Rep. Jay Hoffman

Filed: 2/10/2022





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2    AMENDMENT NO. ______. Amend House Bill 3820 by replacing
3everything after the enacting clause with the following:
4    "Section 5. The Illinois Procurement Code is amended by
5adding Section 45-105 as follows:
6    (30 ILCS 500/45-105 new)
7    Sec. 45-105. Bid preference for Illinois businesses.
8    (a) For the purposes of this Section:
9    "Illinois business" means a contractor headquartered in
10Illinois providing construction or construction-related
11professional services for Illinois-based projects that: (i)
12conducts meaningful day-to-day business operations at a
13facility in Illinois and that facility is the place of
14employment for the majority of its regular, full-time
15workforce; (ii) holds all appropriate State licenses; and
16(iii) is subject to applicable State taxes. To qualify as an



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1"Illinois business", that business must be transacting
2construction and construction-related professional services
3for Illinois-based projects when any bid for a public contract
4is first advertised or announced. An Illinois business does
5not include any subcontractors.
6    "Illinois-based project" means an individual project of
7construction and other construction-related services for a
8construction agency that will result in the conduct of
9business within the State or the employment of individuals
10within the State.
11    (b) It is hereby declared to be the public policy of the
12State of Illinois to promote the economy of Illinois through
13the use of Illinois businesses for all State construction
15    (c) Construction agencies procuring construction and
16construction-related professional services shall make
17reasonable efforts to contract with Illinois businesses.
18    (d) Beginning in 2022, each construction agency shall
19submit a report to the Governor and the General Assembly by
20September 1 of each year that identifies the Illinois
21businesses procured by the construction agency, the primary
22location of the construction project, the percentage of the
23construction agency's utilization of Illinois businesses on
24the project as a whole, and the actions that the construction
25agency has undertaken to increase the use of Illinois



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1    (e) In procuring construction and construction-related
2professional services for projects with a total construction
3cost valued at greater than $100,000, construction agencies
4shall provide bid preference to a responsible bidder that
5meets the definition of an Illinois business as provided in
6this Section. The construction agency shall allocate to any
7responsible bidder that is an Illinois business a bid
8preference of 4% of the contract base bid.
9    (f) This Section does not apply to any contract for any
10project for which federal funds are available for expenditure
11when its provisions may be in conflict with federal law or
12federal regulation.
13    Section 10. The Procurement of Domestic Products Act is
14amended by changing Sections 5, 10, and 25 and by adding
15Sections 3 and 35 as follows:
16    (30 ILCS 517/3 new)
17    Sec. 3. Policy. It is the policy of Illinois that the State
18government should, consistent with applicable law, use terms
19and conditions of State financial assistance awards and State
20procurements to maximize the use of goods, products, and
21materials produced in, and services offered in, Illinois.
22    (30 ILCS 517/5)
23    Sec. 5. Definitions. As used in this Act:



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1    "Manufactured in Illinois" means, in the case of assembled
2articles, materials, or supplies, that design, final assembly,
3processing, packaging, testing, or other process that adds
4value, quality, or reliability occurs in Illinois.
5    "Manufactured in the United States" means, in the case of
6assembled articles, materials, or supplies, that design, final
7assembly, processing, packaging, testing, or other process
8that adds value, quality, or reliability occurs in the United
10    "Procured products" means assembled articles, materials,
11or supplies purchased by a State agency.
12    "Purchasing agency" has the same meaning as provided under
13Section 1-15.70 of the Illinois Procurement Code means a State
15    "State agency" has the same meaning as provided under
16Section 1-15.100 of the Illinois Procurement Code means each
17agency, department, authority, board, or commission of the
18executive branch of State government, including each
19university, whether created by statute or by executive order
20of the Governor.
21    "United States" means the United States and any place
22subject to the jurisdiction of the United States.
23(Source: P.A. 98-463, eff. 8-16-13.)
24    (30 ILCS 517/10)
25    Sec. 10. Domestic United States products.



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1    (a) Each purchasing agency making purchases of procured
2products shall promote the purchase of and give preference to
3manufactured articles, materials, and supplies that have been
4manufactured in the United States. Procured products
5manufactured in the United States shall be specified and
6purchased unless the purchasing agency determines that any of
7the following applies:
8        (1) The procured products are not manufactured in the
9    United States in reasonably available quantities.
10        (2) The price of the procured products manufactured in
11    the United States exceeds by an unreasonable amount the
12    price of available and comparable procured products
13    manufactured outside of the United States by 12% or more.
14        (3) The quality of the procured products manufactured
15    in the United States is substantially less than the
16    quality of the comparably priced, available, and
17    comparable procured products manufactured outside of the
18    United States.
19        (4) The purchase of the procured products manufactured
20    outside of the United States better serves the public
21    interest by helping to protect or save life, property, or
22    the environment.
23        (5) The purchase of the procured products is made in
24    conjunction with contracts or offerings of
25    telecommunications, fire suppression, security systems,
26    communications services, Internet services, or information



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1    services.
2        (6) The purchase is of pharmaceutical products, drugs,
3    biologics, vaccines, medical devices used to provide
4    medical and health care or treat disease or used in
5    medical or research diagnostic tests, and medical
6    nutritionals regulated by the Food and Drug Administration
7    under the federal Food, Drug and Cosmetic Act.
8        (7) The purchase is an emergency purchase authorized
9    under Section 20-30 of the Illinois Procurement Code.
10        (8) The purchase is a sole source or sole economically
11    feasible source purchase authorized under Section 20-25 of
12    the Illinois Procurement Code.
13    (b) If there is a tie between 2 bidders or offerors who
14have certified that they will provide products manufactured in
15the United States, the bidder or offeror that certifies it
16will provide products manufactured in Illinois shall be given
18    (c) In determining the price of procured products for
19purposes of this Section, consideration shall be given to the
20life-cycle cost, including maintenance and repair of those
21procured products.
22(Source: P.A. 93-954, eff. 1-1-05; 94-540, eff. 1-1-06.)
23    (30 ILCS 517/25)
24    Sec. 25. Penalties. If a contractor is awarded a contract
25through the use of a preference under this Act and knowingly



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1supplies procured products under that contract that are not
2manufactured in Illinois or the United States, as applicable,
3then (i) the contractor is barred from obtaining any State
4contract for a period of 5 years after the violation is
5discovered by the purchasing agency, (ii) the purchasing
6agency may void the contract, and (iii) the purchasing agency
7may recover damages in a civil action in an amount 3 times the
8value of the preference.
9(Source: P.A. 93-954, eff. 1-1-05; 94-540, eff. 1-1-06.)
10    (30 ILCS 517/35 new)
11    Sec. 35. Compliance reports. Beginning within 180 days
12after the effective date of this amendatory Act of the 102nd
13General Assembly, and annually thereafter, each purchasing
14agency shall submit to the chief procurement officer a report
15on: (i) the purchasing agency's compliance with the Act,
16including details on any incidents of noncompliance; (ii) the
17purchasing agency's analysis of goods, products, materials,
18and services not subject to the Act, including details of any
19procured products purchased under an exception listed in
20subsection (a) of Section 10; and (iii) any recommendations
21for how to further effectuate the policy set forth in this Act.
22    Section 99. Effective date. This Act takes effect upon
23becoming law.".