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Illinois House Bill HB3859

Illinois 2023-2024 Regular Session

Illinois House Bill HB3859 Compare Versions

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11 103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB3859 Introduced , by Rep. Lance Yednock SYNOPSIS AS INTRODUCED: 30 ILCS 500/45-57 Amends the Illinois Procurement Code. In respect to a "qualified veteran-owned small business", provides that the business must have annual gross sales of less than $150,000,000 (rather than $75,000,000) as evidenced by the federal income tax return of the business. LRB103 30278 HLH 56706 b A BILL FOR 103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB3859 Introduced , by Rep. Lance Yednock SYNOPSIS AS INTRODUCED: 30 ILCS 500/45-57 30 ILCS 500/45-57 Amends the Illinois Procurement Code. In respect to a "qualified veteran-owned small business", provides that the business must have annual gross sales of less than $150,000,000 (rather than $75,000,000) as evidenced by the federal income tax return of the business. LRB103 30278 HLH 56706 b LRB103 30278 HLH 56706 b A BILL FOR
22 103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB3859 Introduced , by Rep. Lance Yednock SYNOPSIS AS INTRODUCED:
33 30 ILCS 500/45-57 30 ILCS 500/45-57
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55 Amends the Illinois Procurement Code. In respect to a "qualified veteran-owned small business", provides that the business must have annual gross sales of less than $150,000,000 (rather than $75,000,000) as evidenced by the federal income tax return of the business.
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1111 1 AN ACT concerning finance.
1212 2 Be it enacted by the People of the State of Illinois,
1313 3 represented in the General Assembly:
1414 4 Section 5. The Illinois Procurement Code is amended by
1515 5 changing Section 45-57 as follows:
1616 6 (30 ILCS 500/45-57)
1717 7 Sec. 45-57. Veterans.
1818 8 (a) Set-aside goal. It is the goal of the State to promote
1919 9 and encourage the continued economic development of small
2020 10 businesses owned and controlled by qualified veterans and that
2121 11 qualified service-disabled veteran-owned small businesses
2222 12 (referred to as SDVOSB) and veteran-owned small businesses
2323 13 (referred to as VOSB) participate in the State's procurement
2424 14 process as both prime contractors and subcontractors. Not less
2525 15 than 3% of the total dollar amount of State contracts, as
2626 16 defined by the Commission on Equity and Inclusion, shall be
2727 17 established as a goal to be awarded to SDVOSB and VOSB. That
2828 18 portion of a contract under which the contractor subcontracts
2929 19 with a SDVOSB or VOSB may be counted toward the goal of this
3030 20 subsection. The Commission on Equity and Inclusion shall adopt
3131 21 rules to implement compliance with this subsection by all
3232 22 State agencies.
3333 23 (b) Fiscal year reports. By each November 1, each chief
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3737 103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB3859 Introduced , by Rep. Lance Yednock SYNOPSIS AS INTRODUCED:
3838 30 ILCS 500/45-57 30 ILCS 500/45-57
3939 30 ILCS 500/45-57
4040 Amends the Illinois Procurement Code. In respect to a "qualified veteran-owned small business", provides that the business must have annual gross sales of less than $150,000,000 (rather than $75,000,000) as evidenced by the federal income tax return of the business.
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6868 1 procurement officer shall report to the Commission on Equity
6969 2 and Inclusion on all of the following for the immediately
7070 3 preceding fiscal year, and by each March 1 the Commission on
7171 4 Equity and Inclusion shall compile and report that information
7272 5 to the General Assembly:
7373 6 (1) The total number of VOSB, and the number of
7474 7 SDVOSB, who submitted bids for contracts under this Code.
7575 8 (2) The total number of VOSB, and the number of
7676 9 SDVOSB, who entered into contracts with the State under
7777 10 this Code and the total value of those contracts.
7878 11 (b-5) The Commission on Equity and Inclusion shall submit
7979 12 an annual report to the Governor and the General Assembly that
8080 13 shall include the following:
8181 14 (1) a year-by-year comparison of the number of
8282 15 certifications the State has issued to veteran-owned small
8383 16 businesses and service-disabled veteran-owned small
8484 17 businesses;
8585 18 (2) the obstacles, if any, the Commission on Equity
8686 19 and Inclusion faces when certifying veteran-owned
8787 20 businesses and possible rules or changes to rules to
8888 21 address those issues;
8989 22 (3) a year-by-year comparison of awarded contracts to
9090 23 certified veteran-owned small businesses and
9191 24 service-disabled veteran-owned small businesses; and
9292 25 (4) any other information that the Commission on
9393 26 Equity and Inclusion deems necessary to assist
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104104 1 veteran-owned small businesses and service-disabled
105105 2 veteran-owned small businesses to become certified with
106106 3 the State.
107107 4 The Commission on Equity and Inclusion shall conduct a
108108 5 minimum of 2 outreach events per year to ensure that
109109 6 veteran-owned small businesses and service-disabled
110110 7 veteran-owned small businesses know about the procurement
111111 8 opportunities and certification requirements with the State.
112112 9 The Commission on Equity and Inclusion may receive
113113 10 appropriations for outreach.
114114 11 (c) Yearly review and recommendations. Each year, each
115115 12 chief procurement officer shall review the progress of all
116116 13 State agencies under its jurisdiction in meeting the goal
117117 14 described in subsection (a), with input from statewide
118118 15 veterans' service organizations and from the business
119119 16 community, including businesses owned by qualified veterans,
120120 17 and shall make recommendations to be included in the
121121 18 Commission on Equity and Inclusion's report to the General
122122 19 Assembly regarding continuation, increases, or decreases of
123123 20 the percentage goal. The recommendations shall be based upon
124124 21 the number of businesses that are owned by qualified veterans
125125 22 and on the continued need to encourage and promote businesses
126126 23 owned by qualified veterans.
127127 24 (d) Governor's recommendations. To assist the State in
128128 25 reaching the goal described in subsection (a), the Governor
129129 26 shall recommend to the General Assembly changes in programs to
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140140 1 assist businesses owned by qualified veterans.
141141 2 (e) Definitions. As used in this Section:
142142 3 "Armed forces of the United States" means the United
143143 4 States Army, Navy, Air Force, Marine Corps, Coast Guard, or
144144 5 service in active duty as defined under 38 U.S.C. Section 101.
145145 6 Service in the Merchant Marine that constitutes active duty
146146 7 under Section 401 of federal Public Act 95-202 shall also be
147147 8 considered service in the armed forces for purposes of this
148148 9 Section.
149149 10 "Certification" means a determination made by the Illinois
150150 11 Department of Veterans' Affairs and the Commission on Equity
151151 12 and Inclusion that a business entity is a qualified
152152 13 service-disabled veteran-owned small business or a qualified
153153 14 veteran-owned small business for whatever purpose. A SDVOSB or
154154 15 VOSB owned and controlled by women, minorities, or persons
155155 16 with disabilities, as those terms are defined in Section 2 of
156156 17 the Business Enterprise for Minorities, Women, and Persons
157157 18 with Disabilities Act, may also select and designate whether
158158 19 that business is to be certified as a "women-owned business",
159159 20 "minority-owned business", or "business owned by a person with
160160 21 a disability", as defined in Section 2 of the Business
161161 22 Enterprise for Minorities, Women, and Persons with
162162 23 Disabilities Act.
163163 24 "Control" means the exclusive, ultimate, majority, or sole
164164 25 control of the business, including but not limited to capital
165165 26 investment and all other financial matters, property,
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176176 1 acquisitions, contract negotiations, legal matters,
177177 2 officer-director-employee selection and comprehensive hiring,
178178 3 operation responsibilities, cost-control matters, income and
179179 4 dividend matters, financial transactions, and rights of other
180180 5 shareholders or joint partners. Control shall be real,
181181 6 substantial, and continuing, not pro forma. Control shall
182182 7 include the power to direct or cause the direction of the
183183 8 management and policies of the business and to make the
184184 9 day-to-day as well as major decisions in matters of policy,
185185 10 management, and operations. Control shall be exemplified by
186186 11 possessing the requisite knowledge and expertise to run the
187187 12 particular business, and control shall not include simple
188188 13 majority or absentee ownership.
189189 14 "Qualified service-disabled veteran" means a veteran who
190190 15 has been found to have 10% or more service-connected
191191 16 disability by the United States Department of Veterans Affairs
192192 17 or the United States Department of Defense.
193193 18 "Qualified service-disabled veteran-owned small business"
194194 19 or "SDVOSB" means a small business (i) that is at least 51%
195195 20 owned by one or more qualified service-disabled veterans
196196 21 living in Illinois or, in the case of a corporation, at least
197197 22 51% of the stock of which is owned by one or more qualified
198198 23 service-disabled veterans living in Illinois; (ii) that has
199199 24 its home office in Illinois; and (iii) for which items (i) and
200200 25 (ii) are factually verified annually by the Commission on
201201 26 Equity and Inclusion.
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212212 1 "Qualified veteran-owned small business" or "VOSB" means a
213213 2 small business (i) that is at least 51% owned by one or more
214214 3 qualified veterans living in Illinois or, in the case of a
215215 4 corporation, at least 51% of the stock of which is owned by one
216216 5 or more qualified veterans living in Illinois; (ii) that has
217217 6 its home office in Illinois; and (iii) for which items (i) and
218218 7 (ii) are factually verified annually by the Commission on
219219 8 Equity and Inclusion.
220220 9 "Service-connected disability" means a disability incurred
221221 10 in the line of duty in the active military, naval, or air
222222 11 service as described in 38 U.S.C. 101(16).
223223 12 "Small business" means a business that has annual gross
224224 13 sales of less than $150,000,000 $75,000,000 as evidenced by
225225 14 the federal income tax return of the business. A firm with
226226 15 gross sales in excess of this cap may apply to the Commission
227227 16 on Equity and Inclusion for certification for a particular
228228 17 contract if the firm can demonstrate that the contract would
229229 18 have significant impact on SDVOSB or VOSB as suppliers or
230230 19 subcontractors or in employment of veterans or
231231 20 service-disabled veterans.
232232 21 "State agency" has the meaning provided in Section
233233 22 1-15.100 of this Code.
234234 23 "Time of hostilities with a foreign country" means any
235235 24 period of time in the past, present, or future during which a
236236 25 declaration of war by the United States Congress has been or is
237237 26 in effect or during which an emergency condition has been or is
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248248 1 in effect that is recognized by the issuance of a Presidential
249249 2 proclamation or a Presidential executive order and in which
250250 3 the armed forces expeditionary medal or other campaign service
251251 4 medals are awarded according to Presidential executive order.
252252 5 "Veteran" means a person who (i) has been a member of the
253253 6 armed forces of the United States or, while a citizen of the
254254 7 United States, was a member of the armed forces of allies of
255255 8 the United States in time of hostilities with a foreign
256256 9 country and (ii) has served under one or more of the following
257257 10 conditions: (a) the veteran served a total of at least 6
258258 11 months; (b) the veteran served for the duration of hostilities
259259 12 regardless of the length of the engagement; (c) the veteran
260260 13 was discharged on the basis of hardship; or (d) the veteran was
261261 14 released from active duty because of a service connected
262262 15 disability and was discharged under honorable conditions.
263263 16 (f) Certification program. The Illinois Department of
264264 17 Veterans' Affairs and the Commission on Equity and Inclusion
265265 18 shall work together to devise a certification procedure to
266266 19 assure that businesses taking advantage of this Section are
267267 20 legitimately classified as qualified service-disabled
268268 21 veteran-owned small businesses or qualified veteran-owned
269269 22 small businesses.
270270 23 The Commission on Equity and Inclusion shall:
271271 24 (1) compile and maintain a comprehensive list of
272272 25 certified veteran-owned small businesses and
273273 26 service-disabled veteran-owned small businesses;
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284284 1 (2) assist veteran-owned small businesses and
285285 2 service-disabled veteran-owned small businesses in
286286 3 complying with the procedures for bidding on State
287287 4 contracts;
288288 5 (3) provide training for State agencies regarding the
289289 6 goal setting process and compliance with veteran-owned
290290 7 small business and service-disabled veteran-owned small
291291 8 business goals; and
292292 9 (4) implement and maintain an electronic portal on the
293293 10 Commission on Equity and Inclusion's website for the
294294 11 purpose of completing and submitting veteran-owned small
295295 12 business and service-disabled veteran-owned small business
296296 13 certificates.
297297 14 The Commission on Equity and Inclusion, in consultation
298298 15 with the Department of Veterans' Affairs, may develop programs
299299 16 and agreements to encourage cities, counties, towns,
300300 17 townships, and other certifying entities to adopt uniform
301301 18 certification procedures and certification recognition
302302 19 programs.
303303 20 (f-5) A business shall be certified by the Commission on
304304 21 Equity and Inclusion as a service-disabled veteran-owned small
305305 22 business or a veteran-owned small business for purposes of
306306 23 this Section if the Commission on Equity and Inclusion
307307 24 determines that the business has been certified as a
308308 25 service-disabled veteran-owned small business or a
309309 26 veteran-owned small business by the Vets First Verification
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320320 1 Program of the United States Department of Veterans Affairs,
321321 2 and the business has provided to the Commission on Equity and
322322 3 Inclusion the following:
323323 4 (1) documentation showing certification as a
324324 5 service-disabled veteran-owned small business or a
325325 6 veteran-owned small business by the Vets First
326326 7 Verification Program of the United States Department of
327327 8 Veterans Affairs;
328328 9 (2) proof that the business has its home office in
329329 10 Illinois; and
330330 11 (3) proof that the qualified veterans or qualified
331331 12 service-disabled veterans live in the State of Illinois.
332332 13 The policies of the Commission on Equity and Inclusion
333333 14 regarding recognition of the Vets First Verification Program
334334 15 of the United States Department of Veterans Affairs shall be
335335 16 reviewed annually by the Commission on Equity and Inclusion,
336336 17 and recognition of service-disabled veteran-owned small
337337 18 businesses and veteran-owned small businesses certified by the
338338 19 Vets First Verification Program of the United States
339339 20 Department of Veterans Affairs may be discontinued by the
340340 21 Commission on Equity and Inclusion by rule upon a finding that
341341 22 the certification standards of the Vets First Verification
342342 23 Program of the United States Department of Veterans Affairs do
343343 24 not meet the certification requirements established by the
344344 25 Commission on Equity and Inclusion.
345345 26 (g) Penalties.
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356356 1 (1) Administrative penalties. The chief procurement
357357 2 officers appointed pursuant to Section 10-20 shall suspend
358358 3 any person who commits a violation of Section 17-10.3 or
359359 4 subsection (d) of Section 33E-6 of the Criminal Code of
360360 5 2012 relating to this Section from bidding on, or
361361 6 participating as a contractor, subcontractor, or supplier
362362 7 in, any State contract or project for a period of not less
363363 8 than 3 years, and, if the person is certified as a
364364 9 service-disabled veteran-owned small business or a
365365 10 veteran-owned small business, then the Commission on
366366 11 Equity and Inclusion shall revoke the business's
367367 12 certification for a period of not less than 3 years. An
368368 13 additional or subsequent violation shall extend the
369369 14 periods of suspension and revocation for a period of not
370370 15 less than 5 years. The suspension and revocation shall
371371 16 apply to the principals of the business and any subsequent
372372 17 business formed or financed by, or affiliated with, those
373373 18 principals.
374374 19 (2) Reports of violations. Each State agency shall
375375 20 report any alleged violation of Section 17-10.3 or
376376 21 subsection (d) of Section 33E-6 of the Criminal Code of
377377 22 2012 relating to this Section to the chief procurement
378378 23 officers appointed pursuant to Section 10-20. The chief
379379 24 procurement officers appointed pursuant to Section 10-20
380380 25 shall subsequently report all such alleged violations to
381381 26 the Attorney General, who shall determine whether to bring
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392392 1 a civil action against any person for the violation.
393393 2 (3) List of suspended persons. The chief procurement
394394 3 officers appointed pursuant to Section 10-20 shall monitor
395395 4 the status of all reported violations of Section 17-10.3
396396 5 or subsection (d) of Section 33E-6 of the Criminal Code of
397397 6 1961 or the Criminal Code of 2012 relating to this Section
398398 7 and shall maintain and make available to all State
399399 8 agencies a central listing of all persons that committed
400400 9 violations resulting in suspension.
401401 10 (4) Use of suspended persons. During the period of a
402402 11 person's suspension under paragraph (1) of this
403403 12 subsection, a State agency shall not enter into any
404404 13 contract with that person or with any contractor using the
405405 14 services of that person as a subcontractor.
406406 15 (5) Duty to check list. Each State agency shall check
407407 16 the central listing provided by the chief procurement
408408 17 officers appointed pursuant to Section 10-20 under
409409 18 paragraph (3) of this subsection to verify that a person
410410 19 being awarded a contract by that State agency, or to be
411411 20 used as a subcontractor or supplier on a contract being
412412 21 awarded by that State agency, is not under suspension
413413 22 pursuant to paragraph (1) of this subsection.
414414 23 (h) On and after the effective date of this amendatory Act
415415 24 of the 102nd General Assembly, all powers, duties, rights, and
416416 25 responsibilities of the Department of Central Management
417417 26 Services with respect to the requirements of this Section are
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428428 1 transferred to the Commission on Equity and Inclusion.
429429 2 All books, records, papers, documents, property (real and
430430 3 personal), contracts, causes of action, and pending business
431431 4 pertaining to the powers, duties, rights, and responsibilities
432432 5 transferred by this amendatory Act from the Department of
433433 6 Central Management Services to the Commission on Equity and
434434 7 Inclusion, including, but not limited to, material in
435435 8 electronic or magnetic format and necessary computer hardware
436436 9 and software, shall be transferred to the Commission on Equity
437437 10 and Inclusion.
438438 11 The powers, duties, rights, and responsibilities
439439 12 transferred from the Department of Central Management Services
440440 13 by this amendatory Act shall be vested in and shall be
441441 14 exercised by the Commission on Equity and Inclusion.
442442 15 Whenever reports or notices are now required to be made or
443443 16 given or papers or documents furnished or served by any person
444444 17 to or upon the Department of Central Management Services in
445445 18 connection with any of the powers, duties, rights, and
446446 19 responsibilities transferred by this amendatory Act, the same
447447 20 shall be made, given, furnished, or served in the same manner
448448 21 to or upon the Commission on Equity and Inclusion.
449449 22 This amendatory Act of the 102nd General Assembly does not
450450 23 affect any act done, ratified, or canceled or any right
451451 24 occurring or established or any action or proceeding had or
452452 25 commenced in an administrative, civil, or criminal cause by
453453 26 the Department of Central Management Services before this
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464464 1 amendatory Act takes effect; such actions or proceedings may
465465 2 be prosecuted and continued by the Commission on Equity and
466466 3 Inclusion.
467467 4 Any rules of the Department of Central Management Services
468468 5 that relate to its powers, duties, rights, and
469469 6 responsibilities under this Section and are in full force on
470470 7 the effective date of this amendatory Act of the 102nd General
471471 8 Assembly shall become the rules of the Commission on Equity
472472 9 and Inclusion. This amendatory Act does not affect the
473473 10 legality of any such rules in the Illinois Administrative
474474 11 Code. Any proposed rules filed with the Secretary of State by
475475 12 the Department of Central Management Services that are pending
476476 13 in the rulemaking process on the effective date of this
477477 14 amendatory Act and pertain to the powers, duties, rights, and
478478 15 responsibilities transferred, shall be deemed to have been
479479 16 filed by the Commission on Equity and Inclusion. As soon as
480480 17 practicable hereafter, the Commission on Equity and Inclusion
481481 18 shall revise and clarify the rules transferred to it under
482482 19 this amendatory Act to reflect the reorganization of powers,
483483 20 duties, rights, and responsibilities affected by this
484484 21 amendatory Act, using the procedures for recodification of
485485 22 rules available under the Illinois Administrative Procedure
486486 23 Act, except that existing title, part, and section numbering
487487 24 for the affected rules may be retained. The Commission on
488488 25 Equity and Inclusion may propose and adopt under the Illinois
489489 26 Administrative Procedure Act such other rules of the
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500500 1 Department of Central Management Services that will now be
501501 2 administered by the Commission on Equity and Inclusion.
502502 3 (Source: P.A. 102-166, eff. 7-26-21; 102-671, eff. 11-30-21.)
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