Illinois General Assembly - Full Text of HB3820
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Full Text of HB3820  102nd General Assembly




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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
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 that: (i) is
10headquartered in Illinois and providing, at the time that an
11invitation for a bid or notice of contract opportunity is
12first advertised, construction or construction-related
13professional services for Illinois-based projects; (ii)
14conducts meaningful day-to-day business operations at a
15facility in Illinois that is the place of employment for the
16majority of its regular, full-time workforce; (iii) holds all
17appropriate State licenses; and (iv) is subject to applicable
18State taxes. "Illinois business" does not include any
20    "Illinois-based project" means an individual project of
21construction and other construction-related services for a
22construction agency that will result in the conduct of
23business within the State or the employment of individuals



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1within the State.
2    (b) It is hereby declared to be the public policy of the
3State of Illinois to promote the economy of Illinois through
4the use of Illinois businesses for all State construction
6    (c) Construction agencies procuring construction and
7construction-related professional services shall make
8reasonable efforts to contract with Illinois businesses.
9    (d) Beginning in 2022, each construction agency shall
10submit a report to the Governor and the General Assembly by
11September 1 of each year that identifies the Illinois
12businesses procured by the construction agency, the primary
13location of the construction project, the percentage of the
14construction agency's utilization of Illinois businesses on
15the project as a whole, and the actions that the construction
16agency has undertaken to increase the use of Illinois
18    (e) In procuring construction and construction-related
19professional services for projects with a total construction
20cost of more than $100,000, construction agencies shall
21provide a bid preference to a responsible bidder that is an
22Illinois business as defined in this Section. The construction
23agency shall allocate to any responsible bidder that is an
24Illinois business a bid preference of 4% of the contract base
26    (f) This Section does not apply to any contract for any



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1project for which federal funds are available for expenditure
2when its provisions may be in conflict with federal law or
3federal regulation.
4    Section 10. The Procurement of Domestic Products Act is
5amended by changing Sections 5, 10, and 25 and by adding
6Sections 3 and 35 as follows:
7    (30 ILCS 517/3 new)
8    Sec. 3. Policy. It is hereby declared to be the public
9policy of the State of Illinois for each purchasing agency to
10use the terms and conditions of State financial assistance
11awards and State procurements to maximize the use of goods,
12products, and materials produced in Illinois.
13    (30 ILCS 517/5)
14    Sec. 5. Definitions. As used in this Act:
15    "Manufactured in Illinois" means, in the case of assembled
16articles, materials, or supplies, having been designed,
17finally assembled, processed, packaged, tested, or otherwise
18processed in Illinois in a manner that adds value, quality, or
20    "Manufactured in the United States" means, in the case of
21assembled articles, materials, or supplies, that design, final
22assembly, processing, packaging, testing, or other process
23that adds value, quality, or reliability occurs in the United



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2    "Procured products" means assembled articles, materials,
3or supplies purchased by a State agency.
4    "Purchasing agency" has the meaning ascribed to that term
5in Section 1-15.70 of the Illinois Procurement Code means a
6State agency.
7    "State agency" has the meaning ascribed to that term in
8Section 1-15.100 of the Illinois Procurement Code means each
9agency, department, authority, board, or commission of the
10executive branch of State government, including each
11university, whether created by statute or by executive order
12of the Governor.
13    "United States" means the United States and any place
14subject to the jurisdiction of the United States.
15(Source: P.A. 98-463, eff. 8-16-13.)
16    (30 ILCS 517/10)
17    Sec. 10. Domestic United States products.
18    (a) Each purchasing agency making purchases of procured
19products shall promote the purchase of and give preference to
20manufactured articles, materials, and supplies that have been
21manufactured in the United States. Procured products
22manufactured in the United States shall be specified and
23purchased unless the purchasing agency determines that any of
24the following applies:
25        (1) The procured products are not manufactured in the



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1    United States in reasonably available quantities.
2        (2) The price of the procured products manufactured in
3    the United States exceeds by an unreasonable amount the
4    price of available and comparable procured products
5    manufactured outside of the United States by 12% or more.
6        (3) The quality of the procured products manufactured
7    in the United States is substantially less than the
8    quality of the comparably priced, available, and
9    comparable procured products manufactured outside of the
10    United States.
11        (4) The purchase of the procured products manufactured
12    outside of the United States better serves the public
13    interest by helping to protect or save life, property, or
14    the environment.
15        (5) The purchase of the procured products is made in
16    conjunction with contracts or offerings of
17    telecommunications, fire suppression, security systems,
18    communications services, Internet services, or information
19    services.
20        (6) The purchase is of pharmaceutical products, drugs,
21    biologics, vaccines, medical devices used to provide
22    medical and health care or treat disease or used in
23    medical or research diagnostic tests, and medical
24    nutritionals regulated by the Food and Drug Administration
25    under the federal Food, Drug and Cosmetic Act.
26        (7) The purchase is an emergency purchase authorized



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1    under Section 20-30 of the Illinois Procurement Code.
2        (8) The purchase is a sole source or sole economically
3    feasible source purchase authorized under Section 20-25 of
4    the Illinois Procurement Code.
5    (b) If there is a tie between 2 bidders or offerors who
6have certified that they will provide products manufactured in
7the United States, the bidder or offeror that certifies it
8will provide products manufactured in Illinois shall be given
10    (c) In determining the price of procured products for
11purposes of this Section, consideration shall be given to the
12life-cycle cost, including maintenance and repair of those
13procured products.
14(Source: P.A. 93-954, eff. 1-1-05; 94-540, eff. 1-1-06.)
15    (30 ILCS 517/25)
16    Sec. 25. Penalties. If a contractor is awarded a contract
17through the use of a preference under this Act and knowingly
18supplies procured products under that contract that are not
19manufactured in Illinois or the United States, as applicable,
20then (i) the contractor is barred from obtaining any State
21contract for a period of 5 years after the violation is
22discovered by the purchasing agency, (ii) the purchasing
23agency may void the contract, and (iii) the purchasing agency
24may recover damages in a civil action in an amount 3 times the
25value of the preference.



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1(Source: P.A. 93-954, eff. 1-1-05; 94-540, eff. 1-1-06.)
2    (30 ILCS 517/35 new)
3    Sec. 35. Compliance reports. Beginning within 180 days
4after the effective date of this amendatory Act of the 102nd
5General Assembly, and annually thereafter, each purchasing
6agency shall submit to the chief procurement officer a report
7on: (i) the purchasing agency's compliance with the Act,
8including details on any incidents of noncompliance; (ii) the
9purchasing agency's analysis of goods, products, and materials
10not subject to the Act, including details of any procured
11products purchased under an exception listed in subsection (a)
12of Section 10; and (iii) any recommendations for how to
13further effectuate the policy set forth in this Act.
14    Section 99. Effective date. This Act takes effect upon
15becoming law.