Illinois General Assembly - Full Text of HB3699
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Full Text of HB3699  102nd General Assembly

HB3699 102ND GENERAL ASSEMBLY

  
  

 


 
102ND GENERAL ASSEMBLY
State of Illinois
2021 and 2022
HB3699

 

Introduced 2/22/2021, by Rep. Jay Hoffman

 

SYNOPSIS AS INTRODUCED:
 
30 ILCS 517/3 new
30 ILCS 517/5
30 ILCS 517/7 new
30 ILCS 517/10
30 ILCS 517/13 new
30 ILCS 517/25
30 ILCS 517/35 new

    Amends the Procurement of Domestic Products Act. Establishes the Made in Illinois and America Office as a department under the jurisdiction of the Executive Ethics Commission. Provides for the appointed of a Director of the Office. Provides for duties of the Office. Provides for the adoption of rules regarding the Office. Provides that purchasing agencies shall promote the purchase of and give preference to manufactured articles, materials, and supplies that have been manufactured in Illinois (currently, the United States). Provides that, if the purchasing agency determines that certain conditions apply to a procured product, then, with respect to that procurement, the purchasing agency shall give preference to manufactured articles, materials, and supplies that have been manufactured in the United States. Provides waiver requirements under the Act. Requires purchasing agencies to submit compliance reports. Defines terms. Makes conforming changes. Effective immediately.


LRB102 14093 RJF 19445 b

 

 

A BILL FOR

 

HB3699LRB102 14093 RJF 19445 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 Procurement of Domestic Products Act is
5amended by changing Sections 5, 10, and 25 and by adding
6Sections 3, 7, 13, and 35 as follows:
 
7    (30 ILCS 517/3 new)
8    Sec. 3. Policy. It is the policy of Illinois that the State
9government should, consistent with applicable law, use terms
10and conditions of State financial assistance awards and State
11procurements to maximize the use of goods, products, and
12materials produced in, and services offered in, Illinois. An
13Illinois purchasing agency should, whenever possible, procure
14goods, products, materials, and services from sources that
15will help Illinois businesses compete in strategic industries
16and help Illinois workers thrive.
 
17    (30 ILCS 517/5)
18    Sec. 5. Definitions. As used in this Act:
19    "Component" and "cost of components" have the meanings
20given to those terms in the federal Buy American Act of 1933
21and as provided under Part 25.003 of the Federal Acquisition
22Regulation.

 

 

HB3699- 2 -LRB102 14093 RJF 19445 b

1    "Manufactured in Illinois" means: (1) in the case of
2products that are not assembled articles, materials, or
3supplies, that the product is mined or produced in Illinois;
4(2) in the case of assembled articles, materials, or supplies,
5that design, final assembly, processing, packaging, testing,
6or other process that adds value, quality, or reliability
7occurs in Illinois and the cost of components produced in
8Illinois exceeds 50% of the cost of all of the components; or
9(3) that the product is a commercially available off-the-shelf
10item.
11    "Manufactured in the United States" means: (1) in the case
12of products that are not assembled articles, materials, or
13supplies, that the product is mined or produced in the United
14States; (2) , in the case of assembled articles, materials, or
15supplies, that design, final assembly, processing, packaging,
16testing, or other process that adds value, quality, or
17reliability occurs in the United States and the cost of
18domestic components exceeds 50% of the cost of all of the
19components; or (3) that the product is a commercially
20available off-the-shelf item.
21    "Procured products" means assembled articles, materials,
22or supplies purchased by a State agency.
23    "Purchasing agency" has the same meaning as provided under
24Section 1-15.70 of the Illinois Procurement Code means a State
25agency.
26    "State agency" has the same meaning as provided under

 

 

HB3699- 3 -LRB102 14093 RJF 19445 b

1Section 1-15.100 of the Illinois Procurement Code means each
2agency, department, authority, board, or commission of the
3executive branch of State government, including each
4university, whether created by statute or by executive order
5of the Governor.
6    "United States" means the United States and any place
7subject to the jurisdiction of the United States.
8(Source: P.A. 98-463, eff. 8-16-13.)
 
9    (30 ILCS 517/7 new)
10    Sec. 7. Made in Illinois and America Office. The Made in
11Illinois and America Office is hereby established as a
12department under the jurisdiction of the Executive Ethics
13Commission. The Office shall be headed by a Director who shall
14be appointed by the Commission from among one of the chief
15procurement officers established under Section 10-20 of the
16Illinois Procurement Code. The Director and the Office shall
17perform all duties as provided under this Act and as may be
18prescribed by the Executive Ethics Commission. The Commission
19shall adopt all rules necessary for the implementation of this
20Section.
 
21    (30 ILCS 517/10)
22    Sec. 10. Domestic United States products.
23    (a) Each purchasing agency making purchases of procured
24products shall promote the purchase of and give preference to

 

 

HB3699- 4 -LRB102 14093 RJF 19445 b

1manufactured articles, materials, and supplies that have been
2manufactured in Illinois the United States. Procured products
3manufactured in Illinois the United States shall be specified
4and purchased unless the purchasing agency determines that any
5of the following applies:
6        (1) The procured products are not manufactured in
7    Illinois the United States in reasonably available
8    quantities.
9        (2) The price of the procured products manufactured in
10    Illinois the United States exceeds by an unreasonable
11    amount the price of available and comparable procured
12    products manufactured outside of Illinois the United
13    States by 12% or more. To be eligible for an exemption
14    under this paragraph (2), the purchasing agency must first
15    obtain a waiver as provided under Section 13.
16        (3) The quality of the procured products manufactured
17    in Illinois the United States is substantially less than
18    the quality of the comparably priced, available, and
19    comparable procured products manufactured outside of
20    Illinois the United States.
21        (4) The purchase of the procured products manufactured
22    outside of Illinois the United States better serves the
23    public interest by helping to protect or save life,
24    property, or the environment.
25        (5) The purchase of the procured products is made in
26    conjunction with contracts or offerings of

 

 

HB3699- 5 -LRB102 14093 RJF 19445 b

1    telecommunications, fire suppression, security systems,
2    communications services, Internet services, or information
3    services.
4        (6) The purchase is of pharmaceutical products, drugs,
5    biologics, vaccines, medical devices used to provide
6    medical and health care or treat disease or used in
7    medical or research diagnostic tests, and medical
8    nutritionals regulated by the Food and Drug Administration
9    under the federal Food, Drug and Cosmetic Act.
10    (b) If the purchasing agency determines that any of
11paragraphs (1) through (4) of subsection (a) applies to a
12procured product, then, with respect to that procurement, the
13purchasing agency shall give preference to manufactured
14articles, materials, and supplies that have been manufactured
15in the United States. In that case, procured products
16manufactured in the United States shall be specified and
17purchased unless the purchasing agency determines that any of
18the following applies:
19        (1) The procured products are not manufactured in the
20    United States in reasonably available quantities.
21        (2) The price of the procured products manufactured in
22    the United States exceeds the price of available and
23    comparable procured products manufactured outside the
24    United States by 12% or more. To be eligible for an
25    exemption under this paragraph (2), the purchasing agency
26    must first obtain a waiver as provided under Section 13.

 

 

HB3699- 6 -LRB102 14093 RJF 19445 b

1        (3) The quality of the procured products manufactured
2    in the United States is substantially less than the
3    quality of the comparably priced, available, and
4    comparable procured products manufactured outside the
5    United States.
6        (4) The purchase of the procured products manufactured
7    outside the United States better serves the public
8    interest by helping to protect or save life, property, or
9    the environment.
10        (5) The purchase of the procured products is made in
11    conjunction with contracts or offerings of
12    telecommunications, fire suppression, security systems,
13    communications services, Internet services, or information
14    services.
15        (6) The purchase is of pharmaceutical products, drugs,
16    biologics, vaccines, medical devices used to provide
17    medical and health care or treat disease or used in
18    medical or research diagnostic tests, and medical
19    nutritionals regulated by the Food and Drug Administration
20    under the federal Food, Drug and Cosmetic Act.
21    (c) In determining the price of procured products for
22purposes of this Section, consideration shall be given to the
23life-cycle cost, including maintenance and repair of those
24procured products.
25(Source: P.A. 93-954, eff. 1-1-05; 94-540, eff. 1-1-06.)
 

 

 

HB3699- 7 -LRB102 14093 RJF 19445 b

1    (30 ILCS 517/13 new)
2    Sec. 13. Waiver.
3    (a) Before any purchasing agency may be granted a waiver
4from the purchase of products made in Illinois or the United
5States under this Act, and unless the Executive Ethics
6Commission provides otherwise, the purchasing agency shall
7provide the Made in Illinois and America Office with a
8description of its proposed waiver and a detailed
9justification for the use of goods, products, or materials
10that have not been mined, produced, or manufactured in either
11this State or the United States as a whole.
12    (b) The Made in Illinois and America Office shall publish
13all relevant information that purchasing agencies shall
14include when submitting descriptions of proposed waivers and
15justifications to the Office. The Office shall also establish
16a deadline, not to exceed 15 business days, by which
17purchasing agencies seeking a waiver shall either be: (i)
18notified that review of the proposed waiver has been excused;
19or (ii) notified of the result of the proposed waiver review.
20    (c) The Made in Illinois and America Office, in
21consultation with the Executive Ethics Commission, shall
22review each proposed waiver submitted under subsection (b),
23except when waiver review has been excused. If it is
24determined that issuing the proposed waiver would be
25consistent with applicable law and the policy set forth in
26this Act, then the purchasing agency shall be notified of that

 

 

HB3699- 8 -LRB102 14093 RJF 19445 b

1determination in writing. If it is determined that issuing the
2proposed waiver would not be consistent with applicable law or
3the policy set forth in this Act, then the purchasing agency
4shall be notified of that determination, and the proposed
5waiver shall be returned to the purchasing agency for further
6consideration along with a written explanation for the
7determination.
8    (d) When a purchasing agency is obligated by law to act
9more quickly than the review procedures established in this
10Section allow, the purchasing agency shall notify the Made in
11Illinois and America Office as soon as possible and, to the
12extent practicable, comply with the requirements set forth in
13this Section. Nothing in this Section shall be construed as a
14displacing purchasing agencies' authorities or
15responsibilities under law.
16    (e) The Made in Illinois and America Office shall make
17available to the public on the Internet website of the
18Executive Ethics Commission all information concerning
19proposed waivers and whether those waivers have been granted
20for the purpose of enabling manufacturers and other interested
21parties to easily identify proposed waivers, and whether such
22waivers would be granted. To the extent permitted by law,
23descriptions of proposed waivers and justifications submitted
24by purchasing agencies to the Office shall also be made
25publicly available on the website. The website shall also
26include contact information for the Office and the Executive

 

 

HB3699- 9 -LRB102 14093 RJF 19445 b

1Ethics Commission.
 
2    (30 ILCS 517/25)
3    Sec. 25. Penalties. If a contractor is awarded a contract
4through the use of a preference under this Act and knowingly
5supplies procured products under that contract that are not
6manufactured in Illinois or the United States, as applicable,
7then (i) the contractor is barred from obtaining any State
8contract for a period of 5 years after the violation is
9discovered by the purchasing agency, (ii) the purchasing
10agency may void the contract, and (iii) the purchasing agency
11may recover damages in a civil action in an amount 3 times the
12value of the preference.
13(Source: P.A. 93-954, eff. 1-1-05; 94-540, eff. 1-1-06.)
 
14    (30 ILCS 517/35 new)
15    Sec. 35. Compliance reports. Beginning within 180 days
16after the effective date of this amendatory Act of the 102nd
17General Assembly, and bi-annually thereafter, each purchasing
18agency shall submit to the Made in Illinois and America Office
19a report on: (i) the purchasing agency's compliance with the
20Act; (ii) the purchasing agency's ongoing use of waivers, if
21any; (iii) the purchasing agency's analysis of goods,
22products, materials, and services not subject to the Act or
23where requirements of the Act have been waived; and (iv) any
24recommendations for how to further effectuate the policy set

 

 

HB3699- 10 -LRB102 14093 RJF 19445 b

1forth in this Act.
 
2    Section 99. Effective date. This Act takes effect upon
3becoming law.