Full Text of HB2326 103rd General Assembly
HB2326 103RD GENERAL ASSEMBLY |
| | 103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024 HB2326 Introduced 2/14/2023, by Rep. La Shawn K. Ford SYNOPSIS AS INTRODUCED: |
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Amends the Illinois Procurement Code. Exempts from the Code's requirements procurement expenditures made by a public institution of higher education for the purchase of equipment or improvements for research facilities purchased with funds provided by a third party as part of a sponsored research agreement. Provides that the public institution of higher education shall maintain and publish a list of its procurements that are exempt under this provision categorized by procurement type and total expenditure.
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| | A BILL FOR |
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| 1 | | AN ACT concerning finance.
| 2 | | Be it enacted by the People of the State of Illinois,
| 3 | | represented in the General Assembly:
| 4 | | Section 5. The Illinois Procurement Code is amended by | 5 | | changing Section 1-13 as follows: | 6 | | (30 ILCS 500/1-13) | 7 | | Sec. 1-13. Applicability to public institutions of higher | 8 | | education. | 9 | | (a) This Code shall apply to public institutions of higher | 10 | | education, regardless of the source of the funds with which | 11 | | contracts are paid, except as provided in this Section. | 12 | | (b) Except as provided in this Section, this Code shall | 13 | | not apply to procurements made by or on behalf of public | 14 | | institutions of higher education for any of the following: | 15 | | (1) Memberships in professional, academic, research, | 16 | | or athletic organizations on behalf of a public | 17 | | institution of higher education, an employee of a public | 18 | | institution of higher education, or a student at a public | 19 | | institution of higher education. | 20 | | (2) Procurement expenditures for events or activities | 21 | | paid for exclusively by revenues generated by the event or | 22 | | activity, gifts or donations for the event or activity, | 23 | | private grants, or any combination thereof. |
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| 1 | | (3) Procurement expenditures for events or activities | 2 | | for which the use of specific potential contractors is | 3 | | mandated or identified by the sponsor of the event or | 4 | | activity, provided that the sponsor is providing a | 5 | | majority of the funding for the event or activity. | 6 | | (4) Procurement expenditures necessary to provide | 7 | | athletic, artistic or musical services, performances, | 8 | | events, or productions by or for a public institution of | 9 | | higher education. | 10 | | (5) Procurement expenditures for periodicals, books, | 11 | | subscriptions, database licenses, and other publications | 12 | | procured for use by a university library or academic | 13 | | department, except for expenditures related to procuring | 14 | | textbooks for student use or materials for resale or | 15 | | rental. | 16 | | (6) Procurement expenditures for placement of students | 17 | | in externships, practicums, field experiences, and for | 18 | | medical residencies and rotations. | 19 | | (7) Contracts for programming and broadcast license | 20 | | rights for university-operated radio and television | 21 | | stations. | 22 | | (8) Procurement expenditures necessary to perform | 23 | | sponsored research and other sponsored activities under | 24 | | grants and contracts funded by the sponsor or by sources | 25 | | other than State appropriations. | 26 | | (9) Contracts with a foreign entity for research or |
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| 1 | | educational activities, provided that the foreign entity | 2 | | either does not maintain an office in the United States or | 3 | | is the sole source of the service or product. | 4 | | (10) Procurement expenditures for any ongoing software | 5 | | license or maintenance agreement or competitively | 6 | | solicited software purchase, when the software, license, | 7 | | or maintenance agreement is available through only the | 8 | | software creator or its manufacturer and not a reseller. | 9 | | (11) Procurement expenditures incurred outside of the | 10 | | United States for the recruitment of international | 11 | | students. | 12 | | (12) Procurement expenditures made by a public | 13 | | institution of higher education for purchases of equipment | 14 | | or improvements for research facilities purchased with | 15 | | funds provided by a third party as part of a sponsored | 16 | | research agreement. For procurements made pursuant to this | 17 | | paragraph (12), the public institution of higher education | 18 | | shall maintain and publish a list of all such purchases | 19 | | and list them by category and total expenditure. | 20 | | Notice of each contract with an annual value of more than | 21 | | $100,000 entered into by a public institution of higher | 22 | | education that is related to the procurement of goods and | 23 | | services identified in items (1) through (11) of this | 24 | | subsection shall be published in the Procurement Bulletin | 25 | | within 14 calendar days after contract execution. The Chief | 26 | | Procurement Officer shall prescribe the form and content of |
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| 1 | | the notice. Each public institution of higher education shall | 2 | | provide the Chief Procurement Officer, on a monthly basis, in | 3 | | the form and content prescribed by the Chief Procurement | 4 | | Officer, a report of contracts that are related to the | 5 | | procurement of goods and services identified in this | 6 | | subsection. At a minimum, this report shall include the name | 7 | | of the contractor, a description of the supply or service | 8 | | provided, the total amount of the contract, the term of the | 9 | | contract, and the exception to the Code utilized. A copy of any | 10 | | or all of these contracts shall be made available to the Chief | 11 | | Procurement Officer immediately upon request. The Chief | 12 | | Procurement Officer shall submit a report to the Governor and | 13 | | General Assembly no later than November 1 of each year that | 14 | | shall include, at a minimum, an annual summary of the monthly | 15 | | information reported to the Chief Procurement Officer. | 16 | | (b-5) Except as provided in this subsection, the | 17 | | provisions of this Code shall not apply to contracts for | 18 | | medical supplies or to contracts for medical services | 19 | | necessary for the delivery of care and treatment at medical, | 20 | | dental, or veterinary teaching facilities used by Southern | 21 | | Illinois University or the University of Illinois or at any | 22 | | university-operated health care center or dispensary that | 23 | | provides care, treatment, and medications for students, | 24 | | faculty, and staff. Furthermore, the provisions of this Code | 25 | | do not apply to the procurement by such a facility of any | 26 | | additional supplies or services that the operator of the |
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| 1 | | facility deems necessary for the effective use and functioning | 2 | | of the medical supplies or services that are otherwise exempt | 3 | | from this Code under this subsection (b-5). However, other | 4 | | supplies and services needed for these teaching facilities | 5 | | shall be subject to the jurisdiction of the Chief Procurement | 6 | | Officer for Public Institutions of Higher Education who may | 7 | | establish expedited procurement procedures and may waive or | 8 | | modify certification, contract, hearing, process and | 9 | | registration requirements required by the Code. All | 10 | | procurements made under this subsection shall be documented | 11 | | and may require publication in the Illinois Procurement | 12 | | Bulletin. | 13 | | (b-10) Procurements made by or on behalf of the University | 14 | | of Illinois for investment services may be entered into or | 15 | | renewed without being subject to the requirements of this | 16 | | Code. Notice of intent to renew a contract shall be published | 17 | | in the Illinois Public Higher Education Procurement Bulletin | 18 | | at least 14 days prior to the execution of a renewal, and the | 19 | | University of Illinois shall hold a public hearing for | 20 | | interested parties to provide public comment. Any contract | 21 | | extended, renewed, or entered pursuant to this exception shall | 22 | | be published in the Illinois Public Higher Education | 23 | | Procurement Bulletin within 5 days of contract execution. | 24 | | (c) Procurements made by or on behalf of public | 25 | | institutions of higher education for the fulfillment of a | 26 | | grant shall be made in accordance with the requirements of |
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| 1 | | this Code to the extent practical. | 2 | | Upon the written request of a public institution of higher | 3 | | education, the Chief Procurement Officer may waive contract, | 4 | | registration, certification, and hearing requirements of this | 5 | | Code if, based on the item to be procured or the terms of a | 6 | | grant, compliance is impractical. The public institution of | 7 | | higher education shall provide the Chief Procurement Officer | 8 | | with specific reasons for the waiver, including the necessity | 9 | | of contracting with a particular potential contractor, and | 10 | | shall certify that an effort was made in good faith to comply | 11 | | with the provisions of this Code. The Chief Procurement | 12 | | Officer shall provide written justification for any waivers. | 13 | | By November 1 of each year, the Chief Procurement Officer | 14 | | shall file a report with the General Assembly identifying each | 15 | | contract approved with waivers and providing the justification | 16 | | given for any waivers for each of those contracts. Notice of | 17 | | each waiver made under this subsection shall be published in | 18 | | the Procurement Bulletin within 14 calendar days after | 19 | | contract execution. The Chief Procurement Officer shall | 20 | | prescribe the form and content of the notice. | 21 | | (d) Notwithstanding this Section, a waiver of the | 22 | | registration requirements of Section 20-160 does not permit a | 23 | | business entity and any affiliated entities or affiliated | 24 | | persons to make campaign contributions if otherwise prohibited | 25 | | by Section 50-37. The total amount of contracts awarded in | 26 | | accordance with this Section shall be included in determining |
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| 1 | | the aggregate amount of contracts or pending bids of a | 2 | | business entity and any affiliated entities or affiliated | 3 | | persons. | 4 | | (e) Notwithstanding subsection (e) of Section 50-10.5 of | 5 | | this Code, the Chief Procurement Officer, with the approval of | 6 | | the Executive Ethics Commission, may permit a public | 7 | | institution of higher education to accept a bid or enter into a | 8 | | contract with a business that assisted the public institution | 9 | | of higher education in determining whether there is a need for | 10 | | a contract or assisted in reviewing, drafting, or preparing | 11 | | documents related to a bid or contract, provided that the bid | 12 | | or contract is essential to research administered by the | 13 | | public institution of higher education and it is in the best | 14 | | interest of the public institution of higher education to | 15 | | accept the bid or contract. For purposes of this subsection, | 16 | | "business" includes all individuals with whom a business is | 17 | | affiliated, including, but not limited to, any officer, agent, | 18 | | employee, consultant, independent contractor, director, | 19 | | partner, manager, or shareholder of a business. The Executive | 20 | | Ethics Commission may promulgate rules and regulations for the | 21 | | implementation and administration of the provisions of this | 22 | | subsection (e). | 23 | | (f) As used in this Section: | 24 | | "Grant" means non-appropriated funding provided by a | 25 | | federal or private entity to support a project or program | 26 | | administered by a public institution of higher education and |
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| 1 | | any non-appropriated funding provided to a sub-recipient of | 2 | | the grant. | 3 | | "Public institution of higher education" means Chicago | 4 | | State University, Eastern Illinois University, Governors State | 5 | | University, Illinois State University, Northeastern Illinois | 6 | | University, Northern Illinois University, Southern Illinois | 7 | | University, University of Illinois, Western Illinois | 8 | | University, and, for purposes of this Code only, the Illinois | 9 | | Mathematics and Science Academy. | 10 | | (g) (Blank).
| 11 | | (h) The General Assembly finds and declares that: | 12 | | (1) Public Act 98-1076, which took effect on January | 13 | | 1, 2015, changed the repeal date set for this Section from | 14 | | December 31, 2014 to December 31, 2016. | 15 | | (2) The Statute on Statutes sets forth general rules | 16 | | on the repeal of statutes and the construction of multiple | 17 | | amendments, but Section 1 of that Act also states that | 18 | | these rules will not be observed when the result would be | 19 | | "inconsistent with the manifest intent of the General | 20 | | Assembly or repugnant to the context of the statute". | 21 | | (3) This amendatory Act of the 100th General Assembly | 22 | | manifests the intention of the General Assembly to remove | 23 | | the repeal of this Section. | 24 | | (4) This Section was originally enacted to protect, | 25 | | promote, and preserve the general welfare. Any | 26 | | construction of this Section that results in the repeal of |
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| 1 | | this Section on December 31, 2014 would be inconsistent | 2 | | with the manifest intent of the General Assembly and | 3 | | repugnant to the context of this Code. | 4 | | It is hereby declared to have been the intent of the | 5 | | General Assembly that this Section not be subject to repeal on | 6 | | December 31, 2014. | 7 | | This Section shall be deemed to have been in continuous | 8 | | effect since December 20, 2011 (the effective date of Public | 9 | | Act 97-643), and it shall continue to be in effect | 10 | | henceforward until it is otherwise lawfully repealed. All | 11 | | previously enacted amendments to this Section taking effect on | 12 | | or after December 31, 2014, are hereby validated. | 13 | | All actions taken in reliance on or pursuant to this | 14 | | Section by any public institution of higher education, person, | 15 | | or entity are hereby validated. | 16 | | In order to ensure the continuing effectiveness of this | 17 | | Section, it is set forth in full and re-enacted by this | 18 | | amendatory Act of the 100th General Assembly. This | 19 | | re-enactment is intended as a continuation of this Section. It | 20 | | is not intended to supersede any amendment to this Section | 21 | | that is enacted by the 100th General Assembly. | 22 | | In this amendatory Act of the 100th General Assembly, the | 23 | | base text of the reenacted Section is set forth as amended by | 24 | | Public Act 98-1076. Striking and underscoring is used only to | 25 | | show changes being made to the base text. | 26 | | This Section applies to all procurements made on or before |
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| 1 | | the effective date of this amendatory Act of the 100th General | 2 | | Assembly. | 3 | | (Source: P.A. 101-640, eff. 6-12-20; 102-16, eff. 6-17-21; | 4 | | 102-721, eff. 5-6-22; 102-1119, eff. 1-23-23.)
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