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HB 3537

PROCUREMENT-DISCLOSURE

104th Regular Session Introduced by Katie Stuart

HB 3537 keeps financial disclosures but makes the Commission on Equity and Inclusion review discretionary, only upon request by procurement officers.

Rule 19(a) / Re-referred to Rules Committee
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Bill Summary · HB 3537

Summary — HB 3537 (PROCUREMENT‑DISCLOSURE)

Status: Filed 2/18/2025; Rule 19(a) / Re‑referred to Rules Committee (most recent action). Primary sponsor: Rep. Katie Stuart.

Purpose

HB 3537 amends Section 50‑35 of the Illinois Procurement Code to change how financial disclosure information and potential conflict‑of‑interest reviews are routed and reviewed — specifically modifying the role of the Commission on Equity and Inclusion in the procurement disclosure process.

Key provisions

  • Amends 30 ILCS 500/50‑35 (financial disclosure and potential conflicts of interest) — requirements that accompany bids, offers, vendor portal submissions, and subcontracts with an annual value above the small purchase threshold (see Section 20‑20).
  • Maintains existing disclosure content and obligations, including:
    • Identification of owners or persons with ownership/distributive income share in excess of 5% (or an amount greater than 60% of the Governor’s annual salary, whichever is less).
    • Exceptions for certain publicly‑traded entities (e.g., 10‑K reporting) or companies with >100 shareholders.
    • Required disclosure of specified relationships and connections (state employment within recent years, elective/appointive office, lobbyist relationships, campaign committee relationships, etc.).
    • A continuing obligation to supplement disclosures for accuracy during procurement and contract term.
    • Disclosure of certain adverse events in the past 10 years (suspensions/debarments, bankruptcies, licensing or professional discipline, criminal felony convictions).
  • Change in recipient/review role for Commission on Equity and Inclusion:
    • The bill’s introduced text removed explicit filing or mandatory review references to the Commission on Equity and Inclusion (previous law required filing with both the Procurement Policy Board and the Commission).
    • House Amendment 001 (filed 3/21/2025) restores a conditional role for the Commission: "Upon request from the chief procurement officer or the State procurement officer, the Commission on Equity and Inclusion shall review financial disclosures submitted under this Section" and similarly may review contracts for potential conflicts upon request. Other cross‑references are adjusted to read "as applicable."
  • The financial disclosure remains a material term of the contract and part of the public contract/procurement file.

Who is affected

  • Bidders, offerors, vendors, contractors, and subcontractors submitting bids/offers or subcontracts above the small purchase threshold.
  • Chief procurement officers, the State procurement officer, the Procurement Policy Board, and the Commission on Equity and Inclusion (whose role is shifted from mandatory recipient to conditional reviewer under the amendment).
  • Entities or individuals identified in disclosures (owners, executives, lobbyists, relatives of public officials).

Procedural / timeline notes

  • Introduced: 2/18/2025. House Committee Amendment No. 1 filed 3/21/2025 (modifies Commission’s role to be reviewable upon request). Referred to Intergovernmental Affairs (3/24/2025) and re‑referred to Rules Committee under Rule 19(a).

Potential impact / considerations

  • Transparency: core disclosure requirements remain unchanged; public procurement files still include financial disclosures.
  • Administrative change: reduces an automatic filing/review role for the Commission on Equity and Inclusion and makes its involvement discretionary (by request), potentially reducing routine review workload for the Commission while preserving its ability to review cases at procurement officers’ request.
  • Compliance: bidders and contractors must continue to make accurate, continuing disclosures under penalty of perjury; procurement officers retain responsibility to identify and address potential conflicts.

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

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