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HB 3742

ETHICS-PROCUREMENT BIDS

104th Regular Session Introduced by Bob Rita

Prohibits insiders from bidding on local government contracts if they have involvement in the bid process unless they disclose to the Executive Ethics Commission.

Rule 19(a) / Re-referred to Rules Committee
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Bill Summary · HB 3742

HB 3742 — Procurement Bid Ethics Transparency Act (Illinois)

Overview
HB 3742 seeks to prevent conflicts of interest in local government procurement bidding by prohibiting certain insiders from simultaneously bidding on contracts in the same unit of local government unless they disclose their involvement to the Executive Ethics Commission. The bill emphasizes transparency and accountability in local contracting and imposes strong penalties for noncompliance. It is currently listed as Rule 19(a) / Re-referred to Rules Committee (introduced Feb 18, 2025; various readings and committee actions noted through March-April 2025).

Key Provisions
- Prohibition on simultaneous bid submissions
- A director, employee, investor, or immediate family member of any director/employee/investor of a entity that directly or indirectly operates a local-government procurement bid process may not submit and compete for a bid in the same unit of local government unless they disclose involvement to the Executive Ethics Commission.

  • Required disclosure (Section 15)

    • Disclosure must be submitted in writing to the Executive Ethics Commission before submitting any bid or proposal.
    • Details to disclose:
    • Name of the entity operating the procurement bid process.
    • Names of involved directors, employees, investors, and immediate family members.
    • The specific procurement contract/opportunity and the relationship to the operating entity.
    • Any potential conflicts of interest or financial relationships between the bidding entity and the local government unit.

  • Civil penalties for failure to disclose (Section 20)

    • Up to $1,000,000 civil penalty for failing to disclose.
    • Penalty assessed against the corporation/organization/entity that failed to disclose; determined by the Executive Ethics Commission.
    • Penalties deposited into the General Revenue Fund to support enforcement of procurement ethics and public integrity initiatives.

  • Enforcement and penalties (Section 25)

    • The Executive Ethics Commission may investigate complaints, conduct audits, and issue subpoenas.
    • Noncompliant corporations/organizations/entities may be prohibited from future procurement processes or contracts with any local government for up to 5 years.
    • Violations may incur additional penalties under state law, including fines and disqualification from public contracting.

  • Exceptions (Section 30)

    • The Act does not apply to bids for procurements where the entity is not directly involved in the procurement process.
    • Disclosure requirements do not apply if the entity has no direct or indirect control of the procurement bid process.

Definitions (Section 10)
- Directors, Employees, Investors, and Immediate Family Members: Broadly defined to cover individuals in positions related to entities that operate procurement processes.
- Procurement Bid Process: The process by which a unit of local government solicits, evaluates, and awards contracts.
- Unit of Local Government: Municipalities, counties, school districts, park districts, library districts, and other state-level local government bodies issuing bids.

Effective Date
- Takes effect upon becoming law (immediate effect).

Impact and Considerations
- Aims to close potential conflicts of interest by requiring upfront disclosure and enabling enforcement actions, including disqualification from bidding and substantial civil penalties.
- Broad definitions increase coverage, potentially affecting a wide range of entities involved in local government procurement.
- Could raise compliance costs for organizations that operate procurement processes and participate in local government bidding.

Status and Timeline
- Filed: February 7, 2025
- First Reading: February 18, 2025
- Referred to Rules Committee (initial): February 18, 2025
- Executive Committee action: Do Pass / Short Debate (March 19, 2025)
- Assigned to Executive Committee; Do Pass noted (March 11, 2025)
- Readings and House actions progressed through March 2025
- Current status: Rule 19(a) / Re-referred to Rules Committee (as of the latest update)

Compiled from official sources — confirm details with the bill’s official record.

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