Ill. Admin. Code tit. 44 § 1.5037

Current through Register Vol. 48, No. 49, December 6, 2024

Section 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 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-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 solicitation issued and contract executed by the State shall contain a statement that the contract is voidable under Section 50-60 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 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.

Ill. Admin. Code tit. 44, § 1.5037

Amended at 36 Ill. Reg. 10729, effective August 6, 2012

Amended at 38 Ill. Reg. 20884, effective 10/31/2014

Amended at 46 Ill. Reg. 10208, effective 6/2/2022