State of Illinois
91st General Assembly
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91_HB4296

 
                                               LRB9111507JMdv

 1        AN ACT to amend the Illinois Procurement Code.

 2        Be  it  enacted  by  the People of the State of Illinois,
 3    represented in the General Assembly:

 4        Section 5.  The Illinois Procurement Code is  amended  by
 5    changing  Sections 1-10, 1-15.68, 20-10, 20-15, 20-25, 20-60,
 6    20-80, 30-15, 35-30, 40-25, and 50-35 as follows:

 7        (30 ILCS 500/1-10)
 8        Sec. 1-10.  Application.
 9        (a)  This Code applies only  to  procurements  for  which
10    contractors  were  first  solicited on or after July 1, 1998.
11    This Code shall not be construed  to  affect  or  impair  any
12    contract,  or any provision of a contract, entered into based
13    on a solicitation prior to the implementation  date  of  this
14    Code as described in Article 99, including but not limited to
15    any  covenant  entered into with respect to any revenue bonds
16    or similar instruments. All procurements for which  contracts
17    are  solicited  between the effective date of Articles 50 and
18    99 and July 1, 1998 shall be substantially in accordance with
19    this Code and its intent.
20        (b)  This Code shall apply regardless of  the  source  of
21    the  funds  with  which  the  contracts  are  paid, including
22    federal assistance moneys. This Code shall not apply to:
23             (1)  contracts between the State and  its  political
24        subdivisions  or  other  governments,  or  between  State
25        governmental  bodies  except  as specifically provided in
26        this Code.
27             (2)  grants.
28             (3)  purchase of care.
29             (4)  hiring of an individual as employee and not  as
30        an   independent   contractor,  whether  pursuant  to  an
31        employment code or policy or by  contract  directly  with
 
                            -2-                LRB9111507JMdv
 1        that individual.
 2             (5)  collective bargaining contracts.
 3             (6)  purchase of real estate.
 4             (7)  contracts  necessary to prepare for anticipated
 5        litigation,  enforcement  actions,   or   investigations,
 6        provided  that  the  chief  legal counsel to the Governor
 7        shall give his or her prior approval when  the  procuring
 8        agency   is  one  subject  to  the  jurisdiction  of  the
 9        Governor, and provided that the chief  legal  counsel  of
10        any  other  procuring  entity  subject to this Code shall
11        give his or her prior approval when the procuring  entity
12        is not one subject to the jurisdiction of the Governor.
13             (8)  contracts  for  services  to  Northern Illinois
14        University  by  a  person,  acting  as   an   independent
15        contractor,  who  is  qualified by education, experience,
16        and technical ability and is selected by negotiation  for
17        the  purpose  of providing non-credit educational service
18        activities or products by means of  specialized  programs
19        offered by the university.
20             (9)  contracts  for  entertainment  performances  or
21        intercollegiate athletic contests.
22             (10)  contracts  for services to a public university
23        by a person acting as an independent  contractor  who  is
24        qualified by education, experience, and technical ability
25        and  is  selected  by  negotiation  for  the  purpose  of
26        providing  non-credit  educational  service activities or
27        products by means of specialized programs offered by  the
28        public university.
29    (Source: P.A. 90-572, eff. date - See Sec. 99-5; 91-627, eff.
30    8-19-99.)

31        (30 ILCS 500/1-15.68)
32        Sec.  1-15.68.   Purchase  of  care.   "Purchase of care"
33    means a contract with a person for the furnishing of medical,
 
                            -3-                LRB9111507JMdv
 1    educational, psychiatric, vocational, rehabilitative, social,
 2    or human services directly to a  recipient  of  a  State  aid
 3    program  or  a recipient of services from a medical school or
 4    hospital  operated  by  a  public  university   or   from   a
 5    psychiatric,  vocational,  rehabilitative,  social,  or human
 6    services program operated by a public university.
 7    (Source: P.A. 90-572, eff. 2-6-98.)

 8        (30 ILCS 500/20-10)
 9        Sec. 20-10.  Competitive sealed bidding.
10        (a)  Conditions for use.  All contracts shall be  awarded
11    by competitive sealed bidding except as otherwise provided in
12    Section 20-5.
13        (b)  Invitation  for  bids.  An invitation for bids shall
14    be issued and shall include a purchase  description  and  the
15    material  contractual  terms and conditions applicable to the
16    procurement.
17        (c)  Public notice.  Public notice of the invitation  for
18    bids  shall be published in the Illinois Procurement Bulletin
19    at least 14 days before the date set in  the  invitation  for
20    the opening of bids.
21        (d)  Bid  opening.   Bids shall be opened publicly in the
22    presence of one or more  witnesses  at  the  time  and  place
23    designated  in  the  invitation  for  bids.  The name of each
24    bidder,  the  amount  of  each  bid,   and   other   relevant
25    information  as  may  be specified by rule shall be recorded.
26    After the award of the contract,  the  winning  bid  and  the
27    record  of  each  unsuccessful  bid  shall  be open to public
28    inspection.
29        (e)  Bid acceptance and bid evaluation.   Bids  shall  be
30    unconditionally  accepted  without  alteration or correction,
31    except as authorized in this Code.  Bids shall  be  evaluated
32    based  on  the  requirements  set forth in the invitation for
33    bids, which may include criteria to  determine  acceptability
 
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 1    such  as inspection, testing, quality, workmanship, delivery,
 2    and suitability for a  particular  purpose.   Those  criteria
 3    that   will  affect  the  bid  price  and  be  considered  in
 4    evaluation  for  award,  such  as  discounts,  transportation
 5    costs, and total or life cycle costs,  shall  be  objectively
 6    measurable.  The  invitation  for  bids  shall  set forth the
 7    evaluation criteria to be used.
 8        (f)  Correction or  withdrawal  of  bids.  Correction  or
 9    withdrawal  of  inadvertently  erroneous bids before or after
10    award, or cancellation of awards of contracts  based  on  bid
11    mistakes, shall be permitted in accordance with rules.  After
12    bid  opening, no changes in bid prices or other provisions of
13    bids prejudicial  to  the  interest  of  the  State  or  fair
14    competition  shall be permitted.  All decisions to permit the
15    correction or withdrawal of bids based on bid mistakes  shall
16    be  supported  by  written  determination  made  by  a  State
17    purchasing officer.
18        (g)  Award.    The   contract   shall   be  awarded  with
19    reasonable  promptness  by  written  notice  to  the   lowest
20    responsible   and  responsive  bidder  whose  bid  meets  the
21    requirements and criteria set forth  in  the  invitation  for
22    bids, except when a State purchasing officer determines it is
23    not  in  the  best  interest  of  the  State  and  by written
24    explanation  determines  another  bidder  shall  receive  the
25    award.  The  explanation  shall  appear  in  the  appropriate
26    volume  of  the  Illinois  Procurement  Bulletin.  The bidder
27    selected for award  of  a  contract,  except  for  those  not
28    exceeding  the  small  purchase  limits established by and in
29    accordance with Section 20-20, shall be  required  to  submit
30    for review prior to award a disclosure of financial interests
31    as  required  by  Section 50-35.  The financial disclosure of
32    the bidder awarded the contract  shall  become  part  of  the
33    publicly available contract or procurement file maintained by
34    the awarding State purchasing officer.
 
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 1        (h)  Multi-step  sealed  bidding.   When it is considered
 2    impracticable to initially prepare a purchase description  to
 3    support  an  award based on price, an invitation for bids may
 4    be issued requesting the submission of unpriced offers to  be
 5    followed  by  an invitation for bids limited to those bidders
 6    whose offers have been qualified under the criteria set forth
 7    in the first solicitation.
 8    (Source: P.A. 90-572, eff. date - See Sec. 99-5.)

 9        (30 ILCS 500/20-15)
10        Sec. 20-15.  Competitive sealed proposals.
11        (a)  Conditions for use.  When provided under  this  Code
12    or  under  rules, or when the purchasing agency determines in
13    writing that the use of competitive sealed bidding is  either
14    not  practicable or not advantageous to the State, a contract
15    may be entered into by competitive sealed proposals.
16        (b)  Request for proposals.  Proposals shall be solicited
17    through a request for proposals.
18        (c)  Public notice.  Public notice  of  the  request  for
19    proposals  shall  be  published  in  the Illinois Procurement
20    Bulletin at  least  14  days  before  the  date  set  in  the
21    invitation for the opening of proposals.
22        (d)  Receipt  of  proposals.   Proposals  shall be opened
23    publicly in the presence of one or more witnesses at the time
24    and place  designated  in  the  request  for  proposals,  but
25    proposals  shall be opened in a manner to avoid disclosure of
26    contents  to  competing  offerors  during  the   process   of
27    negotiation.   A  record  of  proposals shall be prepared and
28    shall be open for public inspection after contract award.
29        (e)  Evaluation  factors.   The  requests  for  proposals
30    shall state  the  relative  importance  of  price  and  other
31    evaluation factors.  Proposals shall be submitted in 2 parts:
32    the  first,  covering  items  except  price;  and the second,
33    covering price.  The first part of  all  proposals  shall  be
 
                            -6-                LRB9111507JMdv
 1    evaluated  and ranked independently of the second part of all
 2    proposals.
 3        (f)  Discussion with responsible offerors  and  revisions
 4    of  proposals.   As provided in the request for proposals and
 5    under rules, discussions may be  conducted  with  responsible
 6    offerors  who  submit  proposals  determined to be reasonably
 7    susceptible of being selected for award for  the  purpose  of
 8    clarifying   and   assuring   full   understanding   of   and
 9    responsiveness   to  the  solicitation  requirements.   Those
10    offerors shall be accorded  fair  and  equal  treatment  with
11    respect  to  any  opportunity  for discussion and revision of
12    proposals.  Revisions may be permitted after  submission  and
13    before  award  for  the  purpose  of obtaining best and final
14    offers.   In  conducting  discussions  there  shall   be   no
15    disclosure   of   any   information  derived  from  proposals
16    submitted by competing offerors.  If information is disclosed
17    to any  offeror,  it  shall  be  provided  to  all  competing
18    offerors.
19        (g)  Award.   Awards  shall  be  made  to the responsible
20    offeror whose proposal is determined in  writing  to  be  the
21    most  advantageous  to  the  State, taking into consideration
22    price and the evaluation factors set forth in the request for
23    proposals.  The contract file  shall  contain  the  basis  on
24    which the award is made. The respondent selected for award of
25    a contract, except for those not exceeding the small purchase
26    limits  established  by and in accordance with Section 20-20,
27    shall be required to submit  for  review  prior  to  award  a
28    disclosure  of  financial  interests  as  required by Section
29    50-35.  The financial disclosure of  the  successful  offeror
30    awarded  the  contract  shall  become  part  of  the publicly
31    available contract or  procurement  file  maintained  by  the
32    State purchasing officer.
33    (Source: P.A. 90-572, eff. date - See Sec. 99-5.)
 
                            -7-                LRB9111507JMdv
 1        (30 ILCS 500/20-25)
 2        Sec.  20-25.   Sole  source  procurements.  In accordance
 3    with standards set by rule, contracts may be awarded  without
 4    use of the specified method of source selection when there is
 5    only one economically feasible source for the item.  At least
 6    5  business  days  2 weeks before entering into a sole source
 7    contract, the purchasing agency shall publish in the Illinois
 8    Procurement Bulletin a notice of intent to do so along with a
 9    description of the item to be procured and the intended  sole
10    source contractor.
11    (Source: P.A. 90-572, eff. date - See Sec. 99-5.)

12        (30 ILCS 500/20-60)
13        Sec. 20-60.  Duration of contracts.
14        (a)  Maximum  duration.   A  contract may be entered into
15    for any period of time deemed to be in the best interests  of
16    the  State  but  not  exceeding  10  years or, with regard to
17    credit enhancements and other contracts that are necessary or
18    advantageous  to  the  State  in  connection  with   a   debt
19    financing,  for  the  term of the instrument of indebtedness.
20    The  length  of  a  lease  for  real  property   or   capital
21    improvements  shall  be  in accordance with the provisions of
22    Section 40-25. In  a  contract  for  the  purchase  of  group
23    insurance   coverage,   including  but  not  limited  to  (i)
24    purchases pursuant to the State Employees Group Insurance Act
25    of 1971 or Section  405-105  of  the  Department  of  Central
26    Management  Services  Law of the Civil Administrative Code of
27    Illinois (20 ILCS 405/405-105) and (ii)  purchases  of  group
28    insurance  coverage by public universities for their students
29    or employees and dependents, when  the  original  procurement
30    was  for  an initial term plus renewals, the renewal rate may
31    be negotiated annually without competitive selection based on
32    actuarial factors, including the prior year's experience.
33        (b)  Subject to appropriation.   All  contracts  made  or
 
                            -8-                LRB9111507JMdv
 1    entered  into  and  to  be paid from State appropriated funds
 2    shall  recite  that  they  are  subject  to  termination  and
 3    cancellation in any year for which the General Assembly fails
 4    to make an appropriation to make payments under the terms  of
 5    the contract.
 6    (Source: P.A. 90-572, eff. date - See Sec. 99-5.)

 7        (30 ILCS 500/20-80)
 8        Sec. 20-80.  Contract files.
 9        (a)  Written  determinations.  All written determinations
10    required under this Article shall be placed in  the  contract
11    file maintained by the chief procurement officer.
12        (b)  Filing   with   Comptroller.   Whenever  a  contract
13    liability, except for:
14             (1)  contracts paid from personal services, or
15             (2)  contracts between the State and  its  employees
16        to  defer  compensation  in accordance with Article 24 of
17        the Illinois Pension Code
18    exceeding $10,000 is incurred by any State agency, a copy  of
19    the  contract,  purchase  order, or lease shall be filed with
20    the  Comptroller,  or  at  repositories  identified  by   the
21    Comptroller for contracts not funded by State appropriations,
22    within  15 days thereafter.  Any cancellation or modification
23    to any such  contract  liability  shall  be  filed  with  the
24    Comptroller  or  appropriate repository within 15 days of its
25    execution.
26        (c)  Late filing affidavit.  When  a  contract,  purchase
27    order,  or lease required to be filed by this Section has not
28    been filed within 30 days of execution, the Comptroller shall
29    refuse to issue a warrant for payment  thereunder  until  the
30    agency  files  with  the  Comptroller  the contract, purchase
31    order, or  lease  and  an  affidavit,  signed  by  the  chief
32    executive  officer  of  the  agency  or  his or her designee,
33    setting forth an explanation of why  the  contract  liability
 
                            -9-                LRB9111507JMdv
 1    was  not  filed  within 30 days of execution.  A copy of this
 2    affidavit shall be filed with the Auditor General.
 3        (d)  Professional and artistic  services  contracts.   No
 4    voucher  shall  be submitted to the Comptroller for a warrant
 5    to be drawn for the payment of money from the State  treasury
 6    or from other funds held by the State Treasurer on account of
 7    any  contract for services involving professional or artistic
 8    skills involving an expenditure of more than $5,000  for  the
 9    same  type  of service at the same location during any fiscal
10    year unless the contract is reduced  to  writing  before  the
11    services  are performed and filed with the Comptroller.  When
12    a contract for professional or artistic skills in  excess  of
13    $5,000  was  not  reduced to writing before the services were
14    performed, the Comptroller shall refuse to  issue  a  warrant
15    for  payment  for  the  services until the State agency files
16    with the Comptroller:
17             (1)  a written contract covering the services, and
18             (2)  an affidavit, signed  by  the  chief  executive
19        officer  of  the  State  agency  or  his or her designee,
20        stating that the services for which payment is being made
21        were agreed to before commencement of  the  services  and
22        setting  forth an explanation of why the contract was not
23        reduced to writing before the services commenced.
24    A copy of this affidavit shall  be  filed  with  the  Auditor
25    General.    The  Comptroller  shall  maintain professional or
26    artistic  service  contracts   filed   under   this   Section
27    separately from other filed contracts.
28        (e)  Method  of  source  selection.   When  a contract is
29    filed  with  the  Comptroller   under   this   Section,   the
30    Comptroller's  file  shall  identify  the  method  of  source
31    selection used in obtaining the contract.
32    (Source: P.A. 90-572, eff. date - See Sec. 99-5.)

33        (30 ILCS 500/30-15)
 
                            -10-               LRB9111507JMdv
 1        Sec. 30-15.  Method of source selection.
 2        (a)  Competitive  sealed  bidding.  Except as provided in
 3    subsections (b), (c), and (d) and Sections 20-20, 20-25,  and
 4    20-30,  and  30-35, all State construction contracts shall be
 5    procured by competitive sealed  bidding  in  accordance  with
 6    Section 20-10.
 7        (b)  Other  methods.  The Capital Development Board shall
 8    establish by rule construction purchases  that  may  be  made
 9    without  competitive  sealed bidding and the most competitive
10    alternate method of source selection that shall be used.
11        (c)  Construction-related  professional  services.    All
12    construction-related professional services contracts shall be
13    awarded   in   accordance   with   the   provisions   of  the
14    Architectural, Engineering, and Land Surveying Qualifications
15    Based Selection Act.   "Professional  services"  means  those
16    services  within  the  scope of the practice of architecture,
17    professional   engineering,   structural   engineering,    or
18    registered  land  surveying,  as  defined by the laws of this
19    State.
20        (d)  Correctional     facilities.      Remodeling     and
21    rehabilitation  projects  at  correctional  facilities  under
22    $25,000 funded from the General Revenue Fund are exempt  from
23    the   provisions   of   this   Article.   The  Department  of
24    Corrections may  use  inmate  labor  for  the  remodeling  or
25    rehabilitation  of  correctional facilities on those projects
26    under $25,000 funded from the General Revenue Fund.
27    (Source: P.A. 90-572, eff. date - See Sec. 99-5.)

28        (30 ILCS 500/35-30)
29        Sec. 35-30.  Awards.
30        (a)  All State contracts for  professional  and  artistic
31    services,  except  as  provided  in  this  Section,  shall be
32    awarded using the competitive request  for  proposal  process
33    outlined in this Section.
 
                            -11-               LRB9111507JMdv
 1        (b)  For  each  contract  offered,  the chief procurement
 2    officer, State purchasing officer, or  his  or  her  designee
 3    shall   use   the  appropriate  standard  solicitation  forms
 4    available from the Department of Central Management  Services
 5    or the higher education chief procurement officer.
 6        (c)  Prepared  forms shall be submitted to the Department
 7    of Central Management Services or the higher education  chief
 8    procurement    officer,   whichever   is   appropriate,   for
 9    publication  in  its  Illinois   Procurement   Bulletin   and
10    circulation to the Department of Central Management Services'
11    or  the  higher education chief procurement officer's list of
12    prequalified vendors.  Notice of the  offer  or  request  for
13    proposal shall appear at least 14 days before the response to
14    the offer is due.
15        (d)  All   interested   respondents  shall  return  their
16    responses to the Department of Central Management Services or
17    the higher education chief procurement officer, whichever  is
18    appropriate,    which   shall  open  and  record  them.   The
19    Department or higher education chief procurement officer then
20    shall forward the responses, together with any information it
21    has available about the qualifications and other  State  work
22    of the respondents.
23        (e)  After   evaluation,   ranking,  and  selection,  the
24    successful respondent for a  contract,  other  than  a  small
25    purchase  as  provided  in  Section  35-35,  shall  submit  a
26    disclosure  of  financial  interests  as  required by Section
27    50-35.  The financial disclosure of the successful respondent
28    shall become part of the  publicly  available  contract  file
29    maintained  by the appropriate chief procurement officer. The
30    responsible  chief  procurement  officer,  State   purchasing
31    officer,  or  his or her designee shall notify the Department
32    of Central Management Services or the higher education  chief
33    procurement   officer,   whichever  is  appropriate,  of  the
34    successful respondent and shall forward a copy of the  signed
 
                            -12-               LRB9111507JMdv
 1    contract  for  the  Department's  or  higher  education chief
 2    procurement  officer's  file.   The  Department   or   higher
 3    education  chief  procurement officer shall publish the names
 4    of the responsible  procurement  decision-maker,  the  agency
 5    letting  the  contract, the successful respondent, a contract
 6    reference,  and  value  of  the  let  contract  in  the  next
 7    appropriate volume of the Illinois Procurement Bulletin.
 8        (f)  For all professional  and  artistic  contracts  with
 9    annualized value that exceeds $25,000, evaluation and ranking
10    by  price  are  required.   Any  chief procurement officer or
11    State purchasing officer, but not their designees, may select
12    an offeror other than the lowest bidder  by  price.   In  any
13    case,  when  the  contract exceeds the $25,000 threshhold and
14    the lowest bidder is  not  selected,  the  chief  procurement
15    officer   or  the  State  purchasing  officer  shall  forward
16    together with the contract notice of who the low  bidder  was
17    and  a written decision as to why another was selected to the
18    Department of  Central  Management  Services  or  the  higher
19    education    chief    procurement   officer,   whichever   is
20    appropriate.    The  Department  or  higher  education  chief
21    procurement officer shall publish as provided  in  subsection
22    (e)  of  Section 35-30, but shall include notice of the chief
23    procurement officer's or State purchasing  officer's  written
24    decision.
25        (g)  The  Department  of  Central Management Services and
26    higher education chief procurement officer may  each  refine,
27    but  not  contradict,  this Section by promulgating rules for
28    submission to the Procurement Policy Board and  then  to  the
29    Joint  Committee  on  Administrative  Rules.   Any refinement
30    shall be based  on  the  principles  and  procedures  of  the
31    federal  Architect-Engineer  Selection Law, Public Law 92-582
32    Brooks Act, and  the  Architectural,  Engineering,  and  Land
33    Surveying  Qualifications  Based  Selection  Act; except that
34    pricing shall be an integral part of the selection process.
 
                            -13-               LRB9111507JMdv
 1    (Source: P.A. 90-572, eff. date - See Sec. 99-5.)

 2        (30 ILCS 500/40-25)
 3        Sec. 40-25.  Length of leases.
 4        (a)  Maximum term.  Leases shall be for  a  term  not  to
 5    exceed  10  years  and  shall include a termination option in
 6    favor of the State after 5 years. Upon the recommendation  of
 7    the  chief  procurement  officer  and  approval by the Board,
 8    leases paid from other than State appropriated funds  may  be
 9    for a term of up to 25 years.
10        (b)  Renewal.   Leases  may include a renewal option.  An
11    option to renew may be exercised only when a State purchasing
12    officer determines in writing that renewal  is  in  the  best
13    interest  of  the  State  and  notice  of the exercise of the
14    option  is  published  in  the  appropriate  volume  of   the
15    Procurement  Bulletin  at least 60 days prior to the exercise
16    of the option.
17        (c)  Subject to  appropriation.   All  leases  paid  from
18    State  appropriations  shall  recite that they are subject to
19    termination and  cancellation  in  any  year  for  which  the
20    General  Assembly  fails  to  make  an  appropriation to make
21    payments under the terms of the lease.
22    (Source: P.A. 90-572, eff. date - See Sec. 99-5.)

23        (30 ILCS 500/50-35)
24        Sec.  50-35.  Disclosure  and  potential   conflicts   of
25    interest.
26        (a)    The  disclosure of financial interests required by
27    Sections 20-10(g), 20-15(g) and 35-30(e) of this  Code  shall
28    be  made  regarding  any person whose ownership or beneficial
29    ownership interest in the potential contractor, or in another
30    entity  owning  and  controlling  the  potential  contractor,
31    exceeds 5% or results in an annual distribution of profits or
32    income, without regard to  the  manner  of  distribution,  in
 
                            -14-               LRB9111507JMdv
 1    excess  of  $150,000,  whichever  is  less.  If the potential
 2    contractor is a publicly traded entity subject to federal 10K
 3    reporting, it may submit its 10K disclosure in place  of  the
 4    prescribed  disclosure.  If  the  potential  contractor  is a
 5    privately  held  entity  that  is  exempt  from  federal  10k
 6    reporting but has more than 400 shareholders, it  may  submit
 7    the  information  that  federal  10k  reporting companies are
 8    required to report under 17 CFR 229.401 and list the names of
 9    any person or entity holding any ownership share that  is  in
10    excess  of  5%  in  place  of  the prescribed disclosure. For
11    purposes of valuing the ownership interest level  subject  to
12    disclosure,  the  value  of  interests held in Employee Stock
13    Ownership Plans (ESOP) or other retirement plans qualified by
14    the United States Internal Revenue Service shall be excluded.
15    The responsible chief procurement officer may establish  such
16    procedures  as  may  be required to provide for the efficient
17    submission,  effective  review,  and  proper   retention   of
18    disclosure  information,  including  but  not  limited to the
19    incorporation   of   the   disclosure   process   into    any
20    prequalification    procedure    established   to   determine
21    contractor responsibility applicable to  the  contract  being
22    let  or offered.  Each July 1, the annual distribution amount
23    established in this Section shall be adjusted  for  inflation
24    as  determined  by  application of the percentage of increase
25    determined by the United States Department of  Labor  in  the
26    Consumer  Price Index for all Urban Consumers, rounded to the
27    nearest $100. All offers from responsive bidders or  offerors
28    with   an   annual  value  of  more  than  $10,000  shall  be
29    accompanied by disclosure of the financial interests  of  the
30    contractor,  bidder, or proposer. The financial disclosure of
31    each successful bidder or offeror shall become  part  of  the
32    publicly available contract or procurement file maintained by
33    the appropriate chief procurement officer.
34        (b)  Disclosure  by  the  responsive  bidders or offerors
 
                            -15-               LRB9111507JMdv
 1    shall include any ownership or distributive income share that
 2    is in excess of 5%, or an amount  greater  than  60%  of  the
 3    annual  salary  of the Governor, of the bidding entity or its
 4    parent entity, whichever is less, unless  the  contractor  or
 5    bidder (i) is a publicly traded entity subject to Federal 10K
 6    reporting,  in which case it may submit its 10K disclosure in
 7    place of the prescribed disclosure, or (ii)  is  a  privately
 8    held entity that is exempt from Federal 10k reporting but has
 9    more  than  400 shareholders, in which case it may submit the
10    information that Federal 10k reporting companies are required
11    to report under 17 CFR 229.401 and  list  the  names  of  any
12    person  or  entity  holding  any  ownership  share that is in
13    excess of 5% in place of the prescribed disclosure.  The form
14    of disclosure and procedures for submitting disclosures shall
15    be prescribed by the applicable chief procurement officer and
16    must include at least the names,  addresses,  and  dollar  or
17    proportionate share of ownership of each person identified in
18    this  Section,  their  instrument  of ownership or beneficial
19    relationship,  and  notice  of  any  potential  conflict   of
20    interest  resulting  from the current ownership or beneficial
21    relationship  of  each  person  identified  in  this  Section
22    having, in addition, any of the following relationships:
23             (1)  State employment, currently or in the  previous
24        3 years, including contractual employment for personal of
25        services.
26             (2)  State  employment  of  spouse,  father, mother,
27        son, or daughter, including  contractual  employment  for
28        services in the previous 2 years.
29             (3)  Elective status; the holding of elective office
30        of  the  State  of Illinois, the government of the United
31        States, any unit of local government  authorized  by  the
32        Constitution  of the State of Illinois or the statutes of
33        the State of Illinois currently  or  in  the  previous  3
34        years.
 
                            -16-               LRB9111507JMdv
 1             (4)  Relationship  to anyone holding elective office
 2        currently or in the previous  2  years;  spouse,  father,
 3        mother, son, or daughter.
 4             (5)  Appointive   office;   the   holding   of   any
 5        appointive  government  office  of the State of Illinois,
 6        the United States  of  America,  or  any  unit  of  local
 7        government authorized by the Constitution of the State of
 8        Illinois  or the statutes of the State of Illinois, which
 9        office entitles the holder to compensation in  excess  of
10        expenses   incurred  in  the  discharge  of  that  office
11        currently or in the previous 3 years.
12             (6)  Relationship  to  anyone   holding   appointive
13        office  currently  or  in  the  previous 2 years; spouse,
14        father, mother, son, or daughter.
15             (7)  Employment, currently  or  in  the  previous  3
16        years,  as  or  by  any  registered lobbyist of the State
17        government.
18             (8)  Relationship  to  anyone  who  is  or   was   a
19        registered  lobbyist  in  the  previous  2 years; spouse,
20        father, mother, son, or daughter.
21             (9)  Compensated employment,  currently  or  in  the
22        previous   3   years,   by  any  registered  election  or
23        re-election committee registered with  the  Secretary  of
24        State  or  any  county clerk in the State of Illinois, or
25        any political action committee registered with either the
26        Secretary of State or the Federal Board of Elections.
27             (10)  Relationship  to   anyone;   spouse,   father,
28        mother,  son,  or  daughter;  who is or was a compensated
29        employee in the last 2 years of any  registered  election
30        or re-election committee registered with the Secretary of
31        State  or  any  county clerk in the State of Illinois, or
32        any political action committee registered with either the
33        Secretary of State or the Federal Board of Elections.
34        (c)  The disclosure in subsection (b) is not intended  to
 
                            -17-               LRB9111507JMdv
 1    prohibit or prevent any contract.  The disclosure is meant to
 2    fully  and  publicly  disclose  any potential conflict to the
 3    chief procurement officers, State purchasing officers,  their
 4    designees,  and  executive  officers  so  they may adequately
 5    discharge their duty to protect the State.
 6        (d)  In the case of any contract for personal services in
 7    excess of $50,000; any contract competitively bid  in  excess
 8    of  $250,000;  any other contract in excess of $50,000; or as
 9    part of a prequalification procedure established for any such
10    contract or category of contracts, when  a  potential  for  a
11    conflict of interest is identified, discovered, or reasonably
12    suspected it shall be reviewed and commented on in writing by
13    the  Governor  of  the  State of Illinois, or by an executive
14    ethics board or commission he or she  might  designate.   The
15    comment   shall   be   returned   to  the  responsible  chief
16    procurement officer who must rule in writing whether to  void
17    or  allow  the contract, bid, offer, or proposal weighing the
18    best interest of the State  of  Illinois.   The  comment  and
19    determination  shall  become a publicly available part of the
20    contract, bid, or proposal, or prequalification file. Once  a
21    potential   conflict   of  interest  has  been  reviewed  and
22    commented  upon  by  the  Governor  or  designated  board  or
23    commission, and the responsible chief procurement officer has
24    ruled  thereon,  the  comment  and  determination  shall   be
25    applicable  to  subsequent,  substantially  similar  types of
26    contracts with the same contractor without  need  of  further
27    review   and   comment,   provided   the   responsible  chief
28    procurement officer certifies to the Governor  or  designated
29    board  or  commission,  prior  to  award  of  any  subsequent
30    contract,  that  there  has  been  no  material change in the
31    disclosures made by the potential  contractor  and  that  all
32    material  information previously submitted for review remains
33    unchanged.
34        (e)  These threshholds and disclosure do not relieve  the
 
                            -18-               LRB9111507JMdv
 1    chief  procurement  officer, the State purchasing officer, or
 2    their designees from reasonable care and  diligence  for  any
 3    contract,  bid,  offer,  or  proposal.  The chief procurement
 4    officer, the State purchasing  officer,  or  their  designees
 5    shall   be  responsible  for  using  any  publicly  available
 6    information submitted to  or  maintained  by  them  or  their
 7    respective agencies or of which they otherwise have knowledge
 8    to  discover  an  individual  reasonably  known  and publicly
 9    available information to discover any  undisclosed  potential
10    conflict  of interest and act to protect the best interest of
11    the State of Illinois.
12        (f)  Inadvertent or accidental failure to fully  disclose
13    shall  render  the  contract,  bid, proposal, or relationship
14    voidable by the chief procurement officer if he or she  deems
15    it  in the best interest of the State of Illinois and, at his
16    or her discretion, may  be  cause  for  barring  from  future
17    contracts,  bids,  proposals, or relationships with the State
18    for a period of up to 2 years.
19        (g)  Intentional,  willful,  or   material   failure   to
20    disclose   shall  render  the  contract,  bid,  proposal,  or
21    relationship voidable by the chief procurement officer if  he
22    or she deems it in the best interest of the State of Illinois
23    and  shall  result  in debarment from future contracts, bids,
24    proposals, or relationships for a period of not less  than  2
25    years  and  not  more  than  10 years.  Reinstatement after 2
26    years and before 10 years must be reviewed and  commented  on
27    in writing by the Governor of the State of Illinois, or by an
28    executive   ethics  board  or  commission  he  or  she  might
29    designate.  The comment shall be returned to the  responsible
30    chief  procurement  officer  who must rule in writing whether
31    and when to reinstate.
32        (h)  In addition, upon request of the  chief  procurement
33    officer  or  State  purchasing officer, all disclosures shall
34    note any  other  current  or  pending  contracts,  proposals,
 
                            -19-               LRB9111507JMdv
 1    leases,   or  other  ongoing  procurement  relationships  the
 2    bidding, proposing, or offering entity  has  with  any  other
 3    unit  of State government and shall clearly identify the unit
 4    and the contract, proposal, lease, or other relationship.
 5    (Source: P.A. 90-572, eff. 2-6-98; 91-146, eff. 7-16-99.)

 6        Section 99.  Effective date.  This Act takes effect  upon
 7    becoming law.

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