HB1002sam001 93RD GENERAL ASSEMBLY

Sen. Don Harmon

Filed: 11/16/2004

09300HB1002sam001 LRB093 05691 MKM 54194 a

AMENDMENT TO HOUSE BILL 1002

AMENDMENT NO. ______. Amend House Bill 1002 by replacing everything after the enacting clause with the following:

"Section 5. The Illinois Procurement Code is amended by changing Section 20-60 and by adding Article 42.5 as follows:

(30 ILCS 500/20-60)

Sec. 20-60. Duration of contracts.

(a) Maximum duration. A contract may be entered into for any period of time deemed to be in the best interests of the State but not exceeding 10 years. The length of a lease for real property or capital improvements shall be in accordance with the provisions of Section 40-25. The length of bond, mortgage, or title insurance related to housing shall be in accordance with the provisions of Section 42.5-25.

(b) Subject to appropriation. All contracts made or entered into shall recite that they are subject to termination and cancellation in any year for which the General Assembly fails to make an appropriation to make payments under the terms of the contract.

(Source: P.A. 90-572, eff. date - See Sec. 99-5.)

(30 ILCS 500/Art. 42.5 heading new)

ARTICLE 42.5. BOND AND TITLE INSURANCE FOR HOUSING

(30 ILCS 500/42.5-5 new)

Sec. 42.5-5. Applicability. All policies of insurance for mortgage or title insurance related to housing or bond insurance for bonds issued to finance housing must be procured in accordance with the provisions of this Article.

(30 ILCS 500/42.5-10 new)

Sec. 42.5-10. Authority. State purchasing officers may procure mortgage and title insurance related to housing or to procure bond insurance for bonds issued to finance housing.

(30 ILCS 500/42.5-15 new)

Sec. 42.5-15. Method of source selection.

(a) Except as provided in Sections 20-20, 20-25, and 20-30, all contracts for title or bond insurance related to housing shall be awarded by a request for qualification process in accordance with Section 42.5-20.

(b) Mortgage insurance may be negotiated with private insurers or governmental entities without using a public bidding process.

(30 ILCS 500/42.5-20 new)

Sec. 42.5-20. Request for qualification process.

(a) Bond insurance and title insurance shall be procured by a request for qualification, except as provided in Section 42.5-15.

(b) A request for qualification shall be issued and may include:

(1) the type of bonds or property to be insured;

(2) the national reputation of the insurer;

(3) the capitalization of the insurer; and

(4) the rating of the insurer.

(c) Public notice of the request for qualification to provide bond or title insurance shall be published in the Illinois Procurement Bulletin at least 14 days before the date set forth in the request for receipt of responses.

(d) The response to the request for qualification shall consist of written information sufficient to show that the respondent can meet minimum criteria set forth in the request. The State purchasing officer may enter into discussions with respondents for the purpose of clarifying State needs and the information supplied by the respondents.

(e) Based upon the information received, the State purchasing officer shall develop a list of vendors qualified to issue bond and title insurance for the purchasing agency. A notice of award shall be published in the Procurement Bulletin listing all vendors qualified to provide the insurance for the purchasing agency.

(f) When needed, the purchasing agency shall solicit bids from each of the qualified vendors for the specific transaction contemplated. Qualified vendors have 5 days to respond; thereafter, an award must be made to the vendor with the lowest bid. The list of prequalified vendors must be updated periodically but in no event less than every 3 years. The purchasing agency may amend its notice of award at any time to delete those vendors that no longer meet its stated criteria.

(30 ILCS 500/42.5-25 new)

Sec. 42.5-25. Length of term.

(a) The length of the bond insurance shall be for a period equal to the maximum time the subject bonds may remain outstanding.

(b) The length of the mortgage insurance shall be equal to the term of the underlying mortgage.

(c) The title policy shall remain in effect for as long as the purchasing agency owns or is a mortgagee of the subject property.

Section 99. Effective date. This Act takes effect January 1, 2005.".