HB3699 102ND GENERAL ASSEMBLY

LRB102 14093 RJF 19445 b

102ND GENERAL ASSEMBLY
State of Illinois
2021 and 2022
HB3699

Introduced 2/22/2021, by Rep. Jay Hoffman

SYNOPSIS AS INTRODUCED:

30 ILCS 517/3 new
30 ILCS 517/5
30 ILCS 517/7 new
30 ILCS 517/10
30 ILCS 517/13 new
30 ILCS 517/25
30 ILCS 517/35 new

Amends the Procurement of Domestic Products Act. Establishes the Made in Illinois and America Office as a department under the jurisdiction of the Executive Ethics Commission. Provides for the appointed of a Director of the Office. Provides for duties of the Office. Provides for the adoption of rules regarding the Office. Provides that purchasing agencies shall promote the purchase of and give preference to manufactured articles, materials, and supplies that have been manufactured in Illinois (currently, the United States). Provides that, if the purchasing agency determines that certain conditions apply 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. Provides waiver requirements under the Act. Requires purchasing agencies to submit compliance reports. Defines terms. Makes conforming changes. Effective immediately.

A BILL FOR

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 and by adding Sections 3, 7, 13, and 35 as follows:

(30 ILCS 517/3 new)

Sec. 3. Policy. It is the policy of Illinois that the State government should, consistent with applicable law, use terms and conditions of State financial assistance awards and State procurements to maximize the use of goods, products, and materials produced in, and services offered in, Illinois. An Illinois purchasing agency should, whenever possible, procure goods, products, materials, and services from sources that will help Illinois businesses compete in strategic industries and help Illinois workers thrive.

(30 ILCS 517/5)

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

"Component" and "cost of components" have the meanings given to those terms in the federal Buy American Act of 1933 and as provided under Part 25.003 of the Federal Acquisition Regulation.

"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" has the same meaning as provided under Section 1-15.70 of the Illinois Procurement Code means a State agency.

"State agency" has the same meaning as provided under Section 1-15.100 of the Illinois Procurement Code 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 517/7 new)

Sec. 7. Made in Illinois and America Office. The Made in Illinois and America Office is hereby established as a department under the jurisdiction of the Executive Ethics Commission. The Office shall be headed by a Director who shall be appointed by the Commission from among one of the chief procurement officers established under Section 10-20 of the Illinois Procurement Code. The Director and the Office shall perform all duties as provided under this Act and as may be prescribed by the Executive Ethics Commission. The Commission shall adopt all rules necessary for the implementation of this Section.

(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 waiver as provided under Section 13.

(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 waiver as provided under Section 13.

(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 517/13 new)

Sec. 13. Waiver.

(a) Before any purchasing agency may be granted a waiver from the purchase of products made in Illinois or the United States under this Act, and unless the Executive Ethics Commission provides otherwise, the purchasing agency shall provide the Made in Illinois and America Office with a description of its proposed waiver and a detailed justification for the use of goods, products, or materials that have not been mined, produced, or manufactured in either this State or the United States as a whole.

(b) The Made in Illinois and America Office shall publish all relevant information that purchasing agencies shall include when submitting descriptions of proposed waivers and justifications to the Office. The Office shall also establish a deadline, not to exceed 15 business days, by which purchasing agencies seeking a waiver shall either be: (i) notified that review of the proposed waiver has been excused; or (ii) notified of the result of the proposed waiver review.

(c) The Made in Illinois and America Office, in consultation with the Executive Ethics Commission, shall review each proposed waiver submitted under subsection (b), except when waiver review has been excused. If it is determined that issuing the proposed waiver would be consistent with applicable law and the policy set forth in this Act, then the purchasing agency shall be notified of that determination in writing. If it is determined that issuing the proposed waiver would not be consistent with applicable law or the policy set forth in this Act, then the purchasing agency shall be notified of that determination, and the proposed waiver shall be returned to the purchasing agency for further consideration along with a written explanation for the determination.

(d) When a purchasing agency is obligated by law to act more quickly than the review procedures established in this Section allow, the purchasing agency shall notify the Made in Illinois and America Office as soon as possible and, to the extent practicable, comply with the requirements set forth in this Section. Nothing in this Section shall be construed as a displacing purchasing agencies' authorities or responsibilities under law.

(e) The Made in Illinois and America Office shall make available to the public on the Internet website of the Executive Ethics Commission all information concerning proposed waivers and whether those waivers have been granted for the purpose of enabling manufacturers and other interested parties to easily identify proposed waivers, and whether such waivers would be granted. To the extent permitted by law, descriptions of proposed waivers and justifications submitted by purchasing agencies to the Office shall also be made publicly available on the website. The website shall also include contact information for the Office and the Executive Ethics Commission.

(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.)

(30 ILCS 517/35 new)

Sec. 35. Compliance reports. Beginning within 180 days after the effective date of this amendatory Act of the 102nd General Assembly, and bi-annually thereafter, each purchasing agency shall submit to the Made in Illinois and America Office a report on: (i) the purchasing agency's compliance with the Act; (ii) the purchasing agency's ongoing use of waivers, if any; (iii) the purchasing agency's analysis of goods, products, materials, and services not subject to the Act or where requirements of the Act have been waived; and (iv) any recommendations for how to further effectuate the policy set forth in this Act.

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