State of Illinois
2005 and 2006


Introduced 2/16/2005, by Sen. Carole Pankau


65 ILCS 5/8-9-1   from Ch. 24, par. 8-9-1
65 ILCS 5/8-10-3   from Ch. 24, par. 8-10-3

    Amends the Illinois Municipal Code. Provides that in municipalities of fewer than 500,000 inhabitants, any work or public improvement contract in excess of $50,000 (now, $10,000), that is not to be paid by a special tax or a special assessment, shall be let to the lowest responsible bidder. Provides that when the municipality, after a two-thirds vote of alderman or trustees to approve the ordinance, directs one of its officers to employ manual labor, laborers, and artisans for a construction or improvement project that all material used for that construction or project that has a value of $50,000 (now, $10,000) or more shall be let to the lowest responsible bidder. Provides that in municipalities of more than 500,000 inhabitants, a purchase order or a contract of any nature for labor, services, or work, or for the purchase, lease, or sale of personal property, materials, equipment, or supplies must be let for bid if the amount of the purchase order, lease, or contract exceeds $50,000 (now, $10,000).

LRB094 09002 AJO 39223 b





SB0488 LRB094 09002 AJO 39223 b

1     AN ACT concerning local government.
2     Be it enacted by the People of the State of Illinois,
3 represented in the General Assembly:
4     Section 5. The Illinois Municipal Code is amended by
5 changing Sections 8-9-1 and 8-10-3 as follows:
6     (65 ILCS 5/8-9-1)  (from Ch. 24, par. 8-9-1)
7     Sec. 8-9-1. In municipalities of less than 500,000 except
8 as otherwise provided in Articles 4 and 5 any work or other
9 public improvement which is not to be paid for in whole or in
10 part by special assessment or special taxation, when the
11 expense thereof will exceed $50,000 $10,000, shall be
12 constructed either (1) by a contract let to the lowest
13 responsible bidder after advertising for bids, in the manner
14 prescribed by ordinance, except that any such contract may be
15 entered into by the proper officers without advertising for
16 bids, if authorized by a vote of two-thirds of all the aldermen
17 or trustees then holding office; or (2) in the following
18 manner, if authorized by a vote of two-thirds of all the
19 aldermen or trustees then holding office, to-wit: the
20 commissioner of public works or other proper officers to be
21 designated by ordinance, shall superintend and cause to be
22 carried out the construction of the work or other public
23 improvement and shall employ exclusively for the performance of
24 all manual labor thereon, laborers and artisans whom the
25 municipality shall pay by the day or hour; and all material of
26 the value of $50,000 $10,000 and upward used in the
27 construction of the work or other public improvement, shall be
28 purchased by contract let to the lowest responsible bidder in
29 the manner to be prescribed by ordinance. However, nothing
30 contained in this section shall apply to any contract by a
31 city, village or incorporated town with the federal government
32 or any agency thereof.



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1     In every city which has adopted Division 1 of Article 10,
2 every such laborer or artisan shall be certified by the civil
3 service commission to the commissioner of public works or other
4 proper officers, in accordance with the requirement of that
5 division.
6     In municipalities of 500,000 or more population the letting
7 of contracts for work or other public improvements of the
8 character described in this section shall be governed by the
9 provisions of Division 10 of this Article 8.
10 (Source: P.A. 86-576.)
11     (65 ILCS 5/8-10-3)  (from Ch. 24, par. 8-10-3)
12     Sec. 8-10-3. (a) Except as otherwise herein provided, all
13 purchase orders or contracts of whatever nature, for labor,
14 services or work, the purchase, lease, or sale of personal
15 property, materials, equipment or supplies, involving amounts
16 in excess of $50,000 $10,000, made by or on behalf of any such
17 municipality, shall be let by free and open competitive bidding
18 after advertisement, to the lowest responsible bidder, or in
19 the appropriate instance, to the highest responsible bidder,
20 depending upon whether such municipality is to expend or to
21 receive money. All such purchase orders or contracts, as
22 defined above, which shall involve amounts of $10,000, or less,
23 shall be let in the manner described above whenever
24 practicable, except that such purchase orders or contracts may
25 be let in the open market in a manner calculated to insure the
26 best interests of the public, after solicitation of bids by
27 mail, telephone, or otherwise. The provisions of this Section
28 are subject to any contrary provision contained in "An Act
29 concerning the use of Illinois mined coal in certain plants and
30 institutions", filed July 13, 1937, as heretofore and hereafter
31 amended.
32     (b) The corporate authorities of a municipality may by
33 ordinance provide that contracts to provide goods and services
34 to the municipality contain a provision requiring the
35 contractor and its affiliates to collect and remit Illinois Use



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1 Tax on all sales of tangible personal property into the State
2 of Illinois in accordance with the provisions of the Illinois
3 Use Tax Act, and municipal use tax on all sales of tangible
4 personal property into the municipality in accordance with a
5 municipal ordinance authorized by Section 8-11-6 or 8-11-1.5,
6 during the term of the contract or for some other specified
7 period, regardless of whether the contractor or affiliate is a
8 "retailer maintaining a place of business within this State" as
9 defined in Section 2 of the Use Tax Act. The provision may
10 state that if the requirement is not met, the contract may be
11 terminated by the municipality, and the contractor may be
12 subject to such other penalties or the exercise of such
13 remedies as may be stated in the contract or the ordinance
14 adopted under this Section. An ordinance adopted under this
15 Section may contain exceptions for emergencies or other
16 circumstances when the exception is in the best interest of the
17 public. For purposes of this Section, the term "affiliate"
18 means any entity that (1) directly, indirectly, or
19 constructively controls another entity, (2) is directly,
20 indirectly, or constructively controlled by another entity, or
21 (3) is subject to the control of a common entity. For purposes
22 of this subsection (b), an entity controls another entity if it
23 owns, directly or individually, more than 10% of the voting
24 securities of that entity. As used in this subsection (b), the
25 term "voting security" means a security that (1) confers upon
26 the holder the right to vote for the election of members of the
27 board of directors or similar governing body of the business or
28 (2) is convertible into, or entitles the holder to receive upon
29 its exercise, a security that confers such a right to vote. A
30 general partnership interest is a voting security.
31 (Source: P.A. 93-25, eff. 6-20-03.)