FOR IMMEDIATE RELEASE
February 25, 2005
Hynes reform bill attacks “pay to play” politics
He also issues Executive Order restricting contributions to himself
Comptroller Dan Hynes today proposed a legislative package of reforms that would dramatically reduce the corrupting influence of campaign contributions on the awarding of state contracts. At the same time, he issued an Executive Order making his office subject to the restrictions immediately.
Hynes was joined by Sen. Miguel del Valle, D-Chicago, Rep. John Fritchey, D-Chicago, and Rep. Bill Black, R-Danville, all of whom have been outspoken on the need for these types of campaign finance reforms.
Hynes called his Government Integrity Initiative “a two-pronged attack on pay-to-play politics and a common sense means to make government conduct the people’s business in the light of day.”
The measures would mandate the following:
The purpose of these stricter disclosure requirements is to increase government accountability,” said Hynes. “They simply act as a strong deterrent to backroom deals and increase the public’s ability to follow the money.”
Under the Comptroller’s Executive Order, those bidding for contracts have to disclose Hynes campaign contributions to the Executive Inspector General of the Comptroller’s office. Further, the Order bans contributions from persons or entities with more than $10,000 in contracts with the Comptroller’s office.
“We must lead by example, and make it clear ethics reform is more than words,” said Hynes, who becomes the first statewide officeholder to restrict his campaign financing in such a manner.
“I am pleased to be working with Comptroller Hynes to make concrete campaign finance reform a reality,” said Sen. Del Valle, who will be the lead-sponsor of the legislation in the Senate. “The Comptroller’s proposal addresses my concerns about the need to stop feeding the public perception that there is a connection between campaign contributions and the awarding of state contracts.”
“Given our unfortunate history, we owe it to the people of the state of Illinois to take whatever steps we can to reassure them that public contracts are awarded on the basis of qualifications and not contributions,” said Rep. Fritchey, House sponsor of the measure.
Rep. Black called it “unfortunate there is a public perception that in order to do business with the state of Illinois, you must pay-to-play. I’m concerned this discourages qualified vendors from bidding, which shrinks competition, and that is not in the best interest of the state. These steps taken today, especially the contract disclosure components, will help change that perception for the better.”
Cynthia Canary, Director of the Illinois Campaign for Political Reform, endorsed the Hynes reform proposals. “The public deserves to know how its money is being spent and that state contracts are being awarded on merit rather than political connections.” Canary added that the ICPR hopes the provisions in Hynes’ Executive Order are expanded to all state Constitutional Officers.
The ban on contributions by contractors with more than $25,000 in state contracts would also apply to persons closely affiliated with the contractor such as owners and their spouses, as well as affiliated entities, such as subsidiaries and political committees controlled by the contractor. The ban would be for the remainder of the officeholder’s current term of office or two years beyond the end of the contract, whichever is greater.
If a contractor violates the ban, its state contracts are voidable by the state. If the ban is violated three times in a three year period, then all of its contracts are automatically void and the contractor is banned from bidding for additional state contracts for three years. All violations would be publicized in both the procurement bulletin and the Illinois Register.
Under Hynes’ proposal, the required disclosure by contract bidders of contributions to candidates for state office within the previous two years could not be used in the awarding of the contract. It would, however, become part of the publicly available procurement file and the contract file at the Comptroller’s office.
The contributions to be disclosed would have to exceed a total of $500.
Under the proposed law, the Comptroller would not pay bills based on contracts for which the required disclosures have not been filed with the Comptroller’s office.
Both of those proposals would be amendments to the Procurement Act.
“Given the scandals in Illinois in recent years, elected officials must take meaningful steps to eliminate the appearance of corruption,” said Hynes. “The public deserves it.”
From: http://www.ilcampaign.org/HynesStatement.html
State comptroller refuses to pay off-shore company
Andy Shaw
May 3, 2004 - There are more questions about an $11-million dollar state contract with a company that's based in Bermuda. Governor Rod Blagojevich says it's a good deal for Illinois, but the state comptroller is refusing to pay the company's bills. “I don't think we should be doing business with companies that move offshore and to avoid paying their fair share of taxes,” said State Comptroller Dan Hynes.
The Accenture company, which employs nearly 4 thousand people in Chicago, is headquartered on the island tax haven of Bermuda. And because of that, the state comptroller, Dan Hynes, is refusing to pay out $2-million dollars, the first installment of an $11-million dollar state contract to Accenture to streamline the state's telecommunication system.
“We have hundreds if not thousands of businesses in Illinois who employ as many as Accenture and they're paying taxes and they're not located in Bermuda,” Hynes said.
Accenture won't release tax figures, but the company claims to pay about the same amount as firms headquartered in the United States, and the Blagojevich administration is defending the deal which has already been criticized because the company is a campaign contributor.
Blagojevich's procurement chief worked as an Accenture consultant and the company is represented by political insider David Wilhelm.
“But I think the bigger picture here is we have an opportunity to save the taxpayers $200 million over the course of three years,” said Cheryle Jackson, the governor's press secretary.
“My instinct I guess would be to say if they're being good, corporate citizens, then they should have the same opportunities as other good corporate citizens have in the state,” said State Senator Barack Obama.
“It's one thing to criticize, why don't you offer some alternatives yourself?” said Gov. Blagojevich.
The Blagojevich administration is suggesting that Dan Hynes may be teaming up with a close political ally, house speaker Michael Madigan who has been at odds with the governor over budget issues, but Hynes says politics has nothing to do with it.
An Accenture spokesman is predicting a green light for the contract after it's reviewed by the procurement policy board.
From: http://abclocal.go.com/wls/story?section=News&id=1545209
Illinois Comptroller Hynes' Proposed Cosmetic Surgery Tax Sets a Dangerous Precedent
For Immediate Release: November 29, 2004
ARLINGTON HEIGHTS, Ill. – The 6 percent tax on elective cosmetic surgery procedures proposed by Illinois Comptroller Dan Hynes yesterday to fund a stem cell research institute sets a dangerous precedent that medical procedures are available to be taxed, said The American Society of Plastic Surgeons.
If the Illinois legislature approves this tax, Illinois would be only the second state in the country to tax medical procedures. This summer, a highly controversial bill was signed into law in New Jersey, to help resolve the state's large budget deficit.
“This tax is distressing on many levels,” said Scott Spear, MD, president of the American Society of Plastic Surgeons. “The people of Illinois should be very concerned about what this tax may mean to their health in the future. It's frightening to think that lawmakers now feel entitled to tax patients who choose to or need surgery. The idea that the legislature will decide whose operation is politically acceptable and whose deserves to be taxed is scary. What's next, a tax on bariatric, lasik, or orthopedic procedures based on the state's, rather than a physicians, interpretation of 'medically necessary?'”
The society is also concerned that the cosmetic surgery tax discriminates against women, 86 percent of the total cosmetic surgery population. Ninety-one percent of the total female cosmetic surgery population is of working age between 19 and 64 years.
“This is not the 'luxury tax' that Mr. Hynes would like the public to believe,” said Dr. Spear. “Plastic surgery, as the statistics illustrate, has become more mainstream. It is not just an indulgence of celebrities and rich people. It is a reasonable option for anyone who wants to look or feel better about their appearance.”
ASPS is the largest organization of board-certified plastic surgeons in the world and the foremost authority on cosmetic and reconstructive plastic surgery. With nearly 5,000 members, more than any other plastic surgery organization, ASPS is the definitive voice of the plastic surgery specialty. Viewed throughout the world as the pinnacle of information for new techniques, advances and plastic surgery trends, the society represents 94 percent of all the board-certified plastic surgeons in the U.S. Ninety-four percent of all ASPS members perform cosmetic plastic surgery and 89 percent of all ASPS members perform reconstructive plastic surgery. ASPS, founded in 1931, represents physicians certified by The American Board of Plastic Surgery or The Royal College of Physicians and Surgeons of Canada.
From: http://www.plasticsurgery.org/news_room/press_releases/Surgery-taxes.cfm