97TH GENERAL ASSEMBLY
State of Illinois
2011 and 2012
HB5915

 

Introduced 2/16/2012, by Rep. Jim Watson

 

SYNOPSIS AS INTRODUCED:
 
See Index

    Amends the Illinois Procurement Code. Provides that the Procurement Policy Board shall provide written notice of an alleged conflict of interest to the contractor. Provides that the contractor shall have 30 days to provide a written response to the notice and may request a hearing before the Board. Provides that a State contract may be awarded as a sole source procurement unless a vendor requests a public hearing (rather than, a State contract may not be awarded as a sole source procurement unless approved by the chief procurement officer following a public hearing). Provides that a State contract shall include the general type of work to be performed by all known subcontractors (rather than the expected amount of money the subcontractor will receive under the contract). Provides that the chief procurement officer shall verify the status of a business entity's certificate of registration with the State Board of Elections through the Board's website (rather than, a copy of the certificate of registration must accompany any bid or proposal). Provides that, for certain certifications required for State contracts, if a false certification is made by a subcontractor, the contractor's submitted bid and contract may not be declared void, unless the contractor refuses to terminate the subcontract. Makes changes to a provision concerning procurement communications reporting requirements. Effective immediately.


LRB097 17964 PJG 63187 b

FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

HB5915LRB097 17964 PJG 63187 b

1    AN ACT concerning finance.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Illinois Procurement Code is amended by
5changing Sections 1-15.107, 1-15.108, 5-5, 20-10, 20-25,
620-120, 20-155, 20-160, 50-5, 50-10, 50-10.5, 50-11, 50-12,
750-14, 50-35, 50-39, and 50-60 as follows:
 
8    (30 ILCS 500/1-15.107)
9    Sec. 1-15.107. Subcontract. "Subcontract" means a contract
10between a person and a person who has or is seeking a contract
11subject to this Code, pursuant to which the subcontractor
12provides to the contractor or another subcontractor some or all
13of the goods, services, real property, remuneration, or other
14monetary forms of consideration that are the subject of the
15primary contract and includes, among other things, subleases
16from a lessee of a State agency.
17(Source: P.A. 96-795, eff. 7-1-10 (see Section 5 of P.A. 96-793
18for the effective date of P.A. 96-795).)
 
19    (30 ILCS 500/1-15.108)
20    Sec. 1-15.108. Subcontractor. "Subcontractor" means a
21person or entity that enters into a contractual agreement with
22a total value of $25,000 or more with a person or entity who

 

 

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1has or is seeking a contract subject to this Code pursuant to
2which the person or entity provides some or all of the goods,
3services, real property, remuneration, or other monetary forms
4of consideration that are the subject of the primary State
5contract, including subleases from a lessee of a State
6contract.
7(Source: P.A. 96-920, eff. 7-1-10.)
 
8    (30 ILCS 500/5-5)
9    Sec. 5-5. Procurement Policy Board.
10    (a) Creation. There is created a Procurement Policy Board,
11an agency of the State of Illinois.
12    (b) Authority and duties. The Board shall have the
13authority and responsibility to review, comment upon, and
14recommend, consistent with this Code, rules and practices
15governing the procurement, management, control, and disposal
16of supplies, services, professional or artistic services,
17construction, and real property and capital improvement leases
18procured by the State. The Board shall also have the authority
19to recommend a program for professional development and provide
20opportunities for training in procurement practices and
21policies to chief procurement officers and their staffs in
22order to ensure that all procurement is conducted in an
23efficient, professional, and appropriately transparent manner.
24    Upon a three-fifths vote of its members, the Board may
25review a contract. Upon a three-fifths vote of its members, the

 

 

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1Board may propose procurement rules for consideration by chief
2procurement officers. These proposals shall be published in
3each volume of the Procurement Bulletin. Except as otherwise
4provided by law, the Board shall act upon the vote of a
5majority of its members who have been appointed and are
6serving.
7    (b-5) Reviews, studies, and hearings. The Board may review,
8study, and hold public hearings concerning the implementation
9and administration of this Code. Each chief procurement
10officer, State purchasing officer, procurement compliance
11monitor, and State agency shall cooperate with the Board,
12provide information to the Board, and be responsive to the
13Board in the Board's conduct of its reviews, studies, and
14hearings.
15    (c) Members. The Board shall consist of 5 members appointed
16one each by the 4 legislative leaders and the Governor. Each
17member shall have demonstrated sufficient business or
18professional experience in the area of procurement to perform
19the functions of the Board. No member may be a member of the
20General Assembly.
21    (d) Terms. Of the initial appointees, the Governor shall
22designate one member, as Chairman, to serve a one-year term,
23the President of the Senate and the Speaker of the House shall
24each appoint one member to serve 3-year terms, and the Minority
25Leader of the House and the Minority Leader of the Senate shall
26each appoint one member to serve 2-year terms. Subsequent terms

 

 

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1shall be 4 years. Members may be reappointed for succeeding
2terms.
3    (e) Reimbursement. Members shall receive no compensation
4but shall be reimbursed for any expenses reasonably incurred in
5the performance of their duties.
6    (f) Staff support. Upon a three-fifths vote of its members,
7the Board may employ an executive director. Subject to
8appropriation, the Board also may employ a reasonable and
9necessary number of staff persons.
10    (g) Meetings. Meetings of the Board may be conducted
11telephonically, electronically, or through the use of other
12telecommunications. Written minutes of such meetings shall be
13created and available for public inspection and copying.
14    (h) Procurement recommendations. Upon a three-fifths vote
15of its members, the Board may review a proposal, bid, or
16contract and issue a recommendation to void a contract or
17reject a proposal or bid based on any violation of this Code or
18the existence of a conflict of interest as described in
19subsections (b) and (d) of Section 50-35. A chief procurement
20officer or State purchasing officer shall notify the Board if
21an alleged a conflict of interest is identified, discovered, or
22reasonably suspected to exist. Any person or entity may notify
23the Board of an alleged a conflict of interest. Upon receipt of
24a notice of suspected violation or conflict of interest, the
25Board shall provide written notice of the alleged violation to
26the contractor or subcontractor on that contract. If the

 

 

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1alleged violation is by the subcontractor, written notice shall
2also be provided to the contractor. The contractor or
3subcontractor shall have 30 days to provide a written response
4to the notice, and a hearing before the Board on the alleged
5violation shall be held upon request by the contractor or
6subcontractor. A recommendation of the Board shall be delivered
7to the appropriate chief procurement officer and Executive
8Ethics Commission within 5 days and must be published in the
9next volume of the Procurement Bulletin.
10    (i) After providing notice and a hearing as required by
11subsection (h), the The Board shall refer any alleged
12violations of this Code to the Executive Inspector General in
13addition to or instead of issuing a recommendation to void a
14contract.
15(Source: P.A. 96-795, eff. 7-1-10 (see Section 5 of P.A. 96-793
16for the effective date of changes made by P.A. 96-795).)
 
17    (30 ILCS 500/20-10)
18    (Text of Section from P.A. 96-159, 96-588, 97-96, and
1997-198)
20    Sec. 20-10. Competitive sealed bidding; reverse auction.
21    (a) Conditions for use. All contracts shall be awarded by
22competitive sealed bidding except as otherwise provided in
23Section 20-5.
24    (b) Invitation for bids. An invitation for bids shall be
25issued and shall include a purchase description and the

 

 

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1material contractual terms and conditions applicable to the
2procurement.
3    (c) Public notice. Public notice of the invitation for bids
4shall be published in the Illinois Procurement Bulletin at
5least 14 days before the date set in the invitation for the
6opening of bids.
7    (d) Bid opening. Bids shall be opened publicly in the
8presence of one or more witnesses at the time and place
9designated in the invitation for bids. The name of each bidder,
10the amount of each bid, and other relevant information as may
11be specified by rule shall be recorded. After the award of the
12contract, the winning bid and the record of each unsuccessful
13bid shall be open to public inspection.
14    (e) Bid acceptance and bid evaluation. Bids shall be
15unconditionally accepted without alteration or correction,
16except as authorized in this Code. Bids shall be evaluated
17based on the requirements set forth in the invitation for bids,
18which may include criteria to determine acceptability such as
19inspection, testing, quality, workmanship, delivery, and
20suitability for a particular purpose. Those criteria that will
21affect the bid price and be considered in evaluation for award,
22such as discounts, transportation costs, and total or life
23cycle costs, shall be objectively measurable. The invitation
24for bids shall set forth the evaluation criteria to be used.
25    (f) Correction or withdrawal of bids. Correction or
26withdrawal of inadvertently erroneous bids before or after

 

 

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1award, or cancellation of awards of contracts based on bid
2mistakes, shall be permitted in accordance with rules. After
3bid opening, no changes in bid prices or other provisions of
4bids prejudicial to the interest of the State or fair
5competition shall be permitted. All decisions to permit the
6correction or withdrawal of bids based on bid mistakes shall be
7supported by written determination made by a State purchasing
8officer.
9    (g) Award. The contract shall be awarded with reasonable
10promptness by written notice to the lowest responsible and
11responsive bidder whose bid meets the requirements and criteria
12set forth in the invitation for bids, except when a State
13purchasing officer determines it is not in the best interest of
14the State and by written explanation determines another bidder
15shall receive the award. The explanation shall appear in the
16appropriate volume of the Illinois Procurement Bulletin. The
17written explanation must include:
18        (1) a description of the agency's needs;
19        (2) a determination that the anticipated cost will be
20    fair and reasonable;
21        (3) a listing of all responsible and responsive
22    bidders; and
23        (4) the name of the bidder selected, the total contract
24    price, and the reasons for selecting that bidder.
25    Each chief procurement officer may adopt guidelines to
26implement the requirements of this subsection (g).

 

 

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1    The written explanation shall be filed with the Legislative
2Audit Commission and the Procurement Policy Board and be made
3available for inspection by the public within 30 days after the
4agency's decision to award the contract.
5    (h) Multi-step sealed bidding. When it is considered
6impracticable to initially prepare a purchase description to
7support an award based on price, an invitation for bids may be
8issued requesting the submission of unpriced offers to be
9followed by an invitation for bids limited to those bidders
10whose offers have been qualified under the criteria set forth
11in the first solicitation.
12    (i) Alternative procedures. Notwithstanding any other
13provision of this Act to the contrary, the Director of the
14Illinois Power Agency may create alternative bidding
15procedures to be used in procuring professional services under
16subsection (a) of Section 1-75 and subsection (d) of Section
171-78 of the Illinois Power Agency Act and Section 16-111.5(c)
18of the Public Utilities Act and to procure renewable energy
19resources under Section 1-56 of the Illinois Power Agency Act.
20These alternative procedures shall be set forth together with
21the other criteria contained in the invitation for bids, and
22shall appear in the appropriate volume of the Illinois
23Procurement Bulletin.
24    (j) Reverse auction. Notwithstanding any other provision
25of this Section and in accordance with rules adopted by the
26Director of Central Management Services as chief procurement

 

 

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1officer, a State purchasing officer under that chief
2procurement officer officer's jurisdiction may procure
3supplies or services through a competitive electronic auction
4bidding process after the purchasing officer explains in
5writing to the chief procurement officer determines his or her
6determination that the use of such a process will be in the
7best interest of the State. The chief procurement officer shall
8publish that determination in his or her next volume of the
9Illinois Procurement Bulletin.
10    An invitation for bids shall be issued and shall include
11(i) a procurement description, (ii) all contractual terms,
12whenever practical, and (iii) conditions applicable to the
13procurement, including a notice that bids will be received in
14an electronic auction manner.
15    Public notice of the invitation for bids shall be given in
16the same manner as provided in subsection (c).
17    Bids shall be accepted electronically at the time and in
18the manner designated in the invitation for bids. During the
19auction, a bidder's price shall be disclosed to other bidders.
20Bidders shall have the opportunity to reduce their bid prices
21during the auction. At the conclusion of the auction, the
22record of the bid prices received and the name of each bidder
23shall be open to public inspection.
24    After the auction period has terminated, withdrawal of bids
25shall be permitted as provided in subsection (f).
26    The contract shall be awarded within 60 days after the

 

 

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1auction by written notice to the lowest responsible bidder, or
2all bids shall be rejected except as otherwise provided in this
3Code. Extensions of the date for the award may be made by
4mutual written consent of the State purchasing officer and the
5lowest responsible bidder.
6    This subsection does not apply to (i) procurements of
7professional and artistic services, (ii) including but not
8limited to telecommunications services, communication
9communications services, Internet services, and information
10services, and (iii) (ii) contracts for construction projects,
11including design professional services.
12(Source: P.A. 95-481, eff. 8-28-07; 96-159, eff. 8-10-09;
1396-588, eff. 8-18-09; 97-96, eff. 7-13-11.)
 
14    (Text of Section from P.A. 96-159, 96-795, 97-96, and
1597-198)
16    Sec. 20-10. Competitive sealed bidding; reverse auction.
17    (a) Conditions for use. All contracts shall be awarded by
18competitive sealed bidding except as otherwise provided in
19Section 20-5.
20    (b) Invitation for bids. An invitation for bids shall be
21issued and shall include a purchase description and the
22material contractual terms and conditions applicable to the
23procurement.
24    (c) Public notice. Public notice of the invitation for bids
25shall be published in the Illinois Procurement Bulletin at

 

 

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1least 14 days before the date set in the invitation for the
2opening of bids.
3    (d) Bid opening. Bids shall be opened publicly in the
4presence of one or more witnesses at the time and place
5designated in the invitation for bids. The name of each bidder,
6the amount of each bid, and other relevant information as may
7be specified by rule shall be recorded. After the award of the
8contract, the winning bid and the record of each unsuccessful
9bid shall be open to public inspection.
10    (e) Bid acceptance and bid evaluation. Bids shall be
11unconditionally accepted without alteration or correction,
12except as authorized in this Code. Bids shall be evaluated
13based on the requirements set forth in the invitation for bids,
14which may include criteria to determine acceptability such as
15inspection, testing, quality, workmanship, delivery, and
16suitability for a particular purpose. Those criteria that will
17affect the bid price and be considered in evaluation for award,
18such as discounts, transportation costs, and total or life
19cycle costs, shall be objectively measurable. The invitation
20for bids shall set forth the evaluation criteria to be used.
21    (f) Correction or withdrawal of bids. Correction or
22withdrawal of inadvertently erroneous bids before or after
23award, or cancellation of awards of contracts based on bid
24mistakes, shall be permitted in accordance with rules. After
25bid opening, no changes in bid prices or other provisions of
26bids prejudicial to the interest of the State or fair

 

 

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1competition shall be permitted. All decisions to permit the
2correction or withdrawal of bids based on bid mistakes shall be
3supported by written determination made by a State purchasing
4officer.
5    (g) Award. The contract shall be awarded with reasonable
6promptness by written notice to the lowest responsible and
7responsive bidder whose bid meets the requirements and criteria
8set forth in the invitation for bids, except when a State
9purchasing officer determines it is not in the best interest of
10the State and by written explanation determines another bidder
11shall receive the award. The explanation shall appear in the
12appropriate volume of the Illinois Procurement Bulletin. The
13written explanation must include:
14        (1) a description of the agency's needs;
15        (2) a determination that the anticipated cost will be
16    fair and reasonable;
17        (3) a listing of all responsible and responsive
18    bidders; and
19        (4) the name of the bidder selected, the total contract
20    price pricing, and the reasons for selecting that bidder.
21    Each chief procurement officer may adopt guidelines to
22implement the requirements of this subsection (g).
23    The written explanation shall be filed with the Legislative
24Audit Commission and the Procurement Policy Board and be made
25available for inspection by the public within 30 days after the
26agency's decision to award the contract.

 

 

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1    (h) Multi-step sealed bidding. When it is considered
2impracticable to initially prepare a purchase description to
3support an award based on price, an invitation for bids may be
4issued requesting the submission of unpriced offers to be
5followed by an invitation for bids limited to those bidders
6whose offers have been qualified under the criteria set forth
7in the first solicitation.
8    (i) Alternative procedures. Notwithstanding any other
9provision of this Act to the contrary, the Director of the
10Illinois Power Agency may create alternative bidding
11procedures to be used in procuring professional services under
12subsection (a) of Section 1-75 and subsection (d) of Section
131-78 of the Illinois Power Agency Act and Section 16-111.5(c)
14of the Public Utilities Act and to procure renewable energy
15resources under Section 1-56 of the Illinois Power Agency Act.
16These alternative procedures shall be set forth together with
17the other criteria contained in the invitation for bids, and
18shall appear in the appropriate volume of the Illinois
19Procurement Bulletin.
20    (j) Reverse auction. Notwithstanding any other provision
21of this Section and in accordance with rules adopted by the
22chief procurement officer, that chief procurement officer may
23procure supplies or services through a competitive electronic
24auction bidding process after the chief procurement officer
25determines that the use of such a process will be in the best
26interest of the State. The chief procurement officer shall

 

 

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1publish that determination in his or her next volume of the
2Illinois Procurement Bulletin.
3    An invitation for bids shall be issued and shall include
4(i) a procurement description, (ii) all contractual terms,
5whenever practical, and (iii) conditions applicable to the
6procurement, including a notice that bids will be received in
7an electronic auction manner.
8    Public notice of the invitation for bids shall be given in
9the same manner as provided in subsection (c).
10    Bids shall be accepted electronically at the time and in
11the manner designated in the invitation for bids. During the
12auction, a bidder's price shall be disclosed to other bidders.
13Bidders shall have the opportunity to reduce their bid prices
14during the auction. At the conclusion of the auction, the
15record of the bid prices received and the name of each bidder
16shall be open to public inspection.
17    After the auction period has terminated, withdrawal of bids
18shall be permitted as provided in subsection (f).
19    The contract shall be awarded within 60 days after the
20auction by written notice to the lowest responsible bidder, or
21all bids shall be rejected except as otherwise provided in this
22Code. Extensions of the date for the award may be made by
23mutual written consent of the State purchasing officer and the
24lowest responsible bidder.
25    This subsection does not apply to (i) procurements of
26professional and artistic services, (ii) telecommunications

 

 

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1services, communication services, and information services,
2and (iii) contracts for construction projects, including
3design professional services.
4(Source: P.A. 96-159, eff. 8-10-09; 96-795, eff. 7-1-10 (see
5Section 5 of P.A. 96-793 for the effective date of changes made
6by P.A. 96-795); 97-96, eff. 7-13-11.)
 
7    (30 ILCS 500/20-25)
8    Sec. 20-25. Sole source procurements.
9    (a) In accordance with standards set by rule, contracts may
10be awarded without use of the specified method of source
11selection when there is only one economically feasible source
12for the item. A State contract may not be awarded as a sole
13source procurement unless a vendor submits a written request
14for approved by the chief procurement officer following a
15public hearing at which the chief procurement officer and
16purchasing agency present written justification for the
17procurement method. The Procurement Policy Board, the sole
18source contractor, and the public may present testimony.
19    (b) (Blank). This Section may not be used as a basis for
20amending a contract for professional or artistic services if
21the amendment would result in an increase in the amount paid
22under the contract of more than 5% of the initial award, or
23would extend the contract term beyond the time reasonably
24needed for a competitive procurement, not to exceed 2 months.
25    (c) Notice of intent to enter into a sole source contract

 

 

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1shall be provided to the Procurement Policy Board and published
2in the online electronic Bulletin at least 14 days before the
3public hearing required in subsection (a). The notice shall
4include the sole source procurement justification form
5prescribed by the Board, a description of the item to be
6procured, the intended sole source contractor, and the date,
7time, and location of the public hearing. A copy of the notice
8and all documents provided at the hearing shall be included in
9the subsequent Procurement Bulletin.
10    (d) By August 1 each year, each chief procurement officer
11shall file a report with the General Assembly identifying each
12contract the officer sought under the sole source procurement
13method and providing the justification given for seeking sole
14source as the procurement method for each of those contracts.
15(Source: P.A. 96-795, eff. 7-1-10 (see Section 5 of P.A. 96-793
16for the effective date of changes made by P.A. 96-795); 96-920,
17eff. 7-1-10.)
 
18    (30 ILCS 500/20-120)
19    Sec. 20-120. Subcontractors.
20    (a) Any contract granted under this Code shall state
21whether the services of a subcontractor will or may be used.
22The contract shall include the names and addresses of all known
23subcontractors with subcontracts with an annual value of more
24than $25,000 and the general type of work to be performed by
25these subcontractors. Upon the request of the chief procurement

 

 

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1officer appointed pursuant to subsection (a)(2) of Section
210-20, the expected amount of money each will receive under the
3contract. For procurements subject to the authority of the
4chief procurement officer appointed pursuant to subsection
5(a)(2) of Section 10-20, the contract shall include only the
6names and addresses of all known subcontractors of the primary
7contractor with subcontracts with an annual value of more than
8$25,000. The contractor shall provide the chief procurement
9officer or State purchasing officer a copy of a any subcontract
10with an annual value of more than $25,000 so identified within
1130 20 days after the request is made. Prior to submission of
12the subcontract to the chief procurement officer, a execution
13of the State contract or after execution of the subcontract,
14whichever is later. A subcontractor, or contractor on behalf of
15a subcontractor, may redact identify information that is deemed
16proprietary or confidential. If the chief procurement officer
17determines the information is not relevant to the primary
18contract, the chief procurement officer may excuse the
19inclusion of the information. If the chief procurement officer
20determines the information is proprietary or could harm the
21business interest of the subcontractor, the chief procurement
22officer may, in his or her discretion, redact the information.
23Redacted information shall not become part of the public
24record.
25    (b) If at any time during the term of a contract, a
26contractor adds or changes any subcontractors, he or she shall

 

 

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1promptly notify, in writing, the chief procurement officer,
2State purchasing officer, or their designee of the names and
3addresses of and the expected amount of money each new or
4replaced subcontractor and the general type of work to be
5performed. Upon the request of the chief procurement officer
6appointed pursuant to subsection (a)(2) of Section 10-20, the
7contractor shall provide the chief procurement officer a copy
8of any new or amended subcontract so identified within 30 days
9after the request is made. Prior to submission of the new or
10amended subcontract to the chief procurement officer, a
11subcontractor or contractor on behalf of a subcontractor may
12redact information that is deemed proprietary or confidential.
13will receive. The contractor shall provide to the responsible
14chief procurement officer a copy of the subcontract within 20
15days after the execution of the subcontract.
16    (c) In addition to any other requirements of this Code, a
17subcontract subject to this Section must include all of the
18subcontractor's certifications required by Article 50 of the
19Code.
20    (d) This Section applies to procurements solicited on or
21after the effective date of this amendatory Act of the 96th
22General Assembly. The changes made to this Section by this
23amendatory Act of the 97th General Assembly apply to
24procurements solicited on or after the effective date of this
25amendatory Act of the 97th General Assembly.
26(Source: P.A. 96-795, eff. 7-1-10 (see Section 5 of P.A. 96-793

 

 

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1for the effective date of P.A. 96-795); 96-920, eff. 7-1-10.)
 
2    (30 ILCS 500/20-155)
3    Sec. 20-155. Solicitation and contract documents.
4    (a) After award of a contract and subject to provisions of
5the Freedom of Information Act, the procuring agency shall make
6available for public inspection and copying all pre-award,
7post-award, administration, and close-out documents relating
8to that particular contract.
9    (b) A procurement file shall be maintained for all
10contracts, regardless of the method of procurement. The
11procurement file shall contain the basis on which the award is
12made, all submitted bids and proposals, all evaluation
13materials, score sheets and all other documentation related to
14or prepared in conjunction with evaluation, negotiation, and
15the award process. The procurement file shall contain a written
16determination, signed by the chief procurement officer or State
17purchasing officer, setting forth the reasoning for the
18contract award decision. The procurement file shall not include
19trade secrets or other competitively sensitive, confidential,
20or proprietary information. The procurement file shall be open
21to public inspection within 7 business days following award of
22the contract.
23(Source: P.A. 96-795, eff. 7-1-10 (see Section 5 of P.A. 96-793
24for the effective date of changes made by P.A. 96-795).)
 

 

 

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1    (30 ILCS 500/20-160)
2    Sec. 20-160. Business entities; certification;
3registration with the State Board of Elections.
4    (a) For purposes of this Section, the terms "business
5entity", "contract", "State contract", "contract with a State
6agency", "State agency", "affiliated entity", and "affiliated
7person" have the meanings ascribed to those terms in Section
850-37.
9    (b) Every bid submitted to and every contract executed by
10the State on or after January 1, 2009 (the effective date of
11Public Act 95-971) shall contain (1) a certification by the
12bidder or contractor that either (i) the bidder or contractor
13is not required to register as a business entity with the State
14Board of Elections pursuant to this Section or (ii) the bidder
15or contractor has registered as a business entity with the
16State Board of Elections and acknowledges a continuing duty to
17update the registration and (2) a statement that the contract
18is voidable under Section 50-60 for the bidder's or
19contractor's failure to comply with this Section.
20    (c) Within 30 days after the effective date of this
21amendatory Act of the 95th General Assembly, each business
22entity (i) whose aggregate bids and proposals on State
23contracts annually total more than $50,000, (ii) whose
24aggregate bids and proposals on State contracts combined with
25the business entity's aggregate annual total value of State
26contracts exceed $50,000, or (iii) whose contracts with State

 

 

HB5915- 21 -LRB097 17964 PJG 63187 b

1agencies, in the aggregate, annually total more than $50,000
2shall register with the State Board of Elections in accordance
3with Section 9-35 of the Election Code. A business entity
4required to register under this subsection shall submit a copy
5of the certificate of registration to the applicable chief
6procurement officer within 90 days after the effective date of
7this amendatory Act of the 95th General Assembly. A business
8entity required to register under this subsection due to item
9(i) or (ii) has a continuing duty to ensure that the
10registration is accurate during the period beginning on the
11date of registration and ending on the day after the date the
12contract is awarded; any change in information must be reported
13to the State Board of Elections 5 business days following such
14change or no later than a day before the contract is awarded,
15whichever date is earlier. A business entity required to
16register under this subsection due to item (iii) has a
17continuing duty to ensure that the registration is accurate in
18accordance with subsection (e).
19    (d) Any business entity, not required under subsection (c)
20to register within 30 days after the effective date of this
21amendatory Act of the 95th General Assembly, whose aggregate
22bids and proposals on State contracts annually total more than
23$50,000, or whose aggregate bids and proposals on State
24contracts combined with the business entity's aggregate annual
25total value of State contracts exceed $50,000, shall register
26with the State Board of Elections in accordance with Section

 

 

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19-35 of the Election Code prior to submitting to a State agency
2the bid or proposal whose value causes the business entity to
3fall within the monetary description of this subsection. A
4business entity required to register under this subsection has
5a continuing duty to ensure that the registration is accurate
6during the period beginning on the date of registration and
7ending on the day after the date the contract is awarded. Any
8change in information must be reported to the State Board of
9Elections within 5 business days following such change or no
10later than a day before the contract is awarded, whichever date
11is earlier.
12    (e) A business entity whose contracts with State agencies,
13in the aggregate, annually total more than $50,000 must
14maintain its registration under this Section and has a
15continuing duty to ensure that the registration is accurate for
16the duration of the term of office of the incumbent
17officeholder awarding the contracts or for a period of 2 years
18following the expiration or termination of the contracts,
19whichever is longer. A business entity, required to register
20under this subsection, has a continuing duty to report any
21changes on a quarterly basis to the State Board of Elections
22within 10 business days following the last day of January,
23April, July, and October of each year. Any update pursuant to
24this paragraph that is received beyond that date is presumed
25late and the civil penalty authorized by subsection (e) of
26Section 9-35 of the Election Code (10 ILCS 5/9-35) may be

 

 

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1assessed.
2    Also, if a business entity required to register under this
3subsection has a pending bid or proposal, any change in
4information shall be reported to the State Board of Elections
5within 5 business days following such change or no later than a
6day before the contract is awarded, whichever date is earlier.
7    (f) A business entity's continuing duty under this Section
8to ensure the accuracy of its registration includes the
9requirement that the business entity notify the State Board of
10Elections of any change in information, including but not
11limited to changes of affiliated entities or affiliated
12persons.
13    (g) Upon the submission of a bid or proposal A copy of a
14certificate of registration must accompany any bid or proposal
15for a contract with a State agency by a business entity
16required to register under this Section, the . A chief
17procurement officer shall verify the status of the business
18entity's certificate of registration through the State Board of
19Elections website not accept a bid or proposal unless the
20certificate is submitted to the agency with the bid or
21proposal.
22    (h) A registration, and any changes to a registration, must
23include the business entity's verification of accuracy and
24subjects the business entity to the penalties of the laws of
25this State for perjury.
26    In addition to any penalty under Section 9-35 of the

 

 

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1Election Code, intentional, willful, or material failure to
2disclose information required for registration shall render
3the contract, bid, proposal, or other procurement relationship
4voidable by the chief procurement officer if he or she deems it
5to be in the best interest of the State of Illinois.
6    (i) This Section applies regardless of the method of source
7selection used in awarding the contract.
8(Source: P.A. 96-795, eff. 7-1-10 (see Section 5 of P.A. 96-793
9for the effective date of changes made by P.A. 96-795); 96-848,
10eff. 1-1-10; 97-333, eff. 8-12-11.)
 
11    (30 ILCS 500/50-5)
12    Sec. 50-5. Bribery.
13    (a) Prohibition. No person or business shall be awarded a
14contract or subcontract under this Code who:
15        (1) has been convicted under the laws of Illinois or
16    any other state of bribery or attempting to bribe an
17    officer or employee of the State of Illinois or any other
18    state in that officer's or employee's official capacity; or
19        (2) has made an admission of guilt of that conduct that
20    is a matter of record but has not been prosecuted for that
21    conduct.
22    (b) Businesses. No business shall be barred from
23contracting with any unit of State or local government, or
24subcontracting under such a contract, as a result of a
25conviction under this Section of any employee or agent of the

 

 

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1business if the employee or agent is no longer employed by the
2business and:
3        (1) the business has been finally adjudicated not
4    guilty; or
5        (2) the business demonstrates to the governmental
6    entity with which it seeks to contract or which is a
7    signatory to the contract to which the subcontract relates,
8    and that entity finds that the commission of the offense
9    was not authorized, requested, commanded, or performed by a
10    director, officer, or high managerial agent on behalf of
11    the business as provided in paragraph (2) of subsection (a)
12    of Section 5-4 of the Criminal Code of 1961.
13    (c) Conduct on behalf of business. For purposes of this
14Section, when an official, agent, or employee of a business
15committed the bribery or attempted bribery on behalf of the
16business and in accordance with the direction or authorization
17of a responsible official of the business, the business shall
18be chargeable with the conduct.
19    (d) Certification. Every bid submitted to and contract
20executed by the State and every subcontract subject to Section
2120-120 of this Code shall contain a certification by the
22contractor or the subcontractor, respectively, that the
23contractor or subcontractor is not barred from being awarded a
24contract or subcontract under this Section and acknowledges
25that the chief procurement officer may declare the related
26contract void if any certifications required by this Section

 

 

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1are false. If the false certification is made by a
2subcontractor, then the contractor's submitted bid and the
3executed contract may not be declared void, unless the
4contractor refuses to terminate the subcontract upon the
5State's request after a finding that the subcontract's
6certification was false. A contractor or subcontractor who
7makes a false statement, material to the certification, commits
8a Class 3 felony.
9(Source: P.A. 96-795, eff. 7-1-10 (see Section 5 of P.A. 96-793
10for the effective date of changes made by P.A. 96-795).)
 
11    (30 ILCS 500/50-10)
12    Sec. 50-10. Felons.
13    (a) Unless otherwise provided, no person or business
14convicted of a felony shall do business with the State of
15Illinois or any State agency, or enter into a subcontract, from
16the date of conviction until 5 years after the date of
17completion of the sentence for that felony, unless no person
18held responsible by a prosecutorial office for the facts upon
19which the conviction was based continues to have any
20involvement with the business.
21    (b) Every bid submitted to and contract executed by the
22State and every subcontract subject to Section 20-120 of this
23Code shall contain a certification by the bidder or contractor
24or subcontractor, respectively, that the bidder, contractor,
25or subcontractor is not barred from being awarded a contract or

 

 

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1subcontract under this Section and acknowledges that the chief
2procurement officer may declare the related contract void if
3any of the certifications required by this Section are false.
4If the false certification is made by a subcontractor, then the
5contractor's submitted bid and the executed contract may not be
6declared void, unless the contractor refuses to terminate the
7subcontract upon the State's request after a finding that the
8subcontract's certification was false.
9(Source: P.A. 96-795, eff. 7-1-10 (see Section 5 of P.A. 96-793
10for the effective date of changes made by P.A. 96-795).)
 
11    (30 ILCS 500/50-10.5)
12    Sec. 50-10.5. Prohibited bidders and contractors.
13    (a) Unless otherwise provided, no business shall bid or
14enter into a contract or subcontract under this Code if the
15business or any officer, director, partner, or other managerial
16agent of the business has been convicted of a felony under the
17Sarbanes-Oxley Act of 2002 or a Class 3 or Class 2 felony under
18the Illinois Securities Law of 1953 for a period of 5 years
19from the date of conviction.
20    (b) Every bid submitted to and contract executed by the
21State and every subcontract subject to Section 20-120 of this
22Code shall contain a certification by the bidder, contractor,
23or subcontractor, respectively, that the bidder, contractor,
24or subcontractor is not barred from being awarded a contract or
25subcontract under this Section and acknowledges that the chief

 

 

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1procurement officer shall declare the related contract void if
2any of the certifications completed pursuant to this subsection
3(b) are false. If the false certification is made by a
4subcontractor, then the contractor's submitted bid and the
5executed contract may not be declared void, unless the
6contractor refuses to terminate the subcontract upon the
7State's request after a finding that the subcontract's
8certification was false.
9    (c) If a business is not a natural person, the prohibition
10in subsection (a) applies only if:
11        (1) the business itself is convicted of a felony
12    referenced in subsection (a); or
13        (2) the business is ordered to pay punitive damages
14    based on the conduct of any officer, director, partner, or
15    other managerial agent who has been convicted of a felony
16    referenced in subsection (a).
17    (d) A natural person who is convicted of a felony
18referenced in subsection (a) remains subject to Section 50-10.
19    (e) No person or business shall bid or enter into a
20contract under this Code if the person or business:
21        (1) assisted the State of Illinois or a State agency in
22    determining whether there is a need for a contract except
23    as part of a response to a publicly issued request for
24    information; or
25        (2) assisted an employee of the State of Illinois who,
26    by the nature of his or her duties, has the authority to

 

 

HB5915- 29 -LRB097 17964 PJG 63187 b

1    participate personally and substantially in the decision
2    to award a State contract or a State agency by reviewing,
3    drafting, or preparing any invitation for bids, a request
4    for proposal, or request for information or provided
5    similar assistance except as part of a publicly issued
6    opportunity to review drafts of all or part of these
7    documents.
8    This subsection does not prohibit a person or business from
9submitting a bid or proposal or entering into a contract if the
10person or business: (i) initiates a communication with an
11employee to provide general information about products,
12services, or industry best practices and, if applicable, that
13communication is documented in accordance with Section 50-39 or
14(ii) responds to a communication initiated by an employee of
15the State for the purposes of providing information to evaluate
16new products, trends, services, or technologies.
17    For purposes of this subsection (e), "business" includes
18all individuals with whom a business is affiliated, including,
19but not limited to, any officer, agent, employee, consultant,
20independent contractor, director, partner, or manager, or
21shareholder of a business.
22(Source: P.A. 96-795, eff. 7-1-10 (see Section 5 of P.A. 96-793
23for the effective date of changes made by P.A. 96-795); 96-920,
24eff. 7-1-10.)
 
25    (30 ILCS 500/50-11)

 

 

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1    Sec. 50-11. Debt delinquency.
2    (a) No person shall submit a bid for or enter into a
3contract or subcontract under this Code if that person knows or
4should know that he or she or any affiliate is delinquent in
5the payment of any debt to the State, unless the person or
6affiliate has entered into a deferred payment plan to pay off
7the debt. For purposes of this Section, the phrase "delinquent
8in the payment of any debt" shall be determined by the Debt
9Collection Bureau. For purposes of this Section, the term
10"affiliate" means any entity that (1) directly, indirectly, or
11constructively controls another entity, (2) is directly,
12indirectly, or constructively controlled by another entity, or
13(3) is subject to the control of a common entity. For purposes
14of this subsection (a), a person controls an entity if the
15person owns, directly or individually, more than 10% of the
16voting securities of that entity. As used in this subsection
17(a), the term "voting security" means a security that (1)
18confers upon the holder the right to vote for the election of
19members of the board of directors or similar governing body of
20the business or (2) is convertible into, or entitles the holder
21to receive upon its exercise, a security that confers such a
22right to vote. A general partnership interest is a voting
23security.
24    (b) Every bid submitted to and contract executed by the
25State and every subcontract subject to Section 20-120 of this
26Code shall contain a certification by the bidder, contractor,

 

 

HB5915- 31 -LRB097 17964 PJG 63187 b

1or subcontractor, respectively, that the contractor or the
2subcontractor and its affiliate is not barred from being
3awarded a contract or subcontract under this Section and
4acknowledges that the chief procurement officer may declare the
5related contract void if any of the certifications completed
6pursuant to this subsection (b) are false. If the false
7certification is made by a subcontractor, then the contractor's
8submitted bid and the executed contract may not be declared
9void, unless the contractor refuses to terminate the
10subcontract upon the State's request after a finding that the
11subcontract's certification was false.
12(Source: P.A. 96-493, eff. 1-1-10; 96-795, eff. 7-1-10 (see
13Section 5 of P.A. 96-793 for effective date of changes made by
14P.A. 96-795); 96-1000, eff. 7-2-10.)
 
15    (30 ILCS 500/50-12)
16    Sec. 50-12. Collection and remittance of Illinois Use Tax.
17    (a) No person shall enter into a contract with a State
18agency or enter into a subcontract under this Code unless the
19person and all affiliates of the person collect and remit
20Illinois Use Tax on all sales of tangible personal property
21into the State of Illinois in accordance with the provisions of
22the Illinois Use Tax Act regardless of whether the person or
23affiliate is a "retailer maintaining a place of business within
24this State" as defined in Section 2 of the Use Tax Act. For
25purposes of this Section, the term "affiliate" means any entity

 

 

HB5915- 32 -LRB097 17964 PJG 63187 b

1that (1) directly, indirectly, or constructively controls
2another entity, (2) is directly, indirectly, or constructively
3controlled by another entity, or (3) is subject to the control
4of a common entity. For purposes of this subsection (a), an
5entity controls another entity if it owns, directly or
6individually, more than 10% of the voting securities of that
7entity. As used in this subsection (a), the term "voting
8security" means a security that (1) confers upon the holder the
9right to vote for the election of members of the board of
10directors or similar governing body of the business or (2) is
11convertible into, or entitles the holder to receive upon its
12exercise, a security that confers such a right to vote. A
13general partnership interest is a voting security.
14    (b) Every bid submitted and contract executed by the State
15and every subcontract subject to Section 20-120 of this Code
16shall contain a certification by the bidder, contractor, or
17subcontractor, respectively, that the bidder, contractor, or
18subcontractor is not barred from bidding for or entering into a
19contract under subsection (a) of this Section and acknowledges
20that the chief procurement officer may declare the related
21contract void if any of the certifications completed pursuant
22to this subsection (b) are false. If the false certification is
23made by a subcontractor, then the contractor's submitted bid
24and the executed contract may not be declared void, unless the
25contractor refuses to terminate the subcontract upon the
26State's request after a finding that the subcontract's

 

 

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1certification was false.
2(Source: P.A. 96-795, eff. 7-1-10 (see Section 5 of P.A. 96-793
3for the effective date of changes made by P.A. 96-795).)
 
4    (30 ILCS 500/50-14)
5    Sec. 50-14. Environmental Protection Act violations.
6    (a) Unless otherwise provided, no person or business found
7by a court or the Pollution Control Board to have committed a
8willful or knowing violation of the Environmental Protection
9Act shall do business with the State of Illinois or any State
10agency or enter into a subcontract that is subject to this Code
11from the date of the order containing the finding of violation
12until 5 years after that date, unless the person or business
13can show that no person involved in the violation continues to
14have any involvement with the business.
15    (b) A person or business otherwise barred from doing
16business with the State of Illinois or any State agency or
17subcontracting under this Code by subsection (a) may be allowed
18to do business with the State of Illinois or any State agency
19if it is shown that there is no practicable alternative to the
20State to contracting with that person or business.
21    (c) Every bid submitted to and contract executed by the
22State and every subcontract subject to Section 20-120 of this
23Code shall contain a certification by the bidder, contractor,
24or subcontractor, respectively, that the bidder, contractor,
25or subcontractor is not barred from being awarded a contract or

 

 

HB5915- 34 -LRB097 17964 PJG 63187 b

1subcontract under this Section and acknowledges that the
2contracting State agency may declare the related contract void
3if any of the certifications completed pursuant to this
4subsection (c) are false. If the false certification is made by
5a subcontractor, then the contractor's submitted bid and the
6executed contract may not be declared void, unless the
7contractor refuses to terminate the subcontract upon the
8State's request after a finding that the subcontract's
9certification was false.
10(Source: P.A. 96-795, eff. 7-1-10 (see Section 5 of P.A. 96-793
11for the effective date of changes made by P.A. 96-795).)
 
12    (30 ILCS 500/50-35)
13    Sec. 50-35. Financial disclosure and potential conflicts
14of interest.
15    (a) All offers from responsive bidders or offerors with an
16annual value of more than $25,000, and all subcontracts
17identified as provided by Section 20-120 of this Code, shall be
18accompanied by disclosure of the financial interests of the
19contractor, bidder, or proposer and each subcontractor to be
20used. The financial disclosure of each successful bidder or
21offeror and its subcontractors shall be incorporated as a
22material term of the contract and shall become part of the
23publicly available contract or procurement file maintained by
24the appropriate chief procurement officer. Each disclosure
25under this Section and Section 50-34 shall be signed and made

 

 

HB5915- 35 -LRB097 17964 PJG 63187 b

1under penalty of perjury by an authorized officer or employee
2on behalf of the bidder or offeror, and must be filed with the
3Procurement Policy Board.
4    (b) Disclosure shall include any ownership or distributive
5income share that is in excess of 5%, or an amount greater than
660% of the annual salary of the Governor, of the disclosing
7entity or its parent entity, whichever is less, unless the
8contractor, bidder, or subcontractor (i) is a publicly traded
9entity subject to Federal 10K reporting, in which case it may
10submit its 10K disclosure in place of the prescribed
11disclosure, or (ii) is a privately held entity that is exempt
12from Federal 10k reporting but has more than 200 shareholders,
13in which case it may submit the information that Federal 10k
14reporting companies are required to report under 17 CFR 229.401
15and list the names of any person or entity holding any
16ownership share that is in excess of 5% in place of the
17prescribed disclosure. The form of disclosure shall be
18prescribed by the applicable chief procurement officer and must
19include at least the names, addresses, and dollar or
20proportionate share of ownership of each person identified in
21this Section, their instrument of ownership or beneficial
22relationship, and notice of any potential conflict of interest
23resulting from the current ownership or beneficial
24relationship of each person identified in this Section having
25in addition any of the following relationships:
26        (1) State employment, currently or in the previous 3

 

 

HB5915- 36 -LRB097 17964 PJG 63187 b

1    years, including contractual employment of services.
2        (2) State employment of spouse, father, mother, son, or
3    daughter, including contractual employment for services in
4    the previous 2 years.
5        (3) Elective status; the holding of elective office of
6    the State of Illinois, the government of the United States,
7    any unit of local government authorized by the Constitution
8    of the State of Illinois or the statutes of the State of
9    Illinois currently or in the previous 3 years.
10        (4) Relationship to anyone holding elective office
11    currently or in the previous 2 years; spouse, father,
12    mother, son, or daughter.
13        (5) Appointive office; the holding of any appointive
14    government office of the State of Illinois, the United
15    States of America, or any unit of local government
16    authorized by the Constitution of the State of Illinois or
17    the statutes of the State of Illinois, which office
18    entitles the holder to compensation in excess of expenses
19    incurred in the discharge of that office currently or in
20    the previous 3 years.
21        (6) Relationship to anyone holding appointive office
22    currently or in the previous 2 years; spouse, father,
23    mother, son, or daughter.
24        (7) Employment, currently or in the previous 3 years,
25    as or by any registered lobbyist of the State government.
26        (8) Relationship to anyone who is or was a registered

 

 

HB5915- 37 -LRB097 17964 PJG 63187 b

1    lobbyist in the previous 2 years; spouse, father, mother,
2    son, or daughter.
3        (9) Compensated employment, currently or in the
4    previous 3 years, by any registered election or re-election
5    committee registered with the Secretary of State or any
6    county clerk in the State of Illinois, or any political
7    action committee registered with either the Secretary of
8    State or the Federal Board of Elections.
9        (10) Relationship to anyone; spouse, father, mother,
10    son, or daughter; who is or was a compensated employee in
11    the last 2 years of any registered election or re-election
12    committee registered with the Secretary of State or any
13    county clerk in the State of Illinois, or any political
14    action committee registered with either the Secretary of
15    State or the Federal Board of Elections.
16    (b-1) The disclosure required under this Section must also
17include the name and address of each lobbyist required to
18register under the Lobbyist Registration Act and other agent of
19the bidder or offeror who is not identified under subsections
20(a) and (b), and who has communicated, is communicating, or may
21communicate with any State officer or employee concerning the
22bid or offer, and is not an employee of the bidder or offeror.
23The disclosure under this subsection is a continuing obligation
24and must be promptly supplemented for accuracy throughout the
25process and throughout the term of the contract if the bid or
26offer is successful.

 

 

HB5915- 38 -LRB097 17964 PJG 63187 b

1    (b-2) The disclosure required under this Section must also
2include, for each of the persons identified in subsection (b)
3or (b-1), each of the following that occurred within the
4previous 10 years: debarment from contracting with any
5governmental entity; professional licensure discipline;
6bankruptcies; adverse civil judgments and administrative
7findings; and criminal felony convictions. The disclosure
8under this subsection is a continuing obligation and must be
9promptly supplemented for accuracy throughout the process and
10throughout the term of the contract if the bid or offer is
11successful.
12    (c) The disclosure in subsection (b) is not intended to
13prohibit or prevent any contract. The disclosure is meant to
14fully and publicly disclose any potential conflict to the chief
15procurement officers, State purchasing officers, their
16designees, and executive officers so they may adequately
17discharge their duty to protect the State.
18    (d) When a potential for a conflict of interest is
19identified, discovered, or reasonably suspected, the chief
20procurement officer or State procurement officer shall send the
21contract to the Procurement Policy Board. In accordance with
22the objectives of subsection (c), the Procurement Policy Board
23shall provide written notice to the contractor or subcontractor
24that is identified, discovered, or reasonably suspected of
25having such potential for a conflict of interest. The
26contractor or subcontractor shall have 30 days to respond in

 

 

HB5915- 39 -LRB097 17964 PJG 63187 b

1writing to the Board, and a hearing before the Board will be
2granted upon the contractor's or subcontractor's request. Upon
3consideration, the The Board shall recommend, in writing,
4whether to allow or void the contract, bid, offer, or
5subcontract weighing the best interest of the State of
6Illinois. All recommendations shall be submitted to the chief
7procurement officer. The chief procurement officer must hold a
8public hearing if the Procurement Policy Board makes a
9recommendation to (i) void a contract or (ii) void a bid or
10offer and the chief procurement officer selected or intends to
11award the contract to the bidder or offeror. A chief
12procurement officer is prohibited from awarding a contract
13before a hearing if the Board recommendation does not support a
14bid or offer. The recommendation and proceedings of any
15hearing, if applicable, shall become part of the contract, bid,
16or proposal file and shall be available to the public.
17    (e) These thresholds and disclosure do not relieve the
18chief procurement officer, the State purchasing officer, or
19their designees from reasonable care and diligence for any
20contract, bid, offer, or proposal. The chief procurement
21officer, the State purchasing officer, or their designees shall
22be responsible for using any reasonably known and publicly
23available information to discover any undisclosed potential
24conflict of interest and act to protect the best interest of
25the State of Illinois.
26    (f) Inadvertent or accidental failure to fully disclose

 

 

HB5915- 40 -LRB097 17964 PJG 63187 b

1shall render the contract, bid, proposal, subcontract, or
2relationship voidable by the chief procurement officer if he or
3she deems it in the best interest of the State of Illinois and,
4at his or her discretion, may be cause for barring from future
5contracts, bids, proposals, subcontracts, or relationships
6with the State for a period of up to 2 years.
7    (g) Intentional, willful, or material failure to disclose
8shall render the contract, bid, proposal, subcontract, or
9relationship voidable by the chief procurement officer if he or
10she deems it in the best interest of the State of Illinois and
11shall result in debarment from future contracts, bids,
12proposals, subcontracts, or relationships for a period of not
13less than 2 years and not more than 10 years. Reinstatement
14after 2 years and before 10 years must be reviewed and
15commented on in writing by the Governor of the State of
16Illinois, or by an executive ethics board or commission he or
17she might designate. The comment shall be returned to the
18responsible chief procurement officer who must rule in writing
19whether and when to reinstate.
20    (h) In addition, all disclosures shall note any other
21current or pending contracts, proposals, subcontracts, leases,
22or other ongoing procurement relationships the bidding,
23proposing, offering, or subcontracting entity has with any
24other unit of State government and shall clearly identify the
25unit and the contract, proposal, lease, or other relationship.
26    (i) The contractor or bidder has a continuing obligation to

 

 

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1supplement the disclosure required by this Section throughout
2the bidding process or during the term of any contract.
3(Source: P.A. 96-795, eff. 7-1-10 (see Section 5 of P.A. 96-793
4for the effective date of changes made by P.A. 96-795); 96-920,
5eff. 7-1-10; 97-490, eff. 8-22-11.)
 
6    (30 ILCS 500/50-39)
7    Sec. 50-39. Procurement communications reporting
8requirement.
9    (a) Any written or oral communication received by a State
10employee who, by the nature of his or her duties, has the
11authority to participate personally and substantially in the
12decision to award a State contract and that imparts or requests
13material information or makes a material argument regarding
14potential action concerning an active a procurement matter,
15including, but not limited to, an application, a contract, or a
16project, shall be reported to the Procurement Policy Board,
17and, with respect to the Illinois Power Agency, by the
18initiator of the communication, and may be reported also by the
19recipient. For purposes of this Section, "active procurement
20matter" means a procurement process beginning with publication
21in the Illinois Procurement Bulletin; "material information"
22means information that a reasonable person would deem important
23in determining his or her course of action and pertains to
24significant issues, including, but not limited to, price,
25quantity, and terms of payment or performance; and "material

 

 

HB5915- 42 -LRB097 17964 PJG 63187 b

1argument" means a communication that a reasonable person would
2believe was made for the purpose of influencing a decision
3relating to a procurement matter. "Material argument" does not
4include general information about products, services, or
5industry best practices or a response to a communication
6initiated by an employee of the State for the purposes of
7providing information to evaluate new products, trends,
8services, or technologies.
9    Any person communicating orally, in writing,
10electronically, or otherwise with the Director or any person
11employed by, or associated with, the Illinois Power Agency to
12impart, solicit, or transfer any information related to the
13content of any power procurement plan, the manner of conducting
14any power procurement process, the procurement of any power
15supply, or the method or structure of contracting with power
16suppliers must disclose to the Procurement Policy Board the
17full nature, content, and extent of any such communication in
18writing by submitting a report with the following information:
19        (1) The names of any party to the communication.
20        (2) The date on which the communication occurred.
21        (3) The time at which the communication occurred.
22        (4) The duration of the communication.
23        (5) The method (written, oral, etc.) of the
24    communication.
25        (6) A summary of the substantive content of the
26    communication.

 

 

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1    These communications do not include the following: (i)
2statements by a person publicly made in a public forum; (ii)
3statements regarding matters of procedure and practice, such as
4format, the number of copies required, the manner of filing,
5and the status of a matter; and (iii) statements made by a
6State employee of the agency to the agency head or other
7employees of that agency, or to the employees of the Executive
8Ethics Commission, or to an employee of another State agency
9who, through the communication, is either exercising his or her
10experience or expertise in the subject matter of the particular
11procurement in the normal course of business or exercising
12oversight or supervisory or management authority over the
13procurement in the normal course of business; (iv) unsolicited
14communications providing general information about products,
15services, or industry best practices before those products or
16services become involved in a procurement matter; (v)
17communications received in response to procurement
18solicitations, including, but not limited to, vendor responses
19to a request for information, request for proposal, request for
20qualifications, invitation for bid, or a small purchase, sole
21source, or emergency solicitation, or questions and answers
22posted to the Procurement Bulletins to supplement the
23procurement action, provided that the communications are made
24in accordance with the instructions contained in the
25procurement solicitation, procedures, or guidelines; (vi)
26communications that are privileged, protected, or confidential

 

 

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1under law; and (vii) communications that are part of a formal
2procurement process as set out by statute, rule, or the
3solicitation, guidelines, or procedures, including, but not
4limited to, the posting of procurement opportunities, the
5process for approving a procurement business case or its
6equivalent, fiscal approval, submission of bids, the
7finalizing of contract terms and conditions with an awardee or
8apparent awardee, and similar formal procurement processes.
9The provisions of this Section shall not apply to
10communications regarding the administration and implementation
11of an existing contract, except communications regarding
12change orders or the renewal or extension of a contract.
13    (b) The report required by subsection (a) shall be
14submitted monthly and include at least the following: (i) the
15date and time of each communication; (ii) the identity of each
16person from whom the written or oral communication was
17received, the individual or entity represented by that person,
18and any action the person requested or recommended; (iii) the
19identity and job title of the person to whom each communication
20was made; (iv) if a response is made, the identity and job
21title of the person making each response; (v) a detailed
22summary of the points made by each person involved in the
23communication; (vi) the duration of the communication; (vii)
24the location or locations of all persons involved in the
25communication and, if the communication occurred by telephone,
26the telephone numbers for the callers and recipients of the

 

 

HB5915- 45 -LRB097 17964 PJG 63187 b

1communication; and (viii) any other pertinent information. No
2proprietary or confidential information shall be included in
3any communication reported to the Procurement Policy Board.
4    (c) Additionally, when an oral communication made by a
5person required to register under the Lobbyist Registration Act
6is received by a State employee that is covered under this
7Section, all individuals who initiate or participate in the
8oral communication shall submit a written report to that State
9employee that memorializes the communication and includes, but
10is not limited to, the items listed in subsection (b).
11    (d) The Procurement Policy Board shall make each report
12submitted pursuant to this Section available on its website
13within 7 days after its receipt of the report. The Procurement
14Policy Board may promulgate rules to ensure compliance with
15this Section.
16    (e) The reporting requirements shall also be conveyed
17through ethics training under the State Officials and Employees
18Ethics Act. An employee who knowingly and intentionally
19violates this Section shall be subject to suspension or
20discharge. The Executive Ethics Commission shall promulgate
21rules, including emergency rules, to implement this Section.
22    (f) This Section becomes operative on January 1, 2011.
23(Source: P.A. 96-795, eff. 7-1-10 (see Section 5 of P.A. 96-793
24for the effective date of changes made by P.A. 96-795); 96-920,
25eff. 7-1-10; 97-333, eff. 8-12-11; 97-618, eff. 10-26-11.)
 

 

 

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1    (30 ILCS 500/50-60)
2    Sec. 50-60. Voidable contracts.
3    (a) If any contract or amendment thereto is entered into or
4purchase or expenditure of funds is made at any time in
5violation of this Code or any other law, the contract or
6amendment thereto may be declared void by the chief procurement
7officer or may be ratified and affirmed, provided the chief
8procurement officer determines that ratification is in the best
9interests of the State. If the contract is ratified and
10affirmed, it shall be without prejudice to the State's rights
11to any appropriate damages.
12    (b) If, during the term of a contract, the chief
13procurement officer determines that the contractor is
14delinquent in the payment of debt as set forth in Section 50-11
15of this Code, the chief procurement officer may declare the
16contract void if it determines that voiding the contract is in
17the best interests of the State. The Debt Collection Bureau
18shall adopt rules for the implementation of this subsection
19(b).
20    (c) If, during the term of a contract, the chief
21procurement officer determines that the contractor is in
22violation of Section 50-10.5 of this Code, the chief
23procurement officer shall declare the contract void.
24    (d) If, during the term of a contract, the contracting
25agency learns from an annual certification or otherwise
26determines that the contractor no longer qualifies to enter

 

 

HB5915- 47 -LRB097 17964 PJG 63187 b

1into State contracts by reason of Section 50-5, 50-10, 50-12,
250-14, or 50-14.5 of this Article, the chief procurement
3officer may declare the contract void if it determines that
4voiding the contract is in the best interests of the State.
5    (e) If, during the term of a contract, the chief
6procurement officer learns from an annual certification or
7otherwise determines that a subcontractor subject to Section
820-120 no longer qualifies to enter into State contracts by
9reason of Section 50-5, 50-10, 50-10.5, 50-11, 50-12, 50-14, or
1050-14.5 of this Article, the chief procurement officer may
11declare the related contract void if it determines that voiding
12the contract is in the best interests of the State. However,
13the related contract shall not be declared void unless the
14contractor refuses to terminate the subcontract upon the
15State's request after a finding that the subcontractor no
16longer qualifies to enter into State contracts by reason of one
17of the Sections listed in this subsection.
18    (f) The changes to this Section made by Public Act 96-795
19apply to actions taken by the chief procurement officer on or
20after July 1, 2010.
21(Source: P.A. 96-493, eff. 1-1-10; 96-795, eff. 7-1-10 (see
22Section 5 of P.A. 96-793 for the effective date of changes made
23by P.A. 96-795); 96-1000, eff. 7-2-10.)
 
24    Section 99. Effective date. This Act takes effect upon
25becoming law.

 

 

HB5915- 48 -LRB097 17964 PJG 63187 b

1 INDEX
2 Statutes amended in order of appearance
3    30 ILCS 500/1-15.107
4    30 ILCS 500/1-15.108
5    30 ILCS 500/5-5
6    30 ILCS 500/20-10
7    30 ILCS 500/20-25
8    30 ILCS 500/20-120
9    30 ILCS 500/20-155
10    30 ILCS 500/20-160
11    30 ILCS 500/50-5
12    30 ILCS 500/50-10
13    30 ILCS 500/50-10.5
14    30 ILCS 500/50-11
15    30 ILCS 500/50-12
16    30 ILCS 500/50-14
17    30 ILCS 500/50-35
18    30 ILCS 500/50-39
19    30 ILCS 500/50-60