or agency thereof, or any
other entity which is funded by or expends tax dollars or the
proceeds of publicly guaranteed bonds.
(c) "Change order" means a change in a contract term other
than as specifically provided for in the contract which

09700HB0345ham001 - 20 - LRB097 03232 JDS 54470 a
authorizes or necessitates any increase or decrease in the cost
of the contract or the time to completion.
(d) "Person" means any individual, firm, partnership,
corporation, joint venture or other entity, but does not
include a unit of State or local government.
(e) "Person employed by any unit of State or local
government" means any employee of a unit of State or local
government and any person defined in subsection (d) who is
authorized by such unit of State or local government to act on
its behalf in relation to any public contract.
(f) "Sheltered market" has the meaning ascribed to it in
Section 8b of the Business Enterprise for Minorities, Females,
and Persons with Disabilities Act.
(g) "Kickback" means any money, fee, commission, credit,
gift, gratuity, thing of value, or compensation of any kind
which is provided, directly or indirectly, to any person
employed by any unit of State or local government, prime
contractor, prime contractor employee, subcontractor, or
subcontractor employee for the purpose of improperly obtaining
or rewarding favorable treatment in connection with a prime
contract or in connection with a subcontract relating to a
prime contract.
(h) "Prime contractor" means any person who has entered
into a public contract.
(i) "Prime contractor employee" means any officer,
partner, employee, or agent of a prime contractor.

09700HB0345ham001 - 21 - LRB097 03232 JDS 54470 a
(i-5) "Stringing" means knowingly structuring a contract
or job order to avoid the contract or job order being subject
to competitive bidding requirements.
(j) "Subcontract" means a contract or contractual action
entered into by a prime contractor or subcontractor for the
purpose of obtaining goods or services of any kind under a
prime contract.
(k) "Subcontractor" (1) means any person, other than the
prime contractor, who offers to furnish or furnishes any goods
or services of any kind under a prime contract or a subcontract
entered into in connection with such prime contract; and (2)
includes any person who offers to furnish or furnishes goods or
services to the prime contractor or a higher tier
subcontractor.
(l) "Subcontractor employee" means any officer, partner,
employee, or agent of a subcontractor.
(Source: P.A. 92-16, eff. 6-28-01.)
(720 ILCS 5/33E-7) (from Ch. 38, par. 33E-7)
Sec. 33E-7. Kickbacks. (a) A person, including a person
employed by any unit of State or local government, violates
this Section when he knowingly either:
(1) provides, attempts to provide or offers to provide any
kickback;
(2) solicits, accepts or attempts to accept any kickback;
or

09700HB0345ham001 - 22 - LRB097 03232 JDS 54470 a
(3) includes, directly or indirectly, the amount of any
kickback prohibited by paragraphs (1) or (2) of this subsection
(a) in the contract price charged by a subcontractor to a prime
contractor or a higher tier subcontractor or in the contract
price charged by a prime contractor to any unit of State or
local government for a public contract.
(b) Any person, including a person employed by any unit of
State or local government, violates this Section when he has
received an offer of a kickback, or has been solicited to make
a kickback, and fails to report it to law enforcement
officials, including but not limited to the Attorney General or
the State's Attorney for the county in which the contract is to
be performed.
(c) A violation of subsection (a) is a Class 3 felony. A
violation of subsection (b) is a Class 4 felony.
(d) Any unit of State or local government may, in a civil
action, recover a civil penalty from any person who knowingly
engages in conduct which violates paragraph (3) of subsection
(a) of this Section in twice the amount of each kickback
involved in the violation. This subsection (d) shall in no way
limit the ability of any unit of State or local government to
recover monies or damages regarding public contracts under any
other law or ordinance. A civil action shall be barred unless
the action is commenced within 6 years after the later of (1)
the date on which the conduct establishing the cause of action
occurred or (2) the date on which the unit of State or local

09700HB0345ham001 - 23 - LRB097 03232 JDS 54470 a
government knew or should have known that the conduct
establishing the cause of action occurred.
(Source: P.A. 85-1295.)
Section 20. The Illinois False Claims Act is amended by
changing Section 4 as follows:
(740 ILCS 175/4) (from Ch. 127, par. 4104)
Sec. 4. Civil actions for false claims.
(a) Responsibilities of the Attorney General and the
Department of State Police. The Attorney General or the
Department of State Police shall diligently investigate a civil
violation under Section 3. If the Attorney General finds that a
person violated or is violating Section 3, the Attorney General
may bring a civil action under this Section against the person.
The State shall receive an amount for reasonable expenses
that the court finds to have been necessarily incurred by the
Attorney General, including reasonable attorneys' fees and
costs. All such expenses, fees, and costs shall be awarded
against the defendant. The court may award amounts from the
proceeds of an action or settlement that it considers
appropriate to any governmental entity or program that has been
adversely affected by a defendant. The Attorney General, if
necessary, shall direct the State Treasurer to make a
disbursement of funds as provided in court orders or settlement
agreements.

09700HB0345ham001 - 24 - LRB097 03232 JDS 54470 a
(b) Actions by private persons.
(1) A person may bring a civil action for a violation
of Section 3 for the person and for the State. The action
shall be brought in the name of the State. The action may
be dismissed only if the court and the Attorney General
give written consent to the dismissal and their reasons for
consenting.
(2) A copy of the complaint and written disclosure of
substantially all material evidence and information the
person possesses shall be served on the State. The
complaint shall be filed in camera, shall remain under seal
for at least 60 days, and shall not be served on the
defendant until the court so orders. The State may elect to
intervene and proceed with the action within 60 days after
it receives both the complaint and the material evidence
and information.
(3) The State may, for good cause shown, move the court
for extensions of the time during which the complaint
remains under seal under paragraph (2). Any such motions
may be supported by affidavits or other submissions in
camera. The defendant shall not be required to respond to
any complaint filed under this Section until 20 days after
the complaint is unsealed and served upon the defendant.
(4) Before the expiration of the 60-day period or any
extensions obtained under paragraph (3), the State shall:
(A) proceed with the action, in which case the

09700HB0345ham001 - 25 - LRB097 03232 JDS 54470 a
action shall be conducted by the State; or
(B) notify the court that it declines to take over
the action, in which case the person bringing the
action shall have the right to conduct the action.
(5) When a person brings an action under this
subsection (b), no person other than the State may
intervene or bring a related action based on the facts
underlying the pending action.
(c) Rights of the parties to Qui Tam actions.
(1) If the State proceeds with the action, it shall
have the primary responsibility for prosecuting the
action, and shall not be bound by an act of the person
bringing the action. Such person shall have the right to
continue as a party to the action, subject to the
limitations set forth in paragraph (2).
(2)(A) The State may dismiss the action
notwithstanding the objections of the person initiating
the action if the person has been notified by the State of
the filing of the motion and the court has provided the
person with an opportunity for a hearing on the motion.
(B) The State may settle the action with the defendant
notwithstanding the objections of the person initiating
the action if the court determines, after a hearing, that
the proposed settlement is fair, adequate, and reasonable
under all the circumstances. Upon a showing of good cause,
such hearing may be held in camera.

09700HB0345ham001 - 26 - LRB097 03232 JDS 54470 a
(C) Upon a showing by the State that unrestricted
participation during the course of the litigation by the
person initiating the action would interfere with or unduly
delay the State's prosecution of the case, or would be
repetitious, irrelevant, or for purposes of harassment,
the court may, in its discretion, impose limitations on the
person's participation, such as:
(i) limiting the number of witnesses the person may
call:
(ii) limiting the length of the testimony of such
witnesses;
(iii) limiting the person's cross-examination of
witnesses; or
(iv) otherwise limiting the participation by the
person in the litigation.
(D) Upon a showing by the defendant that unrestricted
participation during the course of the litigation by the
person initiating the action would be for purposes of
harassment or would cause the defendant undue burden or
unnecessary expense, the court may limit the participation
by the person in the litigation.
(3) If the State elects not to proceed with the action,
the person who initiated the action shall have the right to
conduct the action. If the State so requests, it shall be
served with copies of all pleadings filed in the action and
shall be supplied with copies of all deposition transcripts

09700HB0345ham001 - 27 - LRB097 03232 JDS 54470 a
(at the State's expense). When a person proceeds with the
action, the court, without limiting the status and rights
of the person initiating the action, may nevertheless
permit the State to intervene at a later date upon a
showing of good cause.
(4) Whether or not the State proceeds with the action,
upon a showing by the State that certain actions of
discovery by the person initiating the action would
interfere with the State's investigation or prosecution of
a criminal or civil matter arising out of the same facts,
the court may stay such discovery for a period of not more
than 60 days. Such a showing shall be conducted in camera.
The court may extend the 60-day period upon a further
showing in camera that the State has pursued the criminal
or civil investigation or proceedings with reasonable
diligence and any proposed discovery in the civil action
will interfere with the ongoing criminal or civil
investigation or proceedings.
(5) Notwithstanding subsection (b), the State may
elect to pursue its claim through any alternate remedy
available to the State, including any administrative
proceeding to determine a civil money penalty. If any such
alternate remedy is pursued in another proceeding, the
person initiating the action shall have the same rights in
such proceeding as such person would have had if the action
had continued under this Section. Any finding of fact or

09700HB0345ham001 - 28 - LRB097 03232 JDS 54470 a
conclusion of law made in such other proceeding that has
become final shall be conclusive on all parties to an
action under this Section. For purposes of the preceding
sentence, a finding or conclusion is final if it has been
finally determined on appeal to the appropriate court, if
all time for filing such an appeal with respect to the
finding or conclusion has expired, or if the finding or
conclusion is not subject to judicial review.
(d) Award to Qui Tam plaintiff.
(1) If the State proceeds with an action brought by a
person under subsection (b), such person shall, subject to
the second sentence of this paragraph, receive at least 15%
but not more than 25% of the proceeds of the action or
settlement of the claim, depending upon the extent to which
the person substantially contributed to the prosecution of
the action. Where the action is one which the court finds
to be based primarily on disclosures of specific
information (other than information provided by the person
bringing the action) relating to allegations or
transactions in a criminal, civil, or administrative
hearing, in a legislative, administrative, or Auditor
General's report, hearing, audit, or investigation, or
from the news media, the court may award such sums as it
considers appropriate, but in no case more than 10% of the
proceeds, taking into account the significance of the
information and the role of the person bringing the action

09700HB0345ham001 - 29 - LRB097 03232 JDS 54470 a
in advancing the case to litigation. Any payment to a
person under the first or second sentence of this paragraph
(1) shall be made from the proceeds. Any such person shall
also receive an amount for reasonable expenses which the
court finds to have been necessarily incurred, plus
reasonable attorneys' fees and costs. The State shall also
receive an amount for reasonable expenses which the court
finds to have been necessarily incurred by the Attorney
General, including reasonable attorneys' fees and costs.
All such expenses, fees, and costs shall be awarded against
the defendant. The court may award amounts from the
proceeds of an action or settlement that it considers
appropriate to any governmental entity or program that has
been adversely affected by a defendant. The Attorney
General, if necessary, shall direct the State Treasurer to
make a disbursement of funds as provided in court orders or
settlement agreements.
(2) If the State does not proceed with an action under
this Section, the person bringing the action or settling
the claim shall receive an amount which the court decides
is reasonable for collecting the civil penalty and damages.
The amount shall be not less than 25% and not more than 30%
of the proceeds of the action or settlement and shall be
paid out of such proceeds. Such person shall also receive
an amount for reasonable expenses which the court finds to
have been necessarily incurred, plus reasonable attorneys'

09700HB0345ham001 - 30 - LRB097 03232 JDS 54470 a
fees and costs. All such expenses, fees, and costs shall be
awarded against the defendant. The court may award amounts
from the proceeds of an action or settlement that it
considers appropriate to any governmental entity or
program that has been adversely affected by a defendant.
The Attorney General, if necessary, shall direct the State
Treasurer to make a disbursement of funds as provided in
court orders or settlement agreements.
(3) Whether or not the State proceeds with the action,
if the court finds that the action was brought by a person
who planned and initiated the violation of Section 3 upon
which the action was brought, then the court may, to the
extent the court considers appropriate, reduce the share of
the proceeds of the action which the person would otherwise
receive under paragraph (1) or (2) of this subsection (d),
taking into account the role of that person in advancing
the case to litigation and any relevant circumstances
pertaining to the violation. If the person bringing the
action is convicted of criminal conduct arising from his or
her role in the violation of Section 3, that person shall
be dismissed from the civil action and shall not receive
any share of the proceeds of the action. Such dismissal
shall not prejudice the right of the State to continue the
action, represented by the Attorney General.
(4) If the State does not proceed with the action and
the person bringing the action conducts the action, the

09700HB0345ham001 - 31 - LRB097 03232 JDS 54470 a
court may award to the defendant its reasonable attorneys'
fees and expenses if the defendant prevails in the action
and the court finds that the claim of the person bringing
the action was clearly frivolous, clearly vexatious, or
brought primarily for purposes of harassment.
(e) Certain actions barred.
(1) No court shall have jurisdiction over an action
brought by a former or present member of the Guard under
subsection (b) of this Section against a member of the
Guard arising out of such person's service in the Guard.
(2)(A) No court shall have jurisdiction over an action
brought under subsection (b) against a member of the
General Assembly, a member of the judiciary, or an exempt
official if the action is based on evidence or information
known to the State when the action was brought.
(B) For purposes of this paragraph (2), "exempt
official" means any of the following officials in State
service: directors of departments established under the
Civil Administrative Code of Illinois, the Adjutant
General, the Assistant Adjutant General, the Director of
the State Emergency Services and Disaster Agency, members
of the boards and commissions, and all other positions
appointed by the Governor by and with the consent of the
Senate.
(3) In no event may a person bring an action under
subsection (b) which is based upon allegations or

09700HB0345ham001 - 32 - LRB097 03232 JDS 54470 a
transactions which are the subject of a civil suit or an
administrative civil money penalty proceeding in which the
State is already a party.
(4)(A) The court shall dismiss an action or claim under
this Section, unless opposed by the State, if substantially
the same allegations or transactions as alleged in the
action or claim were publicly disclosed: No court shall
have jurisdiction over an action under this Section based
upon the public disclosure of allegations or transactions
(i) in a criminal, civil, or administrative
hearing in which the State or its agent is a party; ,
(ii) in a legislative, administrative, or Auditor
General, or other State General's report, hearing,
audit, or investigation; , or
(iii) from the news media,
unless the action is brought by the Attorney General or the
person bringing the action is an original source of the
information.
(B) For purposes of this paragraph (4), "original
source" means an individual who either (i) prior to a
public disclosure under subsection (e)(4)(A), has
voluntarily disclosed to the State the information on which
allegations or transactions in a claim are based, or (ii)
who has knowledge that is independent of and materially
adds to the publicly disclosed allegations or
transactions, and who has voluntarily provided the

09700HB0345ham001 - 33 - LRB097 03232 JDS 54470 a
information to the State before filing an action under this
Section. who has direct and independent knowledge of the
information on which the allegations are based and has
voluntarily provided the information to the State before
filing an action under this Section which is based on the
information.
(f) State not liable for certain expenses. The State is not
liable for expenses which a person incurs in bringing an action
under this Section.
(g) Relief from retaliatory actions.
(1) In general, any employee, contractor, or agent
shall be is entitled to all relief necessary to make that
employee, contractor, or agent whole, if that employee,
contractor, or agent is discharged, demoted, suspended,
threatened, harassed, or in any other manner discriminated
against in the terms and conditions of employment because
of lawful acts done by the employee, contractor, or agent
on behalf of the employee, contractor, or agent or
associated others in furtherance of an action under this
Section or other efforts to stop one or more violations of
this Act.
(2) Relief under paragraph (1) shall include
reinstatement with the same seniority status that the
employee, contractor, or agent would have had but for the
discrimination, 2 times the amount of back pay, interest on
the back pay, and compensation for any special damages

09700HB0345ham001 - 34 - LRB097 03232 JDS 54470 a
sustained as a result of the discrimination, including
litigation costs and reasonable attorneys' fees. An action
under this subsection (g) may be brought in the appropriate
circuit court for the relief provided in this subsection
(g).
(3) A civil action under this subsection may not be
brought more than 3 years after the date when the
retaliation occurred.
(Source: P.A. 96-1304, eff. 7-27-10.)
Section 99. Effective date. This Act takes effect upon
becoming law.".