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Full Text of SB3488  101st General Assembly

SB3488 101ST GENERAL ASSEMBLY

  
  

 


 
101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020
SB3488

 

Introduced 2/14/2020, 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 19534 RJF 69007 b

 

 

A BILL FOR

 

SB3488LRB101 19534 RJF 69007 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
15with respect 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) 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 Program and Opioid
21    Alternative Pilot Program requirements and ensure access
22    to medical cannabis for patients with debilitating medical
23    conditions in accordance with the Compassionate Use of
24    Medical Cannabis Program Act.
25        (18) This Code does not apply to any procurements
26    necessary for the Department of Agriculture, the

 

 

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1    Department of Financial and Professional Regulation, the
2    Department of Human Services, the Department of Commerce
3    and Economic Opportunity, and the Department of Public
4    Health to implement the Cannabis Regulation and Tax Act if
5    the applicable agency has made a good faith determination
6    that it is necessary and appropriate for the expenditure to
7    fall within this exemption and if the process is conducted
8    in a manner substantially in accordance with the
9    requirements of Sections 20-160, 25-60, 30-22, 50-5,
10    50-10, 50-10.5, 50-12, 50-13, 50-15, 50-20, 50-21, 50-35,
11    50-36, 50-37, 50-38, and 50-50 of this Code; however, for
12    Section 50-35, compliance applies only to contracts or
13    subcontracts over $100,000. Notice of each contract
14    entered into under this paragraph (18) that is related to
15    the procurement of goods and services identified in
16    paragraph (1) through (9) of this subsection shall be
17    published in the Procurement Bulletin within 14 calendar
18    days after contract execution. The Chief Procurement
19    Officer shall prescribe the form and content of the notice.
20    Each agency shall provide the Chief Procurement Officer, on
21    a monthly basis, in the form and content prescribed by the
22    Chief Procurement Officer, a report of contracts that are
23    related to the procurement of goods and services identified
24    in this subsection. At a minimum, this report shall include
25    the name of the contractor, a description of the supply or
26    service provided, the total amount of the contract, the

 

 

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1    term of the contract, and the exception to this Code
2    utilized. A copy of any or all of these contracts shall be
3    made available to the Chief Procurement Officer
4    immediately upon request. The Chief Procurement Officer
5    shall submit a report to the Governor and General Assembly
6    no later than November 1 of each year that includes, at a
7    minimum, an annual summary of the monthly information
8    reported to the Chief Procurement Officer. This exemption
9    becomes inoperative 5 years after June 25, 2019 (the
10    effective date of Public Act 101-27) this amendatory Act of
11    the 101st General Assembly.
12    Notwithstanding any other provision of law, for contracts
13with an annual value of more than $100,000 entered into on or
14after October 1, 2017 under an exemption provided in any
15paragraph of this subsection (b), except paragraph (1), (2), or
16(5), each State agency shall post to the appropriate
17procurement bulletin the name of the contractor, a description
18of the supply or service provided, the total amount of the
19contract, the term of the contract, and the exception to the
20Code utilized. The chief procurement officer shall submit a
21report to the Governor and General Assembly no later than
22November 1 of each year that shall include, at a minimum, an
23annual summary of the monthly information reported to the chief
24procurement officer.
25    (c) This Code does not apply to the electric power
26procurement process provided for under Section 1-75 of the

 

 

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1Illinois Power Agency Act and Section 16-111.5 of the Public
2Utilities Act.
3    (d) Except for Section 20-160 and Article 50 of this Code,
4and as expressly required by Section 9.1 of the Illinois
5Lottery Law, the provisions of this Code do not apply to the
6procurement process provided for under Section 9.1 of the
7Illinois Lottery Law.
8    (e) This Code does not apply to the process used by the
9Capital Development Board to retain a person or entity to
10assist the Capital Development Board with its duties related to
11the determination of costs of a clean coal SNG brownfield
12facility, as defined by Section 1-10 of the Illinois Power
13Agency Act, as required in subsection (h-3) of Section 9-220 of
14the Public Utilities Act, including calculating the range of
15capital costs, the range of operating and maintenance costs, or
16the sequestration costs or monitoring the construction of clean
17coal SNG brownfield facility for the full duration of
18construction.
19    (f) (Blank).
20    (g) (Blank).
21    (h) This Code does not apply to the process to procure or
22contracts entered into in accordance with Sections 11-5.2 and
2311-5.3 of the Illinois Public Aid Code.
24    (i) Each chief procurement officer may access records
25necessary to review whether a contract, purchase, or other
26expenditure is or is not subject to the provisions of this

 

 

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1Code, unless such records would be subject to attorney-client
2privilege.
3    (j) This Code does not apply to the process used by the
4Capital Development Board to retain an artist or work or works
5of art as required in Section 14 of the Capital Development
6Board Act.
7    (k) This Code does not apply to the process to procure
8contracts, or contracts entered into, by the State Board of
9Elections or the State Electoral Board for hearing officers
10appointed pursuant to the Election Code.
11    (l) This Code does not apply to the processes used by the
12Illinois Student Assistance Commission to procure supplies and
13services paid for from the private funds of the Illinois
14Prepaid Tuition Fund. As used in this subsection (l), "private
15funds" means funds derived from deposits paid into the Illinois
16Prepaid Tuition Trust Fund and the earnings thereon.
17(Source: P.A. 100-43, eff. 8-9-17; 100-580, eff. 3-12-18;
18100-757, eff. 8-10-18; 100-1114, eff. 8-28-18; 101-27, eff.
196-25-19; 101-81, eff. 7-12-19; 101-363, eff. 8-9-19; revised
209-17-19.)
 
21    (30 ILCS 500/1-12)
22    Sec. 1-12. Applicability to artistic or musical services.
23    (a) This Code shall not apply to procurement expenditures
24necessary to provide artistic or musical services,
25performances, or theatrical productions held at a venue

 

 

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1operated or leased by a State agency.
2    (b) Notice of each contract with an annual value of more
3than $100,000 entered into by a State agency that is related to
4the procurement of goods and services identified in this
5Section shall be published in the Illinois Procurement Bulletin
6within 14 calendar days after contract execution. The chief
7procurement officer shall prescribe the form and content of the
8notice. Each State agency shall provide the chief procurement
9officer, on a monthly basis, in the form and content prescribed
10by the chief procurement officer, a report of contracts that
11are related to the procurement of supplies and services
12identified in this Section. At a minimum, this report shall
13include the name of the contractor, a description of the supply
14or service provided, the total amount of the contract, the term
15of the contract, and the exception to the Code utilized. A copy
16of any or all of these contracts shall be made available to the
17chief procurement officer immediately upon request. The chief
18procurement officer shall submit a report to the Governor and
19General Assembly no later than November 1 of each year that
20shall include, at a minimum, an annual summary of the monthly
21information reported to the chief procurement officer.
22    (c) (Blank).
23    (d) The General Assembly finds and declares that:
24        (1) This amendatory Act of the 100th General Assembly
25    manifests the intention of the General Assembly to remove
26    the repeal of this Section.

 

 

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1        (2) This Section was originally enacted to protect,
2    promote, and preserve the general welfare. Any
3    construction of this Section that results in the repeal of
4    this Section on December 31, 2016 would be inconsistent
5    with the manifest intent of the General Assembly and
6    repugnant to the context of this Code.
7    It is hereby declared to have been the intent of the
8General Assembly that this Section not be subject to repeal on
9December 31, 2016.
10    This Section shall be deemed to have been in continuous
11effect since August 3, 2012 (the effective date of Public Act
1297-895), and it shall continue to be in effect henceforward
13until it is otherwise lawfully repealed. All previously enacted
14amendments to this Section taking effect on or after December
1531, 2016, are hereby validated.
16    All actions taken in reliance on or pursuant to this
17Section in the procurement of artistic or musical services are
18hereby validated.
19    In order to ensure the continuing effectiveness of this
20Section, it is set forth in full and re-enacted by this
21amendatory Act of the 100th General Assembly. This re-enactment
22is intended as a continuation of this Section. It is not
23intended to supersede any amendment to this Section that is
24enacted by the 100th General Assembly.
25    In this amendatory Act of the 100th General Assembly, the
26base text of this Section is set forth as amended by Public Act

 

 

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198-1076. Striking and underscoring is used only to show changes
2being made to the base text.
3    This Section applies to all procurements made on or before
4the effective date of this amendatory Act of the 100th General
5Assembly.
6(Source: P.A. 100-43, eff. 8-9-17.)
 
7    (30 ILCS 500/1-13)
8    Sec. 1-13. Applicability to public institutions of higher
9education.
10    (a) This Code shall apply to public institutions of higher
11education, regardless of the source of the funds with which
12contracts are paid, except as provided in this Section.
13    (b) Except as provided in this Section, this Code shall not
14apply to procurements made by or on behalf of public
15institutions of higher education for any of the following:
16        (1) Memberships in professional, academic, research,
17    or athletic organizations on behalf of a public institution
18    of higher education, an employee of a public institution of
19    higher education, or a student at a public institution of
20    higher education.
21        (2) Procurement expenditures for events or activities
22    paid for exclusively by revenues generated by the event or
23    activity, gifts or donations for the event or activity,
24    private grants, or any combination thereof.
25        (3) Procurement expenditures for events or activities

 

 

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1    for which the use of specific potential contractors is
2    mandated or identified by the sponsor of the event or
3    activity, provided that the sponsor is providing a majority
4    of the funding for the event or activity.
5        (4) Procurement expenditures necessary to provide
6    athletic, artistic or musical services, performances,
7    events, or productions by or for a public institution of
8    higher education.
9        (5) Procurement expenditures for periodicals, books,
10    subscriptions, database licenses, and other publications
11    procured for use by a university library or academic
12    department, except for expenditures related to procuring
13    textbooks for student use or materials for resale or
14    rental.
15        (6) Procurement expenditures for placement of students
16    in externships, practicums, field experiences, and for
17    medical residencies and rotations.
18        (7) Contracts for programming and broadcast license
19    rights for university-operated radio and television
20    stations.
21        (8) Procurement expenditures necessary to perform
22    sponsored research and other sponsored activities under
23    grants and contracts funded by the sponsor or by sources
24    other than State appropriations.
25        (9) Contracts with a foreign entity for research or
26    educational activities, provided that the foreign entity

 

 

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1    either does not maintain an office in the United States or
2    is the sole source of the service or product.
3Notice of each contract with an annual value of more than
4$100,000 entered into by a public institution of higher
5education that is related to the procurement of goods and
6services identified in items (1) through (9) of this subsection
7shall be published in the Procurement Bulletin within 14
8calendar days after contract execution. The Chief Procurement
9Officer shall prescribe the form and content of the notice.
10Each public institution of higher education shall provide the
11Chief Procurement Officer, on a monthly basis, in the form and
12content prescribed by the Chief Procurement Officer, a report
13of contracts that are related to the procurement of goods and
14services identified in this subsection. At a minimum, this
15report shall include the name of the contractor, a description
16of the supply or service provided, the total amount of the
17contract, the term of the contract, and the exception to the
18Code utilized. A copy of any or all of these contracts shall be
19made available to the Chief Procurement Officer immediately
20upon request. The Chief Procurement Officer shall submit a
21report to the Governor and General Assembly no later than
22November 1 of each year that shall include, at a minimum, an
23annual summary of the monthly information reported to the Chief
24Procurement Officer.
25    (b-5) Except as provided in this subsection, the provisions
26of this Code shall not apply to contracts for medical supplies,

 

 

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1and to contracts for medical services necessary for the
2delivery of care and treatment at medical, dental, or
3veterinary teaching facilities utilized by Southern Illinois
4University or the University of Illinois and at any
5university-operated health care center or dispensary that
6provides care, treatment, and medications for students,
7faculty and staff. Other supplies and services needed for these
8teaching facilities shall be subject to the jurisdiction of the
9Chief Procurement Officer for Public Institutions of Higher
10Education who may establish expedited procurement procedures
11and may waive or modify certification, contract, hearing,
12process and registration requirements required by the Code. All
13procurements made under this subsection shall be documented and
14may require publication in the Illinois Procurement Bulletin.
15    (c) Procurements made by or on behalf of public
16institutions of higher education for the fulfillment of a grant
17shall be made in accordance with the requirements of this Code
18to the extent practical.
19    Upon the written request of a public institution of higher
20education, the Chief Procurement Officer may waive contract,
21registration, certification, and hearing requirements of this
22Code if, based on the item to be procured or the terms of a
23grant, compliance is impractical. The public institution of
24higher education shall provide the Chief Procurement Officer
25with specific reasons for the waiver, including the necessity
26of contracting with a particular potential contractor, and

 

 

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1shall certify that an effort was made in good faith to comply
2with the provisions of this Code. The Chief Procurement Officer
3shall provide written justification for any waivers. By
4November 1 of each year, the Chief Procurement Officer shall
5file a report with the General Assembly identifying each
6contract approved with waivers and providing the justification
7given for any waivers for each of those contracts. Notice of
8each waiver made under this subsection shall be published in
9the Procurement Bulletin within 14 calendar days after contract
10execution. The Chief Procurement Officer shall prescribe the
11form and content of the notice.
12    (d) Notwithstanding this Section, a waiver of the
13registration requirements of Section 20-160 does not permit a
14business entity and any affiliated entities or affiliated
15persons to make campaign contributions if otherwise prohibited
16by Section 50-37. The total amount of contracts awarded in
17accordance with this Section shall be included in determining
18the aggregate amount of contracts or pending bids of a business
19entity and any affiliated entities or affiliated persons.
20    (e) Notwithstanding subsection (e) of Section 50-10.5 of
21this Code, the Chief Procurement Officer, with the approval of
22the Executive Ethics Commission, may permit a public
23institution of higher education to accept a bid or enter into a
24contract with a business that assisted the public institution
25of higher education in determining whether there is a need for
26a contract or assisted in reviewing, drafting, or preparing

 

 

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1documents related to a bid or contract, provided that the bid
2or contract is essential to research administered by the public
3institution of higher education and it is in the best interest
4of the public institution of higher education to accept the bid
5or contract. For purposes of this subsection, "business"
6includes all individuals with whom a business is affiliated,
7including, but not limited to, any officer, agent, employee,
8consultant, independent contractor, director, partner,
9manager, or shareholder of a business. The Executive Ethics
10Commission may promulgate rules and regulations for the
11implementation and administration of the provisions of this
12subsection (e).
13    (f) As used in this Section:
14    "Grant" means non-appropriated funding provided by a
15federal or private entity to support a project or program
16administered by a public institution of higher education and
17any non-appropriated funding provided to a sub-recipient of the
18grant.
19    "Public institution of higher education" means Chicago
20State University, Eastern Illinois University, Governors State
21University, Illinois State University, Northeastern Illinois
22University, Northern Illinois University, Southern Illinois
23University, University of Illinois, Western Illinois
24University, and, for purposes of this Code only, the Illinois
25Mathematics and Science Academy.
26    (g) (Blank).

 

 

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1    (h) The General Assembly finds and declares that:
2        (1) Public Act 98-1076, which took effect on January 1,
3    2015, changed the repeal date set for this Section from
4    December 31, 2014 to December 31, 2016.
5        (2) The Statute on Statutes sets forth general rules on
6    the repeal of statutes and the construction of multiple
7    amendments, but Section 1 of that Act also states that
8    these rules will not be observed when the result would be
9    "inconsistent with the manifest intent of the General
10    Assembly or repugnant to the context of the statute".
11        (3) This amendatory Act of the 100th General Assembly
12    manifests the intention of the General Assembly to remove
13    the repeal of this Section.
14        (4) This Section was originally enacted to protect,
15    promote, and preserve the general welfare. Any
16    construction of this Section that results in the repeal of
17    this Section on December 31, 2014 would be inconsistent
18    with the manifest intent of the General Assembly and
19    repugnant to the context of this Code.
20    It is hereby declared to have been the intent of the
21General Assembly that this Section not be subject to repeal on
22December 31, 2014.
23    This Section shall be deemed to have been in continuous
24effect since December 20, 2011 (the effective date of Public
25Act 97-643), and it shall continue to be in effect henceforward
26until it is otherwise lawfully repealed. All previously enacted

 

 

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1amendments to this Section taking effect on or after December
231, 2014, are hereby validated.
3    All actions taken in reliance on or pursuant to this
4Section by any public institution of higher education, person,
5or entity are hereby validated.
6    In order to ensure the continuing effectiveness of this
7Section, it is set forth in full and re-enacted by this
8amendatory Act of the 100th General Assembly. This re-enactment
9is intended as a continuation of this Section. It is not
10intended to supersede any amendment to this Section that is
11enacted by the 100th General Assembly.
12    In this amendatory Act of the 100th General Assembly, the
13base text of the reenacted Section is set forth as amended by
14Public Act 98-1076. Striking and underscoring is used only to
15show changes being made to the base text.
16    This Section applies to all procurements made on or before
17the effective date of this amendatory Act of the 100th General
18Assembly.
19(Source: P.A. 100-43, eff. 8-9-17.)