Rep. Chapin Rose

Filed: 3/9/2011

 

 


 

 


 
09700HB0089ham001LRB097 05408 PJG 52493 a

1
AMENDMENT TO HOUSE BILL 89

2    AMENDMENT NO. ______. Amend House Bill 89 by replacing the
3title with "AN ACT concerning procurement."; and
 
4by replacing everything after the enacting clause with the
5following:
 
6    "Section 5. The Illinois Procurement Code is amended by
7changing Sections 1-15.107, 1-15.108, 20-25, 20-30, 20-43,
820-85, 20-90, 20-95, 20-120, 20-160, 25-15, and 50-39 and by
9adding Section 20-100 as follows:
 
10    (30 ILCS 500/1-15.107)
11    Sec. 1-15.107. Subcontract. "Subcontract" means a contract
12between a person and a person who has or is seeking a contract
13subject to this Code, pursuant to which the subcontractor
14provides to the contractor or another subcontractor some or all
15of the goods, services, property, remuneration, or other forms

 

 

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1of consideration that are the subject of the primary contract
2and includes, among other things, subleases from a lessee of a
3State agency.
4(Source: P.A. 96-795, eff. 7-1-10 (see Section 5 of P.A. 96-793
5for the effective date of P.A. 96-795).)
 
6    (30 ILCS 500/1-15.108)
7    Sec. 1-15.108. Subcontractor. "Subcontractor" means a
8person or entity that enters into a contractual agreement with
9a total value in excess of the small purchase amount set forth
10in this Code of $25,000 or more with a person or entity who has
11or is seeking a contract subject to this Code pursuant to which
12the person or entity provides some or all of the goods,
13services, property, remuneration, or other forms of
14consideration that are the subject of the primary State
15contract, including subleases from a lessee of a State
16contract.
17(Source: P.A. 96-920, eff. 7-1-10.)
 
18    (30 ILCS 500/20-25)
19    Sec. 20-25. Sole source procurements.
20    (a) In accordance with standards set by rule, contracts may
21be awarded without use of the specified method of source
22selection when there is only one economically feasible source
23for the item. A State contract may not be awarded as a sole
24source procurement unless approved by the chief procurement

 

 

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1officer. If any person files an objection to the notice of a
2sole source procurement during the 14-day notice period
3required by subsection (c), the chief procurement officer shall
4provide following a public hearing at which the chief
5procurement officer, State purchasing officer, or State agency
6presents and purchasing agency present written justification
7for the procurement method. The Procurement Policy Board and
8the public may present testimony.
9    (b) This Section may not be used as a basis for amending a
10contract for professional or artistic services if the amendment
11would result in an increase in the amount paid under the
12contract of more than 5% of the initial award, or would extend
13the contract term beyond the time reasonably needed for a
14competitive procurement, not to exceed 2 months.
15    (c) Notice of intent to enter into a sole source contract
16shall be provided to the Procurement Policy Board and published
17in the online electronic Bulletin at least 14 days before the
18public hearing required in subsection (a). The notice shall
19include the sole source procurement justification form
20prescribed by the Board, a description of the item to be
21procured, the intended sole source contractor, and the date,
22time, and location of the public hearing. A copy of the notice
23and all documents provided at the hearing shall be included in
24the subsequent Procurement Bulletin.
25    (d) By August 1 each year, each chief procurement officer
26shall file a report with the General Assembly identifying each

 

 

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1contract the officer sought under the sole source procurement
2method and providing the justification given for seeking sole
3source as the procurement method for each of those contracts.
4(Source: P.A. 96-795, eff. 7-1-10 (see Section 5 of P.A. 96-793
5for the effective date of changes made by P.A. 96-795); 96-920,
6eff. 7-1-10.)
 
7    (30 ILCS 500/20-30)
8    Sec. 20-30. Emergency purchases.
9    (a) Conditions for use. In accordance with standards set by
10rule, a purchasing agency may make emergency procurements
11without competitive sealed bidding or prior notice when there
12exists a threat to public health or public safety, or when
13immediate expenditure is necessary for repairs to State
14property in order to protect against further loss of or damage
15to State property, to prevent or minimize serious disruption in
16critical State services that affect health, safety, or
17collection of substantial State revenues, or to ensure the
18integrity of State records; provided, however, that the term of
19the emergency purchase shall be limited to the time reasonably
20needed for a competitive procurement, not to exceed 90 days. A
21contract may be extended beyond 90 days if the chief
22procurement officer determines additional time is necessary
23and that the contract scope and duration are limited to the
24emergency. If any person files an objection to the notice of
25extension required by subsection (b), the chief procurement

 

 

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1officer shall provide a public hearing at which the chief
2procurement officer, State purchasing officer, or State agency
3presents written justification for the extension. The
4Procurement Policy Board and members Prior to execution of the
5extension, the chief procurement officer must hold a public
6hearing and provide written justification for all emergency
7contracts. Members of the public may present testimony.
8Emergency procurements shall be made with as much competition
9as is practicable under the circumstances. A written
10description of the basis for the emergency and reasons for the
11selection of the particular contractor shall be included in the
12contract file.
13    (b) Notice. Notice of all emergency procurements shall be
14provided to the Procurement Policy Board and published in the
15online electronic Bulletin no later than 3 business days after
16the contract is awarded. Notice of intent to extend an
17emergency contract shall be provided to the Procurement Policy
18Board and published in the online electronic Bulletin at least
1914 days before the public hearing. Notice shall include at
20least a description of the need for the emergency purchase, the
21contractor, and if applicable, the date, time, and location of
22the public hearing. A copy of this notice and all documents
23provided at the hearing shall be included in the subsequent
24Procurement Bulletin. Before the next appropriate volume of the
25Illinois Procurement Bulletin, the purchasing agency shall
26publish in the Illinois Procurement Bulletin a copy of each

 

 

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1written description and reasons and the total cost of each
2emergency procurement made during the previous month. When only
3an estimate of the total cost is known at the time of
4publication, the estimate shall be identified as an estimate
5and published. When the actual total cost is determined, it
6shall also be published in like manner before the 10th day of
7the next succeeding month.
8    (c) Affidavits. A chief procurement officer making a
9procurement under this Section shall file affidavits with the
10Procurement Policy Board and the Auditor General within 10 days
11after the procurement setting forth the amount expended, the
12name of the contractor involved, and the conditions and
13circumstances requiring the emergency procurement. When only
14an estimate of the cost is available within 10 days after the
15procurement, the actual cost shall be reported immediately
16after it is determined. At the end of each fiscal quarter, the
17Auditor General shall file with the Legislative Audit
18Commission and the Governor a complete listing of all emergency
19procurements reported during that fiscal quarter. The
20Legislative Audit Commission shall review the emergency
21procurements so reported and, in its annual reports, advise the
22General Assembly of procurements that appear to constitute an
23abuse of this Section.
24    (d) Quick purchases. The chief procurement officer may
25promulgate rules extending the circumstances by which a
26purchasing agency may make purchases under this Section,

 

 

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1including but not limited to the procurement of items available
2at a discount for a limited period of time.
3    (e) The changes to this Section made by this amendatory Act
4of the 96th General Assembly apply to procurements executed on
5or after its effective date.
6(Source: P.A. 96-795, eff. 7-1-10 (see Section 5 of P.A. 96-793
7for the effective date of changes made by P.A. 96-795).)
 
8    (30 ILCS 500/20-43)
9    Sec. 20-43. Bidder or offeror authorized to do business in
10Illinois. In addition to meeting any other requirement of law
11or rule, a person (other than an individual acting as a sole
12proprietor) may qualify as a bidder or offeror under this Code
13only if the person is a legal entity authorized to do business
14in Illinois prior to submitting the bid, offer, or proposal and
15is authorized to do business in Illinois prior to execution of
16the contract.
17(Source: P.A. 96-795, eff. 7-1-10 (see Section 5 of P.A. 96-793
18for the effective date of P.A. 96-795).)
 
19    (30 ILCS 500/20-85)
20    Sec. 20-85. Federal requirements. A State agency applying
21for or receiving federal-aid funds, grants, or loans shall have
22authority to adopt its procedures, rules, project statements,
23drawings, maps, surveys, plans, specifications, contract
24terms, estimates, bid forms, bond forms, and other documents or

 

 

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1practices to comply with the regulations, policies, and
2procedures of the designated authority, administration, or
3department of the United States, in order to receive or remain
4eligible for such federal-aid funds, grants, or loans.
5(Source: P.A. 90-572, eff. date - See Sec. 99-5.)
 
6    (30 ILCS 500/20-90)
7    Sec. 20-90. Foreign country procurements. Procurements to
8meet the needs of State offices located in foreign countries or
9program activities that operate in foreign countries shall
10comply with the provisions of this Code to the extent
11practical. Procurements that must be made from foreign sole
12source vendors who have no offices in the United States shall
13comply with the provisions of this Code to the extent
14practical.
15(Source: P.A. 90-572, eff. date - See Sec. 99-5.)
 
16    (30 ILCS 500/20-95)
17    Sec. 20-95. Donations. Nothing in this Code or in the rules
18promulgated under this Code shall prevent any State agency from
19complying with the terms and conditions of any grant, gift, or
20bequest that calls for the procurement of a particular good or
21service or the use of a particular contractor, provided that
22the grant, gift, or bequest provides majority funding for the
23contract. The provisions of this Code shall apply to the extent
24practical.

 

 

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1(Source: P.A. 90-572, eff. date - See Sec. 99-5.)
 
2    (30 ILCS 500/20-100 new)
3    Sec. 20-100. Expedited procurements. The chief procurement
4officer may establish by rule expedited processes to procure
5specialized supplies and services needed to meet research needs
6of State agencies, to ensure compliance with grant and grant
7application requirements, to contract for conference and
8commencement speakers, for athletic events and entertainment,
9and for membership dues and fees. Notice, vendor qualification,
10solicitation and contract terms, and other requirements of this
11Code shall apply to the extent practical.
 
12    (30 ILCS 500/20-120)
13    Sec. 20-120. Subcontractors.
14    (a) Any contract granted under this Code shall state
15whether the services of a subcontractor will or may be used.
16The contract shall include the names and addresses of all known
17subcontractors with subcontracts with an annual value of more
18than the small purchase amount authorized by this Code $25,000
19and the expected amount of money each will receive under the
20contract. For procurements subject to the authority of the
21chief procurement officer appointed pursuant to subsection
22(a)(2) of Section 10-20, the contract shall include only the
23names and addresses of all known subcontractors of the primary
24contractor with subcontracts with an annual value of more than

 

 

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1$25,000. The contractor shall provide the chief procurement
2officer or State purchasing officer a copy of any subcontract
3with an annual value of more than $25,000 so identified within
420 days after the execution of the State contract or after
5execution of the subcontract, whichever is later. A
6subcontractor, or contractor on behalf of a subcontractor, may
7identify information that is deemed proprietary or
8confidential. If the chief procurement officer determines the
9information is not relevant to the primary contract, the chief
10procurement officer may excuse the inclusion of the
11information. If the chief procurement officer determines the
12information is proprietary or could harm the business interest
13of the subcontractor, the chief procurement officer may, in his
14or her discretion, redact the information. Redacted
15information shall not become part of the public record.
16    (b) If at any time during the term of a contract, a
17contractor adds or changes any subcontractors with an annual
18value that exceeds the small purchase amounts authorized by
19this Code, he or she shall promptly notify, in writing, the
20chief procurement officer, State purchasing officer, or their
21designee of the names and addresses and the expected amount of
22money each new or replaced subcontractor will receive. The
23contractor shall provide to the responsible chief procurement
24officer a copy of the subcontract within 20 days after the
25execution of the subcontract.
26    (c) In addition to any other requirements of this Code, a

 

 

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1subcontract subject to this Section must include all of the
2subcontractor's certifications required by Article 50 of the
3Code.
4    (d) This Section applies to procurements solicited on or
5after the effective date of this amendatory Act of the 96th
6General Assembly.
7(Source: P.A. 96-795, eff. 7-1-10 (see Section 5 of P.A. 96-793
8for the effective date of P.A. 96-795); 96-920, eff. 7-1-10.)
 
9    (30 ILCS 500/20-160)
10    Sec. 20-160. Business entities; certification;
11registration with the State Board of Elections.
12    (a) For purposes of this Section, the terms "business
13entity", "contract", "State contract", "contract with a State
14agency", "State agency", "affiliated entity", and "affiliated
15person" have the meanings ascribed to those terms in Section
1650-37.
17    (b) Every bid submitted to and every contract executed by
18the State on or after January 1, 2009 (the effective date of
19Public Act 95-971) shall contain (1) a certification by the
20bidder or contractor that either (i) the bidder or contractor
21is not required to register as a business entity with the State
22Board of Elections pursuant to this Section or (ii) the bidder
23or contractor has registered as a business entity with the
24State Board of Elections and acknowledges a continuing duty to
25update the registration and (2) a statement that the contract

 

 

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1is voidable under Section 50-60 for the bidder's or
2contractor's failure to comply with this Section.
3    (c) Within 30 days after the effective date of this
4amendatory Act of the 95th General Assembly, each business
5entity (i) whose aggregate bids and proposals on State
6contracts annually total more than $50,000, (ii) whose
7aggregate bids and proposals on State contracts combined with
8the business entity's aggregate annual total value of State
9contracts exceed $50,000, or (iii) whose contracts with State
10agencies, in the aggregate, annually total more than $50,000
11shall register with the State Board of Elections in accordance
12with Section 9-35 of the Election Code. A business entity
13required to register under this subsection shall submit a copy
14of the certificate of registration to the applicable chief
15procurement officer within 90 days after the effective date of
16this amendatory Act of the 95th General Assembly. A business
17entity required to register under this subsection due to item
18(i) or (ii) has a continuing duty to ensure that the
19registration is accurate during the period beginning on the
20date of registration and ending on the day after the date the
21contract is awarded; any change in information must be reported
22to the State Board of Elections 5 business days following such
23change or no later than a day before the contract is awarded,
24whichever date is earlier. A business entity required to
25register under this subsection due to item (iii) has a
26continuing duty to ensure that the registration is accurate in

 

 

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1accordance with subsection report any changes in information to
2the State Board of Elections on the final day of January,
3April, July, and October of each year, or the first business
4day after such dates, if such dates do not fall on a business
5day (e).
6    (d) Any business entity, not required under subsection (c)
7to register within 30 days after the effective date of this
8amendatory Act of the 95th General Assembly, whose aggregate
9bids and proposals on State contracts annually total more than
10$50,000, or whose aggregate bids and proposals on State
11contracts combined with the business entity's aggregate annual
12total value of State contracts exceed $50,000, shall register
13with the State Board of Elections in accordance with Section
149-35 of the Election Code prior to submitting to a State agency
15the bid or proposal whose value causes the business entity to
16fall within the monetary description of this subsection. A
17business entity required to register under this subsection has
18a continuing duty to ensure that the registration is accurate
19during the period beginning on the date of registration and
20ending on the day after the date the contract is awarded. Any
21change in information must be reported to the State Board of
22Elections within 5 business days following such change or no
23later than a day before the contract is awarded, whichever date
24is earlier.
25    (e) A business entity whose contracts with State agencies,
26in the aggregate, annually total more than $50,000 must

 

 

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1maintain its registration under this Section and has a
2continuing duty to ensure that the registration is accurate for
3the duration of the term of office of the incumbent
4officeholder awarding the contracts or for a period of 2 years
5following the expiration or termination of the contracts,
6whichever is longer. A business entity, required to register
7under this subsection, has a continuing duty to report any
8changes on a quarterly basis to the State Board of Elections
9within 10 business days following the last day of January,
10April, July, and October of each year. Any update pursuant to
11this paragraph that is received beyond that date is presumed
12late and the civil penalty authorized by subsection (e) of
13Section 9-35 of the Election Code (10 ILCS 5/9-35) may be
14assessed.
15    Also, if on the final day of January, April, July, and
16October of each year, or the first business day after such
17dates, if such dates do not fall on a business day. If a
18business entity required to register under this subsection has
19a pending bid or proposal, any change in information shall be
20reported to the State Board of Elections within 5 business days
21following such change or no later than a day before the
22contract is awarded, whichever date is earlier.
23    (f) A business entity's continuing duty under this Section
24to ensure the accuracy of its registration includes the
25requirement that the business entity notify the State Board of
26Elections of any change in information, including but not

 

 

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1limited to changes of affiliated entities or affiliated
2persons.
3    (g) A copy of a certificate of registration must accompany
4any bid or proposal for a contract with a State agency by a
5business entity required to register under this Section. A
6chief procurement officer shall not accept a bid or proposal
7unless the vendor has made and complied with the certification
8required in subsection (b) the certificate is submitted to the
9agency with the bid or proposal.
10    (h) A registration, and any changes to a registration, must
11include the business entity's verification of accuracy and
12subjects the business entity to the penalties of the laws of
13this State for perjury.
14    In addition to any penalty under Section 9-35 of the
15Election Code, intentional, willful, or material failure to
16disclose information required for registration shall render
17the contract, bid, proposal, or other procurement relationship
18voidable by the chief procurement officer if he or she deems it
19to be in the best interest of the State of Illinois.
20    (i) This Section applies to all methods regardless of the
21method of source selection used in awarding the contract,
22except that the chief procurement officer may waive compliance
23for sole sources and emergency contracts if necessary to secure
24the contract.
25(Source: P.A. 95-971, eff. 1-1-09; 96-795, eff. 7-1-10 (see
26Section 5 of P.A. 96-793 for the effective date of changes made

 

 

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1by P.A. 96-795); 96-848, eff. 1-1-10; revised 9-23-10.)
 
2    (30 ILCS 500/25-15)
3    Sec. 25-15. Method of source selection.
4    (a) Competitive sealed bidding. Except as provided in
5subsection (b) and Sections 20-20, 20-25, and 20-30, all State
6contracts for supplies and services shall be awarded by
7competitive sealed bidding in accordance with Section 20-10.
8    (b) Other methods. The chief procurement officer may
9establish by rule (i) categories of purchases, including
10non-governmental joint purchases, that may be made without
11competitive sealed bidding and (ii) the most competitive
12alternate method of source selection that shall be used for
13each category of purchase. When determined necessary by the
14State agency and approved by the chief procurement officer,
15vendor qualification and contract terms otherwise required may
16be modified to ensure that the needs of the State agency can be
17met. The determination and approval must be published in the
18Illinois Procurement Bulletin.
19(Source: P.A. 90-572, eff. date - See Sec. 99-5.)
 
20    (30 ILCS 500/50-39)
21    Sec. 50-39. Procurement communications reporting
22requirement.
23    (a) Any written or oral communication received by a State
24employee that imparts or requests material information or makes

 

 

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1a material argument regarding potential action concerning a
2procurement matter, including, but not limited to, an
3application, a contract, or a project, shall be reported to the
4Procurement Policy Board. These communications do not include
5the following: (i) statements by a person publicly made in a
6public forum; (ii) statements regarding matters of procedure
7and practice, such as format, the number of copies required,
8the manner of filing, and the status of a matter; and (iii)
9statements made by a State employee of the agency to the agency
10head or other employees of that agency or to the employees of
11the Executive Ethics Commission; (iv) statements made by an
12employee of a State university concerning cooperative
13procurement activities among or between public universities;
14and (v) communications regarding transactions less than the
15small purchase amount set forth in this Code. The provisions of
16this Section shall not apply to communications regarding the
17administration and implementation of an existing contract,
18except communications regarding change orders or the renewal or
19extension of a contract.
20    (b) The report required by subsection (a) shall be
21submitted monthly and include at least the following: (i) the
22date and time of each communication; (ii) the identity of each
23person from whom the written or oral communication was
24received, the individual or entity represented by that person,
25and any action the person requested or recommended; (iii) the
26identity and job title of the person to whom each communication

 

 

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1was made; (iv) if a response is made, the identity and job
2title of the person making each response; (v) a detailed
3summary of the points made by each person involved in the
4communication; (vi) the duration of the communication; (vii)
5the location or locations of all persons involved in the
6communication and, if the communication occurred by telephone,
7the telephone numbers for the callers and recipients of the
8communication; and (viii) any other pertinent information.
9    (c) Additionally, when an oral communication made by a
10person required to register under the Lobbyist Registration Act
11is received by a State employee that is covered under this
12Section, all individuals who initiate or participate in the
13oral communication shall submit a written report to that State
14employee that memorializes the communication and includes, but
15is not limited to, the items listed in subsection (b).
16    (d) The Procurement Policy Board shall make each report
17submitted pursuant to this Section available on its website
18within 7 days after its receipt of the report. The Procurement
19Policy Board may promulgate rules to ensure compliance with
20this Section.
21    (e) The reporting requirements shall also be conveyed
22through ethics training under the State Employees and Officials
23and Employees Ethics Act. An employee who knowingly and
24intentionally violates this Section shall be subject to
25suspension or discharge. The Executive Ethics Commission shall
26promulgate rules, including emergency rules, to implement this

 

 

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1Section.
2    (f) This Section becomes operative on January 1, 2011.
3(Source: P.A. 96-795, eff. 7-1-10 (see Section 5 of P.A. 96-793
4for the effective date of changes made by P.A. 96-795); 96-920,
5eff. 7-1-10; revised 9-27-10.)".