Bill Text: IL HB0089 | 2011-2012 | 97th General Assembly | Amended

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Bill Title: Creates the Public University Procurement Act. Creates the State University Procurement System, governed by a board consisting of one member appointed by each public university's board of trustees. Requires the System to (1) develop a proposed Procurement Code for Public Universities; (2) implement the Code, in conjunction with each university, after approval by the Joint Committee on Administrative Rules; (3) hire and oversee a full-time Chief Procurement Officer for Public Universities; (4) develop university procurement policies on an ongoing basis; (5) evaluate a university's procurement performance on an ongoing basis; (6) develop an electronic procurement bulletin for the public advertising of all university purchasing opportunities above bid limits; (7) provide sole source hearings for those items in which vendor questions or issues have been raised, with final determinations made by the Chief Procurement Officer; (8) under the Code, require certification to conduct business in this State at the time of an award; and (9) develop diversity goals and a certification process that recognizes higher education's commitment to diversity and to annually publish the results. Provides for an Auditor General audit and report. Repeals the Act on July 1, 2016. Amends the Illinois Procurement Code to provide that from the effective date of the amendatory Act until July 1, 2016, the Code does not apply to public universities in this State. Amends various Acts relating to the governance of public universities in Illinois to provide that no university shall be obligated to comply with (i) any mandate in the Act enacted after the effective date of the amendatory Act or (2) any regulatory mandate promulgated by the Board of Higher Education and adopted by rule. Effective immediately.

Spectrum: Partisan Bill (Republican 11-0)

Status: (Failed) 2013-01-08 - Session Sine Die [HB0089 Detail]

Download: Illinois-2011-HB0089-Amended.html

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Rep. Chapin Rose

Filed: 3/9/2011

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AMENDMENT TO HOUSE BILL 89
AMENDMENT NO. ______. Amend House Bill 89 by replacing the
title with "AN ACT concerning procurement."; and
by replacing everything after the enacting clause with the
following:
"Section 5. The Illinois Procurement Code is amended by
changing Sections 1-15.107, 1-15.108, 20-25, 20-30, 20-43,
20-85, 20-90, 20-95, 20-120, 20-160, 25-15, and 50-39 and by
adding Section 20-100 as follows:
(30 ILCS 500/1-15.107)
Sec. 1-15.107. Subcontract. "Subcontract" means a contract
between a person and a person who has or is seeking a contract
subject to this Code, pursuant to which the subcontractor
provides to the contractor or another subcontractor some or all
of the goods, services, property, remuneration, or other forms

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of consideration that are the subject of the primary contract
and includes, among other things, subleases from a lessee of a
State agency.
(Source: P.A. 96-795, eff. 7-1-10 (see Section 5 of P.A. 96-793
for the effective date of P.A. 96-795).)
(30 ILCS 500/1-15.108)
Sec. 1-15.108. Subcontractor. "Subcontractor" means a
person or entity that enters into a contractual agreement with
a total value in excess of the small purchase amount set forth
in this Code of $25,000 or more with a person or entity who has
or is seeking a contract subject to this Code pursuant to which
the person or entity provides some or all of the goods,
services, property, remuneration, or other forms of
consideration that are the subject of the primary State
contract, including subleases from a lessee of a State
contract.
(Source: P.A. 96-920, eff. 7-1-10.)
(30 ILCS 500/20-25)
Sec. 20-25. Sole source procurements.
(a) In accordance with standards set by rule, contracts may
be awarded without use of the specified method of source
selection when there is only one economically feasible source
for the item. A State contract may not be awarded as a sole
source procurement unless approved by the chief procurement

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officer. If any person files an objection to the notice of a
sole source procurement during the 14-day notice period
required by subsection (c), the chief procurement officer shall
provide following a public hearing at which the chief
procurement officer, State purchasing officer, or State agency
presents and purchasing agency present written justification
for the procurement method. The Procurement Policy Board and
the public may present testimony.
(b) This Section may not be used as a basis for amending a
contract for professional or artistic services if the amendment
would result in an increase in the amount paid under the
contract of more than 5% of the initial award, or would extend
the contract term beyond the time reasonably needed for a
competitive procurement, not to exceed 2 months.
(c) Notice of intent to enter into a sole source contract
shall be provided to the Procurement Policy Board and published
in the online electronic Bulletin at least 14 days before the
public hearing required in subsection (a). The notice shall
include the sole source procurement justification form
prescribed by the Board, a description of the item to be
procured, the intended sole source contractor, and the date,
time, and location of the public hearing. A copy of the notice
and all documents provided at the hearing shall be included in
the subsequent Procurement Bulletin.
(d) By August 1 each year, each chief procurement officer
shall file a report with the General Assembly identifying each

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contract the officer sought under the sole source procurement
method and providing the justification given for seeking sole
source as the procurement method for each of those contracts.
(Source: P.A. 96-795, eff. 7-1-10 (see Section 5 of P.A. 96-793
for the effective date of changes made by P.A. 96-795); 96-920,
eff. 7-1-10.)
(30 ILCS 500/20-30)
Sec. 20-30. Emergency purchases.
(a) Conditions for use. In accordance with standards set by
rule, a purchasing agency may make emergency procurements
without competitive sealed bidding or prior notice when there
exists a threat to public health or public safety, or when
immediate expenditure is necessary for repairs to State
property in order to protect against further loss of or damage
to State property, to prevent or minimize serious disruption in
critical State services that affect health, safety, or
collection of substantial State revenues, or to ensure the
integrity of State records; provided, however, that the term of
the emergency purchase shall be limited to the time reasonably
needed for a competitive procurement, not to exceed 90 days. A
contract may be extended beyond 90 days if the chief
procurement officer determines additional time is necessary
and that the contract scope and duration are limited to the
emergency. If any person files an objection to the notice of
extension required by subsection (b), the chief procurement

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officer shall provide a public hearing at which the chief
procurement officer, State purchasing officer, or State agency
presents written justification for the extension. The
Procurement Policy Board and members Prior to execution of the
extension, the chief procurement officer must hold a public
hearing and provide written justification for all emergency
contracts. Members of the public may present testimony.
Emergency procurements shall be made with as much competition
as is practicable under the circumstances. A written
description of the basis for the emergency and reasons for the
selection of the particular contractor shall be included in the
contract file.
(b) Notice. Notice of all emergency procurements shall be
provided to the Procurement Policy Board and published in the
online electronic Bulletin no later than 3 business days after
the contract is awarded. Notice of intent to extend an
emergency contract shall be provided to the Procurement Policy
Board and published in the online electronic Bulletin at least
14 days before the public hearing. Notice shall include at
least a description of the need for the emergency purchase, the
contractor, and if applicable, the date, time, and location of
the public hearing. A copy of this notice and all documents
provided at the hearing shall be included in the subsequent
Procurement Bulletin. Before the next appropriate volume of the
Illinois Procurement Bulletin, the purchasing agency shall
publish in the Illinois Procurement Bulletin a copy of each

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written description and reasons and the total cost of each
emergency procurement made during the previous month. When only
an estimate of the total cost is known at the time of
publication, the estimate shall be identified as an estimate
and published. When the actual total cost is determined, it
shall also be published in like manner before the 10th day of
the next succeeding month.
(c) Affidavits. A chief procurement officer making a
procurement under this Section shall file affidavits with the
Procurement Policy Board and the Auditor General within 10 days
after the procurement setting forth the amount expended, the
name of the contractor involved, and the conditions and
circumstances requiring the emergency procurement. When only
an estimate of the cost is available within 10 days after the
procurement, the actual cost shall be reported immediately
after it is determined. At the end of each fiscal quarter, the
Auditor General shall file with the Legislative Audit
Commission and the Governor a complete listing of all emergency
procurements reported during that fiscal quarter. The
Legislative Audit Commission shall review the emergency
procurements so reported and, in its annual reports, advise the
General Assembly of procurements that appear to constitute an
abuse of this Section.
(d) Quick purchases. The chief procurement officer may
promulgate rules extending the circumstances by which a
purchasing agency may make purchases under this Section,

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including but not limited to the procurement of items available
at a discount for a limited period of time.
(e) The changes to this Section made by this amendatory Act
of the 96th General Assembly apply to procurements executed on
or after its effective date.
(Source: P.A. 96-795, eff. 7-1-10 (see Section 5 of P.A. 96-793
for the effective date of changes made by P.A. 96-795).)
(30 ILCS 500/20-43)
Sec. 20-43. Bidder or offeror authorized to do business in
Illinois. In addition to meeting any other requirement of law
or rule, a person (other than an individual acting as a sole
proprietor) may qualify as a bidder or offeror under this Code
only if the person is a legal entity authorized to do business
in Illinois prior to submitting the bid, offer, or proposal and
is authorized to do business in Illinois prior to execution of
the contract.
(Source: P.A. 96-795, eff. 7-1-10 (see Section 5 of P.A. 96-793
for the effective date of P.A. 96-795).)
(30 ILCS 500/20-85)
Sec. 20-85. Federal requirements. A State agency applying
for or receiving federal-aid funds, grants, or loans shall have
authority to adopt its procedures, rules, project statements,
drawings, maps, surveys, plans, specifications, contract
terms, estimates, bid forms, bond forms, and other documents or

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practices to comply with the regulations, policies, and
procedures of the designated authority, administration, or
department of the United States, in order to receive or remain
eligible for such federal-aid funds, grants, or loans.
(Source: P.A. 90-572, eff. date - See Sec. 99-5.)
(30 ILCS 500/20-90)
Sec. 20-90. Foreign country procurements. Procurements to
meet the needs of State offices located in foreign countries or
program activities that operate in foreign countries shall
comply with the provisions of this Code to the extent
practical. Procurements that must be made from foreign sole
source vendors who have no offices in the United States shall
comply with the provisions of this Code to the extent
practical.
(Source: P.A. 90-572, eff. date - See Sec. 99-5.)
(30 ILCS 500/20-95)
Sec. 20-95. Donations. Nothing in this Code or in the rules
promulgated under this Code shall prevent any State agency from
complying with the terms and conditions of any grant, gift, or
bequest that calls for the procurement of a particular good or
service or the use of a particular contractor, provided that
the grant, gift, or bequest provides majority funding for the
contract. The provisions of this Code shall apply to the extent
practical.

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(Source: P.A. 90-572, eff. date - See Sec. 99-5.)
(30 ILCS 500/20-100 new)
Sec. 20-100. Expedited procurements. The chief procurement
officer may establish by rule expedited processes to procure
specialized supplies and services needed to meet research needs
of State agencies, to ensure compliance with grant and grant
application requirements, to contract for conference and
commencement speakers, for athletic events and entertainment,
and for membership dues and fees. Notice, vendor qualification,
solicitation and contract terms, and other requirements of this
Code shall apply to the extent practical.
(30 ILCS 500/20-120)
Sec. 20-120. Subcontractors.
(a) Any contract granted under this Code shall state
whether the services of a subcontractor will or may be used.
The contract shall include the names and addresses of all known
subcontractors with subcontracts with an annual value of more
than the small purchase amount authorized by this Code $25,000
and the expected amount of money each will receive under the
contract. For procurements subject to the authority of the
chief procurement officer appointed pursuant to subsection
(a)(2) of Section 10-20, the contract shall include only the
names and addresses of all known subcontractors of the primary
contractor with subcontracts with an annual value of more than

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$25,000. The contractor shall provide the chief procurement
officer or State purchasing officer a copy of any subcontract
with an annual value of more than $25,000 so identified within
20 days after the execution of the State contract or after
execution of the subcontract, whichever is later. A
subcontractor, or contractor on behalf of a subcontractor, may
identify information that is deemed proprietary or
confidential. If the chief procurement officer determines the
information is not relevant to the primary contract, the chief
procurement officer may excuse the inclusion of the
information. If the chief procurement officer determines the
information is proprietary or could harm the business interest
of the subcontractor, the chief procurement officer may, in his
or her discretion, redact the information. Redacted
information shall not become part of the public record.
(b) If at any time during the term of a contract, a
contractor adds or changes any subcontractors with an annual
value that exceeds the small purchase amounts authorized by
this Code, he or she shall promptly notify, in writing, the
chief procurement officer, State purchasing officer, or their
designee of the names and addresses and the expected amount of
money each new or replaced subcontractor will receive. The
contractor shall provide to the responsible chief procurement
officer a copy of the subcontract within 20 days after the
execution of the subcontract.
(c) In addition to any other requirements of this Code, a

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subcontract subject to this Section must include all of the
subcontractor's certifications required by Article 50 of the
Code.
(d) This Section applies to procurements solicited on or
after the effective date of this amendatory Act of the 96th
General Assembly.
(Source: P.A. 96-795, eff. 7-1-10 (see Section 5 of P.A. 96-793
for the effective date of P.A. 96-795); 96-920, eff. 7-1-10.)
(30 ILCS 500/20-160)
Sec. 20-160. Business entities; certification;
registration with the State Board of Elections.
(a) For purposes of this Section, the terms "business
entity", "contract", "State contract", "contract with a State
agency", "State agency", "affiliated entity", and "affiliated
person" have the meanings ascribed to those terms in Section
50-37.
(b) Every bid submitted to and every contract executed by
the State on or after January 1, 2009 (the effective date of
Public Act 95-971) shall contain (1) a certification by the
bidder or contractor that either (i) the bidder or contractor
is not required to register as a business entity with the State
Board of Elections pursuant to this Section or (ii) the bidder
or contractor has registered as a business entity with the
State Board of Elections and acknowledges a continuing duty to
update the registration and (2) a statement that the contract

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is voidable under Section 50-60 for the bidder's or
contractor's failure to comply with this Section.
(c) Within 30 days after the effective date of this
amendatory Act of the 95th General Assembly, each business
entity (i) whose aggregate bids and proposals on State
contracts annually total more than $50,000, (ii) whose
aggregate bids and proposals on State contracts combined with
the business entity's aggregate annual total value of State
contracts exceed $50,000, or (iii) whose contracts with State
agencies, in the aggregate, annually total more than $50,000
shall register with the State Board of Elections in accordance
with Section 9-35 of the Election Code. A business entity
required to register under this subsection shall submit a copy
of the certificate of registration to the applicable chief
procurement officer within 90 days after the effective date of
this amendatory Act of the 95th General Assembly. A business
entity required to register under this subsection due to item
(i) or (ii) has a continuing duty to ensure that the
registration is accurate during the period beginning on the
date of registration and ending on the day after the date the
contract is awarded; any change in information must be reported
to the State Board of Elections 5 business days following such
change or no later than a day before the contract is awarded,
whichever date is earlier. A business entity required to
register under this subsection due to item (iii) has a
continuing duty to ensure that the registration is accurate in

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accordance with subsection report any changes in information to
the State Board of Elections on the final day of January,
April, July, and October of each year, or the first business
day after such dates, if such dates do not fall on a business
day (e).
(d) Any business entity, not required under subsection (c)
to register within 30 days after the effective date of this
amendatory Act of the 95th General Assembly, whose aggregate
bids and proposals on State contracts annually total more than
$50,000, or whose aggregate bids and proposals on State
contracts combined with the business entity's aggregate annual
total value of State contracts exceed $50,000, shall register
with the State Board of Elections in accordance with Section
9-35 of the Election Code prior to submitting to a State agency
the bid or proposal whose value causes the business entity to
fall within the monetary description of this subsection. A
business entity required to register under this subsection has
a continuing duty to ensure that the registration is accurate
during the period beginning on the date of registration and
ending on the day after the date the contract is awarded. Any
change in information must be reported to the State Board of
Elections within 5 business days following such change or no
later than a day before the contract is awarded, whichever date
is earlier.
(e) A business entity whose contracts with State agencies,
in the aggregate, annually total more than $50,000 must

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maintain its registration under this Section and has a
continuing duty to ensure that the registration is accurate for
the duration of the term of office of the incumbent
officeholder awarding the contracts or for a period of 2 years
following the expiration or termination of the contracts,
whichever is longer. A business entity, required to register
under this subsection, has a continuing duty to report any
changes on a quarterly basis to the State Board of Elections
within 10 business days following the last day of January,
April, July, and October of each year. Any update pursuant to
this paragraph that is received beyond that date is presumed
late and the civil penalty authorized by subsection (e) of
Section 9-35 of the Election Code (10 ILCS 5/9-35) may be
assessed.
Also, if on the final day of January, April, July, and
October of each year, or the first business day after such
dates, if such dates do not fall on a business day. If a
business entity required to register under this subsection has
a pending bid or proposal, any change in information shall be
reported to the State Board of Elections within 5 business days
following such change or no later than a day before the
contract is awarded, whichever date is earlier.
(f) A business entity's continuing duty under this Section
to ensure the accuracy of its registration includes the
requirement that the business entity notify the State Board of
Elections of any change in information, including but not

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limited to changes of affiliated entities or affiliated
persons.
(g) A copy of a certificate of registration must accompany
any bid or proposal for a contract with a State agency by a
business entity required to register under this Section. A
chief procurement officer shall not accept a bid or proposal
unless the vendor has made and complied with the certification
required in subsection (b) the certificate is submitted to the
agency with the bid or proposal.
(h) A registration, and any changes to a registration, must
include the business entity's verification of accuracy and
subjects the business entity to the penalties of the laws of
this State for perjury.
In addition to any penalty under Section 9-35 of the
Election Code, intentional, willful, or material failure to
disclose information required for registration shall render
the contract, bid, proposal, or other procurement relationship
voidable by the chief procurement officer if he or she deems it
to be in the best interest of the State of Illinois.
(i) This Section applies to all methods regardless of the
method of source selection used in awarding the contract,
except that the chief procurement officer may waive compliance
for sole sources and emergency contracts if necessary to secure
the contract.
(Source: P.A. 95-971, eff. 1-1-09; 96-795, eff. 7-1-10 (see
Section 5 of P.A. 96-793 for the effective date of changes made

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by P.A. 96-795); 96-848, eff. 1-1-10; revised 9-23-10.)
(30 ILCS 500/25-15)
Sec. 25-15. Method of source selection.
(a) Competitive sealed bidding. Except as provided in
subsection (b) and Sections 20-20, 20-25, and 20-30, all State
contracts for supplies and services shall be awarded by
competitive sealed bidding in accordance with Section 20-10.
(b) Other methods. The chief procurement officer may
establish by rule (i) categories of purchases, including
non-governmental joint purchases, that may be made without
competitive sealed bidding and (ii) the most competitive
alternate method of source selection that shall be used for
each category of purchase. When determined necessary by the
State agency and approved by the chief procurement officer,
vendor qualification and contract terms otherwise required may
be modified to ensure that the needs of the State agency can be
met. The determination and approval must be published in the
Illinois Procurement Bulletin.
(Source: P.A. 90-572, eff. date - See Sec. 99-5.)
(30 ILCS 500/50-39)
Sec. 50-39. Procurement communications reporting
requirement.
(a) Any written or oral communication received by a State
employee that imparts or requests material information or makes

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a material argument regarding potential action concerning a
procurement matter, including, but not limited to, an
application, a contract, or a project, shall be reported to the
Procurement Policy Board. These communications do not include
the following: (i) statements by a person publicly made in a
public forum; (ii) statements regarding matters of procedure
and practice, such as format, the number of copies required,
the manner of filing, and the status of a matter; and (iii)
statements made by a State employee of the agency to the agency
head or other employees of that agency or to the employees of
the Executive Ethics Commission; (iv) statements made by an
employee of a State university concerning cooperative
procurement activities among or between public universities;
and (v) communications regarding transactions less than the
small purchase amount set forth in this Code. The provisions of
this Section shall not apply to communications regarding the
administration and implementation of an existing contract,
except communications regarding change orders or the renewal or
extension of a contract.
(b) The report required by subsection (a) shall be
submitted monthly and include at least the following: (i) the
date and time of each communication; (ii) the identity of each
person from whom the written or oral communication was
received, the individual or entity represented by that person,
and any action the person requested or recommended; (iii) the
identity and job title of the person to whom each communication

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was made; (iv) if a response is made, the identity and job
title of the person making each response; (v) a detailed
summary of the points made by each person involved in the
communication; (vi) the duration of the communication; (vii)
the location or locations of all persons involved in the
communication and, if the communication occurred by telephone,
the telephone numbers for the callers and recipients of the
communication; and (viii) any other pertinent information.
(c) Additionally, when an oral communication made by a
person required to register under the Lobbyist Registration Act
is received by a State employee that is covered under this
Section, all individuals who initiate or participate in the
oral communication shall submit a written report to that State
employee that memorializes the communication and includes, but
is not limited to, the items listed in subsection (b).
(d) The Procurement Policy Board shall make each report
submitted pursuant to this Section available on its website
within 7 days after its receipt of the report. The Procurement
Policy Board may promulgate rules to ensure compliance with
this Section.
(e) The reporting requirements shall also be conveyed
through ethics training under the State Employees and Officials
and Employees Ethics Act. An employee who knowingly and
intentionally violates this Section shall be subject to
suspension or discharge. The Executive Ethics Commission shall
promulgate rules, including emergency rules, to implement this

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Section.
(f) This Section becomes operative on January 1, 2011.
(Source: P.A. 96-795, eff. 7-1-10 (see Section 5 of P.A. 96-793
for the effective date of changes made by P.A. 96-795); 96-920,
eff. 7-1-10; revised 9-27-10.)".