HB3820eng 102ND GENERAL ASSEMBLY

HB3820 Engrossed LRB102 17063 RJF 22491 b

AN ACT concerning finance.

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

Section 5. The Illinois Procurement Code is amended by adding Section 45-105 as follows:

(30 ILCS 500/45-105 new)

Sec. 45-105. Bid preference for Illinois businesses.

(a) For the purposes of this Section:

"Illinois business" means a contractor that: (i) is headquartered in Illinois and providing, at the time that an invitation for a bid or notice of contract opportunity is first advertised, construction or construction-related professional services for Illinois-based projects; (ii) conducts meaningful day-to-day business operations at a facility in Illinois that is the place of employment for the majority of its regular, full-time workforce; (iii) holds all appropriate State licenses; and (iv) is subject to applicable State taxes. "Illinois business" does not include any subcontractors.

"Illinois-based project" means an individual project of construction and other construction-related services for a construction agency that will result in the conduct of business within the State or the employment of individuals within the State.

(b) It is hereby declared to be the public policy of the State of Illinois to promote the economy of Illinois through the use of Illinois businesses for all State construction contracts.

(c) Construction agencies procuring construction and construction-related professional services shall make reasonable efforts to contract with Illinois businesses.

(d) Beginning in 2022, each construction agency shall submit a report to the Governor and the General Assembly by September 1 of each year that identifies the Illinois businesses procured by the construction agency, the primary location of the construction project, the percentage of the construction agency's utilization of Illinois businesses on the project as a whole, and the actions that the construction agency has undertaken to increase the use of Illinois businesses.

(e) In procuring construction and construction-related professional services for projects with a total construction cost of more than $100,000, construction agencies shall provide a bid preference to a responsible bidder that is an Illinois business as defined in this Section. The construction agency shall allocate to any responsible bidder that is an Illinois business a bid preference of 4% of the contract base bid.

(f) This Section does not apply to any contract for any project for which federal funds are available for expenditure when its provisions may be in conflict with federal law or federal regulation.

Section 10. The Procurement of Domestic Products Act is amended by changing Sections 5, 10, and 25 and by adding Sections 3 and 35 as follows:

(30 ILCS 517/3 new)

Sec. 3. Policy. It is hereby declared to be the public policy of the State of Illinois for each purchasing agency to use the terms and conditions of State financial assistance awards and State procurements to maximize the use of goods, products, and materials produced in Illinois.

(30 ILCS 517/5)

Sec. 5. Definitions. As used in this Act:

"Manufactured in Illinois" means, in the case of assembled articles, materials, or supplies, having been designed, finally assembled, processed, packaged, tested, or otherwise processed in Illinois in a manner that adds value, quality, or reliability.

"Manufactured in the United States" means, in the case of assembled articles, materials, or supplies, that design, final assembly, processing, packaging, testing, or other process that adds value, quality, or reliability occurs in the United States.

"Procured products" means assembled articles, materials, or supplies purchased by a State agency.

"Purchasing agency" has the meaning ascribed to that term in Section 1-15.70 of the Illinois Procurement Code means a State agency.

"State agency" has the meaning ascribed to that term in Section 1-15.100 of the Illinois Procurement Code means each agency, department, authority, board, or commission of the executive branch of State government, including each university, whether created by statute or by executive order of the Governor.

"United States" means the United States and any place subject to the jurisdiction of the United States.

(Source: P.A. 98-463, eff. 8-16-13.)

(30 ILCS 517/10)

Sec. 10. Domestic United States products.

(a) Each purchasing agency making purchases of procured products shall promote the purchase of and give preference to manufactured articles, materials, and supplies that have been manufactured in the United States. Procured products manufactured in the United States shall be specified and purchased unless the purchasing agency determines that any of the following applies:

(1) The procured products are not manufactured in the United States in reasonably available quantities.

(2) The price of the procured products manufactured in the United States exceeds by an unreasonable amount the price of available and comparable procured products manufactured outside of the United States by 12% or more.

(3) The quality of the procured products manufactured in the United States is substantially less than the quality of the comparably priced, available, and comparable procured products manufactured outside of the United States.

(4) The purchase of the procured products manufactured outside of the United States better serves the public interest by helping to protect or save life, property, or the environment.

(5) The purchase of the procured products is made in conjunction with contracts or offerings of telecommunications, fire suppression, security systems, communications services, Internet services, or information services.

(6) The purchase is of pharmaceutical products, drugs, biologics, vaccines, medical devices used to provide medical and health care or treat disease or used in medical or research diagnostic tests, and medical nutritionals regulated by the Food and Drug Administration under the federal Food, Drug and Cosmetic Act.

(7) The purchase is an emergency purchase authorized under Section 20-30 of the Illinois Procurement Code.

(8) The purchase is a sole source or sole economically feasible source purchase authorized under Section 20-25 of the Illinois Procurement Code.

(b) If there is a tie between 2 bidders or offerors who have certified that they will provide products manufactured in the United States, the bidder or offeror that certifies it will provide products manufactured in Illinois shall be given preference.

(c) In determining the price of procured products for purposes of this Section, consideration shall be given to the life-cycle cost, including maintenance and repair of those procured products.

(Source: P.A. 93-954, eff. 1-1-05; 94-540, eff. 1-1-06.)

(30 ILCS 517/25)

Sec. 25. Penalties. If a contractor is awarded a contract through the use of a preference under this Act and knowingly supplies procured products under that contract that are not manufactured in Illinois or the United States, as applicable, then (i) the contractor is barred from obtaining any State contract for a period of 5 years after the violation is discovered by the purchasing agency, (ii) the purchasing agency may void the contract, and (iii) the purchasing agency may recover damages in a civil action in an amount 3 times the value of the preference.

(Source: P.A. 93-954, eff. 1-1-05; 94-540, eff. 1-1-06.)

(30 ILCS 517/35 new)

Sec. 35. Compliance reports. Beginning within 180 days after the effective date of this amendatory Act of the 102nd General Assembly, and annually thereafter, each purchasing agency shall submit to the chief procurement officer a report on: (i) the purchasing agency's compliance with the Act, including details on any incidents of noncompliance; (ii) the purchasing agency's analysis of goods, products, and materials not subject to the Act, including details of any procured products purchased under an exception listed in subsection (a) of Section 10; and (iii) any recommendations for how to further effectuate the policy set forth in this Act.

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