101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020
SB1951

 

Introduced 2/15/2019, by Sen. Michael E. Hastings

 

SYNOPSIS AS INTRODUCED:
 
30 ILCS 500/1-10
30 ILCS 500/1-12
30 ILCS 500/1-13

    Amends the Illinois Procurement Code. Provides that for contracts with an annual value of more than $100,000 (currently, all contracts) entered into under an exemption, each State agency shall post to the appropriate procurement bulletin the name of the contractor, a description of the supply or service provided, the total amount of the contract, the term of the contract, and the exception to the Code utilized. Provides that notice of each contract with an annual value of more than $100,000 (currently, all contracts) entered into by a State agency that is related to the procurement of artistic or musical goods and services shall be published in the Illinois Procurement Bulletin within 14 calendar days after contract execution. Provides that notice of each contract with an annual value of more than $100,000 (currently, all contracts) entered into by a public institution of higher education that is related to the procurement of specified goods and services shall be published in the Procurement Bulletin within 14 calendar days after contract execution.


LRB101 10717 RJF 55829 b

 

 

A BILL FOR

 

SB1951LRB101 10717 RJF 55829 b

1    AN ACT concerning finance.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Illinois Procurement Code is amended by
5changing Sections 1-10, 1-12, and 1-13 as follows:
 
6    (30 ILCS 500/1-10)
7    Sec. 1-10. Application.
8    (a) This Code applies only to procurements for which
9bidders, offerors, potential contractors, or contractors were
10first solicited on or after July 1, 1998. This Code shall not
11be construed to affect or impair any contract, or any provision
12of a contract, entered into based on a solicitation prior to
13the implementation date of this Code as described in Article
1499, including but not limited to any covenant entered into with
15respect to any revenue bonds or similar instruments. All
16procurements for which contracts are solicited between the
17effective date of Articles 50 and 99 and July 1, 1998 shall be
18substantially in accordance with this Code and its intent.
19    (b) This Code shall apply regardless of the source of the
20funds with which the contracts are paid, including federal
21assistance moneys. This Code shall not apply to:
22        (1) Contracts between the State and its political
23    subdivisions or other governments, or between State

 

 

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1    governmental bodies, except as specifically provided in
2    this Code.
3        (2) Grants, except for the filing requirements of
4    Section 20-80.
5        (3) Purchase of care, except as provided in Section
6    5-30.6 of the Illinois Public Aid Code and this Section.
7        (4) Hiring of an individual as employee and not as an
8    independent contractor, whether pursuant to an employment
9    code or policy or by contract directly with that
10    individual.
11        (5) Collective bargaining contracts.
12        (6) Purchase of real estate, except that notice of this
13    type of contract with a value of more than $25,000 must be
14    published in the Procurement Bulletin within 10 calendar
15    days after the deed is recorded in the county of
16    jurisdiction. The notice shall identify the real estate
17    purchased, the names of all parties to the contract, the
18    value of the contract, and the effective date of the
19    contract.
20        (7) Contracts necessary to prepare for anticipated
21    litigation, enforcement actions, or investigations,
22    provided that the chief legal counsel to the Governor shall
23    give his or her prior approval when the procuring agency is
24    one subject to the jurisdiction of the Governor, and
25    provided that the chief legal counsel of any other
26    procuring entity subject to this Code shall give his or her

 

 

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1    prior approval when the procuring entity is not one subject
2    to the jurisdiction of the Governor.
3        (8) (Blank).
4        (9) Procurement expenditures by the Illinois
5    Conservation Foundation when only private funds are used.
6        (10) (Blank).
7        (11) Public-private agreements entered into according
8    to the procurement requirements of Section 20 of the
9    Public-Private Partnerships for Transportation Act and
10    design-build agreements entered into according to the
11    procurement requirements of Section 25 of the
12    Public-Private Partnerships for Transportation Act.
13        (12) Contracts for legal, financial, and other
14    professional and artistic services entered into on or
15    before December 31, 2018 by the Illinois Finance Authority
16    in which the State of Illinois is not obligated. Such
17    contracts shall be awarded through a competitive process
18    authorized by the Board of the Illinois Finance Authority
19    and are subject to Sections 5-30, 20-160, 50-13, 50-20,
20    50-35, and 50-37 of this Code, as well as the final
21    approval by the Board of the Illinois Finance Authority of
22    the terms of the contract.
23        (13) Contracts for services, commodities, and
24    equipment to support the delivery of timely forensic
25    science services in consultation with and subject to the
26    approval of the Chief Procurement Officer as provided in

 

 

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1    subsection (d) of Section 5-4-3a of the Unified Code of
2    Corrections, except for the requirements of Sections
3    20-60, 20-65, 20-70, and 20-160 and Article 50 of this
4    Code; however, the Chief Procurement Officer may, in
5    writing with justification, waive any certification
6    required under Article 50 of this Code. For any contracts
7    for services which are currently provided by members of a
8    collective bargaining agreement, the applicable terms of
9    the collective bargaining agreement concerning
10    subcontracting shall be followed.
11        On and after January 1, 2019, this paragraph (13),
12    except for this sentence, is inoperative.
13        (14) Contracts for participation expenditures required
14    by a domestic or international trade show or exhibition of
15    an exhibitor, member, or sponsor.
16        (15) Contracts with a railroad or utility that requires
17    the State to reimburse the railroad or utilities for the
18    relocation of utilities for construction or other public
19    purpose. Contracts included within this paragraph (15)
20    shall include, but not be limited to, those associated
21    with: relocations, crossings, installations, and
22    maintenance. For the purposes of this paragraph (15),
23    "railroad" means any form of non-highway ground
24    transportation that runs on rails or electromagnetic
25    guideways and "utility" means: (1) public utilities as
26    defined in Section 3-105 of the Public Utilities Act, (2)

 

 

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1    telecommunications carriers as defined in Section 13-202
2    of the Public Utilities Act, (3) electric cooperatives as
3    defined in Section 3.4 of the Electric Supplier Act, (4)
4    telephone or telecommunications cooperatives as defined in
5    Section 13-212 of the Public Utilities Act, (5) rural water
6    or waste water systems with 10,000 connections or less, (6)
7    a holder as defined in Section 21-201 of the Public
8    Utilities Act, and (7) municipalities owning or operating
9    utility systems consisting of public utilities as that term
10    is defined in Section 11-117-2 of the Illinois Municipal
11    Code.
12        (16) Procurement expenditures necessary for the
13    Department of Public Health to provide the delivery of
14    timely newborn screening services in accordance with the
15    Newborn Metabolic Screening Act.
16        (17) (16) Procurement expenditures necessary for the
17    Department of Agriculture, the Department of Financial and
18    Professional Regulation, the Department of Human Services,
19    and the Department of Public Health to implement the
20    Compassionate Use of Medical Cannabis Pilot Program and
21    Opioid Alternative Pilot Program requirements and ensure
22    access to medical cannabis for patients with debilitating
23    medical conditions in accordance with the Compassionate
24    Use of Medical Cannabis Pilot Program Act.
25    Notwithstanding any other provision of law, for contracts
26with an annual value of more than $100,000 entered into on or

 

 

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1after October 1, 2017 under an exemption provided in any
2paragraph of this subsection (b), except paragraph (1), (2), or
3(5), each State agency shall post to the appropriate
4procurement bulletin the name of the contractor, a description
5of the supply or service provided, the total amount of the
6contract, the term of the contract, and the exception to the
7Code utilized. The chief procurement officer shall submit a
8report to the Governor and General Assembly no later than
9November 1 of each year that shall include, at a minimum, an
10annual summary of the monthly information reported to the chief
11procurement officer.
12    (c) This Code does not apply to the electric power
13procurement process provided for under Section 1-75 of the
14Illinois Power Agency Act and Section 16-111.5 of the Public
15Utilities Act.
16    (d) Except for Section 20-160 and Article 50 of this Code,
17and as expressly required by Section 9.1 of the Illinois
18Lottery Law, the provisions of this Code do not apply to the
19procurement process provided for under Section 9.1 of the
20Illinois Lottery Law.
21    (e) This Code does not apply to the process used by the
22Capital Development Board to retain a person or entity to
23assist the Capital Development Board with its duties related to
24the determination of costs of a clean coal SNG brownfield
25facility, as defined by Section 1-10 of the Illinois Power
26Agency Act, as required in subsection (h-3) of Section 9-220 of

 

 

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1the Public Utilities Act, including calculating the range of
2capital costs, the range of operating and maintenance costs, or
3the sequestration costs or monitoring the construction of clean
4coal SNG brownfield facility for the full duration of
5construction.
6    (f) (Blank).
7    (g) (Blank).
8    (h) This Code does not apply to the process to procure or
9contracts entered into in accordance with Sections 11-5.2 and
1011-5.3 of the Illinois Public Aid Code.
11    (i) Each chief procurement officer may access records
12necessary to review whether a contract, purchase, or other
13expenditure is or is not subject to the provisions of this
14Code, unless such records would be subject to attorney-client
15privilege.
16    (j) This Code does not apply to the process used by the
17Capital Development Board to retain an artist or work or works
18of art as required in Section 14 of the Capital Development
19Board Act.
20    (k) This Code does not apply to the process to procure
21contracts, or contracts entered into, by the State Board of
22Elections or the State Electoral Board for hearing officers
23appointed pursuant to the Election Code.
24    (l) This Code does not apply to the processes used by the
25Illinois Student Assistance Commission to procure supplies and
26services paid for from the private funds of the Illinois

 

 

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1Prepaid Tuition Fund. As used in this subsection (l), "private
2funds" means funds derived from deposits paid into the Illinois
3Prepaid Tuition Trust Fund and the earnings thereon.
4(Source: P.A. 99-801, eff. 1-1-17; 100-43, eff. 8-9-17;
5100-580, eff. 3-12-18; 100-757, eff. 8-10-18; 100-1114, eff.
68-28-18; revised 10-18-18.)
 
7    (30 ILCS 500/1-12)
8    Sec. 1-12. Applicability to artistic or musical services.
9    (a) This Code shall not apply to procurement expenditures
10necessary to provide artistic or musical services,
11performances, or theatrical productions held at a venue
12operated or leased by a State agency.
13    (b) Notice of each contract with an annual value of more
14than $100,000 entered into by a State agency that is related to
15the procurement of goods and services identified in this
16Section shall be published in the Illinois Procurement Bulletin
17within 14 calendar days after contract execution. The chief
18procurement officer shall prescribe the form and content of the
19notice. Each State agency shall provide the chief procurement
20officer, on a monthly basis, in the form and content prescribed
21by the chief procurement officer, a report of contracts that
22are related to the procurement of supplies and services
23identified in this Section. At a minimum, this report shall
24include the name of the contractor, a description of the supply
25or service provided, the total amount of the contract, the term

 

 

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1of the contract, and the exception to the Code utilized. A copy
2of any or all of these contracts shall be made available to the
3chief procurement officer immediately upon request. The chief
4procurement officer shall submit a report to the Governor and
5General Assembly no later than November 1 of each year that
6shall include, at a minimum, an annual summary of the monthly
7information reported to the chief procurement officer.
8    (c) (Blank).
9    (d) The General Assembly finds and declares that:
10        (1) This amendatory Act of the 100th General Assembly
11    manifests the intention of the General Assembly to remove
12    the repeal of this Section.
13        (2) This Section was originally enacted to protect,
14    promote, and preserve the general welfare. Any
15    construction of this Section that results in the repeal of
16    this Section on December 31, 2016 would be inconsistent
17    with the manifest intent of the General Assembly and
18    repugnant to the context of this Code.
19    It is hereby declared to have been the intent of the
20General Assembly that this Section not be subject to repeal on
21December 31, 2016.
22    This Section shall be deemed to have been in continuous
23effect since August 3, 2012 (the effective date of Public Act
2497-895), and it shall continue to be in effect henceforward
25until it is otherwise lawfully repealed. All previously enacted
26amendments to this Section taking effect on or after December

 

 

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131, 2016, are hereby validated.
2    All actions taken in reliance on or pursuant to this
3Section in the procurement of artistic or musical services are
4hereby validated.
5    In order to ensure the continuing effectiveness of this
6Section, it is set forth in full and re-enacted by this
7amendatory Act of the 100th General Assembly. This re-enactment
8is intended as a continuation of this Section. It is not
9intended to supersede any amendment to this Section that is
10enacted by the 100th General Assembly.
11    In this amendatory Act of the 100th General Assembly, the
12base text of this Section is set forth as amended by Public Act
1398-1076. Striking and underscoring is used only to show changes
14being made to the base text.
15    This Section applies to all procurements made on or before
16the effective date of this amendatory Act of the 100th General
17Assembly.
18(Source: P.A. 100-43, eff. 8-9-17.)
 
19    (30 ILCS 500/1-13)
20    Sec. 1-13. Applicability to public institutions of higher
21education.
22    (a) This Code shall apply to public institutions of higher
23education, regardless of the source of the funds with which
24contracts are paid, except as provided in this Section.
25    (b) Except as provided in this Section, this Code shall not

 

 

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1apply to procurements made by or on behalf of public
2institutions of higher education for any of the following:
3        (1) Memberships in professional, academic, research,
4    or athletic organizations on behalf of a public institution
5    of higher education, an employee of a public institution of
6    higher education, or a student at a public institution of
7    higher education.
8        (2) Procurement expenditures for events or activities
9    paid for exclusively by revenues generated by the event or
10    activity, gifts or donations for the event or activity,
11    private grants, or any combination thereof.
12        (3) Procurement expenditures for events or activities
13    for which the use of specific potential contractors is
14    mandated or identified by the sponsor of the event or
15    activity, provided that the sponsor is providing a majority
16    of the funding for the event or activity.
17        (4) Procurement expenditures necessary to provide
18    athletic, artistic or musical services, performances,
19    events, or productions by or for a public institution of
20    higher education.
21        (5) Procurement expenditures for periodicals, books,
22    subscriptions, database licenses, and other publications
23    procured for use by a university library or academic
24    department, except for expenditures related to procuring
25    textbooks for student use or materials for resale or
26    rental.

 

 

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1        (6) Procurement expenditures for placement of students
2    in externships, practicums, field experiences, and for
3    medical residencies and rotations.
4        (7) Contracts for programming and broadcast license
5    rights for university-operated radio and television
6    stations.
7        (8) Procurement expenditures necessary to perform
8    sponsored research and other sponsored activities under
9    grants and contracts funded by the sponsor or by sources
10    other than State appropriations.
11        (9) Contracts with a foreign entity for research or
12    educational activities, provided that the foreign entity
13    either does not maintain an office in the United States or
14    is the sole source of the service or product.
15Notice of each contract with an annual value of more than
16$100,000 entered into by a public institution of higher
17education that is related to the procurement of goods and
18services identified in items (1) through (9) of this subsection
19shall be published in the Procurement Bulletin within 14
20calendar days after contract execution. The Chief Procurement
21Officer shall prescribe the form and content of the notice.
22Each public institution of higher education shall provide the
23Chief Procurement Officer, on a monthly basis, in the form and
24content prescribed by the Chief Procurement Officer, a report
25of contracts that are related to the procurement of goods and
26services identified in this subsection. At a minimum, this

 

 

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1report shall include the name of the contractor, a description
2of the supply or service provided, the total amount of the
3contract, the term of the contract, and the exception to the
4Code utilized. A copy of any or all of these contracts shall be
5made available to the Chief Procurement Officer immediately
6upon request. The Chief Procurement Officer shall submit a
7report to the Governor and General Assembly no later than
8November 1 of each year that shall include, at a minimum, an
9annual summary of the monthly information reported to the Chief
10Procurement Officer.
11    (b-5) Except as provided in this subsection, the provisions
12of this Code shall not apply to contracts for medical supplies,
13and to contracts for medical services necessary for the
14delivery of care and treatment at medical, dental, or
15veterinary teaching facilities utilized by Southern Illinois
16University or the University of Illinois and at any
17university-operated health care center or dispensary that
18provides care, treatment, and medications for students,
19faculty and staff. Other supplies and services needed for these
20teaching facilities shall be subject to the jurisdiction of the
21Chief Procurement Officer for Public Institutions of Higher
22Education who may establish expedited procurement procedures
23and may waive or modify certification, contract, hearing,
24process and registration requirements required by the Code. All
25procurements made under this subsection shall be documented and
26may require publication in the Illinois Procurement Bulletin.

 

 

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1    (c) Procurements made by or on behalf of public
2institutions of higher education for the fulfillment of a grant
3shall be made in accordance with the requirements of this Code
4to the extent practical.
5    Upon the written request of a public institution of higher
6education, the Chief Procurement Officer may waive contract,
7registration, certification, and hearing requirements of this
8Code if, based on the item to be procured or the terms of a
9grant, compliance is impractical. The public institution of
10higher education shall provide the Chief Procurement Officer
11with specific reasons for the waiver, including the necessity
12of contracting with a particular potential contractor, and
13shall certify that an effort was made in good faith to comply
14with the provisions of this Code. The Chief Procurement Officer
15shall provide written justification for any waivers. By
16November 1 of each year, the Chief Procurement Officer shall
17file a report with the General Assembly identifying each
18contract approved with waivers and providing the justification
19given for any waivers for each of those contracts. Notice of
20each waiver made under this subsection shall be published in
21the Procurement Bulletin within 14 calendar days after contract
22execution. The Chief Procurement Officer shall prescribe the
23form and content of the notice.
24    (d) Notwithstanding this Section, a waiver of the
25registration requirements of Section 20-160 does not permit a
26business entity and any affiliated entities or affiliated

 

 

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1persons to make campaign contributions if otherwise prohibited
2by Section 50-37. The total amount of contracts awarded in
3accordance with this Section shall be included in determining
4the aggregate amount of contracts or pending bids of a business
5entity and any affiliated entities or affiliated persons.
6    (e) Notwithstanding subsection (e) of Section 50-10.5 of
7this Code, the Chief Procurement Officer, with the approval of
8the Executive Ethics Commission, may permit a public
9institution of higher education to accept a bid or enter into a
10contract with a business that assisted the public institution
11of higher education in determining whether there is a need for
12a contract or assisted in reviewing, drafting, or preparing
13documents related to a bid or contract, provided that the bid
14or contract is essential to research administered by the public
15institution of higher education and it is in the best interest
16of the public institution of higher education to accept the bid
17or contract. For purposes of this subsection, "business"
18includes all individuals with whom a business is affiliated,
19including, but not limited to, any officer, agent, employee,
20consultant, independent contractor, director, partner,
21manager, or shareholder of a business. The Executive Ethics
22Commission may promulgate rules and regulations for the
23implementation and administration of the provisions of this
24subsection (e).
25    (f) As used in this Section:
26    "Grant" means non-appropriated funding provided by a

 

 

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1federal or private entity to support a project or program
2administered by a public institution of higher education and
3any non-appropriated funding provided to a sub-recipient of the
4grant.
5    "Public institution of higher education" means Chicago
6State University, Eastern Illinois University, Governors State
7University, Illinois State University, Northeastern Illinois
8University, Northern Illinois University, Southern Illinois
9University, University of Illinois, Western Illinois
10University, and, for purposes of this Code only, the Illinois
11Mathematics and Science Academy.
12    (g) (Blank).
13    (h) The General Assembly finds and declares that:
14        (1) Public Act 98-1076, which took effect on January 1,
15    2015, changed the repeal date set for this Section from
16    December 31, 2014 to December 31, 2016.
17        (2) The Statute on Statutes sets forth general rules on
18    the repeal of statutes and the construction of multiple
19    amendments, but Section 1 of that Act also states that
20    these rules will not be observed when the result would be
21    "inconsistent with the manifest intent of the General
22    Assembly or repugnant to the context of the statute".
23        (3) This amendatory Act of the 100th General Assembly
24    manifests the intention of the General Assembly to remove
25    the repeal of this Section.
26        (4) This Section was originally enacted to protect,

 

 

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1    promote, and preserve the general welfare. Any
2    construction of this Section that results in the repeal of
3    this Section on December 31, 2014 would be inconsistent
4    with the manifest intent of the General Assembly and
5    repugnant to the context of this Code.
6    It is hereby declared to have been the intent of the
7General Assembly that this Section not be subject to repeal on
8December 31, 2014.
9    This Section shall be deemed to have been in continuous
10effect since December 20, 2011 (the effective date of Public
11Act 97-643), and it shall continue to be in effect henceforward
12until it is otherwise lawfully repealed. All previously enacted
13amendments to this Section taking effect on or after December
1431, 2014, are hereby validated.
15    All actions taken in reliance on or pursuant to this
16Section by any public institution of higher education, person,
17or entity are hereby validated.
18    In order to ensure the continuing effectiveness of this
19Section, it is set forth in full and re-enacted by this
20amendatory Act of the 100th General Assembly. This re-enactment
21is intended as a continuation of this Section. It is not
22intended to supersede any amendment to this Section that is
23enacted by the 100th General Assembly.
24    In this amendatory Act of the 100th General Assembly, the
25base text of the reenacted Section is set forth as amended by
26Public Act 98-1076. Striking and underscoring is used only to

 

 

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1show changes being made to the base text.
2    This Section applies to all procurements made on or before
3the effective date of this amendatory Act of the 100th General
4Assembly.
5(Source: P.A. 100-43, eff. 8-9-17.)