Sen. Don Harmon
Filed: 11/16/2004
 
 

 




 

 		












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AMENDMENT TO HOUSE BILL 1002




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

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



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    (30 ILCS 500/20-60)



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    Sec. 20-60. Duration of contracts. 

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    (a) Maximum duration.  A contract may be entered into for

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


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    (b) Subject to appropriation.  All contracts made or entered

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into shall recite that they are
subject to termination and 
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cancellation in any year for which the
General Assembly fails 
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to make
an appropriation to make payments under the terms of 
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the contract.

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

 
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    (30 ILCS 500/Art. 42.5 heading new)

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ARTICLE 42.5. 
BOND AND TITLE INSURANCE FOR HOUSING

 
 


 






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    (30 ILCS 500/42.5-5 new)

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    Sec. 42.5-5. Applicability. All policies of insurance for 
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mortgage or title insurance related to housing or bond 
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insurance for bonds issued to finance housing must be procured 
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in accordance with the provisions of this Article.
 
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    (30 ILCS 500/42.5-10 new)

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    Sec. 42.5-10. Authority. State purchasing officers may 
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procure mortgage and title insurance related to housing or to 
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procure bond insurance for bonds issued to finance housing.
 
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    (30 ILCS 500/42.5-15 new)

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    Sec. 42.5-15. Method of source selection.
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    (a) Except as provided in Sections 20-20, 20-25, and 20-30, 
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all contracts for title or bond insurance related to housing 
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shall be awarded by a request for qualification process in 
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accordance with Section 42.5-20.
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    (b) Mortgage insurance may be negotiated with private 
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insurers or governmental entities without using a public 
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bidding process.
 
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    (30 ILCS 500/42.5-20 new)

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    Sec. 42.5-20. Request for qualification process.
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    (a) Bond insurance and title insurance shall be procured by 
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a request for qualification, except as provided in Section 
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42.5-15.
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    (b) A request for qualification shall be issued and may 
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include:
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        (1) the type of bonds or property to be insured;
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        (2) the national reputation of the insurer;
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        (3) the capitalization of the insurer; and
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        (4) the rating of the insurer.
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    (c) Public notice of the request for qualification to 
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provide bond or title insurance shall be published in the 
 


 






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Illinois Procurement Bulletin at least 14 days before the date 
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set forth in the request for receipt of responses.
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    (d) The response to the request for qualification shall 
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consist of written information sufficient to show that the 
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respondent can meet minimum criteria set forth in the request.  
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The State purchasing officer may enter into discussions with 
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respondents for the purpose of clarifying State needs and the 
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information supplied by the respondents.
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    (e) Based upon the information received, the State 
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purchasing officer shall develop a list of vendors qualified to 
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issue bond and title insurance for the purchasing agency.  A 
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notice of award shall be published in the Procurement Bulletin 
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listing all vendors qualified to provide the insurance for the 
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purchasing agency.
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    (f) When needed, the purchasing agency shall solicit bids 
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from each of the qualified vendors for the specific transaction 
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contemplated.  Qualified vendors have 5 days to respond; 
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thereafter, an award must be made to the vendor with the lowest 
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bid.  The list of prequalified vendors must be updated 
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periodically but in no event less than every 3 years.  The 
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purchasing agency may amend its notice of award at any time to 
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delete those vendors that no longer meet its stated criteria.
 
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    (30 ILCS 500/42.5-25 new)

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    Sec. 42.5-25. Length of term.
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    (a) The length of the bond insurance shall be for a period 
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equal to the maximum time the subject bonds may remain 
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outstanding.
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    (b) The length of the mortgage insurance shall be equal to 
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the term of the underlying mortgage.
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    (c) The title policy shall remain in effect for as long as 
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the purchasing agency owns or is a mortgagee of the subject 
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property.
 

 


 






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