Ill. Admin. Code tit. 44, § 1.5037 - Vendor Registration, Certification and Prohibition on Political Contributions
a)
Introduction
1) Illinois statute
[10 ILCS
5/9-35 and 30 ILCS 500/20-160 and 50-37]:
A) restricts political contributions by
vendors, affiliated persons, and affiliated entities;
B) requires registration with the State Board
of Elections (SBEL); and
C)
requires solicitation and contract certifications relative to the requirements
of the statutes.
2) This
Section supplements requirements found in statutes and does not excuse
compliance with any of those requirements.
b) General Registration Requirements
1) These requirements apply to contracts,
bids and proposals that are subject to the Code :
A) Bids/proposals 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 proposals include pending bids
and proposals.
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/proposals for State contracts exceeds $50,000, or whose aggregate value of
State contracts and bids/proposals 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/proposals. Vendors must register with SBEL when
the vendor determines that the value of the contracts and bids/proposals 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 .
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 provide a copy of the
Registration Certificate or be able to produce the Registration Certificate on
that date.
2) If a vendor is not
registered by the date the bid or offer is due, the SPO shall reject the bid or
offer as non-responsive.
3) Prior
to award or execution of 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.
d) Contracts
Documentation of
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-GS .
2) A State agency 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. The
vendor shall register with SBEL within 10 business days after orders exceed
$50,000.
4) For change order , 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, 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 pursuant
to Section 20-80 of the Code and those written two-party contracts that need
not be filed with the Comptroller. Agencies may require written confirmation of
the rule-imposed certification at any time.
e) Voidable contracts
Every
f) Prohibited
Political Contributions
1) Upon discovery of a
political contribution that is potentially prohibited by Section 50-37 of the
Code , the CPO shall send a letter requesting response from the business entity
that made the potentially prohibited contribution within 5 business days
acknowledging or denying that the contribution was prohibited.
2) If the CPO determines that a political
contribution was prohibited, all contracts held by the contributing business
entity are voidable, and the CPO shall determine if the circumstances
surrounding the prohibited political contribution warrant the voiding of any 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 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 State agency for 3
years from the date of the last violation.
4) If the CPO determines that a prohibited
political contribution is grounds to suspend a business entity pursuant to
Section
1.5560(b),
the business entity shall have the right to a hearing pursuant to Section
1.5560(g),
to be conducted in accordance with Subpart V.
5) If an affiliated person or affiliated
entity makes a political contribution that was prohibited, although the
business entity's contracts may not be void, the affiliated person or
affiliated entity violated Section 50-37 of the Code and may be subject to a
misdemeanor.
g) Notice
1) Notice of each violation of Section 50-37
and any penalty imposed for each violation shall be published on the Bulletin
and in the Illinois Register.
2)
The CPO 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 on the Bulletin and in
the Illinois Register.
Notes
Amended at 36 Ill. Reg. 10729, effective August 6, 2012
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