Public Act 097-0411
 
HB3158 EnrolledLRB097 07063 PJG 47156 b


  
    AN ACT concerning finance.
  
 
    Be it enacted by the People of the State of Illinois,
 
represented in the General Assembly:
  


 
    Section 5. The Illinois Procurement Code is amended  by 
changing Section 50-37 as follows:
 
    (30 ILCS 500/50-37)
    Sec. 50-37. Prohibition of political contributions.
    (a) As used in this Section:
        The terms "contract", "State contract", and "contract 
    with a State agency" each mean any contract, as defined in 
    this  Code, between a business entity and a State agency let 
    or awarded pursuant to this  Code.  The terms "contract", 
    "State contract", and "contract with a State agency"  do not 
    include cost reimbursement contracts; purchase of care 
    agreements as defined in Section 1-15.68 of this  Code; 
    contracts for projects eligible for full or partial 
    federal-aid funding reimbursements authorized by the 
    Federal Highway Administration; grants, including but are 
    not limited to grants for job training or transportation; 
    and grants, loans, or tax credit agreements for economic 
    development purposes. 
        "Contribution" means a contribution as defined in 
    Section 9-1.4 of the Election Code.
        "Declared candidate" means a person who has filed a 
    statement of candidacy and petition for nomination or 
    election in the principal office of the State Board of 
    Elections. 
        "State agency" means and includes all boards, 
    commissions, agencies, institutions, authorities, and 
    bodies politic and corporate of the State, created by or in 
    accordance with the Illinois Constitution or State 
    statute, of the executive branch of State government and 
    does include colleges, universities,

public employee 
    retirement systems, and institutions under the 
    jurisdiction of the governing boards of the University of 
    Illinois, Southern Illinois University, Illinois State 
    University, Eastern Illinois University, Northern Illinois 
    University, Western Illinois University, Chicago State 
    University, Governors State University, Northeastern 
    Illinois University, and the Illinois Board of Higher 
    Education. 
        "Officeholder" means the Governor, Lieutenant 
    Governor, Attorney General, Secretary of State, 
    Comptroller, or Treasurer. The Governor shall be 
    considered the officeholder responsible for awarding all 
    contracts by all officers and employees of, and vendors and 
    others doing business with, executive branch State 
    agencies under the jurisdiction of the Executive Ethics 
    Commission and not within the jurisdiction of the Attorney 
    General, the Secretary of State, the Comptroller, or the 
    Treasurer.
        "Sponsoring entity" means a sponsoring entity as 
    defined in Section 9-3 of the Election Code.
        "Affiliated person" means (i) any person with any 
    ownership

interest or distributive share of the bidding or 
    contracting business entity in excess of 7.5%, (ii) 
    executive employees of the bidding or contracting business 
    entity, and (iii) the spouse of any such persons. 
    "Affiliated person" does not include a person prohibited by 
    federal law from making contributions or expenditures in 
    connection with a federal, state, or local election. 
        "Affiliated entity" means (i) any corporate parent and 
    each operating subsidiary of the bidding or contracting 
    business entity, (ii) each operating subsidiary of the 
    corporate parent of the bidding or contracting business 
    entity, (iii) any organization recognized by the United 
    States Internal Revenue Service as a tax-exempt 
    organization described in Section 501(c) of the Internal 
    Revenue Code of 1986 (or any successor provision of federal 
    tax law) established by the bidding or contracting  business 
    entity, any affiliated entity of that business entity, or 
    any affiliated person of that business entity, or (iv) any 
    political committee for which the bidding or contracting 
    business entity, or any 501(c) organization described in 
    item (iii) related to that business entity, is the 
    sponsoring entity. "Affiliated entity" does not include an 
    entity prohibited by federal law from making contributions 
    or expenditures in connection with a federal, state, or 
    local election. 
        "Business entity" means any entity doing business for 
    profit, whether organized as a corporation, partnership, 
    sole proprietorship, limited liability company or 
    partnership, or otherwise. 
        "Executive employee" means (i) the President, 
    Chairman, or Chief Executive Officer of a business entity 
    and any other individual that fulfills equivalent duties as 
    the President, Chairman of the Board, or Chief Executive 
    Officer of a business entity; and (ii) any employee of a 
    business entity whose compensation is determined directly, 
    in whole or in part, by the award or payment of contracts 
    by a State agency to the entity employing the employee.  A 
    regular salary that is paid irrespective of the award or 
    payment of a contract with a State agency shall not 
    constitute "compensation" under item (ii) of this 
    definition. "Executive employee" does not include any 
    person prohibited by federal law from making contributions 
    or expenditures in connection with a federal, state, or 
    local election. 
    (b) Any business entity whose contracts with State 
agencies, in the aggregate, annually total more than $50,000, 
and any affiliated entities or affiliated persons of such 
business entity, are prohibited from making any contributions 
to any political committees established to promote the 
candidacy of (i) the officeholder responsible for awarding the 
contracts or (ii) any other declared candidate for that office. 
This prohibition shall be effective for the duration of the 
term of office of the incumbent officeholder awarding the 
contracts or for a period of 2 years following the expiration 
or termination of the contracts, whichever is longer.
    (c) Any business entity whose aggregate pending bids and 
proposals on State contracts total more than $50,000, or whose 
aggregate pending  bids and proposals on State contracts 
combined with the business entity's aggregate annual total 
value of State contracts exceed $50,000, and any affiliated 
entities or affiliated persons of such business entity, are 
prohibited from making any contributions to any political 
committee

established to promote the candidacy of the 
officeholder responsible for awarding the contract on which the 
business entity has submitted a bid or proposal during the 
period beginning on the date the invitation for bids or request 
for proposals is issued and ending on the day after the date 
the contract is awarded.
    (c-5) For the purposes of the prohibitions under 
subsections (b) and (c) of this Section, (i) any contribution 
made to a political committee established to promote the 
candidacy of the Governor or a declared candidate for  the 
office of Governor shall also be considered as having been made 
to a political committee established to promote the candidacy 
of the Lieutenant Governor, in the case of the Governor, or the 
declared candidate for Lieutenant Governor having filed a joint 
petition, or write-in declaration of intent, with the declared 
candidate for Governor, as applicable, and (ii) any 
contribution made to a political committee established to 
promote the candidacy of the Lieutenant Governor or a declared 
candidate for the office of Lieutenant Governor shall also be 
considered as having been made to a political committee 
established to promote the candidacy of the Governor, in the 
case of the Lieutenant Governor, or the declared candidate for 
Governor having filed a joint petition, or write-in declaration 
of intent, with the declared candidate for Lieutenant Governor, 
as applicable. 
    (d) All contracts between State agencies and a business 
entity that violate subsection (b) or (c) shall be voidable 
under Section 50-60. If a business entity violates subsection 
(b) 3 or more times within a 36-month period, then all 
contracts between State agencies and that business entity shall 
be void, and that business entity shall not bid or respond to 
any invitation to bid or request for proposals from any State 
agency or otherwise enter into any contract with any State 
agency for 3 years from the date of the last violation. A 
notice of each violation and the penalty imposed shall be 
published in both the Procurement Bulletin and the Illinois 
Register.
    (e) Any political committee that has received a 
contribution in violation of subsection (b) or (c) shall pay an 
amount equal to the value of the contribution to the State no 
more than 30 days after notice of the violation concerning the 
contribution appears in the Illinois Register. Payments 
received by the State

pursuant to this subsection shall be 
deposited into the general revenue

fund.

(Source: P.A. 95-971, eff. 1-1-09; 95-1038, eff. 3-11-09; 
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); 96-848, eff. 
1-1-10.)
 

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