HB3478 100TH GENERAL ASSEMBLY

LRB100 10704 MLM 20930 b

100TH GENERAL ASSEMBLY
State of Illinois
2017 and 2018
HB3478

Introduced , by Rep. Sara Wojcicki Jimenez

SYNOPSIS AS INTRODUCED:

30 ILCS 500/5-5
30 ILCS 500/5-30
30 ILCS 500/20-20
30 ILCS 500/20-170 new
30 ILCS 525/2	from Ch. 85, par. 1602

Amends the Illinois Procurement Code. Requires State agencies to respond promptly in writing to all inquiries and comments of the Procurement Policy Board. Lowers certain notice requirements from 30 days to 14. Increases the small purchase threshold to $100,000. Creates a Special Committee on Procurement Efficiency, Minority, Female, and Veterans Contracting, and Illinois Preference in Purchasing. Sets forth membership and goals of the Special Committee. Amends the Governmental Joint Purchasing Act. Allows a chief procurement officer to authorize the purchase or lease of personal property, supplies, and services which have been procured through a competitive process by a federal agency or consortium of entities. Requires the filing of certain reports. Effective January 1, 2018.

A BILL FOR

AN ACT concerning finance.

Be it enacted by the People of the State of Illinois, represented in the General Assembly:

Section 5. The Illinois Procurement Code is amended by changing Sections 5-5, 5-30, 20-20, and 20-170 as follows:

(30 ILCS 500/5-5)

Sec. 5-5. Procurement Policy Board.

(a) Creation. There is created a Procurement Policy Board, an agency of the State of Illinois.

(b) Authority and duties. The Board shall have the authority and responsibility to review, comment upon, and recommend, consistent with this Code, rules and practices governing the procurement, management, control, and disposal of supplies, services, professional or artistic services, construction, and real property and capital improvement leases procured by the State. The Board shall also have the authority to recommend a program for professional development and provide opportunities for training in procurement practices and policies to chief procurement officers and their staffs in order to ensure that all procurement is conducted in an efficient, professional, and appropriately transparent manner.

Upon a three-fifths vote of its members, the Board may review a contract. Upon a three-fifths vote of its members, the Board may propose procurement rules for consideration by chief procurement officers. These proposals shall be published in each volume of the Procurement Bulletin. Except as otherwise provided by law, the Board shall act upon the vote of a majority of its members who have been appointed and are serving.

(b-5) Reviews, studies, and hearings. The Board may review, study, and hold public hearings concerning the implementation and administration of this Code. Each chief procurement officer, State purchasing officer, procurement compliance monitor, and State agency shall cooperate with the Board, provide information to the Board, and be responsive to the Board in the Board's conduct of its reviews, studies, and hearings.

(c) Members. The Board shall consist of 5 members appointed one each by the 4 legislative leaders and the Governor. Each member shall have demonstrated sufficient business or professional experience in the area of procurement to perform the functions of the Board. No member may be a member of the General Assembly.

(d) Terms. Of the initial appointees, the Governor shall designate one member, as Chairman, to serve a one-year term, the President of the Senate and the Speaker of the House shall each appoint one member to serve 3-year terms, and the Minority Leader of the House and the Minority Leader of the Senate shall each appoint one member to serve 2-year terms. Subsequent terms shall be 4 years. Members may be reappointed for succeeding terms.

(e) Reimbursement. Members shall receive no compensation but shall be reimbursed for any expenses reasonably incurred in the performance of their duties.

(f) Staff support. Upon a three-fifths vote of its members, the Board may employ an executive director. Subject to appropriation, the Board also may employ a reasonable and necessary number of staff persons.

(g) Meetings. Meetings of the Board may be conducted telephonically, electronically, or through the use of other telecommunications. Written minutes of such meetings shall be created and available for public inspection and copying.

(h) Procurement recommendations. Upon a three-fifths vote of its members, the Board may review a proposal, bid, or contract and issue a recommendation to void a contract or reject a proposal or bid based on any violation of this Code or the existence of a conflict of interest as described in subsections (b) and (d) of Section 50-35. A chief procurement officer or State purchasing officer shall notify the Board if an alleged conflict of interest or violation of the Code is identified, discovered, or reasonably suspected to exist. Any person or entity may notify the Board of an alleged conflict of interest or violation of the Code. A recommendation of the Board shall be delivered to the appropriate chief procurement officer and Executive Ethics Commission within 7 calendar days and must be published in the next volume of the Procurement Bulletin. In the event that an alleged conflict of interest or violation of the Code that was not originally disclosed with the bid, offer, or proposal is identified and filed with the Board, the Board shall provide written notice of the alleged conflict of interest or violation to the bidder, offeror, potential contractor, contractor, or subcontractor on that contract. If the alleged conflict of interest or violation is by the subcontractor, written notice shall also be provided to the bidder, offeror, potential contractor, or contractor. The bidder, offeror, potential contractor, contractor, or subcontractor shall have 15 calendar days to provide a written response to the notice, and a hearing before the Board on the alleged conflict of interest or violation shall be held upon request by the bidder, offeror, potential contractor, contractor, or subcontractor. The requested hearing date and time shall be determined by the Board, but in no event shall the hearing occur later than 15 calendar days after the date of the request.

(i) After providing notice and a hearing as required by subsection (h), the Board shall refer any alleged violations of this Code to the Executive Inspector General in addition to or instead of issuing a recommendation to void a contract.

(j) Each State agency must respond promptly in writing to all inquiries and comments of the Procurement Policy Board.

(Source: P.A. 97-895, eff. 8-3-12; 98-1076, eff. 1-1-15.)

(30 ILCS 500/5-30)

Sec. 5-30. Proposed contracts; Procurement Policy Board.

(a) Except as provided in subsection (c), within 14 30 calendar days after notice of the awarding or letting of a contract has appeared in the Procurement Bulletin in accordance with subsection (b) of Section 15-25, the Board may request in writing from the contracting agency and the contracting agency shall promptly, but in no event later than 7 calendar days after receipt of the request, provide to the Board, by electronic or other means satisfactory to the Board, documentation in the possession of the contracting agency concerning the proposed contract. Nothing in this subsection is intended to waive or abrogate any privilege or right of confidentiality authorized by law.

(b) No contract subject to this Section may be entered into until the 14-day 30-day period described in subsection (a) has expired, unless the contracting agency requests in writing that the Board waive the period and the Board grants the waiver in writing.

(c) This Section does not apply to (i) contracts entered into under this Code for small and emergency procurements as those procurements are defined in Article 20 and (ii) contracts for professional and artistic services that are nonrenewable, one year or less in duration, and have a value of less than $20,000. If requested in writing by the Board, however, the contracting agency must promptly, but in no event later than 10 calendar days after receipt of the request, transmit to the Board a copy of the contract for an emergency procurement and documentation in the possession of the contracting agency concerning the contract.

(Source: P.A. 98-1076, eff. 1-1-15.)

(30 ILCS 500/20-20)

Sec. 20-20. Small purchases.

(a) Amount. Any individual procurement of supplies or services other than professional or artistic services, not exceeding $100,000 $10,000 and any procurement of construction not exceeding $100,000, or any individual procurement of professional or artistic services not exceeding $100,000 $30,000 may be made without competitive source selection sealed bidding. Procurements shall not be artificially divided so as to constitute a small purchase under this Section. Any procurement of construction not exceeding $100,000 may be made by an alternative competitive source selection. The construction agency shall establish rules for an alternative competitive source selection process. This Section does not apply to construction-related professional services contracts awarded in accordance with the provisions of the Architectural, Engineering, and Land Surveying Qualifications Based Selection Act.

(b) Adjustment. Each July 1, the small purchase maximum established in subsection (a) shall be adjusted for inflation as determined by the Consumer Price Index for All Urban Consumers as determined by the United States Department of Labor and rounded to the nearest $100.

(c) Based upon rules proposed by the Board and rules promulgated by the chief procurement officers, the small purchase maximum established in subsection (a) may be modified.

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

(30 ILCS 500/20-170 new)

Sec. 20-170. Special Committee on Procurement Efficiency, Minority, Female, and Veterans Contracting, and Illinois Preference in Purchasing.

(a) The Special Committee on Procurement Efficiency, Minority, Female, and Veterans Contracting, and Illinois Preference in Purchasing is hereby created under the Executive Ethics Commission. The Special Committee shall consist of the following members:

(1) three members appointed by the President of the Senate, only one of whom may be a current member of the Senate;

(2) three members appointed by the Minority Leader of the Senate, only one of whom may be a current member of the Senate;

(3) three members appointed by the Speaker of the House of Representatives, only one of whom may be a current member of the House;

(4) three members appointed by the Minority Leader of the House, only one of whom may be a current member of the House;

(5) the Director of Central Management Services or his or her designee;

(6) the Chief Procurement Officer for general services;

(7) the Chief Procurement Officer for the Department of Transportation;

(8) the Chief Procurement Officer with jurisdiction over institutions of higher education; and

(9) the Executive Director of the Capital Development Board or his or her designee.

(b) Members of the Special Committee must be appointed no later than 30 days after the effective date of this amendatory Act of the 100th General Assembly.

(c) If a vacancy occurs on the Special Committee, it shall be filled according to the guidelines of the initial appointment.

(d) The Special Committee shall elect a chairperson and vice-chairperson at the first meeting of the Special Committee. At the discretion of the chairperson, additional individuals may participate as non-voting members in the meetings of the Special Committee.

(e) Members of the Special Committee shall serve without compensation. The Executive Ethics Commission shall provide staff and administrative services to the Special Committee.

(f) The Special Committee shall conduct at least 3 hearings with at least one in Springfield and one in Chicago. Each hearing shall be open to the public and notice of such hearings shall be posted on the websites of the Procurement Policy Board, the Department of Central Management Services, and the General Assembly at least 6 days prior to the hearing.

(g) The Special Committee on Procurement Efficiency and Illinois Preference in Purchasing shall:

(1) review the current procurement process in Illinois to determine what inefficacies currently exist in the State procurement process and propose legislation to reduce inefficacies while protecting State funds, ethics, and transparency;

(2) review Illinois' procurement laws regarding contracting with minority-owned businesses, female-owned businesses, businesses owned by persons with disabilities, and veteran-owned businesses to determine what changes should be made to increase participation of these businesses in State procurements; and

(3) review Illinois' resident bidder preference laws and propose legislation aimed at strengthening Illinois' resident bidder preference laws while not harming resident bidders who do business in other states.

(h) The Special Committee shall make its findings and recommendations to the General Assembly and to the Governor, including legislative proposals, no later than December 31, 2018.

(i) This Section is repealed on January 31, 2019.

Section 10. The Governmental Joint Purchasing Act is amended by changing Section 2 as follows:

(30 ILCS 525/2) (from Ch. 85, par. 1602)

Sec. 2. Joint purchasing authority.

(a) Any governmental unit may purchase personal property, supplies and services jointly with one or more other governmental units. All such joint purchases shall be by competitive solicitation as provided in Section 4 of this Act. The provisions of any other acts under which a governmental unit operates which refer to purchases and procedures in connection therewith shall be superseded by the provisions of this Act when the governmental units are exercising the joint powers created by this Act.

(a-5) A chief procurement officer established in Section 10-20 of the Illinois Procurement Code may authorize the purchase of personal property, supplies, and services jointly with a governmental entity of this or another state or with a consortium of governmental entities of one or more other states. Subject to provisions of the joint purchasing solicitation, the appropriate chief procurement officer may designate the resulting contract as available to governmental units in Illinois. The chief procurement officers shall submit to the General Assembly by November 1 of each year a report of procurements made under this subsection (a-5).

(a-10) Each chief procurement officer appointed pursuant to Section 10-20 of the Illinois Procurement Code may authorize the purchase or lease of personal property, supplies, and services which have been procured through a competitive process by a federal agency, a consortium of governmental, educational, medical, research, or similar entities, or group purchasing organizations of which the chief procurement officer or State agency is a member or affiliate, including, without limitation, any purchasing entity operating under the federal General Service Administration, the federal Higher Education Cooperative Act, and the Midwestern Higher Education Cooperation Act. A chief procurement officer may authorize purchases and contracts established by other means if the chief procurement officer determines it is in the best interests of the State. Each chief procurement officer may establish detailed rules and policies and procedures for use of these cooperative solicitations and contracts, including, without limitation, that the State agency make a determination that the award or contract is in the best interest of the State and that the contract include provisions required by Illinois law. Notice of awards or contracts shall be published by the chief procurement officer in the Illinois Procurement Bulletin at least 14 days prior to use of the award or contract. Each chief procurement officer shall submit to the General Assembly by November 1 of each year a report of procurements made under this subsection (a-10).

(b) Any not-for-profit agency that qualifies under Section 45-35 of the Illinois Procurement Code and that either (1) acts pursuant to a board established by or controlled by a unit of local government or (2) receives grant funds from the State or from a unit of local government, shall be eligible to participate in contracts established by the State.

(Source: P.A. 96-584, eff. 1-1-10; 97-895, eff. 8-3-12.)

Section 99. Effective date. This Act takes effect January 1, 2018.