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90_HB3809eng SEE INDEX Creates the Illinois Procurement Code. Provides for the purchasing of supplies, services, and construction and the leasing of real property and capital improvements by the State. Establishes a Procurement Policy Board appointed by the Governor to promulgate procurement policies and rules. Provides for an Inspector General appointed by the Governor to oversee implementation of the Board's policies. Grants general procurement and rulemaking authority to State purchasing officers appointed by State officers of the executive, legislative, and judicial branches and the governing boards of State colleges and universities. Permits delegation of procurement authority under certain circumstances. Grants procurement authority for professional or artistic services to individual State entities. Makes competitive sealed bidding the required method of source selection, with exceptions for procurements of a small, emergency, or sole source nature. Provides for procurement preferences, contract requirements, auditing, prohibitions, and penalties. Amends the Governmental Joint Purchasing Act, the Civil Administrative Code of Illinois, and the Personnel Code and repeals various Acts and Sections of Acts governing State purchasing. Creates the Human Services Delivery Act. Effective immediately, in part, and January 1, 1999, in part. LRB9008460JMsb HB3809 Engrossed LRB9008460JMsb 1 AN ACT concerning State purchases and delivery of 2 services. 3 Be it enacted by the People of the State of Illinois, 4 represented in the General Assembly: 5 ARTICLE 1 6 GENERAL PROVISIONS 7 Section 1-1. Short title. This Act may be cited as the 8 Illinois Procurement Code of 1999. 9 Section 1-5. Public policy. It is the purpose of this 10 Code and is declared to be the policy of the State that the 11 principles of competitive bidding and economical procurement 12 practices shall be applicable to all purchases and contracts 13 by or for any State agency. 14 Section 1-10. Application. 15 (a) This Code applies only to procurements for which 16 contractors were first solicited on or after January 1, 1999. 17 This Code shall not be construed to affect or impair any 18 contract, or any provision of a contract, entered into prior 19 to the implementation date of this Code as described in 20 Article 99, including but not limited to, any covenant 21 entered into with respect to any revenue bonds or similar 22 instruments. 23 (b) This Code applies regardless of the source of the 24 funds with which the contracts are paid, including federal 25 assistance moneys. This Code does not apply to: (1) 26 contracts between the State and its political subdivisions or 27 other governments, or between State governmental bodies 28 except as specifically provided in this Code; (2) grants; (3) 29 purchase of care; (4) contracts for personal services as an HB3809 Engrossed -2- LRB9008460JMsb 1 employee rather than as an independent contractor; or (5) 2 collective bargaining contracts. Nothing in this Code or in 3 rules promulgated hereunder shall prevent any State 4 governmental body from complying with the terms and 5 conditions of any grant, gift, bequest, or cooperative 6 agreement. 7 Section 1-15. Definitions. For the purposes of this 8 Code, the words set forth in the following Sections of this 9 Article have the meanings set forth in those Sections. 10 Section 1-15.03. Bidder or offeror. "Bidder" or 11 "offeror" means any person who submits a bid, proposal, or 12 other type of offer. These terms may be used 13 interchangeably. 14 Section 1-15.05. Board. "Board" means the Procurement 15 Policy Board. 16 Section 1-15.10. Business. "Business" means any 17 corporation, partnership, individual, sole proprietorship, 18 joint stock company, joint venture, or other private legal 19 entity. 20 Section 1-15.15. Chief Procurement Officer. "Chief 21 Procurement Officer" means: 22 (1) for procurements for construction and 23 construction-related services committed by law to the 24 jurisdiction or responsibility of the Capital Development 25 Board, the executive director of the Capital Development 26 Board. 27 (2) for procurements for all construction, 28 construction-related services, operation of any facility, and 29 the provision of any service or activity committed by law to HB3809 Engrossed -3- LRB9008460JMsb 1 the jurisdiction or responsibility of the Illinois Department 2 of Transportation, including the direct or reimbursable 3 expenditure of all federal funds for which the Department of 4 Transportation is responsible or accountable for the use 5 thereof in accordance with federal law, regulation, or 6 procedure, the Secretary of Transportation. 7 (3) for all procurements made by a public institution of 8 higher education, a representative designated by the 9 Governor. 10 (4) for all other procurements of the executive branch 11 under the jurisdiction of the Governor or outside the 12 jurisdiction of any other executive branch constitutional 13 officer, the Director of the Department of Central Management 14 Services. 15 (5) for all procurements under the jurisdiction of an 16 executive branch constitutional officer other than the 17 Governor, the appropriate executive branch constitutional 18 officer. 19 (6) for all procurements under the jurisdiction of the 20 President of the Senate, the President of the Senate. 21 (7) for all procurements under the jurisdiction of the 22 Speaker of the House of Representatives, the Speaker of the 23 House of Representatives. 24 (8) for all procurements under the jurisdiction of the 25 Minority Leader of the Senate, the Minority Leader of the 26 Senate. 27 (9) for all procurements under the jurisdiction of the 28 Minority Leader of the House of Representatives, the Minority 29 Leader of the House of Representatives. 30 (10) for all procurements of the legislative support 31 service agencies, a person designated by the Joint Committee 32 on Legislative Support Services. 33 Section 1-15.17. Concession. "Concession" means any use HB3809 Engrossed -4- LRB9008460JMsb 1 of State property, primarily real estate, by a party not 2 associated with State government, whether or not a charge is 3 levied for that use. 4 Section 1-15.20. Construction or construction-related 5 services. "Construction" means building, altering, 6 repairing, improving, or demolishing any public structure or 7 building, or making improvements of any kind to public real 8 property. Construction does not include the routine 9 operation, routine repair, or routine maintenance of existing 10 structures, buildings, or real property. "Construction- 11 related services" means those services including construction 12 design, layout, inspection, support, feasibility or location 13 study, research, development, planning, or other 14 investigative study undertaken by a construction agency 15 concerning construction or potential construction. 16 Section 1-15.25. Construction agency. "Construction 17 agency" means the Capital Development Board for construction 18 or remodeling of State-owned facilities; the Illinois 19 Department of Transportation for construction or maintenance 20 of roads, highways, bridges, and airports; the Illinois Toll 21 Highway Authority for construction or maintenance of toll 22 highways; and any other State agency entering into 23 construction contracts as authorized by law or by delegation 24 from the Procurement Policy Board. 25 Section 1-15.30. Contract. "Contract" means all types 26 of State agreements, regardless of what they may be called, 27 for the procurement or use of goods, services, including 28 professional or artistic services, construction, or real 29 property leases, and including master contracts and contracts 30 for financing through use of installment or lease-purchase 31 arrangements. HB3809 Engrossed -5- LRB9008460JMsb 1 Section 1-15.35. Cost-reimbursement contract. 2 "Cost-reimbursement contract" means a contract under which a 3 contractor is reimbursed for costs that are allowable and 4 allocable in accordance with the contract terms and the 5 provisions of this Code, and a fee, if any. 6 Section 1-15.37. Director. "Director" means the head 7 executive officer of a State agency. 8 Section 1-15.42. Goods. "Goods" means all personal 9 property, including but not limited to, equipment, materials, 10 printing, and insurance, and the financing of those goods. 11 Section 1-15.44. Grant. "Grant" means the furnishing by 12 the State of assistance, whether financial or otherwise, to 13 any person to support a program authorized by law. It does 14 not include an award, the primary purpose of which is to 15 procure an end product for the direct benefit or use of the 16 State governmental body making the grant, whether in the form 17 of goods, services, or construction; a contract resulting 18 from such an award is not a grant but a procurement contract. 19 Section 1-15.47. Inspector General. "Inspector General" 20 means that person appointed by the Governor as Inspector 21 General for Procurement under Section 5-10. 22 Section 1-15.50. Invitation for bids. "Invitation for 23 bids" means the process by which a purchasing agency requests 24 information from bidders, including all documents, whether 25 attached or incorporated by reference, used for soliciting 26 bids. 27 Section 1-15.53. Negotiation. "Negotiation" means the 28 process of selecting a contractor other than by competitive HB3809 Engrossed -6- LRB9008460JMsb 1 sealed bids, or multi-step sealed bidding, whereby a 2 purchasing agency can establish any and all terms and 3 conditions of a procurement contract by discussion with one 4 or more prospective contractors. 5 Section 1-15.55. Person. "Person" means any business, 6 public or private corporation, partnership, individual, 7 union, committee, club, unincorporated association or other 8 organization or group of individuals, or other legal entity. 9 Section 1-15.56. Personal services. "Personal services" 10 means services rendered to the State by an individual, as an 11 employee and not an independent contractor, and for whom 12 federal income taxes are withheld. 13 Section 1-15.57. Price. "Price" means any dollar 14 related factor relevant to the State, including but not 15 limited to, discounts and transportation, and where specified 16 in purchase specifications or descriptions, "price" means 17 total or life cycle costs. 18 Section 1-15.58. Procurement. "Procurement" means 19 buying, renting, leasing, licensing, or otherwise acquiring 20 any goods, services, construction, or real estate lease. It 21 also includes all functions that pertain to the obtaining 22 same, including describing requirements, selection and 23 soliciting sources, preparing and awarding contracts, and all 24 phases of contract administration. 25 Section 1-15.60. Professional and artistic services. 26 "Professional and artistic services" means those services 27 provided under contract to a State agency by a person or 28 business, acting as an independent contractor, qualified by 29 education, experience, and technical ability to advise and HB3809 Engrossed -7- LRB9008460JMsb 1 assist in solving specific management and programmatic 2 problems involving the organization, planning, direction, 3 control, and operation of State agencies. 4 Section 1-15.65. Purchase description. "Purchase 5 description" means the words used in a solicitation to 6 describe the supplies, services, professional or artistic 7 services, construction, or real property or capital 8 improvements to be procured or leased and includes 9 specifications attached to or made a part of the 10 solicitation. 11 Section 1-15.67. Purchase of care. "Purchase of care" 12 means a contract with a person for the furnishing of medical, 13 educational, psychiatric, vocational, rehabilitative, social, 14 or human services directly to a recipient of a State aid 15 program. 16 Section 1-15.70. Purchasing agency. "Purchasing agency" 17 means a State agency that is authorized by this Code, by its 18 implementing rules, or by authorized delegation of a State 19 purchasing officer to enter into contracts. 20 Section 1-15.75. Request for proposals. "Request for 21 proposals" means the process by which a purchasing agency 22 requests information from offerors, including all documents, 23 whether attached or incorporated by reference, used for 24 soliciting proposals. 25 Section 1-15.80. Responsible bidder or offeror. 26 "Responsible bidder or offeror" means a person who has the 27 capability in all respects to perform fully the contract 28 requirements and the integrity and reliability that will 29 assure good faith performance. HB3809 Engrossed -8- LRB9008460JMsb 1 Section 1-15.85. Responsive bidder. "Responsive bidder" 2 means a person who has submitted a bid that conforms in all 3 material respects to the invitation for bids. 4 Section 1-15.90. Services. "Services" means the 5 furnishing of labor, time, or effort by a contractor, not 6 involving the delivery of a specific end product other than 7 reports or supplies that are incidental to the required 8 performance. 9 Section 1-15.93. Solicitation. "Solicitation" means an 10 invitation for bids, request for proposals, request for 11 information, or other means of requesting contractors to 12 respond with offers or qualifications. 13 Section 1-15.95. Specifications. "Specifications" means 14 any description, provision, or requirement pertaining to the 15 physical or functional characteristics or of the nature of a 16 supply, service, or other item to be procured under a 17 contract. Specifications may include a description of any 18 requirement for inspecting, testing, or preparing a supply, 19 service, professional or artistic service, construction, or 20 other item for delivery. 21 Section 1-15.100. State agency. "State agency" means 22 all officers, boards, commissions, and agencies created by 23 the Constitution, whether in the executive or legislative 24 branch; all officers, departments, boards, commissions, 25 agencies, institutions, authorities, universities, bodies 26 politic and corporate of the State; and administrative units 27 or corporate outgrowths of the State government that are 28 created by or in accordance with statute, other than units of 29 local government and their officers, school districts, and 30 boards of election commissioners; all public employee HB3809 Engrossed -9- LRB9008460JMsb 1 retirement systems or investment boards that are subject to 2 fiduciary duties imposed by the Illinois Pension Code; and 3 all administrative units and corporate outgrowths of State 4 agencies and as may be created by executive order of the 5 Governor. "State agency" does not include the Illinois 6 Comprehensive Health Insurance Board. 7 Section 1-15.105. State purchasing officer. "State 8 purchasing officer" means a person appointed by a chief 9 procurement officer to exercise the procurement authority 10 created by this Code. 11 Section 1-15.110. Supplies. "Supplies" means all 12 personal property, including but not limited to equipment, 13 materials, printing, and insurance, and the financing of 14 those supplies. 15 Section 1-15.115. Using agency. "Using agency" means a 16 State agency that uses items procured under this Code. 17 Section 1-25. Property rights. No person shall have any 18 right to a specific contract with the State unless that 19 person has a contract that has been signed by an officer or 20 employee of the purchasing agency with appropriate signature 21 authority, or by officers or employees as required by Section 22 20-57. The State shall be under no obligation to issue an 23 award or execute a contract. 24 Section 1-30. Applicability to the Judicial Branch. The 25 judicial branch is exempt from this Code. The judicial 26 branch shall make procurements in accordance with rules 27 promulgated to meet its needs. Procurement rules promulgated 28 by the judicial branch may incorporate provisions of this 29 Code. HB3809 Engrossed -10- LRB9008460JMsb 1 ARTICLE 5 2 POLICY ORGANIZATION 3 Section 5-5. Procurement Policy Board. 4 (a) Creation. There is created a Procurement Policy 5 Board. 6 (b) Authority and duties. The Board shall have the 7 authority and responsibility to promulgate rules, consistent 8 with this Code, governing the procurement, management, 9 control, and disposal of supplies, services, professional or 10 artistic services, construction, and real property and 11 capital improvement leases procured by the State. All rules 12 shall be promulgated and published in accordance with the 13 Illinois Administrative Procedure Act. The Board shall 14 consider and decide matters of policy within the provisions 15 of this Code. The Board shall have the power to audit and 16 monitor the implementation of its rules and the requirements 17 of this Code but shall not exercise authority over the award 18 or administration of any particular contract or over any 19 dispute, claim, or litigation pertaining to a particular 20 contract, except as provided in Section 20-30. The Board 21 shall maintain a list of all State vendors, contractors, and 22 bidders from information supplied by the State purchasing 23 officers. 24 (c) Members. The Board shall consist of 5 members 25 appointed by the Governor, with the advice and consent of the 26 Senate, three-fifths of the members elected concurring by 27 record vote. No more than 3 members may be of the same 28 political party. Each member shall have demonstrated 29 sufficient business or professional experience in the area of 30 procurement to perform the functions of the Board. 31 (d) Terms. Of the initial appointees, the Governor 32 shall designate one member to serve a one-year term, 2 33 members to serve 2-year terms, and 2 members to serve 3-year HB3809 Engrossed -11- LRB9008460JMsb 1 terms. Subsequent terms shall be 4 years. Members may be 2 reappointed for succeeding terms. 3 (e) Reimbursement. Members shall receive no 4 compensation but shall be reimbursed for any expenses 5 reasonably incurred in the performance of their duties. 6 (f) Staff support. The Board shall have sufficient 7 staff to perform the duties required by this Code. 8 Section 5-10. Inspector General for Procurement. 9 (a) Creation and appointment. There is created the 10 Office of the Inspector General for Procurement. The 11 Governor, with the advice and consent of the Senate, 12 three-fifths of the members elected concurring by record 13 vote, shall appoint the Inspector General for a 6-year term. 14 (b) Authority and duties. The Inspector General shall 15 be responsible for overseeing implementation of the Board's 16 rules and policies. The Inspector General shall report any 17 suspected violations to the appropriate agency, the State's 18 Attorney in the county in which the suspected violation 19 occurs, and the Attorney General. 20 (c) Compensation. The Inspector General shall be a 21 full-time position compensated in an amount equal to the 22 compensation of the Auditor General. A member of the Board 23 may not serve as Inspector General. 24 (d) Staff support. The Inspector General shall have 25 sufficient staff to perform the duties required by this Code. 26 (e) The Inspector General shall file semi-annual reports 27 with the Legislative Audit Commission. 28 Section 5-25. Rulemaking authority. The Board may 29 authorize a State agency to promulgate rules to make 30 procurements when the Board determines that specific rules 31 are necessary. All rules shall be promulgated in accordance 32 with the Illinois Administrative Procedure Act and shall be HB3809 Engrossed -12- LRB9008460JMsb 1 subject to the approval of the Board. 2 ARTICLE 10 3 PROCUREMENT ORGANIZATION 4 Section 10-5. Exercise of procurement authority. 5 (a) The State purchasing officers shall exercise the 6 procurement authority created by this Code except as 7 otherwise provided in this Code. 8 (b) (1) Procurements for all construction, construction 9 related services, operation of any facility, and the 10 provision of any service or activity committed by law to the 11 jurisdiction or responsibility of the Illinois Department of 12 Transportation, including the direct or reimbursable 13 expenditure of all federal funds for which the Department of 14 Transportation is responsible or accountable for the use 15 thereof in accordance with federal law, regulation or 16 procedure, shall be exercised by the Secretary of 17 Transportation if required to comply with federal law. 18 (2) Procurements for all construction, construction 19 related services, operation of any facility, and the 20 provision of any service or activity committed by law to the 21 jurisdiction or responsibility of the Illinois Toll Highway 22 Authority, including the direct or reimbursable expenditure 23 of all federal funds for which the Authority is responsible 24 or accountable for the use thereof in accordance with federal 25 law, regulation or procedure, shall be delegated to the 26 Authority if required to comply with federal law. 27 Section 10-10. State purchasing officers. 28 (a) The appropriate chief procurement officer shall 29 appoint and the director of each State agency shall approve a 30 State purchasing officer to exercise within his or her 31 jurisdiction the procurement authority created by this Code. HB3809 Engrossed -13- LRB9008460JMsb 1 In the absence of an appointed and approved State purchasing 2 officer, the appropriate chief procurement officer shall 3 exercise the procurement authority created by this Code. 4 No new personnel position may be created to fill the 5 position of State purchasing officer. 6 (b) Vendor list. Each State purchasing officer shall 7 maintain a list of vendors, contractors, and bidders and 8 forward that list to the Board at least once per month in 9 accordance with Board rules. 10 Section 10-15. Delegation of authority. A State 11 purchasing officer may delegate procurement powers and duties 12 to an employee under that officer's jurisdiction as 13 authorized by the Board. 14 ARTICLE 15 15 PROCUREMENT BULLETIN 16 Section 15-5. Publisher. The Board shall designate a 17 State agency responsible for publishing the Illinois 18 Procurement Bulletin. 19 Section 15-10. Contents. The Illinois Procurement 20 Bulletin shall contain notices and other information required 21 by this Code or by rules promulgated under this Code to be 22 published in the Illinois Procurement Bulletin. The rules of 23 the Board promulgated under this Section shall require 24 inclusion in the Bulletin sufficient information to 25 adequately inform the public of the nature of each contract. 26 Each issue shall include a comprehensive index of its 27 contents. A purchasing agency may also choose, as applicable 28 and in accordance with rules of the Board, to place notices 29 in the official State newspaper or a newspaper circulating in 30 a locality relevant to the specified procurement. HB3809 Engrossed -14- LRB9008460JMsb 1 Section 15-15. Publication. The Illinois Procurement 2 Bulletin shall be published at least once per month. It 3 shall be available through subscription for a minimal fee not 4 exceeding publication and distribution costs. The Illinois 5 Procurement Bulletin shall be distributed free to public 6 libraries within Illinois. 7 Each volume of the Illinois Procurement Bulletin shall be 8 available electronically and may be available in print. 9 References in this Code to the publication and distribution 10 of the Illinois Procurement Bulletin include both its print 11 and electronic formats. 12 Section 15-20. Qualified bidders. Subscription to the 13 Illinois Procurement Bulletin shall not be required to 14 qualify as a bidder or offeror under this Code. 15 Section 15-25. Bulletin content. 16 (a) Invitations for bids. Notice of each and every 17 contract that is offered, including renegotiated contracts 18 and change orders, shall be published in the Bulletin. The 19 Board may provide by rule an organized format for the 20 publication of this information, but in any case it must 21 include at least the date first offered, the date submission 22 of offers is due, the location that offers are to be 23 submitted to, the purchasing State agency, the responsible 24 State purchasing officer, a brief purchase description, the 25 method of source selection, and information of how to obtain 26 a comprehensive purchase description and any disclosure and 27 contract forms. 28 (b) Contracts let or awarded. Notice of each and every 29 contract that is let or awarded, including renegotiated 30 contracts and change orders, shall be published in the next 31 available subsequent Bulletin, and the Board may provide by 32 rule an organized format for the publication of this HB3809 Engrossed -15- LRB9008460JMsb 1 information, but in any case it must include at least all of 2 the information specified in subsection (a) as well as the 3 name of the successful responsible bidder or offeror, the 4 contract price, the number of unsuccessful responsive 5 bidders, and any other disclosure specified in any Section of 6 this Code. 7 (c) Emergency purchase disclosure. Any chief 8 procurement officer, State purchasing officer, or designee 9 exercising emergency purchase authority under this Code shall 10 publish a written description and reasons and the total cost, 11 if known, or an estimate if unknown and the name of the 12 responsible chief procurement officer and State purchasing 13 officer, and the business or person contracted with for all 14 emergency purchases in the next timely, practicable Bulletin. 15 Such description shall also state the name of the Board 16 member granting approval pursuant to Section 20-30. 17 (d) Other required disclosure. The applicable chief 18 procurement officer shall provide by rule for the organized 19 publication in a timely manner of all other disclosure 20 required in other Sections of this Code. 21 ARTICLE 20 22 SOURCE SELECTION AND CONTRACT FORMATION 23 Section 20-5. Method of source selection. Unless 24 otherwise authorized by this Code or by other law, all State 25 contracts shall be awarded by competitive sealed bidding, in 26 accordance with Section 20-10. 27 Section 20-10. Competitive sealed bidding. 28 (a) Conditions for use. All contracts shall be awarded 29 by competitive sealed bidding except as otherwise provided in 30 Section 20-5. 31 (b) Invitation for bids. An invitation for bids shall HB3809 Engrossed -16- LRB9008460JMsb 1 be issued and shall include a purchase description and the 2 material contractual terms and conditions applicable to the 3 procurement. 4 (c) Public notice. Public notice of the invitation for 5 bids shall be published in the Illinois Procurement Bulletin 6 at least 28 days before the date set in the invitation for 7 the opening of bids. 8 (d) Bid submission and opening. Bids shall be submitted 9 in a sealed form and shall be opened publicly in the presence 10 of one or more witnesses at the time and place designated in 11 the invitation for bids. The rules may provide for the 12 acceptance of bids submitted by fax, electronic data 13 exchange, or by other methods. The name of each bidder, the 14 amount of each bid, and other relevant information as may be 15 specified by rule shall be recorded. After the award of the 16 contract, the winning bid and the record of each unsuccessful 17 bid shall be open to public inspection. 18 (e) Bid acceptance and bid evaluation. Bids shall be 19 unconditionally accepted without alteration or correction, 20 except as authorized in this Code. Bids shall be evaluated 21 based on the requirements set forth in the invitation for 22 bids, which may include criteria to determine acceptability 23 such as inspection, testing, quality, workmanship, delivery, 24 and suitability for a particular purpose. Those criteria 25 that will affect the bid price and be considered in 26 evaluation for award, such as discounts, transportation 27 costs, and total or life cycle costs, shall be objectively 28 measurable. The invitation for bids shall set forth the 29 evaluation criteria to be used. Only criteria set forth in 30 the invitation for bids may be used in the bid evaluation. 31 (f) Correction or withdrawal of bids. Correction or 32 withdrawal of inadvertently erroneous bids before or after 33 award, or cancellation of awards of contracts based on bid 34 mistakes, shall be permitted in accordance with rules of the HB3809 Engrossed -17- LRB9008460JMsb 1 Board. After bid opening, no changes in bid prices or other 2 provisions of bids prejudicial to the interest of the State 3 or fair competition shall be permitted. All decisions to 4 permit the correction or withdrawal of bids based on bid 5 mistakes shall be supported by written determination made by 6 a purchasing agency. 7 (g) Award. The contract shall be awarded with 8 reasonable promptness by written notice to the lowest 9 responsible and responsive bidder whose bid meets the 10 requirements and criteria set forth in the invitation for 11 bids. 12 (h) Multi-step sealed bidding. When it is considered 13 impracticable to initially prepare a purchase description to 14 support an award based on price, an invitation for bids may 15 be issued, in accordance with the rules of the Board, 16 requesting the submission of unpriced offers to be followed 17 by an invitation for bids limited to those bidders whose 18 offers have been qualified under the criteria set forth in 19 the first solicitation. 20 Section 20-20. Small purchases. 21 (a) Amount. Any individual procurement of supplies or 22 services not exceeding $10,000 and any procurement of 23 construction not exceeding $30,000 may be made without 24 competitive sealed bidding. Procurements shall not be 25 artificially divided so as to constitute a small purchase 26 under this Section. 27 (b) Adjustment. Each July 1, the small purchase 28 maximums established in subsection (a) shall be adjusted for 29 inflation as determined by the Consumer Price Index for All 30 Urban Consumers as determined by the United States Department 31 of Labor and rounded to the nearest $100. 32 Section 20-25. Sole source procurements. Contracts may HB3809 Engrossed -18- LRB9008460JMsb 1 be awarded without notice or competition when there is only 2 one economically feasible source for the item, including but 3 not limited to, contracts for specific works of art and for 4 the services of a particular artist. Procurements under this 5 Section must be approved in advance by the Board. The 6 procuring agency shall maintain a list of contracts awarded 7 on a sole source basis including the reasons for determining 8 the contractor was the sole economically feasible source. 9 The list and the reasons shall be open to inspection, and 10 shall be published in the Illinois Procurement Bulletin in 11 the issue published after the contract is awarded. 12 Section 20-30. Emergency purchases. 13 (a) Conditions for use. In accordance with standards 14 set forth in rules promulgated by the Board, a purchasing 15 agency may make emergency procurements without competitive 16 sealed bidding or prior notice when there exists a threat to 17 public health or public safety, or when immediate expenditure 18 is necessary for repairs to State property in order to 19 protect against further loss of or damage to State property, 20 to prevent or minimize serious disruption in State services, 21 or to ensure the integrity of State records. Emergency 22 procurements shall be made with as much competition as is 23 practical under the circumstances and as required by the rule 24 of the Board. Emergency procurements must be approved in 25 advance by at least one member of the Board. A written 26 description of the basis for the emergency and reasons for 27 the selection of the particular contractor shall be included 28 in the contract file. 29 (b) Notice. Before the 10th of each month, the 30 purchasing agency shall publish in the Illinois Procurement 31 Bulletin a copy of each written description and reasons and 32 the total cost of each emergency procurement made during the 33 previous month. When only an estimate of the total cost is HB3809 Engrossed -19- LRB9008460JMsb 1 known at the time of publication, the estimate shall be 2 identified as an estimate and published. When the actual 3 total cost is determined, it shall also be published in like 4 manner before the 10th day of the next succeeding month. 5 (c) Affidavits. A purchasing agency making a 6 procurement under this Section shall file affidavits with 7 the Board and the Inspector General within 10 days after the 8 procurement setting forth the amount expended, the name of 9 the contractor involved, and the conditions and circumstances 10 requiring the emergency procurement. When only an estimate 11 of the cost is available within 10 days after the 12 procurement, the actual cost shall be reported immediately 13 after it is determined. The Board shall review the 14 affidavits for each emergency procurement at least once a 15 month, and any member of the Board may append comments. At 16 the end of each fiscal quarter, the Inspector General shall 17 file with the Auditor General, the Legislative Audit 18 Commission, and the Governor a complete listing of all 19 emergency procurements reported during that fiscal quarter. 20 The Legislative Audit Commission shall review the emergency 21 procurements so reported and, in its annual reports, advise 22 the General Assembly of procurements that appear to 23 constitute an abuse of this Section. 24 (d) Quick purchases. The Board may promulgate policies 25 extending the circumstances by which a purchasing agency may 26 make purchases under this Section, including but not limited 27 to the procurement of items available at a discount for a 28 limited period of time. 29 Section 20-35. Competitive selection procedures. 30 (a) Conditions for use. The services specified in 31 Article 35 shall be procured in accordance with this Section, 32 except as authorized under Sections 20-25 and 20-30 of this 33 Article or as authorized by the Board in accordance with the HB3809 Engrossed -20- LRB9008460JMsb 1 provisions of this Code. 2 (b) Statement of qualifications. Potential contractors 3 may submit statements of qualifications and expressions of 4 interest. The Board may specify a uniform format for 5 statements of qualifications. Persons may amend these 6 statements at any time by filing a new statement. 7 (c) Public announcement and form of request for 8 proposals. Public notice of the need for the procurement 9 shall be given in the form of a request for proposals and 10 published in the Illinois Procurement Bulletin at least 14 11 days before the date set in the request for proposals for the 12 opening of proposals. The request for proposals shall 13 describe the services required, list the type of information 14 and data required of each offeror, and shall state the 15 relative importance of particular qualifications. 16 (d) Discussions. The purchasing agency may conduct 17 discussions with any offeror who has submitted a proposal to 18 determine the offeror's qualifications for further 19 consideration. Discussions shall not disclose any 20 information derived from proposals submitted by other 21 offerors. 22 (e) Award. Award shall be made to the offeror 23 determined in writing by the purchasing agency to be best 24 qualified based on the evaluation factors set forth in the 25 request for proposals and negotiation of compensation 26 determined to be fair and reasonable. If compensation cannot 27 be agreed upon with the best qualified offeror, then 28 negotiations shall be formally terminated with the selected 29 offeror. If proposals were submitted by one or more other 30 offerors determined to be qualified, negotiations may be 31 conducted with the other offeror or offerors, in the order of 32 their respective qualification ranking. The contract may be 33 awarded to the offeror then ranked as best qualified if the 34 amount of compensation is determined to be fair and HB3809 Engrossed -21- LRB9008460JMsb 1 reasonable. 2 Section 20-40. Cancellation of invitations for bids or 3 requests for proposals. An invitation for bids, a request 4 for proposals, or any other solicitation may be cancelled, or 5 any and all bids or proposals may be rejected in whole or in 6 part as may be specified in the solicitation, when it is in 7 the best interests of the State in accordance with rules 8 promulgated by the Board. The reasons for cancellation or 9 rejection shall be made part of the contract file. 10 Section 20-45. Prequalification of suppliers. The Board 11 shall promulgate rules for the development of prequalified 12 supplier lists for appropriate categories of purchases and 13 the periodic updating of those lists. 14 Section 20-50. Specifications. Specifications shall be 15 prepared in accordance with standards set forth in rules 16 promulgated by the Board. Those standards shall include a 17 prohibition against the use of brand-name products except 18 under specified circumstances and a restriction on the use of 19 specifications drafted by a potential bidder. All 20 specifications shall seek to promote overall economy for the 21 purposes intended and encourage competition in satisfying the 22 State's needs and shall not be unduly restrictive. 23 Section 20-55. Types of contracts. Subject to the 24 limitations of this Section and unless otherwise authorized 25 by law, any type of contract that will promote the best 26 interests of the State may be used, except that 27 cost-plus-a-percentage-of-cost contracts are prohibited. A 28 cost-reimbursement contract may be used only when a 29 determination is made in writing that a cost-reimbursement 30 contract is likely to be less costly to the State than any HB3809 Engrossed -22- LRB9008460JMsb 1 other type or that it is impracticable to obtain the item 2 required except under that type of contract. The general 3 form of contracts shall be specified by the Comptroller. 4 Section 20-57. Contracts of $100,000 or more in a fiscal 5 year. 6 (a) Approval or signature. With respect to new 7 contracts, contract renewals, orders against master 8 contracts, and leases in the amount of $100,000 or more in a 9 fiscal year, and with respect to contract amendments or 10 changes to existing contracts, including change orders, task 11 orders, or requisitions that increase the value of such 12 contract to or by $100,000 or more in a fiscal year, no State 13 agency has authority to enter into any such new contract, 14 renewal, order, amendment, or change, or to file it with the 15 Comptroller, or to make payment thereon, unless and until it 16 has been approved in writing or signed by at least the 17 following 3 individuals: 18 (1) the director, secretary, or chief executive of 19 the State agency; 20 (2) the agency's State purchasing officer; and 21 (3) the chief legal counsel of the State agency; 22 provided, however, that if it does not employ a chief 23 legal counsel, then a senior administrative official of 24 the State agency. 25 (b) Artificial division. Procurements shall not be 26 artificially divided to avoid the requirements of this 27 Section. 28 (c) Notification. The State purchasing officer shall 29 notify the Board and the Inspector General within 10 days of 30 the execution of any contract pursuant to this Section. 31 Section 20-60. Duration of contracts. 32 (a) Maximum duration. A contract may be entered into HB3809 Engrossed -23- LRB9008460JMsb 1 for any period of time deemed by the Board to be in the best 2 interests of the State but not exceeding 10 years. The 3 length of a lease for real property or capital improvements 4 may be in accordance with the provisions of Section 40-25. 5 (b) Subject to appropriation. All contracts made or 6 entered into shall recite that they are subject to 7 termination and cancellation in any year for which the 8 General Assembly fails to make an appropriation to make 9 payments under the terms of the contract. 10 Section 20-65. Right to audit records. 11 (a) Maintenance of books and records. Every contract 12 and subcontract shall require the contractor or 13 subcontractor, as applicable, to maintain books and records 14 relating to the performance of the contract or subcontract 15 and necessary to support amounts charged to the State under 16 the contract or subcontract. The books and records shall be 17 maintained by the contractor for a period of 5 years from the 18 later of the date of final payment under the contract or 19 completion of the contract and by the subcontractor for a 20 period of 5 years from the later of the date of final payment 21 under the subcontract or completion of the subcontract. 22 However, the 5-year period shall be extended for the duration 23 of any audit in progress at the time of that period's 24 expiration. 25 (b) Audit. Every contract and subcontract shall provide 26 that all books and records required to be maintained under 27 subsection (a) shall be available for review and audit by the 28 Auditor General and the purchasing agency. Every contract 29 and subcontract shall require the contractor and 30 subcontractor, as applicable, to cooperate fully with any 31 audit. 32 (c) Failure to maintain books and records. Failure to 33 maintain the books and records required by this Section shall HB3809 Engrossed -24- LRB9008460JMsb 1 establish a presumption in favor of the State for the 2 recovery of any funds paid by the State for which required 3 books and records are not available. 4 Section 20-70. Finality of determinations. 5 Determinations made by a purchasing agency under this Code 6 are final and conclusive unless they are clearly erroneous, 7 arbitrary, capricious, or contrary to law. 8 Section 20-75. Disputes and protests. The Board shall 9 by rule establish procedures to be followed by purchasing 10 agencies in resolving protested solicitations and awards and 11 contract controversies, for debarment or suspension of 12 contractors, and for resolving other procurement-related 13 disputes. 14 Section 20-80. Contract files. 15 (a) Written determinations. All written determinations 16 required under this Article shall be placed in the contract 17 file maintained by the purchasing agency. 18 (b) Filing with Comptroller. Except for (1) contracts 19 paid from personal services or (2) contracts between the 20 State and its employees to defer compensation in accordance 21 with Article 24 of the Illinois Pension Code, whenever a 22 contract liability exceeding $10,000 is incurred by any State 23 agency, a copy of the contract, purchase order, or lease 24 shall be filed with the Comptroller within 15 days 25 thereafter. Any cancellation or modification to any such 26 contract liability shall be filed with the Comptroller within 27 15 days after its execution. 28 (c) Late filing affidavit. When a contract, purchase 29 order, or lease required to be filed by this Section has not 30 been filed within 30 days after execution, the Comptroller 31 shall refuse to issue a warrant for payment thereunder until HB3809 Engrossed -25- LRB9008460JMsb 1 the agency files with the Comptroller the contract, purchase 2 order, or lease and an affidavit, signed by the chief 3 executive officer of the agency or his or her designee, 4 setting forth an explanation of why the contract liability 5 was not filed within 30 days after execution. A copy of this 6 affidavit shall be filed with the Inspector General. 7 (d) Professional and artistic services contracts. No 8 voucher shall be submitted to the Comptroller for a warrant 9 to be drawn for the payment of money from the State treasury 10 or from other funds held by the State Treasurer on account of 11 any contract for services involving professional or artistic 12 skills involving an expenditure of more than $5,000 for the 13 same type of service at the same location during any fiscal 14 year unless the contract is reduced to writing before the 15 services are performed and filed with the Comptroller. When 16 a contract for professional or artistic skills in excess of 17 $5,000 was not reduced to writing before the services were 18 performed, the Comptroller shall refuse to issue a warrant 19 for payment for the services until the State agency files 20 with the Comptroller: 21 (1) a written contract covering the services, and 22 (2) an affidavit, signed by the chief executive 23 officer of the State agency or his or her designee, 24 stating that the services for which payment is being made 25 were agreed to before commencement of the services and 26 setting forth an explanation of why the contract was not 27 reduced to writing before the services commenced. 28 A copy of this affidavit shall be filed with the Inspector 29 General. The Comptroller shall maintain professional or 30 artistic service contracts filed under this Section 31 separately from other filed contracts. 32 (e) Method of source selection. When a contract is 33 filed with the Comptroller under this Section, the 34 Comptroller's file shall identify the method of source HB3809 Engrossed -26- LRB9008460JMsb 1 selection used in obtaining the contract. 2 Section 20-85. List of State contractors and bidders. 3 Each State purchasing officer and each construction agency 4 shall compile and maintain a list of all vendors, bidders, 5 and contractors who submit a bid, proposal, or other type of 6 offer, whether successful or unsuccessful. The list shall be 7 forwarded to the Board as provided by Board rules. The Board 8 shall compile and maintain a complete list of all bidders for 9 all State agencies. The Board shall update the list and 10 publish it in the Procurement Bulletin at least 11 semi-annually. The list shall be made publicly available. 12 Section 20-90. Federal requirements. A State agency 13 receiving federal funds shall have authority to adapt its 14 procedures, rules, project statements, drawings, maps, 15 surveys, plans, specifications, contract terms, estimates, 16 bid forms, bond forms, and other documents or practices 17 necessary to comply with the regulations, policies, and 18 procedures of the designated authority, administration or 19 department of the United States in order to remain eligible 20 for such federal funds; provided that procurement by any such 21 State agency using non-federal funds shall be subject to the 22 provisions of this Code. 23 Section 20-95. Foreign country procurements. 24 Procurements to meet the needs of State offices located in 25 foreign countries shall comply with the provisions of this 26 Code to the extent practical. 27 Section 20-105. Donations. Nothing in this Code or in 28 the rules promulgated hereunder shall prevent any State 29 agency from complying with the terms and conditions of any 30 grant, gift, or bequest which calls for the procurement of a HB3809 Engrossed -27- LRB9008460JMsb 1 particular good or service, or use of a particular 2 contractor, provided the grant, gift, or bequest provides 3 complete funding for the contract. 4 ARTICLE 25 5 SUPPLIES AND SERVICES (EXCLUDING 6 PROFESSIONAL OR ARTISTIC) 7 Section 25-5. Applicability. All contracts for supplies 8 and services shall be procured in accordance with the 9 provisions of this Article. 10 Section 25-10. Authority. State purchasing officers 11 shall have the authority to procure supplies and services, 12 except as that authority may be limited by the Board or 13 delegated by the State purchasing officer in accordance with 14 Section 10-15. 15 Section 25-15. Method of source selection. Except as 16 provided in Sections 20-20, 20-25, and 20-30, all State 17 contracts for supplies and services shall be awarded by 18 competitive sealed bidding in accordance with Section 20-10. 19 Section 25-20. Prevailing wage requirements. 20 (a) Applicability. All services furnished under 21 printing contracts exceeding $25,000 and under service 22 contracts exceeding $2,000 or $200 per month shall be 23 performed by employees of the contractor receiving the 24 prevailing wage rate and working under conditions prevalent 25 in the locality in which the work is produced. A contract 26 bidder or offeror, in order to be considered a responsible 27 bidder or offeror for the purposes of this Code, shall 28 certify to the State purchasing officer that wages paid to 29 its employees are no less, and fringe benefits and working HB3809 Engrossed -28- LRB9008460JMsb 1 conditions of employees are not less favorable, than those 2 prevailing in the locality where the contract is to be 3 performed. Prevailing wages and working conditions shall be 4 determined by the Director of Labor. Whenever a collective 5 bargaining agreement is in effect between an employer, other 6 than a State agency, and service or printing employees as 7 defined in this Section who are represented by a responsible 8 organization that is in no way influenced or controlled by 9 the management, that agreement and its provisions shall be 10 considered as conditions prevalent in that locality and shall 11 be the minimum requirements taken into consideration by the 12 Director of Labor. Collective bargaining agreements between 13 State employees and the State of Illinois shall not be taken 14 into account by the Department of Labor in determining the 15 prevailing wage rate. 16 (b) Services and printing defined. As used in this 17 Section, "services" means janitorial cleaning services, 18 window cleaning services, food services, and security 19 services. "Printing" means all processes and operations 20 involved in printing and any type of photographic 21 reproduction or other duplicating process, including but not 22 limited to letterpress, offset, and gravure processes, the 23 multilith method, any type of photographic or other 24 duplicating process, and the operations of composition, 25 platemaking, presswork, and binding; and the end products of 26 those processes, methods, and operations. As used in this 27 Section "printing" does not include photocopiers used in the 28 course of normal business activities, photographic equipment 29 used for geographic mapping, printed matter used in the 30 normal day to day operations of the General Assembly, the 31 printing of State Lottery tickets, shares, or other State 32 Lottery game related materials, or preprinted or printed 33 matter that is commonly available to the general public from 34 contractor inventory. HB3809 Engrossed -29- LRB9008460JMsb 1 (c) Inapplicability. This Section does not apply to 2 services furnished under contracts for professional or 3 artistic services. This Section does not apply to vocational 4 programs of training for persons with physical or mental 5 disabilities. 6 Section 25-30. More favorable terms. A supply or 7 service contract may include, if determined by a State 8 purchasing officer to be in the best interests of the State, 9 a clause requiring that if more favorable terms are granted 10 by the contractor to any similar state or local governmental 11 agency in any state in a contemporaneous agreement let under 12 the same or similar financial terms and circumstances for 13 comparable supplies or services, the more favorable terms 14 shall be applicable under the contract. 15 Section 25-35. Purchase of coal and postage stamps. 16 (a) Delivery of necessary supplies. To avoid 17 interruption or impediment of delivery of necessary supplies, 18 commodities, and coal, State purchasing officers may make 19 purchases of or contracts for supplies and commodities after 20 April 30 of a fiscal year when delivery of the supplies and 21 commodities is to be made after June 30 of that fiscal year 22 and payment for which is to be made from appropriations for 23 the next fiscal year. 24 (b) Postage. All postage stamps purchased from State 25 funds must be perforated for identification purposes. A 26 General Assembly member may furnish the U.S. Post Office with 27 a warrant so as to allow for the creation or continuation of 28 a bulk rate mailing fund in the name of the General Assembly 29 member or may furnish a postage meter company or post office 30 with a warrant so as to facilitate the purchase of a postage 31 meter and its stamps. Any postage meter so purchased must 32 also contain a stamp that shall state "Official State Mail". HB3809 Engrossed -30- LRB9008460JMsb 1 Section 25-40. Freight increases. If the Illinois 2 Department of Transportation provides by contract or 3 regulation that general increases in freight rates incurred 4 by a contractor after entering into the contract may be added 5 to the contract price or passed through to the Department, 6 then this remedy shall be available to the contractor whether 7 the increased general freight rates are for railroads, barge 8 lines, or motor carriers of property. 9 Section 25-45. Energy conservation program. State 10 purchasing officers may enter into energy conservation 11 program contracts that provide for utility cost savings. The 12 Board shall promulgate and adopt rules for the implementation 13 of this Section. 14 Section 25-55. Annual reports. Every printed annual 15 report produced by a State agency shall bear a statement 16 indicating whether it was printed by the State of Illinois or 17 by contract and indicating the printing cost per copy and the 18 number of copies printed. The Department of Central 19 Management Services shall prepare and submit to the General 20 Assembly on the fourth Wednesday of January in each year a 21 report setting forth with respect to each State agency for 22 the calendar year immediately preceding the calendar year in 23 which the report is filed the total quantity of annual 24 reports printed, the total cost, and the cost per copy and 25 the cost per page of the annual report of the State agency 26 printed during the calendar year covered by the report. 27 Section 25-60. General Assembly printing; session laws. 28 (a) Authority. Public printing for the use of either 29 House of the General Assembly shall be subject to its 30 control. Any printing or operation of printing that the 31 Legislative Printing Unit is unable to perform may be HB3809 Engrossed -31- LRB9008460JMsb 1 purchased in accordance with this Article. 2 (b) Time of delivery. Daily calendars, journals, and 3 other similar printing for which manuscript or copy is 4 delivered to the Legislative Printing Unit by the clerical 5 officer of either House shall be printed so as to permit 6 delivery at any reasonable time required by the clerical 7 officer. Any petition, bill, resolution, joint resolution, 8 memorial, and similar manuscript or copy delivered to the 9 Legislative Printing Unit by the clerical officer of either 10 House shall be printed at any reasonable time required by 11 that officer. 12 (c) Style. The manner, form, style, size, and 13 arrangement of type used in printing the bills, resolutions, 14 amendments, conference reports, and journals, including daily 15 journals, of the General Assembly shall be as provided in the 16 Rules of the General Assembly. 17 (d) Daily journal. The Clerk of the House of 18 Representatives and the Secretary of the Senate shall each 19 prepare and deliver to the Legislative Printing Unit, 20 immediately after the close of each daily session, a 21 printer's copy of the daily journal for their respective 22 House. 23 (e) Daily and bound journals. 24 (1) Subscriptions. The Legislative Printing Unit 25 shall have printed the number of copies of the daily 26 journal as may be requested by the clerical officer of 27 each House. The Secretary of the Senate and the Clerk of 28 the House of Representatives shall furnish a copy of each 29 daily journal of their respective House to those persons 30 who apply therefor upon payment of a reasonable 31 subscription fee established separately by the Secretary 32 of the Senate and the Clerk of the House for their 33 respective House. Each subscriber shall specify at the 34 time he or she subscribes the address where he or she HB3809 Engrossed -32- LRB9008460JMsb 1 wishes the journals mailed. The daily journals shall be 2 furnished free of charge on a pickup basis to State 3 offices and to the public as long as the supply lasts. 4 The Secretary of the Senate and the Clerk of the House 5 shall determine the number of journals available for 6 pickup at their respective offices. 7 (2) Other copies. After the General Assembly 8 adjourns, the Clerk of the House and the Secretary of the 9 Senate shall prepare and deliver to the Legislative 10 Printing Unit a printer's copy of matter for the regular 11 House and Senate journals, together with any matter, not 12 previously printed in the daily journals, that is 13 required by law, by order of either House, or by joint 14 resolution to be printed in the journals. The 15 Legislative Printing Unit shall have printed the number 16 of copies of the bound journal as may be requested by the 17 clerical officer of each House. A reasonable number of 18 bound volumes of the journal of each House of the General 19 Assembly shall be provided to State and local officers, 20 boards, commissions, institutions, departments, agencies, 21 and libraries requesting them through canvasses conducted 22 separately by the Secretary of the Senate and the Clerk 23 of the House. Reasonable fees established separately by 24 the Secretary of the Senate and the Clerk of the House 25 may be charged for bound volumes of the journal of each 26 House of the General Assembly. 27 (f) Session laws. Immediately after the General Assembly 28 adjourns, the Secretary of State shall prepare a printer's 29 copy for the "Session Laws of Illinois" that shall set forth 30 in full all Acts and joint resolutions passed by the General 31 Assembly at the session just concluded and all executive 32 orders of the Governor taking effect under Article V, Section 33 11 of the Constitution and the Executive Reorganization 34 Implementation Act. The printer's copy shall be furnished HB3809 Engrossed -33- LRB9008460JMsb 1 and delivered to the Secretary of State by the Enrolling and 2 Engrossing Department of the 2 Houses. At the time an 3 enrolled law is filed with the Secretary of State, whether 4 before or after the conclusion of the session in which it was 5 passed, it shall be assigned a Public Act number, the first 6 part of which shall be the number of the General Assembly 7 followed by a dash and then a number showing the order in 8 which that law was filed with the Secretary of State. The 9 title page of each volume of the session laws shall contain 10 the following: "Printed by the authority of the General 11 Assembly of the State of Illinois". The laws shall be 12 arranged by the Secretary of State and printed in the 13 chronological order of Public Act numbers. At the end of 14 each Act the dates when the Act was passed by the General 15 Assembly and when the Act was approved by the Governor shall 16 be stated. Any Act becoming law without the approval of the 17 Governor shall be marked at its end in the session laws by 18 the printed certificate of the Secretary of State. Executive 19 orders taking effect under Article V, Section 11 of the 20 Constitution and the Executive Reorganization Implementation 21 Act shall be printed in chronological order of executive 22 order number and shall state at the end of each executive 23 order the date it was transmitted to the General Assembly and 24 the date it takes effect. In the case of an amendatory Act, 25 the changes made by the amendatory Act shall be indicated in 26 the session laws in the following manner: (i) all new matter 27 shall be underscored; and (ii) all matter deleted by the 28 amendatory Act shall be shown crossed with a line. The 29 Secretary of State shall prepare and furnish a table of 30 contents and an index to each volume of the session laws. 31 (g) Distribution. The bound volumes of the session laws 32 of the General Assembly shall be made available to the 33 following: 34 (1) one copy of each to each State officer, board, HB3809 Engrossed -34- LRB9008460JMsb 1 commission, institution, and department requesting a copy 2 in accordance with a canvass conducted by the Secretary 3 of State before the printing of the session laws except 4 judges of the appellate courts and judges and associate 5 judges of the circuit courts; 6 (2) 10 copies to the law library of the Supreme 7 Court; one copy each to the law libraries of the 8 appellate courts; and one copy to each of the county law 9 libraries or, in those counties without county law 10 libraries, one copy to the clerk of the circuit court; 11 (3) one copy of each to each county clerk; 12 (4) 10 copies of each to the library of the 13 University of Illinois; 14 (5) 3 copies of each to the libraries of the 15 University of Illinois at Chicago, Southern Illinois 16 University at Carbondale, Southern Illinois University at 17 Edwardsville, Northern Illinois University, Western 18 Illinois University, Eastern Illinois University, 19 Illinois State University, Chicago State University, 20 Northeastern Illinois University, Chicago Kent College of 21 Law, DePaul University, John Marshall Law School, Loyola 22 University, Northwestern University, Roosevelt 23 University, and the University of Chicago; 24 (6) a number of copies sufficient for exchange 25 purposes to the Legislative Reference Bureau and the 26 University of Illinois College of Law Library; 27 (7) a number of copies sufficient for public 28 libraries in the State and the State Library; and 29 (8) the remainder shall be retained for 30 distribution as the interests of the State may require to 31 persons making application in writing or in person for 32 the publication. 33 (h) Messages and reports. The following shall be 34 printed in a quantity not to exceed the maximum stated in HB3809 Engrossed -35- LRB9008460JMsb 1 this subsection and bound and distributed at public expense: 2 (1) messages to the General Assembly by the 3 Governor, 10,000 copies; 4 (2) the biennial report of the Lieutenant Governor, 5 1,000 copies; 6 (3) the biennial report of the Secretary of State, 7 3,000 copies; 8 (4) the biennial report of the State Comptroller, 9 5,000 copies; 10 (5) the biennial report of the State Treasurer, 11 3,000 copies; 12 (6) the annual report of the State Board of 13 Education, 6,000 copies; and 14 (7) the biennial report and annual opinions of the 15 Attorney General, 5,000 copies. 16 The reports of all other State officers, boards, 17 commissions, institutions, and departments shall be printed, 18 bound, and distributed at public expense in a number of 19 copies determined from previous experience not to exceed the 20 probable and reasonable demands of the State therefor. Any 21 other report required by law to be made to the Governor 22 shall, upon his or her order, be printed in the quantity 23 ordered by the Governor, bound and distributed at public 24 expense. 25 (i) Prohibition. All books, pamphlets, documents, and 26 reports published through or by the State of Illinois or any 27 State agency, board, or commission shall have printed thereon 28 "Printed by authority of the State of Illinois", the date of 29 each publication, the number of copies printed, and the 30 printing order number. Each using agency shall be 31 responsible for ascertaining the compliance of printing 32 materials procured by or for it with this subsection. No 33 printing or reproduction contract shall be let and no 34 printing or reproduction shall be accomplished when that HB3809 Engrossed -36- LRB9008460JMsb 1 wording does not appear on the material to be printed or 2 reproduced. No publication may have written, stamped, or 3 printed on it, or attached to it, "Compliments of ........ 4 (naming a person)" or any words of similar import. 5 Section 25-65. Printing cost offsets. The chief 6 procurement officers may promulgate rules permitting the 7 exchange of advertising rights in or receipt of free copies 8 of printed products procured under this Article as a means of 9 reducing printing costs. The rules shall specify the 10 appropriate method of source selection to be used to 11 competitively acquire printing cost offsets. 12 ARTICLE 30 13 CONSTRUCTION AND CONSTRUCTION- 14 RELATED PROFESSIONAL SERVICES 15 Section 30-5. Applicability. Construction and 16 construction-related professional services shall be procured 17 in accordance with this Article. 18 Section 30-10. Authority. Construction agencies shall 19 have the authority to procure construction and 20 construction-related professional services. 21 Section 30-15. Method of source selection. 22 (a) Competitive sealed bidding. Except as provided 23 otherwise by this Code or by other law, all State 24 construction contracts shall be awarded by competitive sealed 25 bidding in accordance with Section 20-10. 26 (b) Construction-related professional services. All 27 construction-related professional services contracts shall be 28 awarded in accordance with the provisions of the 29 Architectural, Engineering, and Land Surveying Qualifications HB3809 Engrossed -37- LRB9008460JMsb 1 Based Selection Act and Article 35 of this Code. 2 "Professional services" means those services within the scope 3 of the practice of architecture, professional engineering, 4 structural engineering, or registered land surveying, as 5 defined by the laws of this State. 6 (c) Correctional facilities. Remodeling and 7 rehabilitation projects at correctional facilities under 8 $25,000 are exempt from the provisions of this Code only when 9 the Department of Corrections uses inmate labor for the 10 remodeling or rehabilitation. 11 Section 30-20. Prequalification. The Board shall 12 promulgate rules for the development of prequalified supplier 13 lists for construction and construction-related professional 14 services and the periodic updating of those lists. 15 Construction and construction-related professional services 16 contracts over $25,000 may be awarded to any qualified 17 suppliers pursuant to the provisions of this Code. 18 Section 30-25. Retention of a percentage of contract 19 price. Whenever any contract entered into by a construction 20 agency for the repair, remodeling, renovation, or 21 construction of a building or structure, for the construction 22 or maintenance of a highway, as those terms are defined in 23 Article 2 of the Illinois Highway Code, or for the 24 reclamation of abandoned lands as those terms are defined in 25 Article I of the Abandoned Mined Lands and Water Reclamation 26 Act provides for the retention of a percentage of the 27 contract price until final completion and acceptance of the 28 work, upon the request of the contractor and with the 29 approval of the construction agency the amount so retained 30 may be deposited under a trust agreement with an Illinois 31 bank of the contractor's choice and subject to the approval 32 of the construction agency. The contractor shall receive any HB3809 Engrossed -38- LRB9008460JMsb 1 interest on the deposited amount. Upon application by the 2 contractor, the trust agreement must contain, at a minimum, 3 the following provisions: 4 (1) the amount to be deposited subject to the 5 trust; 6 (2) the terms and conditions of payment in case of 7 default by the contractor; 8 (3) the termination of the trust agreement upon 9 completion of the contract; and 10 (4) the contractor shall be responsible for 11 obtaining the written consent of the bank trustee and for 12 any costs or service fees. 13 The trust agreement may, at the discretion of the 14 construction agency and upon request of the contractor, 15 become effective at the time of the first partial payment in 16 accordance with existing statutes and rules of the Board. 17 Section 30-30. Contracts in excess of $250,000. For 18 construction contracts in excess of $250,000, separate 19 specifications shall be prepared for all equipment, labor, 20 and materials in connection with the following 5 subdivisions 21 of the work to be performed: 22 (1) plumbing; 23 (2) heating, piping, refrigeration, and automatic 24 temperature control systems, including the testing and 25 balancing of those systems; 26 (3) ventilating and distribution systems for 27 conditioned air, including the testing and balancing of 28 those systems; 29 (4) electric wiring; and 30 (5) general contract work. 31 The specifications must be so drawn as to permit separate 32 and independent bidding upon each of the 5 subdivisions of 33 work. All contracts awarded for any part thereof shall award HB3809 Engrossed -39- LRB9008460JMsb 1 the 5 subdivisions of work separately to responsible and 2 reliable persons, firms, or corporations engaged in these 3 classes of work. The contracts, at the discretion of the 4 construction agency, may be assigned to the successful bidder 5 on the general contract work or to the successful bidder on 6 the subdivision of work designated by the construction agency 7 before the bidding as the prime subdivision of work, provided 8 that all payments will be made directly to the contractors 9 for the 5 subdivisions of work upon compliance with the 10 conditions of the contract. A contract may be let for one or 11 more buildings in any project to the same contractor. The 12 specifications shall require, however, that unless the 13 buildings are identical, a separate price shall be submitted 14 for each building. The contract may be awarded to the lowest 15 responsible bidder for each or all of the buildings included 16 in the specifications. 17 Section 30-35. Expenditure in excess of contract price. 18 (a) Germaneness. No funds in excess of the contract 19 price may be obligated or expended unless the additional work 20 to be performed or materials to be furnished is germane to 21 the original contract. Even if germane to the original 22 contract, no additional expenditures or obligations may, in 23 their total combined amounts, be in excess of the percentages 24 of the original contract amount set forth in subsection (b) 25 unless they have received the prior written approval of the 26 construction agency. In the event that the total of the 27 combined additional expenditures or obligations exceeds the 28 percentages of the original contract amount set forth in 29 subsection (b), the construction agency shall investigate all 30 the additional expenditures or obligations in excess of the 31 original contract amount and shall in writing approve or 32 disapprove subsequent expenditures or obligations and state 33 in detail the reasons for the approval or disapproval. HB3809 Engrossed -40- LRB9008460JMsb 1 (b) Written determination required. When the contract 2 amount is no more than $75,000, the percentage shall be 9% 3 (maximum $6,750). When the contract amount is between 4 $75,001 and $200,000, the percentage shall be 7% of the 5 amount above $75,000 plus $6,750, but not to exceed 7% of 6 $200,000 (maximum $14,000). When the contract amount is 7 between $200,001 and $500,000, the percentage shall be 5% of 8 the amount above $200,000 plus $14,000, but not to exceed 5% 9 of $500,000 (maximum $25,000). When the contract amount is 10 in excess of $500,000, the percentage shall be 3% of the 11 amount above $500,000 plus $25,000. 12 Section 30-40. Certification. Any contract entered into 13 or expenditure of funds by a construction agency for 14 remodeling, renovation, or construction, involving an 15 expenditure in excess of $10,000, shall be subject to the 16 supervision of a licensed architect or engineer. No payment 17 shall be made for the remodeling, renovation, or construction 18 unless the vouchers or invoice for the work is accompanied by 19 a written certificate of the licensed architect or engineer 20 that the payment represents work satisfactorily completed, 21 labor, or materials incorporated in or stored at the site of 22 the work; provided, periodic payments can be made during the 23 course of the work upon a certificate of the licensed 24 architect or engineer indicating the proportionate amount of 25 the total work completed satisfactorily. Architect or 26 engineer supervision and certification shall not apply to 27 refurbishing, repair, or maintenance projects that are 28 determined by the Illinois Capital Development Board's 29 Executive Director or its designated technical staff as not 30 being the practice of architecture as defined in Section 3 of 31 the Illinois Architecture Practice Act of 1989, nor the 32 practice of professional engineering as defined in Section 3 33 of the Professional Engineering Practice Act of 1989, nor the HB3809 Engrossed -41- LRB9008460JMsb 1 practice of structural engineering as defined in Section 5 of 2 the Structural Engineering Licensing Act of 1989. 3 Section 30-45. Other Acts. This Article is subject to 4 applicable provisions of the following Acts: 5 (1) the Prevailing Wage Act; 6 (2) the Public Construction Bond Act; 7 (3) the Public Works Employment Discrimination Act; 8 (4) the Public Works Preference Act; 9 (5) the Employment of Illinois Workers on Public 10 Works Act; 11 (6) the Public Contract Fraud Act; and 12 (7) the Illinois Construction Evaluation Act. 13 ARTICLE 35 14 PROFESSIONAL OR ARTISTIC SERVICES 15 Section 35-5. Applicability. All contracts for 16 professional or artistic services shall be procured in 17 accordance with the provisions of this Article. 18 Section 35-10. Authority. Each State agency shall have 19 the authority to procure its own professional or artistic 20 services. 21 Section 35-15. Method of source selection. Competitive 22 selection procedures. Except as provided otherwise by this 23 Code or by other law, all State contracts for professional or 24 artistic services of less than $50,000 shall be awarded by a 25 competitive request for proposal process in accordance with 26 this Section and Section 20-35. Except as provided otherwise 27 by this Code or by other law, all State contracts for 28 professional or artistic services of $50,000 or more shall be 29 awarded by competitive sealed bidding in accordance with HB3809 Engrossed -42- LRB9008460JMsb 1 Section 20-10. Nothing in this Section shall prohibit a 2 contract of less than $50,000 from being awarded by 3 competitive sealed bidding in accordance with Section 20-10. 4 Section 35-17. Prequalification. 5 (a) The Board shall develop appropriate and reasonable 6 prequalification standards and categories of professional and 7 artistic services. 8 (b) The prequalifications and categorizations shall be 9 published for public comment prior to their submission to the 10 Joint Committee on Administrative Rules for approval. 11 (c) Each State purchasing officer shall assemble and 12 maintain a comprehensive list of prequalified and categorized 13 businesses and persons. 14 (d) Prequalification shall not be used to bar or prevent 15 any qualified business or person for bidding or responding to 16 invitations for bid or proposal. 17 Section 35-20. Uniformity in procurement. 18 (a) The Board shall develop, cause to be printed, and 19 distribute uniform documents for the solicitation, review, 20 and acceptance of all professional and artistic services. 21 (b) All State purchasing officers and their designees 22 shall use the uniform procedures and forms specified in this 23 Code for all professional and artistic services. 24 (c) These forms shall include in detail, in writing, at 25 least: 26 (1) a description of the goal to be achieved; 27 (2) the services to be performed; 28 (3) the need for the service; 29 (4) the qualifications that are necessary; and 30 (5) a plan for post-performance review. 31 Section 35-25. Uniformity in contract. HB3809 Engrossed -43- LRB9008460JMsb 1 (a) The Board shall develop, cause to be printed, and 2 distribute uniform documents for the contracting of 3 professional and artistic services. 4 (b) All State purchasing officers and their designees 5 shall use these uniform contracts and forms in contracting 6 for all professional and artistic services. 7 (c) These contracts and forms shall include in detail, 8 in writing, at least: 9 (1) the detail listed in subsection (c) of Section 10 35-20; 11 (2) the duration of the contract, with a schedule 12 of delivery, when applicable; 13 (3) the method for charging and measuring cost 14 (hourly, per day, etc.); 15 (4) the rate of remuneration; and 16 (5) the maximum price. 17 Section 35-30. Awards. 18 (a) All State contracts for professional and artistic 19 services that are awarded using the competitive request for 20 proposal process shall be awarded as outlined in this 21 Section. 22 (b) For each contract offered, the chief procurement 23 officer, State purchasing officer, or his or her designee 24 shall use the appropriate standard solicitation forms 25 available from the Board. 26 (c) Prepared forms shall be submitted to the State 27 purchasing officer for publication in the Illinois 28 Procurement Bulletin and circulation to the State purchasing 29 officer's list of prequalified vendors. Notice of the offer 30 or request for proposal shall appear at least 28 days before 31 the response to the offer is due. 32 (d) All interested respondents shall return their 33 responses to the State purchasing officer, who shall open and HB3809 Engrossed -44- LRB9008460JMsb 1 record them. The State purchasing officer then shall forward 2 the responses, together with any information he or she has 3 available about the qualifications and other State work of 4 the respondents. 5 (e) After evaluation, ranking, and selection, the 6 responsible State purchasing officer, or his or her designee 7 shall notify the Board of the successful respondent and shall 8 forward a copy of the signed contract for the Board's file. 9 The Board shall publish the names of the responsible 10 procurement decision-maker, the agency letting the contract, 11 the successful respondent, a contract reference, and value of 12 the let contract in the next appropriate volume of the 13 Illinois Procurement Bulletin. 14 (f) For all professional and artistic contracts with 15 annualized value that exceeds $25,000, evaluation and ranking 16 by price are required. When the lowest proposal is not 17 selected, the chief procurement officer or the State 18 purchasing officer shall forward together with the contract 19 notice of who made the low proposal and a written decision as 20 to why another was selected to the Board. The Board shall 21 publish as provided in subsection (e), but shall include 22 notice of the chief procurement officer's or State purchasing 23 officer's written decision. 24 Section 35-32. Exception to competitive request for 25 proposal procedure. 26 (a) An exception to Section 35-30 is allowed at the 27 discretion of the chief procurement officer or the State 28 purchasing officer, but not their designees, for professional 29 and artistic contracts that are nonrenewable, are one year or 30 less in duration, and have a value of less than $10,000. 31 (b) All exceptions granted under this Section must still 32 be submitted to the Board and published as provided in 33 subsection (f) of Section 35-30, shall name the authorizing HB3809 Engrossed -45- LRB9008460JMsb 1 chief procurement officer or State purchasing officer, and 2 shall include a brief explanation of the reason for the 3 exception. 4 Section 35-35. Subcontractors. 5 (a) Use specified. Any contract for professional or 6 artistic services shall state whether the services of a 7 subcontractor will be used. The contract shall include the 8 names and addresses of all subcontractors and the anticipated 9 amount of money that they will receive under the contract. 10 (b) Amendment. If at any time a contractor for 11 professional or artistic services that had not intended to 12 use the services of a subcontractor decides to use a 13 subcontractor, the contractor and the State agency shall file 14 an amendment to the original contract with the Comptroller 15 stating the names and addresses of all subcontractors and the 16 anticipated amount of money that they will receive under the 17 original contract. 18 ARTICLE 40 19 REAL PROPERTY AND CAPITAL IMPROVEMENT LEASES 20 Section 40-5. Applicability. All leases for real 21 property or capital improvements, including office and 22 storage space, buildings, and other facilities for State 23 agencies, shall be procured in accordance with the provisions 24 of this Article. 25 Section 40-10. Authority. State purchasing officers 26 shall have the authority to procure leases for real property 27 or capital improvements, except as that authority may be 28 limited by the Board or delegated by the State purchasing 29 officer in accordance with Section 10-15. HB3809 Engrossed -46- LRB9008460JMsb 1 Section 40-15. Method of source selection. 2 (a) Request for information. Except as provided in 3 subsections (b) and (c), all State contracts for leases of 4 real property or capital improvements shall be awarded by a 5 request for information process in accordance with Section 6 40-20. 7 (b) Other methods. A request for information process 8 need not be used in procuring any of the following leases: 9 (1) Property of less than 10,000 square feet. 10 (2) Rent of less than $100,000 per year. 11 (3) Duration of less than one year that cannot be 12 renewed. 13 (4) Specialized space available at only one 14 location. 15 (c) Leases with governmental units. Leases with other 16 governmental units may be negotiated without using the 17 request for information process when deemed by the Board to 18 be in the best interest of the State. 19 Section 40-20. Request for information. 20 (a) Conditions for use. Leases shall be procured by 21 request for information except as otherwise provided in 22 Section 40-15. 23 (b) Form. A request for information shall be issued and 24 shall include: 25 (1) the type of property to be leased; 26 (2) the proposed uses of the property; 27 (3) the duration of the lease; 28 (4) the preferred location of the property; and 29 (5) a general description of the configuration 30 desired. 31 (c) Public notice. Public notice of the request for 32 information for the availability of real property to lease 33 shall be published in the Illinois Procurement Bulletin at HB3809 Engrossed -47- LRB9008460JMsb 1 least 14 days before the date set forth in the request for 2 receipt of responses and shall also be published in similar 3 manner in a newspaper of general circulation in the community 4 or communities where the using agency is seeking space. 5 (d) Response. The request for information response 6 shall consist of written information sufficient to show that 7 the respondent can meet minimum criteria set forth in the 8 request. State purchasing officers may enter into 9 discussions with respondents for the purpose of clarifying 10 State needs and the information supplied by the respondents. 11 On the basis of the information supplied and discussions, if 12 any, a State purchasing officer shall make a written 13 determination identifying the responses that meet the minimum 14 criteria set forth in the request for information. 15 Negotiations shall be entered into with all qualified 16 respondents for the purpose of securing a lease that is in 17 the best interest of the State. A written report of the 18 negotiations shall be retained in the lease files and shall 19 include the reasons for the final selection. All leases 20 shall be reduced to writing and filed in accordance with the 21 provisions of Section 20-80. 22 (e) Exceptions. A request for information process need 23 not be used and the procurement may be negotiated when, 24 according to Board rules, the purchasing officer determines 25 that negotiations are in the best interest of the State in 26 the following situations: 27 (1) renewal or extension of leases; 28 (2) temporary space as defined by rule; or 29 (3) specialized space available at only one 30 location and parking. 31 Section 40-25. Length of leases. 32 (a) Maximum term. Leases shall be for a term not to 33 exceed 10 years and shall include a termination option in HB3809 Engrossed -48- LRB9008460JMsb 1 favor of the State after 5 years. 2 (b) Renewal. Leases may include a renewal option. An 3 option to renew may be exercised only when a State purchasing 4 officer determines in writing that renewal is in the best 5 interest of the State. 6 (c) Subject to appropriation. All leases shall recite 7 that they are subject to termination and cancellation in any 8 year for which the General Assembly fails to make an 9 appropriation to make payments under the terms of the lease. 10 Section 40-30. Purchase option. Initial leases of all 11 space in entire, free-standing buildings shall include an 12 option to purchase exercisable by the State, unless the 13 purchasing officer determines that inclusion of such purchase 14 option is not in the State's best interest and makes that 15 determination in writing along with the reasons for making 16 that determination. Leases from governmental units and 17 not-for-profit entities are exempt from requirements of this 18 Section. 19 Section 40-35. Rent without occupancy. Except when 20 deemed by the Board to be in the best interest of the State, 21 no State agency may incur rental obligations before occupying 22 the space rented. 23 Section 40-40. Local site preferences. Upon the request 24 of the chief executive officer of a unit of local government, 25 leasing preferences may be given to sites located in 26 enterprise zones, tax increment districts, or redevelopment 27 districts. 28 ARTICLE 42 29 CONCESSIONS HB3809 Engrossed -49- LRB9008460JMsb 1 Section 42-10. Concessions and leases of State property. 2 (a) Authority. Concessions, including the assignment, 3 license, sale, or transfer of interests in or rights to 4 discoveries, inventions, patents, or copyrightable works, and 5 leases of State property, including easements, may be entered 6 into by the State agency with jurisdiction over the property, 7 whether tangible or intangible. 8 (b) Awards. All concessions and leases of State 9 property shall be reduced to writing and shall be awarded 10 under the provisions of Article 20, except that the contract 11 shall be awarded to the highest and best bidder or offeror. 12 Section 42-20. Contract duration and terms. The 13 duration and terms of concessions and leases of State 14 property shall be in accordance with applicable law or rule. 15 ARTICLE 45 16 PREFERENCES 17 Section 45-5. Procurement preferences. To promote 18 business and employment opportunities in Illinois, 19 procurement preferences are established and shall be 20 applicable to any procurement made under this Code. 21 Section 45-10. Resident bidders. 22 (a) Amount of preference. 23 (1) A resident contractor shall be allowed a 24 preference as against a non-resident contractor in the 25 event of a tie bid. 26 (2) A resident contractor shall be allowed a 27 preference as against a non-resident contractor from any 28 state that gives or requires a preference to contractors 29 from that state. The preference shall be equal to the 30 preference given or required by the state of the HB3809 Engrossed -50- LRB9008460JMsb 1 non-resident contractor. 2 (3) If only non-resident contractors are competing, 3 the purchasing agency is within its right to specify that 4 Illinois labor and manufacturing locations be used as a 5 part of the manufacturing process, if applicable. This 6 specification may be negotiated as part of the 7 procurement process. 8 (b) Residency. A resident bidder is a person authorized 9 to transact business in this State and having a bona fide 10 establishment for transacting business within this State 11 where it was actually transacting business on the date when 12 any bid for a public contract is first advertised or 13 announced. A resident bidder includes a foreign corporation 14 duly authorized to transact business in this State that has a 15 bona fide establishment for transacting business within this 16 State where it was actually transacting business on the date 17 when any bid for a public contract is first advertised or 18 announced. 19 (c) Federal funds. This Section does not apply to any 20 contract for any project as to which federal funds are 21 available for expenditure when its provisions may be in 22 conflict with federal law or federal regulation. 23 Section 45-15. Soybean oil-based ink. 24 (a) Contracts requiring the procurement of printing 25 services shall specify the use of soybean oil-based ink 26 unless a State purchasing officer determines that another 27 type of ink is required to assure high quality and reasonable 28 pricing of the printed product. 29 (b) All other printing done by or for the State shall 30 use soybean oil-based ink unless the agency by or for whom 31 the printing is done determines that another type of ink is 32 required to assure high quality and reasonable pricing of the 33 printed product. Printing done by or for the State in HB3809 Engrossed -51- LRB9008460JMsb 1 soybean oil-based ink shall state, if practical, that soybean 2 oil-based ink was used. 3 Section 45-20. Recycled materials. When a public 4 contract is to be awarded to the lowest responsible bidder, 5 an otherwise qualified bidder who will fulfill the contract 6 through the use of products made of recycled materials may, 7 on a pilot basis or in accordance with a pilot study, be 8 given preference over other bidders unable to do so, provided 9 that the cost included in the bid of products made of 10 recycled materials is not more than 10% greater than the cost 11 of products not made of recycled materials. 12 Section 45-25. Recyclable paper. All paper purchased 13 for use by State agencies must be recyclable paper unless 14 recyclable paper cannot be used to meet the requirements of 15 the State agencies. State agencies shall determine their 16 paper requirements to allow the use of recyclable paper 17 whenever possible, including without limitation using plain 18 paper rather than colored paper that is not recyclable. 19 Section 45-30. Correctional industries. Notwithstanding 20 any other provision to the contrary, the Board shall, in 21 consultation with the Department of Corrections, determine 22 which articles, materials, industry related services, food 23 stuffs, and supplies that are produced or manufactured by 24 persons confined in institutions and facilities of the 25 Department of Corrections shall be given preference by 26 purchasing agencies procuring those items. The Board shall 27 develop and distribute to the various Procurement and Using 28 Agencies procedures for executing this Section. 29 Section 45-35. Sheltered workshops for the severely 30 handicapped. HB3809 Engrossed -52- LRB9008460JMsb 1 (a) Qualification. Supplies and services may be 2 procured without advertising or calling for bids from any 3 qualified not-for-profit agency for the severely handicapped 4 that: 5 (1) complies with Illinois laws governing private 6 not-for-profit organizations; 7 (2) is certified as a sheltered workshop by the 8 Wage and Hour Division of the United States Department of 9 Labor; and 10 (3) meets the Department of Human Services just 11 standards for rehabilitation facilities. 12 (b) Participation. To participate, the not-for-profit 13 agency must have indicated an interest in providing the 14 supplies and services, must meet the specifications and needs 15 of the using agency, and must set a fair market price. 16 (c) Committee. There is created within the jurisdiction 17 of the Board a committee to facilitate the purchase of 18 products and services of persons so severely handicapped by a 19 physical or mental disability that they cannot engage in 20 normal competitive employment. The committee shall consist 21 of the Director of Central Management Services, the Director 22 of Human Services, and 2 representatives from private 23 business and 2 public members all appointed by the Governor 24 who are knowledgeable in the needs and concerns of 25 rehabilitation facilities in Illinois. The public members 26 shall serve 2 year terms, commencing upon appointment and 27 every 2 years thereafter. A public member may be 28 reappointed, and vacancies may be filled by appointment for 29 the completion of the term. The members shall serve without 30 compensation but shall be reimbursed for expenses at a rate 31 equal to that of State employees on a per diem basis by the 32 Board. All members shall be entitled to vote on issues before 33 the committee. 34 The committee shall have the following powers and duties: HB3809 Engrossed -53- LRB9008460JMsb 1 (1) To request from any State agency information as 2 to product specification and service requirements in 3 order to carry out its purpose. 4 (2) To meet quarterly or more often as necessary to 5 carry out its purposes. 6 (3) To request a quarterly report from each 7 participating qualified not-for-profit agency for the 8 severely handicapped describing the volume of sales for 9 each product or service sold under this Section. 10 (4) To prepare a report for the Governor and the 11 Board annually. 12 (5) To prepare a publication that lists all 13 supplies and services currently available from any 14 qualified not-for-profit agency for the severely 15 handicapped. This list and any revisions shall be 16 distributed to all purchasing agencies. 17 (6) To encourage diversity in supplies and services 18 provided by qualified not-for-profit agencies for the 19 severely handicapped and discourage unnecessary 20 duplication or competition among facilities. 21 (7) To develop guidelines to be followed by 22 qualifying agencies for participation under the 23 provisions of this Section. The guidelines shall be 24 developed within 6 months after the effective date of 25 this Code and made available on a nondiscriminatory basis 26 to all qualifying agencies. 27 (8) To review all bids submitted under the 28 provisions of this Section and reject any bid for any 29 purchase that is determined to be substantially more than 30 the purchase would have cost had it been competitively 31 bid. 32 (d) Former committee. The committee created under 33 subsection (c) shall replace the committee created under 34 Section 7-2 of the Illinois Purchasing Act, which shall HB3809 Engrossed -54- LRB9008460JMsb 1 continue to operate until the appointments under subsection 2 (c) are made. 3 Section 45-40. Gas mileage. 4 (a) Specification. Contracts for the purchase or lease 5 of new passenger automobiles, other than station wagons, 6 vans, four-wheel drive vehicles, emergency vehicles, and 7 police and fire vehicles, shall specify the procurement of a 8 model that, according to the most current mileage study 9 published by the U.S. Environmental Protection Agency, can 10 achieve at least the minimum average fuel economy in miles 11 per gallon imposed upon manufacturers of vehicles under Title 12 V of The Motor Vehicle Information and Cost Savings Act. 13 (b) Exemptions. The State purchasing officer may exempt 14 procurements from the requirement of subsection (a) when 15 there is a demonstrated need, submitted in writing, for an 16 automobile that does not meet the minimum average fuel 17 economy standards. The Board shall promulgate rules for 18 determining need consistent with the intent of this Section. 19 Section 45-45. Small businesses. 20 (a) Set-asides. The Board has authority to designate as 21 small business set-asides a fair proportion of construction, 22 supply, and service contracts for award to small businesses 23 in Illinois. Advertisements for bids or offers for those 24 contracts shall specify designation as small business 25 set-asides. In awarding the contracts, only bids or offers 26 from qualified small businesses shall be considered. 27 (b) Small business. "Small business" means a business 28 that is independently owned and operated and that is not 29 dominant in its field of operation. The Board shall 30 establish a detailed definition by rule, using in addition to 31 the foregoing criteria other criteria, including the number 32 of employees and the dollar volume of business. When HB3809 Engrossed -55- LRB9008460JMsb 1 computing the size status of a bidder, annual sales and 2 receipts of the bidder and all of its affiliates shall be 3 included. The maximum number of employees and the maximum 4 dollar volume that a small business may have under the rules 5 promulgated by the Board may vary from industry to industry 6 to the extent necessary to reflect differing characteristics 7 of those industries, subject to the following limitations: 8 (1) No wholesale business is a small business if 9 its annual sales for its most recently completed fiscal 10 year exceed $7,500,000. 11 (2) No retail business or business selling services 12 is a small business if its annual sales and receipts 13 exceed $1,500,000. 14 (3) No manufacturing business is a small business 15 if it employs more than 250 persons. 16 (4) No construction business is a small business if 17 its annual sales and receipts exceed $3,000,000. 18 (c) Fair proportion. For the purpose of subsection (a), 19 a fair proportion of construction contracts shall be no less 20 than 25% nor more than 40% of the annual total contracts for 21 construction. 22 (d) Withdrawal of designation. A small business 23 set-aside designation may be withdrawn by the purchasing 24 agency when deemed in the best interests of the State. Upon 25 withdrawal, all bids or offers shall be rejected, and the 26 bidders or offerors shall be notified of the reason for 27 rejection. The contract shall then be awarded in accordance 28 with this Code without the designation of small business 29 set-aside. 30 (e) Small business assistance. The purchasing officers 31 shall assist small businesses by: 32 (1) Compiling and maintaining a comprehensive 33 bidders list of small businesses. In this duty, he or 34 she shall cooperate with the Federal Small Business HB3809 Engrossed -56- LRB9008460JMsb 1 Administration in locating potential sources for various 2 products and services. 3 (2) Assisting small businesses in complying with 4 the procedures for bidding on State contracts. 5 (3) Examining requests from State agencies for the 6 purchase of property or services to help determine which 7 invitations to bid are to be designated small business 8 set-asides. 9 (4) Making recommendations to the Board for the 10 simplification of specifications and terms in order to 11 increase the opportunities for small business 12 participation. 13 (5) Assisting in investigations by purchasing 14 agencies to determine the responsibility of bidders on 15 small business set-asides. 16 (f) Small business annual report. The State purchasing 17 officer designated under subsection (e) shall annually before 18 December 1 report in writing to the General Assembly 19 concerning the awarding of contracts to small businesses. 20 The report shall include the total value of awards made in 21 the preceding fiscal year under the designation of small 22 business set-aside. 23 The requirement for reporting to the General Assembly 24 shall be satisfied by filing copies of the report as required 25 by Section 3.1 of the General Assembly Organization Act. 26 Section 45-50. Illinois agricultural products. In 27 awarding contracts requiring the procurement of agricultural 28 products, preference may be given to an otherwise qualified 29 bidder or offeror who will fulfill the contract through the 30 use of agricultural products grown in Illinois. 31 Section 45-55. Corn-based plastics. In awarding 32 contracts requiring the procurement of plastic products, HB3809 Engrossed -57- LRB9008460JMsb 1 preference may be given to an otherwise qualified bidder or 2 offeror who will fulfill the contract through the use of 3 plastic products made from Illinois corn by-products. 4 Section 45-60. Vehicles powered by agricultural 5 commodity-based fuel. In awarding contracts requiring the 6 procurement of vehicles, preference may be given to an 7 otherwise qualified bidder or offeror who will fulfill the 8 contract through the use of vehicles powered by ethanol 9 produced from Illinois corn or biodiesel fuels produced from 10 Illinois soybeans. 11 Section 45-65. Additional preferences. This Code is 12 subject to applicable provisions of: 13 (1) the Public Purchases in Other States Act; 14 (2) the Illinois Mined Coal Act; 15 (3) the Steel Products Procurement Act; 16 (4) the Veterans Preference Act; and 17 (5) the Business Enterprise for Minorities, 18 Females, and Disabled Persons Act. 19 ARTICLE 50 20 PROHIBITIONS, RESTRICTIONS, AND PENALTIES 21 Section 50-1. Purpose. It is the express duty of all 22 chief procurement officers, State purchasing officers, and 23 their designees to maximize the value of the expenditure of 24 public moneys in procuring goods, services, and contracts for 25 the State of Illinois and to act in a manner that maintains 26 the integrity and public trust of State government. In 27 discharging this duty, they are charged to use all available 28 information, reasonable efforts, and reasonable actions to 29 protect, safeguard, and maintain the procurement process of 30 the State of Illinois. HB3809 Engrossed -58- LRB9008460JMsb 1 Section 50-5. Bribery. 2 (a) Prohibition. No person or business shall be awarded 3 a contract or subcontract under this Code who: 4 (1) has been convicted under the laws of Illinois 5 or any other state of bribery or attempting to bribe an 6 officer or employee of the State of Illinois or any other 7 state in that officer's or employee's official capacity; 8 or 9 (2) has made an admission of guilt of that conduct 10 that is a matter of record but has not been prosecuted 11 for that conduct. 12 (b) Businesses. No business shall be barred from 13 contracting with any unit of State or local government as a 14 result of a conviction under this Section of any employee or 15 agent of the business if the employee or agent is no longer 16 employed by the business and: 17 (1) the business has been finally adjudicated not 18 guilty; or 19 (2) the business demonstrates to the governmental 20 entity with which it seeks to contract, and that entity 21 finds that the commission of the offense was not 22 authorized, requested, commanded, or performed by a 23 director, officer, or high managerial agent on behalf of 24 the business as provided in paragraph (2) of subsection 25 (a) of Section 5-4 of the Criminal Code of 1961. 26 (c) Conduct on behalf of business. For purposes of this 27 Section, when an official, agent, or employee of a business 28 committed the bribery or attempted bribery on behalf of the 29 business and in accordance with the direction or 30 authorization of a responsible official of the business, the 31 business shall be chargeable with the conduct. 32 (d) Certification. Every bid submitted to and contract 33 executed by the State shall contain a certification by the 34 contractor that the contractor is not barred from being HB3809 Engrossed -59- LRB9008460JMsb 1 awarded a contract or subcontract under this Section. A 2 contractor who makes a false statement, material to the 3 certification, commits a Class 3 felony. 4 Section 50-10. Felons. Unless otherwise provided, no 5 person or business convicted of a felony shall do business 6 with the State of Illinois or any State agency from the date 7 of conviction until 5 years after the date of completion of 8 the sentence for that felony, unless no person held 9 responsible by a prosecutorial office for the facts upon 10 which the conviction was based continues to have any 11 involvement with the business. 12 Section 50-15. Conflicts of interest. 13 (a) Prohibition. It is unlawful for any person holding 14 an elective office in this State, holding a seat in the 15 General Assembly, or appointed to or employed in any of the 16 offices or agencies of State government, irrespective of the 17 rate of compensation for that employment, or who is an 18 officer or employee of the Capital Development Board or the 19 Illinois Toll Highway Authority, or who is the spouse or 20 minor child of any such person to have or acquire any 21 contract, or any direct pecuniary interest in any contract 22 therein, whether for stationery, printing, paper, or any 23 services, materials, or supplies, that will be wholly or 24 partially satisfied by the payment of funds appropriated by 25 the General Assembly of the State of Illinois or in any 26 contract of the Capital Development Board or the Illinois 27 Toll Highway Authority. 28 (b) Interests. It is unlawful for any firm, 29 partnership, association, or corporation in which any person 30 listed in subsection (a) is entitled to receive (i) more than 31 7 1/2% of the total distributable income, or (ii) an amount 32 in excess of the salary of the Governor, whichever is lower, HB3809 Engrossed -60- LRB9008460JMsb 1 to have or acquire any such contract or direct pecuniary 2 interest therein. 3 (c) Combined interests. It is unlawful for any firm, 4 partnership, association, or corporation in which any person 5 listed in subsection (a) together with his or her spouse or 6 minor children is entitled to receive (i) more than 15%, in 7 the aggregate, of the total distributable income, or (ii) an 8 amount in excess of 2 times the Governor's salary, whichever 9 is lower, to have or acquire any such contract or direct 10 pecuniary interest therein. 11 (d) Securities. Nothing in this Section invalidates the 12 provisions of any bond or other security previously offered 13 or to be offered for sale or sold by or for the State of 14 Illinois. 15 (e) Prior interests. This Section does not affect the 16 validity of any contract made between the State and an 17 officer or employee of the State or member of the General 18 Assembly, his or her spouse, minor child or any combination 19 of those persons if that contract was in existence before his 20 or her election or employment as an officer, member, or 21 employee. The contract is void, however, if it cannot be 22 completed within 6 months after the officer, member, or 23 employee takes office or is employed. 24 (f) Exceptions. 25 (1) Public aid payments. This Section does not 26 apply to payments made for a public aid recipient. 27 (2) Teaching. This Section does not apply to a 28 contract for personal services as a teacher or school 29 administrator between a member of the General Assembly or 30 his or her spouse, or a State officer or employee or his 31 or her spouse, and any school district, public community 32 college district, or the State colleges and universities 33 and their governing boards. 34 (3) Ministerial duties. This Section does not HB3809 Engrossed -61- LRB9008460JMsb 1 apply to a contract for personal services of a wholly 2 ministerial character, including but not limited to 3 services as a laborer, clerk, typist, stenographer, page, 4 bookkeeper, receptionist, or telephone switchboard 5 operator, made by a spouse or minor child of an elective 6 or appointive State officer or employee or of a member of 7 the General Assembly. 8 (4) Child and family services. This Section does 9 not apply to payments made to a member of the General 10 Assembly, a State officer or employee, his or her spouse 11 or minor child acting as a foster parent, homemaker, 12 advocate, or volunteer for or in behalf of a child or 13 family served by the Department of Children and Family 14 Services. 15 (g) Penalty. Any person convicted of a violation of 16 this Section is guilty of a business offense and shall be 17 fined not less than $1,000 nor more than $5,000. 18 Section 50-20. Negotiations. 19 (a) Prohibition. Except as provided in Section 50-25, 20 it is unlawful for any person employed in or on a continual 21 contractual relationship with any of the offices or agencies 22 of State government to participate in contract negotiations 23 on behalf of that office or agency with any firm, 24 partnership, association, or corporation with whom that 25 person has a contract for future employment or is negotiating 26 concerning possible future employment. 27 (b) Penalty. Any person violating this Section is 28 guilty of a business offense and shall be fined not less than 29 $1,000 and not more than $5,000. 30 Section 50-25. Exemptions. The Board may exempt named 31 individuals or business from the prohibitions of Section 32 50-5, 50-10, or 50-15 when, in the discretion of the Board, HB3809 Engrossed -62- LRB9008460JMsb 1 it is determined that the public interest in having the 2 individual in the service of the State outweighs the public 3 policy evidenced in those Sections. An exemption is 4 effective only when it is filed with the Secretary of State 5 and the Comptroller and includes a statement setting forth 6 the name of the individual and all the pertinent facts that 7 would make that Section applicable, setting forth the reason 8 for the exemption, and declaring the individual exempted from 9 that Section. Notice of each exemption shall be published in 10 the Illinois Procurement Bulletin. 11 Section 50-30. Inducement. Any person who offers or 12 pays any money or other valuable thing to any person to 13 induce him or her not to bid for a State contract or as 14 recompense for not having bid on a State contract is guilty 15 of a Class 4 felony. Any person who accepts any money or 16 other valuable thing for not bidding for a State contract or 17 who withholds a bid in consideration of the promise for the 18 payment of money or other valuable thing is guilty of a Class 19 4 felony. 20 Section 50-35. Revolving door prohibition. State 21 employees whose duties with the State were directly related 22 to procurement may not, for a period of 2 years following 23 separation of service with the employing agency, have a 24 contract with that agency, or engage in lobbying that agency 25 whether directly or as an employee or agent of another. 26 Section 50-37. Disclosure and potential conflicts of 27 interest. 28 (a) All offers from responsive bidders or offerors with 29 an annual value of more than $10,000 shall be accompanied by 30 disclosure of the financial interests of the contractor, 31 bidder, or proposer. The financial disclosure of each HB3809 Engrossed -63- LRB9008460JMsb 1 successful bidder or offeror shall become part of the 2 publicly available contract or procurement file maintained by 3 the appropriate chief procurement officer. 4 (b) Disclosure by the responsive bidders or offerors 5 shall include any ownership or distributive income share that 6 is in excess of 5%, or an amount greater than 60% of the 7 annual salary of the Governor, of the bidding entity or its 8 parent entity, whichever is less, unless the contractor or 9 bidder is a publicly traded entity subject to Federal 10K 10 reporting, in which case it may submit its 10K disclosure in 11 place of the prescribed disclosure. The form of disclosure 12 shall be prescribed by the applicable chief procurement 13 officer and must include at least the names, addresses, and 14 dollar or proportionate share of ownership of each person 15 identified in this Section, their instrument of ownership or 16 beneficial relationship, and notice of any potential conflict 17 of interest resulting from the current ownership or 18 beneficial relationship of each person identified in this 19 Section having in addition any of the following 20 relationships: 21 (1) State employment, currently or in the previous 22 3 years, including contractual employment of services. 23 (2) State employment of spouse, father, mother, 24 son, or daughter, including contractual employment for 25 services in the previous 2 years. 26 (3) Elective status; the holding of elective office 27 of the State of Illinois, the government of the United 28 States, any unit of local government authorized by the 29 Constitution of the State of Illinois or the statutes of 30 the State of Illinois currently or in the previous 3 31 years. 32 (4) Relationship to anyone holding elective office 33 currently or in the previous 2 years; spouse, father, 34 mother, son, or daughter. HB3809 Engrossed -64- LRB9008460JMsb 1 (5) Appointive office; the holding of any 2 appointive government office of the State of Illinois, 3 the United States of America, or any unit of local 4 government authorized by the Constitution of the State of 5 Illinois or the statutes of the State of Illinois, which 6 office entitles the holder to compensation in excess of 7 expenses incurred in the discharge of that office 8 currently or in the previous 3 years. 9 (6) Relationship to anyone holding appointive 10 office currently or in the previous 2 years; spouse, 11 father, mother, son, or daughter. 12 (7) Employment, currently or in the previous 3 13 years, as or by any registered lobbyist of the State 14 government. 15 (8) Relationship to anyone who is or was a 16 registered lobbyist in the previous 2 years; spouse, 17 father, mother, son, or daughter. 18 (9) Compensated employment, currently or in the 19 previous 3 years, by any registered election or 20 re-election committee registered with the Secretary of 21 State or any county clerk in the State of Illinois, or 22 any political action committee registered with either the 23 Secretary of State or the Federal Board of Elections. 24 (10) Relationship to anyone; spouse, father, 25 mother, son, or daughter; who is or was a compensated 26 employee in the last 2 years of any registered election 27 or re-election committee registered with the Secretary of 28 State or any county clerk in the State of Illinois, or 29 any political action committee registered with either the 30 Secretary of State or the Federal Board of Elections. 31 (c) The disclosure in subsection (b) is not intended to 32 prohibit or prevent any contract. The disclosure is meant to 33 fully and publicly disclose any potential conflict to the 34 chief procurement officers, State purchasing officers, their HB3809 Engrossed -65- LRB9008460JMsb 1 designees, and executive officers so they may adequately 2 discharge their duty to protect the State. 3 (d) In the case of any contract for personal services in 4 excess of $50,000; any contract competitively bid in excess 5 of $250,000; any other contract in excess of $50,000; when a 6 potential for a conflict of interest is identified, 7 discovered, or reasonably suspected it shall be reviewed and 8 commented on in writing by the Governor of the State of 9 Illinois, or by an executive ethics board or commission he or 10 she might designate. The comment shall be returned to the 11 responsible chief procurement officer who must rule in 12 writing whether to void or allow the contract, bid, offer, or 13 proposal weighing the best interest of the State of Illinois. 14 The comment and determination shall become a publicly 15 available part of the contract, bid, or proposal file. 16 (e) These threshholds and disclosure do not relieve the 17 chief procurement officers, the State purchasing officers, or 18 their designees from reasonable care and diligence for any 19 contract, bid, offer, or proposal. The chief procurement 20 officers, the State purchasing officers, or their designees 21 shall be responsible for using any reasonably known and 22 publicly available information to discover any undisclosed 23 potential conflict of interest and act to protect the best 24 interest of the State of Illinois. 25 (f) Inadvertent or accidental failure to fully disclose 26 shall render the contract, bid, proposal, or relationship 27 voidable by the chief procurement officer if he or she deems 28 it in the best interest of the State of Illinois and, at his 29 or her discretion, may be cause for barring from future 30 contracts, bids, proposals, or relationships with the State 31 for a period of up to 2 years. 32 (g) Intentional, willful, or material failure to 33 disclose shall render the contract, bid, proposal, or 34 relationship voidable by the chief procurement officer if he HB3809 Engrossed -66- LRB9008460JMsb 1 or she deems it in the best interest of the State of Illinois 2 and shall result in debarment from future contracts, bids, 3 proposals, or relationships for a period of not less than 2 4 years and not more than 10 years. Reinstatement after 2 5 years and before 10 years must be reviewed and commented on 6 in writing by the Governor of the State of Illinois, or by an 7 executive ethics board or commission he or she might 8 designate. The comment shall be returned to the responsible 9 chief procurement officer who must rule in writing whether 10 and when to reinstate. 11 (h) In addition, all disclosures shall note any other 12 current or pending contracts, proposals, leases, or other 13 ongoing procurement relationships the bidding, proposing, or 14 offering entity has with any other unit of State government 15 and shall clearly identify the unit and the contract, 16 proposal, lease, or other relationship. 17 Section 50-45. Disclosures by State employees and 18 officers. 19 (a) Contract negotiations. Any person participating in 20 the making of a contract, or who enters into a contract, on 21 behalf of an office or agency of State government with the 22 knowledge that his or her spouse, child, parent, or sibling 23 is entitled to receive (i) more than 7.5% of the total 24 distributable income of the other contracting party or (ii) 25 an amount in excess of the salary of the Governor, whichever 26 is lower, or in which that child, parent, or sibling, 27 together with his or her spouse or minor children, is 28 entitled to receive (i) more than 15%, in the aggregate, of 29 the total distributable income of the other contracting party 30 or (ii) an amount in excess of 2 times the salary of the 31 Governor, whichever is lower, shall immediately file a 32 written statement setting out the facts of the transaction. 33 The statement shall be filed with the administrative head of HB3809 Engrossed -67- LRB9008460JMsb 1 the office or agency and be kept available for public 2 inspection. A copy of the statement shall be forwarded by 3 the administrative head to the Inspector General. A person 4 failing to file a statement or filing a false statement is 5 guilty of a business offense and shall be fined not less than 6 $1,000 and not more than $5,000. Any such contract is 7 contrary to public policy and may be voided at the option of 8 the State unless it is shown to be in the best interests of 9 the State. Moreover, if fraud or substantial monetary harm 10 to the State results from the nepotic element of the 11 transaction, the government officer or employee involved in 12 the element is guilty of a Class A misdemeanor. 13 (b) Other positions and contracts. Each State employee 14 is responsible for annually notifying his or her State 15 employer of contracts held by the employee or by the 16 employee's spouse and minor children and of other payroll 17 positions held by the employee. The State employee shall 18 notify his or her employer of any changes in this 19 notification at the time the changes occur. 20 Section 50-50. Identical bids. Every State agency that 21 obtains 2 or more identical bids under this Code shall inform 22 the Inspector General and the Attorney General in writing of 23 those facts within 30 days after the disposition of all bids 24 received in response for bids, whether by the awarding of the 25 contract or other action. The Attorney General shall 26 prescribe the form and manner of notification. 27 Section 50-55. Reporting of anticompetitive practices. 28 When for any reason collusion or other anticompetitive 29 practices are suspected among any bidders or offerors, a 30 notice of the relevant facts shall be transmitted to the 31 Inspector General and the Attorney General. HB3809 Engrossed -68- LRB9008460JMsb 1 Section 50-58. Confidentiality. The Inspector General 2 or any State purchasing officer, designee, or executive 3 officer who willfully uses or allows the use of 4 specifications, competitive bid documents, proprietary 5 competitive information, proposals, contracts, or selection 6 information to compromise the fairness or integrity of the 7 procurement, bidding, or contract process shall be subject to 8 discipline up to and including immediate dismissal, 9 regardless of the Personnel Code, and may in addition be 10 subject to criminal prosecution. 11 Section 50-60. Insider information. It is unlawful for 12 any current or former elected or appointed State official or 13 State employee to knowingly use confidential information 14 available only by virtue of that office or employment for 15 actual or anticipated personal gain or for the actual or 16 anticipated personal gain of another person. 17 Section 50-65. Supply inventory. Every State agency 18 shall inventory or stock no more than a 12-month need of 19 equipment, supplies, commodities, articles, and other items, 20 except as otherwise authorized by the State agency's 21 regulations. Every State agency shall periodically review 22 its inventory to ensure compliance with this Section. If, 23 upon review, an agency determines it has more than a 12-month 24 supply of any equipment, supplies, commodities, or other 25 items, the agency shall undertake transfers of the 26 oversupplied items or other action necessary to maintain 27 compliance with this Section. This Section shall not apply 28 to lifesaving medications, mechanical spare parts, and items 29 for which the supplier requires a minimum order stipulation. 30 Section 50-75. Suspension and debarment. Any contractor 31 may be suspended for violation of this Code or for failure to HB3809 Engrossed -69- LRB9008460JMsb 1 conform to specifications or terms of delivery. Suspension 2 shall be for cause and may be for a period of up to 5 years 3 at the discretion of the applicable chief procurement 4 officer. Contractors may be debarred in accordance with 5 rules promulgated by the Board or as otherwise provided by 6 law. 7 Section 50-80. Additional provisions. This Code is 8 subject to applicable provisions of the following Acts: 9 (1) Article 33E of the Criminal Code of 1961; 10 (2) the Illinois Human Rights Act; 11 (3) the Discriminatory Club Act; 12 (4) the Illinois Governmental Ethics Act; 13 (5) the State Prompt Payment Act; 14 (6) the Public Officer Prohibited Activities Act; 15 and 16 (7) the Drug Free Workplace Act. 17 Section 50-85. Other violations. 18 (a) The Inspector General or any State purchasing 19 officer or designee who willfully violates or allows the 20 violation of this Code shall be subject to discipline up to 21 and including immediate dismissal, regardless of the 22 Personnel Code. 23 (b) Except as otherwise provided in this Code, whoever 24 violates this Code or the rules promulgated under it is 25 guilty of a Class A misdemeanor. 26 ARTICLE 90 27 MISCELLANEOUS PROVISIONS 28 Section 90-5. References to repealed provisions. After 29 the effective date of this Act, all references to the 30 provisions of law repealed by this Act or by Public Act HB3809 Engrossed -70- LRB9008460JMsb 1 90-572 (the Illinois Procurement Code) shall be construed, 2 where necessary and appropriate, as references to the 3 Illinois Procurement Code of 1999. 4 Section 90-10. Severability. If any provision of this 5 Code or any application of it to any person or circumstance 6 is held invalid, that invalidity shall not affect other 7 provisions or applications of this Code that can be given 8 effect without the invalid provision or application, and to 9 this end the provisions of this Code are declared to be 10 severable. 11 Section 90-15. Voidable contracts. If any contract is 12 entered into or purchase or expenditure of funds is made in 13 violation of this Code or any other law, the contract may be 14 declared void by the purchasing officer, or may be 15 terminated, ratified and affirmed, provided it is determined 16 that ratification is in the best interests of the State. If 17 the contract is ratified and affirmed, it shall be without 18 prejudice to the State's rights to any appropriate damages. 19 ARTICLE 95 20 AMENDATORY AND REPEALING PROVISIONS 21 Section 95-5. The Governmental Joint Purchasing Act is 22 amended by changing Section 3 as follows: 23 (30 ILCS 525/3) (from Ch. 85, par. 1603) 24 Sec. 3. Any agreement of the governmental units which 25 desire to make joint purchases, one of the governmental units 26 shall conduct the letting of bids. Where the State of 27 Illinois is a party to the joint purchase agreement, the 28 Department of Central Management Services shall conduct the 29 letting of bids. Expenses of such bid-letting may be shared HB3809 Engrossed -71- LRB9008460JMsb 1 by the participating governmental units in proportion to the 2 amount of personal property, supplies or services each unit 3 purchases. 4 When the State of Illinois is a party to the joint 5 purchase agreement, the acceptance of bids shall be in 6 accordance with the Illinois Procurement Code of 1999 and 7 rules promulgated under that Code. When the State of 8 Illinois is not a party to the joint purchase agreement, the 9 acceptance of bids shall be governed by the agreement. 10 The personal property, supplies or services involved 11 shall be distributed or rendered directly to each 12 governmental unit taking part in the purchase. The person 13 selling the personal property, supplies or services may bill 14 each governmental unit separately for its proportionate share 15 of the cost of the personal property, supplies or services 16 purchased. 17 The credit or liability of each governmental unit shall 18 remain separate and distinct. Disputes between bidders and 19 governmental units shall be resolved between the immediate 20 parties. 21 (Source: P.A. 90-572, eff. date - See Sec. 99-5.) 22 Section 95-16. The Civil Administrative Code of Illinois 23 is amended by changing Section 67.02 as follows: 24 (20 ILCS 405/67.02) (from Ch. 127, par. 63b13.2) 25 Sec. 67.02. (a) To lease or purchase office and storage 26 space, buildings, land and other facilities for all State 27 agencies, authorities, boards, commissions, departments, 28 institutions, bodies politic and all other administrative 29 units or outgrowths of the executive branch of State 30 government except the Constitutional officers, the State 31 Board of Education and the State colleges and universities 32 and their governing bodies. However, before leasing or HB3809 Engrossed -72- LRB9008460JMsb 1 purchasing any office or storage space, buildings, land or 2 other facilities in any municipality the Department shall 3 survey the existing State-owned and State-leased property to 4 make a determination of need. Such leases shall be for a 5 term not to exceed 5 years, except that such leases may 6 contain a renewal clause subject to acceptance by the State 7 after that date or an option to purchase. Such purchases 8 shall be made through contracts which may provide for the 9 title to the property to transfer immediately to the State or 10 a trustee or nominee for the benefit of the State and which 11 shall: provide for the consideration to be paid in 12 installments to be made at stated intervals during a certain 13 term not to exceed 30 years from the date of the contract and 14 may provide for the payment of interest on the unpaid balance 15 at a rate that does not exceed a rate determined by adding 3 16 percentage points to the annual yield on United States 17 Treasury obligations of comparable maturity as most recently 18 published in the Wall Street Journal at the time such 19 contract is signed. Such leases and purchase contracts shall 20 be and shall recite that they are subject to termination and 21 cancellation in any year for which the General Assembly fails 22 to make an appropriation to pay the rent or purchase 23 installments payable under the terms of the lease or purchase 24 contract. Additionally such purchase contract shall specify 25 that title to the office and storage space, buildings, land 26 and other facilities being acquired under such a contract 27 shall revert to the Seller in the event of the failure of 28 the General Assembly to appropriate suitable funds. 29 However, this limitation on the term of such leases does not 30 apply to leases to and with the Illinois Building Authority, 31 as provided for in the Act enacted by the Seventy-second 32 General Assembly entitled the Building Authority Act, which 33 leases to and with said Authority may be entered into for a 34 term not to exceed 30 years and shall be and shall recite HB3809 Engrossed -73- LRB9008460JMsb 1 that they are subject to termination and cancellation in any 2 year for which the General Assembly fails to make an 3 appropriation to pay the rent payable under the terms of such 4 lease. These limitations do not apply where the lease or 5 purchase contract contains a provision limiting the liability 6 for the payment of the rentals or installments thereof solely 7 to funds received from the Federal government. 8 (b) To lease from an airport authority office, aircraft 9 hangar and service buildings constructed upon a public 10 airport under the Airport Authorities Act for the use and 11 occupancy of the State Department of Transportation, which 12 lease may be entered into for a term not to exceed 30 years. 13 (c) To establish training programs for teaching State 14 leasing procedures and practices to new employees of the 15 Department and to keep all employees of the Department 16 informed about current leasing practices and developments in 17 the real estate industry. 18 (d) To enter into an agreement with a municipality or 19 county to construct, remodel or convert a structure for the 20 purposes of its serving as a correctional institution or 21 facility pursuant to paragraph (c) of Section 3-2-2 of the 22 Unified Code of Corrections. 23 (e) To enter into an agreement with a private 24 individual, trust, partnership or corporation or a 25 municipality or other unit of local government, when 26 authorized to do so by the Department of Corrections, whereby 27 such individual, trust, partnership or corporation or 28 municipality or other unit of local government will 29 construct, remodel or convert a structure for the purposes of 30 its serving as a correctional institution or facility and 31 then lease such structure to the Department for the use of 32 the Department of Corrections. A lease entered into pursuant 33 to the authority granted in this subsection shall be for a 34 term not to exceed 30 years, but may grant to the State the HB3809 Engrossed -74- LRB9008460JMsb 1 option to purchase the structure outright. 2 Such leases shall be and shall recite that they are 3 subject to termination and cancellation in any year for which 4 the General Assembly fails to make an appropriation to pay 5 the rent payable under the terms of the lease. 6 (f) On and after September 17, 1983, the powers granted 7 to the Department under this Section shall be exercised 8 exclusively by the Department and no other State agency may 9 concurrently exercise any such power, unless specifically 10 authorized otherwise by a later enacted law. This subsection 11 is not intended to impair any contract existing as of 12 September 17, 1983. 13 However, no lease for more than 10,000 square feet of 14 space shall be executed unless the Director in consultation 15 with the Executive Director of the Capital Development Board 16 has certified that leasing is in the best interest of the 17 State, considering programmatic requirements, availability of 18 vacant State-owned space, the cost-benefits of purchasing or 19 constructing new space and other criteria as he shall 20 determine. The Director shall not permit multiple leases for 21 less than 10,000 square feet to be executed in order to evade 22 this provision. 23 (g) To develop and implement, in cooperation with the 24 Interagency Energy Conservation Committee, a system for 25 evaluating energy consumption in facilities leased by the 26 Department, and to develop energy consumption standards for 27 use in evaluating prospective lease sites. 28 (h) (1) After the effective date of this amendatory Act 29 of 1997, the Department shall not enter into an agreement 30 for the installment purchase or lease purchase of 31 buildings, land, or facilities unless: 32 (A) the using agency certifies to the 33 Department that the agency reasonably expects the 34 building, land, or facilities being considered for HB3809 Engrossed -75- LRB9008460JMsb 1 purchase will meet a permanent space need; 2 (B) the building or facilities will be 3 substantially occupied by State agencies after 4 purchase (or after acceptance in the case of a build 5 to suit); 6 (C) the building or facilities shall be in new 7 or like new condition and have a remaining economic 8 life exceeding the term of the contract; 9 (D) no structural or other major building 10 component or system shall have a remaining economic 11 life of less than 10 years; 12 (E) the building, land or facilities: 13 (i) is free of any identifiable 14 environmental hazard, or 15 (ii) is subject to a management plan, 16 provided by the seller and acceptable to the 17 State, to address the known environmental 18 hazard; 19 (F) the building, land, or facilities satisfy 20 applicable handicap accessibility and applicable 21 building codes; and 22 (G) the State's cost to lease purchase or 23 installment purchase the building, land, or 24 facilities is less than the cost to lease space of 25 comparable quality, size, and location over the 26 lease purchase or installment purchase term. 27 (2) The Department shall establish the methodology 28 for comparing lease costs to the costs of installment or 29 lease purchases. The cost comparison shall take into 30 account all relevant cost factors including, but not 31 limited to, debt service, operating and maintenance 32 costs, insurance and risk costs, real estate taxes, 33 reserves for replacement and repairs, security costs, and 34 utilities. Such methodology shall also provide: HB3809 Engrossed -76- LRB9008460JMsb 1 (A) that the comparison will be made using 2 level payment plans; and 3 (B) that a purchase price must not exceed the 4 fair market value of the buildings, land, or 5 facilities, and that such price must be 6 substantiated by an appraisal or by a competitive 7 selection process in accordance with the Illinois 8 Procurement Code of 1999. 9 (3) If the Department intends to enter into an 10 installment purchase or lease purchase agreement for 11 buildings, land, or facilities under circumstances that 12 do not satisfy the conditions specified by this Section, 13 it must issue a notice to the Secretary of the Senate and 14 the Clerk of the House. Such notice shall contain (i) 15 specific details of the State's proposed purchase, 16 including the amounts, purposes, and financing terms; 17 (ii) a specific description of how the proposed purchase 18 varies from the procedures set forth in this Section; and 19 (iii) a specific justification, signed by the Director, 20 of why it is in the State's best interests to proceed 21 with the purchase. The Department may not proceed with 22 such an installment purchase or lease purchase agreement 23 if, within 60 calendar days after delivery of the notice, 24 the General Assembly, by joint resolution, disapproves 25 the transaction. Delivery may take place on a day and at 26 an hour when the Senate and House are not in session so 27 long as the offices of Secretary and Clerk are open to 28 receive the notice. In determining the 60 day period 29 within which the General Assembly must act, the day on 30 which delivery is made to the Senate and House shall not 31 be counted. If delivery of the notice to the 2 houses 32 occurs on different days, the 60 day period shall begin 33 on the day following the later delivery. 34 (4) On or before February 15 of each year, the HB3809 Engrossed -77- LRB9008460JMsb 1 Department shall submit an annual report to the Director 2 of the Bureau of the Budget and the General Assembly 3 regarding installment purchases or lease purchases of 4 buildings, land, or facilities that were entered into 5 during the preceding calendar year. The report shall 6 include a summary statement of the aggregate amount of 7 the State's obligations under such purchases; specific 8 details pertaining to each purchase, the amounts, 9 purposes, and financing terms and payment schedule for 10 each purchase; and any other matter that the Department 11 deems advisable. 12 The requirement for reporting to the General 13 Assembly shall be satisfied by filing copies of the 14 report with the Auditor General, the Speaker, the 15 Minority Leader, and the Clerk of the House of 16 Representatives and the President, the Minority Leader, 17 and the Secretary of the Senate, the Chairs of the 18 Appropriations Committees, and the Legislative Research 19 Unit, as required by Section 3.1 of the General Assembly 20 Organization Act, and filing such additional copies with 21 the State Government Report Distribution Center for the 22 General Assembly as is required under paragraph (t) of 23 Section 7 of the State Library Act. 24 (5) Installment purchase and lease purchase 25 agreements for buildings, land, and facilities, whether 26 entered into under this Section or as specified in 27 paragraph (3) of this subsection, are subject to the 28 Illinois Procurement Code of 1999. 29 (Source: P.A. 90-520, eff. 6-1-98.) 30 Section 95-17. The Personnel Code is amended by changing 31 Section 25 as follows: 32 (20 ILCS 415/25) HB3809 Engrossed -78- LRB9008460JMsb 1 Sec. 25. Illinois Procurement Code of 1999. This Code 2 is subject to thedisciplinary and penaltyprovisions of the 3 Illinois Procurement Code of 1999. 4 (Source: P.A. 90-572, eff. date - See Sec. 99-5.) 5 (25 ILCS 10/10 rep.) 6 Section 95-20. The General Assembly Operations Act is 7 amended by repealing Section 10. 8 (30 ILCS 500/Act rep.) 9 Section 95-25. The Illinois Procurement Code is 10 repealed. 11 Section 95-45. The Toll Highway Act is amended by 12 changing Sections 3, 8, 16, and 16.1 as follows: 13 (605 ILCS 10/3) (from Ch. 121, par. 100-3) 14 Sec. 3. There is hereby created an Authority to be known 15 as The Illinois State Toll Highway Authority, which is hereby 16 constituted an instrumentality and an administrative agency 17 of the State of Illinois. The said Authority shall consist of 18 11 directors; the Governor and the Secretary of the 19 Department of Transportation, ex officio, and 9 directors 20 appointed by the Governor with the advice and consent of the 21 Senate, from the State at large, which said directors and 22 their successors are hereby authorized to carry out the 23 provisions of this Act, and to exercise the powers herein 24 conferred. Of the 9 directors appointed by the Governor, no 25 more than 5 shall be members of the same political party. 26 Vacancies shall be filled for the unexpired term in the same 27 manner as original appointments. All appointments shall be in 28 writing and filed with the Secretary of State as a public 29 record. It is the intention of this section that the 30 Governor's appointments shall be made with due consideration HB3809 Engrossed -79- LRB9008460JMsb 1 to the location of proposed toll highway routes so that 2 maximum geographic representation from the areas served by 3 said toll highway routes may be accomplished insofar as 4 practicable. The said Authority shall have the power to 5 contract and be contracted with, in accordance with the 6 Illinois Procurement Code of 1999 in the case of procurement 7 contracts, to acquire, hold and convey personal and real 8 property or any interest therein including rights of way, 9 franchises and easements; to have and use a common seal, and 10 to alter the same at will; to make and establish resolutions, 11 by-laws, rules, rates and regulations, and to alter or repeal 12 the same as the Authority shall deem necessary and expedient 13 for the construction, operation, relocation, regulation and 14 maintenance of a system of toll highways within and through 15 the State of Illinois. 16 Appointment of the additional directors provided for by 17 this amendatory Act of 1980 shall be made within 30 days 18 after the effective date of this amendatory Act of 1980. 19 (Source: P.A. 86-1164.) 20 (605 ILCS 10/8) (from Ch. 121, par. 100-8) 21 Sec. 8. The Authority shall have the power: 22 (a) To acquire, own, use, hire, lease, operate and 23 dispose of personal property, real property, any interest 24 therein, including rights-of-way, franchises and easements. 25 (b) To enter into all contracts and agreements necessary 26 or incidental to the performance of its powers under this 27 Act. All employment contracts let under this Act shall be in 28 conformity with the applicable provisions of the Prevailing 29 Wage Act"An Act regulating wages of laborers, mechanics and30other workers employed under contracts for public works,"31approved June 26, 1941, as amended. 32 (c) To employ and discharge, without regard to the 33 requirements of any civil service or personnel act, such HB3809 Engrossed -80- LRB9008460JMsb 1 administrative, engineering, traffic, architectural, 2 construction, and financial experts, and inspectors, and such 3 other employees, as are necessary in the Authority's judgment 4 to carry out the purposes of this Act; and to establish and 5 administer standards of classification of all of such persons 6 with respect to their compensation, duties, performance, and 7 tenure; and to enter into contracts of employment with such 8 persons for such periods and on such terms as the Authority 9 deems desirable. 10 (d) To appoint by and with the consent of the Attorney 11 General, assistant attorneys for such Authority, which said 12 assistant attorneys shall be under the control, direction and 13 supervision of the Attorney General and shall serve at his 14 pleasure. 15 (e) To retain special counsel, subject to the approval 16 of the Attorney General, as needed from time to time, and fix 17 their compensation, provided however, such special counsel 18 shall be subject to the control, direction and supervision of 19 the Attorney General and shall serve at his pleasure. 20 (f) To acquire, construct, relocate, operate, regulate 21 and maintain a system of toll highways through and within the 22 State of Illinois. However, the Authority does not have the 23 power to acquire, operate, regulate or maintain any system of 24 toll highways or toll bridges or portions of them (including 25 but not limited to any system organized pursuant to Division 26 108 of Article 11 of the Illinois Municipal Code) in the 27 event either of the following conditions exists at the time 28 the proposed acquisition, operation, regulation or 29 maintenance of such system is to become effective: 30 (1) the principal or interest on bonds or other 31 instruments evidencing indebtedness of the system are in 32 default; or 33 (2) the principal or interest on bonds or other 34 instruments evidencing indebtedness of the system have been HB3809 Engrossed -81- LRB9008460JMsb 1 in default at any time during the 5 year period prior to the 2 proposed acquisition. 3 To facilitate such construction, operation and 4 maintenance and subject to the approval of the Division of 5 Highways of the Department of Transportation, the Authority 6 shall have the full use and advantage of the engineering 7 staff and facilities of the Department. 8 The powers of the Authority are subject to the Illinois 9 Procurement Code of 1999. 10 (Source: P.A. 83-1258.) 11 (605 ILCS 10/16) (from Ch. 121, par. 100-16) 12 Sec. 16. All contracts let for the construction of any 13 work authorized to be done under the provisions of the Act 14 shall be procured in accordance with the Illinois Procurement 15 Code of 1999., where the amount thereof is in excess of the16sum of $10,000, shall be let to the lowest responsible17bidder, or bidders, on open, competitive bidding after public18advertisement made at least 15 days prior to the opening of19bids, in a newspaper of general circulation published in each20of the seven largest cities of the State, as determined by21the last preceding Federal census, in such manner and at such22intervals, as may be prescribed by the Authority except for23contracts for the completion of a terminated or defaulted24contract. The successful bidders for such work shall enter25into contracts furnished and prescribed by the Authority.26SuchContracts shall contain a provision that asuch27 successful bidder shall indemnify and save harmless the State 28 of Illinois for any accidental injuries or damages arising 29 out of his or her negligence in the performance of such 30 contract, and shall, and in addition, execute and give bonds, 31 payable to the Authority, with a corporate surety authorized 32 to do business under the laws of the State of Illinois, equal 33 to at least 50% of the contract price, one conditioned upon HB3809 Engrossed -82- LRB9008460JMsb 1 faithful performance of the contract and the other for the 2 payment of all labor furnished and materials supplied in the 3 prosecution of the contracted work. 4 (Source: P.A. 86-1164.) 5 (605 ILCS 10/16.1) (from Ch. 121, par. 100-16.1) 6 Sec. 16.1.(A)All contracts for services or supplies 7 required from time to time by the Authority in the 8 maintenance and operation of any toll highway or part thereof 9 under the provisions of this Act or all direct contracts for 10 supplies to be used in the construction of any toll highway 11 or part thereof to be awarded under this Section, rather than 12 as a part of a contract pursuant to Section 16 of this Act, 13 shall be procured in accordance with the Illinois Procurement 14 Code of 1999., when the amount of any such supplies or15services is in excess of the sum of $7,500 shall be let to16the lowest responsible bidder or bidders, on open,17competitive bidding after public advertisement made at least185 days prior to the opening of bids, in a newspaper of19general circulation in any city of over 500,000 population,20or in any county through which the tollway passes, in such21manner and on one or more occasions as may be prescribed by22the Authority, except that bidding shall not be required in23the following cases:241. Where the goods or services to be procured are25economically procurable from only one source, such as26contracts for telephone service, electric energy and27other public utility services, housekeeping services,28books, pamphlets and periodicals and specially designed29business equipment and software.302. Where the services required are for31professional, technical or artistic skills.323. Where the services required are for advertising,33promotional and public relations services.HB3809 Engrossed -83- LRB9008460JMsb 14. In emergencies, provided that an affidavit of2the person or persons authorizing the expenditure shall3be filed with the Authority and the Auditor General4within 10 days after such authorization setting forth the5conditions and circumstances requiring the emergency6purchase, the amount expended and the name of the vendor7or contractor involved; if only an estimate is available,8however, within the 10 days allowed for filing the9affidavit, the actual cost shall be reported immediately10after it is determined.115. In case of expenditures for personal services.126. Contracts for equipment and spare parts in13support thereof for the maintenance and operation of any14toll highway, or any part thereof, whenever, the15Authority shall, by resolution, declare and find that a16particular make and type of equipment is required for17efficient maintenance and operation and proper servicing,18for uniformity in and integration with the spare parts19program and inventory control, or for other reasons20peculiar to the problems of the toll highway or its21previously acquired equipment; however, competition and22competitive bids shall be obtained by the Authority with23respect to such specified equipment or spare parts,24insofar as possible, and when effective, pursuant to25public advertisement as hereinbefore provided.267. Contracts for insurance, fidelity and surety27bonds.288. Contracts or agreements for the completion of a29terminated or defaulted contract or agreement.30(B) The solicitation for bids shall be in conformance31with accepted business practices and the method of32solicitation shall be set out in detail in the rules and33regulations of the Authority.34(C) Proposals received pursuant to public advertisementHB3809 Engrossed -84- LRB9008460JMsb 1shall be publicly opened at the day and hour and at the place2specified in the solicitation for such bids.3(D) Successful bidders for such services and supplies4shall enter into contracts furnished and prescribed by the5Authority.6(E) All purchases, contracts or other obligations or7expenditures of funds by the Authority shall be in accordance8with rules and regulations governing the Authority's9procurement practice and procedures and10 The Authority shallpromulgate andpublish its 11 procurementsuchpractices and procedures in sufficient 12 number for distribution to persons interested in bidding on 13 purchases or contracts to be let by the Authority. Such rules 14 and regulations shall be kept on file with the Secretary of 15 the Authority at all times and shall be available for 16 inspection by members of the public at all reasonable times 17 and hours. 18 Such rules and regulations shall be filed and become 19 effective in connection with the Illinois Administrative 20 Procedure Act. 21(F) Any contract entered into for purchase or22expenditure of funds of the Authority made in violation of23this Act or the rules and regulations in pursuance thereof is24void and of no effect.25(G) Warrant.All sellers to the Authority shall attach a 26 statement to the delivery invoice attesting that the 27 standards set forth in the contracts have been met. The 28 statement shall be substantially in the following form: 29 "The Seller,.... hereby certifies that the goods, 30 merchandise and wares shipped in accordance with the attached 31 delivery invoice have met all the required standards set 32 forth in the purchasing contract. 33 ....(Seller)." 34 Failure to attach the statement(H) Whoever violates theHB3809 Engrossed -85- LRB9008460JMsb 1provisions of this Section, or the rules and regulations2adopted in pursuance thereof,isguilty ofa Class A 3 misdemeanor. 4 (Source: P.A. 86-1164.) 5 ARTICLE 98 6 HUMAN SERVICES DELIVERY ACT 7 Section 98-1. Short title. This Article may be cited as 8 the Human Services Delivery Act. 9 Section 98-5. Legislative findings and declaration of 10 policy. 11 (a) The purpose of this Article is to set forth a 12 program to better provide human services to needy citizens of 13 the State of Illinois. The State of Illinois contracts with 14 or provides grants to private entities for the purpose of 15 providing residential and day treatment services to the 16 mentally ill and developmentally disabled. The State of 17 Illinois enters into these contracts and provides these 18 grants in order to best provide the human services necessary 19 for the care and development of its neediest citizens. 20 (b) The legislature finds that the needs of its mentally 21 ill and developmentally disabled citizens cannot be met if 22 the services provided to them through contracts or grants 23 between the State of Illinois and private providers are 24 subject to disruption. The legislature further finds that 25 the services are most likely to be disrupted if the private 26 providers of the services have illegally interfered with the 27 rights of the private providers' employees under federal law. 28 Private providers or employers found guilty of violating the 29 National Labor Relations Act are most likely to be subject to 30 strikes and other work stoppages by their employees, which 31 strikes or work stoppages have a detrimental effect on the HB3809 Engrossed -86- LRB9008460JMsb 1 services being provided to Illinois citizens who are mentally 2 ill or developmentally disabled. 3 (c) It is hereby declared to be the policy of the State 4 of Illinois that in order to prevent the disruption of 5 residential and day treatment services to the mentally ill 6 and developmentally disabled citizens, the State of Illinois 7 shall not contract with or provide grants to private 8 providers to provide these services if the private provider 9 has been found to have violated the National Labor Relations 10 Act by committing 3 or more unfair labor practices in any 24 11 month period in the 3 years preceding the effective date or 12 renewal date of the contract, agreement, or grant. 13 Section 98-10. Definitions. As used in this Article, 14 unless the context otherwise requires: 15 "Contractor or grantee" means an entity other than the 16 State of Illinois, a department of the State of Illinois, or 17 political subdivision of the State of Illinois which has a 18 contractual or other relationship with the State of Illinois 19 or a department of the State of Illinois to provide 20 residential or day treatment services to the mentally ill or 21 developmentally disabled, which contract is funded in whole 22 or in part by the State of Illinois or through the Medicaid 23 Program of the State of Illinois. 24 "National Labor Relations Act" means the federal statute, 25 found at 29 U.S.C. Section 101, et seq., as amended. 26 "Violation of the National Labor Relations Act" means a 27 decision by the National Labor Relations Board that the 28 National Labor Relations Act has been violated. 29 Section 98-20. Certification. No grantee or contractor 30 shall receive a grant or be considered for the purposes of 31 being awarded a contract for providing residential or day 32 treatment services for the mentally ill or developmentally HB3809 Engrossed -87- LRB9008460JMsb 1 disabled, unless that grantee or contractor has certified to 2 the State of Illinois or to the granting or contracting 3 agency that it has not been found to have committed 3 or more 4 unfair labor practices during a 24 month period in the 3 5 years preceding the effective date of the contract or grant. 6 Section 98-25. Suspension or termination of the contract 7 or grant. Each contract or grant awarded by the State of 8 Illinois shall be subject to suspension of payments or 9 termination or both if it is determined that: 10 (a) The contractor or grantee has made a false 11 certification under Section 98-20 of this Article; or 12 (b) The contractor or grantee, after the effective date 13 of the contract or grant, is found to have committed 3 or 14 more unfair labor practices during a 24 month period under 15 the National Labor Relations Act. 16 Section 98-30. Debarment. Any contractor or grantee who 17 files a false certification under Section 98-20 or whose 18 contract or grant is suspended or terminated under Section 19 98-25 shall be debarred from seeking or obtaining a new 20 contract or grant covered under this Article for a period of 21 one year from the date that the contract or grant was 22 terminated or suspended. 23 Section 98-35. Suspension, termination or debarment 24 proceedings; remediation. 25 (a) In any determination proceeding for suspension of 26 payment, termination, or debarment pursuant to this Article, 27 the only question shall be whether the contractor or grantee 28 has violated the National Labor Relations Act as defined by 29 this Article. 30 (b) All proceedings for suspension of payment, 31 termination, or debarment pursuant to this Article shall be HB3809 Engrossed -88- LRB9008460JMsb 1 conducted in accordance with the Illinois Administrative 2 Procedure Act. 3 (c) Upon notice to the Department of Human Services from 4 a labor organization that a complaint has been issued by the 5 National Labor Relations Board against a contractor or 6 grantee, the Department shall at the request of the labor 7 organization convene a remediation session between the labor 8 organization and the contractor or grantee. The Department 9 shall establish rules concerning the conduct of the sessions. 10 (d) As minor violations of a technical nature are not 11 likely to result in interference with employees' rights 12 sufficient to cause significant disruption in the provision 13 of essential services, nothing herein shall preclude the 14 Department from making a finding that the violations were of 15 a technical nature with only de minimus impact on the rights 16 guaranteed under the National Labor Relations Act. 17 ARTICLE 99 18 EFFECTIVE DATE 19 Section 99-5. Effective date and transition. This 20 Article 99 and Article 98 take effect upon becoming law. 21 Article 95 takes effect January 1, 1999. Articles 1 through 22 90 take effect upon becoming law solely for the purposes of 23 appointment of the Procurement Policy Board and allowing the 24 Procurement Policy Board and State agencies designated under 25 Article 5 to promulgate rules to implement this Code. 26 Articles 1 through 90, for all other purposes, take effect 27 January 1, 1999.