Current through Register Vol. 48, No. 12, March 22, 2024
a) Introduction
Illinois statute [
10 ILCS
5/9-35 and 30 ILCS 500/20-160 and 50-37] restricts
political contributions by vendors and affiliated entities, requires
registration with the State Board of Elections (SBEL), and requires
solicitation and contract certifications relative to the requirements of the
statutes. This Section supplements requirements found in the statutes and does
not excuse compliance with any of those requirements.
b) General Registration Requirements
1) These requirements apply to contracts,
bids and offers that are subject to the Code:
A) Bids/offers referenced in this Section are
those submitted in response to a competitive solicitation that is posted to the
Bulletin, regardless of the value assigned to the procurement.
B) Bids and offers include pending bids and
offers.
C) These requirements
generally apply to a vendor whose existing State contracts have an aggregate
value in excess of $50,000, or whose aggregate value of bids/offers for State
contracts exceeds $50,000, or whose aggregate value of State contracts and
bids/offers exceeds $50,000.
D)
This value is calculated on a calendar-year basis.
2) On a calendar-year basis, each vendor or
potential vendor must keep track of the value of contracts and bids/offers.
Vendors must register with SBEL when the vendor determines that the value of
the contracts and bids/offers meets the threshold for registration.
3) An "executive employee" means:
A) the President, Chairman of the Board,
Chief Executive Officer and/or other individuals who fulfill equivalent duties
as the President, Chairman of the Board or Chief Executive Officer;
and/or
B) any employee 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,
irrespective of the employee's title or status in the business entity. For the
purposes of this subsection (b)(3)(B), compensation determined directly by
award or payment of contracts means a payment over and above regular salary
that would not be made if it were not for the award of the contract.
4) Businesses required to register
have a continuing duty to ensure that the registration is accurate in
accordance with Sections 20-160 and 50-37 of the Code.
c) Bids and Proposals
1) In order to be considered for award, a
vendor who meets the requirements for registration must be registered with SBEL
as of the date the bid or offer is due and shall be able to produce a copy of
the Registration Certificate on that date.
2) If a vendor who meets the requirements for
registration is not registered by the date the bid or offer is due, the CPO-HE
shall review the bid or offer to determine whether the bidder or offeror made a
good faith effort to comply with the registration requirements prior to the bid
or offer being due.
A) Good faith effort may
consist of, but is not limited to, an attempt to register either as a parent or
subsidiary, registration under a prior name, acts of God that made registration
impossible, or other demonstrated effort to register in advance of the bid or
offer being due.
B) If the CPO-HE
finds good faith efforts were made to register, the CPO-HE shall notify the
bidder or offeror it has 5 business days to achieve compliance with the
registration requirements.
3) Prior to award or execution of a contract,
the SPO, or a designee of the SPO, shall verify that the vendor who meets the
requirements for registration has registered with SBEL and shall document
vendor compliance.
4) Annual
certification through the vendor portal in accordance with Section
4.1535 satisfies
the requirements of this Section.
5) A bid or offer that fails to meet the
requirements for registration with SBEL shall be rejected as
non-responsive.
d)
Contracts
Documentation of vendor compliance must be in the procurement
file in relation to any contract for which a vendor is required to register as
set forth in this subsection (d), unless the vendor certifies it is not
required to register.
1) For contract
renewals and extensions, if the value of the renewal or extension by itself, or
in combination with the contract being renewed/extended and other contracts and
bids/proposals exceeds $50,000, the vendor must provide documentation of vendor
compliance upon request and make the appropriate contract certification, if it
has not already done so. The Registration Certificate or other evidence of
vendor compliance may be provided by reference to and incorporation of the
vendor's prequalification by the CPO-HE.
2) A university shall identify in the
solicitation whether the contract is estimated to exceed $50,000 annually.
Vendors submitting bids or offers for master contracts estimated to exceed
$50,000 annually regardless of consumption are required to register with
SBEL.
3) For indefinite
quantity/estimated value contracts that are not estimated to exceed $50,000
annually, a vendor who is otherwise not required to register shall register
with SBEL when the value of orders placed pursuant to an indefinite/estimated
value contract plus all other contracts and bids/proposals exceeds
$50,000.
4) For change orders, if
the value of the change order, by itself or in combination with the contract
being renewed plus other contracts and bids/proposals exceeds $50,000 annually,
the vendor must provide the Registration Certificate or other evidence of
vendor compliance upon request and make the appropriate contract certification,
if it has not already done so.
5)
Any contracts mistakenly executed in violation of this Section must be amended
to include the contract certifications, and the vendor must supply the
Registration Certificate or other evidence of vendor compliance upon request.
If any violation by the vendor is not cured within 5 business days after
receipt of notification of the violation, the contract is voidable by the State
without penalty.
6) Contract
certification required by Section 20-160 of the Code shall be included in or
added to each contract that must be filed with the State Comptroller in
accordance with Section 20-80 of the Code and those written two-party contracts
that need not be filed with the Comptroller. Universities may require written
confirmation of the rule-imposed certification at any time.
e) Each solicitation issued and
contract executed by the State shall be deemed to contain a statement that the
contract is voidable under Section 50-60 of the Code if the bidder, offeror or
contractor fails to comply with Section 20-160 of the Code.
f) Prohibited Political Contributions
1) Upon discovery of a political contribution
that is potentially prohibited by Section 50-37 of the Code, the CPO-HE, within
5 business days, shall send a letter requesting response from the business
entity that made the potential prohibited contribution acknowledging or denying
that the contribution was prohibited.
2) If the CPO-HE determines that a political
contribution was prohibited, all contracts held by the contributing business
entity are voidable, and the CPO-HE shall determine if the circumstances
surrounding the prohibited political contribution warrant the voiding of these
contracts.
3) If a business entity
violates Section 50-37(b) of the Code three or more times within a 36 month
period, the CPO-HE shall void all contracts with the business entity and the
business entity shall be prohibited from responding to any solicitation issued
by any State agency or entering into a contract with any university for three
years from the date of the last violation.
4) If the CPO-HE determines that a prohibited
political contribution is grounds to suspend a business entity pursuant to
Section
4.5560(b),
the business entity shall have the right to a hearing in accordance with
Section
4.5560(h),
to be conducted in accordance with Subpart V.
g) Notice
1) Notice of each violation of Section 50-37
and any penalty imposed for each violation shall be published in the Illinois
Register and the Bulletin.
2) The
CPO-HE shall directly notify a political committee in receipt of a prohibited
political contribution that payment equal to the amount of the contribution is
due the State of Illinois within 30 days after publication of the violation in
the Illinois Register.
3) If an
amount owed by a political committee as a result of a prohibited political
contribution is not paid and is deemed uncollectible for any reason, notice of
the political committee's nonpayment shall be published in the Illinois
Register and the Bulletin.