Ask the Expert – Procurement Registration

Q.  We have submitted a bid proposal for a contract with a state agency in Illinois. We were instructed that we must register with the Illinois State Board of Elections. Is this registration different than our existing lobbyist registration? If so, what does that mean for our company?

A. The simple answer is yes. The Illinois Procurement Code requires business entities, whose business or potential business exceeds an aggregate annual total of more than $50,000, to register with the Board of Elections and comply with the state’s Election Code. This registration must be completed prior to submitting any bid that would cause the business entity to exceed the threshold.
In addition to the business entity’s name and corporate contact information, the business entity must disclose certain affiliate entities and affiliated individuals. These affiliates include corporate parents, operating subsidiaries, operating subsidiaries of their corporate parents, persons with a significant ownership interest or distributive shares, executive employees, and spouses of any of these affiliated individuals. However, any entities or individuals prohibited by federal law from making contributions or expenditures in elections do not need to be included in the business registration.
In addition to this initial registration, the registration must be updated quarterly to account for any changes to the entities or that list of affiliates, and, if there is a bid or proposal pending, it must be updated within seven days of any changes that occur. This constant maintenance continues for up to two years following the expiration or termination of the contracts. Failure to maintain this registration could result in voiding all active contracts with the state or its agencies.
Additional requirements of the registration include providing notice to political committees in receipt of contributions from the registered entity and their affiliates, disclosures to the state agency and the Illinois Secretary of State of the register entities’ lobbying activity in the state, and certifications of your compliance with these registration requirements.
These business entity registrations are complex and contain pitfalls if not carefully and constantly maintained. So, it is important to familiarize yourself with each of these requirements and to constantly review your registration to ensure full compliance.

Comply with state and local procurement lobbying rules. Our online guidebooks make it easy to view regulations all in one place. Learn more here.