Rep. Jay Hoffman

Filed: 3/8/2017

 

 


 

 


 
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1
AMENDMENT TO HOUSE BILL 138

2    AMENDMENT NO. ______. Amend House Bill 138 by replacing
3everything after the enacting clause with the following:
 
4    "Section 5. The Procurement of Domestic Products Act is
5amended by changing Sections 5, 10, and 25 as follows:
 
6    (30 ILCS 517/5)
7    Sec. 5. Definitions. As used in this Act:
8    "Component" and "cost of components" have the meanings
9given to those terms in the federal Buy American Act of 1933.
10    "Manufactured in Illinois" means: (1) in the case of
11products that are not assembled articles, materials, or
12supplies, that the product is mined or produced in Illinois;
13(2) in the case of assembled articles, materials, or supplies,
14that design, final assembly, processing, packaging, testing,
15or other process that adds value, quality, or reliability
16occurs in Illinois and the cost of components produced in

 

 

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1Illinois exceeds 50% of the cost of all of the components; or
2(3) that the product is a commercially available off-the-shelf
3item.
4    "Manufactured in the United States" means: (1) in the case
5of products that are not assembled articles, materials, or
6supplies, that the product is mined or produced in the United
7States; (2) , in the case of assembled articles, materials, or
8supplies, that design, final assembly, processing, packaging,
9testing, or other process that adds value, quality, or
10reliability occurs in the United States and the cost of
11domestic components exceeds 50% of the cost of all of the
12components; or (3) that the product is a commercially available
13off-the-shelf item.
14    "Procured products" means assembled articles, materials,
15or supplies purchased by a State agency.
16    "Purchasing agency" means a State agency.
17    "State agency" means each agency, department, authority,
18board, or commission of the executive branch of State
19government, including each university, whether created by
20statute or by executive order of the Governor.
21    "United States" means the United States and any place
22subject to the jurisdiction of the United States.
23(Source: P.A. 98-463, eff. 8-16-13.)
 
24    (30 ILCS 517/10)
25    Sec. 10. Domestic United States products.

 

 

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

 

 

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

 

 

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1    exemption under this paragraph (2), the purchasing agency
2    must first obtain a written waiver from the chief
3    procurement officer.
4        (3) The quality of the procured products manufactured
5    in the United States is substantially less than the quality
6    of the comparably priced, available, and comparable
7    procured products manufactured outside the United States.
8        (4) The purchase of the procured products manufactured
9    outside the United States better serves the public interest
10    by helping to protect or save life, property, or the
11    environment.
12        (5) The purchase of the procured products is made in
13    conjunction with contracts or offerings of
14    telecommunications, fire suppression, security systems,
15    communications services, Internet services, or information
16    services.
17        (6) The purchase is of pharmaceutical products, drugs,
18    biologics, vaccines, medical devices used to provide
19    medical and health care or treat disease or used in medical
20    or research diagnostic tests, and medical nutritionals
21    regulated by the Food and Drug Administration under the
22    federal Food, Drug and Cosmetic Act.
23    (c) In determining the price of procured products for
24purposes of this Section, consideration shall be given to the
25life-cycle cost, including maintenance and repair of those
26procured products.

 

 

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1(Source: P.A. 93-954, eff. 1-1-05; 94-540, eff. 1-1-06.)
 
2    (30 ILCS 517/25)
3    Sec. 25. Penalties. If a contractor is awarded a contract
4through the use of a preference under this Act and knowingly
5supplies procured products under that contract that are not
6manufactured in Illinois or the United States, as applicable,
7then (i) the contractor is barred from obtaining any State
8contract for a period of 5 years after the violation is
9discovered by the purchasing agency, (ii) the purchasing agency
10may void the contract, and (iii) the purchasing agency may
11recover damages in a civil action in an amount 3 times the
12value of the preference.
13(Source: P.A. 93-954, eff. 1-1-05; 94-540, eff. 1-1-06.)
 
14    Section 99. Effective date. This Act takes effect upon
15becoming law.".