HB0357eng 101ST GENERAL ASSEMBLY

HB0357 Engrossed LRB101 05160 RJF 50172 b

AN ACT concerning finance.

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

Section 5. The Procurement of Domestic Products Act is amended by changing Sections 5, 10, and 25 as follows:

(30 ILCS 517/5)

Sec. 5. Definitions. As used in this Act:

"Commercially available off-the-shelf item" has the same meaning ascribed to that term under Section 104 of Title 41 of the United States Code.

"Component" and "cost of components" have the meanings given to those terms in the federal Buy American Act of 1933.

"Manufactured in Illinois" means: (1) in the case of products that are not assembled articles, materials, or supplies, that the product is mined or produced in Illinois; (2) in the case of assembled articles, materials, or supplies, that design, final assembly, processing, packaging, testing, or other process that adds value, quality, or reliability occurs in Illinois and the cost of components produced in Illinois exceeds 50% of the cost of all of the components; or (3) that the product is a commercially available off-the-shelf item.

"Manufactured in the United States" means: (1) in the case of products that are not assembled articles, materials, or supplies, that the product is mined or produced in the United States; (2) , in the case of assembled articles, materials, or supplies, that design, final assembly, processing, packaging, testing, or other process that adds value, quality, or reliability occurs in the United States and the cost of domestic components exceeds 50% of the cost of all of the components; or (3) that the product is a commercially available off-the-shelf item.

"Procured products" means assembled articles, materials, or supplies purchased by a State agency.

"Purchasing agency" means a State agency.

"State agency" means each agency, department, authority, board, or commission of the executive branch of State government, including each university, whether created by statute or by executive order of the Governor.

"United States" means the United States and any place subject to the jurisdiction of the United States.

(Source: P.A. 98-463, eff. 8-16-13.)

(30 ILCS 517/10)

Sec. 10. Domestic United States products.

(a) Each purchasing agency making purchases of procured products shall promote the purchase of and give preference to manufactured articles, materials, and supplies that have been manufactured in Illinois the United States. Procured products manufactured in Illinois the United States shall be specified and purchased unless the purchasing agency determines that any of the following applies:

(1) The procured products are not manufactured in Illinois the United States in reasonably available quantities.

(2) The price of the procured products manufactured in Illinois the United States exceeds by an unreasonable amount the price of available and comparable procured products manufactured outside of Illinois the United States by 12% or more. To be eligible for an exemption under this paragraph (2), the purchasing agency must first obtain a written waiver from the chief procurement officer.

(3) The quality of the procured products manufactured in Illinois the United States is substantially less than the quality of the comparably priced, available, and comparable procured products manufactured outside of Illinois the United States.

(4) The purchase of the procured products manufactured outside of Illinois the United States better serves the public interest by helping to protect or save life, property, or the environment.

(5) The purchase of the procured products is made in conjunction with contracts or offerings of telecommunications, fire suppression, security systems, communications services, Internet services, or information services.

(6) The purchase is of pharmaceutical products, drugs, biologics, vaccines, medical devices used to provide medical and health care or treat disease or used in medical or research diagnostic tests, and medical nutritionals regulated by the Food and Drug Administration under the federal Food, Drug and Cosmetic Act.

(b) If the purchasing agency determines that any of paragraphs (1) through (4) of subsection (a) applies to a procured product, then, with respect to that procurement, the purchasing agency shall give preference to manufactured articles, materials, and supplies that have been manufactured in the United States. In that case, procured products manufactured in the United States shall be specified and purchased unless the purchasing agency determines that any of the following applies:

(1) The procured products are not manufactured in the United States in reasonably available quantities.

(2) The price of the procured products manufactured in the United States exceeds the price of available and comparable procured products manufactured outside the United States by 12% or more. To be eligible for an exemption under this paragraph (2), the purchasing agency must first obtain a written waiver from the chief procurement officer.

(3) The quality of the procured products manufactured in the United States is substantially less than the quality of the comparably priced, available, and comparable procured products manufactured outside the United States.

(4) The purchase of the procured products manufactured outside the United States better serves the public interest by helping to protect or save life, property, or the environment.

(5) The purchase of the procured products is made in conjunction with contracts or offerings of telecommunications, fire suppression, security systems, communications services, Internet services, or information services.

(6) The purchase is of pharmaceutical products, drugs, biologics, vaccines, medical devices used to provide medical and health care or treat disease or used in medical or research diagnostic tests, and medical nutritionals regulated by the Food and Drug Administration under the federal Food, Drug and Cosmetic Act.

(c) In determining the price of procured products for purposes of this Section, consideration shall be given to the life-cycle cost, including maintenance and repair of those procured products.

(Source: P.A. 93-954, eff. 1-1-05; 94-540, eff. 1-1-06.)

(30 ILCS 517/25)

Sec. 25. Penalties. If a contractor is awarded a contract through the use of a preference under this Act and knowingly supplies procured products under that contract that are not manufactured in Illinois or the United States, as applicable, then (i) the contractor is barred from obtaining any State contract for a period of 5 years after the violation is discovered by the purchasing agency, (ii) the purchasing agency may void the contract, and (iii) the purchasing agency may recover damages in a civil action in an amount 3 times the value of the preference.

(Source: P.A. 93-954, eff. 1-1-05; 94-540, eff. 1-1-06.)

Section 99. Effective date. This Act takes effect upon becoming law.