Full Text of HB0554 102nd General Assembly
HB0554ham001 102ND GENERAL ASSEMBLY | Rep. William Davis Filed: 3/23/2021
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| 1 | | AMENDMENT TO HOUSE BILL 554
| 2 | | AMENDMENT NO. ______. Amend House Bill 554 by replacing | 3 | | everything after the enacting clause with the following:
| 4 | | "Section 5. The Illinois Municipal Code is amended by | 5 | | adding Section 11-42.1-5 as follows: | 6 | | (65 ILCS 5/11-42.1-5 new) | 7 | | Sec. 11-42.1-5. Contract preference to local businesses. | 8 | | (a) As used in this Section: | 9 | | "Local business" means a vendor or contractor who has a | 10 | | valid, verifiable physical business address located within the | 11 | | corporate boundaries of a municipality, at least 6 months | 12 | | prior to bid or proposal opening date, from which the vendor, | 13 | | contractor, or consultant operates or performs business on a | 14 | | daily basis, including manufacturing, production, | 15 | | distribution, or employment of other non-family individuals, | 16 | | and holds a valid business license issued by the municipality, |
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| 1 | | if applicable, or is registered with the municipality. | 2 | | "Verifiable physical business address" does not include post | 3 | | office boxes and post office boxes shall not be used for the | 4 | | purpose of establishing a physical business address. | 5 | | "Municipality" means the Village of Alsip, Village of | 6 | | Beecher, City of Blue Island, Village of Burnham, City of | 7 | | Calumet City, Village of Calumet Park, City of Chicago | 8 | | Heights, City Of Country Club Hills, Village of Crestwood, | 9 | | Village of Crete, Village of Dixmoor, Village of Dolton, | 10 | | Village of East Hazel Crest, Village of Flossmoor, Village of | 11 | | Ford Heights, Village of Glenwood, City of Harvey, Village of | 12 | | Hazel Crest, Village of Homewood, Village of Lansing, Village | 13 | | of Lynwood, City of Markham, Village of Matteson, Village of | 14 | | Midlothian, Village of Mokena, Village of Monee, City of Oak | 15 | | Forest, Village of Olympia Fields, Village of Orland Hills, | 16 | | Village of Orland Park, Village of Park Forest, Village of | 17 | | Peotone, Village of Phoenix, Village of Posen, Village of | 18 | | Richton Park, Village of Riverdale, Village of Robbins, | 19 | | Village of Sauk Village, Village of South Chicago Heights, | 20 | | Village of South Holland, Village of Steger, Village of | 21 | | Thornton, Village of Tinley Park, Village of University Park, | 22 | | or Village of Worth. | 23 | | "Non-local business" means any vendor or contractor who | 24 | | does not meet the definition of "local business". | 25 | | "Solicitation" means the a municipality's process to | 26 | | obtain bids or proposals. |
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| 1 | | (b) Each municipality shall adopt an ordinance, or modify | 2 | | existing ordinances or resolutions, that allows each | 3 | | municipality to give preference to a qualified and responsive | 4 | | local business in the manner permitted by this Section no | 5 | | later than January 1, 2022. | 6 | | (c) A municipality may give preference to a qualified and | 7 | | responsive local business in the solicitation of bids for | 8 | | supplies, materials, and equipment or a contract for any work | 9 | | or public improvement as follows: | 10 | | (1) If a municipality gives preference under this | 11 | | Section, the lowest evaluated bid price from a responsive | 12 | | and responsible local business shall be accepted, provided | 13 | | that the lowest bid from a responsive and responsible | 14 | | local business does not exceed the lowest evaluated bid | 15 | | price from a responsive and responsible non-local business | 16 | | as follows: | 17 | | (A) if the total bid is $250,000 or less, not more | 18 | | than 2% more than the lowest evaluated bid price, with | 19 | | a cap of $20,000; | 20 | | (B) if the total bid is more than $250,000, but | 21 | | less than $1,000,000, not more than one and one-half | 22 | | percent more than the lowest evaluated bid price, with | 23 | | a cap of $20,000; | 24 | | (C) if the total bid is $1,000,000 or more, but | 25 | | less than $2,000,000, not more than 1% more than the | 26 | | lowest evaluated bid price, with a cap of $20,000; and |
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| 1 | | (D) if the total bid is $2,000,000 or more, not | 2 | | more than $20,000 than the lowest evaluated bid price. | 3 | | (2) If a lowest evaluated bid price ties between a | 4 | | local business and a non-local business, the contract | 5 | | shall be awarded to the local business. If a bid price tie | 6 | | between two or more local businesses, the local business | 7 | | with the greatest number of full-time employees working in | 8 | | a municipality shall be awarded the contract or receive | 9 | | the first opportunity to negotiate, as applicable. | 10 | | (3) A municipality shall provide formal notice that | 11 | | the preference established by this Section shall be | 12 | | applicable in the bid specifications or request for | 13 | | proposals. | 14 | | (4) In order for a local business to be eligible to | 15 | | claim the preference as provided in this Section, the | 16 | | local business must request such preference in its | 17 | | solicitation response and provide a current copy of its | 18 | | municipal-issued business license, if applicable. | 19 | | (5) No contract shall be awarded to a local business | 20 | | when the local business' bid exceeds the lowest responsive | 21 | | and responsible bid by $20,000 or more. | 22 | | (d) The preference set forth in this Section shall not | 23 | | apply to the following purchases or contracts: | 24 | | (1) Goods or services provided under a cooperative | 25 | | purchasing agreement. | 26 | | (2) Purchases or contracts funded in whole or in part |
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| 1 | | by a governmental entity, other than the municipality, and | 2 | | the laws, regulations, or policies governing such funding | 3 | | prohibit the application of a local preference. | 4 | | (3) Purchases made or contracts let under emergency or | 5 | | noncompetitive situations. | 6 | | Application of the local business preference to a | 7 | | particular purchase, contract, or category of contracts may be | 8 | | waived at the discretion of a municipality's city council. | 9 | | (e) The local preference established under this Section | 10 | | shall not be construed to inhibit, limit, or restrict the | 11 | | right or obligation of a municipality to compare and review | 12 | | the quality of materials proposed for purchase, and to compare | 13 | | and review the qualifications, character, responsibility, and | 14 | | fitness of all persons, firms, or corporations submitting bids | 15 | | or proposals. | 16 | | (f) A home rule municipality shall adopt an ordinance or | 17 | | modify ordinances or resolutions in a manner consistent with | 18 | | this Section and may not regulate giving preferences to local | 19 | | businesses in a manner inconsistent with this Section. This | 20 | | Section is a limitation under subsection (i) of Section 6 of | 21 | | Article VII of the Illinois Constitution on the concurrent | 22 | | exercise by home rule units of powers and functions exercised | 23 | | by the State.
| 24 | | Section 99. Effective date. This Act takes effect upon | 25 | | becoming law.".
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