Illinois 2025-2026 Regular Session

Illinois Senate Bill SB0176 Compare Versions

Only one version of the bill is available at this time.
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11 104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 SB0176 Introduced 1/17/2025, by Sen. Michael E. Hastings SYNOPSIS AS INTRODUCED: New Act Creates the Procurement Bid Ethics Transparency Act. Provides that no director, employee, investor, or immediate family member of any director, employee, or investor of any corporation, organization, or entity that directly or indirectly operates a procurement bid process for a unit of local government shall simultaneously submit and compete for a procurement bid in that same unit of local government unless they have formally disclosed their involvement to the Executive Ethics Commission. Effective immediately. LRB104 07864 HLH 17910 b A BILL FOR 104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 SB0176 Introduced 1/17/2025, by Sen. Michael E. Hastings SYNOPSIS AS INTRODUCED: New Act New Act Creates the Procurement Bid Ethics Transparency Act. Provides that no director, employee, investor, or immediate family member of any director, employee, or investor of any corporation, organization, or entity that directly or indirectly operates a procurement bid process for a unit of local government shall simultaneously submit and compete for a procurement bid in that same unit of local government unless they have formally disclosed their involvement to the Executive Ethics Commission. Effective immediately. LRB104 07864 HLH 17910 b LRB104 07864 HLH 17910 b A BILL FOR
22 104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 SB0176 Introduced 1/17/2025, by Sen. Michael E. Hastings SYNOPSIS AS INTRODUCED:
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55 Creates the Procurement Bid Ethics Transparency Act. Provides that no director, employee, investor, or immediate family member of any director, employee, or investor of any corporation, organization, or entity that directly or indirectly operates a procurement bid process for a unit of local government shall simultaneously submit and compete for a procurement bid in that same unit of local government unless they have formally disclosed their involvement to the Executive Ethics Commission. Effective immediately.
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1111 1 AN ACT concerning State government.
1212 2 Be it enacted by the People of the State of Illinois,
1313 3 represented in the General Assembly:
1414 4 Section 1. Short title. This Act may be cited as the
1515 5 Procurement Bid Ethics Transparency Act.
1616 6 Section 5. Purpose. The purpose of this Act is to prevent
1717 7 conflicts of interest in the procurement bidding process for
1818 8 units of local government by prohibiting directors, employees,
1919 9 investors, or immediate family members of any director,
2020 10 employee, or investor of any corporation, organization, or
2121 11 entity that operates a procurement bid process for a unit of
2222 12 local government from simultaneously submitting and competing
2323 13 for a bid in that unit of local government. This Act is
2424 14 intended to ensure transparency and accountability in local
2525 15 government contracting.
2626 16 Section 10. Definitions. As used in this Act:
2727 17 "Director" means an individual serving as a director or
2828 18 officer, or in a similar position, in any corporation,
2929 19 organization, or entity that directly or indirectly operates a
3030 20 procurement bid process for a unit of local government.
3131 21 "Employee" means an individual employed by a corporation,
3232 22 organization, or entity that directly or indirectly operates a
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3636 104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 SB0176 Introduced 1/17/2025, by Sen. Michael E. Hastings SYNOPSIS AS INTRODUCED:
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3939 Creates the Procurement Bid Ethics Transparency Act. Provides that no director, employee, investor, or immediate family member of any director, employee, or investor of any corporation, organization, or entity that directly or indirectly operates a procurement bid process for a unit of local government shall simultaneously submit and compete for a procurement bid in that same unit of local government unless they have formally disclosed their involvement to the Executive Ethics Commission. Effective immediately.
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6767 1 procurement bid process for a unit of local government,
6868 2 including a full-time, part-time, and contract employee.
6969 3 "Investor" means any individual or entity who holds
7070 4 ownership, equity interest, or shares in a corporation,
7171 5 organization, or entity that directly or indirectly operates a
7272 6 procurement bid process for a unit of local government.
7373 7 "Immediate family member" means a spouse, child, parent,
7474 8 sibling, or any other relative residing in the same household
7575 9 as the individual.
7676 10 "Procurement bid process" means the process through which
7777 11 a unit of local government solicits, evaluates, and awards
7878 12 contracts for goods, services, or construction projects,
7979 13 including any bidding, procurement, or contracting procedures.
8080 14 "Unit of local government" means any municipality, county,
8181 15 school district, park district, library district, or other
8282 16 governmental body or agency in the State of Illinois that
8383 17 issues procurement bids.
8484 18 Section 15. Prohibition on simultaneous submission and
8585 19 bidding.
8686 20 (a) No director, employee, investor, or immediate family
8787 21 member of any director, employee, or investor of any
8888 22 corporation, organization, or entity that directly or
8989 23 indirectly operates a procurement bid process for a unit of
9090 24 local government shall simultaneously submit and compete for a
9191 25 procurement bid in that same unit of local government without
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102102 1 formally disclosing that involvement to the Executive Ethics
103103 2 Commission.
104104 3 (b) The disclosure required by this Section must be
105105 4 submitted in writing to the Executive Ethics Commission prior
106106 5 to the submission of any bid or proposal for a contract in
107107 6 which the individual or entity is involved. The disclosure
108108 7 must include the following information:
109109 8 (1) the name of the corporation, organization, or
110110 9 entity operating the procurement bid process;
111111 10 (2) the names of the directors, employees, investors,
112112 11 and immediate family members who are involved in both the
113113 12 procurement process and submitting the bid;
114114 13 (3) the specific procurement contract or opportunity
115115 14 for which the bid is being submitted and the nature of the
116116 15 relationship between the bidding entity and the
117117 16 procurement process operator; and
118118 17 (4) any potential conflicts of interest or financial
119119 18 relationships between the bidding entity and the unit of
120120 19 local government administering the procurement.
121121 20 Section 20. Civil penalties for failure to disclose.
122122 21 (a) Any individual or entity who fails to make the
123123 22 required disclosure in accordance with Section 15 shall be
124124 23 subject to a civil penalty of up to $1,000,000.
125125 24 (b) The Executive Ethics Commission shall be responsible
126126 25 for determining whether a violation has occurred and for
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137137 1 imposing the penalty. The penalty shall be levied against the
138138 2 corporation, organization, or entity that fails to disclose
139139 3 the involvement of its directors, employees, investors, or
140140 4 immediate family members in the procurement bid process.
141141 5 (c) The civil penalty shall be deposited into the General
142142 6 Revenue Fund and may be used for enforcement of procurement
143143 7 ethics and other public integrity initiatives.
144144 8 Section 25. Enforcement and penalties.
145145 9 (a) The Executive Ethics Commission shall have the
146146 10 authority to enforce the provisions of this Act. The
147147 11 Commission may investigate complaints, conduct audits, and
148148 12 issue subpoenas to enforce compliance.
149149 13 (b) Any corporation, organization, or entity that fails to
150150 14 comply with the provisions of this Act may be prohibited from
151151 15 participating in future procurement processes or contracts
152152 16 with any unit of local government for a period of up to 5
153153 17 years.
154154 18 (c) In addition to the civil penalty imposed under Section
155155 19 20, violators may be subject to additional penalties under
156156 20 State law, including fines and disqualification from
157157 21 participating in any public contracting process.
158158 22 Section 30. Exceptions.
159159 23 (a) This Act does not apply to individuals or entities
160160 24 making bids for procurements with units of local government
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171171 1 that are not directly involved in the procurement process
172172 2 itself.
173173 3 (b) The disclosure requirements do not apply to situations
174174 4 where the corporation, organization, or entity has no direct
175175 5 or indirect control over the procurement bid process.
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