SB2997 94TH GENERAL ASSEMBLY

LRB094 17812 JAM 53113 b

94TH GENERAL ASSEMBLY
State of Illinois
2005 and 2006
SB2997

Introduced 1/20/2006, by Sen. Christine Radogno - Steven J. Rauschenberger - Peter J. Roskam - Kirk W. Dillard - Cheryl Axley, et al.

SYNOPSIS AS INTRODUCED:

New Act
15 ILCS 20/50-25 new
15 ILCS 205/6.10 new
15 ILCS 305/30 new
15 ILCS 405/40 new
15 ILCS 505/25 new
30 ILCS 5/2-20 new
30 ILCS 500/1-15.30
30 ILCS 500/15-25
30 ILCS 500/20-10
30 ILCS 500/20-25
30 ILCS 500/20-30
30 ILCS 500/20-43 new
30 ILCS 500/20-50
30 ILCS 500/20-55
30 ILCS 500/20-80
30 ILCS 500/40-15
30 ILCS 500/40-25
30 ILCS 500/50-20
30 ILCS 500/50-37 new
30 ILCS 500/50-60

Creates the Legislative Contract Disclosure Act and the Lieutenant Governor's Contract Disclosure Act and amends the State Budget Law, the Attorney General Act, the Secretary of State Act, the State Comptroller Act, the State Treasurer Act, and the Illinois State auditing Act. Requires that the offices of statewide officers, legislators, legislative agencies, and the Auditor General post on their websites disclosures with respect to each of their contracts with an annual value of $50,000 or more. Specifies the contents of the disclosure, including the names of the contracting entity and others with whom the contracting entity has a financial relationship. Amends the Illinois Procurement Code to require posting on the online Procurement Bulletin of similar disclosures by bidders and offerors on State contracts with an annual value of $50,000 or more. Amends the Illinois Procurement Code to make changes with respect to the following: amendments to contracts; contents of the Procurement Bulletin; contract renewals; use of competitive bidding; sole source procurements; emergency procurements; bidders and offerors authorized to do business in Illinois; contract specifications; expense reimbursement; contract payments; lease renewals; lease holdovers; conflict of interest waivers; and contract voidability. Effective immediately.

FISCAL NOTE ACT MAY APPLY

A BILL FOR

AN ACT concerning procurement.

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

ARTICLE 1

Section 1-1. Short title. This Article may be cited as the Legislative Contract Disclosure Act.

Section 1-5. Definitions. For purposes of this Article:

"Contract" means any contract or agreement for goods or services executed by a member of the General Assembly, legislative office, or legislative agency, with an annual value of $50,000 or more, except, regardless of amount, "contract" as used in this Article shall not include the following:

(1) Contracts with State agencies or officers or other political subdivisions;

(2) Hiring of an individual as an employee or independent contractor, whether pursuant to an employment code or policy or by contract directly with that individual;

(3) Collective bargaining contracts;

(4) Purchase of real estate; or

(5) Contracts necessary to prepare for anticipated litigation, enforcement actions, or investigations.

"Contracting entity" means an entity that has executed a contract with the member of the General Assembly, legislative office, or legislative agency.

"Key persons" means any persons who (i) have an ownership or distributive income share in the contracting entity that is in excess of 5%, or an amount greater than 60% of the annual salary of the Governor; (ii) serve as executive officers of the contracting entity; (iii) are employed by the contracting entity who are required to register as lobbyists under the Lobbyist Registration Act; (iv) are individuals or entities with whom the contracting entity is contracting who are required to register as lobbyists under the Lobbyist Registration Act; and (v) are employed by the contracting entity who are special government agents as defined in Section 4A-101(l) of the Illinois Governmental Ethics Act.

Section 1-10. Notice. Notice of the execution of contracts shall be posted on the website of the Illinois General Assembly that includes a brief description of the purpose of the contract and disclosure of the names of the following:

(1) The contracting entity;

(2) Any entity that is a parent of, or owns a controlling interest in, the contracting entity;

(3) Any entity that is a subsidiary of, or owns a controlling interest in, the contracting entity;

(4) Any subcontractor that will be contracting with the contracting entity;

(5) Any State, local, or federal political committee that makes or may make political contributions on behalf of or at the direction of the contracting entity; and

(6) The key persons of the contracting entity and any subcontractor. This notice shall be posted within 10 business days after the contract is awarded.

Section 1-15. Application. This Article applies to contracts executed on or after the effective date of this amendatory Act of the 94th General Assembly.

ARTICLE 5

Section 5-1. Short title. This Article may be cited as the Lieutenant Governor's Contract Disclosure Act.

Section 5-5. Definitions. For purposes of this Article:

"Contract" means any contract or agreement for goods or services executed by the office of the Lieutenant Governor with an annual value of $50,000 or more, except, regardless of amount, "contract" as used in this Section shall not include the following:

(1) Contracts with State agencies or officers or other political subdivisions;

(2) Hiring of an individual as an employee or independent contractor, whether pursuant to an employment code or policy or by contract directly with that individual;

(3) Collective bargaining contracts;

(4) Purchase of real estate; or

(5) Contracts necessary to prepare for anticipated litigation, enforcement actions, or investigations.

"Contracting entity" means an entity that has executed a contract with the Office of the Lieutenant Governor.

"Key persons" means any persons who (i) have an ownership or distributive income share in the contracting entity that is in excess of 5%, or an amount greater than 60% of the annual salary of the Governor; (ii) serve as executive officers of the contracting entity; (iii) are employed by the contracting entity who are required to register as lobbyists under the Lobbyist Registration Act; (iv) are individuals or entities with whom the contracting entity is contracting who are required to register as lobbyists under the Lobbyist Registration Act; and (v) are employed by the contracting entity who are special government agents as defined in Section 4A-101(l) of the Illinois Governmental Ethics Act.

Section 5-10. Notice. Notice of the execution of contracts shall be posted on the website of the Office of the Lieutenant Governor that includes a brief description of the purpose of the contract and disclosure of the names of the following:

(1) The contracting entity;

(2) Any entity that is a parent of, or owns a controlling interest in, the contracting entity;

(3) Any entity that is a subsidiary of, or owns a controlling interest in, the contracting entity;

(4) Any subcontractor that will be contracting with the contracting entity;

(5) Any State, local, or federal political committee that makes or may make political contributions on behalf of or at the direction of the contracting entity; and

(6) The key persons of the contracting entity and any subcontractor. This notice shall be posted within 10 business days after the contract is awarded.

Section 5-15. Application. This Article applies to contracts executed on or after the effective date of this amendatory Act of the 94th General Assembly.

ARTICLE 90

Section 90-5. The State Budget Law is amended by adding Section 50-25 as follows:

(15 ILCS 20/50-25 new)

Sec. 50-25. Governor's Contract Disclosure.

(a) For purposes of this Section:

"Contract" means any contract or agreement for goods or services executed by the Office of the Governor, with an annual value of $50,000 or more, except, regardless of amount, "contract" as used in this Section shall not include the following:

(1) Contracts with State agencies or officers or other political subdivisions;

(2) Hiring of an individual as an employee or independent contractor, whether pursuant to an employment code or policy or by contract directly with that individual;

(3) Collective bargaining contracts;

(4) Purchase of real estate; or

(5) Contracts necessary to prepare for anticipated litigation, enforcement actions, or investigations.

"Contracting entity" means an entity that has executed a contract with the Office of the Governor.

"Key persons" means any persons who (i) have an ownership or distributive income share in the contracting entity that is in excess of 5%, or an amount greater than 60% of the annual salary of the Governor; (ii) serve as executive officers of the contracting entity; (iii) are employed by the contracting entity who are required to register as lobbyists under the Lobbyist Registration Act; (iv) are individuals or entities with whom the contracting entity is contracting who are required to register as lobbyists under the Lobbyist Registration Act; and (v) are employed by the contracting entity who are special government agents as defined in Section 4A-101(l) of the Illinois Governmental Ethics Act.

(b) Notice of the execution of contracts shall be posted on the website of the Office of the Governor that includes a brief description of the purpose of the contract and disclosure of the names of the following:

(1) The contracting entity;

(2) Any entity that is a parent of, or owns a controlling interest in, the contracting entity;

(3) Any entity that is a subsidiary of, or owns a controlling interest in, the contracting entity;

(4) Any subcontractor that will be contracting with the contracting entity;

(5) Any State, local, or federal political committee which makes or may make political contributions on behalf or at the direction of the contracting entity; and

(6) The key persons of the contracting entity and any subcontractor. This notice shall be posted within 10 business days after the contract is awarded.

(c) This Section applies to contracts executed on or after the effective date of this amendatory Act of the 94th General Assembly.

Section 90-10. The Attorney General Act is amended by adding Section 6.10 as follows:

(15 ILCS 205/6.10 new)

Sec. 6.10. Attorney General's Contract Disclosure.

(a) For purposes of this Section:

"Contract" means any contract or agreement for goods or services executed by the Office of the Attorney General, with an annual value of $50,000 or more, except, regardless of amount, "contract" as used in this Section shall not include the following:

(1) Contracts with State agencies or officers or other political subdivisions;

(2) Hiring of an individual as an employee or independent contractor, whether pursuant to an employment code or policy or by contract directly with that individual;

(3) Collective bargaining contracts;

(4) Purchase of real estate; or

(5) Contracts necessary to prepare for anticipated litigation, enforcement actions or investigations.

"Contracting entity" means an entity that has executed a contract with the Office of the Attorney General.

"Key persons" means any persons who (i) have an ownership or distributive income share in the contracting entity that is in excess of 5%, or an amount greater than 60% of the annual salary of the Governor; (ii) serve as executive officers of the contracting entity; (iii) are employed by the contracting entity who are required to register as lobbyists under the Lobbyist Registration Act; (iv) are individuals or entities with whom the contracting entity is contracting who are required to register as lobbyists under the Lobbyist Registration Act; and (v) are employed by the contracting entity who are special government agents as defined in Section 4A-101(l) of the Illinois Governmental Ethics Act.

(b) Notice of the execution of contracts shall be posted on the website of the Office of the Attorney General that includes a brief description of the purpose of the contract and disclosure of the names of the following:

(1) The contracting entity;

(2) Any entity that is a parent of, or owns a controlling interest in, the contracting entity;

(3) Any entity that is a subsidiary of, or owns a controlling interest in, the contracting entity;

(4) Any subcontractor that will be contracting with the contracting entity;

(5) Any State, local, or federal political committee which makes or may make political contributions on behalf of or at the direction of the contracting entity; and

(6) The key persons of the contracting entity and any subcontractor. This notice shall be posted within 10 business days after the contract is awarded.

(c) This Section applies to contracts executed on or after the effective date of this amendatory Act of the 94th General Assembly.

Section 90-12. The Secretary of State Act is amended by adding Section 30 as follows:

(15 ILCS 305/30 new)

Sec. 30. Secretary of State's Contract Disclosure.

(a) For purposes of this Section:

"Contract" means any contract or agreement for goods or services executed by the Office of the Secretary of State, with an annual value of $50,000 or more, except, regardless of amount, "contract" as used in this Section shall not include the following:

(1) Contracts with State agencies or officers or other political subdivisions;

(2) Hiring of an individual as an employee or independent contractor, whether pursuant to an employment code or policy or by contract directly with that individual;

(3) Collective bargaining contracts;

(4) Purchase of real estate; or

(5) Contracts necessary to prepare for anticipated litigation, enforcement actions, or investigations.

"Contracting entity" means an entity that has executed a contract with the Office of the Secretary of State.

"Key persons" means any persons who (i) have an ownership or distributive income share in the contracting entity that is in excess of 5%, or an amount greater than 60% of the annual salary of the Governor; (ii) serve as executive officers of the contracting entity; (iii) are employed by the contracting entity who are required to register as lobbyists under the Lobbyist Registration Act; (iv) are individuals or entities with whom the contracting entity is contracting who are required to register as lobbyists under the Lobbyist Registration Act; and (v) are employed by the contracting entity who are special government agents as defined in Section 4A-101(l) of the Illinois Governmental Ethics Act.

(b) Notice of the execution of contracts shall be posted on the website of the Office of the Secretary of State that includes a brief description of the purpose of the contract and disclosure of the names of the following:

(1) The contracting entity;

(2) Any entity that is a parent of, or owns a controlling interest in, the contracting entity;

(3) Any entity that is a subsidiary of, or owns a controlling interest in, the contracting entity;

(4) Any subcontractor that will be contracting with the contracting entity;

(5) Any State, local, or federal political committee that makes or may make political contributions on behalf of or at the direction of the contracting entity; and

(6) The key persons of the contracting entity and any subcontractor. This notice shall be posted within 10 business days after the contract is awarded.

(c) This Section applies to contracts executed on or after the effective date of this amendatory Act of the 94th General Assembly.

Section 90-13. The State Comptroller Act is amended by adding Section 40 as follows:

(15 ILCS 405/40 new)

Sec. 40. Comptroller's Contract Disclosure.

(a) For purposes of this Section:

"Contract" means any contract or agreement for goods or services executed by the Office of the Comptroller, with an annual value of $50,000 or more, except, regardless of amount, "contract" as used in this Section shall not include the following:

(1) Contracts with State agencies or officers or other political subdivisions;

(2) Hiring of an individual as an employee or independent contractor, whether pursuant to an employment code or policy or by contract directly with that individual;

(3) Collective bargaining contracts;

(4) Purchase of real estate; or

(5) Contracts necessary to prepare for anticipated litigation, enforcement actions, or investigations.

"Contracting entity" means an entity that has executed a contract with the Office of the Comptroller.

"Key persons" means any persons who (i) have an ownership or distributive income share in the contracting entity that is in excess of 5%, or an amount greater than 60% of the annual salary of the Governor; (ii) serve as executive officers of the contracting entity; (iii) are employed by the contracting entity who are required to register as lobbyists under the Lobbyist Registration Act; (iv) are individuals or entities with whom the contracting entity is contracting who are required to register as lobbyists under the Lobbyist Registration Act; and (v) are employed by the contracting entity who are special government agents as defined in Section 4A-101(l) of the Illinois Governmental Ethics Act.

(b) Notice of the execution of contracts shall be posted on the website of the Office of the Comptroller that includes a brief description of the purpose of the contract and disclosure of the names of the following:

(1) The contracting entity;

(2) Any entity that is a parent of, or owns a controlling interest in, the contracting entity;

(3) Any entity that is a subsidiary of, or owns a controlling interest in, the contracting entity;

(4) Any subcontractor that will be contracting with the contracting entity;

(5) Any State, local, or federal political committee which makes or may make political contributions on behalf of or at the direction of the contracting entity; and

(6) The key persons of the contracting entity and any subcontractor. This notice shall be posted within 10 business days after the contract is awarded.

(c) This Section applies to contracts executed on or after the effective date of this amendatory Act of the 94th General Assembly.

Section 90-15. The State Treasurer Act is amended by adding Section 25 as follows:

(15 ILCS 505/25 new)

Sec. 25. Treasurer's Contract Disclosure.

(a) For purposes of this Section:

"Contract" means any contract or agreement for goods or services executed by the Office of the Treasurer, with an annual value of $50,000 or more, except, regardless of amount, "contract" as used in this Section shall not include the following:

(1) Contracts with State agencies or officers or other political subdivisions;

(2) Hiring of an individual as an employee or independent contractor, whether pursuant to an employment code or policy or by contract directly with that individual;

(3) Collective bargaining contracts;

(4) Purchase of real estate; or

(5) Contracts necessary to prepare for anticipated litigation, enforcement actions, or investigations.

"Contracting entity" means an entity that has executed a contract with the Office of the Treasurer.

"Key persons" means any persons who (i) have an ownership or distributive income share in the contracting entity that is in excess of 5%, or an amount greater than 60% of the annual salary of the Governor; (ii) serve as executive officers of the contracting entity; (iii) are employed by the contracting entity who are required to register as lobbyists under the Lobbyist Registration Act; (iv) are individuals or entities with whom the contracting entity is contracting who are required to register as lobbyists under the Lobbyist Registration Act; and (v) are employed by the contracting entity who are special government agents as defined in Section 4A-101(l) of the Illinois Governmental Ethics Act.

(b) Notice of the execution of contracts shall be posted on the website of the Office of the Treasurer that includes a brief description of the purpose of the contract and disclosure of the names of the following:

(1) The contracting entity;

(2) Any entity that is a parent of, or owns a controlling interest in, the contracting entity;

(3) Any entity that is a subsidiary of, or owns a controlling interest in, the contracting entity;

(4) Any subcontractor that will be contracting with the contracting entity;

(5) Any State, local, or federal political committee which makes or may make political contributions on behalf of or at the direction of the contracting entity; and

(6) The key persons of the contracting entity and any subcontractor. This notice shall be posted within 10 business days after the contract is awarded.

(c) This Section applies to contracts executed on or after the effective date of this amendatory Act of the 94th General Assembly.

Section 90-20. The Illinois State Auditing Act is amended by adding Section 2-20 as follows:

(30 ILCS 5/2-20 new)

Sec. 2-20. Auditor General's Contract Disclosure.

(a) For purposes of this Section:

"Contract" means any contract or agreement for goods or services executed by the Office of the Auditor General, with an annual value of $50,000 or more, except, regardless of amount, "contract" as used in this Section shall not include the following:

(1) Contracts with State agencies or officers or other political subdivisions;

(2) Hiring of an individual as an employee or independent contractor, whether pursuant to an employment code or policy or by contract directly with that individual;

(3) Collective bargaining contracts;

(4) Purchase of real estate; or

(5) Contracts necessary to prepare for anticipated litigation, enforcement actions, or investigations.

"Contracting entity" means an entity that has executed a contract with the Office of the Auditor General.

"Key persons" means any persons who (i) have an ownership or distributive income share in the contracting entity that is in excess of 5%, or an amount greater than 60% of the annual salary of the Governor; (ii) serve as executive officers of the contracting entity; (iii) are employed by the contracting entity who are required to register as lobbyists under the Lobbyist Registration Act; (iv) are individuals or entities with whom the contracting entity is contracting who are required to register as lobbyists under the Lobbyist Registration Act; and (v) are employed by the contracting entity who are special government agents as defined in Section 4A-101(l) of the Illinois Governmental Ethics Act.

(b) Notice of the execution of contracts shall be posted on the website of the Office of the Auditor General that includes a brief description of the purpose of the contract and disclosure of the names of the following:

(1) The contracting entity;

(2) Any entity that is a parent of, or owns a controlling interest in, the contracting entity;

(3) Any entity that is a subsidiary of, or owns a controlling interest in, the contracting entity;

(4) Any subcontractor that will be contracting with the contracting entity;

(5) Any State, local, or federal political committee which makes or may make political contributions on behalf of or at the direction of the contracting entity; and

(6) The key persons of the contracting entity and any subcontractor. This notice shall be posted within 10 business days after the contract is awarded.

(c) This Section applies to contracts executed on or after the effective date of this amendatory Act of the 94th General Assembly.

Section 90-25. The Illinois Procurement Code is amended by changing Sections 1-15.30, 15-25, 20-10, 20-25, 20-30, 20-50, 20-55, 20-80, 40-15, 40-25, 50-20, 50-30, and 50-60 and by adding Sections 20-43 and 50-37 as follows:

(30 ILCS 500/1-15.30)

Sec. 1-15.30. Contract. "Contract" means all types of State agreements, regardless of what they may be called, for the procurement, use, or disposal of supplies, services, professional or artistic services, or construction or for leases of real property or capital improvements, and including master contracts, contracts for financing through use of installment or lease-purchase arrangements, renegotiated contracts, amendments to contracts, and change orders. The changes to this Section made by this amendatory Act of the 94th General Assembly apply to amendments executed on or after its effective date.

(Source: P.A. 90-572, eff. 2-6-98.)

(30 ILCS 500/15-25)

Sec. 15-25. Bulletin content.

(a) Invitations for bids. Notice of each and every contract that is offered, including renegotiated contracts and change orders, shall be published in the Bulletin. The applicable chief procurement officer may provide by rule an organized format for the publication of this information, but in any case it must include at least the date first offered, the date submission of offers is due, the location that offers are to be submitted to, the purchasing State agency, the responsible State purchasing officer, a brief purchase description, the method of source selection, and information of how to obtain a comprehensive purchase description and any disclosure and contract forms.

(b) Contracts let or awarded. Notice of each and every contract that is let or awarded, including renegotiated contracts and change orders, shall be published in the next available subsequent Bulletin, and the applicable chief procurement officer may provide by rule an organized format for the publication of this information, but in any case it must include at least all of the information specified in subsection (a) as well as the name of the successful responsible bidder or offeror, the contract price, the number of unsuccessful responsive bidders, and any other disclosure specified in any Section of this Code. This notice shall include the disclosures required under Section 50-37, if applicable. In addition, the notice shall summarize the outreach efforts undertaken by the agency to make potential bidders or offerors aware of any contract offer other than publication in the Bulletin. This notice must be posted in the online electronic Bulletin no later than 10 business days after the contract is awarded.

(c) Emergency purchase disclosure. Any chief procurement officer, State purchasing officer, or designee exercising emergency purchase authority under this Code shall publish a written description and reasons and the total cost, if known, or an estimate if unknown and the name of the responsible chief procurement officer and State purchasing officer, and the business or person contracted with for all emergency purchases in the next timely, practicable Bulletin. This notice must be posted in the online electronic Bulletin no later than 10 business days after the contract is awarded.

(c-5) Business Enterprises Council reports. Each State agency shall post online on the Procurement Bulletin a copy of its annual report of utilization of businesses owned by minorities, females, and persons with disabilities as submitted to the Business Enterprises Council for Minorities, Females, and Persons with Disabilities pursuant to Section 6(c) of the Business Enterprise for Minorities, Females, and Persons with Disabilities Act no later than 10 business days after its submission of its report to the Council.

(c-10) Renewals. Notice of each contract renewal shall be posted online on the Procurement Bulletin no later than 10 business days after the renewal is exercised. The Procurement Policy Board by rule shall specify the information to be included in the notice, and the applicable chief procurement officer by rule may provide a format for the information.

(d) Other required disclosure. The applicable chief procurement officer shall provide by rule for the organized publication of all other disclosure required in other Sections of this Code in a timely manner.

(e) Application of amendatory provisions. The changes to this Section made by this amendatory Act of the 94th General Assembly apply to reports submitted, offers made, and notices on contracts executed on or after its effective date.

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

(30 ILCS 500/20-10)

Sec. 20-10. Competitive sealed bidding.

(a) Conditions for use. All contracts shall be awarded by competitive sealed bidding except as otherwise provided in Section 20-5.

(b) Invitation for bids. An invitation for bids shall be issued and shall include a purchase description and the material contractual terms and conditions applicable to the procurement.

(c) Public notice. Public notice of the invitation for bids shall be published in the Illinois Procurement Bulletin at least 14 days before the date set in the invitation for the opening of bids.

(d) Bid opening. Bids shall be opened publicly in the presence of one or more witnesses at the time and place designated in the invitation for bids. The name of each bidder, the amount of each bid, and other relevant information as may be specified by rule shall be recorded. After the award of the contract, the winning bid and the record of each unsuccessful bid shall be open to public inspection.

(e) Bid acceptance and bid evaluation. Bids shall be unconditionally accepted without alteration or correction, except as authorized in this Code. Bids shall be evaluated based on the requirements set forth in the invitation for bids, which may include criteria to determine acceptability such as inspection, testing, quality, workmanship, delivery, and suitability for a particular purpose. Those criteria that will affect the bid price and be considered in evaluation for award, such as discounts, transportation costs, and total or life cycle costs, shall be objectively measurable. The invitation for bids shall set forth the evaluation criteria to be used.

(f) Correction or withdrawal of bids. Correction or withdrawal of inadvertently erroneous bids before or after award, or cancellation of awards of contracts based on bid mistakes, shall be permitted in accordance with rules. After bid opening, no changes in bid prices or other provisions of bids prejudicial to the interest of the State or fair competition shall be permitted. All decisions to permit the correction or withdrawal of bids based on bid mistakes shall be supported by written determination made by a State purchasing officer.

(g) Award. The contract shall be awarded with reasonable promptness by written notice to the lowest responsible and responsive bidder whose bid meets the requirements and criteria set forth in the invitation for bids, except when a State purchasing officer determines it is not in the best interest of the State and by written explanation determines another bidder shall receive the award. The explanation shall be posted in the online appear in the appropriate volume of the Illinois Procurement Bulletin. The written explanation must include:

(1) a description of the agency's needs;

(2) a determination that the anticipated cost will be fair and reasonable;

(3) a listing of all responsible and responsive bidders; and

(4) the name of the bidder selected, pricing, and the reasons for selecting that bidder instead of the lowest responsible and responsive bidder.

Each agency may adopt rules to implement the requirements of this subsection (g).

The written explanation shall be filed with the Legislative Audit Commission and the Procurement Policy Board and posted in the online Bulletin within 30 days after the contract is awarded.

(h) Multi-step sealed bidding. When it is considered impracticable to initially prepare a purchase description to support an award based on price, an invitation for bids may be issued requesting the submission of unpriced offers to be followed by an invitation for bids limited to those bidders whose offers have been qualified under the criteria set forth in the first solicitation.

(i) Application of amendatory provisions. The changes to this Section made by this amendatory Act of the 94th General Assembly apply to contracts awarded on or after its effective date.

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

(30 ILCS 500/20-25)

Sec. 20-25. Sole source procurements. In accordance with standards set by rule, contracts may be awarded without use of the specified method of source selection when there is only one economically feasible source for the item. This Section may not be used as a basis for amending a contract if the amendment would result in an increase in the amount paid under the contract of more than 5% of the initial award, or would extend the contract term beyond the time reasonably needed for a competitive procurement, not to exceed 2 months. At least 2 weeks before entering into a sole source contract, the purchasing agency shall publish in the Illinois Procurement Bulletin a notice of intent to do so along with a description of the item to be procured and the intended sole source contractor. The changes to this Section made by this amendatory Act of the 94th General Assembly apply to amendments executed on or after its effective date.

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

(30 ILCS 500/20-30)

Sec. 20-30. Emergency purchases.

(a) Conditions for use. In accordance with standards set by rule, a purchasing agency may make emergency procurements without competitive sealed bidding or prior notice when there exists a threat to public health or public safety, or when immediate expenditure is necessary for repairs to State property in order to protect against further loss of or damage to State property, to prevent or minimize serious disruption in critical State services that affect health, safety, or collections of substantial State revenue, or to ensure the integrity of State records; provided, however, that the term of the emergency purchase shall be limited to the time reasonably needed for a competitive procurement, not to exceed 2 months. Emergency procurements shall be made with as much competition as is practicable under the circumstances. A written description of the basis for the emergency and reasons for the selection of the particular contractor shall be included in the contract file.

(b) Notice. Before the next appropriate volume of the Illinois Procurement Bulletin, the purchasing agency shall publish in the Illinois Procurement Bulletin a copy of each written description and reasons and the total cost of each emergency procurement made during the previous month. When only an estimate of the total cost is known at the time of publication, the estimate shall be identified as an estimate and published. When the actual total cost is determined, it shall also be published in like manner before the 10th day of the next succeeding month.

(c) Affidavits. A purchasing agency making a procurement under this Section shall file affidavits with the chief procurement officer and the Auditor General within 10 days after the procurement setting forth the amount expended, the name of the contractor involved, and the conditions and circumstances requiring the emergency procurement. When only an estimate of the cost is available within 10 days after the procurement, the actual cost shall be reported immediately after it is determined. At the end of each fiscal quarter, the Auditor General shall file with the Legislative Audit Commission and the Governor a complete listing of all emergency procurements reported during that fiscal quarter. The Legislative Audit Commission shall review the emergency procurements so reported and, in its annual reports, advise the General Assembly of procurements that appear to constitute an abuse of this Section.

(d) Quick purchases. The chief procurement officer may promulgate rules extending the circumstances by which a purchasing agency may make purchases under this Section, including but not limited to the procurement of items available at a discount for a limited period of time.

(e) Application of amendatory provisions. The changes to this Section made by this Amendatory Act of the 94th General Assembly apply to procurements executed on or after its effective date.

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

(30 ILCS 500/20-43 new)

Sec. 20-43. Bidder or offeror authorized to do business in Illinois. In addition to meeting any other requirement of law or rule, a person (other than an individual acting as a sole proprietor) may qualify as a bidder or offeror under this Code only if the person is a legal entity authorized to do business in Illinois prior to submitting the bid, offer, or proposal. This Section applies to all bids, offers, and proposals submitted on or after the effective date of this amendatory Act of the 94th General Assembly.

(30 ILCS 500/20-50)

Sec. 20-50. Specifications. Specifications shall be prepared in accordance with consistent standards that are promulgated by the chief procurement officer and reviewed by the Board and the Joint Committee on Administrative Rules. Those standards shall include a prohibition against the use of brand-name only products, except for products intended for retail sale or as specified by rule. Any person who assists in the development of specifications or background information for a bid solicitation or a request for proposals may not be awarded a contract under that bid solicitation or request for proposals. , and shall include a restriction on the use of specifications drafted by a potential bidder. All specifications shall seek to promote overall economy for the purposes intended and encourage competition in satisfying the State's needs and shall not be unduly restrictive.

A solicitation or specification for a contract or a contract, including but not limited to a contract of a college, university, or institution under the jurisdiction of a governing board listed in Section 1-15.100, may not require, stipulate, suggest, or encourage a monetary or other financial contribution or donation, cash bonus or incentive, or economic investment as an explicit or implied term or condition for awarding or completing the contract. The contract, solicitation, or specification also may not include a requirement that an individual or individuals employed by such a college, university, or institution receive a consulting contract for professional services.

(Source: P.A. 90-572, eff. date - See Sec. 99-5; 91-627, eff. 8-19-99.)

(30 ILCS 500/20-55)

Sec. 20-55. Types of contracts. Subject to the limitations of this Section and unless otherwise authorized by law, any type of contract that will promote the best interests of the State may be used, except that cost-plus-a-percentage-of-cost contracts are prohibited and further except that no contract shall provide for a State agency to reimburse a contractor for expenses relating to meals or travel of the contractor's employees or State employees. A cost-reimbursement contract may be used only when a determination is made in writing that a cost-reimbursement contract is likely to be less costly to the State than any other type or that it is impracticable to obtain the item required except under that type of contract. The general form of contracts shall be determined by the chief procurement officer.

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

(30 ILCS 500/20-80)

Sec. 20-80. Contract files.

(a) Written determinations. All written determinations required under this Article shall be placed in the contract file maintained by the chief procurement officer.

(b) Filing with Comptroller. Whenever a grant, defined pursuant to accounting standards established by the Comptroller, or a contract liability, except for: (1) contracts paid from personal services, or (2) contracts between the State and its employees to defer compensation in accordance with Article 24 of the Illinois Pension Code, exceeding $10,000 is incurred by any State agency, a copy of the contract, purchase order, grant, or lease or amendments thereto shall be filed with the Comptroller within 15 days after execution. thereafter. Any cancellation or modification to any such contract liability shall be filed with the Comptroller within 15 days of its execution.

(c) Late filing affidavit. When a contract, purchase order, grant, or lease or amendment thereto required to be filed by this Section has not been filed within 15 30 days of execution, notice shall be filed with the Comptroller within 15 days after execution indicating that a contract or amendment thereto described within the notice has been executed and will not be filed within 15 days after execution, and the Comptroller shall refuse to issue a warrant for payment thereunder until the agency files with the Comptroller the contract, purchase order, grant, or lease or amendment thereto and an affidavit, signed by the chief executive officer of the agency or his or her designee, setting forth an explanation of why the contract liability was not filed within 15 30 days of execution. A copy of this affidavit shall be filed with the Auditor General. No work by any contractor for any State agency shall commence, nor shall any liability for payment by any State agency be incurred, until a final binding contract complying with all provisions of this Code has been executed by the contractor and agency.

(d) Professional and artistic services contracts. No voucher shall be submitted to the Comptroller for a warrant to be drawn for the payment of money from the State treasury or from other funds held by the State Treasurer on account of any contract for services involving professional or artistic skills involving an expenditure of more than $5,000 for the same type of service at the same location during any fiscal year unless the contract is reduced to writing before the services are performed and filed with the Comptroller. When a contract for professional or artistic skills in excess of $5,000 was not reduced to writing before the services were performed, the Comptroller shall refuse to issue a warrant for payment for the services until the State agency files with the Comptroller:

(1) a written contract covering the services, and

(2) an affidavit, signed by the chief executive officer of the State agency or his or her designee, stating that the services for which payment is being made were agreed to before commencement of the services and setting forth an explanation of why the contract was not reduced to writing before the services commenced.

A copy of this affidavit shall be filed with the Auditor General. The Comptroller shall maintain professional or artistic service contracts filed under this Section separately from other filed contracts.

(e) Method of source selection. When a contract or amendment thereto is filed with the Comptroller under this Section, the Comptroller's file shall identify the method of source selection used in obtaining the contract.

(f) Comptroller's request for information. Upon the request of the Comptroller, State agencies shall supply all documents and information reasonably requested by the Comptroller with respect to compliance with this Code within 10 business days after the request.

(g) Application of amendatory provisions. The changes to this Section made by this amendatory Act of the 94th General Assembly apply to contracts, purchase orders, grants, or leases or amendments thereto executed on or after its effective date.

(Source: P.A. 90-572, eff. date - See Sec. 99-5; 91-904, eff. 7-6-00.)

(30 ILCS 500/40-15)

Sec. 40-15. Method of source selection.

(a) Request for information. Except as provided in subsections (b) and (c), all State contracts for leases of real property or capital improvements shall be awarded by a request for information process in accordance with Section 40-20.

(b) Other methods. A request for information process need not be used in procuring any of the following leases:

(1) Property of less than 10,000 square feet.

(2) Rent of less than $100,000 per year.

(3) Duration of less than one year that cannot be renewed.

(4) Specialized space available at only one location.

(5) Renewal or extension of a lease in effect before July 1, 2002; provided that: (i) the chief procurement officer determines in writing that the renewal or extension is in the best interest of the State; (ii) the chief procurement officer submits his or her written determination and the renewal or extension to the Board; (iii) the Board does not object in writing to the renewal or extension within 30 days after its submission; and (iv) the chief procurement officer publishes the renewal or extension in the appropriate volume of the Procurement Bulletin.

(c) Leases with governmental units. Leases with other governmental units may be negotiated without using the request for information process when deemed by the chief procurement officer to be in the best interest of the State.

(Source: P.A. 93-133, eff. 1-1-04; 93-839, eff. 7-30-04.)

(30 ILCS 500/40-25)

Sec. 40-25. Length of leases.

(a) Maximum term. Leases shall be for a term not to exceed 10 years and shall include a termination option in favor of the State after 5 years.

(b) Renewal. Leases may include a renewal option. An option to renew may be exercised only when a State purchasing officer determines in writing that renewal is in the best interest of the State and notice of the exercise of the option is published in the appropriate volume of the Procurement Bulletin at least 60 days prior to the exercise of the option.

(c) Subject to appropriation. All leases shall recite that they are subject to termination and cancellation in any year for which the General Assembly fails to make an appropriation to make payments under the terms of the lease.

(d) Holdover. No lease with a stated term ending on or after the effective date of this amendatory Act of the 94th General Assembly may continue on a month-to-month or other holdover basis for a total of more than 6 months.

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

(30 ILCS 500/50-20)

Sec. 50-20. Exemptions. With the approval of the appropriate chief procurement officer involved, the Governor, or an executive ethics board or commission he or she designates, may exempt named individuals from the prohibitions of Section 50-13 when, in his, her, or its judgment, the public interest in having the individual in the service of the State outweighs the public policy evidenced in that Section. An exemption is effective only when it is filed with the Secretary of State and the Comptroller and includes a statement setting forth the name of the individual and all the pertinent facts that would make that Section applicable, setting forth the reason for the exemption, and declaring the individual exempted from that Section. Exemptions must be filed with the Secretary of State and Comptroller prior to execution of any contracts. A copy of Notice of each exemption shall be published in the Illinois Procurement Bulletin in its electronic form prior to execution of the contract. The changes to this Section made by this amendatory Act of the 94th General Assembly apply to exemptions granted on or after its effective date.

(Source: P.A. 90-572, eff. 2-6-98.)

(30 ILCS 500/50-37 new)

Sec. 50-37. Contract award disclosure.

(a) Definitions. For purposes of this Section:

"Contracting entity" means an entity that would execute any contract with a State agency.

"Key persons" means any persons who (i) have an ownership or distributive income share in the contracting entity that is in excess of 5%, or an amount greater than 60% of the annual salary of the Governor; (ii) serve as executive officers of the contracting entity; (iii) are employed by the contracting entity who are required to register under the Lobbyist Registration Act; (iv) are individuals or entities with whom the contracting entity is contracting who are required to be registered as lobbyists under the Lobbyist Registration Act; and (v) are employed by the contracting entity who are special government agents as defined in Section 4A-101(l) of the Illinois Governmental Ethics Act.

(b) Disclosure. For contracts with an annual value of $50,000 or more all offers from responsive bidders or offerors shall be accompanied by disclosure of the names of the following:

(1) The contracting entity.

(2) Any entity that is a parent of, or owns a controlling interest in, the contracting entity.

(3) Any entity that is a subsidiary of, or in which a controlling interest is owned by the contracting entity.

(4) Any subcontractor that will be contracting with the contracting entity.

(5) Any State, local, or federal political committee that makes or may make political contributions on behalf of or at the direction of the contracting entity.

(6) The key persons of the contracting entity and any subcontractor.

(c) Notice. Notices of contracts let or awarded published in the Procurement Bulletin pursuant to Section 15-25 shall include as part of the notice posted online the names disclosed by the winning bidder or offeror pursuant to subsection (b).

(d) Application. The changes made to this Section made by this amendatory Act of the 94th General Assembly apply to contracts first offered on or after its effective date.

(30 ILCS 500/50-60)

Sec. 50-60. Voidable contracts.

(a) If any contract or amendment thereto is entered into or purchase or expenditure of funds is made at any time in violation of this Code or any other law, the contract or amendment thereto may be declared void by the Comptroller, with the approval of the Treasurer, or the chief procurement officer or may be ratified and affirmed by the Comptroller, with the approval of the Treasurer, or by the chief procurement officer, provided the Comptroller, with the approval of the Treasurer, or the chief procurement officer determines that ratification is in the best interests of the State. If the contract is ratified and affirmed, it shall be without prejudice to the State's rights to any appropriate damages.

(b) If, during the term of a contract, the contracting agency determines that the contractor is delinquent in the payment of debt as set forth in Section 50-11 of this Code, the State agency may declare the contract void if it determines that voiding the contract is in the best interests of the State. The Debt Collection Board shall adopt rules for the implementation of this subsection (b).

(c) If, during the term of a contract, the contracting agency determines that the contractor is in violation of Section 50-10.5 of this Code, the contracting agency shall declare the contract void.

(d) The changes to this Section made by this amendatory Act of the 94th General Assembly apply to actions taken by the Comptroller and Treasurer on or after its effective date.

(Source: P.A. 92-404, eff. 7-1-02; 93-600, eff. 1-1-04.)

ARTICLE 99

Section 99-99. Effective date. This Act takes effect upon becoming law.