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90_HB0292 5 ILCS 420/2-105 new 5 ILCS 420/2-111 new 5 ILCS 420/2-115 new 25 ILCS 50/4 from Ch. 63, par. 42.34 25 ILCS 170/5.5 new 30 ILCS 505/6 from Ch. 127, par. 132.6 30 ILCS 505/6.10 new Amends the Illinois Governmental Ethics Act, the Fiscal Note Act, the Lobbyist Registration Act, and the Illinois Purchasing Act. Prohibits former State employees, whose duties directly related to procurement, from doing substantially similar business with their former State agency for 2 years. Prohibits current and former State employees from using confidential information, available due to their employment, for personal gain. Limits the cost of meals per person paid for by the State at State-sponsored events. Requires the fiscal notes prepared for legislation to include detailed information as to calculations. Prohibits lobbyists from providing legislators with gifts and honoraria. Requires the use of competitive sealed bidding in awarding certain State contracts for repairs, commodities, and equipment in excess of $10,000. Increases from one year to 10 years for the maximum period that a contractor may be suspended for violating competitive procurement procedures or failing to conform to contract specifications or delivery terms. LRB9000299MWpcA LRB9000299MWpcA 1 AN ACT concerning State funds and funds received by State 2 officials and employees, amending named Acts. 3 Be it enacted by the People of the State of Illinois, 4 represented in the General Assembly: 5 Section 5. The Illinois Governmental Ethics Act is 6 amended by adding Sections 2-105, 2-111, and 2-115 as 7 follows: 8 (5 ILCS 420/2-105 new) 9 Sec. 2-105. Meal expense limits. State funds shall not 10 be used to provide or reimburse the cost of meals at an event 11 sponsored in whole or in part by the State beyond the 12 following per person limits: $10 for breakfast; $15 for 13 lunch; and $20 for dinner. 14 (5 ILCS 420/2-111 new) 15 Sec. 2-111. Business with former State employees. Former 16 State employees whose duties with the State were directly 17 related to procurement are prohibited from doing business 18 that is substantially similar to their prior duties with the 19 State agency formerly employing them for a period of 2 years 20 from the termination of their employment with the State. 21 (5 ILCS 420/2-115 new) 22 Sec. 2-115. Use of confidential information. No current 23 or former State employee shall knowingly use confidential 24 information available only by virtue of that employment for 25 actual or anticipated personal gain or for the actual or 26 anticipated personal gain of another person. 27 Section 10. The Fiscal Note Act is amended by changing 28 Section 4 as follows: -2- LRB9000299MWpcA 1 (25 ILCS 50/4) (from Ch. 63, par. 42.34) 2 Sec. 4. The note shall be factual in nature, as brief and 3 concise as may be, and shall provide a reliable estimate in 4 dollars and, in addition, it shall include both the immediate 5 effect and, if determinable or reasonably foreseeable, the 6 long range effect of the measure. If, after careful 7 investigation, it is determined that no dollar estimate is 8 possible, the note shall contain a statement to that effect, 9 setting forth the reasons why no dollar estimate can be 10 given. The note shall also contain all background detail used 11 in completing the note, including all calculations, 12 assumptions, averages, and time frames used.A brief summary13or work sheet of computations used in arriving at fiscal note14figures shall be included.15 (Source: Laws 1965, p. 858.) 16 Section 15. The Lobbyist Registration Act is amended by 17 adding Section 5.5 as follows: 18 (25 ILCS 170/5.5 new) 19 Sec. 5.5. Gifts and honoraria to legislators. No 20 lobbyist may make a gift or honorarium to a member of the 21 General Assembly. For the purpose of this Section: 22 (1) Honorarium means payment for a speech or 23 presentation made by the recipient. 24 (2) Gift means any tangible item or service of 25 value, other than travel, lodging, meals, beverages, and 26 other entertainment, given without consideration. 27 Section 20. The Illinois Purchasing Act is amended by 28 changing Section 6 and adding Section 6.10 as follows: 29 (30 ILCS 505/6) (from Ch. 127, par. 132.6) 30 Sec. 6. State agencies may provide that prospective -3- LRB9000299MWpcA 1 contractors be prequalified to determine their 2 responsibility, as required by this Act. State agencies shall 3 also provide, among other matters which are not in conflict 4 with the policies and principles herein set forth: 5 a. That all purchases, contracts and expenditure of 6 funds shall be awarded pursuant to a competitive selection 7 procedure, except as provided in Section 6.10, which may 8 provide that contracts be awarded to the lowest responsible 9 bidder considering conformity with specifications, terms of 10 delivery, quality and serviceability, except as provided in 11 paragraphs e, f, g and h of this Section. 12 However, a competitive selection procedure need not be 13 followed in the following cases: 14 (1) Where the goods or services to be procured are 15 economically procurable from only one source, such as 16 contracts for local exchange telephone service, 17 electrical energy, and other public utility services, 18 books, pamphlets and periodicals, and specially designed 19 business and research equipment and related supplies. 20 (2) Where the services required are for 21 professional or artistic skills pursuant to a written 22 contract. 23 (3) In emergencies involving public health, public 24 safety, or where immediate expenditure is necessary for 25 repairs to State property in order to protect against 26 further loss of or damage to State property, to prevent 27 or minimize serious disruption in State services or to 28 insure the integrity of State records. 29 (4) In case of expenditures for personal services 30 paid to employees or officers of a State agency. As used 31 in this paragraph, "personal services" has the meaning 32 ascribed to that term in Section 14 of the State Finance 33 Act. 34 (5) Contracts for repairs, maintenance, remodeling, -4- LRB9000299MWpcA 1 renovation, or construction of a single project involving 2 an expenditure not to exceed $10,000 and not involving a 3 change or increase in the size, type or extent of an 4 existing facility. 5 (6) Contracts for repairs, maintenance, or any 6 other services not specifically exempt from a competitive 7 selection procedure under this Act where individual 8 orders for such services do not exceed $10,000$25,000. 9 (7) Purchases of commodities and equipment where 10 individual orders do not exceed $10,000are less than11$25,000. 12 (8) Contracts for the maintenance or servicing of, 13 or provision of repair parts for equipment which are made 14 with the manufacturers or authorized service agent of 15 that equipment where the provision of parts, maintenance 16 or servicing can best be performed by the manufacturer or 17 authorized service agent or such a contract would 18 otherwise be advantageous to the State, but the exception 19 provided in this sub-paragraph (8) does not apply to the 20 subdivisions of work listed in paragraph a-1-a of this 21 Section. 22 (9) Where the goods or services are procured from 23 another governmental agency. 24 (10) Purchases and contracts for the use, purchase, 25 delivery, movement or installation of data processing 26 equipment, software or services and telecommunications 27 and inter-connect equipment, software and services. 28 (11) Personal service contracts made by members, 29 officers, committees, or commissions of the General 30 Assembly. 31 (12) Any contract for duplicating machines and 32 supplies. 33 (13) Any contract for the purchase of natural gas 34 when the cost is less than that offered by a public -5- LRB9000299MWpcA 1 utility. 2 (14) Any contract for State Lottery tickets or 3 shares or for other State Lottery game related services. 4 (15) Purchases of and contracts for office 5 equipment and associated supplies when such contracts 6 provide for prices that are equal to or lower than 7 Federal General Services Administration contracts and 8 when such contracts or pricing result in economical 9 advantage to the State. 10 (16) Purchases and contracts by the Department of 11 State Police for the use, purchase or installation of 12 forensic science laboratory analytical equipment and 13 analytical data processing equipment used for forensic 14 science laboratory purposes only, including equipment 15 which is microprocessor controlled or controllable, and 16 its software. Prior to the purchase of or contract for 17 such equipment, the Director of the Department of State 18 Police shall certify to the Comptroller and the Auditor 19 General that such equipment is necessary and an integral 20 component of the Department of State Police's statutory 21 investigatory duties and that competitive bidding will 22 hamper such statutory duties. Such certification shall 23 include the prices of and specifications of the equipment 24 to be purchased or contracted for and the prices, 25 specifications and reasons for rejection of comparative 26 equipment by the Department of State Police. The 27 Comptroller shall file such certification with any 28 purchase vouchers or files maintained for the purchase. 29 The Auditor General shall require such certification to 30 be noted in audits performed at his direction. 31 (17) Purchases and contracts by the Department of 32 Nuclear Safety for the use, purchase or installation of 33 radiochemistry laboratory equipment, instruments and 34 equipment used to detect radiation or radioactivity, and -6- LRB9000299MWpcA 1 data processing equipment used for purposes of detecting 2 radiation or radioactivity. Prior to the purchase of or 3 contract for such equipment, the Director of the 4 Department of Nuclear Safety shall certify to the 5 Comptroller that such equipment is necessary and an 6 integral component of the Department of Nuclear Safety's 7 emergency response or radiation monitoring programs and 8 that competitive bidding will hamper such programs. Such 9 certification shall include the prices of and 10 specifications of the equipment to be purchased or 11 contracted for and the prices, specifications and reasons 12 for rejection of comparable equipment by the Department 13 of Nuclear Safety. The Comptroller shall file such 14 certification with any purchase vouchers or files 15 maintained for the purchase. 16 a-1. In case of contracts for the construction of 17 buildings, or for other construction work in or about 18 buildings and grounds, where the entire estimated cost of 19 such work exceeds $25,000, State agencies may provide that 20 prospective contractors, as well as architects and engineers 21 employed in connection with such projects, be prequalified to 22 determine their responsibility. Such prequalification may 23 require, without limitation, that the applicant for 24 prequalification list all public works contracts he has 25 performed within 2 years of the date of application, or the 4 26 most recent public works contracts he has performed, 27 whichever is fewer, and state whether he complied with the 28 Illinois Wage Assignment Act in performing such contracts. 29 Such statement shall be made under oath or affirmation and if 30 made falsely is punishable as perjury under Section 32-2 of 31 the Criminal Code of 1961. 32 a-1-a. Separate specifications shall be prepared, with 33 the exception of the Cardinal Creek Housing project and 2 34 grade schools associated with the Scott Joint-Use Airport in -7- LRB9000299MWpcA 1 St. Clair County which shall be permitted, as a one-time 2 exclusion, to allow turn-key development of the required 3 facilities on the basis of competitive quality, performance, 4 and price, for all equipment, labor and materials in 5 connection with the following 5 subdivisions of the work to 6 be performed: 7 1. Plumbing. 8 2. Heating, piping, refrigeration and automatic 9 temperature control systems, including the testing and 10 balancing of such systems. 11 3. Ventilating and distribution systems for 12 conditioned air, including the testing and balancing of 13 such systems. 14 4. Electric wiring. 15 5. General contract work. 16 Such specifications may be so drawn as to permit separate 17 and independent selection upon each of the above 5 18 subdivisions of work; provided, however, if the total 19 estimated cost of all such work is less than $100,000, such 20 separate and independent specifications and selection shall 21 not be required. All contracts awarded for any part thereof 22 shall award the 5 subdivisions of such work separately to 23 responsible and reliable persons, firms or corporations 24 engaged in these classes of work. Such contracts, at the 25 discretion of the awarding authority, may be assigned to the 26 successful contractor on the general contract work, or to the 27 successful contractor on the subdivision of work designated 28 by the awarding authority prior to beginning the selection 29 process as the prime subdivision of work; provided that all 30 payments will be made directly to the contractors for the 5 31 subdivisions of such work upon compliance with the conditions 32 of the contract. A contract may be let for one or more 33 buildings in any project to the same contractor. The 34 specifications shall require, however, that unless the -8- LRB9000299MWpcA 1 buildings are identical, a separate price shall be submitted 2 for each building. The contract may be awarded competitively 3 for each or all of the buildings included in the 4 specifications. 5 Whenever any contract entered into by a State agency for 6 the repair, remodeling, renovation or construction of a 7 building or structure or for the construction or maintenance 8 of a highway, as those terms are defined in Article 2 of the 9 Illinois Highway Code, or for the reclamation of abandoned 10 lands as those terms are defined in Article I of the 11 Abandoned Mined Lands and Water Reclamation Act, provides for 12 retention of a percentage of the contract price until final 13 completion and acceptance of the work, upon the request of 14 the contractor and with the approval of the State agency the 15 amount so retained may be deposited under a trust agreement 16 with an Illinois bank of the contractor's choice and subject 17 to the approval of the State agency. The contractor shall 18 receive any interest thereon. Upon application by the 19 contractor, the trust agreement must contain, as a minimum, 20 the following provisions: 21 A. the amount to be deposited subject to the trust; 22 B. the terms and conditions of payment in case of 23 default of the contractor; 24 C. the termination of the trust agreement upon 25 completion of the contract; and 26 D. the contractor shall be responsible for 27 obtaining the written consent of the bank trustee, and 28 any costs or service fees shall be borne by the 29 contractor. 30 The trust agreement may, at the discretion of the State 31 agency and upon request of the contractor, become operative 32 at the time of the first partial payment in accordance with 33 existing statutes and the State agency procedures. 34 a-2. In case of contracts for the purchase of supplies, -9- LRB9000299MWpcA 1 materials, commodities and equipment, wherever feasible 2 proposals shall be required to be itemized as to kind and the 3 solicitation for proposals shall state, with such degree of 4 particularity as the nature of the case permits, the quantity 5 of each item required. 6 a-3. That all contracts for the rental or lease of 7 electronic data processing equipment shall include a clause 8 that if more favorable terms are granted by the lessor, 9 supplier, dealer, or manufacturer to any similar state or 10 local governmental agency in any state in contemporaneous 11 leases or rental agreements covering data processing 12 equipment let under the same or similar financial terms and 13 circumstances, the more favorable terms shall be applicable 14 to all agreements or contracts made by any similar Illinois 15 state agency for the rental or lease of comparable data 16 processing equipment from the lessor, supplier, dealer, or 17 manufacturer. 18 b. That competitive procurement procedures shall be in 19 conformance with accepted business practices. 20 c. That proposals shall be publicly opened at the day 21 and hour and at the place specified in the solicitations. 22 d. That any contractor may be suspended for not more 23 than 10 yearsone yearfor violation of the competitive 24 procurement procedures or the competitive sealed bidding 25 process of any State agency or for failure to conform to 26 specifications or terms of delivery. 27 e. When a public contract is to be awarded under 28 competitive selection procedures or competitive sealed 29 bidding, a resident contractor must be allowed a preference 30 as against a non-resident bidder from any state which gives 31 or requires a preference to contractors from that state. The 32 preference is to be equal to the preference given or required 33 by the state of the non-resident contractor. Further, if 34 only non-resident contractors are under consideration, the -10- LRB9000299MWpcA 1 purchasing agency is within its right to specify that 2 Illinois labor and manufacturing locations be used as a part 3 of the manufacturing process, if applicable. This 4 specification may be negotiated, as part of the solicitation 5 process. 6 f. "Resident contractor" as used in this Section means a 7 person authorized to transact business in this State and 8 having a bona fide establishment for transacting business 9 within this State at which it was actually transacting 10 business on the date when any competitive solicitation for a 11 public contract is first advertised or announced, including a 12 foreign corporation duly authorized to transact business in 13 this State which has a bona fide establishment for 14 transacting business within this State at which it was 15 actually transacting business on the date when any 16 competitive solicitation for a public contract is first 17 advertised or announced. 18 g. Paragraphs e and f of this Section do not apply to 19 any contract for any project as to which federal funds are 20 available for expenditure when such paragraphs may be in 21 conflict with federal law or federal regulation. 22 h. When a public contract is to be awarded under 23 competitive procurement procedures or competitive sealed 24 bidding, an otherwise qualified bidder who will fulfill the 25 contract through the use of products made of recycled 26 materials may, on a pilot basis or pursuant to a pilot study, 27 be given preference over other contractors unable to do so, 28 provided that the cost included in the proposal of products 29 made of recycled materials is not more than 10% greater than 30 the cost of such products not made of recycled materials. 31 i. That every contract for the provision of goods or 32 services shall provide that the vendor or contractor shall 33 maintain, for a minimum of 5 years after the completion of 34 the contract, adequate books, records, and supporting -11- LRB9000299MWpcA 1 documents to verify the amounts, recipients, and uses of all 2 disbursements of funds passing in conjunction with the 3 contract; that the contract and all books, records, and 4 supporting documents related to the contract shall be 5 available for review and audit by the Auditor General; and 6 that the contractor agrees to cooperate fully with any audit 7 conducted by the Auditor General and to provide full access 8 to all relevant materials. Failure to maintain the books, 9 records, and supporting documents required by this Section 10 shall establish a presumption in favor of the State for the 11 recovery of any funds paid by the State under the contract 12 for which adequate books, records, and supporting 13 documentation are not available to support their purported 14 disbursement. 15 (Source: P.A. 87-847; 87-860; 87-991; 87-1113; 88-45.) 16 (30 ILCS 505/6.10 new) 17 Sec. 6.10. Competitive sealed bidding. 18 (a) A contract described in subsection (a)(5), (6), or 19 (7) of Section 6 except that it exceeds $10,000 shall be 20 awarded by competitive sealed bidding. 21 (b) An invitation for bids shall be issued and shall 22 include a purchase description and the material contractual 23 terms and conditions applicable to the procurement. 24 (c) Public notice of the invitation for bids shall be 25 published in the State newspaper at least 2 weeks before the 26 date set in the invitation for the opening of bids. 27 (d) Bids shall be opened publicly in the presence of one 28 or more witnesses at the time and place designated in the 29 invitation for bids. The name of each bidder, the amount of 30 each bid, and other relevant information shall be recorded. 31 After the award of the contract, each bid and the record of 32 each bid shall be open to public inspection. 33 (e) Bids shall be unconditionally accepted without -12- LRB9000299MWpcA 1 alteration or correction, except as authorized in subsection 2 (f). Bids shall be evaluated based on the requirements set 3 forth in the invitation for bids, which may include criteria 4 to determine acceptability such as inspection, testing, 5 quality, workmanship, delivery, and suitability for a 6 particular purpose. Those criteria that will affect the bid 7 price and be considered in evaluation for award, such as 8 discounts, transportation costs, and total or life cycle 9 costs, shall be objectively measurable. The invitation for 10 bids shall set forth the evaluation criteria to be used. Only 11 criteria set forth in the invitation for bids may be used in 12 the bid evaluation. 13 (f) Correction or withdrawal of inadvertently erroneous 14 bids before or after award, or cancellation of awards of 15 contracts based on bid mistakes, shall be permitted in 16 accordance with rules of the purchasing agency. After bid 17 opening, no changes in bid prices or other provisions of bids 18 prejudicial to the interest of the State or fair competition 19 shall be permitted. All decisions to permit the correction 20 or withdrawal of bids based on bid mistakes shall be 21 supported by written determination made by the purchasing 22 agency. 23 (g) The contract shall be awarded with reasonable 24 promptness by written notice to the lowest responsible and 25 responsive bidder whose bid meets the requirements and 26 criteria set forth in the invitation for bids, subject to 27 subsections (e), (f), and (h) of Section 6. 28 (h) When it is considered impracticable to initially 29 prepare a purchase description to support an award based on 30 price, an invitation for bids may be issued requesting the 31 submission of unpriced offers to be followed by an invitation 32 for bids limited to those bidders whose offers have been 33 qualified under the criteria set forth in the first 34 solicitation.