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91_SB0421eng SB421 Engrossed LRB9101383JMmb 1 AN ACT to amend the Illinois Procurement Code by changing 2 Section 50-35. 3 Be it enacted by the People of the State of Illinois, 4 represented in the General Assembly: 5 Section 5. The Illinois Procurement Code is amended by 6 changing Section 50-35 as follows: 7 (30 ILCS 500/50-35) 8 Sec. 50-35. Disclosure and potential conflicts of 9 interest. 10 (a) All offers from responsive bidders or offerors with 11 an annual value of more than $10,000 shall be accompanied by 12 disclosure of the financial interests of the contractor, 13 bidder, or proposer. The financial disclosure of each 14 successful bidder or offeror shall become part of the 15 publicly available contract or procurement file maintained by 16 the appropriate chief procurement officer. 17 (b) Disclosure by the responsive bidders or offerors 18 shall include any ownership or distributive income share that 19 is in excess of 5%, or an amount greater than 60% of the 20 annual salary of the Governor, of the bidding entity or its 21 parent entity, whichever is less, unless the contractor or 22 bidder (i) is a publicly traded entity subject to Federal 10K 23 reporting, in which case it may submit its 10K disclosure in 24 place of the prescribed disclosure, or (ii) is a privately 25 held entity that is exempt from Federal 10k reporting but has 26 more than 400 shareholders, in which case it may submit the 27 information that Federal 10k reporting companies are required 28 to report under 17 CFR 229.401 and list the names of any 29 person or entity holding any ownership share that is in 30 excess of 5% in place of the prescribed disclosure. The form 31 of disclosure shall be prescribed by the applicable chief SB421 Engrossed -2- LRB9101383JMmb 1 procurement officer and must include at least the names, 2 addresses, and dollar or proportionate share of ownership of 3 each person identified in this Section, their instrument of 4 ownership or beneficial relationship, and notice of any 5 potential conflict of interest resulting from the current 6 ownership or beneficial relationship of each person 7 identified in this Section having in addition any of the 8 following relationships: 9 (1) State employment, currently or in the previous 10 3 years, including contractual employment of services. 11 (2) State employment of spouse, father, mother, 12 son, or daughter, including contractual employment for 13 services in the previous 2 years. 14 (3) Elective status; the holding of elective office 15 of the State of Illinois, the government of the United 16 States, any unit of local government authorized by the 17 Constitution of the State of Illinois or the statutes of 18 the State of Illinois currently or in the previous 3 19 years. 20 (4) Relationship to anyone holding elective office 21 currently or in the previous 2 years; spouse, father, 22 mother, son, or daughter. 23 (5) Appointive office; the holding of any 24 appointive government office of the State of Illinois, 25 the United States of America, or any unit of local 26 government authorized by the Constitution of the State of 27 Illinois or the statutes of the State of Illinois, which 28 office entitles the holder to compensation in excess of 29 expenses incurred in the discharge of that office 30 currently or in the previous 3 years. 31 (6) Relationship to anyone holding appointive 32 office currently or in the previous 2 years; spouse, 33 father, mother, son, or daughter. 34 (7) Employment, currently or in the previous 3 SB421 Engrossed -3- LRB9101383JMmb 1 years, as or by any registered lobbyist of the State 2 government. 3 (8) Relationship to anyone who is or was a 4 registered lobbyist in the previous 2 years; spouse, 5 father, mother, son, or daughter. 6 (9) Compensated employment, currently or in the 7 previous 3 years, by any registered election or 8 re-election committee registered with the Secretary of 9 State or any county clerk in the State of Illinois, or 10 any political action committee registered with either the 11 Secretary of State or the Federal Board of Elections. 12 (10) Relationship to anyone; spouse, father, 13 mother, son, or daughter; who is or was a compensated 14 employee in the last 2 years of any registered election 15 or re-election committee registered with the Secretary of 16 State or any county clerk in the State of Illinois, or 17 any political action committee registered with either the 18 Secretary of State or the Federal Board of Elections. 19 (c) The disclosure in subsection (b) is not intended to 20 prohibit or prevent any contract. The disclosure is meant to 21 fully and publicly disclose any potential conflict to the 22 chief procurement officers, State purchasing officers, their 23 designees, and executive officers so they may adequately 24 discharge their duty to protect the State. 25 (d) In the case of any contract for personal services in 26 excess of $50,000; any contract competitively bid in excess 27 of $250,000; any other contract in excess of $50,000; when a 28 potential for a conflict of interest is identified, 29 discovered, or reasonably suspected it shall be reviewed and 30 commented on in writing by the Governor of the State of 31 Illinois, or by an executive ethics board or commission he or 32 she might designate. The comment shall be returned to the 33 responsible chief procurement officer who must rule in 34 writing whether to void or allow the contract, bid, offer, or SB421 Engrossed -4- LRB9101383JMmb 1 proposal weighing the best interest of the State of Illinois. 2 The comment and determination shall become a publicly 3 available part of the contract, bid, or proposal file. 4 (e) These threshholds and disclosure do not relieve the 5 chief procurement officer, the State purchasing officer, or 6 their designees from reasonable care and diligence for any 7 contract, bid, offer, or proposal. The chief procurement 8 officer, the State purchasing officer, or their designees 9 shall be responsible for using any reasonably known and 10 publicly available information to discover any undisclosed 11 potential conflict of interest and act to protect the best 12 interest of the State of Illinois. 13 (f) Inadvertent or accidental failure to fully disclose 14 shall render the contract, bid, proposal, or relationship 15 voidable by the chief procurement officer if he or she deems 16 it in the best interest of the State of Illinois and, at his 17 or her discretion, may be cause for barring from future 18 contracts, bids, proposals, or relationships with the State 19 for a period of up to 2 years. 20 (g) Intentional, willful, or material failure to 21 disclose shall render the contract, bid, proposal, or 22 relationship voidable by the chief procurement officer if he 23 or she deems it in the best interest of the State of Illinois 24 and shall result in debarment from future contracts, bids, 25 proposals, or relationships for a period of not less than 2 26 years and not more than 10 years. Reinstatement after 2 27 years and before 10 years must be reviewed and commented on 28 in writing by the Governor of the State of Illinois, or by an 29 executive ethics board or commission he or she might 30 designate. The comment shall be returned to the responsible 31 chief procurement officer who must rule in writing whether 32 and when to reinstate. 33 (h) In addition, all disclosures shall note any other 34 current or pending contracts, proposals, leases, or other SB421 Engrossed -5- LRB9101383JMmb 1 ongoing procurement relationships the bidding, proposing, or 2 offering entity has with any other unit of State government 3 and shall clearly identify the unit and the contract, 4 proposal, lease, or other relationship. 5 (Source: P.A. 90-572, eff. 2-6-98.) 6 Section 99. Effective date. This Act takes effect upon 7 becoming law.