2-92-320 Ineligibility for city transactions – Other offenses.
   (a)    No person or business entity shall participate in a transaction as defined herein, and may have its current transactions permanently or temporarily suspended or canceled, if that person or business entity:
      (1)   has been convicted of bribery or attempting to bribe a public officer or employee of the State of Illinois, or the federal government or any state or local government in the United States in that officer's or employee's official capacity; provided, however, that for purposes of this item (1) the term "local government" does not include the City of Chicago or any "sister agency" as defined in Section 1-23-010 of the City of Chicago. Persons who have been convicted of bribery or attempting to bribe a public officer or employee of the City of Chicago or any of its sister agencies shall be subject to the requirements set forth in Article I of Chapter 1-23 of this Code; or
      (2)   has been convicted of agreement or collusion among bidders or prospective bidders in restraint of freedom of competition by agreement to bid a fixed price, or otherwise; or
      (3)   has made an admission of guilt of such conduct described in (1) or (2) above which is a matter of record but has not been prosecuted for such conduct; or
      (4)   [Reserved.]
      (5)   has violated any regulation promulgated by the chief procurement officer that includes ineligibility as a consequence of its violation;
      (6)   has committed, within a 24-month period, three or more violations of Article II of Title 6 of this Code; or
      (7)   has been debarred by any local, state or federal government agency from doing business with such government agency as provided in subsection (d) of Section 1-23-020 of the Code, for the duration of the debarment by such government agency.
   For purposes of this section, where an official, agent or employee of a business entity has committed any conduct on behalf of such an entity, while acting within the scope of employment, that could warrant a finding of ineligibility, the business entity shall be chargeable with the conduct. If appropriate under the circumstances, one business entity may be chargeable with the conduct of an affiliated entity. For purposes of this section, business entities are affiliated if, directly or indirectly, one controls or has the power to control the other, or if a third person controls or has the power to control both entities. Indicia of control include, without limitation: interlocking management or ownership; identity of interests among family members; shared facilities and equipment; common use of employees; or organization of a business entity following the ineligibility of a business entity under this section, using substantially the same management, ownership or principals as the ineligible entity.
   (b)   Upon making a finding of ineligibility, the chief procurement officer shall determine the period of ineligibility imposed, which may include permanent or indefinite ineligibility or some lesser penalty. The period of ineligibility may be reduced, waived or rescinded by the chief procurement officer, upon the written application of the ineligible person or business entity, supported by documentation of either or both of the following reasons:
      (i)   reversal of the conviction or judgment on which the ineligibility is based, unless the conviction or judgment is based on an admission of conduct described in subparagraph (a)(1) or (a)(2) above; or
      (ii)   bona fide change in ownership and/or control of the business entity, or other mitigating factors sufficient in the judgment of the chief procurement officer to remove the conditions giving rise to the conduct that led to the ineligibility. Mitigating factors may include, without limitation: disciplinary action against all persons responsible for the acts giving rise to the ineligibility; remedial action designed to prevent a recurrence of the acts giving rise to the ineligibility; or a determination by the chief procurement officer that the past conduct of the business entity does not indicate a pattern or history of similar acts.
   (c)   An application to reduce or waive the period of ineligibility, or to suspend ineligibility for a specific transaction, shall be verified by the applicant. The determination to reduce or waive the period of ineligibility, or to suspend ineligibility for a specific transaction, shall be made in writing and shall specify the reasons for the decision.
   (d)   The chief procurement officer may also suspend the ineligibility of a person or business entity in order to allow execution of a transaction with the person or entity, upon written application by the head of a city agency or department affected by the proposed transaction, setting forth facts sufficient in the judgment of the chief procurement officer to establish:
      (i)   that the public health, safety or welfare of the city requires the goods or services of the person or business entity; and
      (ii)   that the city is unable to acquire the goods or services at comparable price and quality, and in sufficient quantity from other sources.
   (e)   The chief procurement officer is authorized to: (i) conduct investigations or hearings or other actions or proceedings, consistent with the requirements of due process of law and equal protection under the law, to accomplish the purposes of this section and section 2-92-540; (ii) promulgate rules governing ineligibility under this section and Section 2-92-540, including but not limited to the circumstances warranting extended ineligibility, reduction or waiver of ineligibility and a hearing process regarding a finding of ineligibility; and (iii) delegate to a designee his authority to conduct hearings under this section or section 2-92-540.
   (f)   For purposes of this section, the term "transaction" shall mean, without limitation, any contract, including contracts not awarded or administered under this chapter, concession agreement, retainer agreement, grant, loan, license, permit or other conferral of status that includes the city as a party and provides a benefit, whether monetary or otherwise, to another party to the transaction.
   (g)   This section shall not apply to any transaction with respect to which the Code otherwise provides a process for determining and imposing ineligibility for the same malfeasance provided for in this section. Upon request of the chief procurement officer or other city official, the corporation counsel shall make a conclusive determination as to any jurisdictional questions arising pursuant to this subsection (g).
(Prior code § 26-26; Amend Coun. J. 5-24-89, p. 1768; Amend Coun. J. 7-29-98, p. 75801; Amend Coun. J. 7-19-00, p. 38206, § 1; Amend Coun. J. 11-6-02, p. 96506, § 2; Amend Coun. J. 5-14-08, p. 27074, § 1; Amend Coun. J. 6-30-10, p. 95061, § 3; Amend Coun. J. 9-8-10, p. 99116, § 3; Amend Coun. J. 12-2-14, p. 99000, § 3; Amend Coun. J. 10-5-16, p. 33564, § 2; Amend Coun. J. 6-25-21, p. 32156, § 3; Amend Coun. J. 10-27-21, p. 39525, § 6; Amend Coun. J. 11-9-23, p. 5853, § 3; Amend Coun. J. 3-20-24, p. 10146, § 3)