State of Illinois
90th General Assembly
Legislation

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90_HB1633enr

      305 ILCS 5/8A-6           from Ch. 23, par. 8A-6
      305 ILCS 5/8A-13 new
      305 ILCS 5/8A-14 new
      305 ILCS 5/8A-15 new
      305 ILCS 5/8A-16 new
      305 ILCS 5/8A-17 new
          Amends the  "Public  Assistance  Fraud"  Article  of  the
      Public  Aid  Code.   Makes  it  unlawful  to  do  any  of the
      following:  defraud any State or federally funded or mandated
      health plan in connection with the delivery of or payment for
      health care benefits; directly or indirectly  give  or  offer
      anything  of  value to a health care official with the intent
      to influence or reward any act or decision of a  health  care
      official;  falsify or conceal a material fact or make a false
      statement or representation in connection with the  provision
      of  health  care;  or  engage  in  any  unfair  or  deceptive
      marketing  practice  in  connection with providing any health
      care service or health plan.  Provides for enhanced penalties
      for violators other than individuals.
                                                    LRB9003208DJcdA
HB1633 Enrolled                               LRB9003208DJcdA
 1        AN ACT in relation to the delivery of goods and services.
 2        Be it enacted by the People of  the  State  of  Illinois,
 3    represented in the General Assembly:
 4                              ARTICLE 1
 5                         GENERAL PROVISIONS
 6        Section  1-1.  Short title.  This Act may be cited as the
 7    Illinois Procurement Code.
 8        Section 1-5.  Public policy.  It is the purpose  of  this
 9    Code  and  is declared to be the policy of the State that the
10    principles of competitive bidding and economical  procurement
11    practices  shall be applicable to all purchases and contracts
12    by or for any State agency.
13        Section 1-10.  Application.
14        (a)  This Code applies only  to  procurements  for  which
15    contractors  were  first  solicited on or after July 1, 1998.
16    This Code shall not be construed  to  affect  or  impair  any
17    contract,  or any provision of a contract, entered into based
18    on a solicitation prior to the implementation  date  of  this
19    Code as described in Article 99, including but not limited to
20    any  covenant  entered into with respect to any revenue bonds
21    or similar instruments. All procurements for which  contracts
22    are  solicited  between the effective date of Articles 50 and
23    99 and July 1, 1998 shall be substantially in accordance with
24    this Code and its intent.
25        (b)  This Code shall apply regardless of  the  source  of
26    the  funds  with  which  the  contracts  are  paid, including
27    federal assistance moneys. This Code shall not apply to:
28             (1)  contracts between the State and  its  political
29        subdivisions  or  other  governments,  or  between  State
HB1633 Enrolled             -2-               LRB9003208DJcdA
 1        governmental  bodies  except  as specifically provided in
 2        this Code.
 3             (2)  grants.
 4             (3)  purchase of care.
 5             (4)  hiring of an individual as employee and not  as
 6        an   independent   contractor,  whether  pursuant  to  an
 7        employment code or policy or by  contract  directly  with
 8        that individual.
 9             (5)  collective bargaining contracts.
10             (6)  purchase of real estate.
11             (7)  contracts  necessary to prepare for anticipated
12        litigation,  enforcement  actions,   or   investigations,
13        provided  that  the  chief  legal counsel to the Governor
14        shall give his or her prior approval when  the  procuring
15        agency   is  one  subject  to  the  jurisdiction  of  the
16        Governor, and provided that the chief  legal  counsel  of
17        any  other  procuring  entity  subject to this Code shall
18        give his or her prior approval when the procuring  entity
19        is not one subject to the jurisdiction of the Governor.
20        Section  1-15.   Definitions.  For  the  purposes of this
21    Code, the words set forth in the following Sections  of  this
22    Article have the meanings set forth in those Sections.
23        Section    1-15.03.   Associate   Procurement   Officers.
24    "Associate  Procurement   Officers"   means   those   persons
25    appointed as provided in Section 10-15.
26        Section  1-15.05.   Board.  "Board" means the Procurement
27    Policy Board.
28        Section  1-15.10.   Business.    "Business"   means   any
29    corporation,  partnership,  individual,  sole proprietorship,
30    joint stock company, joint venture, or  other  private  legal
HB1633 Enrolled             -3-               LRB9003208DJcdA
 1    entity.
 2        Section  1-15.15.   Chief  Procurement  Officer.   "Chief
 3    Procurement Officer" means:
 4        (1)  for     procurements     for     construction    and
 5    construction-related  services  committed  by  law   to   the
 6    jurisdiction  or  responsibility  of  the Capital Development
 7    Board, the executive  director  of  the  Capital  Development
 8    Board.
 9        (2)  for     procurements     for    all    construction,
10    construction-related services, operation of any facility, and
11    the provision of any service or activity committed by law  to
12    the jurisdiction or responsibility of the Illinois Department
13    of  Transportation,  including  the  direct  or  reimbursable
14    expenditure  of all federal funds for which the Department of
15    Transportation is responsible  or  accountable  for  the  use
16    thereof  in  accordance  with  federal  law,  regulation,  or
17    procedure, the Secretary of Transportation.
18        (3)  for all procurements made by a public institution of
19    higher   education,   a   representative  designated  by  the
20    Governor.
21        (4)  for all other  procurements,  the  Director  of  the
22    Department of Central Management Services.
23        Section  1-15.20.   Construction and construction-related
24    services.      "Construction"   means   building,   altering,
25    repairing, improving, or demolishing any public structure  or
26    building,  or  making improvements of any kind to public real
27    property.   Construction  does  not   include   the   routine
28    operation, routine repair, or routine maintenance of existing
29    structures, buildings, or real property.
30        "Construction-related   services"  means  those  services
31    including construction design, layout,  inspection,  support,
32    feasibility   or   location   study,  research,  development,
HB1633 Enrolled             -4-               LRB9003208DJcdA
 1    planning,  or  other  investigative  study  undertaken  by  a
 2    construction  agency  concerning  construction  or  potential
 3    construction.
 4        Section  1-15.25.   Construction  agency.   "Construction
 5    agency" means the Capital Development Board for  construction
 6    or   remodeling   of  State-owned  facilities;  the  Illinois
 7    Department of Transportation for construction or  maintenance
 8    of  roads, highways, bridges, and airports; the Illinois Toll
 9    Highway Authority for construction  or  maintenance  of  toll
10    highways;   and   any   other   State  agency  entering  into
11    construction contracts as authorized by law or by  delegation
12    from the chief procurement officer.
13        Section  1-15.30.   Contract.  "Contract" means all types
14    of State agreements, regardless of what they may  be  called,
15    for  the procurement, use, or disposal of supplies, services,
16    professional or artistic services,  or  construction  or  for
17    leases   of   real  property  or  capital  improvements,  and
18    including master contracts, contracts for  financing  through
19    use    of   installment   or   lease-purchase   arrangements,
20    renegotiated contracts, and change orders.
21        Section    1-15.35.      Cost-reimbursement     contract.
22    "Cost-reimbursement  contract" means a contract under which a
23    contractor is reimbursed for costs  that  are  allowable  and
24    allocable  in  accordance  with  the  contract  terms and the
25    provisions of this Code, and a fee, if any.
26        Section 1-15.42.  Grant.  "Grant" means the furnishing by
27    the State of assistance, whether financial or  otherwise,  to
28    any  person  to support a program authorized by law.  It does
29    not include an award the  primary  purpose  of  which  is  to
30    procure  an  end product for the direct benefit or use of the
HB1633 Enrolled             -5-               LRB9003208DJcdA
 1    State agency making the grant, whether in the form of  goods,
 2    services, or construction.  A contract that results from such
 3    an award is not a grant and is subject to this Code.
 4        Section  1-15.45.   Invitation for bids.  "Invitation for
 5    bids" means the process by which a purchasing agency requests
 6    information from bidders, including  all  documents,  whether
 7    attached  or  incorporated  by reference, used for soliciting
 8    bids.
 9        Section 1-15.50.  Negotiation.  "Negotiation"  means  the
10    process  of  selecting a contractor other than by competitive
11    sealed bids, multi-step sealed bidding, or competitive sealed
12    proposals, whereby a purchasing agency can establish any  and
13    all  terms  and  conditions  of  a  procurement  contract  by
14    discussion with one or more prospective contractors.
15        Section  1-15.55.   Person.  "Person" means any business,
16    public  or  private  corporation,  partnership,   individual,
17    union,  committee,  club, unincorporated association or other
18    organization or group of individuals, or other legal entity.
19        Section 1-15.60.   Professional  and  artistic  services.
20    "Professional  and  artistic  services"  means those services
21    provided under contract to a State  agency  by  a  person  or
22    business,  acting  as an independent contractor, qualified by
23    education, experience, and technical ability.
24        Section  1-15.65.    Purchase   description.    "Purchase
25    description"  means  the  words  used  in  a  solicitation to
26    describe the supplies,  services,  professional  or  artistic
27    services,  or construction to be procured or real property or
28    capital improvements to be leased and includes specifications
29    attached to or made a part of the solicitation.
HB1633 Enrolled             -6-               LRB9003208DJcdA
 1        Section 1-15.68.  Purchase of care.  "Purchase  of  care"
 2    means a contract with a person for the furnishing of medical,
 3    educational, psychiatric, vocational, rehabilitative, social,
 4    or  human  services  directly  to  a recipient of a State aid
 5    program.
 6        Section 1-15.70.  Purchasing agency.  "Purchasing agency"
 7    means a State agency that is authorized by this Code, by  its
 8    implementing  rules,  or  by authorized delegation of a chief
 9    procurement officer to enter into contracts.
10        Section 1-15.75.  Request for  proposals.   "Request  for
11    proposals"  means  the  process  by which a purchasing agency
12    requests information from offerors, including all  documents,
13    whether  attached  or  incorporated  by  reference,  used for
14    soliciting proposals.
15        Section  1-15.80.    Responsible   bidder   or   offeror.
16    "Responsible  bidder  or  offeror" means a person who has the
17    capability in all respects  to  perform  fully  the  contract
18    requirements  and  the  integrity  and  reliability that will
19    assure good faith performance.
20        Section 1-15.85.  Responsive bidder.  "Responsive bidder"
21    means a person who has submitted a bid that conforms  in  all
22    material respects to the invitation for bids.
23        Section   1-15.90.    Services.    "Services"  means  the
24    furnishing of labor, time, or effort  by  a  contractor,  not
25    involving  the  delivery of a specific end product other than
26    reports or supplies  that  are  incidental  to  the  required
27    performance.
28        Section 1-15.95.  Specifications.  "Specifications" means
HB1633 Enrolled             -7-               LRB9003208DJcdA
 1    any  description, provision, or requirement pertaining to the
 2    physical or functional characteristics or of the nature of  a
 3    supply,  service,  or  other  item  to  be  procured  under a
 4    contract.  Specifications may include a  description  of  any
 5    requirement  for  inspecting, testing, or preparing a supply,
 6    service, professional or artistic service,  construction,  or
 7    other item for delivery.
 8        Section  1-15.100.   State  agency.  "State agency" means
 9    and includes all boards, commissions, agencies, institutions,
10    authorities, and bodies politic and corporate of  the  State,
11    created by or in accordance with the constitution or statute,
12    of  the executive branch of State government and does include
13    colleges,   universities,   and   institutions   under    the
14    jurisdiction  of  the  governing  boards of the University of
15    Illinois,  Southern  Illinois  University,   Illinois   State
16    University,  Eastern  Illinois  University, Northern Illinois
17    University,  Western  Illinois  University,   Chicago   State
18    University,  Governor State University, Northeastern Illinois
19    University, and the Board of Higher Education.  However, this
20    term does not apply to public employee retirement systems  or
21    investment  boards  that  are  subject  to  fiduciary  duties
22    imposed  by the Illinois Pension Code or to the University of
23    Illinois Foundation.  "State agency" does not  include  units
24    of  local  government,  school  districts, community colleges
25    under the Public Community  College  Act,  and  the  Illinois
26    Comprehensive Health Insurance Board.
27        Section  1-15.105.   State  purchasing  officer.   "State
28    purchasing  officer"  means  a person appointed by any of the
29    chief  procurement  officers  to  exercise  the   procurement
30    authority created by this Code or by rule.
31        Section   1-15.110.    Supplies.   "Supplies"  means  all
HB1633 Enrolled             -8-               LRB9003208DJcdA
 1    personal property, including but not  limited  to  equipment,
 2    materials,  printing,  and  insurance,  and  the financing of
 3    those supplies.
 4        Section 1-15.115.  Using agency.  "Using agency" means  a
 5    State agency that uses items procured under this Code.
 6        Section 1-25.  Property rights.  No person shall have any
 7    right  to  a  specific  contract  with  the State unless that
 8    person has a contract that has been signed by an  officer  or
 9    employee  of the purchasing agency with appropriate signature
10    authority.  The State shall be under no obligation  to  issue
11    an award or execute a contract.
12        Section  1-30.  Applicability  to Constitutional Officers
13    and the Legislative and Judicial Branches.
14        (a)  The  constitutional  officers  shall  procure  their
15    needs in  a  manner  substantially  in  accordance  with  the
16    requirements  of this Code and shall promulgate rules no less
17    restrictive than the requirements of this Code.
18        (b)  The legislative and  judicial  branches  are  exempt
19    from  this Code.  The legislative and judicial branches shall
20    make procurements in accordance  with  rules  promulgated  to
21    meet  their  needs.  Procurement  rules  promulgated  by  the
22    legislative  and judicial branches may incorporate provisions
23    of this Code.
24                              ARTICLE 5
25                         POLICY ORGANIZATION
26        Section 5-5.  Procurement Policy Board.
27        (a)  Creation.  There is  created  a  Procurement  Policy
28    Board.
29        (b)  Authority  and  duties.   The  Board  shall have the
HB1633 Enrolled             -9-               LRB9003208DJcdA
 1    authority and responsibility to  review,  comment  upon,  and
 2    recommend,  consistent  with  this  Code, rules and practices
 3    governing the procurement, management, control, and  disposal
 4    of  supplies,  services,  professional  or artistic services,
 5    construction,  and  real  property  and  capital  improvement
 6    leases procured by the State.  Upon a  three-fifths  vote  of
 7    its  members,  the  Board  may  review  a  contract.  Upon  a
 8    three-fifths  vote  of  its  members,  the  Board may propose
 9    procurement rules  for  consideration  by  chief  procurement
10    officers.   These proposals shall be published in each volume
11    of the Procurement Bulletin. Except as otherwise provided  by
12    law,  the  Board shall act upon the vote of a majority of its
13    members who have been appointed and are serving.
14        (c)  Members.  The  Board  shall  consist  of  5  members
15    appointed  one  each  by  the  4 legislative leaders and  the
16    Governor. Each  member  shall  have  demonstrated  sufficient
17    business   or   professional   experience   in  the  area  of
18    procurement to perform the functions of the Board.  No member
19    may be a member of the General Assembly.
20        (d)  Terms.  Of  the  initial  appointees,  the  Governor
21    shall  designate one member, as Chairman, to serve a one-year
22    term, the President of the Senate  and  the  Speaker  of  the
23    House  shall  each  appoint one member to serve 3-year terms,
24    and the Minority Leader of the House and the Minority  Leader
25    of  the  Senate shall each appoint one member to serve 2-year
26    terms.  Subsequent terms shall be 4 years.   Members  may  be
27    reappointed for succeeding terms.
28        (e)  Reimbursement.     Members    shall    receive    no
29    compensation   but  shall  be  reimbursed  for  any  expenses
30    reasonably incurred in the performance of their duties.
31        (f)  Staff support.  Upon  a  three-fifths  vote  of  its
32    members, the Board may employ an executive director.  Subject
33    to  appropriation,  the  Board  also  may  have up to 3 staff
34    persons. Other support services  shall  be  provided  by  the
HB1633 Enrolled             -10-              LRB9003208DJcdA
 1    chief procurement officers.
 2        (g)  Meetings.   Meetings  of  the Board may be conducted
 3    telephonically, electronically, or through the use  of  other
 4    telecommunications. Written minutes of such meetings shall be
 5    created and available for public inspection and copying.
 6        Section 5-23. Interests of Board members.  Members of the
 7    Procurement  Policy  Board employed by or holding an interest
 8    in an entity doing business with or attempting to do business
 9    with the State of Illinois do not, by their  service  on  the
10    Board,  preclude  that  entity  from  doing  business with or
11    attempting to do business with the State.
12        Section  5-25.   Rulemaking  authority.  A  State  agency
13    authorized to make procurements under this  Code  shall  have
14    the   authority   to  promulgate  rules  to  carry  out  that
15    authority. That rulemaking on specific procurement topics  is
16    mentioned  in  specific  Sections  of  this Code shall not be
17    construed as prohibiting  or  limiting  rulemaking  on  other
18    procurement topics.
19        All  rules  shall  be  promulgated in accordance with the
20    Illinois   Administrative   Procedure    Act.     Contractual
21    provisions,  specifications, and procurement descriptions are
22    not rules and are not subject to the Illinois  Administrative
23    Procedure  Act. All rules other than those promulgated by the
24    Board shall be presented in writing  to  the  Board  for  its
25    review and comment.  The Board shall express its opinions and
26    recommendations  in  writing.    Both  the proposed rules and
27    Board recommendations shall  be  made  available  for  public
28    review.   The  rules shall also be approved by the applicable
29    chief  procurement  officer  and  the  Joint   Committee   on
30    Administrative Rules.
31                             ARTICLE 10
HB1633 Enrolled             -11-              LRB9003208DJcdA
 1                            APPOINTMENTS
 2        Section  10-5.   Exercise  of procurement authority.  The
 3    State  purchasing  officers  shall  be  appointed  by   their
 4    respective  chief  procurement  officer  and  approved by the
 5    director of each State agency.  The State purchasing  officer
 6    of each State agency shall exercise the procurement authority
 7    created  by  this  Code  except as otherwise provided in this
 8    Code.
 9        Section   10-10.  General   appointments.    The    chief
10    procurement  officer  shall  appoint and the director of each
11    State agency shall approve  a  State  purchasing  officer  to
12    exercise  within  his  or  her  jurisdiction  the procurement
13    authority created  by  this  Code.   In  the  absence  of  an
14    appointed   and   approved   State  purchasing  officer,  the
15    applicable  chief  procurement  officer  shall  exercise  the
16    procurement authority created by this Code.
17        Section  10-15.   Associate  Procurement  Officers.   The
18    Governor, with the consent of the statutory chief procurement
19    officers, may for proper and effective administration of this
20    Code appoint associate procurement officers.   All  associate
21    procurement  officers  shall  be  submitted to the Senate for
22    advice and consent.  For the  purposes  of  this  Code,  duly
23    appointed  associate  procurement  officers shall function in
24    all  respects  as  chief  procurement  officers.    Associate
25    procurement  officers  shall  serve  at  the  pleasure of the
26    Governor.
27                             ARTICLE 15
28                        PROCUREMENT BULLETIN
29        Section 15-1.   Publisher.   The  Department  of  Central
HB1633 Enrolled             -12-              LRB9003208DJcdA
 1    Management  Services  is  the  State  agency  responsible for
 2    publishing its volumes of the Illinois Procurement  Bulletin.
 3    The  Capital  Development Board is responsible for publishing
 4    its  volumes  of  the  Illinois  Procurement  Bulletin.   The
 5    Department of Transportation is  responsible  for  publishing
 6    its  volumes of the Illinois Procurement Bulletin. The higher
 7    education  chief  procurement  officer  is  responsible   for
 8    publishing  the  higher  education  volumes  of  the Illinois
 9    Procurement Bulletin.
10        Each volume of the Illinois Procurement Bulletin shall be
11    available electronically and  may   be  available  in  print.
12    References  in  this Code to the publication and distribution
13    of the Illinois Procurement Bulletin include both  its  print
14    and electronic formats.
15        Section   15-10.   Contents.   The  Illinois  Procurement
16    Bulletin shall contain notices and other information required
17    by this Code or by rules promulgated under this  Code  to  be
18    published  in the Illinois Procurement Bulletin.  Each volume
19    shall include a comprehensive index of its contents.
20        Section 15-15.  Publication.  All volumes of the Illinois
21    Procurement Bulletin shall be published  at  least  once  per
22    month.   Any  volume,  including  volumes  available in print
23    format, shall be available through subscription for a minimal
24    fee not exceeding publication and  distribution  costs.   The
25    Illinois  Procurement  Bulletin  shall be distributed free to
26    public libraries within Illinois.
27        Section 15-20.  Qualified bidders.  Subscription  to  the
28    Illinois  Procurement  Bulletin  shall  not  be  required  to
29    qualify as a bidder or offeror under this Code.
30        Section 15-25.  Bulletin content.
HB1633 Enrolled             -13-              LRB9003208DJcdA
 1        (a)  Invitations  for  bids.   Notice  of  each and every
 2    contract that is offered,  including  renegotiated  contracts
 3    and  change  orders, shall be published in the Bulletin.  The
 4    applicable chief procurement officer may provide by  rule  an
 5    organized format for the publication of this information, but
 6    in  any case it must include at least the date first offered,
 7    the date submission of  offers  is  due,  the  location  that
 8    offers  are  to be submitted to, the purchasing State agency,
 9    the responsible State purchasing officer,  a  brief  purchase
10    description,  the method of source selection, and information
11    of how to obtain a comprehensive purchase description and any
12    disclosure and contract forms.
13        (b)  Contracts let or awarded.  Notice of each and  every
14    contract  that  is  let  or  awarded,  including renegotiated
15    contracts and change orders, shall be published in  the  next
16    available  subsequent  Bulletin,  and  the  applicable  chief
17    procurement  officer may  provide by rule an organized format
18    for the publication of this information, but in any  case  it
19    must  include  at  least  all of the information specified in
20    subsection  (a)  as  well  as  the  name  of  the  successful
21    responsible bidder or offeror, the contract price, the number
22    of unsuccessful responsive bidders, and any other  disclosure
23    specified in any Section of this Code.
24        (c)  Emergency    purchase    disclosure.     Any   chief
25    procurement officer, State purchasing  officer,  or  designee
26    exercising emergency purchase authority under this Code shall
27    publish a written description and reasons and the total cost,
28    if  known,  or  an  estimate  if  unknown and the name of the
29    responsible chief procurement officer  and  State  purchasing
30    officer,  and  the business or person contracted with for all
31    emergency purchases in the next timely, practicable Bulletin.
32        (d)  Other required  disclosure.   The  applicable  chief
33    procurement  officer  shall provide by rule for the organized
34    publication  of  all  other  disclosure  required  in   other
HB1633 Enrolled             -14-              LRB9003208DJcdA
 1    Sections of this Code in a timely manner.
 2                             ARTICLE 20
 3               SOURCE SELECTION AND CONTRACT FORMATION
 4        Section   20-5.   Method  of  source  selection.   Unless
 5    otherwise authorized by law, all  State  contracts  shall  be
 6    awarded  by  competitive  sealed  bidding, in accordance with
 7    Section 20-10, except as provided in Sections  20-15,  20-20,
 8    20-25, 20-30, 20-35, 30-15, and 40-20.
 9        Section 20-10.  Competitive sealed bidding.
10        (a)  Conditions  for use.  All contracts shall be awarded
11    by competitive sealed bidding except as otherwise provided in
12    Section 20-5.
13        (b)  Invitation for bids.  An invitation for  bids  shall
14    be  issued  and  shall include a purchase description and the
15    material contractual terms and conditions applicable  to  the
16    procurement.
17        (c)  Public  notice.  Public notice of the invitation for
18    bids shall be published in the Illinois Procurement  Bulletin
19    at  least  14  days before the date set in the invitation for
20    the opening of bids.
21        (d)  Bid opening.  Bids shall be opened publicly  in  the
22    presence  of  one  or  more  witnesses  at the time and place
23    designated in the invitation for  bids.   The  name  of  each
24    bidder,   the   amount   of  each  bid,  and  other  relevant
25    information as may be specified by rule  shall  be  recorded.
26    After  the  award  of  the  contract, the winning bid and the
27    record of each unsuccessful  bid  shall  be  open  to  public
28    inspection.
29        (e)  Bid  acceptance  and  bid evaluation.  Bids shall be
30    unconditionally accepted without  alteration  or  correction,
31    except  as  authorized in this Code.  Bids shall be evaluated
HB1633 Enrolled             -15-              LRB9003208DJcdA
 1    based on the requirements set forth  in  the  invitation  for
 2    bids,  which  may include criteria to determine acceptability
 3    such as inspection, testing, quality, workmanship,  delivery,
 4    and  suitability  for  a  particular purpose.  Those criteria
 5    that  will  affect  the  bid  price  and  be  considered   in
 6    evaluation  for  award,  such  as  discounts,  transportation
 7    costs,  and  total  or life cycle costs, shall be objectively
 8    measurable. The invitation  for  bids  shall  set  forth  the
 9    evaluation criteria to be used.
10        (f)  Correction  or  withdrawal  of  bids.  Correction or
11    withdrawal of inadvertently erroneous bids  before  or  after
12    award,  or  cancellation  of awards of contracts based on bid
13    mistakes, shall be permitted in accordance with rules.  After
14    bid opening, no changes in bid prices or other provisions  of
15    bids  prejudicial  to  the  interest  of  the  State  or fair
16    competition shall be permitted.  All decisions to permit  the
17    correction  or withdrawal of bids based on bid mistakes shall
18    be  supported  by  written  determination  made  by  a  State
19    purchasing officer.
20        (g)  Award.   The  contract   shall   be   awarded   with
21    reasonable   promptness  by  written  notice  to  the  lowest
22    responsible  and  responsive  bidder  whose  bid  meets   the
23    requirements  and  criteria  set  forth in the invitation for
24    bids, except when a State purchasing officer determines it is
25    not in  the  best  interest  of  the  State  and  by  written
26    explanation  determines  another  bidder  shall  receive  the
27    award.   The  explanation  shall  appear  in  the appropriate
28    volume of the Illinois Procurement Bulletin.
29        (h)  Multi-step sealed bidding.  When  it  is  considered
30    impracticable  to initially prepare a purchase description to
31    support an award based on price, an invitation for  bids  may
32    be  issued requesting the submission of unpriced offers to be
33    followed by an invitation for bids limited to  those  bidders
34    whose offers have been qualified under the criteria set forth
HB1633 Enrolled             -16-              LRB9003208DJcdA
 1    in the first solicitation.
 2        Section 20-15.  Competitive sealed proposals.
 3        (a)  Conditions  for  use.  When provided under this Code
 4    or under rules, or when the purchasing agency  determines  in
 5    writing  that the use of competitive sealed bidding is either
 6    not practicable or not advantageous to the State, a  contract
 7    may be entered into by competitive sealed proposals.
 8        (b)  Request for proposals.  Proposals shall be solicited
 9    through a request for proposals.
10        (c)  Public  notice.   Public  notice  of the request for
11    proposals shall be  published  in  the  Illinois  Procurement
12    Bulletin  at  least  14  days  before  the  date  set  in the
13    invitation for the opening of proposals.
14        (d)  Receipt of proposals.   Proposals  shall  be  opened
15    publicly in the presence of one or more witnesses at the time
16    and  place  designated  in  the  request  for  proposals, but
17    proposals shall be opened in a manner to avoid disclosure  of
18    contents   to   competing  offerors  during  the  process  of
19    negotiation.  A record of proposals  shall  be  prepared  and
20    shall be open for public inspection after contract award.
21        (e)  Evaluation  factors.   The  requests  for  proposals
22    shall  state  the  relative  importance  of  price  and other
23    evaluation factors.  Proposals shall be submitted in 2 parts:
24    the first, covering  items  except  price;  and  the  second,
25    covering  price.   The  first  part of all proposals shall be
26    evaluated and ranked independently of the second part of  all
27    proposals.
28        (f)  Discussion  with  responsible offerors and revisions
29    of proposals.  As provided in the request for  proposals  and
30    under  rules,  discussions  may be conducted with responsible
31    offerors who submit proposals  determined  to  be  reasonably
32    susceptible  of  being  selected for award for the purpose of
33    clarifying   and   assuring   full   understanding   of   and
HB1633 Enrolled             -17-              LRB9003208DJcdA
 1    responsiveness  to  the  solicitation  requirements.    Those
 2    offerors  shall  be  accorded  fair  and equal treatment with
 3    respect to any opportunity for  discussion  and  revision  of
 4    proposals.   Revisions  may be permitted after submission and
 5    before award for the purpose  of  obtaining  best  and  final
 6    offers.    In   conducting  discussions  there  shall  be  no
 7    disclosure  of  any  information   derived   from   proposals
 8    submitted by competing offerors.  If information is disclosed
 9    to  any  offeror,  it  shall  be  provided  to  all competing
10    offerors.
11        (g)  Award.  Awards shall  be  made  to  the  responsible
12    offeror  whose  proposal  is  determined in writing to be the
13    most advantageous to the  State,  taking  into  consideration
14    price and the evaluation factors set forth in the request for
15    proposals.    The  contract  file  shall contain the basis on
16    which the award is made.
17        Section 20-20.  Small purchases.
18        (a)  Amount.  Any individual procurement of  supplies  or
19    services  other  than  professional or artistic services, not
20    exceeding $10,000 and any  procurement  of  construction  not
21    exceeding  $30,000  may  be  made  without competitive sealed
22    bidding.   Procurements shall not be artificially divided  so
23    as to constitute a small purchase under this Section.
24        (b)  Adjustment.  Each July 1, the small purchase maximum
25    established in subsection (a) shall be adjusted for inflation
26    as  determined  by  the  Consumer  Price  Index for All Urban
27    Consumers as determined by the United  States  Department  of
28    Labor and rounded to the nearest $100.
29        (c)  Based  upon  rules  proposed  by the Board and rules
30    promulgated by the  chief  procurement  officers,  the  small
31    purchase   maximum  established  in  subsection  (a)  may  be
32    modified.
HB1633 Enrolled             -18-              LRB9003208DJcdA
 1        Section 20-25.  Sole source procurements.  In  accordance
 2    with  standards set by rule, contracts may be awarded without
 3    use of the specified method of source selection when there is
 4    only one economically feasible source for the item.  At least
 5    2 weeks before entering into  a  sole  source  contract,  the
 6    purchasing  agency  shall publish in the Illinois Procurement
 7    Bulletin a notice of intent to do so along with a description
 8    of the item to be  procured  and  the  intended  sole  source
 9    contractor.
10        Section 20-30.  Emergency purchases.
11        (a)  Conditions  for  use.   In accordance with standards
12    set  by  rule,  a  purchasing  agency  may   make   emergency
13    procurements  without  competitive  sealed  bidding  or prior
14    notice when there exists a threat to public health or  public
15    safety,  or  when  immediate  expenditure  is  necessary  for
16    repairs to State property in order to protect against further
17    loss  of  or damage to State property, to prevent or minimize
18    serious disruption  in  State  services,  or  to  ensure  the
19    integrity  of State records.  Emergency procurements shall be
20    made with as much competition as  is  practicable  under  the
21    circumstances.    A  written description of the basis for the
22    emergency and reasons for the  selection  of  the  particular
23    contractor shall be included in the contract file.
24        (b)  Notice.   Before  the next appropriate volume of the
25    Illinois Procurement Bulletin, the  purchasing  agency  shall
26    publish  in  the Illinois Procurement Bulletin a copy of each
27    written description and reasons and the total  cost  of  each
28    emergency  procurement  made during the previous month.  When
29    only an estimate of the total cost is known at  the  time  of
30    publication,  the estimate shall be identified as an estimate
31    and published.  When the actual total cost is determined,  it
32    shall also be published in like manner before the 10th day of
33    the next succeeding month.
HB1633 Enrolled             -19-              LRB9003208DJcdA
 1        (c)  Affidavits.     A   purchasing   agency   making   a
 2    procurement  under this Section shall  file  affidavits  with
 3    the chief procurement officer and the Auditor  General within
 4    10  days  after  the  procurement  setting  forth the  amount
 5    expended, the  name  of  the  contractor  involved,  and  the
 6    conditions   and   circumstances   requiring   the  emergency
 7    procurement.  When only an estimate of the cost is  available
 8    within  10 days after the procurement,  the actual cost shall
 9    be reported immediately after it is determined.  At  the  end
10    of  each  fiscal quarter, the Auditor General shall file with
11    the  Legislative Audit Commission and the Governor a complete
12    listing of all emergency procurements  reported  during  that
13    fiscal  quarter.   The  Legislative  Audit  Commission  shall
14    review  the  emergency   procurements so reported and, in its
15    annual reports, advise the General Assembly  of  procurements
16    that appear to constitute an abuse of this Section.
17        (d)  Quick  purchases.  The chief procurement officer may
18    promulgate rules  extending  the  circumstances  by  which  a
19    purchasing  agency  may  make  purchases  under this Section,
20    including  but  not  limited  to  the  procurement  of  items
21    available at a discount for a limited period of time.
22        Section 20-35.  Competitive selection procedures.
23        (a)  Conditions  for  use.   The  services  specified  in
24    Article 35 shall be procured in accordance with this Section,
25    except as authorized under Sections 20-25 and 20-30  of  this
26    Article.
27        (b)  Statement  of qualifications.  Potential contractors
28    shall submit statements of qualifications and expressions  of
29    interest.   The  chief  procurement  officer  shall specify a
30    uniform format for statements of qualifications. Persons  may
31    amend these statements at any time by filing a new statement.
32        (c)  Public   announcement   and   form  of  request  for
33    proposals.  Public notice of the  need  for  the  procurement
HB1633 Enrolled             -20-              LRB9003208DJcdA
 1    shall  be  given  in  the form of a request for proposals and
 2    published in the Illinois Procurement Bulletin  at  least  14
 3    days before the date set in the request for proposals for the
 4    opening  of  proposals.   The  request  for  proposals  shall
 5    describe  the services required, list the type of information
 6    and data required of each offeror,  and  state  the  relative
 7    importance of particular qualifications.
 8        (d)  Discussions.   The  purchasing  agency  may  conduct
 9    discussions  with any offeror who has submitted a proposal to
10    determine   the   offeror's   qualifications   for    further
11    consideration.      Discussions   shall   not   disclose  any
12    information  derived  from  proposals  submitted   by   other
13    offerors.
14        (e)  Award.    Award   shall   be  made  to  the  offeror
15    determined in writing by the purchasing  agency  to  be  best
16    qualified  based  on  the evaluation factors set forth in the
17    request  for  proposals  and  negotiation   of   compensation
18    determined to be fair and reasonable.
19        Section  20-40.   Cancellation of invitations for bids or
20    requests for proposals.  An invitation for  bids,  a  request
21    for  proposals,  or  any  other solicitation may be cancelled
22    without penalty, or any and all  bids  or  proposals  may  be
23    rejected  in  whole  or  in  part  as may be specified in the
24    solicitation, when it is in the best interests of  the  State
25    in  accordance  with  rules.  The reasons for cancellation or
26    rejection shall be made part of the contract file.
27        Section 20-45.  Prequalification of suppliers.  The chief
28    procurement  officer   shall   promulgate   rules   for   the
29    development  of  prequalified  supplier lists for appropriate
30    categories of purchases and  the  annual  updating  of  those
31    lists.
HB1633 Enrolled             -21-              LRB9003208DJcdA
 1        Section  20-50.  Specifications.  Specifications shall be
 2    prepared in accordance with  consistent  standards  that  are
 3    promulgated  by the chief procurement officer and reviewed by
 4    the Board and the Joint Committee  on  Administrative  Rules.
 5    Those  standards  shall include a prohibition against the use
 6    of brand-name only products, except for products intended for
 7    retail sale or as specified by  rule,  and  shall  include  a
 8    restriction  on  the  use  of  specifications  drafted  by  a
 9    potential  bidder.   All specifications shall seek to promote
10    overall economy  for  the  purposes  intended  and  encourage
11    competition  in satisfying the State's needs and shall not be
12    unduly restrictive.
13        Section 20-55.   Types  of  contracts.   Subject  to  the
14    limitations  of  this Section and unless otherwise authorized
15    by law, any type of  contract  that  will  promote  the  best
16    interests   of   the   State   may   be   used,  except  that
17    cost-plus-a-percentage-of-cost contracts  are  prohibited.  A
18    cost-reimbursement   contract   may   be  used  only  when  a
19    determination is made in writing  that  a  cost-reimbursement
20    contract  is  likely  to be less costly to the State than any
21    other type or that it is impracticable  to  obtain  the  item
22    required  except  under  that  type of contract.  The general
23    form  of  contracts  shall  be  determined   by   the   chief
24    procurement officer.
25        Section 20-60.  Duration of contracts.
26        (a)  Maximum  duration.   A  contract may be entered into
27    for any period of time deemed to be in the best interests  of
28    the  State but not exceeding 10 years.  The length of a lease
29    for  real  property  or  capital  improvements  shall  be  in
30    accordance with the provisions of Section 40-25.
31        (b)  Subject to appropriation.   All  contracts  made  or
32    entered   into   shall   recite  that  they  are  subject  to
HB1633 Enrolled             -22-              LRB9003208DJcdA
 1    termination and  cancellation  in  any  year  for  which  the
 2    General  Assembly  fails  to  make  an  appropriation to make
 3    payments under the terms of the contract.
 4        Section 20-65.  Right to audit records.
 5        (a)  Maintenance of books and  records.   Every  contract
 6    and    subcontract    shall   require   the   contractor   or
 7    subcontractor, as applicable, to maintain books  and  records
 8    relating  to  the  performance of the contract or subcontract
 9    and necessary to support amounts charged to the  State  under
10    the  contract or subcontract.  The books and records shall be
11    maintained by the contractor for a period of 3 years from the
12    later of the date of final  payment  under  the  contract  or
13    completion  of  the  contract  and by the subcontractor for a
14    period of 3 years from the later of the date of final payment
15    under the  subcontract  or  completion  of  the  subcontract.
16    However, the 3-year period shall be extended for the duration
17    of  any  audit  in  progress  at  the  time  of that period's
18    expiration.
19        (b)  Audit.  Every contract and subcontract shall provide
20    that all books and records required to  be  maintained  under
21    subsection (a) shall be available for review and audit by the
22    Auditor  General  and  the purchasing agency.  Every contract
23    and   subcontract   shall   require   the   contractor    and
24    subcontractor,  as  applicable,  to  cooperate fully with any
25    audit.
26        (c)  Failure to maintain books and records.   Failure  to
27    maintain the books and records required by this Section shall
28    establish  a  presumption  in  favor  of  the  State  for the
29    recovery of any funds paid by the State  for  which  required
30    books and records are not available.
31        Section     20-70.      Finality    of    determinations.
32    Determinations made by a purchasing agency  under  this  Code
HB1633 Enrolled             -23-              LRB9003208DJcdA
 1    are  final  and conclusive unless they are clearly erroneous,
 2    arbitrary, capricious, or contrary to law.
 3        Section  20-75.   Disputes  and  protests.    The   chief
 4    procurement officers shall by rule establish procedures to be
 5    followed   by  purchasing  agencies  in  resolving  protested
 6    solicitations and  awards  and  contract  controversies,  for
 7    debarment  or  suspension  of  contractors, and for resolving
 8    other procurement-related disputes.
 9        Section 20-80.  Contract files.
10        (a)  Written determinations.  All written  determinations
11    required  under  this Article shall be placed in the contract
12    file maintained by the chief procurement officer.
13        (b)  Filing  with  Comptroller.   Whenever   a   contract
14    liability, except for:
15             (1)  contracts paid from personal services, or
16             (2)  contracts  between  the State and its employees
17        to defer compensation in accordance with  Article  24  of
18        the Illinois Pension Code
19    exceeding  $10,000 is incurred by any State agency, a copy of
20    the contract, purchase order, or lease shall  be  filed  with
21    the  Comptroller within 15 days thereafter.  Any cancellation
22    or modification to any such contract liability shall be filed
23    with the Comptroller within 15 days of its execution.
24        (c)  Late filing affidavit.  When  a  contract,  purchase
25    order,  or lease required to be filed by this Section has not
26    been filed within 30 days of execution, the Comptroller shall
27    refuse to issue a warrant for payment  thereunder  until  the
28    agency  files  with  the  Comptroller  the contract, purchase
29    order, or  lease  and  an  affidavit,  signed  by  the  chief
30    executive  officer  of  the  agency  or  his or her designee,
31    setting forth an explanation of why  the  contract  liability
32    was  not  filed  within 30 days of execution.  A copy of this
HB1633 Enrolled             -24-              LRB9003208DJcdA
 1    affidavit shall be filed with the Auditor General.
 2        (d)  Professional and artistic  services  contracts.   No
 3    voucher  shall  be submitted to the Comptroller for a warrant
 4    to be drawn for the payment of money from the State  treasury
 5    or from other funds held by the State Treasurer on account of
 6    any  contract for services involving professional or artistic
 7    skills involving an expenditure of more than $5,000  for  the
 8    same  type  of service at the same location during any fiscal
 9    year unless the contract is reduced  to  writing  before  the
10    services  are performed and filed with the Comptroller.  When
11    a contract for professional or artistic skills in  excess  of
12    $5,000  was  not  reduced to writing before the services were
13    performed, the Comptroller shall refuse to  issue  a  warrant
14    for  payment  for  the  services until the State agency files
15    with the Comptroller:
16             (1)  a written contract covering the services, and
17             (2)  an affidavit, signed  by  the  chief  executive
18        officer  of  the  State  agency  or  his or her designee,
19        stating that the services for which payment is being made
20        were agreed to before commencement of  the  services  and
21        setting  forth an explanation of why the contract was not
22        reduced to writing before the services commenced.
23    A copy of this affidavit shall  be  filed  with  the  Auditor
24    General.    The  Comptroller  shall  maintain professional or
25    artistic  service  contracts   filed   under   this   Section
26    separately from other filed contracts.
27        (e)  Method  of  source  selection.   When  a contract is
28    filed  with  the  Comptroller   under   this   Section,   the
29    Comptroller's  file  shall  identify  the  method  of  source
30    selection used in obtaining the contract.
31        Section  20-85.   Federal  requirements.   A State agency
32    receiving federal-aid funds,  grants,  or  loans  shall  have
33    authority to adopt its procedures, rules, project statements,
HB1633 Enrolled             -25-              LRB9003208DJcdA
 1    drawings,  maps,  surveys,  plans,  specifications,  contract
 2    terms,  estimates, bid forms, bond forms, and other documents
 3    or practices to comply with the  regulations,  policies,  and
 4    procedures  of  the  designated authority, administration, or
 5    department of the United States, in order to remain  eligible
 6    for such federal-aid funds, grants, or loans.
 7        Section    20-90.     Foreign    country    procurements.
 8    Procurements  to  meet  the needs of State offices located in
 9    foreign countries shall comply with the  provisions  of  this
10    Code to the extent practical.
11        Section  20-95.   Donations.   Nothing in this Code or in
12    the rules promulgated under this Code shall prevent any State
13    agency from complying with the terms and  conditions  of  any
14    grant,  gift,  or bequest that calls for the procurement of a
15    particular good  or  service  or  the  use  of  a  particular
16    contractor,   provided  that  the  grant,  gift,  or  bequest
17    provides majority funding for the contract.
18        Section  20-105.   State  agency  printing.   All  books,
19    pamphlets, documents, and reports published through or by the
20    State of Illinois or any State agency, board,  or  commission
21    shall have printed thereon "Printed by authority of the State
22    of  Illinois",  the  date  of each publication, the number of
23    copies printed, and the printing order  number.   Each  using
24    agency  shall  be responsible for ascertaining the compliance
25    of printing  materials  procured  by  or  for  it  with  this
26    Section.   No  printing or reproduction contract shall be let
27    and no printing or reproduction shall  be  accomplished  when
28    that wording does not appear on the material to be printed or
29    reproduced.   No  publication  may  have written, stamped, or
30    printed on it, or attached to it,  "Compliments  of  ........
31    (naming a person)" or any words of similar import.
HB1633 Enrolled             -26-              LRB9003208DJcdA
 1        Section   20-110.   Printing  cost  offsets.   The  chief
 2    procurement  officer  may  promulgate  rules  permitting  the
 3    exchange of advertising rights in or receipt of  free  copies
 4    of printed products procured under this Article as a means of
 5    reducing   printing  costs.   The  rules  shall  specify  the
 6    appropriate  method  of  source  selection  to  be  used   to
 7    competitively acquire printing cost offsets.
 8                             ARTICLE 25
 9                  SUPPLIES AND SERVICES (EXCLUDING
10                      PROFESSIONAL OR ARTISTIC)
11        Section 25-5.  Applicability.  All contracts for supplies
12    and  services,  excluding  professional or artistic services,
13    shall be procured in accordance with the provisions  of  this
14    Article.
15        Section  25-10.   Authority.   State  purchasing officers
16    shall have the authority to procure  supplies  and  services,
17    except  as  that  authority  may  be  limited  by  the  chief
18    procurement officer.
19        Section 25-15.  Method of source selection.
20        (a)  Competitive  sealed  bidding.  Except as provided in
21    subsection (b) and Sections  20-20,  20-25,  and  20-30,  all
22    State contracts for supplies and services shall be awarded by
23    competitive sealed bidding in accordance with Section 20-10.
24        (b)  Other  methods.   The  chief procurement officer may
25    establish by rule  (i)  categories  of  purchases,  including
26    non-governmental  joint  purchases,  that may be made without
27    competitive sealed bidding  and  (ii)  the  most  competitive
28    alternate  method  of source selection that shall be used for
29    each category of purchase.
HB1633 Enrolled             -27-              LRB9003208DJcdA
 1        Section  25-30.   More  favorable  terms.   A  supply  or
 2    service contract  may  include,  if  determined  by  a  State
 3    purchasing  officer to be in the best interests of the State,
 4    a clause requiring that if more favorable terms  are  granted
 5    by  the contractor to any similar state or local governmental
 6    agency in any state in a contemporaneous agreement let  under
 7    the  same  or  similar  financial terms and circumstances for
 8    comparable supplies or services,  the  more  favorable  terms
 9    shall be applicable under the contract.
10        Section 25-35.  Purchase of coal and postage stamps.
11        (a)  Delivery    of   necessary   supplies.    To   avoid
12    interruption or impediment of delivery of necessary supplies,
13    commodities, and coal, State  purchasing  officers  may  make
14    purchases  of or contracts for supplies and commodities after
15    April 30 of a fiscal year when delivery of the  supplies  and
16    commodities  is  to be made after June 30 of that fiscal year
17    and payment for which is to be made from  appropriations  for
18    the next fiscal year.
19        (b)  Postage.   All  postage  stamps purchased from State
20    funds must be  perforated  for  identification  purposes.   A
21    General Assembly member may furnish the U.S. Post Office with
22    a  warrant so as to allow for the creation or continuation of
23    a bulk rate mailing fund in the name of the General  Assembly
24    member  or may furnish a postage meter company or post office
25    with a warrant so as to facilitate the purchase of a  postage
26    meter  and  its  stamps.  Any postage meter so purchased must
27    also contain a stamp that shall state "Official State Mail".
28        Section  25-45.   Energy  conservation  program.    State
29    purchasing   officers  may  enter  into  energy  conservation
30    program contracts that provide for utility cost savings.  The
31    chief procurement officer shall promulgate  and  adopt  rules
32    for the implementation of this Section.
HB1633 Enrolled             -28-              LRB9003208DJcdA
 1        Section  25-55.   Annual  reports.   Every printed annual
 2    report produced by a State  agency  shall  bear  a  statement
 3    indicating whether it was printed by the State of Illinois or
 4    by contract and indicating the printing cost per copy and the
 5    number   of  copies  printed.    The  Department  of  Central
 6    Management Services shall prepare and submit to  the  General
 7    Assembly  on  the  fourth Wednesday of January in each year a
 8    report setting forth with respect to each  State  agency  for
 9    the  calendar year immediately preceding the calendar year in
10    which the report  is  filed  the  total  quantity  of  annual
11    reports  printed,  the  total cost, and the cost per copy and
12    the cost per page of the annual report of  the  State  agency
13    printed during the calendar year covered by the report.
14        Section 25-60.  Prevailing wage requirements.
15        (a)  All  services  furnished  under service contracts of
16    $2,000 or more or $200 or more per month and  under  printing
17    contracts  shall  be subject to the following prevailing wage
18    requirements:
19             (1)  Not less than the general prevailing wage  rate
20        of  hourly  wages  for work of a similar character in the
21        locality in which the work is produced shall be  paid  by
22        the  successful  vendor  to its employees who perform the
23        work on the State contracts.  The bidder or  offeror,  in
24        order  to  be  considered  to  be a responsible bidder or
25        offeror for the purposes of this Code, shall  certify  to
26        the  purchasing  agency  that  wages  to  be  paid to its
27        employees are no less, and fringe  benefits  and  working
28        conditions  of  employees  are  not  less favorable, than
29        those prevailing in the locality where the contract is to
30        be performed.  Prevailing wages  and  working  conditions
31        shall  be  determined  by  the  Director  of the Illinois
32        Department of Labor.
33             (2)  Whenever a collective bargaining  agreement  is
HB1633 Enrolled             -29-              LRB9003208DJcdA
 1        in  effect between an employer, other than a governmental
 2        body, and service or printing  employees  as  defined  in
 3        this   Section  who  are  represented  by  a  responsible
 4        organization that is in no way influenced  or  controlled
 5        by  the  management,  that  agreement  and its provisions
 6        shall be  considered  as  conditions  prevalent  in  that
 7        locality and shall be the minimum requirements taken into
 8        consideration by the Director of Labor.
 9             (3)  Collective  bargaining agreements between State
10        employees and the State of Illinois shall  not  be  taken
11        into  account  by  the Department of Labor in determining
12        the prevailing wage rate.
13        (b)  As used in this Section, "services" means janitorial
14    cleaning services, window cleaning services,  food  services,
15    and  security  services.   "Printing"  means and includes all
16    processes and operations involved in printing, including  but
17    not  limited  to  letterpress, offset, and gravure processes,
18    the  multilith  method,  photographic  or  other  duplicating
19    process,  the   operations   of   composition,   platemaking,
20    presswork,  and  binding,  and  the  end  products  of  those
21    processes,  methods,  and  operations.   As used in this Code
22    "printing" does not include photocopiers used in  the  course
23    of  normal  business  activities, photographic equipment used
24    for geographic mapping, or printed matter  that  is  commonly
25    available to the general public from contractor inventory.
26        (c)  The terms "general prevailing rate of hourly wages",
27    "general  prevailing  rate  of wages", or "prevailing rate of
28    wages" when used in this Section mean the hourly  cash  wages
29    plus  fringe  benefits  for  health  and  welfare, insurance,
30    vacations, and pensions paid generally, in  the  locality  in
31    which  the  work  is being performed, to employees engaged in
32    work of a similar character.
33        (d)  "Locality" shall have  the  meaning  established  by
34    rule.
HB1633 Enrolled             -30-              LRB9003208DJcdA
 1        (e)  This  Section  does  not apply to services furnished
 2    under contracts for professional or artistic services.
 3        (f)  This Section does not apply to  vocational  programs
 4    of training for physically or mentally handicapped persons or
 5    to sheltered workshops for the severely disabled.
 6                             ARTICLE 30
 7                   CONSTRUCTION AND CONSTRUCTION-
 8                    RELATED PROFESSIONAL SERVICES
 9        Section    30-5.     Applicability.    Construction   and
10    construction-related professional services shall be  procured
11    in accordance with this Article.
12        Section  30-10.   Authority.  Construction agencies shall
13    have   the   authority   to    procure    construction    and
14    construction-related professional services.
15        Section 30-15.  Method of source selection.
16        (a)  Competitive  sealed  bidding.  Except as provided in
17    subsections (b), (c), and (d) and Sections 20-20, 20-25,  and
18    20-30,  all State construction contracts shall be procured by
19    competitive sealed bidding in accordance with Section 20-10.
20        (b)  Other methods.  The Capital Development Board  shall
21    establish  by  rule  construction  purchases that may be made
22    without competitive sealed bidding and the  most  competitive
23    alternate method of source selection that shall be used.
24        (c)  Construction-related   professional  services.   All
25    construction-related professional services contracts shall be
26    awarded  in   accordance   with   the   provisions   of   the
27    Architectural, Engineering, and Land Surveying Qualifications
28    Based  Selection  Act.    "Professional services" means those
29    services within the scope of the  practice  of  architecture,
30    professional    engineering,   structural   engineering,   or
HB1633 Enrolled             -31-              LRB9003208DJcdA
 1    registered land surveying, as defined by  the  laws  of  this
 2    State.
 3        (d)  Correctional     facilities.      Remodeling     and
 4    rehabilitation  projects  at  correctional  facilities  under
 5    $25,000  funded from the General Revenue Fund are exempt from
 6    the  provisions  of  this   Article.    The   Department   of
 7    Corrections  may  use  inmate  labor  for  the  remodeling or
 8    rehabilitation of correctional facilities on  those  projects
 9    under $25,000 funded from the General Revenue Fund.
10        Section    30-20.     Prequalification.     The   Capital
11    Development Board shall promulgate rules for the  development
12    of   prequalified   supplier   lists   for  construction  and
13    construction-related professional services and  the  periodic
14    updating     of     those     lists.      Construction    and
15    construction-related  professional  services  contracts  over
16    $25,000 may be awarded to any qualified suppliers.
17        Section 30-25.  Retention of  a  percentage  of  contract
18    price.   Whenever any contract entered into by a construction
19    agency   for   the   repair,   remodeling,   renovation,   or
20    construction of a building or structure, for the construction
21    or maintenance of a highway, as those terms  are  defined  in
22    Article   2   of  the  Illinois  Highway  Code,  or  for  the
23    reclamation of abandoned lands as those terms are defined  in
24    Article  I of the Abandoned Mined Lands and Water Reclamation
25    Act provides  for  the  retention  of  a  percentage  of  the
26    contract  price  until final completion and acceptance of the
27    work, upon  the  request  of  the  contractor  and  with  the
28    approval  of  the  construction agency the amount so retained
29    may be deposited under a trust  agreement  with  an  Illinois
30    bank  or financial institution of the contractor's choice and
31    subject to the approval of  the  construction  agency.    The
32    contractor  shall  receive  any  interest  on  the  deposited
HB1633 Enrolled             -32-              LRB9003208DJcdA
 1    amount.   Upon  application  by  the  contractor,  the  trust
 2    agreement  must  contain,  at  a   minimum,   the   following
 3    provisions:
 4             (1)  the  amount  to  be  deposited  subject  to the
 5        trust;
 6             (2)  the terms and conditions of payment in case  of
 7        default by the contractor;
 8             (3)  the  termination  of  the  trust agreement upon
 9        completion of the contract; and
10             (4)  the  contractor  shall   be   responsible   for
11        obtaining the written consent of the bank trustee and for
12        any costs or service fees.
13        The  trust  agreement  may,  at  the  discretion  of  the
14    construction  agency  and  upon  request  of  the contractor,
15    become effective at the time of the first partial payment  in
16    accordance with existing statutes and rules.
17        Section  30-30.   Contracts  in  excess  of $250,000. For
18    building  construction  contracts  in  excess  of   $250,000,
19    separate  specifications shall be prepared for all equipment,
20    labor, and materials  in  connection  with  the  following  5
21    subdivisions of the work to be performed:
22             (1)  plumbing;
23             (2)  heating,  piping,  refrigeration, and automatic
24        temperature control systems, including  the  testing  and
25        balancing of those systems;
26             (3)  ventilating   and   distribution   systems  for
27        conditioned air, including the testing and  balancing  of
28        those systems;
29             (4)  electric wiring; and
30             (5)  general contract work.
31        The specifications must be so drawn as to permit separate
32    and  independent  bidding  upon each of the 5 subdivisions of
33    work.  All contracts awarded for any part thereof shall award
HB1633 Enrolled             -33-              LRB9003208DJcdA
 1    the 5 subdivisions of  work  separately  to  responsible  and
 2    reliable  persons,  firms,  or  corporations engaged in these
 3    classes of work.  The contracts, at  the  discretion  of  the
 4    construction agency, may be assigned to the successful bidder
 5    on  the  general contract work or to the successful bidder on
 6    the subdivision of work designated by the construction agency
 7    before the bidding as the prime subdivision of work, provided
 8    that all payments will be made directly  to  the  contractors
 9    for  the  5  subdivisions  of  work  upon compliance with the
10    conditions of the contract.  A contract may be let for one or
11    more buildings in any project to the same  contractor.    The
12    specifications   shall  require,  however,  that  unless  the
13    buildings are identical, a separate price shall be  submitted
14    for each building.  The contract may be awarded to the lowest
15    responsible  bidder for each or all of the buildings included
16    in the specifications.
17        Section 30-35.  Expenditure in excess of contract  price.
18        (a)  Germaneness.   No  funds  in  excess of the contract
19    price may be obligated or expended unless the additional work
20    to be performed or materials to be furnished  is  germane  to
21    the  original  contract.   Even  if  germane  to the original
22    contract, no additional expenditures or obligations  may,  in
23    their total combined amounts, be in excess of the percentages
24    of  the  original contract amount set forth in subsection (b)
25    unless they have received the prior written approval  of  the
26    construction  agency.   In  the  event  that the total of the
27    combined additional expenditures or obligations  exceeds  the
28    percentages  of  the  original  contract  amount set forth in
29    subsection (b), the construction agency shall investigate all
30    the additional expenditures or obligations in excess  of  the
31    original  contract  amount  and  shall  in writing approve or
32    disapprove subsequent expenditures or obligations  and  state
33    in detail the reasons for the approval or disapproval.
HB1633 Enrolled             -34-              LRB9003208DJcdA
 1        (b)  Written  determination  required.  When the contract
 2    amount is no more than $75,000, the percentage  shall  be  9%
 3    (maximum  $6,750).   When  the  contract  amount  is  between
 4    $75,001  and  $200,000,  the  percentage  shall  be 7% of the
 5    amount above $75,000 plus $6,750, but not  to  exceed  7%  of
 6    $200,000  (maximum  $14,000).   When  the  contract amount is
 7    between $200,001 and $500,000, the percentage shall be 5%  of
 8    the  amount above $200,000 plus $14,000, but not to exceed 5%
 9    of $500,000 (maximum $25,000).  When the contract  amount  is
10    in  excess  of  $500,000,  the  percentage shall be 3% of the
11    amount above $500,000 plus $25,000.
12        Section 30-45.  Other Acts.  This Article is  subject  to
13    applicable provisions of the following Acts:
14             (1)  the Prevailing Wage Act;
15             (2)  the Public Construction Bond Act;
16             (3)  the Public Works Employment Discrimination Act;
17             (4)  the Public Works Preference Act;
18             (5)  the  Employment  of  Illinois Workers on Public
19        Works Act;
20             (6)  the Public Contract Fraud Act; and
21             (7)  the Illinois Construction Evaluation Act.
22                             ARTICLE 35
23                     PROCUREMENT OF PROFESSIONAL
24                        AND ARTISTIC SERVICES
25        Section  35-5.   Application.    All   professional   and
26    artistic  services  shall  be procured in accordance with the
27    provisions of this Article.
28        Section  35-10.   Authority.    Each   State   purchasing
29    officer, under the supervision of his or her respective chief
30    procurement  officer,  has the authority to select, according
HB1633 Enrolled             -35-              LRB9003208DJcdA
 1    to  the  provisions  of  this  Article,  his   or   her   own
 2    professional and artistic services.
 3        Section 35-15.  Prequalification.
 4        (a)  The  Director of Central Management Services and the
 5    higher education chief procurement officer shall each develop
 6    appropriate and  reasonable  prequalification  standards  and
 7    categories of professional and artistic services.
 8        (b)  The  prequalifications  and categorizations shall be
 9    submitted to the Procurement Policy Board and  published  for
10    public  comment  prior  to  their  submission  to  the  Joint
11    Committee on Administrative Rules for approval.
12        (c)  The  Director of Central Management Services and the
13    higher education chief procurement officer  shall  each  also
14    assemble  and  maintain  a comprehensive list of prequalified
15    and categorized businesses and persons.
16        (d)  Prequalification shall not be used to bar or prevent
17    any qualified business or person for bidding or responding to
18    invitations for bid or proposal.
19        Section 35-20.  Uniformity in procurement.
20        (a)  The Director of Central Management Services and  the
21    higher   education   chief  procurement  officer  shall  each
22    develop,  cause  to  be  printed,  and   distribute   uniform
23    documents for the solicitation, review, and acceptance of all
24    professional and artistic services.
25        (b)  All  chief  procurement  officers,  State purchasing
26    officers, and  their  designees  shall  use  the  appropriate
27    uniform  procedures  and forms specified in this Code for all
28    professional and artistic services.
29        (c)  These forms shall include in detail, in writing,  at
30    least:
31             (1)  a description of the goal to be achieved;
32             (2)  the services to be performed;
HB1633 Enrolled             -36-              LRB9003208DJcdA
 1             (3)  the need for the service;
 2             (4)  the qualifications that are necessary; and
 3             (5)  a plan for post-performance review.
 4        Section 35-25. Uniformity in contract.
 5        (a)  The  Director of Central Management Services and the
 6    higher  education  chief  procurement  officer   shall   each
 7    develop,   cause   to  be  printed,  and  distribute  uniform
 8    documents for the contracting of  professional  and  artistic
 9    services.
10        (b)  All  chief  procurement  officers,  State purchasing
11    officers, and  their  designees  shall  use  the  appropriate
12    uniform   contracts   and   forms   in  contracting  for  all
13    professional and artistic services.
14        (c)  These contracts and forms shall include  in  detail,
15    in writing, at least:
16             (1)  the  detail listed in subsection (c) of Section
17        35-20;
18             (2)  the duration of the contract, with  a  schedule
19        of delivery, when applicable;
20             (3)  the  method  for  charging  and  measuring cost
21        (hourly, per day, etc.);
22             (4)  the rate of remuneration; and
23             (5)  the maximum price.
24        Section 35-30.  Awards.
25        (a)  All State contracts for  professional  and  artistic
26    services,  except  as  provided  in  this  Section,  shall be
27    awarded using the competitive request  for  proposal  process
28    outlined in this Section.
29        (b)  For  each  contract  offered,  the chief procurement
30    officer, State purchasing officer, or  his  or  her  designee
31    shall   use   the  appropriate  standard  solicitation  forms
32    available from the Department of Central Management  Services
HB1633 Enrolled             -37-              LRB9003208DJcdA
 1    or the higher education chief procurement officer.
 2        (c)  Prepared  forms shall be submitted to the Department
 3    of Central Management Services or the higher education  chief
 4    procurement    officer,   whichever   is   appropriate,   for
 5    publication  in  its  Illinois   Procurement   Bulletin   and
 6    circulation to the Department of Central Management Services'
 7    or  the  higher education chief procurement officer's list of
 8    prequalified vendors.  Notice of the  offer  or  request  for
 9    proposal shall appear at least 14 days before the response to
10    the offer is due.
11        (d)  All   interested   respondents  shall  return  their
12    responses to the Department of Central Management Services or
13    the higher education chief procurement officer, whichever  is
14    appropriate,    which   shall  open  and  record  them.   The
15    Department or higher education chief procurement officer then
16    shall forward the responses, together with any information it
17    has available about the qualifications and other  State  work
18    of the respondents.
19        (e)  After   evaluation,   ranking,  and  selection,  the
20    responsible  chief  procurement  officer,  State   purchasing
21    officer,  or  his or her designee shall notify the Department
22    of Central Management Services or the higher education  chief
23    procurement   officer,   whichever  is  appropriate,  of  the
24    successful respondent and shall forward a copy of the  signed
25    contract  for  the  Department's  or  higher  education chief
26    procurement  officer's  file.   The  Department   or   higher
27    education  chief  procurement officer shall publish the names
28    of the responsible  procurement  decision-maker,  the  agency
29    letting  the  contract, the successful respondent, a contract
30    reference,  and  value  of  the  let  contract  in  the  next
31    appropriate volume of the Illinois Procurement Bulletin.
32        (f)  For all professional  and  artistic  contracts  with
33    annualized value that exceeds $25,000, evaluation and ranking
34    by  price  are  required.   Any  chief procurement officer or
HB1633 Enrolled             -38-              LRB9003208DJcdA
 1    State purchasing officer, but not their designees, may select
 2    an offeror other than the lowest bidder  by  price.   In  any
 3    case,  when  the  contract exceeds the $25,000 threshhold and
 4    the lowest bidder is  not  selected,  the  chief  procurement
 5    officer   or  the  State  purchasing  officer  shall  forward
 6    together with the contract notice of who the low  bidder  was
 7    and  a written decision as to why another was selected to the
 8    Department of  Central  Management  Services  or  the  higher
 9    education    chief    procurement   officer,   whichever   is
10    appropriate.    The  Department  or  higher  education  chief
11    procurement officer shall publish as provided  in  subsection
12    (e)  of  Section 35-30, but shall include notice of the chief
13    procurement officer's or State purchasing  officer's  written
14    decision.
15        (g)  The  Department  of  Central Management Services and
16    higher education chief procurement officer may  each  refine,
17    but  not  contradict,  this Section by promulgating rules for
18    submission to the Procurement Policy Board and  then  to  the
19    Joint  Committee  on  Administrative  Rules.   Any refinement
20    shall be based  on  the  principles  and  procedures  of  the
21    federal  Architect-Engineer  Selection Law, Public Law 92-582
22    Brooks Act, and  the  Architectural,  Engineering,  and  Land
23    Surveying  Qualifications  Based  Selection  Act; except that
24    pricing shall be an integral part of the selection process.
25        Section 35-35.  Exceptions.
26        (a)  Exceptions to Section 35-30  are  allowed  for  sole
27    source  procurements,  emergency  procurements,  and  at  the
28    discretion  of  the  chief  procurement  officer or the State
29    purchasing officer, but not their designees, for professional
30    and artistic contracts that are  nonrenewable,  one  year  or
31    less in duration, and have a value of less than $20,000.
32        (b)  All exceptions granted under this Article must still
33    be submitted to the Department of Central Management Services
HB1633 Enrolled             -39-              LRB9003208DJcdA
 1    or  the higher education chief procurement officer, whichever
 2    is appropriate, and published as provided for  in  subsection
 3    (f)  of  Section  35-30,  shall  name  the  authorizing chief
 4    procurement officer or State purchasing  officer,  and  shall
 5    include a brief explanation of the reason for the exception.
 6        Section 35-40. Subcontractors.
 7        (a)  Any  contract granted under this Article shall state
 8    whether the services of a subcontractor will  be  used.   The
 9    contract  shall  include  the  names  and  addresses  of  all
10    subcontractors  and  the  expected  amount of money each will
11    receive under the contract.
12        (b)  If at any time during the  term  of  a  contract,  a
13    contractor  adds  or  changes  any  subcontractors, he or she
14    shall promptly notify, in writing, the Department of  Central
15    Management Services or the higher education chief procurement
16    officer,  whichever is appropriate, and the responsible chief
17    procurement  officer,  State  purchasing  officer,  or  their
18    designee of the names and addresses and the  expected  amount
19    of money each new or replaced subcontractor will receive.
20                             ARTICLE 40
21            REAL PROPERTY AND CAPITAL IMPROVEMENT LEASES
22        Section   40-5.   Applicability.   All  leases  for  real
23    property  or  capital  improvements,  including  office   and
24    storage  space,  buildings,  and  other  facilities for State
25    agencies, shall be procured in accordance with the provisions
26    of this Article.
27        Section 40-10.   Authority.   State  purchasing  officers
28    shall  have the authority to procure leases for real property
29    or capital improvements.
HB1633 Enrolled             -40-              LRB9003208DJcdA
 1        Section 40-15.  Method of source selection.
 2        (a)  Request for  information.   Except  as  provided  in
 3    subsections  (b)  and  (c), all State contracts for leases of
 4    real property or capital improvements shall be awarded  by  a
 5    request  for  information  process in accordance with Section
 6    40-20.
 7        (b)  Other methods.  A request  for  information  process
 8    need not be used in procuring any of the following leases:
 9             (1)  Property of less than 10,000 square feet.
10             (2)  Rent of less than $100,000 per year.
11             (3)  Duration  of  less than one year that cannot be
12        renewed.
13             (4)  Specialized  space  available   at   only   one
14        location.
15             (5)  Renewal  or  extension  of  a  lease  in effect
16        before  July  1,  1998;  provided  that:  (i)  the  chief
17        procurement  officer  determines  in  writing  that   the
18        renewal  or  extension  is  in  the  best interest of the
19        State; (ii) the chief procurement officer submits his  or
20        her written determination and the renewal or extension to
21        the  Board; (iii) the Board does not object in writing to
22        the  renewal  or  extension  within  30  days  after  its
23        submission;  and  (iv)  the  chief  procurement   officer
24        publishes  the  renewal  or  extension in the appropriate
25        volume of the Procurement Bulletin.
26        (c)  Leases with governmental units.  Leases  with  other
27    governmental  units  may  be  negotiated  without  using  the
28    request  for  information  process  when  deemed by the chief
29    procurement officer to be in the best interest of the State.
30        Section 40-20.  Request for information.
31        (a)  Conditions for use.  Leases  shall  be  procured  by
32    request  for  information  except  as  otherwise  provided in
33    Section 40-15.
HB1633 Enrolled             -41-              LRB9003208DJcdA
 1        (b)  Form.  A request for information shall be issued and
 2    shall include:
 3             (1)  the type of property to be leased;
 4             (2)  the proposed uses of the property;
 5             (3)  the duration of the lease;
 6             (4)  the preferred location of the property; and
 7             (5)  a  general  description  of  the  configuration
 8        desired.
 9        (c)  Public notice.  Public notice  of  the  request  for
10    information  for  the  availability of real property to lease
11    shall be published in the appropriate volume of the  Illinois
12    Procurement  Bulletin  at  least  14 days before the date set
13    forth in the request for receipt of responses and shall  also
14    be  published  in  similar  manner  in a newspaper of general
15    circulation in the community or communities where  the  using
16    agency is seeking space.
17        (d)  Response.   The  request  for  information  response
18    shall  consist of written information sufficient to show that
19    the respondent can meet minimum criteria  set  forth  in  the
20    request.    State   purchasing   officers   may   enter  into
21    discussions with respondents for the  purpose  of  clarifying
22    State  needs and the information supplied by the respondents.
23    On the basis of the information supplied and discussions,  if
24    any,   a  State  purchasing  officer  shall  make  a  written
25    determination identifying the responses that meet the minimum
26    criteria  set  forth  in   the   request   for   information.
27    Negotiations   shall  be  entered  into  with  all  qualified
28    respondents for the purpose of securing a lease  that  is  in
29    the  best  interest  of  the  State.  A written report of the
30    negotiations shall be retained in the lease files  and  shall
31    include  the  reasons  for  the  final selection.  All leases
32    shall be reduced to writing and filed in accordance with  the
33    provisions of Section 20-80.
34        When  the  lowest  response by price is not selected, the
HB1633 Enrolled             -42-              LRB9003208DJcdA
 1    State  purchasing  officer  shall  forward   to   the   chief
 2    procurement  officer,  along  with  the  lease, notice of the
 3    identity of  the  lowest  respondent  by  price  and  written
 4    reasons for the selection of a different response.  The chief
 5    procurement  officer shall publish the written reasons in the
 6    next volume of the Illinois Procurement Bulletin.
 7        Section 40-25.  Length of leases.
 8        (a)  Maximum term.  Leases shall be for  a  term  not  to
 9    exceed  10  years  and  shall include a termination option in
10    favor of the State after 5 years.
11        (b)  Renewal.  Leases may include a renewal  option.   An
12    option to renew may be exercised only when a State purchasing
13    officer  determines  in  writing  that renewal is in the best
14    interest of the State and  notice  of  the  exercise  of  the
15    option   is  published  in  the  appropriate  volume  of  the
16    Procurement Bulletin at least 60 days prior to  the  exercise
17    of the option.
18        (c)  Subject  to  appropriation.  All leases shall recite
19    that they are subject to termination and cancellation in  any
20    year  for  which  the  General  Assembly  fails  to  make  an
21    appropriation to make payments under the terms of the lease.
22        Section  40-30.   Purchase option.  Initial leases of all
23    space in entire, free-standing  buildings  shall  include  an
24    option  to  purchase  exerciseable  by  the State, unless the
25    purchasing officer determines that inclusion of such purchase
26    option is not in the State's best  interest  and  makes  that
27    determination  in  writing  along with the reasons for making
28    that determination and publishes the written determination in
29    the appropriate volume of the Procurement Bulletin.    Leases
30    from  governmental  units  and  not-for-profit  entities  are
31    exempt from the requirements of this Section.
HB1633 Enrolled             -43-              LRB9003208DJcdA
 1        Section  40-35.   Rent  without  occupancy.   Except when
 2    deemed by the Board to be in the best interest of the  State,
 3    no State agency may incur rental obligations before occupying
 4    the space rented.
 5        Section 40-40.  Local site preferences.  Upon the request
 6    of the chief executive officer of a unit of local government,
 7    leasing   preferences  may  be  given  to  sites  located  in
 8    enterprise zones, tax increment districts,  or  redevelopment
 9    districts.
10                             ARTICLE 45
11                             PREFERENCES
12        Section   45-5.   Procurement  preferences.   To  promote
13    business   and   employment   opportunities   in    Illinois,
14    procurement   preferences   are   established  and  shall  be
15    applicable to any procurement made under this Code.
16        Section 45-10.  Resident bidders.
17        (a)  Amount of preference.  When  a  contract  is  to  be
18    awarded  to  the lowest responsible bidder, a resident bidder
19    shall be allowed  a  preference  as  against  a  non-resident
20    bidder  from any state that gives or requires a preference to
21    bidders from that state.  The preference shall  be  equal  to
22    the  preference  given  or  required  by  the  state  of  the
23    non-resident  bidder.   Further, if only non-resident bidders
24    are bidding, the purchasing agency is  within  its  right  to
25    specify  that  Illinois  labor and manufacturing locations be
26    used as a part of the manufacturing process,  if  applicable.
27    This   specification   may  be  negotiated  as  part  of  the
28    solicitation process.
29        (b)  Residency.  A resident bidder is a person authorized
30    to transact business in this State and  having  a  bona  fide
HB1633 Enrolled             -44-              LRB9003208DJcdA
 1    establishment  for  transacting  business  within  this State
 2    where it was actually transacting business on the  date  when
 3    any  bid  for  a  public  contract  is  first  advertised  or
 4    announced.   A resident bidder includes a foreign corporation
 5    duly authorized to transact business in this State that has a
 6    bona fide establishment for transacting business within  this
 7    State  where it was actually transacting business on the date
 8    when any bid for a public contract  is  first  advertised  or
 9    announced.
10        (c)  Federal  funds.   This Section does not apply to any
11    contract for any  project  as  to  which  federal  funds  are
12    available  for  expenditure  when  its  provisions  may be in
13    conflict with federal law or federal regulation.
14        Section  45-15.   Soybean   oil-based   ink.    Contracts
15    requiring  the procurement of printing services shall specify
16    the use of soybean oil-based ink unless  a  State  purchasing
17    officer  determines  that  another type of ink is required to
18    assure high quality and reasonable  pricing  of  the  printed
19    product.
20        Section   45-20.   Recycled  materials.   When  a  public
21    contract is to be awarded to the lowest  responsible  bidder,
22    an  otherwise  qualified bidder who will fulfill the contract
23    through the use of products made of recycled  materials  may,
24    on  a  pilot  basis  or  in accordance with a pilot study, be
25    given preference over other bidders unable to do so, provided
26    that the cost  included  in  the  bid  of  products  made  of
27    recycled materials is not more than 10% greater than the cost
28    of products not made of recycled materials.
29        Section  45-25.   Recyclable  paper.  All paper purchased
30    for use by State agencies must  be  recyclable  paper  unless
31    recyclable  paper  cannot be used to meet the requirements of
HB1633 Enrolled             -45-              LRB9003208DJcdA
 1    the State agencies.  State  agencies  shall  determine  their
 2    paper  requirements  to  allow  the  use  of recyclable paper
 3    whenever possible, including without limitation  using  plain
 4    paper rather than colored paper that is not recyclable.
 5        Section 45-30.  Correctional industries.  Notwithstanding
 6    anything  to the contrary in other law, the chief procurement
 7    officer  shall,  in  consultation  with  the  Department   of
 8    Corrections,  determine  which  articles, materials, industry
 9    related services, food stuffs, and supplies that are produced
10    or manufactured  by  persons  confined  in  institutions  and
11    facilities  of  the  Department of Corrections shall be given
12    preference by purchasing agencies procuring those items.  The
13    chief procurement officer shall develop and distribute to the
14    various   purchasing   and   using  agencies  procedures  for
15    implementing this Section.
16        Section 45-35.   Sheltered  workshops  for  the  severely
17    handicapped.
18        (a)  Qualification.    Supplies   and   services  may  be
19    procured without advertising or calling  for  bids  from  any
20    qualified  not-for-profit agency for the severely handicapped
21    that:
22             (1)  complies with Illinois laws  governing  private
23        not-for-profit organizations;
24             (2)  is  certified  as  a  sheltered workshop by the
25        Wage and Hour Division of the United States Department of
26        Labor; and
27             (3)  meets the Illinois Department of Human Services
28        just standards for rehabilitation facilities.
29        (b)  Participation.  To participate,  the  not-for-profit
30    agency  must  have  indicated  an  interest  in providing the
31    supplies and services, must meet the specifications and needs
32    of the using agency, and must set a fair market price.
HB1633 Enrolled             -46-              LRB9003208DJcdA
 1        (c)  Committee.  There is created within  the  Department
 2    of  Central Management Services a committee to facilitate the
 3    purchase of products and  services  of  persons  so  severely
 4    handicapped  by  a  physical  or  mental disability that they
 5    cannot  engage  in  normal   competitive   employment.    The
 6    committee  shall consist of the Director of the Department of
 7    Central Management Services, the Director of  the  Department
 8    of   Human  Services,  and  2  representatives  from  private
 9    business and 2 public members all appointed by  the  Governor
10    who   are   knowledgeable   in  the  needs  and  concerns  of
11    rehabilitation facilities in Illinois.   The  public  members
12    shall  serve  2  year  terms, commencing upon appointment and
13    every  2  years  thereafter.    A  public   member   may   be
14    reappointed,  and  vacancies may be filled by appointment for
15    the completion of the term.  The members shall serve  without
16    compensation  but  shall be reimbursed for expenses at a rate
17    equal to that of State employees on a per diem basis  by  the
18    Department of Central Management Services.  All members shall
19    be entitled to vote on issues before the committee.
20        The committee shall have the following powers and duties:
21             (1)  To request from any State agency information as
22        to  product  specification  and  service  requirements in
23        order to carry out its purpose.
24             (2)  To meet quarterly or more often as necessary to
25        carry out its purposes.
26             (3)  To  request  a  quarterly  report   from   each
27        participating  qualified  not-for-profit  agency  for the
28        severely handicapped describing the volume of  sales  for
29        each product or service sold under this Section.
30             (4)  To prepare a report for the Governor annually.
31             (5)  To   prepare   a  publication  that  lists  all
32        supplies  and  services  currently  available  from   any
33        qualified   not-for-profit   agency   for   the  severely
34        handicapped.   This  list  and  any  revisions  shall  be
HB1633 Enrolled             -47-              LRB9003208DJcdA
 1        distributed to all purchasing agencies.
 2             (6)  To encourage diversity in supplies and services
 3        provided by qualified  not-for-profit  agencies  for  the
 4        severely    handicapped    and   discourage   unnecessary
 5        duplication or competition among facilities.
 6             (7)  To  develop  guidelines  to  be   followed   by
 7        qualifying   agencies   for   participation   under   the
 8        provisions  of  this  Section.   The  guidelines shall be
 9        developed within 6 months after  the  effective  date  of
10        this Code and made available on a nondiscriminatory basis
11        to all qualifying agencies.
12             (8)  To   review   all   bids  submitted  under  the
13        provisions of this Section and reject  any  bid  for  any
14        purchase that is determined to be substantially more than
15        the  purchase  would  have cost had it been competitively
16        bid.
17        (d)  Former  committee.   The  committee  created   under
18    subsection  (c)  shall  replace  the  committee created under
19    Section 7-2 of  the  Illinois  Purchasing  Act,  which  shall
20    continue  to  operate until the appointments under subsection
21    (c) are made.
22        Section 45-40.  Gas mileage.
23        (a)  Specification.  Contracts for the purchase or  lease
24    of  new  passenger  automobiles,  other  than station wagons,
25    vans, four-wheel  drive  vehicles,  emergency  vehicles,  and
26    police  and fire vehicles, shall specify the procurement of a
27    model that, according  to  the  most  current  mileage  study
28    published  by  the  U.S. Environmental Protection Agency, can
29    achieve at least the minimum average fuel  economy  in  miles
30    per gallon imposed upon manufacturers of vehicles under Title
31    V of The Motor Vehicle Information and Cost Savings Act.
32        (b)  Exemptions.  The State purchasing officer may exempt
33    procurements  from  the  requirement  of  subsection (a) when
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 1    there is a demonstrated need, submitted in  writing,  for  an
 2    automobile  that  does  not  meet  the  minimum  average fuel
 3    economy  standards.   The  chief  procurement  officer  shall
 4    promulgate rules for determining  need  consistent  with  the
 5    intent of this Section.
 6        Section 45-45.  Small businesses.
 7        (a)  Set-asides.    The  chief  procurement  officer  has
 8    authority to designate as small business  set-asides  a  fair
 9    proportion of construction, supply, and service contracts for
10    award  to  small  businesses in Illinois.  Advertisements for
11    bids or offers for those contracts shall specify  designation
12    as  small  business  set-asides.   In awarding the contracts,
13    only bids or offers from qualified small businesses shall  be
14    considered.
15        (b)  Small  business.   "Small business" means a business
16    that is independently owned and  operated  and  that  is  not
17    dominant  in  its  field of operation.  The chief procurement
18    officer shall establish a detailed definition by rule,  using
19    in   addition  to  the  foregoing  criteria  other  criteria,
20    including the number of employees and the  dollar  volume  of
21    business.  When computing the size status of a bidder, annual
22    sales  and  receipts  of the bidder and all of its affiliates
23    shall be included.  The maximum number of employees  and  the
24    maximum  dollar  volume  that a small business may have under
25    the rules promulgated by the chief  procurement  officer  may
26    vary  from  industry  to  industry to the extent necessary to
27    reflect  differing  characteristics  of   those   industries,
28    subject to the following limitations:
29             (1)  No  wholesale  business  is a small business if
30        its annual sales for its most recently  completed  fiscal
31        year exceed $7,500,000.
32             (2)  No retail business or business selling services
33        is  a  small  business  if  its annual sales and receipts
HB1633 Enrolled             -49-              LRB9003208DJcdA
 1        exceed $1,500,000.
 2             (3)  No manufacturing business is a  small  business
 3        if it employs more than 250 persons.
 4             (4)  No construction business is a small business if
 5        its annual sales and receipts exceed $3,000,000.
 6        (c)  Fair proportion.  For the purpose of subsection (a),
 7    for State agencies of the executive branch, a fair proportion
 8    of  construction contracts shall be no less than 25% nor more
 9    than 40% of the annual total contracts for construction.
10        (d)  Withdrawal  of  designation.    A   small   business
11    set-aside  designation  may  be  withdrawn  by the purchasing
12    agency when deemed in the best interests of the State.   Upon
13    withdrawal,  all  bids  or  offers shall be rejected, and the
14    bidders or offerors shall  be  notified  of  the  reason  for
15    rejection.   The contract shall then be awarded in accordance
16    with this Code without  the  designation  of  small  business
17    set-aside.
18        (e)  Small  business  specialist.   The chief procurement
19    officer shall designate a State purchasing officer  who  will
20    be   responsible   for   engaging   an  experienced  contract
21    negotiator to serve as its small business  specialist,  whose
22    duties shall include:
23             (1)  Compiling   and   maintaining  a  comprehensive
24        bidders list of small businesses.  In this  duty,  he  or
25        she  shall  cooperate  with  the  Federal  Small Business
26        Administration in locating potential sources for  various
27        products and services.
28             (2)  Assisting  small  businesses  in complying with
29        the procedures for bidding on State contracts.
30             (3)  Examining requests from State agencies for  the
31        purchase  of property or services to help determine which
32        invitations to bid are to be  designated  small  business
33        set-asides.
34             (4)  Making recommendations to the chief procurement
HB1633 Enrolled             -50-              LRB9003208DJcdA
 1        officer  for  the  simplification  of  specifications and
 2        terms in order to increase the  opportunities  for  small
 3        business participation.
 4             (5)  Assisting   in   investigations  by  purchasing
 5        agencies to determine the responsibility  of  bidders  on
 6        small business set-asides.
 7        (f)  Small  business annual report.  The State purchasing
 8    officer designated under subsection (e) shall annually before
 9    December  1  report  in  writing  to  the  General   Assembly
10    concerning  the  awarding  of  contracts to small businesses.
11    The report shall include the total value of  awards  made  in
12    the  preceding  fiscal  year  under  the designation of small
13    business set-aside.
14        The requirement for reporting  to  the  General  Assembly
15    shall be satisfied by filing copies of the report as required
16    by Section 3.1 of the General Assembly Organization Act.
17        Section   45-50.   Illinois  agricultural  products.   In
18    awarding contracts requiring the procurement of  agricultural
19    products,  preference  may be given to an otherwise qualified
20    bidder or offeror who will fulfill the contract  through  the
21    use of agricultural products grown in Illinois.
22        Section   45-55.    Corn-based   plastics.   In  awarding
23    contracts requiring  the  procurement  of  plastic  products,
24    preference  may  be given to an otherwise qualified bidder or
25    offeror who will fulfill the  contract  through  the  use  of
26    plastic products made from Illinois corn by-products.
27        Section   45-60.    Vehicles   powered   by  agricultural
28    commodity-based fuel.  In awarding  contracts  requiring  the
29    procurement  of  vehicles,  preference  may  be  given  to an
30    otherwise qualified bidder or offeror who  will  fulfill  the
31    contract  through  the  use  of  vehicles  powered by ethanol
HB1633 Enrolled             -51-              LRB9003208DJcdA
 1    produced from Illinois corn or biodiesel fuels produced  from
 2    Illinois soybeans.
 3        Section  45-65.   Additional  preferences.   This Code is
 4    subject to applicable provisions of:
 5             (1)  the Public Purchases in Other States Act;
 6             (2)  the Illinois Mined Coal Act;
 7             (3)  the Steel Products Procurement Act;
 8             (4)  the Veterans Preference Act; and
 9             (5)  the   Business   Enterprise   for   Minorities,
10        Females, and Persons with Disabilities Act.
11                             ARTICLE 50
12                  PROCUREMENT ETHICS AND DISCLOSURE
13        Section 50-1.  Purpose.  It is the express  duty  of  all
14    chief  procurement  officers,  State purchasing officers, and
15    their designees to maximize the value of the  expenditure  of
16    public moneys in procuring goods, services, and contracts for
17    the  State  of Illinois and to act in a manner that maintains
18    the integrity and  public  trust  of  State  government.   In
19    discharging  this duty, they are charged to use all available
20    information, reasonable efforts, and  reasonable  actions  to
21    protect,  safeguard,  and maintain the procurement process of
22    the State of Illinois.
23        Section 50-5.  Bribery.
24        (a)  Prohibition.  No person or business shall be awarded
25    a contract or subcontract under this Code who:
26             (1)  has been convicted under the laws  of  Illinois
27        or  any other state of bribery  or attempting to bribe an
28        officer or employee of the State of Illinois or any other
29        state in that officer's or employee's official  capacity;
30        or
HB1633 Enrolled             -52-              LRB9003208DJcdA
 1             (2)  has  made an admission of guilt of that conduct
 2        that is a matter of record but has  not  been  prosecuted
 3        for that conduct.
 4        (b)  Businesses.    No  business  shall  be  barred  from
 5    contracting with any unit of State or local government  as  a
 6    result  of a conviction under this Section of any employee or
 7    agent of the business if the employee or agent is  no  longer
 8    employed by the business and:
 9             (1)  the  business  has been finally adjudicated not
10        guilty; or
11             (2)  the business demonstrates to  the  governmental
12        entity  with  which it seeks to contract, and that entity
13        finds  that  the  commission  of  the  offense  was   not
14        authorized,  requested,  commanded,  or  performed  by  a
15        director,  officer, or high managerial agent on behalf of
16        the business as provided in paragraph (2)  of  subsection
17        (a) of Section 5-4 of the Criminal Code of 1961.
18        (c)  Conduct on behalf of business.  For purposes of this
19    Section,  when  an official, agent, or employee of a business
20    committed the bribery or attempted bribery on behalf  of  the
21    business   and   in   accordance   with   the   direction  or
22    authorization of a responsible official of the business,  the
23    business shall be chargeable with the conduct.
24        (d)  Certification.   Every bid submitted to and contract
25    executed by the State shall contain a  certification  by  the
26    contractor  that  the  contractor  is  not  barred from being
27    awarded a contract or  subcontract  under  this  Section.   A
28    contractor  who  makes  a  false  statement,  material to the
29    certification, commits a Class 3 felony.
30        Section 50-10.  Felons.  Unless  otherwise  provided,  no
31    person  or  business  convicted of a felony shall do business
32    with the State of Illinois or any State agency from the  date
33    of  conviction until 5 years after the date  of completion of
HB1633 Enrolled             -53-              LRB9003208DJcdA
 1    the  sentence  for  that  felony,  unless  no   person   held
 2    responsible  by  a  prosecutorial  office  for the facts upon
 3    which  the  conviction  was  based  continues  to  have   any
 4    involvement with the business.
 5        Section 50-13.  Conflicts of interest.
 6        (a)  Prohibition.   It is unlawful for any person holding
 7    an elective office in this  State,  holding  a  seat  in  the
 8    General  Assembly,  or appointed to or employed in any of the
 9    offices or agencies of  State  government  and  who  receives
10    compensation  for  such  employment  in  excess of 60% of the
11    salary of the Governor of the State of Illinois, or who is an
12    officer or employee of the Capital Development Board  or  the
13    Illinois  Toll  Highway  Authority,  or  who is the spouse or
14    minor child of  any  such  person  to  have  or  acquire  any
15    contract,  or  any  direct pecuniary interest in any contract
16    therein, whether for  stationery,  printing,  paper,  or  any
17    services,  materials,  or  supplies,  that  will be wholly or
18    partially satisfied by the payment of funds  appropriated  by
19    the  General  Assembly  of  the  State  of Illinois or in any
20    contract of the Capital Development  Board  or  the  Illinois
21    Toll Highway Authority.
22        (b)  Interests.    It   is   unlawful   for   any   firm,
23    partnership, association, or corporation, in which any person
24    listed in subsection (a) is entitled to receive (i) more than
25    7 1/2% of the total distributable income or (ii) an amount in
26    excess  of the salary of the Governor, to have or acquire any
27    such contract or direct pecuniary interest therein.
28        (c)  Combined interests.  It is unlawful  for  any  firm,
29    partnership, association, or corporation, in which any person
30    listed  in  subsection (a) together with his or her spouse or
31    minor children is entitled to receive (i) more than  15%,  in
32    the  aggregate,  of the total distributable income or (ii) an
33    amount in excess of 2 times the salary of  the  Governor,  to
HB1633 Enrolled             -54-              LRB9003208DJcdA
 1    have  or  acquire  any  such  contract  or  direct  pecuniary
 2    interest therein.
 3        (d)  Securities.  Nothing in this Section invalidates the
 4    provisions  of  any bond or other security previously offered
 5    or to be offered for sale or sold by  or  for  the  State  of
 6    Illinois.
 7        (e)  Prior  interests.   This Section does not affect the
 8    validity of any  contract  made  between  the  State  and  an
 9    officer  or  employee  of  the State or member of the General
10    Assembly, his or her spouse, minor child or  any  combination
11    of those persons if that contract was in existence before his
12    or  her  election  or  employment  as  an officer, member, or
13    employee.  The contract is voidable, however, if it cannot be
14    completed within 365  days  after  the  officer,  member,  or
15    employee takes office or is employed.
16        (f)  Exceptions.
17             (1)  Public  aid  payments.   This  Section does not
18        apply to payments made for a public aid recipient.
19             (2)  Teaching.  This Section does  not  apply  to  a
20        contract  for  personal  services  as a teacher or school
21        administrator between a member of the General Assembly or
22        his or her spouse, or a State officer or employee or  his
23        or  her spouse, and any school district, public community
24        college district, the University  of  Illinois,  Southern
25        Illinois  University,  Illinois State University, Eastern
26        Illinois  University,   Northern   Illinois   University,
27        Western  Illinois  University,  Chicago State University,
28        Governor  State  University,  or  Northeastern   Illinois
29        University.
30             (3)  Ministerial  duties.   This  Section  does  not
31        apply  to  a  contract  for personal services of a wholly
32        ministerial  character,  including  but  not  limited  to
33        services as a laborer, clerk, typist, stenographer, page,
34        bookkeeper,  receptionist,   or   telephone   switchboard
HB1633 Enrolled             -55-              LRB9003208DJcdA
 1        operator,  made by a spouse or minor child of an elective
 2        or appointive State officer or employee or of a member of
 3        the General Assembly.
 4             (4)  Child and family services.  This  Section  does
 5        not  apply  to  payments  made to a member of the General
 6        Assembly, a State officer or employee, his or her  spouse
 7        or  minor  child  acting  as  a foster parent, homemaker,
 8        advocate, or volunteer for or in behalf  of  a  child  or
 9        family  served  by  the Department of Children and Family
10        Services.
11             (5)  Licensed professionals. Contracts with licensed
12        professionals, provided they  are  competitively  bid  or
13        part  of  a reimbursement program for specific, customary
14        goods and services through the Department of Children and
15        Family Services, the Department of  Human  Services,  the
16        Department  of  Public  Aid,  the  Department  of  Public
17        Health, or the Department on Aging.
18        (g)  Penalty.  A  person convicted of a violation of this
19    Section is guilty of a business offense and  shall  be  fined
20    not less than $1,000 nor more than $5,000.
21        Section 50-15.  Negotiations.
22        (a)  It  is  unlawful  for any person employed in or on a
23    continual contractual relationship with any of the offices or
24    agencies of  State  government  to  participate  in  contract
25    negotiations  on  behalf  of  that  office or agency with any
26    firm, partnership, association, or corporation with whom that
27    person has a contract for future employment or is negotiating
28    concerning possible future employment.
29        (b)  Any person convicted of a violation of this  Section
30    is  guilty  of a business offense and shall be fined not less
31    than $1,000 nor more than $5,000.
32        Section 50-20.  Exemptions.  With  the  approval  of  the
HB1633 Enrolled             -56-              LRB9003208DJcdA
 1    appropriate chief procurement officer involved, the Governor,
 2    or  an  executive  ethics  board  or  commission  he  or  she
 3    designates,   may   exempt   named   individuals   from   the
 4    prohibitions  of  Section  50-13  when,  in  his, her, or its
 5    judgment, the public interest in having the individual in the
 6    service of the State outweighs the public policy evidenced in
 7    that Section.  An exemption is  effective  only  when  it  is
 8    filed  with  the  Secretary  of State and the Comptroller and
 9    includes a statement setting forth the name of the individual
10    and all the pertinent facts  that  would  make  that  Section
11    applicable,  setting  forth the reason for the exemption, and
12    declaring the individual exempted from that Section.   Notice
13    of   each  exemption  shall  be  published  in  the  Illinois
14    Procurement Bulletin.
15        Section 50-25.  Inducement.  Any  person  who  offers  or
16    pays  any  money  or  other  valuable  thing to any person to
17    induce him or her not to bid  for  a  State  contract  or  as
18    recompense  for  not having bid on a State contract is guilty
19    of a Class 4 felony. Any person  who  accepts  any  money  or
20    other  valuable thing for not bidding for a State contract or
21    who withholds a bid in consideration of the promise  for  the
22    payment of money or other valuable thing is guilty of a Class
23    4 felony.
24        Section   50-30.  Revolving   door   prohibition.   Chief
25    procurement  officers,  associate procurement officers, State
26    purchasing officers, their designees whose  principal  duties
27    are  directly  related  to  State  procurement, and executive
28    officers confirmed by the Senate are expressly prohibited for
29    a period of 2 years after terminating  an  affected  position
30    from  engaging  in  any  procurement activity relating to the
31    State agency most recently  employing  them  in  an  affected
32    position  for a period of at least 6 months.  The prohibition
HB1633 Enrolled             -57-              LRB9003208DJcdA
 1    includes but is not  limited  to:  lobbying  the  procurement
 2    process;  specifying;  bidding;  proposing  bid, proposal, or
 3    contract documents; on their own behalf or on behalf  of  any
 4    firm,  partnership, association, or corporation. This Section
 5    applies only to persons who terminate an affected position on
 6    or after January 15, 1999.
 7        Section 50-35.  Disclosure  and  potential  conflicts  of
 8    interest.
 9        (a)  All  offers from responsive bidders or offerors with
10    an annual value of more than $10,000 shall be accompanied  by
11    disclosure  of  the  financial  interests  of the contractor,
12    bidder,  or  proposer.  The  financial  disclosure  of   each
13    successful  bidder  or  offeror  shall  become  part  of  the
14    publicly available contract or procurement file maintained by
15    the appropriate chief procurement officer.
16        (b)  Disclosure  by  the  responsive  bidders or offerors
17    shall include any ownership or distributive income share that
18    is in excess of 5%, or an amount  greater  than  60%  of  the
19    annual  salary  of the Governor, of the bidding entity or its
20    parent entity, whichever is less, unless  the  contractor  or
21    bidder  is  a  publicly  traded entity subject to Federal 10K
22    reporting, in which case it may submit its 10K disclosure  in
23    place  of  the prescribed disclosure.  The form of disclosure
24    shall be  prescribed  by  the  applicable  chief  procurement
25    officer  and  must include at least the names, addresses, and
26    dollar or proportionate share of  ownership  of  each  person
27    identified  in this Section, their instrument of ownership or
28    beneficial relationship, and notice of any potential conflict
29    of  interest  resulting  from  the   current   ownership   or
30    beneficial  relationship  of  each  person identified in this
31    Section   having   in   addition   any   of   the   following
32    relationships:
33             (1)  State employment, currently or in the  previous
HB1633 Enrolled             -58-              LRB9003208DJcdA
 1        3 years, including contractual employment of services.
 2             (2)  State  employment  of  spouse,  father, mother,
 3        son, or daughter, including  contractual  employment  for
 4        services in the previous 2 years.
 5             (3)  Elective status; the holding of elective office
 6        of  the  State  of Illinois, the government of the United
 7        States, any unit of local government  authorized  by  the
 8        Constitution  of the State of Illinois or the statutes of
 9        the State of Illinois currently  or  in  the  previous  3
10        years.
11             (4)  Relationship  to anyone holding elective office
12        currently or in the previous  2  years;  spouse,  father,
13        mother, son, or daughter.
14             (5)  Appointive   office;   the   holding   of   any
15        appointive  government  office  of the State of Illinois,
16        the United States  of  America,  or  any  unit  of  local
17        government authorized by the Constitution of the State of
18        Illinois  or the statutes of the State of Illinois, which
19        office entitles the holder to compensation in  excess  of
20        expenses   incurred  in  the  discharge  of  that  office
21        currently or in the previous 3 years.
22             (6)  Relationship  to  anyone   holding   appointive
23        office  currently  or  in  the  previous 2 years; spouse,
24        father, mother, son, or daughter.
25             (7)  Employment, currently  or  in  the  previous  3
26        years,  as  or  by  any  registered lobbyist of the State
27        government.
28             (8)  Relationship  to  anyone  who  is  or   was   a
29        registered  lobbyist  in  the  previous  2 years; spouse,
30        father, mother, son, or daughter.
31             (9)  Compensated employment,  currently  or  in  the
32        previous   3   years,   by  any  registered  election  or
33        re-election committee registered with  the  Secretary  of
34        State  or  any  county clerk in the State of Illinois, or
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 1        any political action committee registered with either the
 2        Secretary of State or the Federal Board of Elections.
 3             (10)  Relationship  to   anyone;   spouse,   father,
 4        mother,  son,  or  daughter;  who is or was a compensated
 5        employee in the last 2 years of any  registered  election
 6        or re-election committee registered with the Secretary of
 7        State  or  any  county clerk in the State of Illinois, or
 8        any political action committee registered with either the
 9        Secretary of State or the Federal Board of Elections.
10        (c)  The disclosure in subsection (b) is not intended  to
11    prohibit or prevent any contract.  The disclosure is meant to
12    fully  and  publicly  disclose  any potential conflict to the
13    chief procurement officers, State purchasing officers,  their
14    designees,  and  executive  officers  so  they may adequately
15    discharge their duty to protect the State.
16        (d)  In the case of any contract for personal services in
17    excess of $50,000; any contract competitively bid  in  excess
18    of  $250,000; any other contract in excess of $50,000; when a
19    potential  for  a  conflict  of   interest   is   identified,
20    discovered,  or reasonably suspected it shall be reviewed and
21    commented on in writing by  the  Governor  of  the  State  of
22    Illinois, or by an executive ethics board or commission he or
23    she  might  designate.   The comment shall be returned to the
24    responsible  chief  procurement  officer  who  must  rule  in
25    writing whether to void or allow the contract, bid, offer, or
26    proposal weighing the best interest of the State of Illinois.
27    The  comment  and  determination  shall  become  a   publicly
28    available part of the contract, bid, or proposal file.
29        (e)  These  threshholds and disclosure do not relieve the
30    chief procurement officer, the State purchasing  officer,  or
31    their  designees  from  reasonable care and diligence for any
32    contract, bid, offer, or  proposal.   The  chief  procurement
33    officer,  the  State  purchasing  officer, or their designees
34    shall be responsible  for  using  any  reasonably  known  and
HB1633 Enrolled             -60-              LRB9003208DJcdA
 1    publicly  available  information  to discover any undisclosed
 2    potential conflict of interest and act to  protect  the  best
 3    interest of the State of Illinois.
 4        (f)  Inadvertent  or accidental failure to fully disclose
 5    shall render the contract,  bid,  proposal,  or  relationship
 6    voidable  by the chief procurement officer if he or she deems
 7    it in the best interest of the State of Illinois and, at  his
 8    or  her  discretion,  may  be  cause  for barring from future
 9    contracts, bids, proposals, or relationships with  the  State
10    for a period of up to 2 years.
11        (g)  Intentional,   willful,   or   material  failure  to
12    disclose  shall  render  the  contract,  bid,  proposal,   or
13    relationship  voidable by the chief procurement officer if he
14    or she deems it in the best interest of the State of Illinois
15    and shall result in debarment from  future  contracts,  bids,
16    proposals,  or  relationships for a period of not less than 2
17    years and not more than  10  years.   Reinstatement  after  2
18    years  and  before 10 years must be reviewed and commented on
19    in writing by the Governor of the State of Illinois, or by an
20    executive  ethics  board  or  commission  he  or  she   might
21    designate.   The comment shall be returned to the responsible
22    chief procurement officer who must rule  in  writing  whether
23    and when to reinstate.
24        (h)  In  addition,  all  disclosures shall note any other
25    current or pending contracts,  proposals,  leases,  or  other
26    ongoing  procurement relationships the bidding, proposing, or
27    offering entity has with any other unit of  State  government
28    and  shall  clearly  identify  the  unit  and  the  contract,
29    proposal, lease, or other relationship.
30        Section   50-40.   Reporting  anticompetitive  practices.
31    When, for any reason, any vendor, bidder,  contractor,  chief
32    procurement  officer,  State  purchasing  officer,  designee,
33    elected  official,  or  State  employee suspects collusion or
HB1633 Enrolled             -61-              LRB9003208DJcdA
 1    other anticompetitive practice among any  bidders,  offerors,
 2    contractors,  proposers,  or employees of the State, a notice
 3    of the relevant facts shall be transmitted  to  the  Attorney
 4    General and the chief procurement officer.
 5        Section  50-45.   Confidentiality.  Any chief procurement
 6    officer, State purchasing  officer,  designee,  or  executive
 7    officer   who   willfully   uses   or   allows   the  use  of
 8    specifications,  competitive   bid   documents,   proprietary
 9    competitive  information,  proposals, contracts, or selection
10    information to compromise the fairness or  integrity  of  the
11    procurement, bidding, or contract process shall be subject to
12    immediate  dismissal,  regardless  of the Personnel Code, any
13    contract, or any collective bargaining agreement, and may  in
14    addition be subject to criminal prosecution.
15        Section  50-50.  Insider information.  It is unlawful for
16    any current or former elected or appointed State official  or
17    State  employee  to  knowingly  use  confidential information
18    available only by virtue of that  office  or  employment  for
19    actual or anticipated gain for themselves or another person.
20        Section  50-55.   Supply  inventory.   Every State agency
21    shall inventory or stock no more  than  a  12-month  need  of
22    equipment,  supplies, commodities, articles, and other items,
23    except  as  otherwise  authorized  by  the   State   agency's
24    regulations.   Every  State  agency shall periodically review
25    its inventory to ensure compliance with  this  Section.   If,
26    upon review, an agency determines it has more than a 12-month
27    supply  of  any  equipment,  supplies,  commodities, or other
28    items,  the  agency  shall   undertake   transfers   of   the
29    oversupplied  items  or  other  action  necessary to maintain
30    compliance with this Section.  This Section shall  not  apply
31    to  lifesaving medications, mechanical spare parts, and items
HB1633 Enrolled             -62-              LRB9003208DJcdA
 1    for which the supplier requires a minimum order stipulation.
 2        Section 50-60.  Voidable contracts.  If any  contract  is
 3    entered  into  or purchase or expenditure of funds is made in
 4    violation of this Code or any other law, the contract may  be
 5    declared  void  by  the  chief  procurement officer or may be
 6    ratified and affirmed, provided the chief procurement officer
 7    determines that ratification is in the best interests of  the
 8    State.  If the contract is ratified and affirmed, it shall be
 9    without  prejudice  to  the State's rights to any appropriate
10    damages.
11        Section 50-65.  Contractor  suspension.   Any  contractor
12    may be suspended for violation of this Code or for failure to
13    conform  to  specifications or terms of delivery.  Suspension
14    shall be for cause and may be for a period of up to  5  years
15    at   the  discretion  of  the  applicable  chief  procurement
16    officer. Contractors may be debarred in accordance with rules
17    promulgated by the chief procurement officer or as  otherwise
18    provided by law.
19        Section  50-70.   Additional  provisions.   This  Code is
20    subject to applicable provisions of the following Acts:
21             (1)  Article 33E of the Criminal Code of 1961;
22             (2)  the Illinois Human Rights Act;
23             (3)  the Discriminatory Club Act;
24             (4)  the Illinois Governmental Ethics Act;
25             (5)  the State Prompt Payment Act;
26             (6)  the Public Officer Prohibited  Activities  Act;
27        and
28             (7)  the Drug Free Workplace Act.
29        Section 50-75.  Other violations.
30        (a)  Any  chief  procurement  officer,  State  purchasing
HB1633 Enrolled             -63-              LRB9003208DJcdA
 1    officer,  or  designee  who  willfully violates or allows the
 2    violation  of  this  Code  shall  be  subject  to   immediate
 3    dismissal, regardless of the Personnel Code, any contract, or
 4    any collective bargaining agreement.
 5        (b)  Except  as  otherwise provided in this Code, whoever
 6    violates this Code or  the  rules  promulgated  under  it  is
 7    guilty of a Class A misdemeanor.
 8                             ARTICLE 53
 9                             CONCESSIONS
10        Section 53-10.  Concessions and leases of State property.
11        (a)  Except  for  property  under  the  jurisdiction of a
12    public  institution   of   higher   education,   concessions,
13    including  the  assignment,  license,  sale,  or  transfer of
14    interests in or rights to discoveries,  inventions,  patents,
15    or  copyrightable  works,  may  be  entered into by the State
16    agency with jurisdiction over the property, whether  tangible
17    or intangible.
18        (b)  Except  for  property  under  the  jurisdiction of a
19    public institution of higher education, all concessions shall
20    be  reduced  to  writing  and  shall  be  awarded  under  the
21    provisions of Article 20, except that the contract  shall  be
22    awarded to the highest and best bidder or offeror.
23        Section  53-20.  Contract duration and terms.  Except for
24    property under the jurisdiction of a  public  institution  of
25    higher  education,  the duration and terms of concessions and
26    leases of State property shall be  in  accordance  with  this
27    Code or other applicable law.
28        Section  53-25.  Public institutions of higher education.
29    Each public institution of higher education  may  enter  into
30    concessions,  including  the  assignment,  license,  sale, or
HB1633 Enrolled             -64-              LRB9003208DJcdA
 1    transfer  of  interests  in   or   rights   to   discoveries,
 2    inventions,  patents,  or  copyrightable works, for property,
 3    whether  tangible  or   intangible,   over   which   it   has
 4    jurisdiction.   Concessions  shall be reduced  to writing and
 5    shall be awarded at the discretion of  the  institution  with
 6    jurisdiction  over  the  property.  The duration and terms of
 7    concessions and leases shall be  at  the  discretion  of  the
 8    institution  with  jurisdiction over the property.  Notice of
 9    the award of a concession shall be published  in  the  higher
10    education volume of the Illinois Procurement Bulletin.
11                             ARTICLE 55
12                      MISCELLANEOUS PROVISIONS
13        Section  55-5.  References to repealed provisions.  After
14    the effective  date  of  this  Act,  all  references  to  the
15    provisions  of  law repealed by this Act  shall be construed,
16    where  necessary  and  appropriate,  as  references  to   the
17    Illinois Procurement Code.
18        Section  55-10.   Exclusive  exercise  of powers.  On and
19    after 120 days following the effective date of this Act,  the
20    powers granted under this Code shall be exercised exclusively
21    as   granted  under  this  Code,  and  no  State  agency  may
22    concurrently exercise any  such  power,  unless  specifically
23    authorized  otherwise  by  a later enacted law.  This Code is
24    not intended to impair any contract entered into  before  the
25    effective date of this Act.
26        Section  55-15.   Severability.  If any provision of this
27    Code or any application of it to any person  or  circumstance
28    is  held  invalid,  that  invalidity  shall  not affect other
29    provisions or applications of this Code  that  can  be  given
30    effect  without  the invalid provision or application, and to
HB1633 Enrolled             -65-              LRB9003208DJcdA
 1    this end the provisions of  this  Code  are  declared  to  be
 2    severable.
 3                             ARTICLE 95
 4                 AMENDATORY AND REPEALING PROVISIONS
 5        Section  95-5.   The Governmental Joint Purchasing Act is
 6    amended by changing Section 3 as follows:
 7        (30 ILCS 525/3) (from Ch. 85, par. 1603)
 8        Sec. 3.  Any agreement of the  governmental  units  which
 9    desire to make joint purchases, one of the governmental units
10    shall  conduct  the  letting  of  bids.  Where  the  State of
11    Illinois is a party to  the  joint  purchase  agreement,  the
12    Department  of  Central Management Services shall conduct the
13    letting of bids. Expenses of such bid-letting may  be  shared
14    by  the participating governmental units in proportion to the
15    amount of personal property, supplies or services  each  unit
16    purchases.
17        When  the  State  of  Illinois  is  a  party to the joint
18    purchase agreement,  the  acceptance  of  bids  shall  be  in
19    accordance  with  the  Illinois  Procurement  Code  and rules
20    promulgated under that Code.  When the State of  Illinois  is
21    not  a  party to the joint purchase agreement, the acceptance
22    of bids shall be governed by the agreement.
23        The personal  property,  supplies  or  services  involved
24    shall   be   distributed   or   rendered   directly  to  each
25    governmental unit taking part in  the  purchase.  The  person
26    selling  the personal property, supplies or services may bill
27    each governmental unit separately for its proportionate share
28    of the cost of the personal property,  supplies  or  services
29    purchased.
30        The  credit  or liability of each governmental unit shall
31    remain separate and distinct. Disputes  between  bidders  and
HB1633 Enrolled             -66-              LRB9003208DJcdA
 1    governmental  units  shall  be resolved between the immediate
 2    parties.
 3    (Source: P.A. 87-860.)
 4        (15 ILCS 405/11 rep.)
 5        (15 ILCS 405/15 rep.)
 6        Section 95-10.  The State Comptroller Act is  amended  by
 7    repealing Sections 11 and 15.
 8        (20 ILCS 5/29 rep.)
 9        (20 ILCS 5/30 rep.)
10        (20 ILCS 405/35.7b rep.)
11        (20 ILCS 405/67.01 rep.)
12        (20 ILCS 405/67.04 rep.)
13        Section 95-15.  The Civil Administrative Code of Illinois
14    is  amended  by  repealing Sections 29, 30, 35.7b, 67.01, and
15    67.04.
16        Section 95-17.  The Personnel Code is amended  by  adding
17    Section 25 as follows:
18        (20 ILCS 415/25 new)
19        Sec.  25.   Illinois  Procurement  Code.   This  Code  is
20    subject  to  the  disciplinary  and penalty provisions of the
21    Illinois Procurement Code.
22        (20 ILCS 1015/13 rep.)
23        Section 95-20.   The  Public  Employment  Office  Act  is
24    amended by repealing Section 13.
25        Section  95-22.   The  General Assembly Operations Act is
26    amended by adding Section 10 as follows:
27        (25 ILCS 10/10 new)
HB1633 Enrolled             -67-              LRB9003208DJcdA
 1        Sec. 10.  General Assembly printing; session laws.
 2        (a)  Authority.  Public printing for the  use  of  either
 3    House  of  the  General  Assembly  shall  be  subject  to its
 4    control.
 5        (b)  Time of delivery.  Daily  calendars,  journals,  and
 6    other  similar  printing  for  which  manuscript  or  copy is
 7    delivered to the Legislative Printing Unit  by  the  clerical
 8    officer  of  either  House  shall  be printed so as to permit
 9    delivery at any reasonable  time  required  by  the  clerical
10    officer.   Any  petition, bill, resolution, joint resolution,
11    memorial, and similar manuscript or  copy  delivered  to  the
12    Legislative  Printing  Unit by the clerical officer of either
13    House shall be printed at any  reasonable  time  required  by
14    that officer.
15        (c)  Style.    The   manner,   form,   style,  size,  and
16    arrangement of type used in printing the bills,  resolutions,
17    amendments, conference reports, and journals, including daily
18    journals, of the General Assembly shall be as provided in the
19    Rules of the General Assembly.
20        (d)  Daily   journal.    The   Clerk   of  the  House  of
21    Representatives and the Secretary of the  Senate  shall  each
22    prepare   and  deliver  to  the  Legislative  Printing  Unit,
23    immediately  after  the  close  of  each  daily  session,   a
24    printer's  copy  of  the  daily  journal for their respective
25    House.
26        (e)  Daily and bound journals.
27             (1)  Subscriptions.  The Legislative  Printing  Unit
28        shall  have  printed  the  number  of copies of the daily
29        journal as may be requested by the  clerical  officer  of
30        each House.  The Secretary of the Senate and the Clerk of
31        the House of Representatives shall furnish a copy of each
32        daily  journal of their respective House to those persons
33        who  apply  therefor  upon  payment   of   a   reasonable
34        subscription  fee established separately by the Secretary
HB1633 Enrolled             -68-              LRB9003208DJcdA
 1        of the Senate and  the  Clerk  of  the  House  for  their
 2        respective  House.   Each subscriber shall specify at the
 3        time he or she subscribes the address  where  he  or  she
 4        wishes  the journals mailed.  The daily journals shall be
 5        furnished free of charge  on  a  pickup  basis  to  State
 6        offices  and  to  the public as long as the supply lasts.
 7        The Secretary of the Senate and the Clerk  of  the  House
 8        shall  determine  the  number  of  journals available for
 9        pickup at their respective offices.
10             (2)  Other  copies.   After  the  General   Assembly
11        adjourns, the Clerk of the House and the Secretary of the
12        Senate  shall  prepare  and  deliver  to  the Legislative
13        Printing Unit a printer's copy of matter for the  regular
14        House  and Senate journals, together with any matter, not
15        previously  printed  in  the  daily  journals,  that   is
16        required  by  law,  by order of either House, or by joint
17        resolution  to  be  printed   in   the   journals.    The
18        Legislative  Printing  Unit shall have printed the number
19        of copies of the bound journal as may be requested by the
20        clerical officer of each House.  A reasonable  number  of
21        bound volumes of the journal of each House of the General
22        Assembly  shall  be provided to State and local officers,
23        boards, commissions, institutions, departments, agencies,
24        and libraries requesting them through canvasses conducted
25        separately by the Secretary of the Senate and  the  Clerk
26        of  the House.  Reasonable fees established separately by
27        the Secretary of the Senate and the Clerk  of  the  House
28        may  be  charged for bound volumes of the journal of each
29        House of the General Assembly.
30        (f)  Session laws. Immediately after the General Assembly
31    adjourns, the Secretary of State shall  prepare  a  printer's
32    copy  for the "Session Laws of Illinois" that shall set forth
33    in full all Acts and joint resolutions passed by the  General
34    Assembly  at  the  session  just  concluded and all executive
HB1633 Enrolled             -69-              LRB9003208DJcdA
 1    orders of the Governor taking effect under Article V, Section
 2    11 of  the  Constitution  and  the  Executive  Reorganization
 3    Implementation  Act.   The  printer's copy shall be furnished
 4    and delivered to the Secretary of State by the Enrolling  and
 5    Engrossing  Department  of  the  2  Houses.    At the time an
 6    enrolled law is filed with the Secretary  of  State,  whether
 7    before or after the conclusion of the session in which it was
 8    passed,  it  shall be assigned a Public Act number, the first
 9    part of which shall be the number  of  the  General  Assembly
10    followed  by  a  dash  and then a number showing the order in
11    which that law was filed with the Secretary of State.     The
12    title  page  of each volume of the session laws shall contain
13    the following:  "Printed by  the  authority  of  the  General
14    Assembly  of  the  State  of  Illinois".   The  laws shall be
15    arranged by  the  Secretary  of  State  and  printed  in  the
16    chronological  order  of  Public  Act numbers.  At the end of
17    each Act the dates when the Act was  passed  by  the  General
18    Assembly  and when the Act was approved by the Governor shall
19    be stated.  Any Act becoming law without the approval of  the
20    Governor  shall  be  marked at its end in the session laws by
21    the printed certificate of the Secretary of State.  Executive
22    orders taking effect under  Article  V,  Section  11  of  the
23    Constitution  and the Executive Reorganization Implementation
24    Act shall be printed  in  chronological  order  of  executive
25    order  number  and  shall  state at the end of each executive
26    order the date it was transmitted to the General Assembly and
27    the date it takes effect.   In the case of an amendatory Act,
28    the changes made by the amendatory Act shall be indicated  in
29    the session laws in the following manner:  (i) all new matter
30    shall  be  underscored;  and  (ii)  all matter deleted by the
31    amendatory Act shall  be  shown  crossed  with  a  line.  The
32    Secretary  of  State  shall  prepare  and  furnish a table of
33    contents and an index to each volume of the session laws.
34        (g)  Distribution.  The bound volumes of the session laws
HB1633 Enrolled             -70-              LRB9003208DJcdA
 1    of the General  Assembly  shall  be  made  available  to  the
 2    following:
 3             (1)  one  copy of each to each State officer, board,
 4        commission, institution, and department requesting a copy
 5        in accordance with a canvass conducted by  the  Secretary
 6        of  State  before the printing of the session laws except
 7        judges of the appellate courts and judges  and  associate
 8        judges of the circuit courts;
 9             (2)  10  copies  to  the  law library of the Supreme
10        Court;  one  copy  each  to  the  law  libraries  of  the
11        appellate courts; and one copy to each of the county  law
12        libraries  or,  in  those  counties  without  county  law
13        libraries, one copy to the clerk of the circuit court;
14             (3)  one copy of each to each county clerk;
15             (4)  10  copies  of  each  to  the  library  of  the
16        University of Illinois;
17             (5)  3  copies  of  each  to  the  libraries  of the
18        University of  Illinois  at  Chicago,  Southern  Illinois
19        University at Carbondale, Southern Illinois University at
20        Edwardsville,   Northern   Illinois  University,  Western
21        Illinois   University,   Eastern   Illinois   University,
22        Illinois  State  University,  Chicago  State  University,
23        Northeastern Illinois University, Chicago Kent College of
24        Law, DePaul University, John Marshall Law School,  Loyola
25        University,     Northwestern     University,    Roosevelt
26        University, and the University of Chicago;
27             (6)  a number  of  copies  sufficient  for  exchange
28        purposes  to  the  Legislative  Reference  Bureau and the
29        University of Illinois College of Law Library;
30             (7)  a  number  of  copies  sufficient  for   public
31        libraries in the State to the State Library; and
32             (8)  the    remainder    shall   be   retained   for
33        distribution as the interests of the State may require to
34        persons making application in writing or  in  person  for
HB1633 Enrolled             -71-              LRB9003208DJcdA
 1        the publication.
 2        (h)  Messages   and  reports.   The  following  shall  be
 3    printed in a quantity not to exceed  the  maximum  stated  in
 4    this subsection and bound and distributed at public expense:
 5             (1)  messages   to   the  General  Assembly  by  the
 6        Governor, 10,000 copies;
 7             (2)  the biennial report of the Lieutenant Governor,
 8        1,000 copies;
 9             (3)  the biennial report of the Secretary of  State,
10        3,000 copies;
11             (4)  the  biennial  report of the State Comptroller,
12        5,000 copies;
13             (5)  the biennial report  of  the  State  Treasurer,
14        3,000 copies;
15             (6)  the   annual  report  of  the  State  Board  of
16        Education, 6,000 copies; and
17             (7)  the biennial report and annual opinions of  the
18        Attorney General, 5,000 copies.
19        The   reports   of  all  other  State  officers,  boards,
20    commissions, institutions, and departments shall be  printed,
21    bound,  and  distributed  at  public  expense  in a number of
22    copies determined from previous experience not to exceed  the
23    probable  and  reasonable demands of the State therefor.  Any
24    other report required by law  to  be  made  to  the  Governor
25    shall,  upon  his  or  her  order, be printed in the quantity
26    ordered by the Governor,  bound  and  distributed  at  public
27    expense.
28        (30 ILCS 505/Act rep.)
29        Section 95-25.  The Illinois Purchasing Act is repealed.
30        (30 ILCS 510/Act rep.)
31        Section   95-30.   The  State  Paper  Purchasing  Act  is
32    repealed.
HB1633 Enrolled             -72-              LRB9003208DJcdA
 1        Section 95-35.   The  State  Printing  Contracts  Act  is
 2    amended by adding Section 44 as follows:
 3        (30 ILCS 515/44 new)
 4        Sec. 44.  Repeal.  This Act is repealed on May 1, 1998.
 5        (30 ILCS 563/Act rep.)
 6        Section 95-37.  The Real Estate Leasing Act is repealed.
 7        (30 ILCS 615/Act rep.)
 8        Section   95-40.    The  State  Vehicle  Mileage  Act  is
 9    repealed.
10                             ARTICLE 99
11                           EFFECTIVE DATE
12        Section  99-5.  Effective  date  and  transition.    This
13    Article,  Sections  1-15  through  1-15.115 of Article 1, and
14    Article 50 take effect upon becoming law. Articles 1  through
15    45  and 53 through 95 take effect January 1, 1998, solely for
16    the  purpose  of  allowing  the  promulgation  of  rules   to
17    implement  the  Illinois  Procurement  Code.  The Procurement
18    Policy Board established in Article 5 may be appointed as  of
19    January  1,  1998,  and until July 1, 1998, shall act only to
20    review proposed purchasing rules.  Articles 1 through 45  and
21    53  through  95 for all other purposes take effect on July 1,
22    1998.

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