103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024
HB2326

 

Introduced 2/14/2023, by Rep. La Shawn K. Ford

 

SYNOPSIS AS INTRODUCED:
 
30 ILCS 500/1-13

    Amends the Illinois Procurement Code. Exempts from the Code's requirements procurement expenditures made by a public institution of higher education for the purchase of equipment or improvements for research facilities purchased with funds provided by a third party as part of a sponsored research agreement. Provides that the public institution of higher education shall maintain and publish a list of its procurements that are exempt under this provision categorized by procurement type and total expenditure.


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A BILL FOR

 

HB2326LRB103 27383 RJT 53755 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 Section 1-13 as follows:
 
6    (30 ILCS 500/1-13)
7    Sec. 1-13. Applicability to public institutions of higher
8education.
9    (a) This Code shall apply to public institutions of higher
10education, regardless of the source of the funds with which
11contracts are paid, except as provided in this Section.
12    (b) Except as provided in this Section, this Code shall
13not apply to procurements made by or on behalf of public
14institutions of higher education for any of the following:
15        (1) Memberships in professional, academic, research,
16    or athletic organizations on behalf of a public
17    institution of higher education, an employee of a public
18    institution of higher education, or a student at a public
19    institution of higher education.
20        (2) Procurement expenditures for events or activities
21    paid for exclusively by revenues generated by the event or
22    activity, gifts or donations for the event or activity,
23    private grants, or any combination thereof.

 

 

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1        (3) Procurement expenditures for events or activities
2    for which the use of specific potential contractors is
3    mandated or identified by the sponsor of the event or
4    activity, provided that the sponsor is providing a
5    majority of the funding for the event or activity.
6        (4) Procurement expenditures necessary to provide
7    athletic, artistic or musical services, performances,
8    events, or productions by or for a public institution of
9    higher education.
10        (5) Procurement expenditures for periodicals, books,
11    subscriptions, database licenses, and other publications
12    procured for use by a university library or academic
13    department, except for expenditures related to procuring
14    textbooks for student use or materials for resale or
15    rental.
16        (6) Procurement expenditures for placement of students
17    in externships, practicums, field experiences, and for
18    medical residencies and rotations.
19        (7) Contracts for programming and broadcast license
20    rights for university-operated radio and television
21    stations.
22        (8) Procurement expenditures necessary to perform
23    sponsored research and other sponsored activities under
24    grants and contracts funded by the sponsor or by sources
25    other than State appropriations.
26        (9) Contracts with a foreign entity for research or

 

 

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1    educational activities, provided that the foreign entity
2    either does not maintain an office in the United States or
3    is the sole source of the service or product.
4        (10) Procurement expenditures for any ongoing software
5    license or maintenance agreement or competitively
6    solicited software purchase, when the software, license,
7    or maintenance agreement is available through only the
8    software creator or its manufacturer and not a reseller.
9        (11) Procurement expenditures incurred outside of the
10    United States for the recruitment of international
11    students.
12        (12) Procurement expenditures made by a public
13    institution of higher education for purchases of equipment
14    or improvements for research facilities purchased with
15    funds provided by a third party as part of a sponsored
16    research agreement. For procurements made pursuant to this
17    paragraph (12), the public institution of higher education
18    shall maintain and publish a list of all such purchases
19    and list them by category and total expenditure.
20Notice of each contract with an annual value of more than
21$100,000 entered into by a public institution of higher
22education that is related to the procurement of goods and
23services identified in items (1) through (11) of this
24subsection shall be published in the Procurement Bulletin
25within 14 calendar days after contract execution. The Chief
26Procurement Officer shall prescribe the form and content of

 

 

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1the notice. Each public institution of higher education shall
2provide the Chief Procurement Officer, on a monthly basis, in
3the form and content prescribed by the Chief Procurement
4Officer, a report of contracts that are related to the
5procurement of goods and services identified in this
6subsection. At a minimum, this report shall include the name
7of the contractor, a description of the supply or service
8provided, the total amount of the contract, the term of the
9contract, and the exception to the Code utilized. A copy of any
10or all of these contracts shall be made available to the Chief
11Procurement Officer immediately upon request. The Chief
12Procurement Officer shall submit a report to the Governor and
13General Assembly no later than November 1 of each year that
14shall include, at a minimum, an annual summary of the monthly
15information reported to the Chief Procurement Officer.
16    (b-5) Except as provided in this subsection, the
17provisions of this Code shall not apply to contracts for
18medical supplies or to contracts for medical services
19necessary for the delivery of care and treatment at medical,
20dental, or veterinary teaching facilities used by Southern
21Illinois University or the University of Illinois or at any
22university-operated health care center or dispensary that
23provides care, treatment, and medications for students,
24faculty, and staff. Furthermore, the provisions of this Code
25do not apply to the procurement by such a facility of any
26additional supplies or services that the operator of the

 

 

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1facility deems necessary for the effective use and functioning
2of the medical supplies or services that are otherwise exempt
3from this Code under this subsection (b-5). However, other
4supplies and services needed for these teaching facilities
5shall be subject to the jurisdiction of the Chief Procurement
6Officer for Public Institutions of Higher Education who may
7establish expedited procurement procedures and may waive or
8modify certification, contract, hearing, process and
9registration requirements required by the Code. All
10procurements made under this subsection shall be documented
11and may require publication in the Illinois Procurement
12Bulletin.
13    (b-10) Procurements made by or on behalf of the University
14of Illinois for investment services may be entered into or
15renewed without being subject to the requirements of this
16Code. Notice of intent to renew a contract shall be published
17in the Illinois Public Higher Education Procurement Bulletin
18at least 14 days prior to the execution of a renewal, and the
19University of Illinois shall hold a public hearing for
20interested parties to provide public comment. Any contract
21extended, renewed, or entered pursuant to this exception shall
22be published in the Illinois Public Higher Education
23Procurement Bulletin within 5 days of contract execution.
24    (c) Procurements made by or on behalf of public
25institutions of higher education for the fulfillment of a
26grant shall be made in accordance with the requirements of

 

 

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1this Code to the extent practical.
2    Upon the written request of a public institution of higher
3education, the Chief Procurement Officer may waive contract,
4registration, certification, and hearing requirements of this
5Code if, based on the item to be procured or the terms of a
6grant, compliance is impractical. The public institution of
7higher education shall provide the Chief Procurement Officer
8with specific reasons for the waiver, including the necessity
9of contracting with a particular potential contractor, and
10shall certify that an effort was made in good faith to comply
11with the provisions of this Code. The Chief Procurement
12Officer shall provide written justification for any waivers.
13By November 1 of each year, the Chief Procurement Officer
14shall file a report with the General Assembly identifying each
15contract approved with waivers and providing the justification
16given for any waivers for each of those contracts. Notice of
17each waiver made under this subsection shall be published in
18the Procurement Bulletin within 14 calendar days after
19contract execution. The Chief Procurement Officer shall
20prescribe the form and content of the notice.
21    (d) Notwithstanding this Section, a waiver of the
22registration requirements of Section 20-160 does not permit a
23business entity and any affiliated entities or affiliated
24persons to make campaign contributions if otherwise prohibited
25by Section 50-37. The total amount of contracts awarded in
26accordance with this Section shall be included in determining

 

 

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1the aggregate amount of contracts or pending bids of a
2business entity and any affiliated entities or affiliated
3persons.
4    (e) Notwithstanding subsection (e) of Section 50-10.5 of
5this Code, the Chief Procurement Officer, with the approval of
6the Executive Ethics Commission, may permit a public
7institution of higher education to accept a bid or enter into a
8contract with a business that assisted the public institution
9of higher education in determining whether there is a need for
10a contract or assisted in reviewing, drafting, or preparing
11documents related to a bid or contract, provided that the bid
12or contract is essential to research administered by the
13public institution of higher education and it is in the best
14interest of the public institution of higher education to
15accept the bid or contract. For purposes of this subsection,
16"business" includes all individuals with whom a business is
17affiliated, including, but not limited to, any officer, agent,
18employee, consultant, independent contractor, director,
19partner, manager, or shareholder of a business. The Executive
20Ethics Commission may promulgate rules and regulations for the
21implementation and administration of the provisions of this
22subsection (e).
23    (f) As used in this Section:
24    "Grant" means non-appropriated funding provided by a
25federal or private entity to support a project or program
26administered by a public institution of higher education and

 

 

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1any non-appropriated funding provided to a sub-recipient of
2the grant.
3    "Public institution of higher education" means Chicago
4State University, Eastern Illinois University, Governors State
5University, Illinois State University, Northeastern Illinois
6University, Northern Illinois University, Southern Illinois
7University, University of Illinois, Western Illinois
8University, and, for purposes of this Code only, the Illinois
9Mathematics and Science Academy.
10    (g) (Blank).
11    (h) The General Assembly finds and declares that:
12        (1) Public Act 98-1076, which took effect on January
13    1, 2015, changed the repeal date set for this Section from
14    December 31, 2014 to December 31, 2016.
15        (2) The Statute on Statutes sets forth general rules
16    on the repeal of statutes and the construction of multiple
17    amendments, but Section 1 of that Act also states that
18    these rules will not be observed when the result would be
19    "inconsistent with the manifest intent of the General
20    Assembly or repugnant to the context of the statute".
21        (3) This amendatory Act of the 100th General Assembly
22    manifests the intention of the General Assembly to remove
23    the repeal of this Section.
24        (4) This Section was originally enacted to protect,
25    promote, and preserve the general welfare. Any
26    construction of this Section that results in the repeal of

 

 

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1    this Section on December 31, 2014 would be inconsistent
2    with the manifest intent of the General Assembly and
3    repugnant to the context of this Code.
4    It is hereby declared to have been the intent of the
5General Assembly that this Section not be subject to repeal on
6December 31, 2014.
7    This Section shall be deemed to have been in continuous
8effect since December 20, 2011 (the effective date of Public
9Act 97-643), and it shall continue to be in effect
10henceforward until it is otherwise lawfully repealed. All
11previously enacted amendments to this Section taking effect on
12or after December 31, 2014, are hereby validated.
13    All actions taken in reliance on or pursuant to this
14Section by any public institution of higher education, person,
15or entity are hereby validated.
16    In order to ensure the continuing effectiveness of this
17Section, it is set forth in full and re-enacted by this
18amendatory Act of the 100th General Assembly. This
19re-enactment is intended as a continuation of this Section. It
20is not intended to supersede any amendment to this Section
21that is enacted by the 100th General Assembly.
22    In this amendatory Act of the 100th General Assembly, the
23base text of the reenacted Section is set forth as amended by
24Public Act 98-1076. Striking and underscoring is used only to
25show changes being made to the base text.
26    This Section applies to all procurements made on or before

 

 

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1the effective date of this amendatory Act of the 100th General
2Assembly.
3(Source: P.A. 101-640, eff. 6-12-20; 102-16, eff. 6-17-21;
4102-721, eff. 5-6-22; 102-1119, eff. 1-23-23.)