Sen. Michael W. Frerichs

Filed: 5/31/2011

 

 


 

 


 
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1
AMENDMENT TO SENATE BILL 346

2    AMENDMENT NO. ______. Amend Senate Bill 346 by replacing
3everything after the enacting clause with the following:
 
4    "Section 5. The Illinois Procurement Code is amended by
5changing Sections 1-10, 1-15.68, 20-25, 20-30, 20-43, 20-90,
625-15, and 50-39 and by adding Sections 1-15.63 and 1-35 as
7follows:
 
8    (30 ILCS 500/1-10)
9    Sec. 1-10. Application.
10    (a) This Code applies only to procurements for which
11contractors were first solicited on or after July 1, 1998. This
12Code shall not be construed to affect or impair any contract,
13or any provision of a contract, entered into based on a
14solicitation prior to the implementation date of this Code as
15described in Article 99, including but not limited to any
16covenant entered into with respect to any revenue bonds or

 

 

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1similar instruments. All procurements for which contracts are
2solicited between the effective date of Articles 50 and 99 and
3July 1, 1998 shall be substantially in accordance with this
4Code and its intent.
5    (b) This Code shall apply regardless of the source of the
6funds with which the contracts are paid, including federal
7assistance moneys. This Code shall not apply to:
8        (1) Contracts between the State and its political
9    subdivisions or other governments, or between State
10    governmental bodies except as specifically provided in
11    this Code.
12        (2) Grants, except for the filing requirements of
13    Section 20-80.
14        (3) Purchase of care.
15        (4) Hiring of an individual as employee and not as an
16    independent contractor, whether pursuant to an employment
17    code or policy or by contract directly with that
18    individual.
19        (5) Collective bargaining contracts.
20        (6) Purchase of real estate, except that notice of this
21    type of contract with a value of more than $25,000 must be
22    published in the Procurement Bulletin within 7 days after
23    the deed is recorded in the county of jurisdiction. The
24    notice shall identify the real estate purchased, the names
25    of all parties to the contract, the value of the contract,
26    and the effective date of the contract.

 

 

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1        (7) Contracts necessary to prepare for anticipated
2    litigation, enforcement actions, or investigations,
3    provided that the chief legal counsel to the Governor shall
4    give his or her prior approval when the procuring agency is
5    one subject to the jurisdiction of the Governor, and
6    provided that the chief legal counsel of any other
7    procuring entity subject to this Code shall give his or her
8    prior approval when the procuring entity is not one subject
9    to the jurisdiction of the Governor.
10        (8) Contracts for services to public institutions of
11    higher education Northern Illinois University by a person,
12    acting as an independent contractor, who is qualified by
13    education, experience, and technical ability and is
14    selected by negotiation for the purpose of providing
15    non-credit educational services and service activities or
16    products by means of specialized programs offered by the
17    university.
18        (9) Procurement expenditures by the Illinois
19    Conservation Foundation when only private funds are used.
20        (10) Procurement expenditures by the Illinois Health
21    Information Exchange Authority involving private funds
22    from the Health Information Exchange Fund. "Private funds"
23    means gifts, donations, and private grants.
24        (11) Contracts by or on behalf of public institutions
25    of higher education related to: events or activities where
26    the majority of funding is provided by event revenues;

 

 

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1    events or activities for the benefit of third parties where
2    the majority of funding is provided by the third parties;
3    sponsorship activities or memberships in professional,
4    academic, or athletic organizations; events or activities
5    where the use of specific vendors is mandated or identified
6    by the organizing or sponsoring entity; purchase of library
7    materials; public broadcasting media rights; and purchase
8    of items for sale or rental.
9    (c) This Code does not apply to the electric power
10procurement process provided for under Section 1-75 of the
11Illinois Power Agency Act and Section 16-111.5 of the Public
12Utilities Act.
13    (d) Except for Section 20-160 and Article 50 of this Code,
14and as expressly required by Section 9.1 of the Illinois
15Lottery Law, the provisions of this Code do not apply to the
16procurement process provided for under Section 9.1 of the
17Illinois Lottery Law.
18(Source: P.A. 95-481, eff. 8-28-07; 95-615, eff. 9-11-07;
1995-876, eff. 8-21-08; 96-840, eff. 12-23-09; 96-1331, eff.
207-27-10.)
 
21    (30 ILCS 500/1-15.63 new)
22    Sec. 1-15.63. Public institution of higher education.
23"Public institution of higher education" means the University
24of Illinois; Southern Illinois University; Chicago State
25University; Eastern Illinois University; Governors State

 

 

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1University; Illinois State University; Northeastern Illinois
2University; Northern Illinois University; Western Illinois
3University; and any other public universities now or hereafter
4established or authorized by the General Assembly.
 
5    (30 ILCS 500/1-15.68)
6    Sec. 1-15.68. Purchase of care. "Purchase of care" means a
7contract with a person for the furnishing of medical,
8educational, psychiatric, vocational, rehabilitative, social,
9or human services directly to a recipient of a State aid
10program. "Purchase of care" also means a contract for the
11furnishing of specialized materials, systems, services, or
12protocol items for the operation of medical, dental,
13veterinary, or similar facilities or clinics operated by the
14University of Illinois or Southern Illinois University.
15(Source: P.A. 90-572, eff. 2-6-98.)
 
16    (30 ILCS 500/1-35 new)
17    Sec. 1-35. Determinations by public institutions of higher
18education. Determinations by a public institution of higher
19education related to its ability to adequately fulfill its
20academic and research missions shall be made in writing by the
21institution.
 
22    (30 ILCS 500/20-25)
23    Sec. 20-25. Sole source procurements.

 

 

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1    (a) In accordance with standards set by rule, contracts may
2be awarded without use of the specified method of source
3selection when there is only one economically feasible source
4for the item. A State contract may not be awarded as a sole
5source procurement unless approved by the chief procurement
6officer. If any person files an objection to the notice of a
7sole source procurement during the notice period required by
8subsection (c), the chief procurement officer shall provide
9following a public hearing at which the chief procurement
10officer, State purchasing officer, or State agency presents and
11purchasing agency present written justification for the
12procurement method. The Procurement Policy Board and the public
13may present testimony.
14    (b) This Section may not be used as a basis for amending a
15contract for professional or artistic services if the amendment
16would result in an increase in the amount paid under the
17contract of more than 5% of the initial award, or would extend
18the contract term beyond the time reasonably needed for a
19competitive procurement, not to exceed 2 months. This
20subsection does not apply to the amendment of contracts by
21public institutions of higher education if the institution
22determines that failure to enter into any such amendment may
23impair its ability to adequately fulfill its academic and
24research missions.
25    (c) Notice of intent to enter into a sole source contract
26shall be provided to the Procurement Policy Board and published

 

 

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1in the online electronic Bulletin at least 14 days before the
2public hearing required in subsection (a). The notice shall
3include the sole source procurement justification form
4prescribed by the Board, a description of the item to be
5procured, the intended sole source contractor, and the date,
6time, and location of the public hearing. A copy of the notice
7and all documents provided at the hearing shall be included in
8the subsequent Procurement Bulletin.
9    (d) By August 1 each year, each chief procurement officer
10shall file a report with the General Assembly identifying each
11contract the officer sought under the sole source procurement
12method and providing the justification given for seeking sole
13source as the procurement method for each of those contracts.
14(Source: P.A. 96-795, eff. 7-1-10 (see Section 5 of P.A. 96-793
15for the effective date of changes made by P.A. 96-795); 96-920,
16eff. 7-1-10.)
 
17    (30 ILCS 500/20-30)
18    Sec. 20-30. Emergency purchases.
19    (a) Conditions for use. In accordance with standards set by
20rule, a purchasing agency may make emergency procurements
21without competitive sealed bidding or prior notice when there
22exists a threat to public health or public safety, or when
23immediate expenditure is necessary for repairs to State
24property in order to protect against further loss of or damage
25to State property, to prevent or minimize serious disruption in

 

 

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1critical State services that affect health, safety, or
2collection of substantial State revenues, or to ensure the
3integrity of State records; provided, however, that the term of
4the emergency purchase shall be limited to the time reasonably
5needed for a competitive procurement, not to exceed 90 days. A
6contract may be extended beyond 90 days if the chief
7procurement officer determines additional time is necessary
8and that the contract scope and duration are limited to the
9emergency. If any person files an objection to the notice of
10extension required by subsection (b), the chief procurement
11officer shall provide a public hearing at which the chief
12procurement officer, State purchasing officer, or State agency
13presents written justification for the extension. The
14Procurement Policy Board and members Prior to execution of the
15extension, the chief procurement officer must hold a public
16hearing and provide written justification for all emergency
17contracts. Members of the public may present testimony.
18Emergency procurements shall be made with as much competition
19as is practicable under the circumstances. A written
20description of the basis for the emergency and reasons for the
21selection of the particular contractor shall be included in the
22contract file.
23    (b) Notice. Notice of all emergency procurements shall be
24provided to the Procurement Policy Board and published in the
25online electronic Bulletin no later than 3 business days after
26the contract is awarded. Notice of intent to extend an

 

 

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1emergency contract shall be provided to the Procurement Policy
2Board and published in the online electronic Bulletin at least
314 days before the public hearing. Notice shall include at
4least a description of the need for the emergency purchase, the
5contractor, and if applicable, the date, time, and location of
6the public hearing. A copy of this notice and all documents
7provided at the hearing shall be included in the subsequent
8Procurement Bulletin. Before the next appropriate volume of the
9Illinois Procurement Bulletin, the purchasing agency shall
10publish in the Illinois Procurement Bulletin a copy of each
11written description and reasons and the total cost of each
12emergency procurement made during the previous month. When only
13an estimate of the total cost is known at the time of
14publication, the estimate shall be identified as an estimate
15and published. When the actual total cost is determined, it
16shall also be published in like manner before the 10th day of
17the next succeeding month.
18    (c) Affidavits. A chief procurement officer making a
19procurement under this Section shall file affidavits with the
20Procurement Policy Board and the Auditor General within 10 days
21after the procurement setting forth the amount expended, the
22name of the contractor involved, and the conditions and
23circumstances requiring the emergency procurement. When only
24an estimate of the cost is available within 10 days after the
25procurement, the actual cost shall be reported immediately
26after it is determined. At the end of each fiscal quarter, the

 

 

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1Auditor General shall file with the Legislative Audit
2Commission and the Governor a complete listing of all emergency
3procurements reported during that fiscal quarter. The
4Legislative Audit Commission shall review the emergency
5procurements so reported and, in its annual reports, advise the
6General Assembly of procurements that appear to constitute an
7abuse of this Section.
8    (d) Quick purchases. The chief procurement officer may
9promulgate rules extending the circumstances by which a
10purchasing agency may make purchases under this Section,
11including but not limited to the procurement of items available
12at a discount for a limited period of time.
13    (e) The changes to this Section made by this amendatory Act
14of the 96th General Assembly apply to procurements executed on
15or after its effective date.
16(Source: P.A. 96-795, eff. 7-1-10 (see Section 5 of P.A. 96-793
17for the effective date of changes made by P.A. 96-795).)
 
18    (30 ILCS 500/20-43)
19    Sec. 20-43. Bidder or offeror authorized to do business in
20Illinois. In addition to meeting any other requirement of law
21or rule, a person (other than an individual acting as a sole
22proprietor) may qualify as a bidder or offeror under this Code
23only if the person is a legal entity authorized to do business
24in Illinois prior to submitting the bid, offer, or proposal. A
25public institution of higher education may consider a bid or

 

 

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1offer from a person not authorized to do business in Illinois
2if the institution determines that failure to accept a bid or
3offer may impair its ability to adequately fulfill its academic
4and research missions and if such authorization to do business
5in Illinois, if required, is obtained prior to execution of
6contract.
7(Source: P.A. 96-795, eff. 7-1-10 (see Section 5 of P.A. 96-793
8for the effective date of P.A. 96-795).)
 
9    (30 ILCS 500/20-90)
10    Sec. 20-90. Foreign country procurements. Procurements to
11meet the needs of State offices located in foreign countries,
12procurements related to higher education program activities
13that operate in foreign countries, and procurements made by a
14public institution of higher education from a foreign entity
15that does not maintain an office in the United States shall
16comply with the provisions of this Code to the extent
17practical.
18(Source: P.A. 90-572, eff. date - See Sec. 99-5.)
 
19    (30 ILCS 500/25-15)
20    Sec. 25-15. Method of source selection.
21    (a) Competitive sealed bidding. Except as provided in
22subsection (b) and Sections 20-20, 20-25, and 20-30, all State
23contracts for supplies and services shall be awarded by
24competitive sealed bidding in accordance with Section 20-10.

 

 

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1    (b) Other methods. Unless otherwise provided by law, the
2The chief procurement officer may establish by rule (i)
3categories of purchases, including non-governmental joint
4purchases, that may be made without competitive sealed bidding
5and (ii) the most competitive alternate method of source
6selection that shall be used for each category of purchase.
7    (c) Academic and research mission needs of public
8institutions of higher education. A public institution of
9higher education may accept modified vendor qualifications,
10including applicable registrations, certifications,
11disclosures, and other requirements if it determines in writing
12that failure to accept such modified qualifications may impair
13its ability to adequately fulfill its academic and research
14missions.
15(Source: P.A. 90-572, eff. date - See Sec. 99-5.)
 
16    (30 ILCS 500/50-39)
17    Sec. 50-39. Procurement communications reporting
18requirement.
19    (a) Any written or oral communication that (i) is received
20by a State employee who, by nature of his or her duties has the
21authority to participate personally and substantially in the
22award of a State contract and (ii) that imparts or requests
23material information or makes a material argument regarding
24potential action concerning a procurement matter, including,
25but not limited to, an application, a contract, or a project,

 

 

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1shall be reported to the Procurement Policy Board. When
2multiple State employees are party to the same communication,
3only one need report. These communications do not include the
4following: (i) statements by a person publicly made in a public
5forum; (ii) statements regarding matters of procedure and
6practice, such as format, the number of copies required, the
7manner of filing, and the status of a matter; and (iii)
8statements made by a State employee of the agency to the agency
9head or other employees of that agency or to the employees of
10the Executive Ethics Commission; (iv) statements made by an
11employee of a State agency or a public institution of higher
12education concerning cooperative procurement activities among
13or between State agencies or public institutions of higher
14education and any institutional cooperatives, organizations,
15and entities where a public institution of higher education is
16a member; (v) communications related to grants, research, or
17sponsored programs administered by public institutions of
18higher education; (vi) communications regarding transactions
19less than the small purchase amount set forth in this Code for
20procurements made on behalf of public institutions of higher
21education; and (vii) proprietary information. The provisions
22of this Section shall not apply to communications regarding the
23administration and implementation of an existing contract,
24except communications regarding change orders or the renewal or
25extension of a contract.
26    (b) The report required by subsection (a) shall be

 

 

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1submitted monthly and include at least the following: (i) the
2date and time of each communication; (ii) the identity of each
3person from whom the written or oral communication was
4received, the individual or entity represented by that person,
5and any action the person requested or recommended; (iii) the
6identity and job title of the person to whom each communication
7was made; (iv) if a response is made, the identity and job
8title of the person making each response; (v) a detailed
9summary of the points made by each person involved in the
10communication; (vi) the duration of the communication; (vii)
11the location or locations of all persons involved in the
12communication and, if the communication occurred by telephone,
13the telephone numbers for the callers and recipients of the
14communication; and (viii) any other pertinent information.
15    (c) Additionally, when an oral communication made by a
16person required to register under the Lobbyist Registration Act
17is received by a State employee that is covered under this
18Section, all individuals who initiate or participate in the
19oral communication shall submit a written report to that State
20employee that memorializes the communication and includes, but
21is not limited to, the items listed in subsection (b).
22    (d) The Procurement Policy Board shall make each report
23submitted pursuant to this Section available on its website
24within 7 days after its receipt of the report. The Procurement
25Policy Board may promulgate rules to ensure compliance with
26this Section.

 

 

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1    (e) The reporting requirements shall also be conveyed
2through ethics training under the State Employees and Officials
3and Employees Ethics Act. An employee who knowingly and
4intentionally violates this Section may shall be subject to
5suspension or discharge. The Executive Ethics Commission shall
6promulgate rules, including emergency rules, to implement this
7Section.
8    (f) This Section becomes operative on January 1, 2011.
9(Source: P.A. 96-795, eff. 7-1-10 (see Section 5 of P.A. 96-793
10for the effective date of changes made by P.A. 96-795); 96-920,
11eff. 7-1-10; revised 9-27-10.)
 
12    Section 10. The Governmental Joint Purchasing Act is
13amended by changing Sections 2, 3, and 4 as follows:
 
14    (30 ILCS 525/2)  (from Ch. 85, par. 1602)
15    Sec. 2. Joint purchasing authority.
16    (a) Any governmental unit may purchase personal property,
17supplies and services jointly with one or more other
18governmental units. All such joint purchases shall be by
19competitive selection bids as provided in Section 4 of this
20Act. The provisions of any other acts under which a
21governmental unit operates which refer to purchases and
22procedures in connection therewith shall be superseded by the
23provisions of this Act when the governmental units are
24exercising the joint powers created by this Act.

 

 

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1    (a-5) The Department of Central Management Services may
2purchase personal property, supplies, and services jointly
3with a governmental entity of another state or with a
4consortium of governmental entities of one or more other
5states. Subject to provisions of the joint purchasing
6solicitation, the Department of Central Management Services
7may designate the resulting contract as available to
8governmental units in Illinois.
9    (b) Any not-for-profit agency that qualifies under Section
1045-35 of the Illinois Procurement Code and that either (1) acts
11pursuant to a board established by or controlled by a unit of
12local government or (2) receives grant funds from the State or
13from a unit of local government, shall be eligible to
14participate in contracts established by the State.
15    (c) Illinois public institutions of higher education may
16purchase personal property, supplies, and services jointly
17with a governmental, educational, medical, research, or
18similar entity, or with a consortium of such entities, where
19such joint purchasing is in the best interests of the
20institution. If a public institution of higher education is not
21the lead party to the joint purchase, Sections 3 and 4 are not
22applicable.
23(Source: P.A. 96-584, eff. 1-1-10.)
 
24    (30 ILCS 525/3)  (from Ch. 85, par. 1603)
25    Sec. 3. Conduct of competitive selection bid-letting.

 

 

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1Under any agreement of governmental units that desire to make
2joint purchases pursuant to subsection (a) of Section 2, one of
3the governmental units shall conduct the competitive selection
4process letting of bids. Where the State of Illinois is a party
5to the joint purchase agreement, the Department of Central
6Management Services or designated public institution of higher
7education shall conduct the competitive selection process
8letting of bids. Expenses of such competitive selection
9processes bid-letting may be shared by the participating
10governmental units in proportion to the amount of personal
11property, supplies or services each unit purchases.
12    When the State of Illinois is the lead a party to the joint
13purchase agreement pursuant to subsection (a) of Section 2, the
14acceptance of competitive selection process responses bids
15shall be in accordance with the Illinois Procurement Code and
16rules promulgated under that Code. When the State of Illinois
17is not the lead a party to the joint purchase agreement, the
18acceptance of competitive selection process responses bids
19shall be governed by the agreement.
20    When the State of Illinois is a party to a joint purchase
21agreement pursuant to subsection (a-5) of Section 2, the State
22governmental unit may act as the lead procurement entity state
23or as a participant state. When the State of Illinois
24procurement entity is the lead procurement entity state, all
25such joint purchases shall be conducted in accordance with the
26Illinois Procurement Code. When Illinois is a participant

 

 

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1state, all such joint purchases shall be conducted in
2accordance with the procurement laws of the procurement
3entity's lead state; provided that all such joint procurements
4must be by competitive selection process sealed bid. For those
5contracts where the governmental unit is the lead procurement
6entity, all All resulting awards shall be published in the
7appropriate volume of the Illinois Procurement Bulletin as may
8be required by Illinois law governing publication of the
9solicitation, protest, and award of Illinois State contracts.
10Contracts resulting from a joint purchase shall contain all
11provisions required by Illinois law and rule to the extent
12practical.
13    The personal property, supplies or services involved shall
14be distributed or rendered directly to each governmental unit
15taking part in the purchase. The person selling the personal
16property, supplies or services may bill each governmental unit
17separately for its proportionate share of the cost of the
18personal property, supplies or services purchased.
19    The credit or liability of each governmental unit shall
20remain separate and distinct. Disputes between bidders and
21governmental units shall be resolved between the immediate
22parties.
23(Source: P.A. 96-584, eff. 1-1-10.)
 
24    (30 ILCS 525/4)  (from Ch. 85, par. 1604)
25    Sec. 4. Bids and proposals. The purchases of all personal

 

 

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1property, supplies and services under this Act shall be based
2on competitive, sealed bids and proposals. For purchases
3pursuant to subsection (a) of Section 2, bids or proposals
4shall be solicited by public notice inserted at least once in a
5newspaper of general circulation in one of the counties where
6the materials are to be used and at least 5 calendar days
7before the final date of submitting bids or proposals. Where
8the State of Illinois is a party to the joint purchase
9agreement, public notice of the seeking of soliciting the bids
10or proposals shall be publicized inserted in the appropriate
11volume of the Illinois Procurement Bulletin. Such notice shall
12include a general description of the personal property,
13supplies or services to be purchased and shall state where all
14blanks and specifications may be obtained and the time and
15place for the opening of bids or proposals. The governmental
16unit conducting the competitive selection process bid-letting
17may also solicit sealed bids or proposals by sending requests
18by mail to prospective suppliers and by posting notices on a
19public bulletin board in its office.
20    All purchases, orders or contracts shall be awarded to the
21lowest responsible bidder or proposer, taking into
22consideration the qualities of the articles or services
23supplied, their conformity with the specifications, their
24suitability to the requirements of the participating
25governmental units and the delivery terms.
26    Where the State of Illinois is not a party, all bids or

 

 

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1proposals may be rejected and new bids or proposals solicited
2if one or more of the participating governmental units believes
3the public interest may be served thereby. Each bid or
4proposal, with the name of the bidder, shall be entered on a
5record, which record with the successful bid or proposal
6indicated thereon shall, after the award of the purchase or
7order or contract, be open to public inspection. A copy of all
8contracts shall be filed with the purchasing agent or clerk or
9secretary of each participating governmental unit.
10(Source: P.A. 96-584, eff. 1-1-10.)
 
11    Section 99. Effective date. This Act takes effect upon
12becoming law.".