State of Illinois
90th General Assembly
Legislation

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90_HB1481eng

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          Creates the Illinois Procurement Code.  Provides for  the
      purchasing of supplies, services, and construction and, until
      1998,  the  leasing of real property and capital improvements
      by  the  State.  Establishes  a  Procurement   Policy   Board
      appointed  by the Governor to promulgate procurement policies
      and  rules.   Provides  for  a  Chief   Procurement   Officer
      appointed  by  the  Board  to  oversee  implementation of its
      policies. Grants general procurement and rulemaking authority
      to 16 State purchasing officers appointed by  State  officers
      of  the executive, legislative, and judicial branches and the
      governing boards of State colleges and universities.  Permits
      delegation   of   procurement   authority    under    certain
      circumstances.  Grants procurement authority for professional
      or  artistic  services  to  individual State entities.  Makes
      competitive sealed bidding  the  required  method  of  source
      selection,  with  exceptions  for  procurements  of  a small,
      emergency, or sole source nature.  Provides  for  procurement
      preferences,  contract  requirements, auditing, prohibitions,
      and penalties.  Amends the Governmental Joint Purchasing  Act
      and repeals various Acts and Sections of Acts governing State
      purchasing. Effective immediately.
                                                     LRB9002279DNsb
HB1481 Engrossed                               LRB9002279DNsb
 1        AN  ACT  to  create the Illinois Procurement Code, and to
 2    amend and repeal certain named Acts.
 3        Be it enacted by the People of  the  State  of  Illinois,
 4    represented in the General Assembly:
 5                              ARTICLE 1
 6                         GENERAL PROVISIONS
 7        Section  1-1.  Short title.  This Act may be cited as the
 8    Illinois Procurement Code.
 9        Section 1-5.  Public policy.  It is the purpose  of  this
10    Code  and  is declared to be the policy of the State that the
11    principles of competitive bidding and economical  procurement
12    practices  shall be applicable to all purchases and contracts
13    by or for any State agency.
14        Section 1-10.  Application.
15        (a)  This Code applies only  to  procurements  for  which
16    contractors  were  first  solicited on or after July 1, 1998.
17    This Code shall not be construed  to  affect  or  impair  any
18    contract,  or any provision of a contract, entered into prior
19    to the implementation date  of  this  Code  as  described  in
20    Article  99,  including  but  not  limited  to,  any covenant
21    entered into with respect to any  revenue  bonds  or  similar
22    instruments.
23        (b)  This  Code  shall  apply regardless of the source of
24    the funds  with  which  the  contracts  are  paid,  including
25    federal assistance moneys.  This Code shall not apply to: (1)
26    contracts between the State and its political subdivisions or
27    other  governments,  or  between  State  governmental  bodies
28    except as specifically provided in this Code; (2) grants; (3)
29    purchase of care; (4) contracts for personal services; or (5)
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 1    collective  bargaining contracts.  Nothing in this Code or in
 2    rules  promulgated  hereunder   shall   prevent   any   State
 3    governmental   body   from   complying  with  the  terms  and
 4    conditions  of  any  grant,  gift,  bequest,  or  cooperative
 5    agreement.
 6        Section 1-15.  Definitions.  For  the  purposes  of  this
 7    Code,  the  words set forth in the following Sections of this
 8    Article have the meanings set forth in those Sections.
 9        Section  1-15.03.   Bidder  or  offeror.    "Bidder"   or
10    "offeror"  means  any  person who submits a bid, proposal, or
11    other   type   of   offer.    These   terms   may   be   used
12    interchangeably.
13        Section 1-15.05.  Board.  "Board" means  the  Procurement
14    Policy Board.
15        Section   1-15.10.    Business.    "Business"  means  any
16    corporation, partnership,  individual,  sole  proprietorship,
17    joint  stock  company,  joint venture, or other private legal
18    entity.
19        Section  1-15.15.   Chief  Procurement  Officer.   "Chief
20    Procurement Officer" means that person designated as such  by
21    the Procurement Policy Board.
22        Section 1-15.17.  Concession.  "Concession" means any use
23    of  State  property,  primarily  real  estate, by a party not
24    associated with State government, whether or not a charge  is
25    levied for such use.
26        Section  1-15.20.   Construction.   "Construction"  means
27    building,  altering, repairing, improving, or demolishing any
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 1    public structure or building, or making improvements  of  any
 2    kind  to public real property.  Construction does not include
 3    the routine operation, routine repair, or routine maintenance
 4    of existing structures, buildings, or real property.
 5        Section  1-15.25.   Construction  agency.   "Construction
 6    agency" means the Capital Development Board for  construction
 7    or   remodeling   of  State-owned  facilities;  the  Illinois
 8    Department of Transportation for construction or  maintenance
 9    of  roads, highways, bridges, and airports; the Illinois Toll
10    Highway Authority for construction  or  maintenance  of  toll
11    highways;   and   any   other   State  agency  entering  into
12    construction contracts as authorized by law or by  delegation
13    from the Procurement Policy Board.
14        Section  1-15.30.   Contract.  "Contract" means all types
15    of State agreements, regardless of what they may  be  called,
16    for  the  procurement  or  use  of goods, services, including
17    professional or  artistic  services,  construction,  or  real
18    property leases, and including master contracts and contracts
19    for  financing  through  use of installment or lease-purchase
20    arrangements.
21        Section    1-15.35.      Cost-reimbursement     contract.
22    "Cost-reimbursement  contract" means a contract under which a
23    contractor is reimbursed for costs  that  are  allowable  and
24    allocable  in  accordance  with  the  contract  terms and the
25    provisions of this Code, and a fee, if any.
26        Section   1-15.40.    Council.    "Council"   means   the
27    Procurement Advisory Council.
28        Section 1-15.42.   Goods.   "Goods"  means  all  personal
29    property, including but not limited to, equipment, materials,
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 1    printing, and insurance, and the financing of those goods.
 2        Section 1-15.43.  Grant.  "Grant" means the furnishing by
 3    the  State  of assistance, whether financial or otherwise, to
 4    any person to support a program authorized by  law.  It  does
 5    not  include  an  award,  the  primary purpose of which is to
 6    procure an end product for the direct benefit or use  of  the
 7    State governmental body making the grant, whether in the form
 8    of  goods,  services,  or  construction; a contract resulting
 9    from such an award is not a grant but a procurement contract.
10        Section 1-15.45.  Invitation for bids.   "Invitation  for
11    bids" means the process by which a purchasing agency requests
12    information  from  bidders,  including all documents, whether
13    attached or incorporated by reference,  used  for  soliciting
14    bids.
15        Section  1-15.50.   Negotiation.  "Negotiation" means the
16    process of selecting a contractor other than  by  competitive
17    sealed bids, multi-step sealed bidding, or competitive sealed
18    proposals,  whereby a purchasing agency can establish any and
19    all  terms  and  conditions  of  a  procurement  contract  by
20    discussion with one or more prospective contractors.
21        Section 1-15.55.  Person.  "Person" means  any  business,
22    public   or  private  corporation,  partnership,  individual,
23    union, committee, club, unincorporated association  or  other
24    organization or group of individuals, or other legal entity.
25        Section  1-15.56.  Personal service.  "Personal services"
26    means services rendered to the State by an individual, as  an
27    employee  and  not  an  independent  contractor, and for whom
28    federal income taxes are withheld.
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 1        Section  1-15.57.   Price.   "Price"  means  any   dollar
 2    related  factor  relevant  to  the  State,  including but not
 3    limited to, discounts and transportation, and where specified
 4    in purchase specifications  or  descriptions,  "price"  means
 5    total or life cycle costs.
 6        Section   1-15.58.    Procurement.   "Procurement"  means
 7    buying, renting, leasing, licensing  or  otherwise  acquiring
 8    any  goods,  services,  construction or real estate lease. It
 9    also includes all functions that  pertain  to  the  obtaining
10    same,   including   describing  requirements,  selection  and
11    soliciting sources, preparing and awarding contracts, and all
12    phases of contract administration.
13        Section 1-15.60.   Professional  and  artistic  services.
14    "Professional  and  artistic  services"  means those services
15    provided under contract to a State  agency  by  a  person  or
16    business,  acting  as an independent contractor, qualified by
17    education, experience, and technical ability  to  advise  and
18    assist   in  solving  specific  management  and  programmatic
19    problems involving  the  organization,  planning,  direction,
20    control, and operation of State agencies.
21        Section   1-15.65.    Purchase   description.   "Purchase
22    description" means  the  words  used  in  a  solicitation  to
23    describe  the  supplies,  services,  professional or artistic
24    services,  construction,  or   real   property   or   capital
25    improvements   to   be   procured   or  leased  and  includes
26    specifications  attached  to  or   made   a   part   of   the
27    solicitation.
28        Section  1-15.67.  Purchase  of care.  "Purchase of care"
29    means a contract with a person for the furnishing of medical,
30    educational, psychiatric, vocational, rehabilitative,  social
HB1481 Engrossed            -6-                LRB9002279DNsb
 1    or  human  services  directly  to  a recipient of a State aid
 2    program.
 3        Section 1-15.70.  Purchasing agency.  "Purchasing agency"
 4    means a State agency that is authorized by this Code, by  its
 5    implementing  rules,  or  by authorized delegation of a State
 6    purchasing officer to enter into contracts.
 7        Section 1-15.75.  Request for  proposals.   "Request  for
 8    proposals"  means  the  process  by which a purchasing agency
 9    requests information from offerors, including all  documents,
10    whether  attached  or  incorporated  by  reference,  used for
11    soliciting proposals.
12        Section  1-15.80.    Responsible   bidder   or   offeror.
13    "Responsible  bidder  or  offeror" means a person who has the
14    capability in all respects  to  perform  fully  the  contract
15    requirements  and  the  integrity  and  reliability that will
16    assure good faith performance.
17        Section 1-15.85.  Responsive bidder.  "Responsive bidder"
18    means a person who has submitted a bid that conforms  in  all
19    material respects to the invitation for bids.
20        Section   1-15.90.    Services.    "Services"  means  the
21    furnishing of labor, time, or effort  by  a  contractor,  not
22    involving  the  delivery of a specific end product other than
23    reports or supplies  that  are  incidental  to  the  required
24    performance.
25        Section  1-15.93.  Solicitation.  "Solicitation" means an
26    invitation for  bids,  request  for  proposals,  request  for
27    information,  or  other  means  of  requesting contractors to
28    respond with offers or qualifications.
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 1        Section 1-15.95.  Specifications.  "Specifications" means
 2    any description, provision, or requirement pertaining to  the
 3    physical  or functional characteristics or of the nature of a
 4    supply, service,  or  other  item  to  be  procured  under  a
 5    contract.    Specifications  may include a description of any
 6    requirement for inspecting, testing, or preparing  a  supply,
 7    service,  professional  or artistic service, construction, or
 8    other item for delivery.
 9        Section 1-15.100.  State agency.   "State  agency"  means
10    all  officers,  boards,  commissions, and agencies created by
11    the Constitution, whether in the executive,  legislative,  or
12    judicial  branch,  but  other  than  the  circuit  court; all
13    officers,   departments,   boards,   commissions,   agencies,
14    institutions, authorities, universities, bodies  politic  and
15    corporate of the State; and administrative units or corporate
16    outgrowths  of the State government that are created by or in
17    accordance with statute, other than units of local government
18    and their officers, school districts, and boards of  election
19    commissioners;  and  all  administrative  units and corporate
20    outgrowths of  State  agencies  and  as  may  be  created  by
21    executive  order  of  the  Governor.  "State agency" does not
22    include the Illinois Comprehensive Health Insurance Board.
23        Section  1-15.105.   State  purchasing  officer.   "State
24    purchasing officer" means a person appointed as  provided  in
25    Article  10  to exercise the procurement authority created by
26    this Code.
27        Section  1-15.110.   Supplies.   "Supplies"   means   all
28    personal  property,  including  but not limited to equipment,
29    materials, printing, and  insurance,  and  the  financing  of
30    those supplies.
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 1        Section    1-15.112.  Supported   employee.    "Supported
 2    employee" means an individual who has a  severe  physical  or
 3    mental disability that seriously limits functional capacities
 4    including,  but  not  limited  to,  mobility, communications,
 5    self-care, self-direction, work tolerance, or work skills and
 6    for  whom  competitive  employment  has   not   traditionally
 7    occurred   or   for  whom  competitive  employment  has  been
 8    interrupted  or  intermittent  as  a  result  of   a   severe
 9    disability and who, because of the nature and the severity of
10    that   person's   disability,   needs   intensive   supported
11    employment  services or extended services in order to perform
12    work.
13        Section 1-15.115.  Using agency.  "Using agency" means  a
14    State agency that uses items procured under this Code.
15                              ARTICLE 5
16                         POLICY ORGANIZATION
17        Section 5-5.  Procurement Policy Board.
18        (a)  Creation.   There  is  created  a Procurement Policy
19    Board.
20        (b)  Authority and duties.   The  Board  shall  have  the
21    authority  and responsibility to promulgate rules, consistent
22    with  this  Code,  governing  the  procurement,   management,
23    control,  and disposal of supplies, services, professional or
24    artistic  services,  construction,  and  real  property   and
25    capital  improvement leases procured by the State.  All rules
26    shall be promulgated and published  in  accordance  with  the
27    Illinois  Administrative  Procedure  Act.   The  Board  shall
28    consider  and  decide matters of policy within the provisions
29    of this Code.  The Board shall have the power  to  audit  and
30    monitor  the implementation of its rules and the requirements
31    of this Code but shall not exercise authority over the  award
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 1    or  administration  of  any  particular  contract or over any
 2    dispute, claim, or  litigation  pertaining  to  a  particular
 3    contract.
 4        (c)  Members.   The  Board  shall  consist  of  5 members
 5    appointed by the Governor and confirmed by  the  Senate.   No
 6    more than 3 members may be of the same political party.  Each
 7    member   shall   have  demonstrated  sufficient  business  or
 8    professional experience in the area of procurement to perform
 9    the functions of the Board.
10        (d)  Terms.  Of  the  initial  appointees,  the  Governor
11    shall  designate  one  member  to  serve  a  one-year term, 2
12    members to serve 2-year terms, and 2 members to serve  3-year
13    terms.  Subsequent  terms  shall  be 4 years.  Members may be
14    reappointed for succeeding terms.
15        (e)  Reimbursement.     Members    shall    receive    no
16    compensation  but  shall  be  reimbursed  for  any   expenses
17    reasonably incurred in the performance of their duties.
18        Section 5-10.  Chief Procurement Officer.
19        (a)  Creation.   There is created the Office of the Chief
20    Procurement Officer.
21        (b)  Authority and duties.  The Chief Procurement Officer
22    shall be responsible for  overseeing  implementation  of  the
23    Board's  rules  and  policies  and  shall  be  appointed by a
24    majority vote of the Board.  The  Chief  Procurement  Officer
25    may be removed at the discretion of the Board.
26        (c)  Compensation.   The  Chief Procurement Officer shall
27    be a full-time position compensated in an  amount  determined
28    by  the  Board.  A member of the Board may not serve as Chief
29    Procurement Officer.
30        (d)  Staff support.  Subject to appropriation, the  Chief
31    Procurement Officer may have up to 3 staff persons.
32        Section 5-15.  Procurement Advisory Council.
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 1        (a)  Creation.  There is created the Procurement Advisory
 2    Council.   The Council shall consist of the Chief Procurement
 3    Officer and the 16 State  purchasing  officers  appointed  as
 4    provided  in Article 10.  The Chief Procurement Officer shall
 5    act as chair of the Council.
 6        (b)  Purposes.  The Council shall:
 7             (1)  advise the Board on procurement policies;
 8             (2)  coordinate purchases of the same item  by  more
 9        than one purchasing agency to obtain volume discounts;
10             (3)  recommend specific State purchasing officers or
11        State  agencies  as responsible for certain categories of
12        purchases; and
13             (4)  assist  State  purchasing  officers  and  State
14        agencies in planning, purchasing, installing,  and  using
15        certain technology, including telecommunications systems.
16        Section 5-20.  Joint Purchasing Program Advisory Council.
17    There is created a Joint Purchasing Program Advisory Council.
18    Members  of  the  Joint  Purchasing  Program Advisory Council
19    shall  be  appointed  by  the  Board  and  shall  consist  of
20    representatives   of    local    governmental    units    and
21    representatives  of  the  Procurement  Advisory Council.  The
22    Joint Purchasing Program Advisory Council  shall  advise  and
23    consult  with  the  Board  on  the  scope and nature of joint
24    governmental purchasing.
25        Section 5-25.   Rulemaking  authority.   A  State  agency
26    authorized  to  make  procurements under this Code shall have
27    the  authority  to  promulgate  rules  to  carry   out   that
28    authority.  All rules shall be promulgated in accordance with
29    the  Illinois  Administrative  Procedure  Act  and  shall  be
30    subject to the approval of the Board.
31                             ARTICLE 10
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 1                      PROCUREMENT ORGANIZATION
 2        Section 10-5.  Exercise of procurement authority.
 3        (a)  The  State  purchasing  officers  appointed by their
 4    respective State officers or State  agencies  shall  exercise
 5    the  procurement  authority  created  by  this Code except as
 6    otherwise provided in this Code.
 7        (b) (1)  Procurements for all construction,  construction
 8    related   services,   operation  of  any  facility,  and  the
 9    provision of any service or activity committed by law to  the
10    jurisdiction  or responsibility of the Illinois Department of
11    Transportation,  including   the   direct   or   reimbursable
12    expenditure  of all federal funds for which the Department of
13    Transportation is responsible  or  accountable  for  the  use
14    thereof   in  accordance  with  federal  law,  regulation  or
15    procedure,  shall  be   delegated   to   the   Secretary   of
16    Transportation if required to comply with federal law.
17        (2)  Procurements   for  all  construction,  construction
18    related  services,  operation  of  any  facility,   and   the
19    provision  of any service or activity committed by law to the
20    jurisdiction or responsibility of the Illinois  Toll  Highway
21    Authority,  including  the direct or reimbursable expenditure
22    of all federal funds for which the Authority  is  responsible
23    or accountable for the use thereof in accordance with federal
24    law,  regulation  or  procedure,  shall  be  delegated to the
25    Authority if required to comply with federal law.
26        Section 10-10.  Appointment of State purchasing officers.
27        (a)  General appointments.  The following State  officers
28    shall  each  appoint  a  State purchasing officer to exercise
29    within his or  her  jurisdiciton  the  procurement  authority
30    created by this Code:
31             (1)  Director of Central Management Services.
32             (2)  Attorney General.
HB1481 Engrossed            -12-               LRB9002279DNsb
 1             (3)  Comptroller.
 2             (4)  Secretary of State.
 3             (5)  Treasurer.
 4             (6)  Auditor General.
 5             (7)  Supreme Court.
 6             (8)  Speaker of the House of Representatives.
 7             (9)  President of the Senate.
 8             (10)  Minority    leader    of    the    House    of
 9        Representatives.
10             (11)  Minority leader of the Senate.
11             (12)  Chair  of  the  Joint Committee on Legislative
12        Support Services.
13             (13)  Board  of  Trustees  of  the   University   of
14        Illinois.
15             (14)  Board   of   Trustees   of  Southern  Illinois
16        University.
17             (15)  Board of Trustees of Chicago State University.
18             (16)  Board  of   Trustees   of   Eastern   Illinois
19        University.
20             (17)  Board   of   Trustees   of   Governors   State
21        University.
22             (18)  Board    of   Trustees   of   Illinois   State
23        University.
24             (19)  Board of  Trustees  of  Northeastern  Illinois
25        University.
26             (20)  Board   of   Trustees   of  Northern  Illinois
27        University.
28             (21)  Board  of   Trustees   of   Western   Illinois
29        University.
30        No  new  personnel  position  may  be created to fill the
31    position of State purchasing officer.
32        (b)  Legislative support services  agencies.   The  State
33    purchasing  officer  appointed  under  subsection  (a) by the
34    chair of the  Joint Committee on Legislative Support Services
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 1    shall  serve  as  the  State  purchasing  officer   for   the
 2    legislative  support services agencies during the term of the
 3    chair.
 4        (c)  Central Management Services.  The  State  purchasing
 5    officer  appointed  under  subsection  (a) by the Director of
 6    Central  Management  Services  shall  serve  as   the   State
 7    purchasing   officer   for   all  State  agencies  under  the
 8    jurisdiction of the Governor or Lieutenant Governor  and  all
 9    State  agencies  outside  the jurisdiction of any other State
10    purchasing officer.
11        Section  10-15.   Delegation  of  authority.    A   State
12    purchasing officer may delegate procurement powers and duties
13    to  any  State  agency  under  that officer's jurisdiction as
14    authorized by the Board.
15                             ARTICLE 15
16                        PROCUREMENT BULLETIN
17        Section 15-5.  Publisher.  The Board  shall  designate  a
18    State   agency   responsible   for  publishing  the  Illinois
19    Procurement Bulletin.
20        Section  15-10.   Contents.   The  Illinois   Procurement
21    Bulletin shall contain notices and other information required
22    by  this  Code  or by rules promulgated under this Code to be
23    published in the Illinois Procurement Bulletin. The rules  of
24    the  Board  promulgated  under  this  Section  shall  require
25    inclusion   in   the   Bulletin   sufficient  information  to
26    adequately inform the public of the nature of each  contract.
27    Each  issue  shall  include  a  comprehensive  index  of  its
28    contents.  A purchasing agency may also choose, as applicable
29    and  in  accordance with rules of the Board, to place notices
30    in the official State newspaper or a newspaper circulating in
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 1    a locality relevant to the specified procurement.
 2        Section 15-15.  Publication.   The  Illinois  Procurement
 3    Bulletin shall be published at least twice monthly.  It shall
 4    be  available  through  subscription  for  a  minimal fee not
 5    exceeding publication and distribution costs.   The  Illinois
 6    Procurement  Bulletin  shall  be  distributed  free to public
 7    libraries within Illinois.  A purchasing officer may  on  his
 8    or her own authority authorize publication in electronic form
 9    or  in  the  official newspaper in addition to publication in
10    the Illinois Procurement Bulletin.
11        Section 15-20.  Qualified bidders.  Subscription  to  the
12    Illinois  Procurement  Bulletin  shall  not  be  required  to
13    qualify as a bidder or offeror under this Code.
14                             ARTICLE 20
15               SOURCE SELECTION AND CONTRACT FORMATION
16        Section   20-5.   Method  of  source  selection.   Unless
17    otherwise authorized by law, all  State  contracts  shall  be
18    awarded  by  competitive  sealed  bidding, in accordance with
19    Section 20-10, except as provided in Sections  20-15,  20-20,
20    20-25, 20-30, 20-35, 30-15, and 40-20.
21        Section 20-10.  Competitive sealed bidding.
22        (a)  Conditions  for use.  All contracts shall be awarded
23    by competitive sealed bidding except as otherwise provided in
24    Section 20-5.
25        (b)  Invitation for bids.  An invitation for  bids  shall
26    be  issued  and  shall include a purchase description and the
27    material contractual terms and conditions applicable  to  the
28    procurement.
29        (c)  Public  notice.  Public notice of the invitation for
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 1    bids shall be published in the Illinois Procurement  Bulletin
 2    at  least  28  days before the date set in the invitation for
 3    the opening of bids.
 4        (d)  Bid submission and opening.  Bids shall be submitted
 5    in a sealed form and shall be opened publicly in the presence
 6    of one or more witnesses at the time and place designated  in
 7    the  invitation  for  bids.   The  rules  may provide for the
 8    acceptance of bids submitted by fax, electronic data exchange
 9    or by other methods.  The name of each bidder, the amount  of
10    each  bid, and other relevant information as may be specified
11    by rule shall be recorded.  After the award of the  contract,
12    the winning bid and the record of each unsuccessful bid shall
13    be open to public inspection.
14        (e)  Bid  acceptance  and  bid evaluation.  Bids shall be
15    unconditionally accepted without  alteration  or  correction,
16    except  as  authorized in this Code.  Bids shall be evaluated
17    based on the requirements set forth  in  the  invitation  for
18    bids,  which  may include criteria to determine acceptability
19    such as inspection, testing, quality, workmanship,  delivery,
20    and  suitability  for  a  particular purpose.  Those criteria
21    that  will  affect  the  bid  price  and  be  considered   in
22    evaluation  for  award,  such  as  discounts,  transportation
23    costs,  and  total  or life cycle costs, shall be objectively
24    measurable. The invitation  for  bids  shall  set  forth  the
25    evaluation  criteria  to  be used. Only criteria set forth in
26    the invitation for bids may be used in the bid evaluation.
27        (f)  Correction or  withdrawal  of  bids.  Correction  or
28    withdrawal  of  inadvertently  erroneous bids before or after
29    award, or cancellation of awards of contracts  based  on  bid
30    mistakes,  shall be permitted in accordance with rules of the
31    Board.  After bid opening, no changes in bid prices or  other
32    provisions  of  bids prejudicial to the interest of the State
33    or fair competition shall be  permitted.   All  decisions  to
34    permit  the  correction  or  withdrawal  of bids based on bid
HB1481 Engrossed            -16-               LRB9002279DNsb
 1    mistakes shall be supported by written determination made  by
 2    a purchasing agency.
 3        (g)  Award.    The   contract   shall   be  awarded  with
 4    reasonable  promptness  by  written  notice  to  the   lowest
 5    responsible   and  responsive  bidder  whose  bid  meets  the
 6    requirements and criteria set forth  in  the  invitation  for
 7    bids.
 8        (h)  Multi-step  sealed  bidding.   When it is considered
 9    impracticable to initially prepare a purchase description  to
10    support  an  award based on price, an invitation for bids may
11    be issued requesting the submission of unpriced offers to  be
12    followed  by  an invitation for bids limited to those bidders
13    whose offers have been qualified under the criteria set forth
14    in the first solicitation.
15        Section 20-15.  Competitive sealed proposals.
16        (a)  Conditions for use.
17             (1)  Competitive sealed proposals may be  used  when
18        the   purchasing   officer  determines  in  writing  that
19        competitive sealed bidding is either not practical or not
20        advantageous to the State.
21             (2)  The Board  may  establish  by  rule  additional
22        categories that may be procured by this method.
23             (3)  When  under  rules  it is determined in writing
24        that competitive sealed bidding is either  not  practical
25        or  advantageous,  a  contract  may  be  entered  into by
26        competitive sealed proposals.
27        (b)  Request for proposals.  Proposals shall be solicited
28    through a request for proposals.
29        (c)  Public notice.  Public notice  of  the  request  for
30    proposals  shall  be  published  in  the Illinois Procurement
31    Bulletin at  least  28  days  before  the  date  set  in  the
32    invitation for the opening of proposals.
33        (d)  Receipt  of  proposals.   Proposals  shall be opened
HB1481 Engrossed            -17-               LRB9002279DNsb
 1    publicly in the presence of one or more witnesses at the time
 2    and place  designated  in  the  request  for  proposals,  but
 3    proposals  shall be opened in a manner to avoid disclosure of
 4    contents  to  competing  offerors  during  the   process   of
 5    negotiation.   A  register of proposals shall be prepared and
 6    shall be open for public inspection after contract award. The
 7    rules may provide for the acceptance of  proposals  submitted
 8    by fax, electronic data exchange, or by other methods.
 9        (e)  Evaluation  factors.   The  requests  for  proposals
10    shall  state  the  relative  importance  of  price  and other
11    evaluation factors.  Proposals shall be submitted in 2 parts:
12    the first, covering  items  except  price;  and  the  second,
13    covering  price.   The  first  part of all proposals shall be
14    evaluated and ranked prior to the opening of the second  part
15    of all proposals.
16        (f)  Discussion  with  responsible offerors and revisions
17    of proposals.  As provided in the request for  proposals  and
18    under  rules  of the Board, discussions may be conducted with
19    responsible offerors who submit proposals  determined  to  be
20    reasonably  susceptible  of  being selected for award for the
21    purpose of clarifying and assuring full understanding of  and
22    responsiveness   to  the  solicitation  requirements.   Those
23    offerors shall be accorded  fair  and  equal  treatment  with
24    respect  to  any  opportunity  for discussion and revision of
25    proposals.  Revisions may be permitted after  submission  and
26    before  award  for  the  purpose  of obtaining best and final
27    offers.   In  conducting  discussions  there  shall   be   no
28    disclosure   of   any   information  derived  from  proposals
29    submitted by competing offerors.
30        (g)  Award.  Awards shall  be  made  to  the  responsible
31    offeror  whose  proposal  is  determined in writing to be the
32    most advantageous to the  State,  taking  into  consideration
33    price and the evaluation factors set forth in the request for
34    proposals.  No other factors or criteria shall be used in the
HB1481 Engrossed            -18-               LRB9002279DNsb
 1    evaluation.   The  contract  file  shall contain the basis on
 2    which the award is made.
 3        Section 20-20.  Small purchases.
 4        (a)  Amount.  Any individual procurement of  supplies  or
 5    services   not   exceeding   $25,000   may  be  made  without
 6    competitive  sealed  bidding.    Procurements  shall  not  be
 7    artificially divided so as to  constitute  a  small  purchase
 8    under this Section.
 9        (b)  Adjustment.  Each July 1, the small purchase maximum
10    established in subsection (a) shall be adjusted for inflation
11    as  determined  by  the  Consumer  Price  Index for All Urban
12    Consumers as determined by the United  States  Department  of
13    Labor and rounded to the nearest $100.
14        Section  20-25.  Sole source procurements.  Contracts may
15    be awarded without notice or competition when there  is  only
16    one  economically feasible source for the item, including but
17    not limited to, contracts for specific works of art  and  for
18    the  services  of  a particular artist.  The procuring agency
19    shall maintain a list of contracts awarded on a  sole  source
20    basis  including  the  reasons for determining the contractor
21    was the sole economically feasible source.  The list and  the
22    reasons  shall  be open to inspection, and shall be published
23    in the Illinois Procurement Bulletin in the  issue  published
24    after the contract is awarded.
25        Section 20-30.  Emergency purchases.
26        (a)  Conditions  for  use.   In accordance with standards
27    set by the Board, a  purchasing  agency  may  make  emergency
28    procurements  without  competitive  sealed  bidding  or prior
29    notice when there exists a threat to public health or  public
30    safety,  or  when  immediate  expenditure  is  necessary  for
31    repairs to State property in order to protect against further
HB1481 Engrossed            -19-               LRB9002279DNsb
 1    loss  of  or damage to State property, to prevent or minimize
 2    serious disruption  in  State  services,  or  to  ensure  the
 3    integrity  of State records.  Emergency procurements shall be
 4    made with as much competition as  is  practicable  under  the
 5    circumstances  and  as  required by the rule of the Board.  A
 6    written description  of  the  basis  for  the  emergency  and
 7    reasons  for the selection of the particular contractor shall
 8    be included in the contract file.
 9        (b)  Notice.   Before  the  10th  of  each   month,   the
10    purchasing  agency  shall publish in the Illinois Procurement
11    Bulletin a copy of each written description and  reasons  and
12    the  total cost of each emergency procurement made during the
13    previous month.  When only an estimate of the total  cost  is
14    known  at  the  time  of  publication,  the estimate shall be
15    identified as an estimate and  published.   When  the  actual
16    total  cost is determined, it shall also be published in like
17    manner before the 10th day of the next succeeding month.
18        (c)  Affidavits.    A   purchasing   agency   making    a
19    procurement    under  this Section shall file affidavits with
20    the Board and the Auditor  General within 10 days  after  the
21    procurement  setting  forth the  amount expended, the name of
22    the contractor involved, and the conditions and circumstances
23    requiring the emergency procurement.  When only  an  estimate
24    of   the   cost   is  available  within  10  days  after  the
25    procurement,  the actual cost shall be  reported  immediately
26    after  it  is determined.  At the end of each fiscal quarter,
27    the Auditor General shall file  with  the  Legislative  Audit
28    Commission  and  the  Governor  a  complete  listing  of  all
29    emergency  procurements  reported during that fiscal quarter.
30    The Legislative Audit Commission shall review  the  emergency
31    procurements  so  reported and, in its annual reports, advise
32    the  General  Assembly  of  procurements   that   appear   to
33    constitute an abuse of this Section.
34        (d)  Quick  purchases.  The Board may promulgate policies
HB1481 Engrossed            -20-               LRB9002279DNsb
 1    extending the circumstances by which a purchasing agency  may
 2    make  purchases under this Section, including but not limited
 3    to the procurement of items available at  a  discount  for  a
 4    limited period of time.
 5        Section 20-35.  Competitive selection procedures.
 6        (a)  Conditions  for  use.   The  services  specified  in
 7    Article 35 shall be procured in accordance with this Section,
 8    except  as  authorized under Sections 20-25 and 20-30 of this
 9    Article or as authorized by the Board in accordance with  the
10    provisions of this Code.
11        (b)  Statement  of qualifications.  Potential contractors
12    may submit statements of qualifications  and  expressions  of
13    interest.   The  Board  may  specify  a  uniform  format  for
14    statements   of   qualifications.  Persons  may  amend  these
15    statements at any time by filing a new statement.
16        (c)  Public  announcement  and  form   of   request   for
17    proposals.    Public  notice  of the need for the procurement
18    shall be given in the form of a  request  for  proposals  and
19    published  in  the  Illinois Procurement Bulletin at least 14
20    days before the date set in the request for proposals for the
21    opening  of  proposals.  The  request  for  proposals   shall
22    describe  the services required, list the type of information
23    and data required  of  each  offeror,  and  shall  state  the
24    relative importance of particular qualifications.
25        (d)  Discussions.   The  purchasing  agency  may  conduct
26    discussions  with any offeror who has submitted a proposal to
27    determine   the   offeror's   qualifications   for    further
28    consideration.      Discussions   shall   not   disclose  any
29    information  derived  from  proposals  submitted   by   other
30    offerors.
31        (e)  Award.    Award   shall   be  made  to  the  offeror
32    determined in writing by the purchasing  agency  to  be  best
33    qualified  based  on  the evaluation factors set forth in the
HB1481 Engrossed            -21-               LRB9002279DNsb
 1    request  for  proposals  and  negotiation   of   compensation
 2    determined to be fair and reasonable.  If compensation cannot
 3    be   agreed  upon  with  the  best  qualified  offeror,  then
 4    negotiations shall be formally terminated with  the  selected
 5    offeror.   If  proposals  were submitted by one or more other
 6    offerors determined to  be  qualified,  negotiations  may  be
 7    conducted with the other offeror or offerors, in the order of
 8    their  respective  qualification ranking. The contract may be
 9    awarded to the offeror then ranked as best qualified  if  the
10    amount   of   compensation  is  determined  to  be  fair  and
11    reasonable.
12        Section 20-37.  Legal, medical, and related services.  If
13    premature  disclosure  of  the  need  for  legal  and related
14    services, or of the name of the law firm, attorney or related
15    service provider might  jeopardize  the  State's  ability  to
16    formulate  policy,  its position in litigation, and for other
17    such reasons, legal and  related  services  may  be  procured
18    without  notice  of  competition.  If a person's health is in
19    jeopardy, medical services may be procured without notice  of
20    competition.   The  procuring agency shall maintain a list of
21    contracts awarded under these provisions including the reason
22    why a competitive method of source selection  was  not  used.
23    The  list  and  the reasons shall be open to inspection after
24    the purchasing officer determines that release  of  the  list
25    would  no  longer jeopardize the State's ability to formulate
26    policy, its position in litigation,  or  similar  reasons  no
27    longer exist.
28        Section  20-38.   Other government contracts.  Notice and
29    competition  is  not  required  by   the   General   Services
30    Administration,  or  when  it  is  determined  that  use of a
31    contract established by another governmental entity is in the
32    State's best interest.
HB1481 Engrossed            -22-               LRB9002279DNsb
 1        Section  20-39.   Sheltered   workshops   and   supported
 2    employees.  Goods and services may be procured without notice
 3    and  competition  from businesses which meet the requirements
 4    set forth in Sections 45-35 and 45-37.
 5        Section 20-40.  Cancellation of invitations for  bids  or
 6    requests  for  proposals.   An invitation for bids, a request
 7    for proposals, or any other solicitation may be cancelled, or
 8    any and all bids or proposals may be rejected in whole or  in
 9    part  as  may be specified in the solicitation, when it is in
10    the best interests of the  State  in  accordance  with  rules
11    promulgated  by  the  Board.  The reasons for cancellation or
12    rejection shall be made part of the contract file.
13        Section 20-45.  Prequalification of suppliers.  The Board
14    shall promulgate rules for the  development  of  prequalified
15    supplier  lists  for  appropriate categories of purchases and
16    the periodic updating of those lists.
17        Section 20-50.  Specifications.  Specifications shall  be
18    prepared  in  accordance  with  standards  promulgated by the
19    Board.  Those standards shall include a  prohibition  against
20    the   use  of  brand-name  products  except  under  specified
21    circumstances and a restriction on the use of  specifications
22    drafted by a potential bidder.  All specifications shall seek
23    to  promote  overall  economy  for  the purposes intended and
24    encourage competition in satisfying  the  State's  needs  and
25    shall not be unduly restrictive.
26        Section  20-55.   Types  of  contracts.   Subject  to the
27    limitations of this Section and unless  otherwise  authorized
28    by  law,  any  type  of  contract  that will promote the best
29    interests  of  the   State   may   be   used,   except   that
30    cost-plus-a-percentage-of-cost  contracts  are  prohibited. A
HB1481 Engrossed            -23-               LRB9002279DNsb
 1    cost-reimbursement  contract  may  be  used   only   when   a
 2    determination  is  made  in writing that a cost-reimbursement
 3    contract is likely to be less costly to the  State  than  any
 4    other  type  or  that  it is impracticable to obtain the item
 5    required except under that type  of  contract.   The  general
 6    form of contracts shall be specified by the Comptroller.
 7        Section 20-60.  Duration of contracts.
 8        (a)  Maximum  duration.   A  contract may be entered into
 9    for any period of time deemed by the Board to be in the  best
10    interests  of  the  State  but  not  exceeding 10 years.  The
11    length of a lease for real property or  capital  improvements
12    may be in accordance with the provisions of Section 40-25.
13        (b)  Subject  to  appropriation.   All  contracts made or
14    entered  into  shall  recite  that  they   are   subject   to
15    termination  and  cancellation  in  any  year  for  which the
16    General Assembly fails  to  make  an  appropriation  to  make
17    payments under the terms of the contract.
18        Section 20-65.  Right to audit records.
19        (a)  Maintenance  of  books  and records.  Every contract
20    and   subcontract   shall   require   the    contractor    or
21    subcontractor,  as  applicable, to maintain books and records
22    relating to the performance of the  contract  or  subcontract
23    and  necessary  to support amounts charged to the State under
24    the contract or subcontract.  The books and records shall  be
25    maintained by the contractor for a period of 3 years from the
26    later  of  the  date  of  final payment under the contract or
27    completion of the contract and by  the  subcontractor  for  a
28    period of 3 years from the later of the date of final payment
29    under  the  subcontract  or  completion  of  the subcontract.
30    However, the 3-year period shall be extended for the duration
31    of any audit  in  progress  at  the  time  of  that  period's
32    expiration.
HB1481 Engrossed            -24-               LRB9002279DNsb
 1        (b)  Audit.  Every contract and subcontract shall provide
 2    that  all  books  and records required to be maintained under
 3    subsection (a) shall be available for review and audit by the
 4    Auditor General and the purchasing  agency.   Every  contract
 5    and    subcontract   shall   require   the   contractor   and
 6    subcontractor, as applicable, to  cooperate  fully  with  any
 7    audit.
 8        (c)  Failure  to  maintain books and records.  Failure to
 9    maintain the books and records required by this Section shall
10    establish a  presumption  in  favor  of  the  State  for  the
11    recovery  of  any  funds paid by the State for which required
12    books and records are not available.
13        Section    20-70.     Finality     of     determinations.
14    Determinations  made  by  a purchasing agency under this Code
15    are final and conclusive unless they are  clearly  erroneous,
16    arbitrary, capricious, or contrary to law.
17        Section  20-75.   Disputes and protests.  The Board shall
18    by rule establish procedures to  be  followed  by  purchasing
19    agencies  in resolving protested solicitations and awards and
20    contract  controversies,  for  debarment  or  suspension   of
21    contractors,  and  for  resolving  other  procurement-related
22    disputes.
23        Section 20-80.  Contract files.
24        (a)  Written  determinations.  All written determinations
25    required under this Article shall be placed in  the  contract
26    file maintained by the purchasing agency.
27        (b)  Filing   with   Comptroller.   Whenever  a  contract
28    liability, except for:
29             (1)  contracts paid from personal services, or
30             (2)  contracts between the State and  its  employees
31        to  defer  compensation  in accordance with Article 24 of
HB1481 Engrossed            -25-               LRB9002279DNsb
 1        the Illinois Pension Code
 2    exceeding $5,000 is incurred by any State agency, a  copy  of
 3    the  contract,  purchase  order, or lease shall be filed with
 4    the Comptroller within 15 days thereafter.  Any  cancellation
 5    or modification to any such contract liability shall be filed
 6    with the Comptroller within 15 days of its execution.
 7        (c)  Late  filing  affidavit.   When a contract, purchase
 8    order, or lease required to be filed by this Section has  not
 9    been filed within 30 days of execution, the Comptroller shall
10    refuse  to  issue  a warrant for payment thereunder until the
11    agency files with  the  Comptroller  the  contract,  purchase
12    order,  or  lease  and  an  affidavit,  signed  by  the chief
13    executive officer of the  agency  or  his  or  her  designee,
14    setting  forth  an  explanation of why the contract liability
15    was not filed within 30 days of execution.  A  copy  of  this
16    affidavit shall be filed with the Auditor General.
17        (d)  Professional  and  artistic  services contracts.  No
18    voucher shall be submitted to the Comptroller for  a  warrant
19    to  be drawn for the payment of money from the State treasury
20    or from other funds held by the State Treasurer on account of
21    any contract for services involving professional or  artistic
22    skills  involving  an expenditure of more than $5,000 for the
23    same type of service at the same location during  any  fiscal
24    year  unless  the  contract  is reduced to writing before the
25    services are performed and filed with the Comptroller.   When
26    a  contract  for professional or artistic skills in excess of
27    $5,000 was not reduced to writing before  the  services  were
28    performed,  the  Comptroller  shall refuse to issue a warrant
29    for payment for the services until  the  State  agency  files
30    with the Comptroller:
31             (1)  a written contract covering the services, and
32             (2)  an  affidavit,  signed  by  the chief executive
33        officer of the State  agency  or  his  or  her  designee,
34        stating that the services for which payment is being made
HB1481 Engrossed            -26-               LRB9002279DNsb
 1        were  agreed  to  before commencement of the services and
 2        setting forth an explanation of why the contract was  not
 3        reduced to writing before the services commenced.
 4    A  copy  of  this  affidavit  shall be filed with the Auditor
 5    General.  The  Comptroller  shall  maintain  professional  or
 6    artistic   service   contracts   filed   under  this  Section
 7    separately from other filed contracts.
 8        (e)  Method of source  selection.   When  a  contract  is
 9    filed   with   the   Comptroller   under  this  Section,  the
10    Comptroller's  file  shall  identify  the  method  of  source
11    selection used in obtaining the contract.
12                             ARTICLE 25
13                  SUPPLIES AND SERVICES (EXCLUDING
14                      PROFESSIONAL OR ARTISTIC)
15        Section 25-5.  Applicability.  All contracts for supplies
16    and  services  shall  be  procured  in  accordance  with  the
17    provisions of this Article.
18        Section 25-10.   Authority.   State  purchasing  officers
19    shall  have  the  authority to procure supplies and services,
20    except as that authority may  be  limited  by  the  Board  or
21    delegated  by the State purchasing officer in accordance with
22    Section 10-15.
23        Section 25-15.  Method of source selection.
24        (a)  Competitive sealed bidding.  Except as  provided  in
25    subsection  (b)  and  Sections  20-20,  20-25, and 20-30, all
26    State contracts for supplies and services shall be awarded by
27    competitive sealed bidding in accordance with Section 20-10.
28        (b)  Other methods.  The Board shall  establish  by  rule
29    categories  of purchases that may be made without competitive
30    sealed bidding and the most competitive alternate  method  of
HB1481 Engrossed            -27-               LRB9002279DNsb
 1    source  selection  that  shall  be  used for each category of
 2    purchase.
 3        Section 25-20.  Prevailing wage requirements.
 4        (a)  Applicability.    All   services   furnished   under
 5    printing   contracts  exceeding  $25,000  and  under  service
 6    contracts  exceeding  $2,000  or  $200  per  month  shall  be
 7    performed by   employees  of  the  contractor  receiving  the
 8    prevailing  wage  rate and working under conditions prevalent
 9    in the locality in which the work is  produced.   A  contract
10    bidder  or  offeror,  in order to be considered a responsible
11    bidder or offeror  for  the  purposes  of  this  Code,  shall
12    certify  to  the  State purchasing officer that wages paid to
13    its employees are no less, and fringe  benefits  and  working
14    conditions  of  employees  are not less favorable, than those
15    prevailing in the  locality  where  the  contract  is  to  be
16    performed.  Prevailing  wages and working conditions shall be
17    determined by the Director of Labor.  Whenever  a  collective
18    bargaining  agreement is in effect between an employer, other
19    than a State agency, and service  or  printing  employees  as
20    defined  in this Section who are represented by a responsible
21    organization that is in no way influenced  or  controlled  by
22    the  management,  that  agreement and its provisions shall be
23    considered as conditions prevalent in that locality and shall
24    be the minimum requirements taken into consideration  by  the
25    Director  of Labor.  Collective bargaining agreements between
26    State employees and the State of Illinois shall not be  taken
27    into  account  by  the Department of Labor in determining the
28    prevailing wage rate.
29        (b)  Services and printing  defined.   As  used  in  this
30    Section,   "services"  means  janitorial  cleaning  services,
31    window  cleaning  services,  food  services,   and   security
32    services.   "Printing"  means  all  processes  and operations
33    involved  in  printing   and   any   type   of   photographic
HB1481 Engrossed            -28-               LRB9002279DNsb
 1    reproduction  or other duplicating process, including but not
 2    limited to letterpress, offset, and  gravure  processes,  the
 3    multilith   method,   any   type  of  photographic  or  other
 4    duplicating  process,  and  the  operations  of  composition,
 5    platemaking, presswork, and binding; and the end products  of
 6    those  processes,  methods,  and operations.  As used in this
 7    Section "printing" does not include photocopiers used in  the
 8    course  of normal business activities, photographic equipment
 9    used for geographic  mapping,  printed  matter  used  in  the
10    normal  day  to  day  operations of the General Assembly, the
11    printing of State Lottery tickets,  shares,  or  other  State
12    Lottery  game  related  materials,  or  preprinted or printed
13    matter that is commonly available to the general public  from
14    contractor inventory.
15        (c)  Inapplicability.   This  Section  does  not apply to
16    services  furnished  under  contracts  for  professional   or
17    artistic services.  This Section does not apply to vocational
18    programs  of  training  for  persons  with physical or mental
19    disabilities.
20        Section 25-25.  Printing cost  offsets.   The  Board  may
21    promulgate  rules  permitting  the  exchange  of  advertising
22    rights  in  or  receipt  of  free  copies of printed products
23    procured under this Article as a means of  reducing  printing
24    costs.   The  Board's  rules  shall  specify  the appropriate
25    method of  source  selection  to  be  used  to  competitively
26    acquire printing cost offsets.
27        Section  25-30.   More  favorable  terms.   A  supply  or
28    service  contract  may  include,  if  determined  by  a State
29    purchasing officer to be in the best interests of the  State,
30    a  clause  requiring that if more favorable terms are granted
31    by the contractor to any similar state or local  governmental
32    agency  in any state in a contemporaneous agreement let under
HB1481 Engrossed            -29-               LRB9002279DNsb
 1    the same or similar financial  terms  and  circumstances  for
 2    comparable  supplies  or  services,  the more favorable terms
 3    shall be applicable under the contract.
 4        Section 25-35.  Purchase of coal and postage stamps.
 5        (a)  Delivery   of   necessary   supplies.    To    avoid
 6    interruption or impediment of delivery of necessary supplies,
 7    commodities,  and  coal,  State  purchasing officers may make
 8    purchases of or contracts for supplies and commodities  after
 9    April  30  of a fiscal year when delivery of the supplies and
10    commodities is to be made after June 30 of that  fiscal  year
11    and  payment  for which is to be made from appropriations for
12    the next fiscal year.
13        (b)  Postage.  All postage stamps  purchased  from  State
14    funds  must  be  perforated  for  identification purposes.  A
15    General Assembly member may furnish the U.S. Post Office with
16    a warrant so as to allow for the creation or continuation  of
17    a  bulk rate mailing fund in the name of the General Assembly
18    member or may furnish a postage meter company or post  office
19    with  a warrant so as to facilitate the purchase of a postage
20    meter and its stamps.  Any postage meter  so  purchased  must
21    also contain a stamp that shall state "Official State Mail".
22        Section  25-40.   Freight  increases.   If  the  Illinois
23    Department   of   Transportation   provides  by  contract  or
24    regulation that general increases in freight  rates  incurred
25    by a contractor after entering into the contract may be added
26    to  the  contract  price or passed through to the Department,
27    then this remedy shall be available to the contractor whether
28    the increased general freight rates are for railroads,  barge
29    lines, or motor carriers of property.
30        Section   25-45.   Energy  conservation  program.   State
31    purchasing  officers  may  enter  into  energy   conservation
HB1481 Engrossed            -30-               LRB9002279DNsb
 1    program contracts that provide for utility cost savings.  The
 2    Board shall promulgate and adopt rules for the implementation
 3    of this Section.
 4        Section  25-50.  Human services.  Every purchasing agency
 5    that contracts or provides grants  for  human  services  may,
 6    upon  request of the service provider, review the contract or
 7    grant, upon notification by the provider that the cost of the
 8    provider's property and casualty insurance has  increased  by
 9    25%  or  more.  The purchasing agency may adjust the existing
10    contract or grant with the  service  provider  in  accordance
11    with  any agreement reached and subject to the limitations of
12    that agency's  appropriated  funds.   For  purposes  of  this
13    Section  the  revised  contract  amount  shall not exceed the
14    percentage calculated by dividing the total contract or grant
15    amount by the provider's total budget as  agreed  to  by  the
16    purchasing agency.
17        Section  25-55.   Annual  reports.   Every printed annual
18    report produced by a State  agency  shall  bear  a  statement
19    indicating whether it was printed by the State of Illinois or
20    by contract and indicating the printing cost per copy and the
21    number   of  copies  printed.    The  Department  of  Central
22    Management Services shall prepare and submit to  the  General
23    Assembly  on  the  fourth Wednesday of January in each year a
24    report setting forth with respect to each  State  agency  for
25    the  calendar year immediately preceding the calendar year in
26    which the report  is  filed  the  total  quantity  of  annual
27    reports  printed,  the  total cost, and the cost per copy and
28    the cost per page of the annual report of  the  State  agency
29    printed during the calendar year covered by the report.
30        Section 25-60.  General Assembly printing; session laws.
31        (a)  Authority.   Public  printing  for the use of either
HB1481 Engrossed            -31-               LRB9002279DNsb
 1    House of  the  General  Assembly  shall  be  subject  to  its
 2    control.   Any  printing  or  operation  of printing that the
 3    Legislative  Printing  Unit  is  unable  to  perform  may  be
 4    purchased in accordance with this Article.
 5        (b)  Time of delivery.  Daily  calendars,  journals,  and
 6    other  similar  printing  for  which  manuscript  or  copy is
 7    delivered to the Legislative Printing Unit  by  the  clerical
 8    officer  of  either  House  shall  be printed so as to permit
 9    delivery at any reasonable  time  required  by  the  clerical
10    officer.   Any  petition, bill, resolution, joint resolution,
11    memorial, and similar manuscript or  copy  delivered  to  the
12    Legislative  Printing  Unit by the clerical officer of either
13    House shall be printed at any  reasonable  time  required  by
14    that officer.
15        (c)  Style.    The   manner,   form,   style,  size,  and
16    arrangement of type used in printing the bills,  resolutions,
17    amendments, conference reports, and journals, including daily
18    journals, of the General Assembly shall be as provided in the
19    Rules of the General Assembly.
20        (d)  Daily   journal.    The   Clerk   of  the  House  of
21    Representatives and the Secretary of the  Senate  shall  each
22    prepare   and  deliver  to  the  Legislative  Printing  Unit,
23    immediately  after  the  close  of  each  daily  session,   a
24    printer's  copy  of  the  daily  journal for their respective
25    House.
26        (e)  Daily and bound journals.
27             (1)  Subscriptions.  The Legislative  Printing  Unit
28        shall  have  printed  the  number  of copies of the daily
29        journal as may be requested by the  clerical  officer  of
30        each House.  The Secretary of the Senate and the Clerk of
31        the House of Representatives shall furnish a copy of each
32        daily  journal of their respective House to those persons
33        who  apply  therefor  upon  payment   of   a   reasonable
34        subscription  fee established separately by the Secretary
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 1        of the Senate and  the  Clerk  of  the  House  for  their
 2        respective  House.   Each subscriber shall specify at the
 3        time he or she subscribes the address  where  he  or  she
 4        wishes  the journals mailed.  The daily journals shall be
 5        furnished free of charge  on  a  pickup  basis  to  State
 6        offices  and  to  the public as long as the supply lasts.
 7        The Secretary of the Senate and the Clerk  of  the  House
 8        shall  determine  the  number  of  journals available for
 9        pickup at their respective offices.
10             (2)  Other  copies.   After  the  General   Assembly
11        adjourns, the Clerk of the House and the Secretary of the
12        Senate  shall  prepare  and  deliver  to  the Legislative
13        Printing Unit a printer's copy of matter for the  regular
14        House  and Senate journals, together with any matter, not
15        previously  printed  in  the  daily  journals,  that   is
16        required  by  law,  by order of either House, or by joint
17        resolution  to  be  printed   in   the   journals.    The
18        Legislative  Printing  Unit shall have printed the number
19        of copies of the bound journal as may be requested by the
20        clerical officer of each House.  A reasonable  number  of
21        bound volumes of the journal of each House of the General
22        Assembly  shall  be provided to State and local officers,
23        boards, commissions, institutions, departments, agencies,
24        and libraries requesting them through canvasses conducted
25        separately by the Secretary of the Senate and  the  Clerk
26        of  the House.  Reasonable fees established separately by
27        the Secretary of the Senate and the Clerk  of  the  House
28        may  be  charged for bound volumes of the journal of each
29        House of the General Assembly.
30        (f)  Session laws. Immediately after the General Assembly
31    adjourns, the Secretary of State shall  prepare  a  printer's
32    copy  for the "Session Laws of Illinois" that shall set forth
33    in full all Acts and joint resolutions passed by the  General
34    Assembly  at  the  session  just  concluded and all executive
HB1481 Engrossed            -33-               LRB9002279DNsb
 1    orders of the Governor taking effect under Article V, Section
 2    11 of  the  Constitution  and  the  Executive  Reorganization
 3    Implementation  Act.   The  printer's copy shall be furnished
 4    and delivered to the Secretary of State by the Enrolling  and
 5    Engrossing  Department  of  the  2  Houses.    At the time an
 6    enrolled law is filed with the Secretary  of  State,  whether
 7    before or after the conclusion of the session in which it was
 8    passed,  it  shall be assigned a Public Act number, the first
 9    part of which shall be the number  of  the  General  Assembly
10    followed  by  a  dash  and then a number showing the order in
11    which that law was filed with the  Secretary  of  State.  The
12    title  page  of each volume of the session laws shall contain
13    the following:  "Printed by  the  authority  of  the  General
14    Assembly  of  the  State  of  Illinois".   The  laws shall be
15    arranged by  the  Secretary  of  State  and  printed  in  the
16    chronological  order  of  Public  Act numbers.  At the end of
17    each Act the dates when the Act was  passed  by  the  General
18    Assembly  and when the Act was approved by the Governor shall
19    be stated.  Any Act becoming law without the approval of  the
20    Governor  shall  be  marked at its end in the session laws by
21    the printed certificate of the Secretary of State.  Executive
22    orders taking effect under  Article  V,  Section  11  of  the
23    Constitution  and the Executive Reorganization Implementation
24    Act shall be printed  in  chronological  order  of  executive
25    order  number  and  shall  state at the end of each executive
26    order the date it was transmitted to the General Assembly and
27    the date it takes effect. In the case of an  amendatory  Act,
28    the  changes made by the amendatory Act shall be indicated in
29    the session laws in the following manner:  (i) all new matter
30    shall be printed in italics; and (ii) all matter  deleted  by
31    the  amendatory  Act  shall be shown crossed with a line. The
32    Secretary of State shall  prepare  and  furnish  a  table  of
33    contents and an index to each volume of the session laws.
34        (g)  Distribution.  The bound volumes of the session laws
HB1481 Engrossed            -34-               LRB9002279DNsb
 1    of  the  General  Assembly  shall  be  made  available to the
 2    following:
 3             (1)  one copy of each to each State officer,  board,
 4        commission, institution, and department requesting a copy
 5        in  accordance  with a canvass conducted by the Secretary
 6        of State before the printing of the session  laws  except
 7        judges  of  the appellate courts and judges and associate
 8        judges of the circuit courts;
 9             (2)  10 copies to the law  library  of  the  Supreme
10        Court;  one  copy  each  to  the  law  libraries  of  the
11        appellate  courts; and one copy to each of the county law
12        libraries  or,  in  those  counties  without  county  law
13        libraries, one copy to the clerk of the circuit court;
14             (3)  one copy of each to each county clerk;
15             (4)  10  copies  of  each  to  the  library  of  the
16        University of Illinois;
17             (5)  3 copies  of  each  to  the  libraries  of  the
18        University  of  Illinois  at  Chicago,  Southern Illinois
19        University at Carbondale, Southern Illinois University at
20        Edwardsville,  Northern  Illinois   University,   Western
21        Illinois   University,   Eastern   Illinois   University,
22        Illinois  State  University,  Chicago  State  University,
23        Northeastern Illinois University, Chicago Kent College of
24        Law,  DePaul University, John Marshall Law School, Loyola
25        University,    Northwestern     University,     Roosevelt
26        University, and the University of Chicago;
27             (6)  a  number  of  copies  sufficient  for exchange
28        purposes to the  Legislative  Reference  Bureau  and  the
29        University of Illinois College of Law Library;
30             (7)  a   number  of  copies  sufficient  for  public
31        libraries in the State and the State Library; and
32             (8)  the   remainder   shall   be    retained    for
33        distribution as the interests of the State may require to
34        persons  making  application  in writing or in person for
HB1481 Engrossed            -35-               LRB9002279DNsb
 1        the publication.
 2        (h)  Messages  and  reports.   The  following  shall   be
 3    printed  in  a  quantity  not to exceed the maximum stated in
 4    this subsection and bound and distributed at public expense:
 5             (1)  messages  to  the  General  Assembly   by   the
 6        Governor, 10,000 copies;
 7             (2)  the biennial report of the Lieutenant Governor,
 8        1,000 copies;
 9             (3)  the  biennial report of the Secretary of State,
10        3,000 copies;
11             (4)  the biennial report of the  State  Comptroller,
12        5,000 copies;
13             (5)  the  biennial  report  of  the State Treasurer,
14        3,000 copies;
15             (6)  the  annual  report  of  the  State  Board   of
16        Education, 6,000 copies; and
17             (7)  the  biennial report and annual opinions of the
18        Attorney General, 5,000 copies.
19        The  reports  of  all  other  State   officers,   boards,
20    commissions,  institutions, and departments shall be printed,
21    bound, and distributed at  public  expense  in  a  number  of
22    copies  determined from previous experience not to exceed the
23    probable and reasonable demands of the State therefor.    Any
24    other  report  required  by  law  to  be made to the Governor
25    shall, upon his or her order,  be  printed  in  the  quantity
26    ordered  by  the  Governor,  bound  and distributed at public
27    expense.
28        (i)  Prohibition.  All books, pamphlets,  documents,  and
29    reports  published through or by the State of Illinois or any
30    State agency, board, or commission shall have printed thereon
31    "Printed by authority of the State of Illinois", the date  of
32    each  publication,  the  number  of  copies  printed, and the
33    printing  order  number.   Each   using   agency   shall   be
34    responsible  for  ascertaining  the  compliance  of  printing
HB1481 Engrossed            -36-               LRB9002279DNsb
 1    materials  procured  by  or  for it with this subsection.  No
 2    printing  or  reproduction  contract  shall  be  let  and  no
 3    printing or reproduction  shall  be  accomplished  when  that
 4    wording  does  not  appear  on  the material to be printed or
 5    reproduced.  No publication may  have  written,  stamped,  or
 6    printed  on  it,  or attached to it, "Compliments of ........
 7    (naming a person)" or any words of similar import.
 8        Section 25-65.  Federal  requirements.   A  State  agency
 9    receiving  federal-aid  funds,  grants  or  loans  shall have
10    authority to adapt its procedures, rules, project statements,
11    drawings,  maps,  surveys,  plans,  specifications,  contract
12    terms, estimates, bid forms, bond forms, and other  documents
13    or  practices  to  comply with the regulations, policies, and
14    procedures of the  designated  authority,  administration  or
15    department  of  the United States in order to remain eligible
16    for such federal-aid funds, grants, or loans.
17        Section    25-70.     Foreign    country    procurements.
18    Procurements to meet the needs of State  offices  located  in
19    foreign  countries  shall  comply with the provisions of this
20    Code to the extent practical.
21        Section 25-75.  Donations.  Nothing in this  Code  or  in
22    the  rules  promulgated  hereunder  shall  prevent  any State
23    agency from complying with the terms and  conditions  of  any
24    grant,  gift, or bequest which calls for the procurement of a
25    particular  good  or  service,  or  use   of   a   particular
26    contractor,  provided  the  grant,  gift, or bequest provides
27    complete funding for the contract.
28                             ARTICLE 30
29                   CONSTRUCTION AND CONSTRUCTION-
30                    RELATED PROFESSIONAL SERVICES
HB1481 Engrossed            -37-               LRB9002279DNsb
 1        Section   30-5.    Applicability.     Construction    and
 2    construction-related  professional services shall be procured
 3    in accordance with this Article.
 4        Section 30-10.  Authority.  Construction  agencies  shall
 5    have    the    authority    to   procure   construction   and
 6    construction-related professional services.
 7        Section 30-15.  Method of source selection.
 8        (a)  Competitive sealed bidding.  Except as  provided  in
 9    subsections  (b), (c), and (d) and Sections 20-20, 20-25, and
10    20-30, all State construction contracts shall be  awarded  by
11    competitive sealed bidding in accordance with Section 20-10.
12        (b)  Other  methods.   The  Board shall establish by rule
13    construction purchases that may be made  without  competitive
14    sealed  bidding  and the most competitive alternate method of
15    source selection that shall be used.
16        (c)  Construction-related  professional  services.    All
17    construction-related professional services contracts shall be
18    awarded   in   accordance   with   the   provisions   of  the
19    Architectural, Engineering, and Land Surveying Qualifications
20    Based Selection Act.   "Professional  services"  means  those
21    services  within  the  scope of the practice of architecture,
22    professional   engineering,   structural   engineering,    or
23    registered  land  surveying,  as  defined by the laws of this
24    State.
25        (d)  Correctional     facilities.      Remodeling     and
26    rehabilitation  projects  at  correctional  facilities  under
27    $25,000 funded from the General Revenue Fund are exempt  from
28    the   provisions   of   this   Article.   The  Department  of
29    Corrections may  use  inmate  labor  for  the  remodeling  or
30    rehabilitation  of  correctional facilities on those projects
31    under $25,000 funded from the General Revenue Fund.
HB1481 Engrossed            -38-               LRB9002279DNsb
 1        Section  30-20.   Prequalification.   The   Board   shall
 2    promulgate rules for the development of prequalified supplier
 3    lists  for construction and construction-related professional
 4    services  and  the  periodic   updating   of   those   lists.
 5    Construction  and  construction-related professional services
 6    contracts over  $25,000  may  be  awarded  to  any  qualified
 7    suppliers.
 8        Section  30-25.   Retention  of  a percentage of contract
 9    price.  Whenever any contract entered into by a  construction
10    agency   for   the   repair,   remodeling,   renovation,   or
11    construction of a building or structure, for the construction
12    or  maintenance  of  a highway, as those terms are defined in
13    Article  2  of  the  Illinois  Highway  Code,  or   for   the
14    reclamation  of abandoned lands as those terms are defined in
15    Article I of the Abandoned Mined Lands and Water  Reclamation
16    Act  provides  for  the  retention  of  a  percentage  of the
17    contract price until final completion and acceptance  of  the
18    work,  upon  the  request  of  the  contractor  and  with the
19    approval of the construction agency the  amount  so  retained
20    may  be  deposited  under  a trust agreement with an Illinois
21    bank of the contractor's choice and subject to  the  approval
22    of the construction agency.  The contractor shall receive any
23    interest  on  the  deposited amount.  Upon application by the
24    contractor, the trust agreement must contain, at  a  minimum,
25    the following provisions:
26             (1)  the  amount  to  be  deposited  subject  to the
27        trust;
28             (2)  the terms and conditions of payment in case  of
29        default by the contractor;
30             (3)  the  termination  of  the  trust agreement upon
31        completion of the contract; and
32             (4)  the  contractor  shall   be   responsible   for
33        obtaining the written consent of the bank trustee and for
HB1481 Engrossed            -39-               LRB9002279DNsb
 1        any costs or service fees.
 2        The  trust  agreement  may,  at  the  discretion  of  the
 3    construction  agency  and  upon  request  of  the contractor,
 4    become effective at the time of the first partial payment  in
 5    accordance with existing statutes and rules of the Board.
 6        Section  30-30.   Contracts  in  excess  of $250,000. For
 7    construction  contracts  in  excess  of  $250,000,   separate
 8    specifications  shall  be  prepared for all equipment, labor,
 9    and materials in connection with the following 5 subdivisions
10    of the work to be performed:
11             (1)  plumbing;
12             (2)  heating, piping, refrigeration,  and  automatic
13        temperature  control  systems,  including the testing and
14        balancing of those systems;
15             (3)  ventilating  and   distribution   systems   for
16        conditioned  air,  including the testing and balancing of
17        those systems;
18             (4)  electric wiring; and
19             (5)  general contract work.
20        The specifications must be so drawn as to permit separate
21    and independent bidding upon each of the  5  subdivisions  of
22    work.  All contracts awarded for any part thereof shall award
23    the  5  subdivisions  of  work  separately to responsible and
24    reliable persons, firms, or  corporations  engaged  in  these
25    classes  of  work.   The  contracts, at the discretion of the
26    construction agency, may be assigned to the successful bidder
27    on the general contract work or to the successful  bidder  on
28    the subdivision of work designated by the construction agency
29    before the bidding as the prime subdivision of work, provided
30    that  all  payments  will be made directly to the contractors
31    for the 5 subdivisions  of  work  upon  compliance  with  the
32    conditions of the contract.  A contract may be let for one or
33    more  buildings  in  any project to the same contractor.  The
HB1481 Engrossed            -40-               LRB9002279DNsb
 1    specifications  shall  require,  however,  that  unless   the
 2    buildings  are identical, a separate price shall be submitted
 3    for each building.  The contract may be awarded to the lowest
 4    responsible bidder for each or all of the buildings  included
 5    in the specifications.
 6        Section 30-35.  Expenditure in excess of contract price.
 7        (a)  Germaneness.   No  funds  in  excess of the contract
 8    price may be obligated or expended unless the additional work
 9    to be performed or materials to be furnished  is  germane  to
10    the  original  contract.   Even  if  germane  to the original
11    contract, no additional expenditures or obligations  may,  in
12    their total combined amounts, be in excess of the percentages
13    of  the  original contract amount set forth in subsection (b)
14    unless they have received the prior written approval  of  the
15    construction  agency.   In  the  event  that the total of the
16    combined additional expenditures or obligations  exceeds  the
17    percentages  of  the  original  contract  amount set forth in
18    subsection (b), the construction agency shall investigate all
19    the additional expenditures or obligations in excess  of  the
20    original  contract  amount  and  shall  in writing approve or
21    disapprove subsequent expenditures or obligations  and  state
22    in detail the reasons for the approval or disapproval.
23        (b)  Written  determination  required.  When the contract
24    amount is no more than $75,000, the percentage  shall  be  9%
25    (maximum  $6,750).   When  the  contract  amount  is  between
26    $75,001  and  $200,000,  the  percentage  shall  be 7% of the
27    amount above $75,000 plus $6,750, but not  to  exceed  7%  of
28    $200,000  (maximum  $14,000).   When  the  contract amount is
29    between $200,001 and $500,000, the percentage shall be 5%  of
30    the  amount above $200,000 plus $14,000, but not to exceed 5%
31    of $500,000 (maximum $25,000).  When the contract  amount  is
32    in  excess  of  $500,000,  the  percentage shall be 3% of the
33    amount above $500,000 plus $25,000.
HB1481 Engrossed            -41-               LRB9002279DNsb
 1        Section 30-40.  Certification.  Any contract entered into
 2    or  expenditure  of  funds  by  a  construction  agency   for
 3    remodeling,   renovation,   or   construction,  involving  an
 4    expenditure in excess of $5,000,  shall  be  subject  to  the
 5    supervision  of a licensed architect or engineer.  No payment
 6    shall be made for the remodeling, renovation, or construction
 7    unless the vouchers or invoice for the work is accompanied by
 8    a written certificate of the licensed architect  or  engineer
 9    that  the  payment  represents work satisfactorily completed,
10    labor, or materials incorporated in or stored at the site  of
11    the  work; provided, periodic payments can be made during the
12    course of  the  work  upon  a  certificate  of  the  licensed
13    architect  or engineer indicating the proportionate amount of
14    the total work completed satisfactorily.
15        Section 30-45.  Other Acts.  This Article is  subject  to
16    applicable provisions of the following Acts:
17             (1)  the Prevailing Wage Act;
18             (2)  the Public Construction Bond Act;
19             (3)  the Public Works Employment Discrimination Act;
20             (4)  the Public Works Preference Act;
21             (5)  the  Employment  of  Illinois Workers on Public
22        Works Act;
23             (6)  the Public Contract Fraud Act; and
24             (7)  the Illinois Construction Evaluation Act.
25                             ARTICLE 35
26                  PROFESSIONAL OR ARTISTIC SERVICES
27        Section  35-5.    Applicability.    All   contracts   for
28    professional  or  artistic  services  shall  be  procured  in
29    accordance with the provisions of this Article.
30        Section  35-10.  Authority.  Each State agency shall have
HB1481 Engrossed            -42-               LRB9002279DNsb
 1    the authority to procure its  own  professional  or  artistic
 2    services.
 3        Section 35-15.  Method of source selection.
 4        (a)  Competitive   selection   procedures.    Except   as
 5    provided  in subsection (b) and Sections 20-25 and 20-30, all
 6    State contracts for  professional  or  artistic  services  of
 7    $25,000 or more shall be awarded by a competitive request for
 8    proposal  process in accordance with this Section and Section
 9    20-35.
10        (b)  Other methods. The Board shall  identify  categories
11    of professional and artistic services and shall determine the
12    method  of  source selection that is in the best interests of
13    the State for each category.   A State  agency  may  award  a
14    professional  or  artistic  service  contract  by a method of
15    source selection other than  the  method  designated  by  the
16    Board  for  that  category  of service only when justified in
17    writing to the Board and approved by the Board in advance  of
18    the award.
19        (c)  If  a State agency awards a professional or artistic
20    service contract exceeding $25,000 to a party other than  the
21    lowest  bidder,  the  State purchasing officer must forward a
22    written decision together with the contract notice of who the
23    lowest bidder was to  the  Board,  which  shall  publish  the
24    decision  in  the  next  issue  of  the  Illinois Procurement
25    Bulletin.
26        Section 35-20.  Uniformity in procurement.
27        (a)  The Board shall develop, cause to  be  printed,  and
28    distribute  uniform  documents  for the solicitation, review,
29    and acceptance of all professional and artistic services.
30        (b)  All State purchasing officers  and  their  designees
31    shall  use the uniform procedures and forms specified in this
32    Code for all professional and artistic services.
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 1        (c)  These forms shall include in detail, in writing,  at
 2    least:
 3             (1)  a description of the goal to be achieved;
 4             (2)  the services to be performed;
 5             (3)  the need for the service;
 6             (4)  the qualifications that are necessary; and
 7             (5)  a plan for post-performance review.
 8        Section 35-25. Uniformity in contract.
 9        (a)  The  Board  shall  develop, cause to be printed, and
10    distribute  uniform  documents   for   the   contracting   of
11    professional and artistic services.
12        (b)  All  State  purchasing  officers and their designees
13    shall use these uniform contracts and  forms  in  contracting
14    for all professional and artistic services.
15        (c)  These  contracts  and forms shall include in detail,
16    in writing, at least:
17             (1)  the detail listed in subsection (c) of  Section
18        35-20;
19             (2)  the  duration  of the contract, with a schedule
20        of delivery, when applicable;
21             (3)  the method  for  charging  and  measuring  cost
22        (hourly, per day, etc.);
23             (4)  the rate of remuneration; and
24             (5)  the maximum price.
25        Section 35-35.  Subcontractors.
26        (a)  Use  specified.   Any  contract  for professional or
27    artistic services shall  state  whether  the  services  of  a
28    subcontractor  will  be used.  The contract shall include the
29    names and addresses of all subcontractors and the anticipated
30    amount of money that they will receive under the contract.
31        (b)  Amendment.   If  at  any  time  a   contractor   for
32    professional  or  artistic  services that had not intended to
HB1481 Engrossed            -44-               LRB9002279DNsb
 1    use  the  services  of  a  subcontractor  decides  to  use  a
 2    subcontractor, the contractor and the State agency shall file
 3    an amendment to the original contract  with  the  Comptroller
 4    stating the names and addresses of all subcontractors and the
 5    anticipated  amount of money that they will receive under the
 6    original contract.
 7                             ARTICLE 40
 8            REAL PROPERTY AND CAPITAL IMPROVEMENT LEASES
 9        Section  40-5.   Applicability.   All  leases  for   real
10    property   or  capital  improvements,  including  office  and
11    storage space, buildings,  and  other  facilities  for  State
12    agencies, shall be procured in accordance with the provisions
13    of this Article.
14        Section  40-10.   Authority.   State  purchasing officers
15    shall have the authority to procure leases for real  property
16    or  capital  improvements,  except  as  that authority may be
17    limited by the Board or delegated  by  the  State  purchasing
18    officer in accordance with Section 10-15.
19        Section 40-15.  Method of source selection.
20        (a)  Request  for  information.   Except  as  provided in
21    subsections (b) and (c), all State contracts  for  leases  of
22    real  property  or capital improvements shall be awarded by a
23    request for information process in  accordance  with  Section
24    40-20.
25        (b)  Other  methods.   A  request for information process
26    need not be used in procuring any of the following leases:
27             (1)  Property of less than 10,000 square feet.
28             (2)  Rent of less than $100,000 per year.
29             (3)  Duration of less than one year that  cannot  be
30        renewed.
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 1             (4)  Specialized   space   available   at  only  one
 2        location.
 3        (c)  Leases with governmental units.  Leases  with  other
 4    governmental  units  may  be  negotiated  without  using  the
 5    request  for  information process when deemed by the Board to
 6    be in the best interest of the State.
 7        Section 40-20.  Request for information.
 8        (a)  Conditions for use.  Leases  shall  be  procured  by
 9    request  for  information  except  as  otherwise  provided in
10    Section 40-15.
11        (b)  Form.  A request for information shall be issued and
12    shall include:
13             (1)  the type of property to be leased;
14             (2)  the proposed uses of the property;
15             (3)  the duration of the lease;
16             (4)  the preferred location of the property; and
17             (5)  a  general  description  of  the  configuration
18        desired.
19        (c)  Public notice.  Public notice  of  the  request  for
20    information  for  the  availability of real property to lease
21    shall be published in the Illinois  Procurement  Bulletin  at
22    least  14  days  before the date set forth in the request for
23    receipt of responses and shall also be published  in  similar
24    manner in a newspaper of general circulation in the community
25    or communities where the using agency is seeking space.
26        (d)  Response.   The  request  for  information  response
27    shall  consist of written information sufficient to show that
28    the respondent can meet minimum criteria  set  forth  in  the
29    request.    State   purchasing   officers   may   enter  into
30    discussions with respondents for the  purpose  of  clarifying
31    State  needs and the information supplied by the respondents.
32    On the basis of the information supplied and discussions,  if
33    any,   a  State  purchasing  officer  shall  make  a  written
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 1    determination identifying the responses that meet the minimum
 2    criteria  set  forth  in   the   request   for   information.
 3    Negotiations   shall  be  entered  into  with  all  qualified
 4    respondents for the purpose of securing a lease  that  is  in
 5    the  best  interest  of  the  State.  A written report of the
 6    negotiations shall be retained in the lease files  and  shall
 7    include  the  reasons  for  the  final selection.  All leases
 8    shall be reduced to writing and filed in accordance with  the
 9    provisions of Section 20-80.
10        (e)  Exceptions.   A request for information process need
11    not be used and  the  procurement  may  be  negotiated  when,
12    according  to  Board rules, the purchasing officer determines
13    that negotiations are in the best interest of  the  State  in
14    the following situations:
15             (1)  renewal or extension of leases;
16             (2)  temporary space as defined by rule; or
17             (3)  specialized   space   available   at  only  one
18        location and parking.
19        Section 40-25.  Length of leases.
20        (a)  Maximum term.  Leases shall be for  a  term  not  to
21    exceed  10  years  and  shall include a termination option in
22    favor of the State after 5 years.
23        (b)  Renewal.  Leases may include a renewal  option.   An
24    option to renew may be exercised only when a State purchasing
25    officer  determines  in  writing  that renewal is in the best
26    interest of the State.
27        (c)  Subject to appropriation.  All leases  shall  recite
28    that  they are subject to termination and cancellation in any
29    year  for  which  the  General  Assembly  fails  to  make  an
30    appropriation to make payments under the terms of the lease.
31        Section 40-30.  Purchase option.  Initial leases  of  all
32    space  in  entire,  free-standing  buildings shall include an
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 1    option to purchase exerciseable  by  the  State,  unless  the
 2    purchasing officer determines that inclusion of such purchase
 3    option  is  not  in  the State's best interest and makes that
 4    determination in writing along with the  reasons  for  making
 5    that  determination.    Leases  from  governmental  units and
 6    not-for-profit entities are exempt from requirements of  this
 7    Section.
 8        Section  40-35.   Rent  without  occupancy.   Except when
 9    deemed by the Board to be in the best interest of the  State,
10    no State agency may incur rental obligations before occupying
11    the space rented.
12        Section 40-40.  Local site preferences.  Upon the request
13    of the chief executive officer of a unit of local government,
14    leasing   preferences  may  be  given  to  sites  located  in
15    enterprise zones, tax increment districts,  or  redevelopment
16    districts.
17                             ARTICLE 42
18                             CONCESSIONS
19        Section 42-10.  Concessions and leases of State property.
20        (a)  Concessions,   including  the  assignment,  license,
21    sale, or transfer of interests in or rights  to  discoveries,
22    inventions,  patents,  or  copyrightable works, and leases of
23    State property, including easements, may be entered  into  by
24    the State Agency with jurisdiction over the property, whether
25    tangible or intangible.
26        (b)  All  concessions  and leases of State property shall
27    be  reduced  to  writing  and  shall  be  awarded  under  the
28    provisions of  Article  20  of  the  Code,  except  that  the
29    contract  shall  be awarded to the highest and best bidder or
30    offeror.
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 1        Section  42-20.   Contract  duration  and   terms.    The
 2    duration  and  terms  of  concessions  and  leases  of  State
 3    property shall be in accordance with applicable law or rule.
 4                             ARTICLE 45
 5                             PREFERENCES
 6        Section   45-5.   Procurement  preferences.   To  promote
 7    business   and   employment   opportunities   in    Illinois,
 8    procurement   preferences   are   established  and  shall  be
 9    applicable to any procurement made under this Code.
10        Section 45-10.  Resident bidders.
11        (a)  Amount of preference.
12             (1)  A  resident  contractor  shall  be  allowed   a
13        preference  as  against  a non-resident contractor in the
14        event of a tie bid.
15             (2)  A  resident  contractor  shall  be  allowed   a
16        preference  as against a non-resident contractor from any
17        state that gives or requires a preference to  contractors
18        from  that  state.   The preference shall be equal to the
19        preference  given  or  required  by  the  state  of   the
20        non-resident contractor.
21             (3)  If only non-resident contractors are competing,
22        the purchasing agency is within its right to specify that
23        Illinois  labor  and manufacturing locations be used as a
24        part of the manufacturing process,  if  applicable.  This
25        specification   may   be   negotiated   as  part  of  the
26        procurement process.
27        (b)  Residency.  A resident bidder is a person authorized
28    to transact business in this State and  having  a  bona  fide
29    establishment  for  transacting  business  within  this State
30    where it was actually transacting business on the  date  when
31    any  bid  for  a  public  contract  is  first  advertised  or
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 1    announced.   A resident bidder includes a foreign corporation
 2    duly authorized to transact business in this State that has a
 3    bona fide establishment for transacting business within  this
 4    State  where it was actually transacting business on the date
 5    when any bid for a public contract  is  first  advertised  or
 6    announced.
 7        (c)  Federal  funds.   This Section does not apply to any
 8    contract for any  project  as  to  which  federal  funds  are
 9    available  for  expenditure  when  its  provisions  may be in
10    conflict with federal law or federal regulation.
11        Section 45-15.  Soybean oil-based ink.
12        (a)  Contracts  requiring  the  procurement  of  printing
13    services shall specify  the  use  of  soybean  oil-based  ink
14    unless  a  State  purchasing  officer determines that another
15    type of ink is required to assure high quality and reasonable
16    pricing of the printed product.
17        (b)  All other printing done by or for  the  State  shall
18    use  soybean  oil-based  ink unless the agency by or for whom
19    the printing is done determines that another type of  ink  is
20    required to assure high quality and reasonable pricing of the
21    printed  product.   Printing  done  by  or  for  the State in
22    soybean oil-based ink shall state, if practical, that soybean
23    oil-based ink was used.
24        Section  45-20.   Recycled  materials.   When  a   public
25    contract  is  to be awarded to the lowest responsible bidder,
26    an otherwise qualified bidder who will fulfill  the  contract
27    through  the  use of products made of recycled materials may,
28    on a pilot basis or in accordance  with  a  pilot  study,  be
29    given preference over other bidders unable to do so, provided
30    that  the  cost  included  in  the  bid  of  products made of
31    recycled materials is not more than 10% greater than the cost
32    of products not made of recycled materials.
HB1481 Engrossed            -50-               LRB9002279DNsb
 1        Section 45-25.  Recyclable paper.   All  paper  purchased
 2    for  use  by  State  agencies must be recyclable paper unless
 3    recyclable paper cannot be used to meet the  requirements  of
 4    the  State  agencies.   State  agencies shall determine their
 5    paper requirements to  allow  the  use  of  recyclable  paper
 6    whenever  possible,  including without limitation using plain
 7    paper rather than colored paper that is not recyclable.
 8        Section 45-30.  Correctional industries.  Notwithstanding
 9    any  other  provision  to  the  contrary, the Board shall, in
10    consultation with the Department  of  Corrections,  determine
11    which  articles,  materials,  industry related services, food
12    stuffs, and supplies that are  produced  or  manufactured  by
13    persons  confined  in  institutions  and  facilities  of  the
14    Department  of  Corrections  shall  be  given  preference  by
15    purchasing  agencies  procuring those items.  The Board shall
16    develop and distribute to the various Procurement  and  Using
17    Agencies procedures for executing this Section.
18        Section  45-35.   Sheltered  workshops  for  the severely
19    handicapped.
20        (a)  Qualification.   Supplies  and   services   may   be
21    procured  without  advertising  or  calling for bids from any
22    qualified not-for-profit agency for the severely  handicapped
23    that:
24             (1)  complies  with  Illinois laws governing private
25        not-for-profit organizations;
26             (2)  is certified as a  sheltered  workshop  by  the
27        Wage and Hour Division of the United States Department of
28        Labor; and
29             (3)  meets the Department of Rehabilitation Services
30        (until  July 1, 1997 and the Department of Human Services
31        on  and  after  July  1,   1997)   just   standards   for
32        rehabilitation facilities.
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 1        (b)  Participation.   To  participate, the not-for-profit
 2    agency must have  indicated  an  interest  in  providing  the
 3    supplies and services, must meet the specifications and needs
 4    of the using agency, and must set a fair market price.
 5        (c)  Committee.   There  is created within the Department
 6    of Central Management Services a committee to facilitate  the
 7    purchase  of  products  and  services  of persons so severely
 8    handicapped by a physical  or  mental  disability  that  they
 9    cannot   engage   in   normal  competitive  employment.   The
10    committee shall consist of the Director of Central Management
11    Services, the Director of  Mental  Health  and  Developmental
12    Disabilities   until   July   1,   1997,   the   Director  of
13    Rehabilitation Services until July 1, 1997, the  Director  of
14    Human   Services   on   and   after   July  1,  1997,  and  2
15    representatives from private business and  2  public  members
16    all  appointed  by  the Governor who are knowledgeable in the
17    needs and concerns of rehabilitation facilities in  Illinois.
18    The  public members shall serve 2 year terms, commencing upon
19    appointment and every 2 years thereafter.   A  public  member
20    may   be   reappointed,   and  vacancies  may  be  filled  by
21    appointment for the completion  of  the  term.   The  members
22    shall  serve without compensation but shall be reimbursed for
23    expenses at a rate equal to that of State employees on a  per
24    diem  basis by the Department of Central Management Services.
25    All members shall be entitled to vote on  issues  before  the
26    committee.
27        The committee shall have the following powers and duties:
28             (1)  To request from any State agency information as
29        to  product  specification  and  service  requirements in
30        order to carry out its purpose.
31             (2)  To meet quarterly or more often as necessary to
32        carry out its purposes.
33             (3)  To  request  a  quarterly  report   from   each
34        participating  qualified  not-for-profit  agency  for the
HB1481 Engrossed            -52-               LRB9002279DNsb
 1        severely handicapped describing the volume of  sales  for
 2        each product or service sold under this Section.
 3             (4)  To prepare a report for the Governor annually.
 4             (5)  To   prepare   a  publication  that  lists  all
 5        supplies  and  services  currently  available  from   any
 6        qualified   not-for-profit   agency   for   the  severely
 7        handicapped.   This  list  and  any  revisions  shall  be
 8        distributed to all purchasing agencies.
 9             (6)  To encourage diversity in supplies and services
10        provided by qualified  not-for-profit  agencies  for  the
11        severely    handicapped    and   discourage   unnecessary
12        duplication or competition among facilities.
13             (7)  To  develop  guidelines  to  be   followed   by
14        qualifying   agencies   for   participation   under   the
15        provisions  of  this  Section.   The  guidelines shall be
16        developed within 6 months after  the  effective  date  of
17        this Code and made available on a nondiscriminatory basis
18        to all qualifying agencies.
19             (8)  To   review   all   bids  submitted  under  the
20        provisions of this Section and reject  any  bid  for  any
21        purchase that is determined to be substantially more than
22        the  purchase  would  have cost had it been competitively
23        bid.
24        (d)  Former  committee.   The  committee  created   under
25    subsection  (c)  shall  replace  the  committee created under
26    Section 7-2 of  the  Illinois  Purchasing  Act,  which  shall
27    continue  to  operate until the appointments under subsection
28    (c) are made.
29        Section 45-37. Purchases from qualified private  business
30    with  a  supported  employment work force. A State agency may
31    buy products  and  services,  without  advertising  or  using
32    competitive  procedures,  from  a  qualified private business
33    that:
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 1             (1)  complies with Illinois laws governing  private,
 2        for-profit enterprises;
 3             (2)  employs  individuals  meeting the definition of
 4        supported employee;
 5             (3)  provides necessary supports  to  its  supported
 6        employees to assist them in maintaining their employment;
 7             (4)  provides   its  employees  with  an  integrated
 8        setting in which:
 9                  (A)  at least 5%  and  not  more  than  20%  of
10             employees  are  supported  employees approved by the
11             Department  of  Rehabilitation   Services   or   the
12             Department of Human Services;
13                  (B)  most   interpersonal   interactions  of  a
14             supported  employment  worker   that   are   in   or
15             associated with the work place are with employees of
16             that  work  place  who  are not supported employment
17             workers; and
18                  (C)  most (at least 50%) of the  work  expended
19             to  produce  the amount of the goods and services to
20             be sold  to  the  State  is  provided  by  supported
21             employees;
22             (5)  completes a Bidders Application form that is on
23        file  with the Department of Central Management Services;
24        and
25             (6)  meets the bid specifications or  the  needs  of
26        the purchasing agency at a fair market price.
27        Those  businesses  must  file  a  quarterly  report  with
28    Department   of   Central  Management  Services  listing  all
29    contracts with State agencies.
30        The State Use Committee is responsible  for  interpreting
31    the  provisions of this Section and for monitoring and making
32    decisions regarding contracts under this Section.
33        Section 45-40.  Gas mileage.
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 1        (a)  Specification.  Contracts for the purchase or  lease
 2    of  new  passenger  automobiles,  other  than station wagons,
 3    vans, four-wheel  drive  vehicles,  emergency  vehicles,  and
 4    police  and fire vehicles, shall specify the procurement of a
 5    model that, according  to  the  most  current  mileage  study
 6    published  by  the  U.S. Environmental Protection Agency, can
 7    achieve at least the minimum average fuel  economy  in  miles
 8    per gallon imposed upon manufacturers of vehicles under Title
 9    V of The Motor Vehicle Information and Cost Savings Act.
10        (b)  Exemptions.  The State purchasing officer may exempt
11    procurements  from  the  requirement  of  subsection (a) when
12    there is a demonstrated need, submitted in  writing,  for  an
13    automobile  that  does  not  meet  the  minimum  average fuel
14    economy standards.  The  Board  shall  promulgate  rules  for
15    determining need consistent with the intent of this Section.
16        Section 45-45.  Small businesses.
17        (a)  Set-asides.  The Board has authority to designate as
18    small  business set-asides a fair proportion of construction,
19    supply, and service contracts for award to  small  businesses
20    in  Illinois.    Advertisements  for bids or offers for those
21    contracts  shall  specify  designation  as   small   business
22    set-asides.   In  awarding the contracts, only bids or offers
23    from qualified small businesses shall be considered.
24        (b)  Small business.  "Small business" means  a  business
25    that  is  independently  owned  and  operated and that is not
26    dominant  in  its  field  of  operation.   The  Board   shall
27    establish a detailed definition by rule, using in addition to
28    the  foregoing  criteria other criteria, including the number
29    of  employees  and  the  dollar  volume  of  business.   When
30    computing the size status  of  a  bidder,  annual  sales  and
31    receipts  of  the  bidder  and all of its affiliates shall be
32    included.  The maximum number of employees  and  the  maximum
33    dollar  volume that a small business may have under the rules
HB1481 Engrossed            -55-               LRB9002279DNsb
 1    promulgated by the Board may vary from industry  to  industry
 2    to  the extent necessary to reflect differing characteristics
 3    of those industries, subject to the following limitations:
 4             (1)  No wholesale business is a  small  business  if
 5        its  annual  sales for its most recently completed fiscal
 6        year exceed $7,500,000.
 7             (2)  No retail business or business selling services
 8        is a small business if  its  annual  sales  and  receipts
 9        exceed $1,500,000.
10             (3)  No  manufacturing  business is a small business
11        if it employs more than 250 persons.
12             (4)  No construction business is a small business if
13        its annual sales and receipts exceed $3,000,000.
14        (c)  Fair proportion.  For the purpose of subsection (a),
15    a fair proportion of construction contracts shall be no  less
16    than  25% nor more than 40% of the annual total contracts for
17    construction.
18        (d)  Withdrawal  of  designation.    A   small   business
19    set-aside  designation  may  be  withdrawn  by the purchasing
20    agency when deemed in the best interests of the State.   Upon
21    withdrawal,  all  bids  or  offers shall be rejected, and the
22    bidders or offerors shall  be  notified  of  the  reason  for
23    rejection.   The contract shall then be awarded in accordance
24    with this Code without  the  designation  of  small  business
25    set-aside.
26        (e)  Small  business  assistance. The purchasing officers
27    shall assist small businesses by:
28             (1)  Compiling  and  maintaining   a   comprehensive
29        bidders  list  of  small businesses.  In this duty, he or
30        she shall  cooperate  with  the  Federal  Small  Business
31        Administration  in locating potential sources for various
32        products and services.
33             (2)  Assisting small businesses  in  complying  with
34        the procedures for bidding on State contracts.
HB1481 Engrossed            -56-               LRB9002279DNsb
 1             (3)  Examining  requests from State agencies for the
 2        purchase of property or services to help determine  which
 3        invitations  to  bid  are to be designated small business
 4        set-asides.
 5             (4)  Making recommendations to  the  Board  for  the
 6        simplification  of  specifications  and terms in order to
 7        increase   the   opportunities   for    small    business
 8        participation.
 9             (5)  Assisting   in   investigations  by  purchasing
10        agencies to determine the responsibility  of  bidders  on
11        small business set-asides.
12        (f)  Small  business annual report.  The State purchasing
13    officer designated under subsection (e) shall annually before
14    December  1  report  in  writing  to  the  General   Assembly
15    concerning  the  awarding  of  contracts to small businesses.
16    The report shall include the total value of  awards  made  in
17    the  preceding  fiscal  year  under  the designation of small
18    business set-aside.
19        The requirement for reporting  to  the  General  Assembly
20    shall be satisfied by filing copies of the report as required
21    by Section 3.1 of the General Assembly Organization Act.
22        Section   45-50.   Illinois  agricultural  products.   In
23    awarding contracts requiring the procurement of  agricultural
24    products,  preference  may be given to an otherwise qualified
25    bidder or offeror who will fulfill the contract  through  the
26    use of agricultural products grown in Illinois.
27        Section   45-55.    Corn-based   plastics.   In  awarding
28    contracts requiring  the  procurement  of  plastic  products,
29    preference  may  be given to an otherwise qualified bidder or
30    offeror who will fulfill the  contract  through  the  use  of
31    plastic products made from Illinois corn by-products.
HB1481 Engrossed            -57-               LRB9002279DNsb
 1        Section   45-60.    Vehicles   powered   by  agricultural
 2    commodity-based fuel.  In awarding  contracts  requiring  the
 3    procurement  of  vehicles,  preference  may  be  given  to an
 4    otherwise qualified bidder or offeror who  will  fulfill  the
 5    contract  through  the  use  of  vehicles  powered by ethanol
 6    produced from Illinois corn or biodiesel fuels produced  from
 7    Illinois soybeans.
 8        Section  45-65.   Additional  preferences.   This Code is
 9    subject to applicable provisions of:
10             (1)  the Public Purchases in Other States Act;
11             (2)  the Illinois Mined Coal Act;
12             (3)  the Steel Products Procurement Act;
13             (4)  the Veterans Preference Act; and
14             (5)  the   Business   Enterprise   for   Minorities,
15        Females, and Disabled Persons Act.
16                             ARTICLE 50
17              PROHIBITIONS, RESTRICTIONS, AND PENALTIES
18        Section 50-5.  Bribery.
19        (a)  Prohibition.  No person or business shall be awarded
20    a contract or subcontract under this Code who:
21             (1)  has been convicted under the laws  of  Illinois
22        or  any other state of bribery  or attempting to bribe an
23        officer or employee of the State of Illinois or any other
24        state in that officer's or employee's official  capacity;
25        or
26             (2)  has  made an admission of guilt of that conduct
27        that is a matter of record but has  not  been  prosecuted
28        for that conduct.
29        (b)  Businesses.    No  business  shall  be  barred  from
30    contracting with any unit of State or local government  as  a
31    result  of a conviction under this Section of any employee or
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 1    agent of the business if the employee or agent is  no  longer
 2    employed by the business and:
 3             (1)  the  business  has been finally adjudicated not
 4        guilty; or
 5             (2)  the business demonstrates to  the  governmental
 6        entity  with  which it seeks to contract, and that entity
 7        finds  that  the  commission  of  the  offense  was   not
 8        authorized,  requested,  commanded,  or  performed  by  a
 9        director,  officer, or high managerial agent on behalf of
10        the business as provided in paragraph (2)  of  subsection
11        (a) of Section 5-4 of the Criminal Code of 1961.
12        (c)  Conduct on behalf of business.  For purposes of this
13    Section,  when  an official, agent, or employee of a business
14    committed the bribery or attempted bribery on behalf  of  the
15    business   and   in   accordance   with   the   direction  or
16    authorization of a responsible official of the business,  the
17    business shall be chargeable with the conduct.
18        (d)  Certification.   Every bid submitted to and contract
19    executed by the State shall contain a  certification  by  the
20    contractor  that  the  contractor  is  not  barred from being
21    awarded a contract or  subcontract  under  this  Section.   A
22    contractor  who  makes  a  false  statement,  material to the
23    certification, commits a Class 3 felony.
24        Section 50-10.  Felons.  Unless  otherwise  provided,  no
25    person  or  business  convicted of a felony shall do business
26    with the State of Illinois or any State agency from the  date
27    of conviction until one year after the date  of completion of
28    the   sentence   for  that  felony,  unless  no  person  held
29    responsible by a prosecutorial  office  for  the  facts  upon
30    which   the  conviction  was  based  continues  to  have  any
31    involvement with the business.
32        Section 50-15.  Conflicts of interest.
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 1        (a)  Prohibition.  It is unlawful for any person  holding
 2    an  elective  office  in  this  State,  holding a seat in the
 3    General Assembly, or appointed to or employed in any  of  the
 4    offices  or  agencies  of  State government, and who receives
 5    compensation for such employment in  excess  of  60%  of  the
 6    salary of the Governor of the State of Illinois, or who is an
 7    officer  or  employee of the Capital Development Board or the
 8    Illinois Toll Highway Authority, or  who  is  the  spouse  or
 9    minor  child  of  any  such  person  to  have  or acquire any
10    contract, or any direct pecuniary interest  in  any  contract
11    therein,  whether  for  stationery,  printing,  paper, or any
12    services, materials, or supplies,  that  will  be  wholly  or
13    partially  satisfied  by the payment of funds appropriated by
14    the General Assembly of the  State  of  Illinois  or  in  any
15    contract  of  the  Capital  Development Board or the Illinois
16    Toll Highway Authority.
17        (b)  Interests.    It   is   unlawful   for   any   firm,
18    partnership, association, or corporation in which any  person
19    listed in subsection (a) is entitled to receive (i) more than
20    7  1/2%  of the total distributable income, or (ii) an amount
21    in excess of the salary of the Governor, whichever is  lower,
22    to  have  or  acquire  any  such contract or direct pecuniary
23    interest therein.
24        (c)  Combined interests.  It is unlawful  for  any  firm,
25    partnership,  association, or corporation in which any person
26    listed in subsection (a) together with his or her  spouse  or
27    minor  children  is entitled to receive (i) more than 15%, in
28    the aggregate, of the total distributable income, or (ii)  an
29    amount  in excess of 2 times the Governor's salary, whichever
30    is lower, to have or acquire  any  such  contract  or  direct
31    pecuniary interest therein.
32        (d)  Securities.  Nothing in this Section invalidates the
33    provisions  of  any bond or other security previously offered
34    or to be offered for sale or sold by  or  for  the  State  of
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 1    Illinois.
 2        (e)  Prior  interests.   This Section does not affect the
 3    validity of any  contract  made  between  the  State  and  an
 4    officer  or  employee  of  the State or member of the General
 5    Assembly, his or her spouse, minor child or  any  combination
 6    of those persons if that contract was in existence before his
 7    or  her  election  or  employment  as  an officer, member, or
 8    employee.  The contract is void, however,  if  it  cannot  be
 9    completed  within  6  months  after  the  officer, member, or
10    employee takes office or is employed.
11        (f)  Exceptions.
12             (1)  Public aid payments.   This  Section  does  not
13        apply to payments made for a public aid recipient.
14             (2)  Teaching.   This  Section  does  not apply to a
15        contract for personal services as  a  teacher  or  school
16        administrator between a member of the General Assembly or
17        his  or her spouse, or a State officer or employee or his
18        or her spouse, and any school district, public  community
19        college  district, or the State colleges and universities
20        and their governing boards.
21             (3)  Ministerial  duties.   This  Section  does  not
22        apply to a contract for personal  services  of  a  wholly
23        ministerial  character,  including  but  not  limited  to
24        services as a laborer, clerk, typist, stenographer, page,
25        bookkeeper,   receptionist,   or   telephone  switchboard
26        operator, made by a spouse or minor child of an  elective
27        or appointive State officer or employee or of a member of
28        the General Assembly.
29             (4)  Child  and  family services.  This Section does
30        not apply to payments made to a  member  of  the  General
31        Assembly,  a State officer or employee, his or her spouse
32        or minor child acting  as  a  foster  parent,  homemaker,
33        advocate,  or  volunteer  for  or in behalf of a child or
34        family served by the Department of  Children  and  Family
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 1        Services.
 2        (g)  Penalty.   Any  person  convicted  of a violation of
 3    this Section is guilty of a business  offense  and  shall  be
 4    fined not less than $1,000 nor more than $5,000.
 5        Section 50-20.  Negotiations.
 6        (a)  Prohibition.    Except as provided in Section 50-25,
 7    it is unlawful for any person employed in or on  a  continual
 8    contractual  relationship with any of the offices or agencies
 9    of State government to participate in  contract  negotiations
10    on   behalf   of   that  office  or  agency  with  any  firm,
11    partnership,  association,  or  corporation  with  whom  that
12    person has a contract for future employment or is negotiating
13    concerning possible future employment.
14        (b)  Penalty.   Any  person  violating  this  Section  is
15    guilty of a business offense and shall be fined not less than
16    $1,000 and not more than $5,000.
17        Section  50-25.   Exemptions.   The   Governor,   or   an
18    executive  ethics  board  or  commission  designated  by  the
19    Governor,  may  exempt named individuals or business from the
20    prohibitions of Section 50-5, 50-10, or 50-15  when,  in  the
21    discretion of the Governor or the ethics board or commission,
22    it  is  determined  that  the  public  interest in having the
23    individual in the service of the State outweighs  the  public
24    policy   evidenced  in  those  Sections.    An  exemption  is
25    effective only when it is filed with the Secretary  of  State
26    and  the  Comptroller  and includes a statement setting forth
27    the name of the individual and all the pertinent  facts  that
28    would  make that Section applicable, setting forth the reason
29    for the exemption, and declaring the individual exempted from
30    that Section.  Notice of each exemption shall be published.
31        Section 50-30.  Inducement.  Any  person  who  offers  or
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 1    pays  any  money  or  other  valuable  thing to any person to
 2    induce him or her not to bid  for  a  State  contract  or  as
 3    recompense  for  not having bid on a State contract is guilty
 4    of a Class 4 felony. Any person  who  accepts  any  money  or
 5    other  valuable thing for not bidding for a State contract or
 6    who withholds a bid in consideration of the promise  for  the
 7    payment of money or other valuable thing is guilty of a Class
 8    4 felony.
 9        Section   50-35.    Revolving  door  prohibition.   State
10    employees whose duties with the State were  directly  related
11    to  procurement  may  not, for a period of one year following
12    separation of service  with  the  employing  agency,  have  a
13    contract  with that agency, or engage in lobbying that agency
14    whether directly or as an employee or agent of another.
15        Section 50-40.  Disclosures by contractors and bidders.
16        (a)  All offers from responsive bidders or offerors  with
17    an  annual  value of more than $5,000 shall be accompanied by
18    disclosure of the  financial  interests  of  the  contractor,
19    bidder,  or  proposer.   The  financial  disclosure  of  each
20    successful  bidder  or  offeror  shall  become  part  of  the
21    publicly  available contract or procurement file.  The nature
22    and extent of the disclosure required by this  Section  shall
23    be established in rules formulated by the Board.
24        (b)  The  disclosure in subsection (a) is not intended to
25    prohibit or prevent any contract.  The disclosure is meant to
26    fully and publicly disclose any potential conflict.
27        Section  50-45.   Disclosures  by  State  employees   and
28    officers.
29        (a)  Contract  negotiations.  Any person participating in
30    the making of a contract, or who enters into a  contract,  on
31    behalf  of  an  office or agency of State government with the
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 1    knowledge that his or her spouse, child, parent,  or  sibling
 2    is  entitled  to  receive  (i)  more  than  7.5% of the total
 3    distributable income of the other contracting party  or  (ii)
 4    an  amount in excess of the salary of the Governor, whichever
 5    is lower,  or  in  which  that  child,  parent,  or  sibling,
 6    together  with  his  or  her  spouse  or  minor  children, is
 7    entitled to receive (i) more than 15%, in the  aggregate,  of
 8    the total distributable income of the other contracting party
 9    or  (ii)  an  amount  in  excess of 2 times the salary of the
10    Governor,  whichever  is  lower,  shall  immediately  file  a
11    written statement setting out the facts of  the  transaction.
12    The  statement shall be filed with the administrative head of
13    the office  or  agency  and  be  kept  available  for  public
14    inspection.  A person failing to file a statement or filing a
15    false  statement is guilty of a business offense and shall be
16    fined not less than $1,000 and not  more  than  $5,000.   Any
17    such  contract is contrary to public policy and may be voided
18    at the option of the State unless it is shown to  be  in  the
19    best   interests   of  the  State.   Moreover,  if  fraud  or
20    substantial monetary harm  to  the  State  results  from  the
21    nepotic element of the transaction, the government officer or
22    employee  involved  in  the  element  is  guilty of a Class A
23    misdemeanor.
24        (b)  Other positions and contracts.  Each State  employee
25    is  responsible  for  annually  notifying  his  or  her State
26    employer  of  contracts  held  by  the  employee  or  by  the
27    employee's spouse and minor children  and  of  other  payroll
28    positions  held  by  the  employee.  The State employee shall
29    notify  his  or  her  employer  of  any   changes   in   this
30    notification at the time the changes occur.
31        Section  50-50.  Identical bids.  Every State agency that
32    obtains 2 or more identical bids under this Code shall inform
33    the Attorney General in writing of those facts within 30 days
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 1    after the disposition of all bids received  in  response  for
 2    bids,  whether  by  the  awarding  of  the  contract or other
 3    action.  The Attorney General shall prescribe  the  form  and
 4    manner of notification.
 5        Section  50-55.   Reporting of anticompetitive practices.
 6    When  for  any  reason  collusion  or  other  anticompetitive
 7    practices are suspected among  any  bidders  or  offerors,  a
 8    notice  of  the  relevant  facts  shall be transmitted to the
 9    Attorney General.
10        Section 50-58.  Confidentiality.  The  chief  procurement
11    officer   or  any  State  purchasing  officer,  designee,  or
12    executive officer who willfully uses or  allows  the  use  of
13    specifications,   competitive   bid   documents,  proprietary
14    competitive information, proposals, contracts,  or  selection
15    information  to  compromise  the fairness or integrity of the
16    procurement, bidding, or contract process shall be subject to
17    discipline  up  to   and   including   immediate   dismissal,
18    regardless  of  the  Personnel  Code,  and may in addition be
19    subject to criminal prosecution.
20        Section 50-60.  Insider information.  It is unlawful  for
21    any  current or former elected or appointed State official or
22    State employee  to  knowingly  use  confidential  information
23    available  only  by  virtue  of that office or employment for
24    actual or anticipated personal gain  or  for  the  actual  or
25    anticipated personal gain of another person.
26        Section  50-65.   Supply  inventory.   Every State agency
27    shall inventory or stock no more  than  a  12-month  need  of
28    equipment,  supplies, commodities, articles, and other items,
29    except  as  otherwise  authorized  by  the   State   agency's
30    regulations.   Every  State  agency shall periodically review
HB1481 Engrossed            -65-               LRB9002279DNsb
 1    its inventory to ensure compliance with  this  Section.   If,
 2    upon review, an agency determines it has more than a 12-month
 3    supply  of  any  equipment,  supplies,  commodities, or other
 4    items,  the  agency  shall   undertake   transfers   of   the
 5    oversupplied  items  or  other  action  necessary to maintain
 6    compliance with this Section.  This Section shall  not  apply
 7    to  lifesaving medications, mechanical spare parts, and items
 8    for which the supplier requires a minimum order stipulation.
 9        Section 50-75.  Suspension and debarment.  Any contractor
10    may be suspended for violation of this Code or for failure to
11    conform to specifications or terms of delivery.    Suspension
12    shall  be  for cause and may be for a period of up to 2 years
13    at  the  discretion  of  the  applicable  State   procurement
14    officer.    Contractors  may  be  debarred in accordance with
15    rules promulgated by the Board or as  otherwise  provided  by
16    law.
17        Section  50-80.   Additional  provisions.   This  Code is
18    subject to applicable provisions of the following Acts:
19             (1)  Article 33E of the Criminal Code of 1961;
20             (2)  the Illinois Human Rights Act;
21             (3)  the Discriminatory Club Act;
22             (4)  the Illinois Governmental Ethics Act;
23             (5)  the State Prompt Payment Act;
24             (6)  the Public Officer Prohibited  Activities  Act;
25        and
26             (7)  the Drug Free Workplace Act.
27        Section 50-85.  Other violations.
28        (a)  The   chief   procurement   officer   or  any  State
29    purchasing officer or  designee  who  willfully  violates  or
30    allows  the  violation  of  this  Code  shall  be  subject to
31    discipline  up  to   and   including   immediate   dismissal,
HB1481 Engrossed            -66-               LRB9002279DNsb
 1    regardless of the Personnel Code.
 2        (b)  Except  as  otherwise provided in this Code, whoever
 3    violates this Code or  the  rules  promulgated  under  it  is
 4    guilty of a Class A misdemeanor.
 5                             ARTICLE 90
 6                      MISCELLANEOUS PROVISIONS
 7        Section  90-5.  References to repealed provisions.  After
 8    the effective  date  of  this  Act,  all  references  to  the
 9    provisions  of  law  repealed by this Act shall be construed,
10    where  necessary  and  appropriate,  as  references  to   the
11    Illinois Procurement Code.
12        Section  90-10.   Severability.  If any provision of this
13    Code or any application of it to any person  or  circumstance
14    is  held  invalid,  that  invalidity  shall  not affect other
15    provisions or applications of this Code  that  can  be  given
16    effect  without  the invalid provision or application, and to
17    this end the provisions of  this  Code  are  declared  to  be
18    severable.
19        Section  90-20.   Voidable contracts.  If any contract is
20    entered  into  or purchase or expenditure of funds is made in
21    violation of this Code or any other law, the contract may  be
22    declared   void   by   the  purchasing  officer,  or  may  be
23    terminated, ratified and affirmed, provided it is  determined
24    that  ratification is in the best interests of the State.  If
25    the contract is ratified and affirmed, it  shall  be  without
26    prejudice to the State's rights to any appropriate damages.
27                             ARTICLE 95
28                 AMENDATORY AND REPEALING PROVISIONS
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 1        Section  95-5.   The Governmental Joint Purchasing Act is
 2    amended by changing Section 3 as follows:
 3        (30 ILCS 525/3) (from Ch. 85, par. 1603)
 4        Sec. 3.  Any agreement of the  governmental  units  which
 5    desire to make joint purchases, one of the governmental units
 6    shall  conduct  the  letting  of  bids.  Where  the  State of
 7    Illinois is a party to  the  joint  purchase  agreement,  the
 8    Department  of  Central Management Services shall conduct the
 9    letting of bids. Expenses of such bid-letting may  be  shared
10    by  the participating governmental units in proportion to the
11    amount of personal property, supplies or services  each  unit
12    purchases.
13        When  the  State  of  Illinois  is  a  party to the joint
14    purchase agreement,  the  acceptance  of  bids  shall  be  in
15    accordance  with  the  Illinois  Procurement  Code  and rules
16    promulgated under that Code.  When the State of  Illinois  is
17    not  a  party to the joint purchase agreement, the acceptance
18    of bids shall be governed by the agreement.
19        The personal  property,  supplies  or  services  involved
20    shall   be   distributed   or   rendered   directly  to  each
21    governmental unit taking part in  the  purchase.  The  person
22    selling  the personal property, supplies or services may bill
23    each governmental unit separately for its proportionate share
24    of the cost of the personal property,  supplies  or  services
25    purchased.
26        The  credit  or liability of each governmental unit shall
27    remain separate and distinct. Disputes  between  bidders  and
28    governmental  units  shall  be resolved between the immediate
29    parties.
30    (Source: P.A. 87-860.)
31        (15 ILCS 405/11 rep.)
32        (15 ILCS 405/15 rep.)
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 1        Section 95-10.  The State Comptroller Act is  amended  by
 2    repealing Sections 11 and 15.
 3        (20 ILCS 5/29 rep.)
 4        (20 ILCS 5/30 rep.)
 5        (20 ILCS 405/35.7b rep.)
 6        (20 ILCS 405/67.01 rep.)
 7        (20 ILCS 405/67.04 rep.)
 8        Section 95-15.  The Civil Administrative Code of Illinois
 9    is  amended  by  repealing Sections 29, 30, 35.7b, 67.01, and
10    67.04.
11        (20 ILCS 1015/13 rep.)
12        Section 95-20.   The  Public  Employment  Office  Act  is
13    amended by repealing Section 13.
14        (30 ILCS 505/Act rep.)
15        Section 95-25.  The Illinois Purchasing Act is repealed.
16        (30 ILCS 510/Act rep.)
17        Section   95-30.   The  State  Paper  Purchasing  Act  is
18    repealed.
19        (30 ILCS 515/Act rep.)
20        Section 95-35.   The  State  Printing  Contracts  Act  is
21    repealed.
22        (30 ILCS 615/Act rep.)
23        Section   95-40.    The  State  Vehicle  Mileage  Act  is
24    repealed.
25                             ARTICLE 99
26                           EFFECTIVE DATE
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 1        Section  99-5.  Effective   date  and  transition.   This
 2    Article 99 takes effect  July  1,  1997.   Article  95  takes
 3    effect  July 1, 1998.  Articles 1 through 90 take effect July
 4    1, 1997 solely for the purpose of  allowing  the  Procurement
 5    Policy Board and State agencies designated under Article 5 to
 6    promulgate  rules to implement this Code.  Articles 1 through
 7    90, for all other purposes, take effect July 1, 1998.
HB1481 Engrossed            -70-               LRB9002279DNsb
 1                                INDEX
 2               Statutes amended in order of appearance
 3    New Act
 4    30 ILCS 525/3             from Ch. 85, par. 1603
 5    15 ILCS 405/11 rep.
 6    15 ILCS 405/15 rep.
 7    20 ILCS 5/29 rep.
 8    20 ILCS 5/30 rep.
 9    20 ILCS 405/35.7b rep.
10    20 ILCS 405/67.01 rep.
11    20 ILCS 405/67.04 rep.
12    20 ILCS 1015/13 rep.
13    30 ILCS 505/Act rep.
14    30 ILCS 510/Act rep.
15    30 ILCS 515/Act rep.
16    30 ILCS 615/Act rep.

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