HB4345 103RD GENERAL ASSEMBLY

LRB103 35780 RLC 65862 b

103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024
HB4345

Introduced 1/16/2024, by Rep. Chris Miller

SYNOPSIS AS INTRODUCED:

New Act
30 ILCS 500/1-10
765 ILCS 60/7	from Ch. 6, par. 7

Creates the Foreign Land Ownership and Foreign Countries of Concern Act. Provides that a foreign principal may not directly or indirectly own, have a controlling interest in, or acquire by purchase, grant, devise, or descent agricultural land or any interest, except a de minimis indirect interest, in such land in the State. Provides that a foreign principal has a de minimis indirect interest if any ownership is the result of the foreign principal's ownership of registered equities in a publicly traded company owning the land and if the foreign principal's ownership interest in the company is either: (1) less than 5% of any class of registered equities or less than 5% in the aggregate in multiple classes of registered equities; or a noncontrolling interest in an entity controlled by a company that is both registered with the United States Securities and Exchange Commission as an investment adviser under the federal Investment Advisers Act of 1940, as amended, and is not a foreign entity. Provides for registration of certain foreign-owned property. Establishes requirements for acquiring foreign-owned land on or after the effective date of the Act. Provides that a foreign principal may not directly or indirectly own, or have a controlling interest in, or acquire by purchase, grant, devise, or descent any interest, except a de minimis indirect interest, in real property on or within 10 miles of any military installation or critical infrastructure facility in the State. Provides that persons or entities may not directly or indirectly own, have a controlling interest in, or acquire by purchase, grant, devise, or descent any interest, except a de minimis indirect interest, in real property in the State if the person or entity is: the People's Republic of China, the Chinese Communist Party, or any official or member of the People's Republic of China or the Chinese Communist Party, a business principally located in the People's Republic of China of or its subsidiaries, or any person who is domiciled in the People's Republic of China and who is not a citizen or lawful permanent resident of the United States. Provides exemptions. Makes other changes. Amends the Illinois Procurement Code and the Property Owned By Noncitizens Act to make conforming changes.

A BILL FOR

AN ACT concerning civil law.

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

Section 1. Short title. This Act may be cited as the Foreign Land Ownership and Foreign Countries of Concern Act.

Section 5. Definitions. In this Act:

"Agricultural land" means any land located in this State and used for agricultural, forestry, or timber production purposes, except agricultural land used primarily to meet pollution control laws or regulations, as determined by the Director of Agriculture under rules prescribed by the Director.

"Critical infrastructure facility" means any of the following, if it employs measures such as fences, barriers, or guard posts that are designed to exclude unauthorized persons:

(1) A chemical manufacturing facility.

(2) A refinery.

(3) An electric utility as defined in Section 3-105 of the Public Utilities Act.

(4) A water treatment facility or wastewater treatment plant.

(5) A liquid natural gas terminal.

(6) A telecommunications central switching office.

(7) A gas processing plant, including a plant used in the processing, treatment, or fractionation of natural gas.

(8) A port facility.

(9) An airport as defined in Section 1 of the Airport Authorities Act.

"Department" means the Department of Agriculture.

"Foreign country of concern" means the People's Republic of China, the Russian Federation, the Islamic Republic of Iran, the Democratic People's Republic of Korea, the Republic of Cuba, the Venezuelan regime of Nicolas Maduro, or the Syrian Arab Republic, including any agency of or any other entity of significant control of such foreign country of concern.

"Foreign principal" means:

(1) the government or any official of the government of a foreign country of concern;

(2) a political party or member of a political party or any subdivision of a political party in a foreign country of concern;

(3) a partnership, association, corporation, organization, or other combination of persons organized under the laws of or having its principal place of business in a foreign country of concern, or a subsidiary of such entity;

(4) any person who is domiciled in a foreign country of concern and is not a citizen or lawful permanent resident of the United States; or

(5) any person, entity, or collection of persons or entities, described in paragraphs (1) through (4) of this definition having a controlling interest in a partnership, association, corporation, organization, trust, or any other legal entity or subsidiary formed for the purpose of owning real property in this State.

"Military installation" means a base, camp, post, station, yard, or center encompassing at least 10 contiguous acres that is under the jurisdiction of the Department of Defense or its affiliates.

"Real property" means land, buildings, fixtures, and all other improvements to land.

Section 10. Purchase of agricultural land by foreign principals prohibited.

(a) A foreign principal may not directly or indirectly own, have a controlling interest in, or acquire by purchase, grant, devise, or descent agricultural land or any interest, except a de minimis indirect interest, in such land in this State. A foreign principal has a de minimis indirect interest if any ownership is the result of the foreign principal's ownership of registered equities in a publicly traded company owning the land and if the foreign principal's ownership interest in the company is either:

(1) less than 5% of any class of registered equities or less than 5% in the aggregate in multiple classes of registered equities; or

(2) a noncontrolling interest in an entity controlled by a company that is both registered with the United States Securities and Exchange Commission as an investment adviser under the federal Investment Advisers Act of 1940, as amended, and is not a foreign entity.

(b) A foreign principal that directly or indirectly owns or acquires agricultural land or any interest in such land in this State before the effective date of this Act may continue to own or hold such land or interest, but may not purchase or otherwise acquire by grant, devise, or descent any additional agricultural land or interest in such land in this State.

(c)(1) A foreign principal that directly or indirectly owns or acquires agricultural land or any interest in such land in this State before the effective date of this Act must register with the Department of Agriculture by July 1, 2025. The Department must establish a form for such registration, which, at minimum, must include all of the following:

(A) The name of the owner of the agricultural land or the owner of the interest in such land.

(B) The address of the agricultural land, the property appraiser's parcel identification number, and the property's legal description.

(C) The number of acres of the agricultural land.

(2) A foreign principal that fails to timely file a registration with the Department is subject to a civil penalty of $1,000 for each day that the registration is late. The Department may place a lien against the unregistered agricultural land for the unpaid balance of any penalties assessed under this paragraph.

(d) Notwithstanding paragraph (1) of subsection (c), a foreign principal may acquire agricultural land on or after the effective date of this Act, by devise or descent, through the enforcement of security interests, or through the collection of debts, provided that the foreign principal sells, transfers, or otherwise divests itself of the agricultural land within 3 years after acquiring the agricultural land.

(e)(1) At the time of purchase, a buyer of agricultural land or an interest in such land must provide an affidavit signed under penalty of perjury attesting that the buyer is:

(A) not a foreign principal; and

(B) in compliance with the requirements of this Section.

(2) The failure to obtain or maintain the affidavit does not:

(A) affect the title or insurability of the title for the agricultural land; or

(B) subject the closing agent to civil or criminal liability, unless the closing agent has actual knowledge that the transaction will result in a violation of this Section.

The Department of Agriculture shall adopt rules to implement this subsection (e), including rules establishing the form for the affidavit required under this subsection.

(f)(1) The agricultural land or an interest in such land that is owned or acquired in violation of this Section may be forfeited to the State.

(2) The Department of Agriculture may initiate a civil action in the circuit court of the county in which the property lies for the forfeiture of the agricultural land or any interest in the agricultural land.

(3) Upon filing such action, the clerk must file a lis pendens notice with the clerk of the circuit court. The court must advance the cause on the calendar. The defendant may at any time petition to modify or discharge the lis pendens based upon a finding that there is no probable cause to believe that the agricultural land, or any portion of the agricultural land, is owned or held in violation of this Section.

(4) If the court finds that the agricultural land, or any portion of the agricultural land, is owned or held in violation of this Section, the court must enter a final judgment of forfeiture vesting title to the agricultural land in this State, subject only to the rights and interests of bona fide lienholders, and such final judgment relates back to the date of the lis pendens.

(5) The Department may sell the agricultural land subject to a final judgment of forfeiture. Any proceeds from the sale must first be paid to any lienholders of the land, followed by payment of any outstanding fines assessed pursuant to this Section, after which the Department must be reimbursed for all costs related to the forfeiture civil action and any costs related to the sale of the land. Any remaining proceeds must be paid to the property owner.

(6) At any time during the forfeiture proceeding the Department may seek an ex parte order of seizure of the agricultural land upon a showing that the defendant's control of the agricultural land constitutes a clear and present danger to the State.

(g) A foreign principal that purchases or acquires agricultural land or any interest in that land in violation of this Section commits a Class B misdemeanor. A person who knowingly sells agricultural land or any interest in that land in violation of this Section commits a Class B misdemeanor.

Section 15. Purchase of real property on or around military installations or critical infrastructure facilities by foreign principals prohibited.

(a) A foreign principal may not directly or indirectly own, or have a controlling interest in, or acquire by purchase, grant, devise, or descent any interest, except a de minimis indirect interest, in real property on or within 10 miles of any military installation or critical infrastructure facility in this State. A foreign principal has a de minimis indirect interest if any ownership is the result of the foreign principal's ownership of registered equities in a publicly traded company owning the land and if the foreign principal's ownership interest in the company is either:

(1) less than 5% of any class of registered equities or less than 5% in the aggregate in multiple classes of registered equities; or

(2) a noncontrolling interest in an entity controlled by a company that is both registered with the United States Securities and Exchange Commission as an investment adviser under the Investment Advisers Act of 1940, as amended, and is not a foreign entity.

A foreign principal that directly or indirectly owns or acquires any interest in real property on or within 10 miles of any military installation or critical infrastructure facility in this State before the effective date of this Act, may continue to own or hold such real property, but may not purchase or otherwise acquire by grant, devise, or descent any additional real property on or within 10 miles of any military installation or critical infrastructure facility in this State.

(b) A foreign principal must register with the Department of Commerce and Economic Opportunity if the foreign principal owns or acquires real property on or within 10 miles of any military installation or critical infrastructure facility in this State as authorized under subsection (d) or if the foreign principal owned or acquired an interest, other than a de minimis indirect interest, in such property before the effective date of this Act.

(c) The Department of Commerce and Economic Opportunity must establish a form for such registration which, at a minimum, must include all of the following:

(1) The name of the owner of the real property.

(2) The address of the real property, the property appraiser's parcel identification number, and the property's legal description.

A foreign principal that fails to timely file a registration with the Department of Commerce and Economic Opportunity is subject to a civil penalty of $1,000 for each day that the registration is late. A foreign principal must register a property interest owned before the effective date of this Act, on or before December 31, 2025. The registration is considered to be late after January 31, 2026. A foreign principal who owns or acquires real property on or after the effective date of this Act, as authorized under subsection (d), must register the real property within 30 days after the property is owned or acquired. The Department may place a lien against the unregistered real property for the unpaid balance of any penalties assessed under this paragraph.

(d) Notwithstanding subsection (a), a foreign principal who is a natural person may purchase one residential real property that is up to 2 acres in size if all of the following apply:

(1) The parcel is not on or within 5 miles of any military installation in this State.

(2) The person has a current verified United States Visa that is not limited to authorizing tourist-based travel or official documentation confirming that the person has been granted asylum in the United States, and such visa or documentation authorizes the person to be legally present within this State.

(3) The purchase is in the name of the person who holds the visa or official documentation described in paragraph (2).

(e) Notwithstanding subsections (a) and (b), a foreign principal may acquire real property or any interest in real property which is on or within 10 miles of any military installation or critical infrastructure facility in this State on or after the effective date of this Act, by devise or descent, through the enforcement of security interests, or through the collection of debts, provided that the foreign principal sells, transfers, or otherwise divests itself of such real property within 3 years after acquiring the real property.

(f)(1) At the time of purchase, a buyer of the real property that is on or within 10 miles of any military installation or critical infrastructure facility in this State must provide an affidavit signed under penalty of perjury attesting that the buyer is:

(A) not a foreign principal or not a foreign principal prohibited from purchasing the subject real property; and

(B) in compliance with the requirements of this Section.

(2) The failure to obtain or maintain the affidavit does not:

(A) affect the title or insurability of the title for the real property; or

(B) subject the closing agent to civil or criminal liability, unless the closing agent has actual knowledge that the transaction will result in a violation of this Section.

(3) The Department of Financial and Professional Regulation, in consultation with the Real Estate Administration and Disciplinary Board of the Department, shall adopt rules to implement this subsection (f), including rules establishing the form for the affidavit required under this subsection (f).

(g)(1) If any real property is owned or acquired in violation of this Section, the real property may be forfeited to the State.

(2) The Department of Commerce and Economic Opportunity may initiate a civil action in the circuit court of the county in which the property lies for the forfeiture of the real property or any interest in the real property.

(3) Upon filing such action, the clerk must record a lis pendens. The court must advance the cause on the calendar. The defendant may at any time petition to modify or discharge the lis pendens based upon a finding that there is no probable cause to believe that the real property, or any portion of the real property, is owned or held in violation of this Section.

(4) If the court finds that the real property, or any portion of the real property, is owned or held in violation of this Section, the court must enter a final judgment of forfeiture vesting title to the real property in this State, subject only to the rights and interests of bona fide lienholders, and such final judgment relates back to the date of the lis pendens.

(5) The Department of Commerce and Economic Opportunity may sell the real property subject to a final judgment of forfeiture. Any proceeds from the sale must first be paid to any lienholders of the land, followed by payment of any outstanding fines assessed pursuant to this Section, after which the Department must be reimbursed for all costs related to the forfeiture civil action and any costs related to the sale of the land. Any remaining proceeds must be paid to the property owner.

(6) At any time during the forfeiture proceeding, the Department may seek an ex parte order of seizure of the real property upon a showing that the defendant's control of the real property constitutes a clear and present danger to the State.

(h) A foreign principal that purchases or acquires real property or any interest in real property in violation of this Section commits a Class B misdemeanor.

(i) A person who knowingly sells real property or any interest in real property in violation of this Section commits a Class B misdemeanor.

(j) The Department of Commerce and Economic Opportunity shall adopt rules to implement this Section.

Section 20. Purchase or acquisition of real property by the People's Republic of China prohibited.

(a)(1) The following persons or entities may not directly or indirectly own, have a controlling interest in, or acquire by purchase, grant, devise, or descent any interest, except a de minimis indirect interest, in real property in this State:

(A) The People's Republic of China, the Chinese Communist Party, or any official or member of the People's Republic of China or the Chinese Communist Party.

(B) Any other political party or member of a political party or a subdivision of a political party in the People's Republic of China.

(C) A partnership, an association, a corporation, an organization, or any other combination of persons organized under the laws of or having its principal place of business in the People's Republic of China, or a subsidiary of such entity.

(D) Any person who is domiciled in the People's Republic of China and who is not a citizen or lawful permanent resident of the United States.

(E) Any person, entity, or collection of persons or entities described in subparagraphs (A) through (D) having a controlling interest in a partnership, association, corporation, organization, trust, or any other legal entity or subsidiary formed for the purpose of owning real property in this State.

(2) A person or entity has a de minimis indirect interest if any ownership is the result of the person's or entity's ownership of registered equities in a publicly traded company owning the land and if the person's or entity's ownership interest in the company is either:

(A) less than 5% of any class of registered equities or less than 5% in the aggregate in multiple classes of registered equities; or

(B) a noncontrolling interest in an entity controlled by a company that is both registered with the United States Securities and Exchange Commission as an investment adviser under the federal Investment Advisers Act of 1940, as amended, and is not a foreign entity.

(b) Notwithstanding subsection (a), a natural person described in paragraph (1) of subsection (a) may purchase one residential real property that is up to 2 acres in size if all of the following apply:

(1) The parcel is not on or within 5 miles of any military installation in this State.

(2) The person has a current verified United States Visa that is not limited to authorizing tourist-based travel or official documentation confirming that the person has been granted asylum in the United States and such visa or documentation authorizes the person to be legally present within this State.

(3) The purchase is in the name of the person who holds the visa or official documentation described in paragraph (2) of this subsection (b).

(c) A person or entity described in paragraph (1) of subsection (a) that directly or indirectly owns or acquires any interest in real property in this State before the effective date of this Act, may continue to own or hold such real property, but may not purchase or otherwise acquire by grant, devise, or descent any additional real property in this State.

(d)(1) A person or entity described in subparagraph (A), (B), or (E) of paragraph (1) of subsection (a) must register with the Department of Commerce and Economic Opportunity if the person or entity owns or acquires more than a de minimis indirect interest in real property in this State. The Department of Commerce and Economic Opportunity must establish a form for such registration which, at a minimum, must include all of the following:

(A) The name of the owner of the real property.

(B) The address of the real property, the property appraiser's parcel identification number, and the property's legal description.

(2) A person or entity that fails to timely file a registration with the Department of Commerce and Economic Opportunity is subject to a civil penalty of $1,000 for each day that the registration is late. The person or entity subject to the registration requirements must register the property or property interests owned or acquired before the effective date of this Act, on or before December 31, 2025. The registration is considered to be late 30 days after January 31, 2026. A person or entity that owns or acquires real property or an interest in real property as authorized under subparagraph (B) or (E) of paragraph (1) of subsection (a), other than a de minimis indirect interest, on or after the effective date of this Act, must register the real property or interest within 30 days after the property or interest is owned or acquired. The Department may place a lien against the unregistered real property for the unpaid balance of any penalties assessed under this paragraph.

(e) Notwithstanding subsection (a), a person or an entity described in paragraph (1) of subsection (a) may acquire real property in this State on or after the effective date of this Act, by devise or descent, through the enforcement of security interests, or through the collection of debts, provided that the person or entity sells, transfers, or otherwise divests itself of such real property within 3 years after acquiring the real property, unless the person or entity is exempt under Section 35.

(f)(1) At the time of purchase, a buyer of real property in this State must provide an affidavit signed under penalty of perjury attesting that the buyer is:

(A) not a person or entity described in paragraph (1) of subsection (a) or that the buyer is a person described in paragraph (1) of subsection (a) but is authorized under subsection (b) to purchase the subject property; and

(B) in compliance with the requirements of this Section.

(2) The failure to obtain or maintain the affidavit does not:

(A) affect the title or insurability of the title for the real property; or

(B) subject the closing agent to civil or criminal liability, unless the closing agent has actual knowledge that the transaction will result in a violation of this Section.

(3) The Department of Financial and Professional Regulation, in consultation with the Real Estate Administration and Disciplinary Board of the Department, shall adopt rules to implement this subsection, including rules establishing the form for the affidavit required under this subsection.

(g)(1) If any real property is owned or acquired in violation of this Section, the real property may be forfeited to the State.

(2) The Department of Commerce and Economic Opportunity may initiate a civil action in the circuit court of the county in which the property lies for the forfeiture of the real property or any interest in real property.

(3) Upon filing such action, the clerk must record a lis pendens in accordance with court rule. The court must advance the cause on the calendar. The defendant may at any time petition to modify or discharge the lis pendens based upon a finding that there is no probable cause to believe that the real property, or any portion of the real property, is owned or held in violation of this Section.

(4) If the court finds that the real property, or any portion of the real property, is owned or held in violation of this Section, the court must enter a final judgment of forfeiture vesting title to the real property in this State, subject only to the rights and interests of bona fide lienholders, and such final judgment relates back to the date of the lis pendens.

(5) The Department of Commerce and Economic Opportunity may sell the real property subject to a final judgment of forfeiture. Any proceeds from the sale must first be paid to any lienholders of the land, followed by payment of any outstanding fines assessed pursuant to this Section, after which the Department of Commerce and Economic Opportunity must be reimbursed for all costs related to the forfeiture civil action and any costs related to the sale of the land. Any remaining proceeds must be paid to the property owner.

(6) At any time during the forfeiture proceeding, the Department of Commerce and Economic Opportunity may seek an ex parte order of seizure of the real property upon a showing that the defendant's control of the real property constitutes a clear and present danger to the State.

(g) A violation of this Section constitutes a Class 3 felony.

(h) A person who knowingly sells real property or any interest in the real property in violation of this Section commits a Class A misdemeanor.

Section 25. Contracting with entities of foreign countries of concern prohibited.

(a) In this Section:

"Controlling interest" means possession of the power to direct or cause the direction of the management or policies of a company, whether through ownership of securities, by contract, or otherwise. A person or entity that directly or indirectly has the right to vote 25% or more of the voting interests of the company or is entitled to 25% or more of its profits is presumed to possess a controlling interest.

"Department" means the Department of Central Management Services.

"Foreign country of concern" means the People's Republic of China, the Russian Federation, the Islamic Republic of Iran, the Democratic People's Republic of Korea, the Republic of Cuba, the Venezuelan regime of Nicolas Maduro, or the Syrian Arab Republic, including any agency of or any other entity of significant control of such foreign country of concern.

"Governmental entity" means the State, a unit of local government, or school district.

(b) A governmental entity may not knowingly enter into a contract with an entity which would give access to an individual's personal identifying information if:

(1) the entity is owned by the government of a foreign country of concern;

(2) the government of a foreign country of concern has a controlling interest in the entity; or

(3) the entity is organized under the laws of or has its principal place of business in a foreign country of concern.

(c) Beginning July 1, 2025, a governmental entity may not extend or renew a contract with an entity listed in paragraphs (1) through (3) of subsection (b) if the contract would give such entity access to an individual's personal identifying information.

(d) Beginning January 1, 2025, a governmental entity may not accept a bid on, a proposal for, or a reply to, or enter into, a contract with an entity which would grant the entity access to an individual's personal identifying information unless the entity provides the governmental entity with an affidavit signed by an officer or representative of the entity under penalty of perjury attesting that the entity does not meet any of the criteria in paragraphs (1) through (3) of subsection (b).

(e) Beginning July 1, 2025, when an entity extends or renews a contract with a governmental entity which would grant the entity access to an individual's personal identifying information, the entity must provide the governmental entity with an affidavit signed by an officer or representative of the entity under penalty of perjury attesting that the entity does not meet any of the criteria in paragraphs (1) through (3) of subsection (b).

(f) The Attorney General may bring a civil action in any circuit court against an entity that violates this Section. Violations of this Section may result in:

(1) a civil penalty equal to twice the amount of the contract for which the entity submitted a bid or proposal for, replied to, or entered into;

(2) ineligibility to enter into, renew, or extend any contract, including any grant agreements, with any governmental entity for up to 5 years;

(3) ineligibility to receive or renew any license, certification, or credential issued by a governmental entity for up to 5 years; and

(4) placement on the suspended persons list pursuant to the Illinois Procurement Code.

(5) Any penalties collected under this subsection (f) must be deposited into the General Revenue Fund.

(g) The Department shall adopt rules to implement this Section, including rules establishing the form for the affidavit required under subsection (e).

Section 30. Economic incentives to foreign countries of concern prohibited.

(a) In this Section:

"Controlled by" means having possession of the power to direct or cause the direction of the management or policies of a company, whether through ownership of securities, by contract, or otherwise. A person or entity that directly or indirectly has the right to vote 25% or more of the voting interests of the company or that is entitled to 25% or more of its profits is presumed to control the foreign entity.

"Economic incentive" means all programs administered by, or for which an applicant for the program must seek certification, approval, or other action by, the Department under the Department of Commerce and Economic Opportunity Law and all local economic development programs, grants, or financial benefits administered by a political subdivision or an agent of a political subdivision.

"Foreign country of concern" has the same meaning as in Section 5.

"Foreign entity" means an entity that is:

(1) owned or controlled by the government of a foreign country of concern; or

(2) a partnership, association, corporation, organization, or other combination of persons organized under the laws of or having its principal place of business in a foreign country of concern, or a subsidiary of such entity.

"Government entity" means a State agency, a political subdivision, or any other public or private agency, person, partnership, corporation, or business entity acting on behalf of any public agency.

(b) A government entity may not knowingly enter into an agreement or contract for an economic incentive with a foreign entity.

(c) Before providing any economic incentive, a government entity must require the recipient or applicant to provide the government entity with an affidavit signed under penalty of perjury attesting that the recipient or applicant is not a foreign entity.

(d) The Department shall adopt rules to administer this Section, including rules establishing the form for the affidavit required under subsection (c).

Section 35. Inapplicability of Act to real property for diplomatic purposes. This Act does not apply to a foreign principal that acquires real property for a diplomatic purpose that is recognized, acknowledged, or allowed by the federal government.

Section 90. The Illinois Procurement Code is amended by changing Section 1-10 as follows:

(30 ILCS 500/1-10)

Sec. 1-10. Application.

(a) This Code applies only to procurements for which bidders, offerors, potential contractors, or contractors were first solicited on or after July 1, 1998. This Code shall not be construed to affect or impair any contract, or any provision of a contract, entered into based on a solicitation prior to the implementation date of this Code as described in Article 99, including, but not limited to, any covenant entered into with respect to any revenue bonds or similar instruments. All procurements for which contracts are solicited between the effective date of Articles 50 and 99 and July 1, 1998 shall be substantially in accordance with this Code and its intent.

(b) This Code shall apply regardless of the source of the funds with which the contracts are paid, including federal assistance moneys. This Code shall not apply to:

(1) Contracts between the State and its political subdivisions or other governments, or between State governmental bodies, except as specifically provided in this Code.

(2) Grants, except for the filing requirements of Section 20-80.

(3) Purchase of care, except as provided in Section 5-30.6 of the Illinois Public Aid Code and this Section.

(4) Hiring of an individual as an employee and not as an independent contractor, whether pursuant to an employment code or policy or by contract directly with that individual.

(5) Collective bargaining contracts.

(6) Purchase of real estate, except that notice of this type of contract with a value of more than $25,000 must be published in the Procurement Bulletin within 10 calendar days after the deed is recorded in the county of jurisdiction. The notice shall identify the real estate purchased, the names of all parties to the contract, the value of the contract, and the effective date of the contract.

(7) Contracts necessary to prepare for anticipated litigation, enforcement actions, or investigations, provided that the chief legal counsel to the Governor shall give his or her prior approval when the procuring agency is one subject to the jurisdiction of the Governor, and provided that the chief legal counsel of any other procuring entity subject to this Code shall give his or her prior approval when the procuring entity is not one subject to the jurisdiction of the Governor.

(8) (Blank).

(9) Procurement expenditures by the Illinois Conservation Foundation when only private funds are used.

(10) (Blank).

(11) Public-private agreements entered into according to the procurement requirements of Section 20 of the Public-Private Partnerships for Transportation Act and design-build agreements entered into according to the procurement requirements of Section 25 of the Public-Private Partnerships for Transportation Act.

(12) (A) Contracts for legal, financial, and other professional and artistic services entered into by the Illinois Finance Authority in which the State of Illinois is not obligated. Such contracts shall be awarded through a competitive process authorized by the members of the Illinois Finance Authority and are subject to Sections 5-30, 20-160, 50-13, 50-20, 50-35, and 50-37 of this Code, as well as the final approval by the members of the Illinois Finance Authority of the terms of the contract.

(B) Contracts for legal and financial services entered into by the Illinois Housing Development Authority in connection with the issuance of bonds in which the State of Illinois is not obligated. Such contracts shall be awarded through a competitive process authorized by the members of the Illinois Housing Development Authority and are subject to Sections 5-30, 20-160, 50-13, 50-20, 50-35, and 50-37 of this Code, as well as the final approval by the members of the Illinois Housing Development Authority of the terms of the contract.

(13) Contracts for services, commodities, and equipment to support the delivery of timely forensic science services in consultation with and subject to the approval of the Chief Procurement Officer as provided in subsection (d) of Section 5-4-3a of the Unified Code of Corrections, except for the requirements of Sections 20-60, 20-65, 20-70, and 20-160 and Article 50 of this Code; however, the Chief Procurement Officer may, in writing with justification, waive any certification required under Article 50 of this Code. For any contracts for services which are currently provided by members of a collective bargaining agreement, the applicable terms of the collective bargaining agreement concerning subcontracting shall be followed.

On and after January 1, 2019, this paragraph (13), except for this sentence, is inoperative.

(14) Contracts for participation expenditures required by a domestic or international trade show or exhibition of an exhibitor, member, or sponsor.

(15) Contracts with a railroad or utility that requires the State to reimburse the railroad or utilities for the relocation of utilities for construction or other public purpose. Contracts included within this paragraph (15) shall include, but not be limited to, those associated with: relocations, crossings, installations, and maintenance. For the purposes of this paragraph (15), "railroad" means any form of non-highway ground transportation that runs on rails or electromagnetic guideways and "utility" means: (1) public utilities as defined in Section 3-105 of the Public Utilities Act, (2) telecommunications carriers as defined in Section 13-202 of the Public Utilities Act, (3) electric cooperatives as defined in Section 3.4 of the Electric Supplier Act, (4) telephone or telecommunications cooperatives as defined in Section 13-212 of the Public Utilities Act, (5) rural water or waste water systems with 10,000 connections or less, (6) a holder as defined in Section 21-201 of the Public Utilities Act, and (7) municipalities owning or operating utility systems consisting of public utilities as that term is defined in Section 11-117-2 of the Illinois Municipal Code.

(16) Procurement expenditures necessary for the Department of Public Health to provide the delivery of timely newborn screening services in accordance with the Newborn Metabolic Screening Act.

(17) Procurement expenditures necessary for the Department of Agriculture, the Department of Financial and Professional Regulation, the Department of Human Services, and the Department of Public Health to implement the Compassionate Use of Medical Cannabis Program and Opioid Alternative Pilot Program requirements and ensure access to medical cannabis for patients with debilitating medical conditions in accordance with the Compassionate Use of Medical Cannabis Program Act.

(18) This Code does not apply to any procurements necessary for the Department of Agriculture, the Department of Financial and Professional Regulation, the Department of Human Services, the Department of Commerce and Economic Opportunity, and the Department of Public Health to implement the Cannabis Regulation and Tax Act if the applicable agency has made a good faith determination that it is necessary and appropriate for the expenditure to fall within this exemption and if the process is conducted in a manner substantially in accordance with the requirements of Sections 20-160, 25-60, 30-22, 50-5, 50-10, 50-10.5, 50-12, 50-13, 50-15, 50-20, 50-21, 50-35, 50-36, 50-37, 50-38, and 50-50 of this Code; however, for Section 50-35, compliance applies only to contracts or subcontracts over $100,000. Notice of each contract entered into under this paragraph (18) that is related to the procurement of goods and services identified in paragraph (1) through (9) of this subsection shall be published in the Procurement Bulletin within 14 calendar days after contract execution. The Chief Procurement Officer shall prescribe the form and content of the notice. Each agency shall provide the Chief Procurement Officer, on a monthly basis, in the form and content prescribed by the Chief Procurement Officer, a report of contracts that are related to the procurement of goods and services identified in this subsection. At a minimum, this report shall include 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 this Code utilized. A copy of any or all of these contracts shall be made available to the Chief Procurement Officer immediately upon request. The Chief Procurement Officer shall submit a report to the Governor and General Assembly no later than November 1 of each year that includes, at a minimum, an annual summary of the monthly information reported to the Chief Procurement Officer. This exemption becomes inoperative 5 years after June 25, 2019 (the effective date of Public Act 101-27).

(19) Acquisition of modifications or adjustments, limited to assistive technology devices and assistive technology services, adaptive equipment, repairs, and replacement parts to provide reasonable accommodations (i) that enable a qualified applicant with a disability to complete the job application process and be considered for the position such qualified applicant desires, (ii) that modify or adjust the work environment to enable a qualified current employee with a disability to perform the essential functions of the position held by that employee, (iii) to enable a qualified current employee with a disability to enjoy equal benefits and privileges of employment as are enjoyed by other similarly situated employees without disabilities, and (iv) that allow a customer, client, claimant, or member of the public seeking State services full use and enjoyment of and access to its programs, services, or benefits.

For purposes of this paragraph (19):

"Assistive technology devices" means any item, piece of equipment, or product system, whether acquired commercially off the shelf, modified, or customized, that is used to increase, maintain, or improve functional capabilities of individuals with disabilities.

"Assistive technology services" means any service that directly assists an individual with a disability in selection, acquisition, or use of an assistive technology device.

"Qualified" has the same meaning and use as provided under the federal Americans with Disabilities Act when describing an individual with a disability.

(20) Procurement expenditures necessary for the Illinois Commerce Commission to hire third-party facilitators pursuant to Sections 16-105.17 and 16-108.18 of the Public Utilities Act or an ombudsman pursuant to Section 16-107.5 of the Public Utilities Act, a facilitator pursuant to Section 16-105.17 of the Public Utilities Act, or a grid auditor pursuant to Section 16-105.10 of the Public Utilities Act.

(21) Procurement expenditures for the purchase, renewal, and expansion of software, software licenses, or software maintenance agreements that support the efforts of the Illinois State Police to enforce, regulate, and administer the Firearm Owners Identification Card Act, the Firearm Concealed Carry Act, the Firearms Restraining Order Act, the Firearm Dealer License Certification Act, the Law Enforcement Agencies Data System (LEADS), the Uniform Crime Reporting Act, the Criminal Identification Act, the Illinois Uniform Conviction Information Act, and the Gun Trafficking Information Act, or establish or maintain record management systems necessary to conduct human trafficking investigations or gun trafficking or other stolen firearm investigations. This paragraph (21) applies to contracts entered into on or after January 10, 2023 (the effective date of Public Act 102-1116) this amendatory Act of the 102nd General Assembly and the renewal of contracts that are in effect on January 10, 2023 (the effective date of Public Act 102-1116) this amendatory Act of the 102nd General Assembly.

(22) Contracts for project management services and system integration services required for the completion of the State's enterprise resource planning project. This exemption becomes inoperative 5 years after June 7, 2023 (the effective date of the changes made to this Section by Public Act 103-8) this amendatory Act of the 103rd General Assembly. This paragraph (22) applies to contracts entered into on or after June 7, 2023 (the effective date of the changes made to this Section by Public Act 103-8) this amendatory Act of the 103rd General Assembly and the renewal of contracts that are in effect on June 7, 2023 (the effective date of the changes made to this Section by Public Act 103-8) this amendatory Act of the 103rd General Assembly.

(23) (22) Procurements necessary for the Department of Insurance to implement the Illinois Health Benefits Exchange Law if the Department of Insurance has made a good faith determination that it is necessary and appropriate for the expenditure to fall within this exemption. The procurement process shall be conducted in a manner substantially in accordance with the requirements of Sections 20-160 and 25-60 and Article 50 of this Code. A copy of these contracts shall be made available to the Chief Procurement Officer immediately upon request. This paragraph is inoperative 5 years after June 27, 2023 (the effective date of Public Act 103-103) this amendatory Act of the 103rd General Assembly.

Notwithstanding any other provision of law, for contracts with an annual value of more than $100,000 entered into on or after October 1, 2017 under an exemption provided in any paragraph of this subsection (b), except paragraph (1), (2), or (5), 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. The chief procurement officer shall submit a report to the Governor and General Assembly no later than November 1 of each year that shall include, at a minimum, an annual summary of the monthly information reported to the chief procurement officer.

(c) This Code does not apply to the electric power procurement process provided for under Section 1-75 of the Illinois Power Agency Act and Section 16-111.5 of the Public Utilities Act.

(d) Except for Section 20-160 and Article 50 of this Code, and as expressly required by Section 9.1 of the Illinois Lottery Law, the provisions of this Code do not apply to the procurement process provided for under Section 9.1 of the Illinois Lottery Law.

(e) This Code does not apply to the process used by the Capital Development Board to retain a person or entity to assist the Capital Development Board with its duties related to the determination of costs of a clean coal SNG brownfield facility, as defined by Section 1-10 of the Illinois Power Agency Act, as required in subsection (h-3) of Section 9-220 of the Public Utilities Act, including calculating the range of capital costs, the range of operating and maintenance costs, or the sequestration costs or monitoring the construction of clean coal SNG brownfield facility for the full duration of construction.

(f) (Blank).

(g) (Blank).

(h) This Code does not apply to the process to procure or contracts entered into in accordance with Sections 11-5.2 and 11-5.3 of the Illinois Public Aid Code.

(i) Each chief procurement officer may access records necessary to review whether a contract, purchase, or other expenditure is or is not subject to the provisions of this Code, unless such records would be subject to attorney-client privilege.

(j) This Code does not apply to the process used by the Capital Development Board to retain an artist or work or works of art as required in Section 14 of the Capital Development Board Act.

(k) This Code does not apply to the process to procure contracts, or contracts entered into, by the State Board of Elections or the State Electoral Board for hearing officers appointed pursuant to the Election Code.

(l) This Code does not apply to the processes used by the Illinois Student Assistance Commission to procure supplies and services paid for from the private funds of the Illinois Prepaid Tuition Fund. As used in this subsection (l), "private funds" means funds derived from deposits paid into the Illinois Prepaid Tuition Trust Fund and the earnings thereon.

(m) This Code shall apply regardless of the source of funds with which contracts are paid, including federal assistance moneys. Except as specifically provided in this Code, this Code shall not apply to procurement expenditures necessary for the Department of Public Health to conduct the Healthy Illinois Survey in accordance with Section 2310-431 of the Department of Public Health Powers and Duties Law of the Civil Administrative Code of Illinois.

(n) This Code is subject to the provisions of the Foreign Land Ownership and Foreign Countries of Concern Act.

(Source: P.A. 102-175, eff. 7-29-21; 102-483, eff 1-1-22; 102-558, eff. 8-20-21; 102-600, eff. 8-27-21; 102-662, eff. 9-15-21; 102-721, eff. 1-1-23; 102-813, eff. 5-13-22; 102-1116, eff. 1-10-23; 103-8, eff. 6-7-23; 103-103, eff. 6-27-23; revised 9-5-23.)

Section 95. The Property Owned By Noncitizens Act is amended by changing Section 7 as follows:

(765 ILCS 60/7) (from Ch. 6, par. 7)

Sec. 7. Except as otherwise provided in the Foreign Land Ownership and Foreign Countries of Concern Act, all All noncitizens may acquire, hold, and dispose of real and personal property in the same manner and to the same extent as natural born citizens of the United States, and the personal estate of a noncitizen dying intestate shall be distributed in the same manner as the estates of natural born citizens, and all persons interested in such estate shall be entitled to proper distributive shares thereof under the laws of this state, whether they are noncitizens or not.

This amendatory Act of 1992 does not apply to the Agricultural Foreign Investment Disclosure Act.

(Source: P.A. 102-1030, eff. 5-27-22.)