HB3742 104TH GENERAL ASSEMBLY

LRB104 09855 HLH 19923 b

104TH GENERAL ASSEMBLY
State of Illinois
2025 and 2026
HB3742

Introduced 2/18/2025, by Rep. Robert "Bob" Rita

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.

A BILL FOR

AN ACT concerning State government.

Be it enacted by the People of the State of Illinois, represented in the General Assembly:

Section 1. Short title. This Act may be cited as the Procurement Bid Ethics Transparency Act.

Section 5. Purpose. The purpose of this Act is to prevent conflicts of interest in the procurement bidding process for units of local government by prohibiting directors, employees, investors, or immediate family members of any director, employee, or investor of any corporation, organization, or entity that operates a procurement bid process for a unit of local government from simultaneously submitting and competing for a bid in that unit of local government. This Act is intended to ensure transparency and accountability in local government contracting.

Section 10. Definitions. As used in this Act:

"Director" means an individual serving as a director or officer, or in a similar position, in any corporation, organization, or entity that directly or indirectly operates a procurement bid process for a unit of local government.

"Employee" means an individual employed by a corporation, organization, or entity that directly or indirectly operates a procurement bid process for a unit of local government, including a full-time, part-time, and contract employee.

"Investor" means any individual or entity who holds ownership, equity interest, or shares in a corporation, organization, or entity that directly or indirectly operates a procurement bid process for a unit of local government.

"Immediate family member" means a spouse, child, parent, sibling, or any other relative residing in the same household as the individual.

"Procurement bid process" means the process through which a unit of local government solicits, evaluates, and awards contracts for goods, services, or construction projects, including any bidding, procurement, or contracting procedures.

"Unit of local government" means any municipality, county, school district, park district, library district, or other governmental body or agency in the State of Illinois that issues procurement bids.

Section 15. Prohibition on simultaneous submission and bidding.

(a) 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 without formally disclosing that involvement to the Executive Ethics Commission.

(b) The disclosure required by this Section must be submitted in writing to the Executive Ethics Commission prior to the submission of any bid or proposal for a contract in which the individual or entity is involved. The disclosure must include the following information:

(1) the name of the corporation, organization, or entity operating the procurement bid process;

(2) the names of the directors, employees, investors, and immediate family members who are involved in both the procurement process and submitting the bid;

(3) the specific procurement contract or opportunity for which the bid is being submitted and the nature of the relationship between the bidding entity and the procurement process operator; and

(4) any potential conflicts of interest or financial relationships between the bidding entity and the unit of local government administering the procurement.

Section 20. Civil penalties for failure to disclose.

(a) Any individual or entity who fails to make the required disclosure in accordance with Section 15 shall be subject to a civil penalty of up to $1,000,000.

(b) The Executive Ethics Commission shall be responsible for determining whether a violation has occurred and for imposing the penalty. The penalty shall be levied against the corporation, organization, or entity that fails to disclose the involvement of its directors, employees, investors, or immediate family members in the procurement bid process.

(c) The civil penalty shall be deposited into the General Revenue Fund and may be used for enforcement of procurement ethics and other public integrity initiatives.

Section 25. Enforcement and penalties.

(a) The Executive Ethics Commission shall have the authority to enforce the provisions of this Act. The Commission may investigate complaints, conduct audits, and issue subpoenas to enforce compliance.

(b) Any corporation, organization, or entity that fails to comply with the provisions of this Act may be prohibited from participating in future procurement processes or contracts with any unit of local government for a period of up to 5 years.

(c) In addition to the civil penalty imposed under Section 20, violators may be subject to additional penalties under State law, including fines and disqualification from participating in any public contracting process.

Section 30. Exceptions.

(a) This Act does not apply to individuals or entities making bids for procurements with units of local government that are not directly involved in the procurement process itself.

(b) The disclosure requirements do not apply to situations where the corporation, organization, or entity has no direct or indirect control over the procurement bid process.

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