State of Illinois
90th General Assembly
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90_HB1633sam002

                                           LRB9003208JMmbam03
 1                    AMENDMENT TO HOUSE BILL 1633
 2        AMENDMENT NO.     .  Amend House Bill 1633,  AS  AMENDED,
 3    by replacing the title with the following:
 4        "AN  ACT  in  relation  to  the  delivery  of  goods  and
 5    services."; and
 6    by  replacing  everything  after the enacting clause with the
 7    following:
 8                             "ARTICLE 1
 9                         GENERAL PROVISIONS
10        Section 1-1.  Short title.  This Act may be cited as  the
11    Illinois Procurement Code.
12        Section  1-5.   Public policy.  It is the purpose of this
13    Code and is declared to be the policy of the State  that  the
14    principles  of competitive bidding and economical procurement
15    practices shall be applicable to all purchases and  contracts
16    by or for any State agency.
17        Section 1-10.  Application.
18        (a)  This  Code  applies  only  to procurements for which
19    contractors were first solicited on or after  July  1,  1998.
                            -2-            LRB9003208JMmbam03
 1    This  Code  shall  not  be  construed to affect or impair any
 2    contract, or any provision of a contract, entered into  based
 3    on  a  solicitation  prior to the implementation date of this
 4    Code as described in Article 99, including but not limited to
 5    any covenant entered into with respect to any  revenue  bonds
 6    or  similar instruments. All procurements for which contracts
 7    are solicited between the effective date of Articles  50  and
 8    99 and July 1, 1998 shall be substantially in accordance with
 9    this Code and its intent.
10        (b)  This  Code  shall  apply regardless of the source of
11    the funds  with  which  the  contracts  are  paid,  including
12    federal assistance moneys. This Code shall not apply to:
13             (1)  contracts  between  the State and its political
14        subdivisions  or  other  governments,  or  between  State
15        governmental bodies except as  specifically  provided  in
16        this Code.
17             (2)  grants.
18             (3)  purchase of care.
19             (4)  hiring  of an individual as employee and not as
20        an  independent  contractor,  whether  pursuant   to   an
21        employment  code  or  policy or by contract directly with
22        that individual.
23             (5)  collective bargaining contracts.
24             (6)  purchase of real estate.
25             (7)  contracts necessary to prepare for  anticipated
26        litigation,   enforcement   actions,  or  investigations,
27        provided that the chief legal  counsel  to  the  Governor
28        shall  give  his or her prior approval when the procuring
29        agency  is  one  subject  to  the  jurisdiction  of   the
30        Governor,  and  provided  that the chief legal counsel of
31        any other procuring entity subject  to  this  Code  shall
32        give  his or her prior approval when the procuring entity
33        is not one subject to the jurisdiction of the Governor.
                            -3-            LRB9003208JMmbam03
 1        Section 1-15.  Definitions.  For  the  purposes  of  this
 2    Code,  the  words set forth in the following Sections of this
 3    Article have the meanings set forth in those Sections.
 4        Section   1-15.03.   Associate   Procurement    Officers.
 5    "Associate   Procurement   Officers"   means   those  persons
 6    appointed as provided in Section 10-15.
 7        Section 1-15.05.  Board.  "Board" means  the  Procurement
 8    Policy Board.
 9        Section   1-15.10.    Business.    "Business"  means  any
10    corporation, partnership,  individual,  sole  proprietorship,
11    joint  stock  company,  joint venture, or other private legal
12    entity.
13        Section  1-15.15.   Chief  Procurement  Officer.   "Chief
14    Procurement Officer" means:
15        (1)  for    procurements     for     construction     and
16    construction-related   services   committed  by  law  to  the
17    jurisdiction or responsibility  of  the  Capital  Development
18    Board,  the  executive  director  of  the Capital Development
19    Board.
20        (2)  for    procurements    for     all     construction,
21    construction-related services, operation of any facility, and
22    the  provision of any service or activity committed by law to
23    the jurisdiction or responsibility of the Illinois Department
24    of  Transportation,  including  the  direct  or  reimbursable
25    expenditure of all federal funds for which the Department  of
26    Transportation  is  responsible  or  accountable  for the use
27    thereof  in  accordance  with  federal  law,  regulation,  or
28    procedure, the Secretary of Transportation.
29        (3)  for all procurements made by a public institution of
30    higher  education,  a  representative   designated   by   the
                            -4-            LRB9003208JMmbam03
 1    Governor.
 2        (4)  for  all  other  procurements,  the  Director of the
 3    Department of Central Management Services.
 4        Section 1-15.20.  Construction  and  construction-related
 5    services.      "Construction"   means   building,   altering,
 6    repairing,  improving, or demolishing any public structure or
 7    building, or making improvements of any kind to  public  real
 8    property.    Construction   does   not  include  the  routine
 9    operation, routine repair, or routine maintenance of existing
10    structures, buildings, or real property.
11        "Construction-related  services"  means  those   services
12    including  construction  design, layout, inspection, support,
13    feasibility  or  location   study,   research,   development,
14    planning,  or  other  investigative  study  undertaken  by  a
15    construction  agency  concerning  construction  or  potential
16    construction.
17        Section  1-15.25.   Construction  agency.   "Construction
18    agency"  means the Capital Development Board for construction
19    or  remodeling  of  State-owned  facilities;   the   Illinois
20    Department  of Transportation for construction or maintenance
21    of roads, highways, bridges, and airports; the Illinois  Toll
22    Highway  Authority  for  construction  or maintenance of toll
23    highways;  and  any  other   State   agency   entering   into
24    construction  contracts as authorized by law or by delegation
25    from the chief procurement officer.
26        Section 1-15.30.  Contract.  "Contract" means  all  types
27    of  State  agreements, regardless of what they may be called,
28    for the procurement, use, or disposal of supplies,  services,
29    professional  or  artistic  services,  or construction or for
30    leases  of  real  property  or  capital   improvements,   and
31    including  master  contracts, contracts for financing through
                            -5-            LRB9003208JMmbam03
 1    use   of   installment   or   lease-purchase    arrangements,
 2    renegotiated contracts, and change orders.
 3        Section     1-15.35.      Cost-reimbursement    contract.
 4    "Cost-reimbursement contract" means a contract under which  a
 5    contractor  is  reimbursed  for  costs that are allowable and
 6    allocable in accordance  with  the  contract  terms  and  the
 7    provisions of this Code, and a fee, if any.
 8        Section 1-15.42.  Grant.  "Grant" means the furnishing by
 9    the  State  of assistance, whether financial or otherwise, to
10    any person to support a program authorized by law.   It  does
11    not  include  an  award  the  primary  purpose of which is to
12    procure an end product for the direct benefit or use  of  the
13    State  agency making the grant, whether in the form of goods,
14    services, or construction.  A contract that results from such
15    an award is not a grant and is subject to this Code.
16        Section 1-15.45.  Invitation for bids.   "Invitation  for
17    bids" means the process by which a purchasing agency requests
18    information  from  bidders,  including all documents, whether
19    attached or incorporated by reference,  used  for  soliciting
20    bids.
21        Section  1-15.50.   Negotiation.  "Negotiation" means the
22    process of selecting a contractor other than  by  competitive
23    sealed bids, multi-step sealed bidding, or competitive sealed
24    proposals,  whereby a purchasing agency can establish any and
25    all  terms  and  conditions  of  a  procurement  contract  by
26    discussion with one or more prospective contractors.
27        Section 1-15.55.  Person.  "Person" means  any  business,
28    public   or  private  corporation,  partnership,  individual,
29    union, committee, club, unincorporated association  or  other
                            -6-            LRB9003208JMmbam03
 1    organization or group of individuals, or other legal entity.
 2        Section  1-15.60.   Professional  and  artistic services.
 3    "Professional and artistic  services"  means  those  services
 4    provided  under  contract  to  a  State agency by a person or
 5    business, acting as an independent contractor,  qualified  by
 6    education, experience, and technical ability.
 7        Section   1-15.65.    Purchase   description.   "Purchase
 8    description" means  the  words  used  in  a  solicitation  to
 9    describe  the  supplies,  services,  professional or artistic
10    services, or construction to be procured or real property  or
11    capital improvements to be leased and includes specifications
12    attached to or made a part of the solicitation.
13        Section  1-15.68.   Purchase of care.  "Purchase of care"
14    means a contract with a person for the furnishing of medical,
15    educational, psychiatric, vocational, rehabilitative, social,
16    or human services directly to a  recipient  of  a  State  aid
17    program.
18        Section 1-15.70.  Purchasing agency.  "Purchasing agency"
19    means  a State agency that is authorized by this Code, by its
20    implementing rules, or by authorized delegation  of  a  chief
21    procurement officer to enter into contracts.
22        Section  1-15.75.   Request  for proposals.  "Request for
23    proposals" means the process by  which  a  purchasing  agency
24    requests  information from offerors, including all documents,
25    whether attached  or  incorporated  by  reference,  used  for
26    soliciting proposals.
27        Section   1-15.80.    Responsible   bidder   or  offeror.
28    "Responsible bidder or offeror" means a person  who  has  the
                            -7-            LRB9003208JMmbam03
 1    capability  in  all  respects  to  perform fully the contract
 2    requirements and the  integrity  and  reliability  that  will
 3    assure good faith performance.
 4        Section 1-15.85.  Responsive bidder.  "Responsive bidder"
 5    means  a  person who has submitted a bid that conforms in all
 6    material respects to the invitation for bids.
 7        Section  1-15.90.   Services.    "Services"   means   the
 8    furnishing  of  labor,  time,  or effort by a contractor, not
 9    involving the delivery of a specific end product  other  than
10    reports  or  supplies  that  are  incidental  to the required
11    performance.
12        Section 1-15.95.  Specifications.  "Specifications" means
13    any description, provision, or requirement pertaining to  the
14    physical  or functional characteristics or of the nature of a
15    supply, service,  or  other  item  to  be  procured  under  a
16    contract.    Specifications  may include a description of any
17    requirement for inspecting, testing, or preparing  a  supply,
18    service,  professional  or artistic service, construction, or
19    other item for delivery.
20        Section 1-15.100.  State agency.   "State  agency"  means
21    and includes all boards, commissions, agencies, institutions,
22    authorities,  and  bodies politic and corporate of the State,
23    created by or in accordance with the constitution or statute,
24    of the executive branch of State government and does  include
25    colleges,    universities,   and   institutions   under   the
26    jurisdiction of the governing boards  of  the  University  of
27    Illinois,   Southern   Illinois  University,  Illinois  State
28    University, Eastern Illinois  University,  Northern  Illinois
29    University,   Western   Illinois  University,  Chicago  State
30    University, Governor State University, Northeastern  Illinois
                            -8-            LRB9003208JMmbam03
 1    University, and the Board of Higher Education.  However, this
 2    term  does not apply to public employee retirement Systems or
 3    investment  boards  that  are  subject  to  fiduciary  duties
 4    imposed by the Illinois Pension Code or to the University  of
 5    Illinois  Foundation.   "State agency" does not include units
 6    of local government,  school  districts,  community  colleges
 7    under  the  Public  Community  College  Act, and the Illinois
 8    Comprehensive Health Insurance Board.
 9        Section  1-15.105.   State  purchasing  officer.   "State
10    purchasing officer" means a person appointed by  any  of  the
11    chief   procurement  officers  to  exercise  the  procurement
12    authority created by this Code or by rule.
13        Section  1-15.110.   Supplies.   "Supplies"   means   all
14    personal  property,  including  but not limited to equipment,
15    materials, printing, and  insurance,  and  the  financing  of
16    those supplies.
17        Section  1-15.115.  Using agency.  "Using agency" means a
18    State agency that uses items procured under this Code.
19        Section 1-25.  Property rights.  No person shall have any
20    right to a specific  contract  with  the  State  unless  that
21    person  has  a contract that has been signed by an officer or
22    employee of the purchasing agency with appropriate  signature
23    authority.   The  State shall be under no obligation to issue
24    an award or execute a contract.
25        Section 1-30. Applicability  to  Constitutional  Officers
26    and the Legislative and Judicial Branches.
27        (a)  The  constitutional  officers  shall  procure  their
28    needs  in  a  manner  substantially  in  accordance  with the
29    requirements of this Code and shall promulgate rules no  less
                            -9-            LRB9003208JMmbam03
 1    restrictive than the requirements of this Code.
 2        (b)  The  legislative  and  judicial  branches are exempt
 3    from this Code.  The legislative and judicial branches  shall
 4    make  procurements  in  accordance  with rules promulgated to
 5    meet  their  needs.  Procurement  rules  promulgated  by  the
 6    legislative and judicial branches may incorporate  provisions
 7    of this Code.
 8                              ARTICLE 5
 9                         POLICY ORGANIZATION
10        Section 5-5.  Procurement Policy Board.
11        (a)  Creation.   There  is  created  a Procurement Policy
12    Board.
13        (b)  Authority and duties.   The  Board  shall  have  the
14    authority  and  responsibility  to  review, comment upon, and
15    recommend, consistent with this  Code,  rules  and  practices
16    governing  the procurement, management, control, and disposal
17    of supplies, services,  professional  or  artistic  services,
18    construction,  and  real  property  and  capital  improvement
19    leases  procured  by  the State.  Upon a three-fifths vote of
20    its  members,  the  Board  may  review  a  contract.  Upon  a
21    three-fifths vote of  its  members,  the  Board  may  propose
22    procurement  rules  for  consideration  by  chief procurement
23    officers.  These proposals shall be published in each  volume
24    of  the Procurement Bulletin. Except as otherwise provided by
25    law, the Board shall act upon the vote of a majority  of  its
26    members who have been appointed and are serving.
27        (c)  Members.   The  Board  shall  consist  of  5 members
28    appointed one each by the 4  legislative  leaders  and    the
29    Governor.  Each  member  shall  have  demonstrated sufficient
30    business  or  professional  experience   in   the   area   of
31    procurement to perform the functions of the Board.  No member
32    may be a member of the General Assembly.
                            -10-           LRB9003208JMmbam03
 1        (d)  Terms.   Of  the  initial  appointees,  the Governor
 2    shall designate one member, as Chairman, to serve a  one-year
 3    term,  the  President  of  the  Senate and the Speaker of the
 4    House shall each appoint one member to  serve  3-year  terms,
 5    and  the Minority Leader of the House and the Minority Leader
 6    of the Senate shall each appoint one member to  serve  2-year
 7    terms.   Subsequent  terms  shall be 4 years.  Members may be
 8    reappointed for succeeding terms.
 9        (e)  Reimbursement.     Members    shall    receive    no
10    compensation  but  shall  be  reimbursed  for  any   expenses
11    reasonably incurred in the performance of their duties.
12        (f)  Staff  support.   Upon  a  three-fifths  vote of its
13    members, the Board may employ an executive director.  Subject
14    to appropriation, the Board also  may  have  up  to  3  staff
15    persons.  Other  support  services  shall  be provided by the
16    chief procurement officers.
17        (g)  Meetings.  Meetings of the Board  may  be  conducted
18    telephonically,  electronically,  or through the use of other
19    telecommunications. Written minutes of such meetings shall be
20    created and available for public inspection and copying.
21        Section 5-23. Interests of Board members.  Members of the
22    Procurement Policy Board employed by or holding  an  interest
23    in an entity doing business with or attempting to do business
24    with  the  State  of Illinois do not, by their service on the
25    Board, preclude that  entity  from  doing  business  with  or
26    attempting to do business with the State.
27        Section  5-25.   Rulemaking  authority.  A  State  agency
28    authorized  to  make  procurements under this Code shall have
29    the  authority  to  promulgate  rules  to  carry   out   that
30    authority.  That rulemaking on specific procurement topics is
31    mentioned in specific Sections of  this  Code  shall  not  be
32    construed  as  prohibiting  or  limiting  rulemaking on other
                            -11-           LRB9003208JMmbam03
 1    procurement topics.
 2        All rules shall be promulgated  in  accordance  with  the
 3    Illinois    Administrative    Procedure   Act.    Contractual
 4    provisions, specifications, and procurement descriptions  are
 5    not  rules and are not subject to the Illinois Administrative
 6    Procedure Act. All rules other than those promulgated by  the
 7    Board  shall  be  presented  in  writing to the Board for its
 8    review and comment.  The Board shall express its opinions and
 9    recommendations in writing.   Both  the  proposed  rules  and
10    Board  recommendations  shall  be  made  available for public
11    review.  The rules shall also be approved by  the  applicable
12    chief   procurement   officer  and  the  Joint  Committee  on
13    Administrative Rules.
14                             ARTICLE 10
15                            APPOINTMENTS
16        Section 10-5.  Exercise of  procurement  authority.   The
17    State   purchasing  officers  shall  be  appointed  by  their
18    respective chief procurement  officer  and  approved  by  the
19    director  of each State agency.  The State purchasing officer
20    of each State agency shall exercise the procurement authority
21    created by this Code except as  otherwise  provided  in  this
22    Code.
23        Section    10-10.  General   appointments.    The   chief
24    procurement officer shall appoint and the  director  of  each
25    State  agency  shall  approve  a  State purchasing officer to
26    exercise within  his  or  her  jurisdiction  the  procurement
27    authority  created  by  this  Code.   In  the  absence  of an
28    appointed  and  approved  State   purchasing   officer,   the
29    applicable  chief  procurement  officer  shall  exercise  the
30    procurement authority created by this Code.
                            -12-           LRB9003208JMmbam03
 1        Section  10-15.   Associate  Procurement  Officers.   The
 2    Governor, with the consent of the statutory chief procurement
 3    officers, may for proper and effective administration of this
 4    Code  appoint  associate procurement officers.  All associate
 5    procurement officers shall be submitted  to  the  Senate  for
 6    advice  and  consent.   For  the  purposes of this Code, duly
 7    appointed associate procurement officers  shall  function  in
 8    all   respects  as  chief  procurement  officers.   Associate
 9    procurement officers shall  serve  at  the  pleasure  of  the
10    Governor.
11                             ARTICLE 15
12                        PROCUREMENT BULLETIN
13        Section  15-1.   Publisher.   The  Department  of Central
14    Management Services  is  the  State  agency  responsible  for
15    publishing  its volumes of the Illinois Procurement Bulletin.
16    The Capital Development Board is responsible  for  publishing
17    its  volumes  of  the  Illinois  Procurement  Bulletin.   The
18    Department  of  Transportation  is responsible for publishing
19    its volumes of the Illinois Procurement Bulletin. The  higher
20    education   chief  procurement  officer  is  responsible  for
21    publishing the  higher  education  volumes  of  the  Illinois
22    Procurement Bulletin.
23        Each volume of the Illinois Procurement Bulletin shall be
24    available  electronically  and  may   be  available in print.
25    References in this Code to the publication  and  distribution
26    of  the  Illinois Procurement Bulletin include both its print
27    and electronic formats.
28        Section  15-10.   Contents.   The  Illinois   Procurement
29    Bulletin shall contain notices and other information required
30    by  this  Code  or by rules promulgated under this Code to be
31    published in the Illinois Procurement Bulletin.  Each  volume
                            -13-           LRB9003208JMmbam03
 1    shall include a comprehensive index of its contents.
 2        Section 15-15.  Publication.  All volumes of the Illinois
 3    Procurement  Bulletin  shall  be  published at least once per
 4    month.  Any volume,  including  volumes  available  in  print
 5    format, shall be available through subscription for a minimal
 6    fee  not  exceeding  publication and distribution costs.  The
 7    Illinois Procurement Bulletin shall be  distributed  free  to
 8    public libraries within Illinois.
 9        Section  15-20.   Qualified bidders.  Subscription to the
10    Illinois  Procurement  Bulletin  shall  not  be  required  to
11    qualify as a bidder or offeror under this Code.
12        Section 15-25.  Bulletin content.
13        (a)  Invitations for bids.   Notice  of  each  and  every
14    contract  that  is  offered, including renegotiated contracts
15    and change orders, shall be published in the  Bulletin.   The
16    applicable  chief  procurement officer may provide by rule an
17    organized format for the publication of this information, but
18    in any case it must include at least the date first  offered,
19    the  date  submission  of  offers  is  due, the location that
20    offers are to be submitted to, the purchasing  State  agency,
21    the  responsible  State  purchasing officer, a brief purchase
22    description, the method of source selection, and  information
23    of how to obtain a comprehensive purchase description and any
24    disclosure and contract forms.
25        (b)  Contracts  let or awarded.  Notice of each and every
26    contract that  is  let  or  awarded,  including  renegotiated
27    contracts  and  change orders, shall be published in the next
28    available  subsequent  Bulletin,  and  the  applicable  chief
29    procurement officer may  provide by rule an organized  format
30    for  the  publication of this information, but in any case it
31    must include at least all of  the  information  specified  in
                            -14-           LRB9003208JMmbam03
 1    subsection  (a)  as  well  as  the  name  of  the  successful
 2    responsible bidder or offeror, the contract price, the number
 3    of  unsuccessful responsive bidders, and any other disclosure
 4    specified in any Section of this Code.
 5        (c)  Emergency   purchase    disclosure.     Any    chief
 6    procurement  officer,  State  purchasing officer, or designee
 7    exercising emergency purchase authority under this Code shall
 8    publish a written description and reasons and the total cost,
 9    if known, or an estimate if  unknown  and  the  name  of  the
10    responsible  chief  procurement  officer and State purchasing
11    officer, and the business or person contracted with  for  all
12    emergency purchases in the next timely, practicable Bulletin.
13        (d)  Other  required  disclosure.   The  applicable chief
14    procurement officer shall provide by rule for  the  organized
15    publication   of  all  other  disclosure  required  in  other
16    Sections of this Code in a timely manner.
17                             ARTICLE 20
18               SOURCE SELECTION AND CONTRACT FORMATION
19        Section  20-5.   Method  of  source  selection.    Unless
20    otherwise  authorized  by  law,  all State contracts shall be
21    awarded by competitive sealed  bidding,  in  accordance  with
22    Section  20-10,  except as provided in Sections 20-15, 20-20,
23    20-25, 20-30, 20-35, 30-15, and 40-20.
24        Section 20-10.  Competitive sealed bidding.
25        (a)  Conditions for use.  All contracts shall be  awarded
26    by competitive sealed bidding except as otherwise provided in
27    Section 20-5.
28        (b)  Invitation  for  bids.  An invitation for bids shall
29    be issued and shall include a purchase  description  and  the
30    material  contractual  terms and conditions applicable to the
31    procurement.
                            -15-           LRB9003208JMmbam03
 1        (c)  Public notice.  Public notice of the invitation  for
 2    bids  shall be published in the Illinois Procurement Bulletin
 3    at least 14 days before the date set in  the  invitation  for
 4    the opening of bids.
 5        (d)  Bid  opening.   Bids shall be opened publicly in the
 6    presence of one or more  witnesses  at  the  time  and  place
 7    designated  in  the  invitation  for  bids.  The name of each
 8    bidder,  the  amount  of  each  bid,   and   other   relevant
 9    information  as  may  be specified by rule shall be recorded.
10    After the award of the contract,  the  winning  bid  and  the
11    record  of  each  unsuccessful  bid  shall  be open to public
12    inspection.
13        (e)  Bid acceptance and bid evaluation.   Bids  shall  be
14    unconditionally  accepted  without  alteration or correction,
15    except as authorized in this Code.  Bids shall  be  evaluated
16    based  on  the  requirements  set forth in the invitation for
17    bids, which may include criteria to  determine  acceptability
18    such  as inspection, testing, quality, workmanship, delivery,
19    and suitability for a  particular  purpose.   Those  criteria
20    that   will  affect  the  bid  price  and  be  considered  in
21    evaluation  for  award,  such  as  discounts,  transportation
22    costs, and total or life cycle costs,  shall  be  objectively
23    measurable.  The  invitation  for  bids  shall  set forth the
24    evaluation criteria to be used.
25        (f)  Correction or  withdrawal  of  bids.  Correction  or
26    withdrawal  of  inadvertently  erroneous bids before or after
27    award, or cancellation of awards of contracts  based  on  bid
28    mistakes, shall be permitted in accordance with rules.  After
29    bid  opening, no changes in bid prices or other provisions of
30    bids prejudicial  to  the  interest  of  the  State  or  fair
31    competition  shall be permitted.  All decisions to permit the
32    correction or withdrawal of bids based on bid mistakes  shall
33    be  supported  by  written  determination  made  by  a  State
34    purchasing officer.
                            -16-           LRB9003208JMmbam03
 1        (g)  Award.    The   contract   shall   be  awarded  with
 2    reasonable  promptness  by  written  notice  to  the   lowest
 3    responsible   and  responsive  bidder  whose  bid  meets  the
 4    requirements and criteria set forth  in  the  invitation  for
 5    bids, except when a State purchasing officer determines it is
 6    not  in  the  best  interest  of  the  State  and  by written
 7    explanation  determines  another  bidder  shall  receive  the
 8    award.  The  explanation  shall  appear  in  the  appropriate
 9    volume of the Illinois Procurement Bulletin.
10        (h)  Multi-step  sealed  bidding.   When it is considered
11    impracticable to initially prepare a purchase description  to
12    support  an  award based on price, an invitation for bids may
13    be issued requesting the submission of unpriced offers to  be
14    followed  by  an invitation for bids limited to those bidders
15    whose offers have been qualified under the criteria set forth
16    in the first solicitation.
17        Section 20-15.  Competitive sealed proposals.
18        (a)  Conditions for use.  When provided under  this  Code
19    or  under  rules, or when the purchasing agency determines in
20    writing that the use of competitive sealed bidding is  either
21    not  practicable or not advantageous to the State, a contract
22    may be entered into by competitive sealed proposals.
23        (b)  Request for proposals.  Proposals shall be solicited
24    through a request for proposals.
25        (c)  Public notice.  Public notice  of  the  request  for
26    proposals  shall  be  published  in  the Illinois Procurement
27    Bulletin at  least  14  days  before  the  date  set  in  the
28    invitation for the opening of proposals.
29        (d)  Receipt  of  proposals.   Proposals  shall be opened
30    publicly in the presence of one or more witnesses at the time
31    and place  designated  in  the  request  for  proposals,  but
32    proposals  shall be opened in a manner to avoid disclosure of
33    contents  to  competing  offerors  during  the   process   of
                            -17-           LRB9003208JMmbam03
 1    negotiation.   A  record  of  proposals shall be prepared and
 2    shall be open for public inspection after contract award.
 3        (e)  Evaluation  factors.   The  requests  for  proposals
 4    shall state  the  relative  importance  of  price  and  other
 5    evaluation factors.  Proposals shall be submitted in 2 parts:
 6    the  first,  covering  items  except  price;  and the second,
 7    covering price.  The first part of  all  proposals  shall  be
 8    evaluated  and ranked independently of the second part of all
 9    proposals.
10        (f)  Discussion with responsible offerors  and  revisions
11    of  proposals.   As provided in the request for proposals and
12    under rules, discussions may be  conducted  with  responsible
13    offerors  who  submit  proposals  determined to be reasonably
14    susceptible of being selected for award for  the  purpose  of
15    clarifying   and   assuring   full   understanding   of   and
16    responsiveness   to  the  solicitation  requirements.   Those
17    offerors shall be accorded  fair  and  equal  treatment  with
18    respect  to  any  opportunity  for discussion and revision of
19    proposals.  Revisions may be permitted after  submission  and
20    before  award  for  the  purpose  of obtaining best and final
21    offers.   In  conducting  discussions  there  shall   be   no
22    disclosure   of   any   information  derived  from  proposals
23    submitted by competing offerors.  If information is disclosed
24    to any  offeror,  it  shall  be  provided  to  all  competing
25    offerors.
26        (g)  Award.   Awards  shall  be  made  to the responsible
27    offeror whose proposal is determined in  writing  to  be  the
28    most  advantageous  to  the  State, taking into consideration
29    price and the evaluation factors set forth in the request for
30    proposals.  The contract file  shall  contain  the  basis  on
31    which the award is made.
32        Section 20-20.  Small purchases.
33        (a)  Amount.   Any  individual procurement of supplies or
                            -18-           LRB9003208JMmbam03
 1    services other than professional or  artistic  services,  not
 2    exceeding  $10,000  and  any  procurement of construction not
 3    exceeding $30,000 may  be  made  without  competitive  sealed
 4    bidding.    Procurements shall not be artificially divided so
 5    as to constitute a small purchase under this Section.
 6        (b)  Adjustment.  Each July 1, the small purchase maximum
 7    established in subsection (a) shall be adjusted for inflation
 8    as determined by the  Consumer  Price  Index  for  All  Urban
 9    Consumers  as  determined  by the United States Department of
10    Labor and rounded to the nearest $100.
11        (c)  Based upon rules proposed by  the  Board  and  rules
12    promulgated  by  the  chief  procurement  officers, the small
13    purchase  maximum  established  in  subsection  (a)  may   be
14    modified.
15        Section  20-25.  Sole source procurements.  In accordance
16    with standards set by rule, contracts may be awarded  without
17    use of the specified method of source selection when there is
18    only one economically feasible source for the item.  At least
19    2  weeks  before  entering  into  a sole source contract, the
20    purchasing agency shall publish in the  Illinois  Procurement
21    Bulletin a notice of intent to do so along with a description
22    of  the  item  to  be  procured  and the intended sole source
23    contractor.
24        Section 20-30.  Emergency purchases.
25        (a)  Conditions for use.  In  accordance  with  standards
26    set   by   rule,  a  purchasing  agency  may  make  emergency
27    procurements without  competitive  sealed  bidding  or  prior
28    notice  when there exists a threat to public health or public
29    safety,  or  when  immediate  expenditure  is  necessary  for
30    repairs to State property in order to protect against further
31    loss of or damage to State property, to prevent  or  minimize
32    serious  disruption  in  State  services,  or  to  ensure the
                            -19-           LRB9003208JMmbam03
 1    integrity of State records.  Emergency procurements shall  be
 2    made  with  as  much  competition as is practicable under the
 3    circumstances.  A written description of the  basis  for  the
 4    emergency  and  reasons  for  the selection of the particular
 5    contractor shall be included in the contract file.
 6        (b)  Notice.  Before the next appropriate volume  of  the
 7    Illinois  Procurement  Bulletin,  the purchasing agency shall
 8    publish in the Illinois Procurement Bulletin a copy  of  each
 9    written  description  and  reasons and the total cost of each
10    emergency procurement made during the previous month.    When
11    only  an  estimate  of the total cost is known at the time of
12    publication, the estimate shall be identified as an  estimate
13    and  published.  When the actual total cost is determined, it
14    shall also be published in like manner before the 10th day of
15    the next succeeding month.
16        (c)  Affidavits.    A   purchasing   agency   making    a
17    procurement    under  this Section shall file affidavits with
18    the chief procurement officer and the Auditor  General within
19    10 days after  the  procurement  setting  forth  the   amount
20    expended,  the  name  of  the  contractor  involved,  and the
21    conditions  and   circumstances   requiring   the   emergency
22    procurement.   When only an estimate of the cost is available
23    within 10 days after the procurement,  the actual cost  shall
24    be  reported  immediately after it is determined.  At the end
25    of each fiscal quarter, the Auditor General shall  file  with
26    the  Legislative Audit Commission and the Governor a complete
27    listing  of  all  emergency procurements reported during that
28    fiscal  quarter.   The  Legislative  Audit  Commission  shall
29    review the emergency  procurements so reported  and,  in  its
30    annual  reports,  advise the General Assembly of procurements
31    that appear to constitute an abuse of this Section.
32        (d)  Quick purchases.  The chief procurement officer  may
33    promulgate  rules  extending  the  circumstances  by  which a
34    purchasing agency may  make  purchases  under  this  Section,
                            -20-           LRB9003208JMmbam03
 1    including  but  not  limited  to  the  procurement  of  items
 2    available at a discount for a limited period of time.
 3        Section 20-35.  Competitive selection procedures.
 4        (a)  Conditions  for  use.   The  services  specified  in
 5    Article 35 shall be procured in accordance with this Section,
 6    except  as  authorized under Sections 20-25 and 20-30 of this
 7    Article.
 8        (b)  Statement of qualifications.  Potential  contractors
 9    shall  submit statements of qualifications and expressions of
10    interest.  The chief  procurement  officer  shall  specify  a
11    uniform  format for statements of qualifications. Persons may
12    amend these statements at any time by filing a new statement.
13        (c)  Public  announcement  and  form   of   request   for
14    proposals.    Public  notice  of the need for the procurement
15    shall be given in the form of a  request  for  proposals  and
16    published  in  the  Illinois Procurement Bulletin at least 14
17    days before the date set in the request for proposals for the
18    opening  of  proposals.   The  request  for  proposals  shall
19    describe the services required, list the type of  information
20    and  data  required  of  each offeror, and state the relative
21    importance of particular qualifications.
22        (d)  Discussions.   The  purchasing  agency  may  conduct
23    discussions with any offeror who has submitted a proposal  to
24    determine    the   offeror's   qualifications   for   further
25    consideration.     Discussions   shall   not   disclose   any
26    information   derived   from  proposals  submitted  by  other
27    offerors.
28        (e)  Award.   Award  shall  be  made   to   the   offeror
29    determined  in  writing  by  the purchasing agency to be best
30    qualified based on the evaluation factors set  forth  in  the
31    request   for   proposals  and  negotiation  of  compensation
32    determined to be fair and reasonable.
                            -21-           LRB9003208JMmbam03
 1        Section 20-40.  Cancellation of invitations for  bids  or
 2    requests  for  proposals.   An invitation for bids, a request
 3    for proposals, or any other  solicitation  may  be  cancelled
 4    without  penalty,  or  any  and  all bids or proposals may be
 5    rejected in whole or in part  as  may  be  specified  in  the
 6    solicitation,  when  it is in the best interests of the State
 7    in accordance with rules.  The reasons  for  cancellation  or
 8    rejection shall be made part of the contract file.
 9        Section 20-45.  Prequalification of suppliers.  The chief
10    procurement   officer   shall   promulgate   rules   for  the
11    development of prequalified supplier  lists  for  appropriate
12    categories  of  purchases  and  the  annual updating of those
13    lists.
14        Section 20-50.  Specifications.  Specifications shall  be
15    prepared  in  accordance  with  consistent standards that are
16    promulgated by the chief procurement officer and reviewed  by
17    the  Board  and  the Joint Committee on Administrative Rules.
18    Those standards shall include a prohibition against  the  use
19    of brand-name only products, except for products intended for
20    retail  sale  or  as  specified  by rule, and shall include a
21    restriction  on  the  use  of  specifications  drafted  by  a
22    potential bidder.  All specifications shall seek  to  promote
23    overall  economy  for  the  purposes  intended  and encourage
24    competition in satisfying the State's needs and shall not  be
25    unduly restrictive.
26        Section  20-55.   Types  of  contracts.   Subject  to the
27    limitations of this Section and unless  otherwise  authorized
28    by  law,  any  type  of  contract  that will promote the best
29    interests  of  the   State   may   be   used,   except   that
30    cost-plus-a-percentage-of-cost  contracts  are  prohibited. A
31    cost-reimbursement  contract  may  be  used   only   when   a
                            -22-           LRB9003208JMmbam03
 1    determination  is  made  in writing that a cost-reimbursement
 2    contract is likely to be less costly to the  State  than  any
 3    other  type  or  that  it is impracticable to obtain the item
 4    required except under that type  of  contract.   The  general
 5    form   of   contracts   shall  be  determined  by  the  chief
 6    procurement officer.
 7        Section 20-60.  Duration of contracts.
 8        (a)  Maximum duration.  A contract may  be  entered  into
 9    for  any period of time deemed to be in the best interests of
10    the State but not exceeding 10 years.  The length of a  lease
11    for  real  property  or  capital  improvements  shall  be  in
12    accordance with the provisions of Section 40-25.
13        (b)  Subject  to  appropriation.   All  contracts made or
14    entered  into  shall  recite  that  they   are   subject   to
15    termination  and  cancellation  in  any  year  for  which the
16    General Assembly fails  to  make  an  appropriation  to  make
17    payments under the terms of the contract.
18        Section 20-65.  Right to audit records.
19        (a)  Maintenance  of  books  and records.  Every contract
20    and   subcontract   shall   require   the    contractor    or
21    subcontractor,  as  applicable, to maintain books and records
22    relating to the performance of the  contract  or  subcontract
23    and  necessary  to support amounts charged to the State under
24    the contract or subcontract.  The books and records shall  be
25    maintained by the contractor for a period of 3 years from the
26    later  of  the  date  of  final payment under the contract or
27    completion of the contract and by  the  subcontractor  for  a
28    period of 3 years from the later of the date of final payment
29    under  the  subcontract  or  completion  of  the subcontract.
30    However, the 3-year period shall be extended for the duration
31    of any audit  in  progress  at  the  time  of  that  period's
32    expiration.
                            -23-           LRB9003208JMmbam03
 1        (b)  Audit.  Every contract and subcontract shall provide
 2    that  all  books  and records required to be maintained under
 3    subsection (a) shall be available for review and audit by the
 4    Auditor General and the purchasing  agency.   Every  contract
 5    and    subcontract   shall   require   the   contractor   and
 6    subcontractor, as applicable, to  cooperate  fully  with  any
 7    audit.
 8        (c)  Failure  to  maintain books and records.  Failure to
 9    maintain the books and records required by this Section shall
10    establish a  presumption  in  favor  of  the  State  for  the
11    recovery  of  any  funds paid by the State for which required
12    books and records are not available.
13        Section    20-70.     Finality     of     determinations.
14    Determinations  made  by  a purchasing agency under this Code
15    are final and conclusive unless they are  clearly  erroneous,
16    arbitrary, capricious, or contrary to law.
17        Section   20-75.    Disputes  and  protests.   The  chief
18    procurement officers shall by rule establish procedures to be
19    followed  by  purchasing  agencies  in  resolving   protested
20    solicitations  and  awards  and  contract  controversies, for
21    debarment or suspension of  contractors,  and  for  resolving
22    other procurement-related disputes.
23        Section 20-80.  Contract files.
24        (a)  Written  determinations.  All written determinations
25    required under this Article shall be placed in  the  contract
26    file maintained by the chief procurement officer.
27        (b)  Filing   with   Comptroller.   Whenever  a  contract
28    liability, except for:
29             (1)  contracts paid from personal services, or
30             (2)  contracts between the State and  its  employees
31        to  defer  compensation  in accordance with Article 24 of
                            -24-           LRB9003208JMmbam03
 1        the Illinois Pension Code
 2    exceeding $10,000 is incurred by any State agency, a copy  of
 3    the  contract,  purchase  order, or lease shall be filed with
 4    the Comptroller within 15 days thereafter.  Any  cancellation
 5    or modification to any such contract liability shall be filed
 6    with the Comptroller within 15 days of its execution.
 7        (c)  Late  filing  affidavit.   When a contract, purchase
 8    order, or lease required to be filed by this Section has  not
 9    been filed within 30 days of execution, the Comptroller shall
10    refuse  to  issue  a warrant for payment thereunder until the
11    agency files with  the  Comptroller  the  contract,  purchase
12    order,  or  lease  and  an  affidavit,  signed  by  the chief
13    executive officer of the  agency  or  his  or  her  designee,
14    setting  forth  an  explanation of why the contract liability
15    was not filed within 30 days of execution.  A  copy  of  this
16    affidavit shall be filed with the Auditor General.
17        (d)  Professional  and  artistic  services contracts.  No
18    voucher shall be submitted to the Comptroller for  a  warrant
19    to  be drawn for the payment of money from the State treasury
20    or from other funds held by the State Treasurer on account of
21    any contract for services involving professional or  artistic
22    skills  involving  an expenditure of more than $5,000 for the
23    same type of service at the same location during  any  fiscal
24    year  unless  the  contract  is reduced to writing before the
25    services are performed and filed with the Comptroller.   When
26    a  contract  for professional or artistic skills in excess of
27    $5,000 was not reduced to writing before  the  services  were
28    performed,  the  Comptroller  shall refuse to issue a warrant
29    for payment for the services until  the  State  agency  files
30    with the Comptroller:
31             (1)  a written contract covering the services, and
32             (2)  an  affidavit,  signed  by  the chief executive
33        officer of the State  agency  or  his  or  her  designee,
34        stating that the services for which payment is being made
                            -25-           LRB9003208JMmbam03
 1        were  agreed  to  before commencement of the services and
 2        setting forth an explanation of why the contract was  not
 3        reduced to writing before the services commenced.
 4    A  copy  of  this  affidavit  shall be filed with the Auditor
 5    General.  The  Comptroller  shall  maintain  professional  or
 6    artistic   service   contracts   filed   under  this  Section
 7    separately from other filed contracts.
 8        (e)  Method of source  selection.   When  a  contract  is
 9    filed   with   the   Comptroller   under  this  Section,  the
10    Comptroller's  file  shall  identify  the  method  of  source
11    selection used in obtaining the contract.
12        Section 20-85.  Federal  requirements.   A  State  agency
13    receiving  federal-aid  funds,  grants,  or  loans shall have
14    authority to adopt its procedures, rules, project statements,
15    drawings,  maps,  surveys,  plans,  specifications,  contract
16    terms, estimates, bid forms, bond forms, and other  documents
17    or  practices  to  comply with the regulations, policies, and
18    procedures of the designated  authority,  administration,  or
19    department  of the United States, in order to remain eligible
20    for such federal-aid funds, grants, or loans.
21        Section    20-90.     Foreign    country    procurements.
22    Procurements to meet the needs of State  offices  located  in
23    foreign  countries  shall  comply with the provisions of this
24    Code to the extent practical.
25        Section 20-95.  Donations.  Nothing in this  Code  or  in
26    the rules promulgated under this Code shall prevent any State
27    agency  from  complying  with the terms and conditions of any
28    grant, gift, or bequest that calls for the procurement  of  a
29    particular  good  or  service  or  the  use  of  a particular
30    contractor,  provided  that  the  grant,  gift,  or   bequest
31    provides majority funding for the contract.
                            -26-           LRB9003208JMmbam03
 1        Section  20-105.   State  agency  printing.   All  books,
 2    pamphlets, documents, and reports published through or by the
 3    State  of  Illinois or any State agency, board, or commission
 4    shall have printed thereon "Printed by authority of the State
 5    of Illinois", the date of each  publication,  the  number  of
 6    copies  printed,  and  the printing order number.  Each using
 7    agency shall be responsible for ascertaining  the  compliance
 8    of  printing  materials  procured  by  or  for  it  with this
 9    Section.  No printing or reproduction contract shall  be  let
10    and  no  printing  or reproduction shall be accomplished when
11    that wording does not appear on the material to be printed or
12    reproduced.  No publication may  have  written,  stamped,  or
13    printed  on  it,  or attached to it, "Compliments of ........
14    (naming a person)" or any words of similar import.
15        Section  20-110.   Printing  cost  offsets.   The   chief
16    procurement  officer  may  promulgate  rules  permitting  the
17    exchange  of  advertising rights in or receipt of free copies
18    of printed products procured under this Article as a means of
19    reducing  printing  costs.   The  rules  shall  specify   the
20    appropriate   method  of  source  selection  to  be  used  to
21    competitively acquire printing cost offsets.
22                             ARTICLE 25
23                  SUPPLIES AND SERVICES (EXCLUDING
24                      PROFESSIONAL OR ARTISTIC)
25        Section 25-5.  Applicability.  All contracts for supplies
26    and services, excluding professional  or  artistic  services,
27    shall  be  procured in accordance with the provisions of this
28    Article.
29        Section 25-10.   Authority.   State  purchasing  officers
30    shall  have  the  authority to procure supplies and services,
                            -27-           LRB9003208JMmbam03
 1    except  as  that  authority  may  be  limited  by  the  chief
 2    procurement officer.
 3        Section 25-15.  Method of source selection.
 4        (a)  Competitive sealed bidding.  Except as  provided  in
 5    subsection  (b)  and  Sections  20-20,  20-25, and 20-30, all
 6    State contracts for supplies and services shall be awarded by
 7    competitive sealed bidding in accordance with Section 20-10.
 8        (b)  Other methods.  The chief  procurement  officer  may
 9    establish  by  rule  (i)  categories  of purchases, including
10    non-governmental joint purchases, that may  be  made  without
11    competitive  sealed  bidding  and  (ii)  the most competitive
12    alternate method of source selection that shall be  used  for
13    each category of purchase.
14        Section  25-30.   More  favorable  terms.   A  supply  or
15    service  contract  may  include,  if  determined  by  a State
16    purchasing officer to be in the best interests of the  State,
17    a  clause  requiring that if more favorable terms are granted
18    by the contractor to any similar state or local  governmental
19    agency  in any state in a contemporaneous agreement let under
20    the same or similar financial  terms  and  circumstances  for
21    comparable  supplies  or  services,  the more favorable terms
22    shall be applicable under the contract.
23        Section 25-35.  Purchase of coal and postage stamps.
24        (a)  Delivery   of   necessary   supplies.    To    avoid
25    interruption or impediment of delivery of necessary supplies,
26    commodities,  and  coal,  State  purchasing officers may make
27    purchases of or contracts for supplies and commodities  after
28    April  30  of a fiscal year when delivery of the supplies and
29    commodities is to be made after June 30 of that  fiscal  year
30    and  payment  for which is to be made from appropriations for
31    the next fiscal year.
                            -28-           LRB9003208JMmbam03
 1        (b)  Postage.  All postage stamps  purchased  from  State
 2    funds  must  be  perforated  for  identification purposes.  A
 3    General Assembly member may furnish the U.S. Post Office with
 4    a warrant so as to allow for the creation or continuation  of
 5    a  bulk rate mailing fund in the name of the General Assembly
 6    member or may furnish a postage meter company or post  office
 7    with  a warrant so as to facilitate the purchase of a postage
 8    meter and its stamps.  Any postage meter  so  purchased  must
 9    also contain a stamp that shall state "Official State Mail".
10        Section   25-45.   Energy  conservation  program.   State
11    purchasing  officers  may  enter  into  energy   conservation
12    program contracts that provide for utility cost savings.  The
13    chief  procurement  officer  shall promulgate and adopt rules
14    for the implementation of this Section.
15        Section 25-55.  Annual  reports.   Every  printed  annual
16    report  produced  by  a  State  agency shall bear a statement
17    indicating whether it was printed by the State of Illinois or
18    by contract and indicating the printing cost per copy and the
19    number  of  copies  printed.    The  Department  of   Central
20    Management  Services  shall prepare and submit to the General
21    Assembly on the fourth Wednesday of January in  each  year  a
22    report  setting  forth  with respect to each State agency for
23    the calendar year immediately preceding the calendar year  in
24    which  the  report  is  filed  the  total  quantity of annual
25    reports printed, the total cost, and the cost  per  copy  and
26    the  cost  per  page of the annual report of the State agency
27    printed during the calendar year covered by the report.
28        Section 25-60.  Prevailing wage requirements.
29        (a)  All services furnished under printing  contracts  of
30    $10,000 or more and under service contracts of $2,000 or more
31    or  $200  or more per month shall be subject to the following
                            -29-           LRB9003208JMmbam03
 1    prevailing wage requirements:
 2             (1)  Not less than the general prevailing wage  rate
 3        of  hourly  wages  for work of a similar character in the
 4        locality in which the work is produced shall be  paid  by
 5        the  successful  vendor  to its employees who perform the
 6        work on the State contracts.  The bidder or  offeror,  in
 7        order  to  be  considered  to  be a responsible bidder or
 8        offeror for the purposes of this Code, shall  certify  to
 9        the  purchasing  agency  that  wages  to  be  paid to its
10        employees are no less, and fringe  benefits  and  working
11        conditions  of  employees  are  not  less favorable, than
12        those prevailing in the locality where the contract is to
13        be performed.  Prevailing wages  and  working  conditions
14        shall  be  determined  by  the  Director  of the Illinois
15        Department of Labor.
16             (2)  Whenever a collective bargaining  agreement  is
17        in  effect between an employer, other than a governmental
18        body, and service or printing  employees  as  defined  in
19        this   Section  who  are  represented  by  a  responsible
20        organization that is in no way influenced  or  controlled
21        by  the  management,  that  agreement  and its provisions
22        shall be  considered  as  conditions  prevalent  in  that
23        locality and shall be the minimum requirements taken into
24        consideration by the Director of Labor.
25             (3)  Collective  bargaining agreements between State
26        employees and the State of Illinois shall  not  be  taken
27        into  account  by  the Department of Labor in determining
28        the prevailing wage rate.
29        (b)  As used in this Section, "services" means janitorial
30    cleaning services, window cleaning services,  food  services,
31    and  security  services.   "Printing"  means and includes all
32    processes and operations involved in printing, including  but
33    not  limited  to  letterpress, offset, and gravure processes,
34    the  multilith  method,  photographic  or  other  duplicating
                            -30-           LRB9003208JMmbam03
 1    process,  the   operations   of   composition,   platemaking,
 2    presswork,  and  binding,  and  the  end  products  of  those
 3    processes,  methods,  and  operations.   As used in this Code
 4    "printing" does not include photocopiers used in  the  course
 5    of  normal  business  activities, photographic equipment used
 6    for geographic mapping, or printed matter  that  is  commonly
 7    available to the general public from contractor inventory.
 8        (c)  The terms "general prevailing rate of hourly wages",
 9    "general  prevailing  rate  of wages", or "prevailing rate of
10    wages" when used in this Section mean the hourly  cash  wages
11    plus  fringe  benefits  for  health  and  welfare, insurance,
12    vacations, and pensions paid generally, in  the  locality  in
13    which  the  work  is being performed, to employees engaged in
14    work of a similar character.
15        (d)  "Locality" shall have  the  meaning  established  by
16    rule.
17        (e)  This  Section  does  not apply to services furnished
18    under contracts for professional or artistic services.
19        (f)  This Section does not apply to  vocational  programs
20    of training for physically or mentally handicapped persons or
21    to sheltered workshops for the severely disabled.
22                             ARTICLE 30
23                   CONSTRUCTION AND CONSTRUCTION-
24                    RELATED PROFESSIONAL SERVICES
25        Section    30-5.     Applicability.    Construction   and
26    construction-related professional services shall be  procured
27    in accordance with this Article.
28        Section  30-10.   Authority.  Construction agencies shall
29    have   the   authority   to    procure    construction    and
30    construction-related professional services.
                            -31-           LRB9003208JMmbam03
 1        Section 30-15.  Method of source selection.
 2        (a)  Competitive  sealed  bidding.  Except as provided in
 3    subsections (b), (c), and (d) and Sections 20-20, 20-25,  and
 4    20-30,  all State construction contracts shall be procured by
 5    competitive sealed bidding in accordance with Section 20-10.
 6        (b)  Other methods.  The Capital Development Board  shall
 7    establish  by  rule  construction  purchases that may be made
 8    without competitive sealed bidding and the  most  competitive
 9    alternate method of source selection that shall be used.
10        (c)  Construction-related   professional  services.   All
11    construction-related professional services contracts shall be
12    awarded  in   accordance   with   the   provisions   of   the
13    Architectural, Engineering, and Land Surveying Qualifications
14    Based  Selection  Act.    "Professional services" means those
15    services within the scope of the  practice  of  architecture,
16    professional    engineering,   structural   engineering,   or
17    registered land surveying, as defined by  the  laws  of  this
18    State.
19        (d)  Correctional     facilities.      Remodeling     and
20    rehabilitation  projects  at  correctional  facilities  under
21    $25,000  funded from the General Revenue Fund are exempt from
22    the  provisions  of  this   Article.    The   Department   of
23    Corrections  may  use  inmate  labor  for  the  remodeling or
24    rehabilitation of correctional facilities on  those  projects
25    under $25,000 funded from the General Revenue Fund.
26        Section    30-20.     Prequalification.     The   Capital
27    Development Board shall promulgate rules for the  development
28    of   prequalified   supplier   lists   for  construction  and
29    construction-related professional services and  the  periodic
30    updating     of     those     lists.      Construction    and
31    construction-related  professional  services  contracts  over
32    $25,000 may be awarded to any qualified suppliers.
                            -32-           LRB9003208JMmbam03
 1        Section 30-25.  Retention of  a  percentage  of  contract
 2    price.   Whenever any contract entered into by a construction
 3    agency   for   the   repair,   remodeling,   renovation,   or
 4    construction of a building or structure, for the construction
 5    or maintenance of a highway, as those terms  are  defined  in
 6    Article   2   of  the  Illinois  Highway  Code,  or  for  the
 7    reclamation of abandoned lands as those terms are defined  in
 8    Article  I of the Abandoned Mined Lands and Water Reclamation
 9    Act provides  for  the  retention  of  a  percentage  of  the
10    contract  price  until final completion and acceptance of the
11    work, upon  the  request  of  the  contractor  and  with  the
12    approval  of  the  construction agency the amount so retained
13    may be deposited under a trust  agreement  with  an  Illinois
14    bank  or financial institution of the contractor's choice and
15    subject to the approval of  the  construction  agency.    The
16    contractor  shall  receive  any  interest  on  the  deposited
17    amount.   Upon  application  by  the  contractor,  the  trust
18    agreement  must  contain,  at  a   minimum,   the   following
19    provisions:
20             (1)  the  amount  to  be  deposited  subject  to the
21        trust;
22             (2)  the terms and conditions of payment in case  of
23        default by the contractor;
24             (3)  the  termination  of  the  trust agreement upon
25        completion of the contract; and
26             (4)  the  contractor  shall   be   responsible   for
27        obtaining the written consent of the bank trustee and for
28        any costs or service fees.
29        The  trust  agreement  may,  at  the  discretion  of  the
30    construction  agency  and  upon  request  of  the contractor,
31    become effective at the time of the first partial payment  in
32    accordance with existing statutes and rules.
33        Section  30-30.   Contracts  in  excess  of $250,000. For
                            -33-           LRB9003208JMmbam03
 1    building  construction  contracts  in  excess  of   $250,000,
 2    separate  specifications shall be prepared for all equipment,
 3    labor, and materials  in  connection  with  the  following  5
 4    subdivisions of the work to be performed:
 5             (1)  plumbing;
 6             (2)  heating,  piping,  refrigeration, and automatic
 7        temperature control systems, including  the  testing  and
 8        balancing of those systems;
 9             (3)  ventilating   and   distribution   systems  for
10        conditioned air, including the testing and  balancing  of
11        those systems;
12             (4)  electric wiring; and
13             (5)  general contract work.
14        The specifications must be so drawn as to permit separate
15    and  independent  bidding  upon each of the 5 subdivisions of
16    work.  All contracts awarded for any part thereof shall award
17    the 5 subdivisions of  work  separately  to  responsible  and
18    reliable  persons,  firms,  or  corporations engaged in these
19    classes of work.  The contracts, at  the  discretion  of  the
20    construction agency, may be assigned to the successful bidder
21    on  the  general contract work or to the successful bidder on
22    the subdivision of work designated by the construction agency
23    before the bidding as the prime subdivision of work, provided
24    that all payments will be made directly  to  the  contractors
25    for  the  5  subdivisions  of  work  upon compliance with the
26    conditions of the contract.  A contract may be let for one or
27    more buildings in any project to the same  contractor.    The
28    specifications   shall  require,  however,  that  unless  the
29    buildings are identical, a separate price shall be  submitted
30    for each building.  The contract may be awarded to the lowest
31    responsible  bidder for each or all of the buildings included
32    in the specifications.
33        Section 30-35.  Expenditure in excess of contract  price.
                            -34-           LRB9003208JMmbam03
 1        (a)  Germaneness.   No  funds  in  excess of the contract
 2    price may be obligated or expended unless the additional work
 3    to be performed or materials to be furnished  is  germane  to
 4    the  original  contract.   Even  if  germane  to the original
 5    contract, no additional expenditures or obligations  may,  in
 6    their total combined amounts, be in excess of the percentages
 7    of  the  original contract amount set forth in subsection (b)
 8    unless they have received the prior written approval  of  the
 9    construction  agency.   In  the  event  that the total of the
10    combined additional expenditures or obligations  exceeds  the
11    percentages  of  the  original  contract  amount set forth in
12    subsection (b), the construction agency shall investigate all
13    the additional expenditures or obligations in excess  of  the
14    original  contract  amount  and  shall  in writing approve or
15    disapprove subsequent expenditures or obligations  and  state
16    in detail the reasons for the approval or disapproval.
17        (b)  Written  determination  required.  When the contract
18    amount is no more than $75,000, the percentage  shall  be  9%
19    (maximum  $6,750).   When  the  contract  amount  is  between
20    $75,001  and  $200,000,  the  percentage  shall  be 7% of the
21    amount above $75,000 plus $6,750, but not  to  exceed  7%  of
22    $200,000  (maximum  $14,000).   When  the  contract amount is
23    between $200,001 and $500,000, the percentage shall be 5%  of
24    the  amount above $200,000 plus $14,000, but not to exceed 5%
25    of $500,000 (maximum $25,000).  When the contract  amount  is
26    in  excess  of  $500,000,  the  percentage shall be 3% of the
27    amount above $500,000 plus $25,000.
28        Section 30-45.  Other Acts.  This Article is  subject  to
29    applicable provisions of the following Acts:
30             (1)  the Prevailing Wage Act;
31             (2)  the Public Construction Bond Act;
32             (3)  the Public Works Employment Discrimination Act;
33             (4)  the Public Works Preference Act;
                            -35-           LRB9003208JMmbam03
 1             (5)  the  Employment  of  Illinois Workers on Public
 2        Works Act;
 3             (6)  the Public Contract Fraud Act; and
 4             (7)  the Illinois Construction Evaluation Act.
 5                             ARTICLE 35
 6                     PROCUREMENT OF PROFESSIONAL
 7                        AND ARTISTIC SERVICES
 8        Section  35-5.   Application.    All   professional   and
 9    artistic  services  shall  be procured in accordance with the
10    provisions of this Article.
11        Section  35-10.   Authority.    Each   State   purchasing
12    officer, under the supervision of his or her respective chief
13    procurement  officer,  has the authority to select, according
14    to  the  provisions  of  this  Article,  his   or   her   own
15    professional and artistic services.
16        Section 35-15.  Prequalification.
17        (a)  The  Director of Central Management Services and the
18    higher education chief procurement officer shall each develop
19    appropriate and  reasonable  prequalification  standards  and
20    categories of professional and artistic services.
21        (b)  The  prequalifications  and categorizations shall be
22    submitted to the Procurement Policy Board and  published  for
23    public  comment  prior  to  their  submission  to  the  Joint
24    Committee on Administrative Rules for approval.
25        (c)  The  Director of Central Management Services and the
26    higher education chief procurement officer  shall  each  also
27    assemble  and  maintain  a comprehensive list of prequalified
28    and categorized businesses and persons.
29        (d)  Prequalification shall not be used to bar or prevent
30    any qualified business or person for bidding or responding to
                            -36-           LRB9003208JMmbam03
 1    invitations for bid or proposal.
 2        Section 35-20.  Uniformity in procurement.
 3        (a)  The Director of Central Management Services and  the
 4    higher   education   chief  procurement  officer  shall  each
 5    develop,  cause  to  be  printed,  and   distribute   uniform
 6    documents for the solicitation, review, and acceptance of all
 7    professional and artistic services.
 8        (b)  All  chief  procurement  officers,  State purchasing
 9    officers, and  their  designees  shall  use  the  appropriate
10    uniform  procedures  and forms specified in this Code for all
11    professional and artistic services.
12        (c)  These forms shall include in detail, in writing,  at
13    least:
14             (1)  a description of the goal to be achieved;
15             (2)  the services to be performed;
16             (3)  the need for the service;
17             (4)  the qualifications that are necessary; and
18             (5)  a plan for post-performance review.
19        Section 35-25. Uniformity in contract.
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 contracting of  professional  and  artistic
24    services.
25        (b)  All  chief  procurement  officers,  State purchasing
26    officers, and  their  designees  shall  use  the  appropriate
27    uniform   contracts   and   forms   in  contracting  for  all
28    professional and artistic services.
29        (c)  These contracts and forms shall include  in  detail,
30    in writing, at least:
31             (1)  the  detail listed in subsection (c) of Section
32        35-20;
                            -37-           LRB9003208JMmbam03
 1             (2)  the duration of the contract, with  a  schedule
 2        of delivery, when applicable;
 3             (3)  the  method  for  charging  and  measuring cost
 4        (hourly, per day, etc.);
 5             (4)  the rate of remuneration; and
 6             (5)  the maximum price.
 7        Section 35-30.  Awards.
 8        (a)  All State contracts for  professional  and  artistic
 9    services,  except  as  provided  in  this  Section,  shall be
10    awarded using the competitive request  for  proposal  process
11    outlined in this Section.
12        (b)  For  each  contract  offered,  the chief procurement
13    officer, State purchasing officer, or  his  or  her  designee
14    shall   use   the  appropriate  standard  solicitation  forms
15    available from the Department of Central Management  Services
16    or the higher education chief procurement officer.
17        (c)  Prepared  forms shall be submitted to the Department
18    of Central Management Services or the higher education  chief
19    procurement    officer,   whichever   is   appropriate,   for
20    publication  in  its  Illinois   Procurement   Bulletin   and
21    circulation to the Department of Central Management Services'
22    or  the  higher education chief procurement officer's list of
23    prequalified vendors.  Notice of the  offer  or  request  for
24    proposal shall appear at least 14 days before the response to
25    the offer is due.
26        (d)  All   interested   respondents  shall  return  their
27    responses to the Department of Central Management Services or
28    the higher education chief procurement officer, whichever  is
29    appropriate,    which   shall  open  and  record  them.   The
30    Department or higher education chief procurement officer then
31    shall forward the responses, together with any information it
32    has available about the qualifications and other  State  work
33    of the respondents.
                            -38-           LRB9003208JMmbam03
 1        (e)  After   evaluation,   ranking,  and  selection,  the
 2    responsible  chief  procurement  officer,  State   purchasing
 3    officer,  or  his or her designee shall notify the Department
 4    of Central Management Services or the higher education  chief
 5    procurement   officer,   whichever  is  appropriate,  of  the
 6    successful respondent and shall forward a copy of the  signed
 7    contract  for  the  Department's  or  higher  education chief
 8    procurement  officer's  file.   The  Department   or   higher
 9    education  chief  procurement officer shall publish the names
10    of the responsible  procurement  decision-maker,  the  agency
11    letting  the  contract, the successful respondent, a contract
12    reference,  and  value  of  the  let  contract  in  the  next
13    appropriate volume of the Illinois Procurement Bulletin.
14        (f)  For all professional  and  artistic  contracts  with
15    annualized value that exceeds $25,000, evaluation and ranking
16    by  price  are  required.   Any  chief procurement officer or
17    State purchasing officer, but not their designees, may select
18    an offeror other than the lowest bidder  by  price.   In  any
19    case,  when  the  contract exceeds the $25,000 threshhold and
20    the lowest bidder is  not  selected,  the  chief  procurement
21    officer   or  the  State  purchasing  officer  shall  forward
22    together with the contract notice of who the low  bidder  was
23    and  a written decision as to why another was selected to the
24    Department of  Central  Management  Services  or  the  higher
25    education    chief    procurement   officer,   whichever   is
26    appropriate.    The  Department  or  higher  education  chief
27    procurement officer shall publish as provided  in  subsection
28    (e)  of  Section 35-30, but shall include notice of the chief
29    procurement officer's or State purchasing  officer's  written
30    decision.
31        (g)  The  Department  of  Central Management Services and
32    higher education chief procurement officer may  each  refine,
33    but  not  contradict,  this Section by promulgating rules for
34    submission to the Procurement Policy Board and  then  to  the
                            -39-           LRB9003208JMmbam03
 1    Joint  Committee  on  Administrative  Rules.   Any refinement
 2    shall be based  on  the  principles  and  procedures  of  the
 3    federal  Architect-Engineer  Selection Law, Public Law 92-582
 4    Brooks Act, and  the  Architectural,  Engineering,  and  Land
 5    Surveying  Qualifications  Based  Selection  Act; except that
 6    pricing shall be an integral part of the selection process.
 7        Section 35-35.  Exceptions.
 8        (a)  Exceptions to Section 35-30  are  allowed  for  sole
 9    source  procurements,  emergency  procurements,  and  at  the
10    discretion  of  the  chief  procurement  officer or the State
11    purchasing officer, but not their designees, for professional
12    and artistic contracts that are  nonrenewable,  one  year  or
13    less in duration, and have a value of less than $20,000.
14        (b)  All exceptions granted under this Article must still
15    be submitted to the Department of Central Management Services
16    or  the higher education chief procurement officer, whichever
17    is appropriate, and published as provided for  in  subsection
18    (f)  of  Section  35-30,  shall  name  the  authorizing chief
19    procurement officer or State purchasing  officer,  and  shall
20    include a brief explanation of the reason for the exception.
21        Section 35-40. Subcontractors.
22        (a)  Any  contract granted under this Article shall state
23    whether the services of a subcontractor will  be  used.   The
24    contract  shall  include  the  names  and  addresses  of  all
25    subcontractors  and  the  expected  amount of money each will
26    receive under the contract.
27        (b)  If at any time during the  term  of  a  contract,  a
28    contractor  adds  or  changes  any  subcontractors, he or she
29    shall promptly notify, in writing, the Department of  Central
30    Management Services or the higher education chief procurement
31    officer,  whichever is appropriate, and the responsible chief
32    procurement  officer,  State  purchasing  officer,  or  their
                            -40-           LRB9003208JMmbam03
 1    designee of the names and addresses and the  expected  amount
 2    of money each new or replaced subcontractor will receive.
 3                             ARTICLE 40
 4            REAL PROPERTY AND CAPITAL IMPROVEMENT LEASES
 5        Section   40-5.   Applicability.   All  leases  for  real
 6    property  or  capital  improvements,  including  office   and
 7    storage  space,  buildings,  and  other  facilities for State
 8    agencies, shall be procured in accordance with the provisions
 9    of this Article.
10        Section 40-10.   Authority.   State  purchasing  officers
11    shall  have the authority to procure leases for real property
12    or capital improvements.
13        Section 40-15.  Method of source selection.
14        (a)  Request for  information.   Except  as  provided  in
15    subsections  (b)  and  (c), all State contracts for leases of
16    real property or capital improvements shall be awarded  by  a
17    request  for  information  process in accordance with Section
18    40-20.
19        (b)  Other methods.  A request  for  information  process
20    need not be used in procuring any of the following leases:
21             (1)  Property of less than 10,000 square feet.
22             (2)  Rent of less than $100,000 per year.
23             (3)  Duration  of  less than one year that cannot be
24        renewed.
25             (4)  Specialized  space  available   at   only   one
26        location.
27             (5)  renewal  or  extension  of  a  lease  in effect
28        before  July  1,  1998;  provided  that:  (i)  the  chief
29        procurement  officer  determines  in  writing  that   the
30        renewal  or  extension  is  in  the  best interest of the
                            -41-           LRB9003208JMmbam03
 1        State; (ii) the chief procurement officer submits his  or
 2        her written determination and the renewal or extension to
 3        the  Board; (iii) the Board does not object in writing to
 4        the  renewal  or  extension  within  30  days  after  its
 5        submission;  and  (iv)  the  chief  procurement   officer
 6        publishes  the  renewal  or  extension in the appropriate
 7        volume of the Procurement Bulletin.
 8        (c)  Leases with governmental units.  Leases  with  other
 9    governmental  units  may  be  negotiated  without  using  the
10    request  for  information  process  when  deemed by the chief
11    procurement officer to be in the best interest of the State.
12        Section 40-20.  Request for information.
13        (a)  Conditions for use.  Leases  shall  be  procured  by
14    request  for  information  except  as  otherwise  provided in
15    Section 40-15.
16        (b)  Form.  A request for information shall be issued and
17    shall include:
18             (1)  the type of property to be leased;
19             (2)  the proposed uses of the property;
20             (3)  the duration of the lease;
21             (4)  the preferred location of the property; and
22             (5)  a  general  description  of  the  configuration
23        desired.
24        (c)  Public notice.  Public notice  of  the  request  for
25    information  for  the  availability of real property to lease
26    shall be published in the appropriate volume of the  Illinois
27    Procurement  Bulletin  at  least  14 days before the date set
28    forth in the request for receipt of responses and shall  also
29    be  published  in  similar  manner  in a newspaper of general
30    circulation in the community or communities where  the  using
31    agency is seeking space.
32        (d)  Response.   The  request  for  information  response
33    shall  consist of written information sufficient to show that
                            -42-           LRB9003208JMmbam03
 1    the respondent can meet minimum criteria  set  forth  in  the
 2    request.    State   purchasing   officers   may   enter  into
 3    discussions with respondents for the  purpose  of  clarifying
 4    State  needs and the information supplied by the respondents.
 5    On the basis of the information supplied and discussions,  if
 6    any,   a  State  purchasing  officer  shall  make  a  written
 7    determination identifying the responses that meet the minimum
 8    criteria  set  forth  in   the   request   for   information.
 9    Negotiations   shall  be  entered  into  with  all  qualified
10    respondents for the purpose of securing a lease  that  is  in
11    the  best  interest  of  the  State.  A written report of the
12    negotiations shall be retained in the lease files  and  shall
13    include  the  reasons  for  the  final selection.  All leases
14    shall be reduced to writing and filed in accordance with  the
15    provisions of Section 20-80.
16        When  the  lowest  response by price is not selected, the
17    State  purchasing  officer  shall  forward   to   the   chief
18    procurement  officer,  along  with  the  lease, notice of the
19    identity of  the  lowest  respondent  by  price  and  written
20    reasons for the selection of a different response.  The chief
21    procurement  officer shall publish the written reasons in the
22    next volume of the Illinois Procurement Bulletin.
23        Section 40-25.  Length of leases.
24        (a)  Maximum term.  Leases shall be for  a  term  not  to
25    exceed  10  years  and  shall include a termination option in
26    favor of the State after 5 years.
27        (b)  Renewal.  Leases may include a renewal  option.   An
28    option to renew may be exercised only when a State purchasing
29    officer  determines  in  writing  that renewal is in the best
30    interest of the State and  notice  of  the  exercise  of  the
31    option   is  published  in  the  appropriate  volume  of  the
32    Procurement Bulletin at least 60 days prior to  the  exercise
33    of the option.
                            -43-           LRB9003208JMmbam03
 1        (c)  Subject  to  appropriation.  All leases shall recite
 2    that they are subject to termination and cancellation in  any
 3    year  for  which  the  General  Assembly  fails  to  make  an
 4    appropriation to make payments under the terms of the lease.
 5        Section  40-30.   Purchase option.  Initial leases of all
 6    space in entire, free-standing  buildings  shall  include  an
 7    option  to  purchase  exerciseable  by  the State, unless the
 8    purchasing officer determines that inclusion of such purchase
 9    option is not in the State's best  interest  and  makes  that
10    determination  in  writing  along with the reasons for making
11    that determination and publishes the written determination in
12    the appropriate volume of the Procurement Bulletin.    Leases
13    from  governmental  units  and  not-for-profit  entities  are
14    exempt from the requirements of this Section.
15        Section  40-35.   Rent  without  occupancy.   Except when
16    deemed by the Board to be in the best interest of the  State,
17    no State agency may incur rental obligations before occupying
18    the space rented.
19        Section 40-40.  Local site preferences.  Upon the request
20    of the chief executive officer of a unit of local government,
21    leasing   preferences  may  be  given  to  sites  located  in
22    enterprise zones, tax increment districts,  or  redevelopment
23    districts.
24                             ARTICLE 45
25                             PREFERENCES
26        Section   45-5.   Procurement  preferences.   To  promote
27    business   and   employment   opportunities   in    Illinois,
28    procurement   preferences   are   established  and  shall  be
29    applicable to any procurement made under this Code.
                            -44-           LRB9003208JMmbam03
 1        Section 45-10.  Resident bidders.
 2        (a)  Amount of preference.  When  a  contract  is  to  be
 3    awarded  to  the lowest responsible bidder, a resident bidder
 4    shall be allowed  a  preference  as  against  a  non-resident
 5    bidder  from any state that gives or requires a preference to
 6    bidders from that state.  The preference shall  be  equal  to
 7    the  preference  given  or  required  by  the  state  of  the
 8    non-resident  bidder.   Further, if only non-resident bidders
 9    are bidding, the purchasing agency is  within  its  right  to
10    specify  that  Illinois  labor and manufacturing locations be
11    used as a part of the manufacturing process,  if  applicable.
12    This   specification   may  be  negotiated  as  part  of  the
13    solicitation process.
14        (b)  Residency.  A resident bidder is a person authorized
15    to transact business in this State and  having  a  bona  fide
16    establishment  for  transacting  business  within  this State
17    where it was actually transacting business on the  date  when
18    any  bid  for  a  public  contract  is  first  advertised  or
19    announced.   A resident bidder includes a foreign corporation
20    duly authorized to transact business in this State that has a
21    bona fide establishment for transacting business within  this
22    State  where it was actually transacting business on the date
23    when any bid for a public contract  is  first  advertised  or
24    announced.
25        (c)  Federal  funds.   This Section does not apply to any
26    contract for any  project  as  to  which  federal  funds  are
27    available  for  expenditure  when  its  provisions  may be in
28    conflict with federal law or federal regulation.
29        Section  45-15.   Soybean   oil-based   ink.    Contracts
30    requiring  the procurement of printing services shall specify
31    the use of soybean oil-based ink unless  a  State  purchasing
32    officer  determines  that  another type of ink is required to
33    assure high quality and reasonable  pricing  of  the  printed
                            -45-           LRB9003208JMmbam03
 1    product.
 2        Section   45-20.   Recycled  materials.   When  a  public
 3    contract is to be awarded to the lowest  responsible  bidder,
 4    an  otherwise  qualified bidder who will fulfill the contract
 5    through the use of products made of recycled  materials  may,
 6    on  a  pilot  basis  or  in accordance with a pilot study, be
 7    given preference over other bidders unable to do so, provided
 8    that the cost  included  in  the  bid  of  products  made  of
 9    recycled materials is not more than 10% greater than the cost
10    of products not made of recycled materials.
11        Section  45-25.   Recyclable  paper.  All paper purchased
12    for use by State agencies must  be  recyclable  paper  unless
13    recyclable  paper  cannot be used to meet the requirements of
14    the State agencies.  State  agencies  shall  determine  their
15    paper  requirements  to  allow  the  use  of recyclable paper
16    whenever possible, including without limitation  using  plain
17    paper rather than colored paper that is not recyclable.
18        Section 45-30.  Correctional industries.  Notwithstanding
19    anything  to the contrary in other law, the chief procurement
20    officer  shall,  in  consultation  with  the  Department   of
21    Corrections,  determine  which  articles, materials, industry
22    related services, food stuffs, and supplies that are produced
23    or manufactured  by  persons  confined  in  institutions  and
24    facilities  of  the  Department of Corrections shall be given
25    preference by purchasing agencies procuring those items.  The
26    chief procurement officer shall develop and distribute to the
27    various   purchasing   and   using  agencies  procedures  for
28    implementing this Section.
29        Section 45-35.   Sheltered  workshops  for  the  severely
30    handicapped.
                            -46-           LRB9003208JMmbam03
 1        (a)  Qualification.    Supplies   and   services  may  be
 2    procured without advertising or calling  for  bids  from  any
 3    qualified  not-for-profit agency for the severely handicapped
 4    that:
 5             (1)  complies with Illinois laws  governing  private
 6        not-for-profit organizations;
 7             (2)  is  certified  as  a  sheltered workshop by the
 8        Wage and Hour Division of the United States Department of
 9        Labor; and
10             (3)  meets the Illinois Department of Human Services
11        just standards for rehabilitation facilities.
12        (b)  Participation.  To participate,  the  not-for-profit
13    agency  must  have  indicated  an  interest  in providing the
14    supplies and services, must meet the specifications and needs
15    of the using agency, and must set a fair market price.
16        (c)  Committee.  There is created within  the  Department
17    of  Central Management Services a committee to facilitate the
18    purchase of products and  services  of  persons  so  severely
19    handicapped  by  a  physical  or  mental disability that they
20    cannot  engage  in  normal   competitive   employment.    The
21    committee  shall consist of the Director of the Department of
22    Central Management Services, the Director of  the  Department
23    of   Human  Services,  and  2  representatives  from  private
24    business and 2 public members all appointed by  the  Governor
25    who   are   knowledgeable   in  the  needs  and  concerns  of
26    rehabilitation facilities in Illinois.   The  public  members
27    shall  serve  2  year  terms, commencing upon appointment and
28    every  2  years  thereafter.    A  public   member   may   be
29    reappointed,  and  vacancies may be filled by appointment for
30    the completion of the term.  The members shall serve  without
31    compensation  but  shall be reimbursed for expenses at a rate
32    equal to that of State employees on a per diem basis  by  the
33    Department of Central Management Services.  All members shall
34    be entitled to vote on issues before the committee.
                            -47-           LRB9003208JMmbam03
 1        The committee shall have the following powers and duties:
 2             (1)  To request from any State agency information as
 3        to  product  specification  and  service  requirements in
 4        order to carry out its purpose.
 5             (2)  To meet quarterly or more often as necessary to
 6        carry out its purposes.
 7             (3)  To  request  a  quarterly  report   from   each
 8        participating  qualified  not-for-profit  agency  for the
 9        severely handicapped describing the volume of  sales  for
10        each product or service sold under this Section.
11             (4)  To prepare a report for the Governor annually.
12             (5)  To   prepare   a  publication  that  lists  all
13        supplies  and  services  currently  available  from   any
14        qualified   not-for-profit   agency   for   the  severely
15        handicapped.   This  list  and  any  revisions  shall  be
16        distributed to all purchasing agencies.
17             (6)  To encourage diversity in supplies and services
18        provided by qualified  not-for-profit  agencies  for  the
19        severely    handicapped    and   discourage   unnecessary
20        duplication or competition among facilities.
21             (7)  To  develop  guidelines  to  be   followed   by
22        qualifying   agencies   for   participation   under   the
23        provisions  of  this  Section.   The  guidelines shall be
24        developed within 6 months after  the  effective  date  of
25        this Code and made available on a nondiscriminatory basis
26        to all qualifying agencies.
27             (8)  To   review   all   bids  submitted  under  the
28        provisions of this Section and reject  any  bid  for  any
29        purchase that is determined to be substantially more than
30        the  purchase  would  have cost had it been competitively
31        bid.
32        (d)  Former  committee.   The  committee  created   under
33    subsection  (c)  shall  replace  the  committee created under
34    Section 7-2 of  the  Illinois  Purchasing  Act,  which  shall
                            -48-           LRB9003208JMmbam03
 1    continue  to  operate until the appointments under subsection
 2    (c) are made.
 3        Section 45-40.  Gas mileage.
 4        (a)  Specification.  Contracts for the purchase or  lease
 5    of  new  passenger  automobiles,  other  than station wagons,
 6    vans, four-wheel  drive  vehicles,  emergency  vehicles,  and
 7    police  and fire vehicles, shall specify the procurement of a
 8    model that, according  to  the  most  current  mileage  study
 9    published  by  the  U.S. Environmental Protection Agency, can
10    achieve at least the minimum average fuel  economy  in  miles
11    per gallon imposed upon manufacturers of vehicles under Title
12    V of The Motor Vehicle Information and Cost Savings Act.
13        (b)  Exemptions.  The State purchasing officer may exempt
14    procurements  from  the  requirement  of  subsection (a) when
15    there is a demonstrated need, submitted in  writing,  for  an
16    automobile  that  does  not  meet  the  minimum  average fuel
17    economy  standards.   The  chief  procurement  officer  shall
18    promulgate rules for determining  need  consistent  with  the
19    intent of this Section.
20        Section 45-45.  Small businesses.
21        (a)  Set-asides.    The  chief  procurement  officer  has
22    authority to designate as small business  set-asides  a  fair
23    proportion of construction, supply, and service contracts for
24    award  to  small  businesses in Illinois.  Advertisements for
25    bids or offers for those contracts shall specify  designation
26    as  small  business  set-asides.   In awarding the contracts,
27    only bids or offers from qualified small businesses shall  be
28    considered.
29        (b)  Small  business.   "Small business" means a business
30    that is independently owned and  operated  and  that  is  not
31    dominant  in  its  field of operation.  The chief procurement
32    officer shall establish a detailed definition by rule,  using
                            -49-           LRB9003208JMmbam03
 1    in   addition  to  the  foregoing  criteria  other  criteria,
 2    including the number of employees and the  dollar  volume  of
 3    business.  When computing the size status of a bidder, annual
 4    sales  and  receipts  of the bidder and all of its affiliates
 5    shall be included.  The maximum number of employees  and  the
 6    maximum  dollar  volume  that a small business may have under
 7    the rules promulgated by the chief  procurement  officer  may
 8    vary  from  industry  to  industry to the extent necessary to
 9    reflect  differing  characteristics  of   those   industries,
10    subject to the following limitations:
11             (1)  No  wholesale  business  is a small business if
12        its annual sales for its most recently  completed  fiscal
13        year exceed $7,500,000.
14             (2)  No retail business or business selling services
15        is  a  small  business  if  its annual sales and receipts
16        exceed $1,500,000.
17             (3)  No manufacturing business is a  small  business
18        if it employs more than 250 persons.
19             (4)  No construction business is a small business if
20        its annual sales and receipts exceed $3,000,000.
21        (c)  Fair proportion.  For the purpose of subsection (a),
22    for State agencies of the executive branch, a fair proportion
23    of  construction contracts shall be no less than 25% nor more
24    than 40% of the annual total contracts for construction.
25        (d)  Withdrawal  of  designation.    A   small   business
26    set-aside  designation  may  be  withdrawn  by the purchasing
27    agency when deemed in the best interests of the State.   Upon
28    withdrawal,  all  bids  or  offers shall be rejected, and the
29    bidders or offerors shall  be  notified  of  the  reason  for
30    rejection.   The contract shall then be awarded in accordance
31    with this Code without  the  designation  of  small  business
32    set-aside.
33        (e)  Small  business  specialist.   The chief procurement
34    officer shall designate a State purchasing officer  who  will
                            -50-           LRB9003208JMmbam03
 1    be   responsible   for   engaging   an  experienced  contract
 2    negotiator to serve as its small business  specialist,  whose
 3    duties shall include:
 4             (1)  Compiling   and   maintaining  a  comprehensive
 5        bidders list of small businesses.  In this  duty,  he  or
 6        she  shall  cooperate  with  the  Federal  Small Business
 7        Administration in locating potential sources for  various
 8        products and services.
 9             (2)  Assisting  small  businesses  in complying with
10        the procedures for bidding on State contracts.
11             (3)  Examining requests from State agencies for  the
12        purchase  of property or services to help determine which
13        invitations to bid are to be  designated  small  business
14        set-asides.
15             (4)  Making recommendations to the chief procurement
16        officer  for  the  simplification  of  specifications and
17        terms in order to increase the  opportunities  for  small
18        business participation.
19             (5)  Assisting   in   investigations  by  purchasing
20        agencies to determine the responsibility  of  bidders  on
21        small business set-asides.
22        (f)  Small  business annual report.  The State purchasing
23    officer designated under subsection (e) shall annually before
24    December  1  report  in  writing  to  the  General   Assembly
25    concerning  the  awarding  of  contracts to small businesses.
26    The report shall include the total value of  awards  made  in
27    the  preceding  fiscal  year  under  the designation of small
28    business set-aside.
29        The requirement for reporting  to  the  General  Assembly
30    shall be satisfied by filing copies of the report as required
31    by Section 3.1 of the General Assembly Organization Act.
32        Section   45-50.   Illinois  agricultural  products.   In
33    awarding contracts requiring the procurement of  agricultural
                            -51-           LRB9003208JMmbam03
 1    products,  preference  may be given to an otherwise qualified
 2    bidder or offeror who will fulfill the contract  through  the
 3    use of agricultural products grown in Illinois.
 4        Section   45-55.    Corn-based   plastics.   In  awarding
 5    contracts requiring  the  procurement  of  plastic  products,
 6    preference  may  be given to an otherwise qualified bidder or
 7    offeror who will fulfill the  contract  through  the  use  of
 8    plastic products made from Illinois corn by-products.
 9        Section   45-60.    Vehicles   powered   by  agricultural
10    commodity-based fuel.  In awarding  contracts  requiring  the
11    procurement  of  vehicles,  preference  may  be  given  to an
12    otherwise qualified bidder or offeror who  will  fulfill  the
13    contract  through  the  use  of  vehicles  powered by ethanol
14    produced from Illinois corn or biodiesel fuels produced  from
15    Illinois soybeans.
16        Section  45-65.   Additional  preferences.   This Code is
17    subject to applicable provisions of:
18             (1)  the Public Purchases in Other States Act;
19             (2)  the Illinois Mined Coal Act;
20             (3)  the Steel Products Procurement Act;
21             (4)  the Veterans Preference Act; and
22             (5)  the   Business   Enterprise   for   Minorities,
23        Females, and Persons with Disabilities Act.
24                             ARTICLE 50
25                  PROCUREMENT ETHICS AND DISCLOSURE
26        Section 50-1.  Purpose.  It is the express  duty  of  all
27    chief  procurement  officers,  State purchasing officers, and
28    their designees to maximize the value of the  expenditure  of
29    public moneys in procuring goods, services, and contracts for
                            -52-           LRB9003208JMmbam03
 1    the  State  of Illinois and to act in a manner that maintains
 2    the integrity and  public  trust  of  State  government.   In
 3    discharging  this duty, they are charged to use all available
 4    information, reasonable efforts, and  reasonable  actions  to
 5    protect,  safeguard,  and maintain the procurement process of
 6    the State of Illinois.
 7        Section 50-5.  Bribery.
 8        (a)  Prohibition.  No person or business shall be awarded
 9    a contract or subcontract under this Code who:
10             (1)  has been convicted under the laws  of  Illinois
11        or  any other state of bribery  or attempting to bribe an
12        officer or employee of the State of Illinois or any other
13        state in that officer's or employee's official  capacity;
14        or
15             (2)  has  made an admission of guilt of that conduct
16        that is a matter of record but has  not  been  prosecuted
17        for that conduct.
18        (b)  Businesses.    No  business  shall  be  barred  from
19    contracting with any unit of State or local government  as  a
20    result  of a conviction under this Section of any employee or
21    agent of the business if the employee or agent is  no  longer
22    employed by the business and:
23             (1)  the  business  has been finally adjudicated not
24        guilty; or
25             (2)  the business demonstrates to  the  governmental
26        entity  with  which it seeks to contract, and that entity
27        finds  that  the  commission  of  the  offense  was   not
28        authorized,  requested,  commanded,  or  performed  by  a
29        director,  officer, or high managerial agent on behalf of
30        the business as provided in paragraph (2)  of  subsection
31        (a) of Section 5-4 of the Criminal Code of 1961.
32        (c)  Conduct on behalf of business.  For purposes of this
33    Section,  when  an official, agent, or employee of a business
                            -53-           LRB9003208JMmbam03
 1    committed the bribery or attempted bribery on behalf  of  the
 2    business   and   in   accordance   with   the   direction  or
 3    authorization of a responsible official of the business,  the
 4    business shall be chargeable with the conduct.
 5        (d)  Certification.   Every bid submitted to and contract
 6    executed by the State shall contain a  certification  by  the
 7    contractor  that  the  contractor  is  not  barred from being
 8    awarded a contract or  subcontract  under  this  Section.   A
 9    contractor  who  makes  a  false  statement,  material to the
10    certification, commits a Class 3 felony.
11        Section 50-10.  Felons.  Unless  otherwise  provided,  no
12    person  or  business  convicted of a felony shall do business
13    with the State of Illinois or any State agency from the  date
14    of  conviction until 5 years after the date  of completion of
15    the  sentence  for  that  felony,  unless  no   person   held
16    responsible  by  a  prosecutorial  office  for the facts upon
17    which  the  conviction  was  based  continues  to  have   any
18    involvement with the business.
19        Section 50-13.  Conflicts of interest.
20        (a)  Prohibition.   It is unlawful for any person holding
21    an elective office in this  State,  holding  a  seat  in  the
22    General  Assembly,  or appointed to or employed in any of the
23    offices or agencies of  State  government  and  who  receives
24    compensation  for  such  employment  in  excess of 60% of the
25    salary of the Governor of the State of Illinois, or who is an
26    officer or employee of the Capital Development Board  or  the
27    Illinois  Toll  Highway  Authority,  or  who is the spouse or
28    minor child of  any  such  person  to  have  or  acquire  any
29    contract,  or  any  direct pecuniary interest in any contract
30    therein, whether for  stationery,  printing,  paper,  or  any
31    services,  materials,  or  supplies,  that  will be wholly or
32    partially satisfied by the payment of funds  appropriated  by
                            -54-           LRB9003208JMmbam03
 1    the  General  Assembly  of  the  State  of Illinois or in any
 2    contract of the Capital Development  Board  or  the  Illinois
 3    Toll Highway Authority.
 4        (b)  Interests.    It   is   unlawful   for   any   firm,
 5    partnership, association, or corporation, in which any person
 6    listed in subsection (a) is entitled to receive (i) more than
 7    7 1/2% of the total distributable income or (ii) an amount in
 8    excess  of the salary of the Governor, to have or acquire any
 9    such contract or direct pecuniary interest therein.
10        (c)  Combined interests.  It is unlawful  for  any  firm,
11    partnership, association, or corporation, in which any person
12    listed  in  subsection (a) together with his or her spouse or
13    minor children is entitled to receive (i) more than  15%,  in
14    the  aggregate,  of the total distributable income or (ii) an
15    amount in excess of 2 times the salary of  the  Governor,  to
16    have  or  acquire  any  such  contract  or  direct  pecuniary
17    interest therein.
18        (d)  Securities.  Nothing in this Section invalidates the
19    provisions  of  any bond or other security previously offered
20    or to be offered for sale or sold by  or  for  the  State  of
21    Illinois.
22        (e)  Prior  interests.   This Section does not affect the
23    validity of any  contract  made  between  the  State  and  an
24    officer  or  employee  of  the State or member of the General
25    Assembly, his or her spouse, minor child or  any  combination
26    of those persons if that contract was in existence before his
27    or  her  election  or  employment  as  an officer, member, or
28    employee.  The contract is voidable, however, if it cannot be
29    completed within 365  days  after  the  officer,  member,  or
30    employee takes office or is employed.
31        (f)  Exceptions.
32             (1)  Public  aid  payments.   This  Section does not
33        apply to payments made for a public aid recipient.
34             (2)  Teaching.  This Section does  not  apply  to  a
                            -55-           LRB9003208JMmbam03
 1        contract  for  personal  services  as a teacher or school
 2        administrator between a member of the General Assembly or
 3        his or her spouse, or a State officer or employee or  his
 4        or  her spouse, and any school district, public community
 5        college district, the University  of  Illinois,  Southern
 6        Illinois  University,  Illinois State University, Eastern
 7        Illinois  University,   Northern   Illinois   University,
 8        Western  Illinois  University,  Chicago State University,
 9        Governor  State  University,  or  Northeastern   Illinois
10        University.
11             (3)  Ministerial  duties.   This  Section  does  not
12        apply  to  a  contract  for personal services of a wholly
13        ministerial  character,  including  but  not  limited  to
14        services as a laborer, clerk, typist, stenographer, page,
15        bookkeeper,  receptionist,   or   telephone   switchboard
16        operator,  made by a spouse or minor child of an elective
17        or appointive State officer or employee or of a member of
18        the General Assembly.
19             (4)  Child and family services.  This  Section  does
20        not  apply  to  payments  made to a member of the General
21        Assembly, a State officer or employee, his or her  spouse
22        or  minor  child  acting  as  a foster parent, homemaker,
23        advocate, or volunteer for or in behalf  of  a  child  or
24        family  served  by  the Department of Children and Family
25        Services.
26             (5)  Licensed professionals. Contracts with licensed
27        professionals, provided they  are  competitively  bid  or
28        part  of  a reimbursement program for specific, customary
29        goods and services through the Department of Children and
30        Family Services, the Department of  Human  Services,  the
31        Department  of  Public  Aid,  the  Department  of  Public
32        Health, or the Department on Aging.
33        (g)  Penalty.  A  person convicted of a violation of this
34    Section is guilty of a business offense and  shall  be  fined
                            -56-           LRB9003208JMmbam03
 1    not less than $1,000 nor more than $5,000.
 2        Section 50-15.  Negotiations.
 3        (a)  It  is  unlawful  for any person employed in or on a
 4    continual contractual relationship with any of the offices or
 5    agencies of  State  government  to  participate  in  contract
 6    negotiations  on  behalf  of  that  office or agency with any
 7    firm, partnership, association, or corporation with whom that
 8    person has a contract for future employment or is negotiating
 9    concerning possible future employment.
10        (b)  Any person convicted of a violation of this  Section
11    is  guilty  of a business offense and shall be fined not less
12    than $1,000 nor more than $5,000.
13        Section 50-20.  Exemptions.  With  the  approval  of  the
14    appropriate chief procurement officer involved, the Governor,
15    or  an  executive  ethics  board  or  commission  he  or  she
16    designates,   may   exempt   named   individuals   from   the
17    prohibitions  of  Section  50-13  when,  in  his, her, or its
18    judgment, the public interest in having the individual in the
19    service of the State outweighs the public policy evidenced in
20    that Section.  An exemption is  effective  only  when  it  is
21    filed  with  the  Secretary  of State and the Comptroller and
22    includes a statement setting forth the name of the individual
23    and all the pertinent facts  that  would  make  that  Section
24    applicable,  setting  forth the reason for the exemption, and
25    declaring the individual exempted from that Section.   Notice
26    of   each  exemption  shall  be  published  in  the  Illinois
27    Procurement Bulletin.
28        Section 50-25.  Inducement.  Any  person  who  offers  or
29    pays  any  money  or  other  valuable  thing to any person to
30    induce him or her not to bid  for  a  State  contract  or  as
31    recompense  for  not having bid on a State contract is guilty
                            -57-           LRB9003208JMmbam03
 1    of a Class 4 felony. Any person  who  accepts  any  money  or
 2    other  valuable thing for not bidding for a State contract or
 3    who withholds a bid in consideration of the promise  for  the
 4    payment of money or other valuable thing is guilty of a Class
 5    4 felony.
 6        Section   50-30.  Revolving   door   prohibition.   Chief
 7    procurement  officers,  associate procurement officers, State
 8    purchasing officers, their designees whose  principal  duties
 9    are  directly  related  to  State  procurement, and executive
10    officers confirmed by the Senate are expressly prohibited for
11    a period of 2 years after terminating  an  affected  position
12    from  engaging  in  any  procurement activity relating to the
13    State agency most recently  employing  them  in  an  affected
14    position  for a period of at least 6 months.  The prohibition
15    includes but is not  limited  to:  lobbying  the  procurement
16    process;  specifying;  bidding;  proposing  bid, proposal, or
17    contract documents; on their own behalf or on behalf  of  any
18    firm,  partnership, association, or corporation. This Section
19    applies only to persons who terminate an affected position on
20    or after January 15, 1999.
21        Section 50-35.  Disclosure  and  potential  conflicts  of
22    interest.
23        (a)  All  offers from responsive bidders or offerors with
24    an annual value of more than $10,000 shall be accompanied  by
25    disclosure  of  the  financial  interests  of the contractor,
26    bidder,  or  proposer.  The  financial  disclosure  of   each
27    successful  bidder  or  offeror  shall  become  part  of  the
28    publicly available contract or procurement file maintained by
29    the appropriate chief procurement officer.
30        (b)  Disclosure  by  the  responsive  bidders or offerors
31    shall include any ownership or distributive income share that
32    is in excess of 5%, or an amount  greater  than  60%  of  the
                            -58-           LRB9003208JMmbam03
 1    annual  salary  of the Governor, of the bidding entity or its
 2    parent entity, whichever is less, unless  the  contractor  or
 3    bidder  is  a  publicly  traded entity subject to Federal 10K
 4    reporting, in which case it may submit its 10K disclosure  in
 5    place  of  the prescribed disclosure.  The form of disclosure
 6    shall be  prescribed  by  the  applicable  chief  procurement
 7    officer  and  must include at least the names, addresses, and
 8    dollar or proportionate share of  ownership  of  each  person
 9    identified  in this Section, their instrument of ownership or
10    beneficial relationship, and notice of any potential conflict
11    of  interest  resulting  from  the   current   ownership   or
12    beneficial  relationship  of  each  person identified in this
13    Section   having   in   addition   any   of   the   following
14    relationships:
15             (1)  State employment, currently or in the  previous
16        3 years, including contractual employment of services.
17             (2)  State  employment  of  spouse,  father, mother,
18        son, or daughter, including  contractual  employment  for
19        services in the previous 2 years.
20             (3)  Elective status; the holding of elective office
21        of  the  State  of Illinois, the government of the United
22        States, any unit of local government  authorized  by  the
23        Constitution  of the State of Illinois or the statutes of
24        the State of Illinois currently  or  in  the  previous  3
25        years.
26             (4)  Relationship  to anyone holding elective office
27        currently or in the previous  2  years;  spouse,  father,
28        mother, son, or daughter.
29             (5)  Appointive   office;   the   holding   of   any
30        appointive  government  office  of the State of Illinois,
31        the United States  of  America,  or  any  unit  of  local
32        government authorized by the Constitution of the State of
33        Illinois  or the statutes of the State of Illinois, which
34        office entitles the holder to compensation in  excess  of
                            -59-           LRB9003208JMmbam03
 1        expenses   incurred  in  the  discharge  of  that  office
 2        currently or in the previous 3 years.
 3             (6)  Relationship  to  anyone   holding   appointive
 4        office  currently  or  in  the  previous 2 years; spouse,
 5        father, mother, son, or daughter.
 6             (7)  Employment, currently  or  in  the  previous  3
 7        years,  as  or  by  any  registered lobbyist of the State
 8        government.
 9             (8)  Relationship  to  anyone  who  is  or   was   a
10        registered  lobbyist  in  the  previous  2 years; spouse,
11        father, mother, son, or daughter.
12             (9)  Compensated employment,  currently  or  in  the
13        previous   3   years,   by  any  registered  election  or
14        re-election committee registered with  the  Secretary  of
15        State  or  any  county clerk in the State of Illinois, or
16        any political action committee registered with either the
17        Secretary of State or the Federal Board of Elections.
18             (10)  Relationship  to   anyone;   spouse,   father,
19        mother,  son,  or  daughter;  who is or was a compensated
20        employee in the last 2 years of any  registered  election
21        or re-election committee registered with the Secretary of
22        State  or  any  county clerk in the State of Illinois, or
23        any political action committee registered with either the
24        Secretary of State or the Federal Board of Elections.
25        (c)  The disclosure in subsection (b) is not intended  to
26    prohibit or prevent any contract.  The disclosure is meant to
27    fully  and  publicly  disclose  any potential conflict to the
28    chief procurement officers, State purchasing officers,  their
29    designees,  and  executive  officers  so  they may adequately
30    discharge their duty to protect the State.
31        (d)  In the case of any contract for personal services in
32    excess of $50,000; any contract competitively bid  in  excess
33    of  $250,000; any other contract in excess of $50,000; when a
34    potential  for  a  conflict  of   interest   is   identified,
                            -60-           LRB9003208JMmbam03
 1    discovered,  or reasonably suspected it shall be reviewed and
 2    commented on in writing by  the  Governor  of  the  State  of
 3    Illinois, or by an executive ethics board or commission he or
 4    she  might  designate.   The comment shall be returned to the
 5    responsible  chief  procurement  officer  who  must  rule  in
 6    writing whether to void or allow the contract, bid, offer, or
 7    proposal weighing the best interest of the State of Illinois.
 8    The  comment  and  determination  shall  become  a   publicly
 9    available part of the contract, bid, or proposal file.
10        (e)  These  threshholds and disclosure do not relieve the
11    chief procurement officer, the State purchasing  officer,  or
12    their  designees  from  reasonable care and diligence for any
13    contract, bid, offer, or  proposal.   The  chief  procurement
14    officer,  the  State  purchasing  officer, or their designees
15    shall be responsible  for  using  any  reasonably  known  and
16    publicly  available  information  to discover any undisclosed
17    potential conflict of interest and act to  protect  the  best
18    interest of the State of Illinois.
19        (f)  Inadvertent  or accidental failure to fully disclose
20    shall render the contract,  bid,  proposal,  or  relationship
21    voidable  by the chief procurement officer if he or she deems
22    it in the best interest of the State of Illinois and, at  his
23    or  her  discretion,  may  be  cause  for barring from future
24    contracts, bids, proposals, or relationships with  the  State
25    for a period of up to 2 years.
26        (g)  Intentional,   willful,   or   material  failure  to
27    disclose  shall  render  the  contract,  bid,  proposal,   or
28    relationship  voidable by the chief procurement officer if he
29    or she deems it in the best interest of the State of Illinois
30    and shall result in debarment from  future  contracts,  bids,
31    proposals,  or  relationships for a period of not less than 2
32    years and not more than  10  years.   Reinstatement  after  2
33    years  and  before 10 years must be reviewed and commented on
34    in writing by the Governor of the State of Illinois, or by an
                            -61-           LRB9003208JMmbam03
 1    executive  ethics  board  or  commission  he  or  she   might
 2    designate.   The comment shall be returned to the responsible
 3    chief procurement officer who must rule  in  writing  whether
 4    and when to reinstate.
 5        (h)  In  addition,  all  disclosures shall note any other
 6    current or pending contracts,  proposals,  leases,  or  other
 7    ongoing  procurement relationships the bidding, proposing, or
 8    offering entity has with any other unit of  State  government
 9    and  shall  clearly  identify  the  unit  and  the  contract,
10    proposal, lease, or other relationship.
11        Section   50-40.   Reporting  anticompetitive  practices.
12    When, for any reason, any vendor, bidder,  contractor,  chief
13    procurement  officer,  State  purchasing  officer,  designee,
14    elected  official,  or  State  employee suspects collusion or
15    other anticompetitive practice among any  bidders,  offerors,
16    contractors,  proposers,  or employees of the State, a notice
17    of the relevant facts shall be transmitted  to  the  Attorney
18    General and the chief procurement officer.
19        Section  50-45.   Confidentiality.  Any chief procurement
20    officer, State purchasing  officer,  designee,  or  executive
21    officer   who   willfully   uses   or   allows   the  use  of
22    specifications,  competitive   bid   documents,   proprietary
23    competitive  information,  proposals, contracts, or selection
24    information to compromise the fairness or  integrity  of  the
25    procurement, bidding, or contract process shall be subject to
26    immediate  dismissal,  regardless  of the Personnel Code, any
27    contract, or any collective bargaining agreement, and may  in
28    addition be subject to criminal prosecution.
29        Section  50-50.  Insider information.  It is unlawful for
30    any current or former elected or appointed State official  or
31    State  employee  to  knowingly  use  confidential information
                            -62-           LRB9003208JMmbam03
 1    available only by virtue of that  office  or  employment  for
 2    actual or anticipated gain for themselves or another person.
 3        Section  50-55.   Supply  inventory.   Every State agency
 4    shall inventory or stock no more  than  a  12-month  need  of
 5    equipment,  supplies, commodities, articles, and other items,
 6    except  as  otherwise  authorized  by  the   State   agency's
 7    regulations.   Every  State  agency shall periodically review
 8    its inventory to ensure compliance with  this  Section.   If,
 9    upon review, an agency determines it has more than a 12-month
10    supply  of  any  equipment,  supplies,  commodities, or other
11    items,  the  agency  shall   undertake   transfers   of   the
12    oversupplied  items  or  other  action  necessary to maintain
13    compliance with this Section.  This Section shall  not  apply
14    to  lifesaving medications, mechanical spare parts, and items
15    for which the supplier requires a minimum order stipulation.
16        Section 50-60.  Voidable contracts.  If any  contract  is
17    entered  into  or purchase or expenditure of funds is made in
18    violation of this Code or any other law, the contract may  be
19    declared  void  by  the  chief  procurement officer or may be
20    ratified and affirmed, provided the chief procurement officer
21    determines that ratification is in the best interests of  the
22    State.  If the contract is ratified and affirmed, it shall be
23    without  prejudice  to  the State's rights to any appropriate
24    damages.
25        Section 50-65.  Contractor  suspension.   Any  contractor
26    may be suspended for violation of this Code or for failure to
27    conform  to  specifications or terms of delivery.  Suspension
28    shall be for cause and may be for a period of up to  5  years
29    at   the  discretion  of  the  applicable  chief  procurement
30    officer. Contractors may be debarred in accordance with rules
31    promulgated by the chief procurement officer or as  otherwise
                            -63-           LRB9003208JMmbam03
 1    provided by law.
 2        Section  50-70.   Additional  provisions.   This  Code is
 3    subject to applicable provisions of the following Acts:
 4             (1)  Article 33E of the Criminal Code of 1961;
 5             (2)  the Illinois Human Rights Act;
 6             (3)  the Discriminatory Club Act;
 7             (4)  the Illinois Governmental Ethics Act;
 8             (5)  the State Prompt Payment Act;
 9             (6)  the Public Officer Prohibited  Activities  Act;
10        and
11             (7)  the Drug Free Workplace Act.
12        Section 50-75.  Other violations.
13        (a)  Any  chief  procurement  officer,  State  purchasing
14    officer,  or  designee  who  willfully violates or allows the
15    violation  of  this  Code  shall  be  subject  to   immediate
16    dismissal, regardless of the Personnel Code, any contract, or
17    any collective bargaining agreement.
18        (b)  Except  as  otherwise provided in this Code, whoever
19    violates this Code or  the  rules  promulgated  under  it  is
20    guilty of a Class A misdemeanor.
21                             ARTICLE 53
22                             CONCESSIONS
23        Section 53-10.  Concessions and leases of State property.
24        (a)  Except  for  property  under  the  jurisdiction of a
25    public  institution   of   higher   education,   concessions,
26    including  the  assignment,  license,  sale,  or  transfer of
27    interests in or rights to discoveries,  inventions,  patents,
28    or  copyrightable  works,  may  be  entered into by the State
29    agency with jurisdiction over the property, whether  tangible
30    or intangible.
                            -64-           LRB9003208JMmbam03
 1        (b)  Except  for  property  under  the  jurisdiction of a
 2    public institution of higher education, all concessions shall
 3    be  reduced  to  writing  and  shall  be  awarded  under  the
 4    provisions of Article 20, except that the contract  shall  be
 5    awarded to the highest and best bidder or offeror.
 6        Section  53-20.  Contract duration and terms.  Except for
 7    property under the jurisdiction of a  public  institution  of
 8    higher  education,  the duration and terms of concessions and
 9    leases of State property shall be  in  accordance  with  this
10    Code or other applicable law.
11        Section  53-25.  Public institutions of higher education.
12    Each public institution of higher education  may  enter  into
13    concessions,  including  the  assignment,  license,  sale, or
14    transfer  of  interests  in   or   rights   to   discoveries,
15    inventions,  patents,  or  copyrightable works, for property,
16    whether  tangible  or   intangible,   over   which   it   has
17    jurisdiction.   Concessions  shall be reduced  to writing and
18    shall be awarded at the discretion of  the  institution  with
19    jurisdiction  over  the  property.  The duration and terms of
20    concessions and leases shall be  at  the  discretion  of  the
21    institution  with  jurisdiction over the property.  Notice of
22    the award of a concession shall be published  in  the  higher
23    education volume of the Illinois Procurement Bulletin.
24                             ARTICLE 55
25                      MISCELLANEOUS PROVISIONS
26        Section  55-5.  References to repealed provisions.  After
27    the effective  date  of  this  Act,  all  references  to  the
28    provisions  of  law repealed by this Act  shall be construed,
29    where  necessary  and  appropriate,  as  references  to   the
30    Illinois Procurement Code.
                            -65-           LRB9003208JMmbam03
 1        Section  55-10.   Exclusive  exercise  of powers.  On and
 2    after 120 days following the effective date of this Act,  the
 3    powers granted under this Code shall be exercised exclusively
 4    as   granted  under  this  Code,  and  no  State  agency  may
 5    concurrently exercise any  such  power,  unless  specifically
 6    authorized  otherwise  by  a later enacted law.  This Code is
 7    not intended to impair any contract entered into  before  the
 8    effective date of this Act.
 9        Section  55-15.   Severability.  If any provision of this
10    Code or any application of it to any person  or  circumstance
11    is  held  invalid,  that  invalidity  shall  not affect other
12    provisions or applications of this Code  that  can  be  given
13    effect  without  the invalid provision or application, and to
14    this end the provisions of  this  Code  are  declared  to  be
15    severable.
16                             ARTICLE 95
17                 AMENDATORY AND REPEALING PROVISIONS
18        Section  95-5.   The Governmental Joint Purchasing Act is
19    amended by changing Section 3 as follows:
20        (30 ILCS 525/3) (from Ch. 85, par. 1603)
21        Sec. 3.  Any agreement of the  governmental  units  which
22    desire to make joint purchases, one of the governmental units
23    shall  conduct  the  letting  of  bids.  Where  the  State of
24    Illinois is a party to  the  joint  purchase  agreement,  the
25    Department  of  Central Management Services shall conduct the
26    letting of bids. Expenses of such bid-letting may  be  shared
27    by  the participating governmental units in proportion to the
28    amount of personal property, supplies or services  each  unit
29    purchases.
30        When  the  State  of  Illinois  is  a  party to the joint
                            -66-           LRB9003208JMmbam03
 1    purchase agreement,  the  acceptance  of  bids  shall  be  in
 2    accordance  with  the  Illinois  Procurement  Code  and rules
 3    promulgated under that Code.  When the State of  Illinois  is
 4    not  a  party to the joint purchase agreement, the acceptance
 5    of bids shall be governed by the agreement.
 6        The personal  property,  supplies  or  services  involved
 7    shall   be   distributed   or   rendered   directly  to  each
 8    governmental unit taking part in  the  purchase.  The  person
 9    selling  the personal property, supplies or services may bill
10    each governmental unit separately for its proportionate share
11    of the cost of the personal property,  supplies  or  services
12    purchased.
13        The  credit  or liability of each governmental unit shall
14    remain separate and distinct. Disputes  between  bidders  and
15    governmental  units  shall  be resolved between the immediate
16    parties.
17    (Source: P.A. 87-860.)
18        (15 ILCS 405/11 rep.)
19        (15 ILCS 405/15 rep.)
20        Section 95-10.  The State Comptroller Act is  amended  by
21    repealing Sections 11 and 15.
22        (20 ILCS 5/29 rep.)
23        (20 ILCS 5/30 rep.)
24        (20 ILCS 405/35.7b rep.)
25        (20 ILCS 405/67.01 rep.)
26        (20 ILCS 405/67.04 rep.)
27        Section 95-15.  The Civil Administrative Code of Illinois
28    is  amended  by  repealing Sections 29, 30, 35.7b, 67.01, and
29    67.04.
30        Section 95-17.  The Personnel Code is amended  by  adding
31    Section 25 as follows:
                            -67-           LRB9003208JMmbam03
 1        (20 ILCS 415/25 new)
 2        Sec.  25.   Illinois  Procurement  Code.   This  Code  is
 3    subject  to  the  disciplinary  and penalty provisions of the
 4    Illinois Procurement Code.
 5        (20 ILCS 1015/13 rep.)
 6        Section 95-20.   The  Public  Employment  Office  Act  is
 7    amended by repealing Section 13.
 8        Section  95-22.   The  General Assembly Operations Act is
 9    amended by adding Section 10 as follows:
10        (25 ILCS 10/10 new)
11        Sec. 10.  General Assembly printing; session laws.
12        (a)  Authority.  Public printing for the  use  of  either
13    House  of  the  General  Assembly  shall  be  subject  to its
14    control.
15        (b)  Time of delivery.  Daily  calendars,  journals,  and
16    other  similar  printing  for  which  manuscript  or  copy is
17    delivered to the Legislative Printing Unit  by  the  clerical
18    officer  of  either  House  shall  be printed so as to permit
19    delivery at any reasonable  time  required  by  the  clerical
20    officer.   Any  petition, bill, resolution, joint resolution,
21    memorial, and similar manuscript or  copy  delivered  to  the
22    Legislative  Printing  Unit by the clerical officer of either
23    House shall be printed at any  reasonable  time  required  by
24    that officer.
25        (c)  Style.    The   manner,   form,   style,  size,  and
26    arrangement of type used in printing the bills,  resolutions,
27    amendments, conference reports, and journals, including daily
28    journals, of the General Assembly shall be as provided in the
29    Rules of the General Assembly.
30        (d)  Daily   journal.    The   Clerk   of  the  House  of
31    Representatives and the Secretary of the  Senate  shall  each
                            -68-           LRB9003208JMmbam03
 1    prepare   and  deliver  to  the  Legislative  Printing  Unit,
 2    immediately  after  the  close  of  each  daily  session,   a
 3    printer's  copy  of  the  daily  journal for their respective
 4    House.
 5        (e)  Daily and bound journals.
 6             (1)  Subscriptions.  The Legislative  Printing  Unit
 7        shall  have  printed  the  number  of copies of the daily
 8        journal as may be requested by the  clerical  officer  of
 9        each House.  The Secretary of the Senate and the Clerk of
10        the House of Representatives shall furnish a copy of each
11        daily  journal of their respective House to those persons
12        who  apply  therefor  upon  payment   of   a   reasonable
13        subscription  fee established separately by the Secretary
14        of the Senate and  the  Clerk  of  the  House  for  their
15        respective  House.   Each subscriber shall specify at the
16        time he or she subscribes the address  where  he  or  she
17        wishes  the journals mailed.  The daily journals shall be
18        furnished free of charge  on  a  pickup  basis  to  State
19        offices  and  to  the public as long as the supply lasts.
20        The Secretary of the Senate and the Clerk  of  the  House
21        shall  determine  the  number  of  journals available for
22        pickup at their respective offices.
23             (2)  Other  copies.   After  the  General   Assembly
24        adjourns, the Clerk of the House and the Secretary of the
25        Senate  shall  prepare  and  deliver  to  the Legislative
26        Printing Unit a printer's copy of matter for the  regular
27        House  and Senate journals, together with any matter, not
28        previously  printed  in  the  daily  journals,  that   is
29        required  by  law,  by order of either House, or by joint
30        resolution  to  be  printed   in   the   journals.    The
31        Legislative  Printing  Unit shall have printed the number
32        of copies of the bound journal as may be requested by the
33        clerical officer of each House.  A reasonable  number  of
34        bound volumes of the journal of each House of the General
                            -69-           LRB9003208JMmbam03
 1        Assembly  shall  be provided to State and local officers,
 2        boards, commissions, institutions, departments, agencies,
 3        and libraries requesting them through canvasses conducted
 4        separately by the Secretary of the Senate and  the  Clerk
 5        of  the House.  Reasonable fees established separately by
 6        the Secretary of the Senate and the Clerk  of  the  House
 7        may  be  charged for bound volumes of the journal of each
 8        House of the General Assembly.
 9        (f)  Session laws. Immediately after the General Assembly
10    adjourns, the Secretary of State shall  prepare  a  printer's
11    copy  for the "Session Laws of Illinois" that shall set forth
12    in full all Acts and joint resolutions passed by the  General
13    Assembly  at  the  session  just  concluded and all executive
14    orders of the Governor taking effect under Article V, Section
15    11 of  the  Constitution  and  the  Executive  Reorganization
16    Implementation  Act.   The  printer's copy shall be furnished
17    and delivered to the Secretary of State by the Enrolling  and
18    Engrossing  Department  of  the  2  Houses.    At the time an
19    enrolled law is filed with the Secretary  of  State,  whether
20    before or after the conclusion of the session in which it was
21    passed,  it  shall be assigned a Public Act number, the first
22    part of which shall be the number  of  the  General  Assembly
23    followed  by  a  dash  and then a number showing the order in
24    which that law was filed with the Secretary of State.     The
25    title  page  of each volume of the session laws shall contain
26    the following:  "Printed by  the  authority  of  the  General
27    Assembly  of  the  State  of  Illinois".   The  laws shall be
28    arranged by  the  Secretary  of  State  and  printed  in  the
29    chronological  order  of  Public  Act numbers.  At the end of
30    each Act the dates when the Act was  passed  by  the  General
31    Assembly  and when the Act was approved by the Governor shall
32    be stated.  Any Act becoming law without the approval of  the
33    Governor  shall  be  marked at its end in the session laws by
34    the printed certificate of the Secretary of State.  Executive
                            -70-           LRB9003208JMmbam03
 1    orders taking effect under  Article  V,  Section  11  of  the
 2    Constitution  and the Executive Reorganization Implementation
 3    Act shall be printed  in  chronological  order  of  executive
 4    order  number  and  shall  state at the end of each executive
 5    order the date it was transmitted to the General Assembly and
 6    the date it takes effect.   In the case of an amendatory Act,
 7    the changes made by the amendatory Act shall be indicated  in
 8    the session laws in the following manner:  (i) all new matter
 9    shall  be  underscored;  and  (ii)  all matter deleted by the
10    amendatory Act shall  be  shown  crossed  with  a  line.  The
11    Secretary  of  State  shall  prepare  and  furnish a table of
12    contents and an index to each volume of the session laws.
13        (g)  Distribution.  The bound volumes of the session laws
14    of the General  Assembly  shall  be  made  available  to  the
15    following:
16             (1)  one  copy of each to each State officer, board,
17        commission, institution, and department requesting a copy
18        in accordance with a canvass conducted by  the  Secretary
19        of  State  before the printing of the session laws except
20        judges of the appellate courts and judges  and  associate
21        judges of the circuit courts;
22             (2)  10  copies  to  the  law library of the Supreme
23        Court;  one  copy  each  to  the  law  libraries  of  the
24        appellate courts; and one copy to each of the county  law
25        libraries  or,  in  those  counties  without  county  law
26        libraries, one copy to the clerk of the circuit court;
27             (3)  one copy of each to each county clerk;
28             (4)  10  copies  of  each  to  the  library  of  the
29        University of Illinois;
30             (5)  3  copies  of  each  to  the  libraries  of the
31        University of  Illinois  at  Chicago,  Southern  Illinois
32        University at Carbondale, Southern Illinois University at
33        Edwardsville,   Northern   Illinois  University,  Western
34        Illinois   University,   Eastern   Illinois   University,
                            -71-           LRB9003208JMmbam03
 1        Illinois  State  University,  Chicago  State  University,
 2        Northeastern Illinois University, Chicago Kent College of
 3        Law, DePaul University, John Marshall Law School,  Loyola
 4        University,     Northwestern     University,    Roosevelt
 5        University, and the University of Chicago;
 6             (6)  a number  of  copies  sufficient  for  exchange
 7        purposes  to  the  Legislative  Reference  Bureau and the
 8        University of Illinois College of Law Library;
 9             (7)  a  number  of  copies  sufficient  for   public
10        libraries in the State to the State Library; and
11             (8)  the    remainder    shall   be   retained   for
12        distribution as the interests of the State may require to
13        persons making application in writing or  in  person  for
14        the publication.
15        (h)  Messages   and  reports.   The  following  shall  be
16    printed in a quantity not to exceed  the  maximum  stated  in
17    this subsection and bound and distributed at public expense:
18             (1)  messages   to   the  General  Assembly  by  the
19        Governor, 10,000 copies;
20             (2)  the biennial report of the Lieutenant Governor,
21        1,000 copies;
22             (3)  the biennial report of the Secretary of  State,
23        3,000 copies;
24             (4)  the  biennial  report of the State Comptroller,
25        5,000 copies;
26             (5)  the biennial report  of  the  State  Treasurer,
27        3,000 copies;
28             (6)  the   annual  report  of  the  State  Board  of
29        Education, 6,000 copies; and
30             (7)  the biennial report and annual opinions of  the
31        Attorney General, 5,000 copies.
32        The   reports   of  all  other  State  officers,  boards,
33    commissions, institutions, and departments shall be  printed,
34    bound,  and  distributed  at  public  expense  in a number of
                            -72-           LRB9003208JMmbam03
 1    copies determined from previous experience not to exceed  the
 2    probable  and  reasonable demands of the State therefor.  Any
 3    other report required by law  to  be  made  to  the  Governor
 4    shall,  upon  his  or  her  order, be printed in the quantity
 5    ordered by the Governor,  bound  and  distributed  at  public
 6    expense.
 7        (30 ILCS 505/Act rep.)
 8        Section 95-25.  The Illinois Purchasing Act is repealed.
 9        (30 ILCS 510/Act rep.)
10        Section   95-30.   The  State  Paper  Purchasing  Act  is
11    repealed.
12        Section 95-35.   The  State  Printing  Contracts  Act  is
13    amended by adding Section 44 as follows:
14        (30 ILCS 515/44 new)
15        Sec. 44.  Repeal.  This Act is repealed on May 1, 1998.
16        (30 ILCS 563/Act rep.)
17        Section 95-37.  The Real Estate Leasing Act is repealed.
18        (30 ILCS 615/Act rep.)
19        Section   95-40.    The  State  Vehicle  Mileage  Act  is
20    repealed.
21                             ARTICLE 99
22                           EFFECTIVE DATE
23        Section  99-5.  Effective  date  and  transition.    This
24    Article,  Sections  1-15  through  1-15.115 of Article 1, and
25    Article 50 take effect upon becoming law. Articles 1  through
26    45  and 53 through 95 take effect January 1, 1998, solely for
                            -73-           LRB9003208JMmbam03
 1    the  purpose  of  allowing  the  promulgation  of  rules   to
 2    implement  the  Illinois  Procurement  Code.  The Procurement
 3    Policy Board established in Article 5 may be appointed as  of
 4    January  1,  1998,  and until July 1, 1998, shall act only to
 5    review proposed purchasing rules.  Articles 1 through 45  and
 6    53  through  95 for all other purposes take effect on July 1,
 7    1998.".

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