Illinois General Assembly - Full Text of HB5511
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Full Text of HB5511  103rd General Assembly

HB5511 103RD GENERAL ASSEMBLY

 


 
103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024
HB5511

 

Introduced 2/9/2024, by Rep. Jay Hoffman

 

SYNOPSIS AS INTRODUCED:
 
30 ILCS 500/45-105

    Amends the Illinois Procurement Code. In a provision concerning bid preferences for Illinois businesses, makes changes to the definition of "Illinois business". Provides that the chief procurement officer shall require at the time of submission of a bid, and may require at the Chief Procurement Officer's option at any time during the term of the contract, that the bidder or contractor submit an affidavit and other supporting documents demonstrating that the bidder or contractor is an Illinois business and, if applicable, submit an affidavit and other supporting documents demonstrating that the bidder or contractor is eligible for a 4% bid preference under the provisions. Provides that if a contractor who is awarded a contract through the use of a preference for Illinois businesses provided false information in order to obtain that preference, then the contractor is subject to disciplinary procedures under the Act.


LRB103 38791 MXP 68928 b

 

 

A BILL FOR

 

HB5511LRB103 38791 MXP 68928 b

1    AN ACT concerning finance.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Illinois Procurement Code is amended by
5changing Section 45-105 as follows:
 
6    (30 ILCS 500/45-105)
7    Sec. 45-105. Bid preference for Illinois businesses.
8    (a) (Blank).
9    (b) It is hereby declared to be the public policy of the
10State of Illinois to promote the economy of Illinois through
11the use of Illinois businesses for all State construction
12contracts.
13    (c) Construction agencies procuring construction and
14construction-related professional services shall make
15reasonable efforts to contract with Illinois businesses.
16    (d) Beginning in 2022, each construction agency shall
17submit a report to the Governor and the General Assembly by
18September 1 of each year that identifies the Illinois
19businesses procured by the construction agency, the primary
20location of the construction project, the percentage of the
21construction agency's utilization of Illinois businesses on
22the project as a whole, and the actions that the construction
23agency has undertaken to increase the use of Illinois

 

 

HB5511- 2 -LRB103 38791 MXP 68928 b

1businesses.
2    (e) In procuring construction and construction-related
3professional services for projects with a total value that
4exceeds the small purchase maximum established by Section
520-20 of this Code, construction agencies shall provide a bid
6preference to a responsive and responsible bidder that is an
7Illinois business as defined in this Section. The construction
8agency shall allocate to the lowest bid by an Illinois
9business that is responsible and responsive a bid preference
10of 4% of the contract base bid. This subsection applies only to
11projects where a business that is not an Illinois business
12submits a bid.
13    (e-5) The chief procurement officer shall require at the
14time of submission of a bid, and may require at the chief
15procurement officer's option at any time during the term of
16the contract, that the bidder or contractor submit an
17affidavit and other supporting documents demonstrating that
18the bidder or contractor is an Illinois business and, if
19applicable, submit an affidavit and other supporting documents
20demonstrating that the bidder or contractor is eligible for a
214% bid preference under this Section.
22    (e-10) If a contractor who is awarded a contract through
23the use of a preference for Illinois businesses provided false
24information in order to obtain that preference, then the
25contractor is subject to disciplinary procedures as identified
26in Section 50-65 of this Act.

 

 

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1    (f) This Section does not apply to any contract for any
2project for which federal funds are available for expenditure
3when its provisions may be in conflict with federal law or
4federal regulation.
5    (g) As used in this Section, "Illinois business" means a
6contractor that is, for at least one year prior, operating and
7headquartered in Illinois, subject to applicable State taxes,
8and providing, at the time that an invitation for a bid or
9notice of contract opportunity is first advertised,
10construction or construction-related professional services.
11"Illinois business" includes a foreign corporation duly
12authorized to transact business in this State that has a bona
13fide establishment for transacting business within this State
14where it is operating, headquartered, and performing
15construction or construction-related professional services at
16least one year before an invitation for a bid or notice of
17contract opportunity is first advertised. , and is operating
18as:
19        (1) a sole proprietor whose primary residence is in
20    Illinois;
21        (2) a business incorporated or organized as a domestic
22    corporation under the Business Corporation Act of 1983;
23        (3) a business organized as a domestic partnership
24    under the Uniform Partnership Act of 1997;
25        (4) a business organized as a domestic limited
26    partnership under the Uniform Limited Partnership Act of

 

 

HB5511- 4 -LRB103 38791 MXP 68928 b

1    2001;
2        (5) a business organized under the Limited Liability
3    Company Act; or
4        (6) a business organized under the Professional
5    Limited Liability Company Act.
6    "Illinois business" does not include any subcontractors or
7businesses headquartered outside of the State that have an
8affiliated entity operating in the State.
9(Source: P.A. 102-721, eff. 1-1-23; 103-570, eff. 1-1-24.)