HB6613 93RD GENERAL ASSEMBLY

LRB093 16095 JAM 41723 b

93RD GENERAL ASSEMBLY
State of Illinois
2003 and 2004
HB6613

Introduced 02/09/04, by Jay C. Hoffman

SYNOPSIS AS INTRODUCED:

30 ILCS 500/45-65
30 ILCS 500/45-70 new
30 ILCS 500/45-75 new
30 ILCS 565/1	from Ch. 48, par. 1801
30 ILCS 565/2	from Ch. 48, par. 1802
30 ILCS 565/3	from Ch. 48, par. 1803
30 ILCS 565/4	from Ch. 48, par. 1804
30 ILCS 565/6	from Ch. 48, par. 1806

Amends the Steel Products Procurement Act. Changes the short title to the "Domestic Products Procurement Act" and expands the scope of the Act to apply to all purchases or leases of commodities or manufactured goods by the State of Illinois from 2005 until 2010. Provides that, with specified exceptions, the State of Illinois shall purchase or lease only materials, commodities, or goods that are manufactured or supplied by companies whose products consist of a specified minimum level of U.S. or Canadian content. Amends the Illinois Procurement Code. Requires all goods purchased under the Code to be Illinois-made goods unless the cost of Illinois-made goods exceeds the cost of other goods by 10% or more. Requires all goods purchased under the Code to be U.S.-made goods unless the cost of the U.S.-made goods exceeds the cost of other goods by 10% or more.

FISCAL NOTE ACT MAY APPLY

A BILL FOR

AN ACT concerning State procurement.

Be it enacted by the People of the State of Illinois, represented in the General Assembly:

Section 5. The Illinois Procurement Code is amended by changing Section 45-65 and adding Sections 45-70 and 45-75 as follows:

(30 ILCS 500/45-65)

Sec. 45-65. Additional preferences. This Code is subject to applicable provisions of:

(1) the Public Purchases in Other States Act;

(2) the Illinois Mined Coal Act;

(3) the Domestic Steel Products Procurement Act;

(4) the Veterans Preference Act; and

(5) the Business Enterprise for Minorities, Females, and Persons with Disabilities Act.

(Source: P.A. 90-572, eff. date - See Sec. 99-5.)

(30 ILCS 500/45-70 new)

Sec. 45-70. Purchase of goods made in Illinois. Notwithstanding any other provision of this Code, all goods purchased under this Code shall be made in Illinois unless the cost of the goods made in Illinois exceeds the cost of equivalent goods made outside of Illinois by 10% or more.

(30 ILCS 500/45-75 new)

Sec. 45-75. Purchase of goods made in the United States. Notwithstanding any other provision of this Code, all goods purchased under this Code shall be made in the United States unless the cost of the goods made in the United States exceeds the cost of equivalent goods made outside of the United States by 10% or more.

Section 10. The Steel Products Procurement Act is amended by changing Sections 1, 2, 3, 4, and 6 as follows:

(30 ILCS 565/1) (from Ch. 48, par. 1801)

Sec. 1. This Act shall be known and may be cited as the " Domestic Steel Products Procurement Act".

(Source: P.A. 83-1030.)

(30 ILCS 565/2) (from Ch. 48, par. 1802)

Sec. 2. It is hereby found and declared by the Illinois General Assembly that:

(1) The production of domestic manufactured commodities and goods, including steel products, provides the jobs and family incomes of hundreds of thousands of people in this State and, in turn, the jobs and family incomes of millions of persons in the United States;

(2) The taxes paid to the State and its political subdivisions by employers and employees engaged in the production and sale of domestic steel products, including steel products, are a large source of public revenues in the State;

(3) The economy and general welfare of this State and its people, as well as the economy and general welfare of the United States, are inseparably related to the preservation and development of industry in this State, as well as all the other states of this nation.

The General Assembly therefore declares it to be the policy of the State of Illinois to that all public officers and agencies should aid and promote the economy of the State and the United States by specifying materials, commodities, and goods manufactured or steel products produced in the United States, including steel products, in all State purchases and contracts for construction, reconstruction, repair, improvement or maintenance of public works.

(Source: P.A. 83-1030.)

(30 ILCS 565/3) (from Ch. 48, par. 1803)

Sec. 3. For the purposes of this Act, the following words have the meanings ascribed to them in this Section unless the context clearly requires otherwise.

(a) "Public agency" means the State of Illinois, its departments, agencies, boards, commissions and institutions, and all units of local government, including school districts.

(b) "United States" means the United States and any place subject to the jurisdiction thereof.

(c) "Steel products" means products rolled, formed, shaped, drawn, extruded, forged, cast, fabricated, or otherwise similarly processed, or processed by a combination of two or more such operations, from steel made in the United States by the open hearth, basic oxygen, electric furnace, Bessemer or other steel making process.

(d) "Domestic products" means goods and commodities manufactured or supplied by companies, including subsidiaries or affiliates, whose products consist of at least 50% United States or Canadian content during 2005; 60% United States or Canadian content during 2006; and 70% United States or Canadian content during 2007, 2008, and 2009.

(Source: P.A. 83-1030.)

(30 ILCS 565/4) (from Ch. 48, par. 1804)

Sec. 4. Each contract for the construction, reconstruction, alteration, repair, improvement or maintenance of public works made by a public agency shall contain a provision that steel products used or supplied in the performance of that contract or any subcontract thereto shall be manufactured or produced in the United States.

Each contract for the purchase or lease of commodities or manufactured goods, other than steel, by the State of Illinois shall contain a provision that the commodities and goods used or supplied in the performance of that contract or any subcontract thereunder shall be manufactured or supplied by companies, including subsidiaries or affiliates, whose products consist of at least 50% United States or Canadian content during 2005; 60% United States or Canadian content during 2006; and 70% United States or Canadian content during 2007, 2008, and 2009.

The provisions of this Section shall not apply:

(1) Where the contract involves an expenditure of less than $500.

(2) Where the executive head of the public agency certifies in writing that (a) the specified products are not manufactured or produced in the United States in sufficient quantities to meet the agency's requirements or cannot be manufactured or produced in the United States within the necessary time in sufficient quantities to meet the agency's requirements, or (b) obtaining the specified products, manufactured or produced in the United States would increase the cost of the contract by more than 10%.

(3) When its application is not in the public interest.

(Source: P.A. 83-1030.)

(30 ILCS 565/6) (from Ch. 48, par. 1806)

Sec. 6. Applicability.

(a) With respect to steel products, this Act shall apply only to contracts and subcontracts entered into after the effective date of this Act, and shall not limit the use or supply of steel products purchased or leased prior to the effective date of this Act.

(b) With respect to domestic manufactured commodities and goods other than steel products, this Act shall apply only to contracts and subcontracts entered into by the State of Illinois on or after the effective date of this amendatory Act of the 93rd General Assembly and before January 1, 2010, and shall not limit the use or supply of manufactured commodities or goods purchased or leased by the State of Illinois before the effective date of this amendatory Act of the 93rd General Assembly.

(Source: P.A. 83-1030.)