Rep. Jerry F. Costello, II
Filed: 3/19/2013
 
 


 




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1
AMENDMENT TO HOUSE BILL 2408




2 AMENDMENT NO. ______. Amend House Bill 2408 by replacing 
3everything after the enacting clause with the following:


4 "Section 5. The Illinois Procurement Code is amended by 
5changing Section 45-57 as follows:

6 (30 ILCS 500/45-57)
7 Sec. 45-57. Veterans.
8 (a) Set-aside goal. It is the goal of the State to promote 
9and encourage the continued economic development of small 
10businesses owned and controlled by qualified veterans and that 
11qualified 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 
14process as both prime contractors and subcontractors. Not less 
15than 3% of the total dollar amount of State contracts, as 
16defined by the Director of Central Management Services, shall 
 
 
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1be established as a goal to be awarded to SDVOSB and VOSB. That

2portion of a contract under which the contractor subcontracts

3with a SDVOSB or VOSB may be counted toward the
goal of this 
4subsection. The Department of Central Management Services 
5shall adopt rules to implement compliance with this subsection 
6by all State agencies.
7 (b) Fiscal year reports. By each September 1, each chief 
8procurement officer shall report to the Department of Central 
9Management Services on all of the following for the immediately 
10preceding fiscal year, and by each March 1 the Department of 
11Central Management Services shall compile and report that 
12information 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 (c) Yearly review and recommendations. Each year, each 
19chief procurement officer shall review the progress of all 
20State agencies under its jurisdiction in meeting the goal 
21described in subsection (a), with input from statewide 
22veterans' service organizations and from the business 
23community, including businesses owned by qualified veterans, 
24and shall make recommendations to be included in the Department 
25of Central Management Services' report to the General Assembly 
26regarding continuation, increases, or decreases of the 
 
 
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1percentage goal. The recommendations shall be based upon the 
2number of businesses that are owned by qualified veterans and 
3on the continued need to encourage and promote businesses owned 
4by qualified veterans.
5 (d) Governor's recommendations. To assist the State in 
6reaching the goal described in subsection (a), the Governor 
7shall recommend to the General Assembly changes in programs to 
8assist businesses owned by qualified veterans.
9 (e) Definitions. As used in this Section:
10 "Armed forces of the United States" means the United States 
11Army, Navy, Air Force, Marine Corps, Coast Guard, or service in 
12active duty as defined under 38 U.S.C. Section 101. Service in 
13the Merchant Marine that constitutes active duty under Section 
14401 of federal Public Act 95-202 shall also be considered 
15service in the armed forces for purposes of this Section. 
16 "Certification" means a determination made by the Illinois 
17Department of Veterans' Affairs and the Department of Central 
18Management Services that a business entity is a qualified 
19service-disabled veteran-owned small business or a qualified 
20veteran-owned small business for whatever purpose. A SDVOSB or 
21VOSB owned and controlled by females, minorities, or persons 
22with disabilities, as those terms are defined in Section 2 of 
23the Business Enterprise for Minorities, Females, and Persons 
24with Disabilities Act, may also shall select and designate 
25whether that business is to be certified as a "female-owned 
26business", "minority-owned business", or "business owned by a 
 
 
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1person with a disability", as defined in Section 2 of the 
2Business Enterprise for Minorities, Females, and Persons with 
3Disabilities Act, or as a qualified SDVOSB or qualified VOSB 
4under this Section. 
5 "Control" means the exclusive, ultimate, majority, or sole 
6control of the business, including but not limited to capital 
7investment and all other financial matters, property, 
8acquisitions, contract negotiations, legal matters, 
9officer-director-employee selection and comprehensive hiring, 
10operation responsibilities, cost-control matters, income and 
11dividend matters, financial transactions, and rights of other 
12shareholders or joint partners. Control shall be real, 
13substantial, and continuing, not pro forma. Control shall 
14include the power to direct or cause the direction of the 
15management and policies of the business and to make the 
16day-to-day as well as major decisions in matters of policy, 
17management, and operations. Control shall be exemplified by 
18possessing the requisite knowledge and expertise to run the 
19particular business, and control shall not include simple 
20majority or absentee ownership.
21 "Qualified service-disabled veteran" means a
veteran who 
22has been found to have 10% or more service-connected disability 
23by the United States Department of Veterans Affairs or the 
24United States Department of Defense.
25 "Qualified service-disabled veteran-owned small business" 
26or "SDVOSB" means a small business (i) that is at least 51% 
 
 
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1owned by one or more qualified service-disabled veterans living 
2in Illinois or, in the case of a corporation, at least 51% of 
3the stock of which is owned by one or more qualified 
4service-disabled veterans living in Illinois; (ii) that has its 
5home office in Illinois; and (iii) for which items (i) and (ii) 
6are factually verified annually by the Department of Central 
7Management Services.
8 "Qualified veteran-owned small business" or "VOSB" means a 
9small business (i) that is at least 51% owned by one or more 
10qualified veterans living in Illinois or, in the case of a 
11corporation, at least 51% of the stock of which is owned by one 
12or more qualified veterans living in Illinois; (ii) that has 
13its home office in Illinois; and (iii) for which items (i) and 
14(ii) are factually verified annually by the Department of 
15Central Management Services. 
16 "Service-connected disability" means a disability incurred 
17in the line of duty in the active military, naval, or air 
18service as described in 38 U.S.C. 101(16).
19 "Small business" means a business that has annual gross 
20sales of less than $75,000,000 as evidenced by the federal 
21income tax return of the business. A firm with gross sales in 
22excess of this cap may apply to the Department of Central 
23Management Services for certification for a particular 
24contract if the firm can demonstrate that the contract would 
25have significant impact on SDVOSB or VOSB as suppliers or 
26subcontractors or in employment of veterans or 
 
 
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1service-disabled veterans.
2 "State agency" has the same meaning as in Section 2 of the 
3Business Enterprise for Minorities, Females, and Persons with 
4Disabilities Act. 
5 "Time of hostilities with a foreign country" means any 
6period of time in the past, present, or future during which a 
7declaration of war by the United States Congress has been or is 
8in effect or during which an emergency condition has been or is 
9in effect that is recognized by the issuance of a Presidential 
10proclamation or a Presidential executive order and in which the 
11armed forces expeditionary medal or other campaign service 
12medals are awarded according to Presidential executive order. 
13 "Veteran" means a person who (i) has been a member of the 
14armed forces of the United States or, while a citizen of the 
15United States, was a member of the armed forces of allies of 
16the United States in time of hostilities with a foreign country 
17and (ii) has served under one or more of the following 
18conditions: (a) the veteran served a total of at least 6 
19months; (b) the veteran served for the duration of hostilities 
20regardless of the length of the engagement; (c) the veteran was 
21discharged on the basis of hardship; or (d) the veteran was 
22released from active duty because of a service connected 
23disability and was discharged under honorable conditions.
24 (f) Certification program. The Illinois Department of 
25Veterans' Affairs and the Department of Central Management 
26Services shall work together to devise a certification 
 
 
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1procedure to assure that businesses taking advantage of this 
2Section are legitimately classified as qualified 
3service-disabled veteran-owned small businesses or qualified 
4veteran-owned small businesses. 

5 (g) Penalties.
6  (1) Administrative penalties. The Department of 
7 Central Management Services shall suspend any person who 
8 commits a violation of Section 17-10.3 or subsection (d) of 
9 Section 33E-6 of the Criminal Code of 1961 or the Criminal 
10 Code of 2012 relating to this Section from bidding on, or 
11 participating as a contractor, subcontractor, or supplier 
12 in, any State contract or project for a period of not less 
13 than 3 years, and, if the person is certified as a 
14 service-disabled veteran-owned small business or a 
15 veteran-owned small business, then the Department shall 
16 revoke the business's certification for a period of not 
17 less than 3 years. An additional or subsequent violation 
18 shall extend the periods of suspension and revocation for a 
19 period of not less than 5 years. The suspension and 
20 revocation shall apply to the principals of the business 
21 and any subsequent business formed or financed by, or 
22 affiliated with, those principals.
23  (2) Reports of violations. Each State agency shall 
24 report any alleged violation of Section 17-10.3 or 
25 subsection (d) of Section 33E-6 of the Criminal Code of 
26 1961 or the Criminal Code of 2012 relating to this Section 
 
 
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1 to the Department of Central Management Services. The 
2 Department of Central Management Services shall 
3 subsequently report all such alleged violations to the 
4 Attorney General, who shall determine whether to bring a 
5 civil action against any person for the violation.
6  (3) List of suspended persons. The Department of 
7 Central Management Services shall monitor the status of all 
8 reported violations of Section 17-10.3 or subsection (d) of 
9 Section 33E-6 of the Criminal Code of 1961 or the Criminal 
10 Code of 2012 relating to this Section and shall maintain 
11 and make available to all State agencies a central listing 
12 of all persons that committed violations resulting in 
13 suspension.
14  (4) Use of suspended persons. During the period of a 
15 person's suspension under paragraph (1) of this 
16 subsection, a State agency shall not enter into any 
17 contract with that person or with any contractor using the 
18 services of that person as a subcontractor.
19  (5) Duty to check list. Each State agency shall check 
20 the central listing provided by the Department of Central 
21 Management Services under paragraph (3) of this subsection 
22 to verify that a person being awarded a contract by that 
23 State agency, or to be used as a subcontractor or supplier 
24 on a contract being awarded by that State agency, is not 
25 under suspension pursuant to paragraph (1) of this 
26 subsection. 
 
 
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1(Source: P.A. 96-96, eff. 1-1-10; 97-260, eff. 8-5-11; 97-1150, 
2eff. 1-25-13.)".


3 Section 99. Effective date. This Act takes effect upon 
4becoming law.".