Illinois Requires Information Filing About Exec Officers and Families to Bid on State Contracts
The State of Illinois has adopted legislation requiring any person whose aggregate bids and proposals on state contracts exceed $50,000 annually to file a Business Entity Registration Form that requires disclosure of all executive employees and their spouses and minor children. The law presumably would apply to investment managers seeking to manage state funds. The Form must be filed along with any bid/proposal in response to a state RFP. Illinois defines “executive employee” as a firm’s President, Chairman, or CEO as well as any employee whose compensation is determined directly, in whole or in part, by the award or payment of contracts.” The registration, which is made with the State Board of Elections, is designed to monitor political contributions.
OUR TAKE: Firms should be aware of these types of information reporting requirements when bidding to manage public funds. Failure to comply may not result in jail time, but it could ban you from bidding. Also, failure to comply with state anti-corruption laws could result in a PR nightmare.