Rep. Chapin Rose
Filed: 3/9/2011
 
 


 




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1
AMENDMENT TO HOUSE BILL 89




2 AMENDMENT NO. ______. Amend House Bill 89 by replacing the 
3title with "AN ACT concerning procurement."; and


4by replacing everything after the enacting clause with the 
5following:

6 "Section 5. The Illinois Procurement Code is amended by 
7changing Sections 1-15.107, 1-15.108, 20-25, 20-30, 20-43, 
820-85, 20-90, 20-95, 20-120, 20-160, 25-15, and 50-39 and by 
9adding Section 20-100 as follows:

10 (30 ILCS 500/1-15.107)
11 Sec. 1-15.107. Subcontract. "Subcontract" means a contract 
12between a person and a person who has or is seeking a contract 
13subject to this Code, pursuant to which the subcontractor 
14provides to the contractor or another subcontractor some or all 
15of the goods, services, property, remuneration, or other forms 
 
 
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1of consideration that are the subject of the primary contract 
2and includes, among other things, subleases from a lessee of a 
3State agency.

4(Source: P.A. 96-795, eff. 7-1-10 (see Section 5 of P.A. 96-793 
5for the effective date of P.A. 96-795).)

6 (30 ILCS 500/1-15.108)
7 Sec. 1-15.108. Subcontractor. "Subcontractor" means a 
8person or entity that enters into a contractual agreement with 
9a total value in excess of the small purchase amount set forth 
10in this Code of $25,000 or more with a person or entity who has 
11or is seeking a contract subject to this Code pursuant to which 
12the person or entity provides some or all of the goods, 
13services, property, remuneration, or other forms of 
14consideration that are the subject of the primary State 
15contract, including subleases from a lessee of a State 
16contract.

17(Source: P.A. 96-920, eff. 7-1-10.)



18 (30 ILCS 500/20-25)


19 Sec. 20-25. Sole source procurements. 
20 (a) In accordance with
standards set by rule,
contracts may 
21be awarded without use of the specified
method of source 
22selection when
there is only one economically feasible source 
23for the item. A State contract may not be awarded as a sole 
24source procurement unless approved by the chief procurement 
 
 
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1officer. If any person files an objection to the notice of a 
2sole source procurement during the 14-day notice period 
3required by subsection (c), the chief procurement officer shall 
4provide following a public hearing at which the chief 
5procurement officer, State purchasing officer, or State agency 
6presents and purchasing agency present written justification 
7for the procurement method. The Procurement Policy Board and 
8the public may present testimony.
9 (b) This Section may not be used as a basis for amending a 
10contract for professional or artistic services if the amendment 
11would result in an increase in the amount paid under the 
12contract of more than 5% of the initial award, or would extend 
13the contract term beyond the time reasonably needed for a 
14competitive procurement, not to exceed 2 months.
15 (c) Notice of intent to enter into a sole source contract 
16shall be provided to the Procurement Policy Board and published 
17in the online electronic Bulletin at least 14 days before the 
18public hearing required in subsection (a). The notice shall 
19include the sole source procurement justification form 
20prescribed by the Board, a description of the item to be 
21procured, the intended sole source contractor, and the date, 
22time, and location of the public hearing. A copy of the notice 
23and all documents provided at the hearing shall be included in 
24the subsequent Procurement Bulletin. 

25 (d) By August 1 each year, each chief procurement officer 
26shall file a report with the General Assembly identifying each 
 
 
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1contract the officer sought under the sole source procurement 
2method and providing the justification given for seeking sole 
3source as the procurement method for each of those contracts. 
4(Source: P.A. 96-795, eff. 7-1-10 (see Section 5 of P.A. 96-793 
5for the effective date of changes made by P.A. 96-795); 96-920, 
6eff. 7-1-10.)




7 (30 ILCS 500/20-30)



8 Sec. 20-30. Emergency purchases. 

9 (a) Conditions for use. In accordance with standards set by

10rule, a purchasing
agency may make emergency procurements 
11without competitive sealed
bidding or prior notice
when there 
12exists a threat to public health or public safety, or
when 
13immediate expenditure is
necessary for repairs to State 
14property in order to protect
against further loss of or damage 
15to
State property, to prevent or minimize serious disruption in 
16critical State
services that affect health, safety, or 
17collection of substantial State revenues, or to ensure the

18integrity of State records; provided, however, that the term of 
19the emergency purchase shall be limited to the time reasonably 
20needed for a competitive procurement, not to exceed 90 days. A 
21contract may be extended beyond 90 days if the chief 
22procurement officer determines additional time is necessary 
23and that the contract scope and duration are limited to the 
24emergency. If any person files an objection to the notice of 
25extension required by subsection (b), the chief procurement 
 
 
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1officer shall provide a public hearing at which the chief 
2procurement officer, State purchasing officer, or State agency 
3presents written justification for the extension. The 
4Procurement Policy Board and members Prior to execution of the 
5extension, the chief procurement officer must hold a public 
6hearing and provide written justification for all emergency 
7contracts. Members of the public may present testimony. 
8Emergency procurements shall be made
with as much competition

9as is practicable under the circumstances.
A written

10description of the basis for the emergency and reasons for the

11selection of the particular
contractor shall be included in the 
12contract file.

13 (b) Notice. Notice of all emergency procurements shall be 
14provided to the Procurement Policy Board and published in the 
15online electronic Bulletin no later than 3 business days after 
16the contract is awarded. Notice of intent to extend an 
17emergency contract shall be provided to the Procurement Policy 
18Board and published in the online electronic Bulletin at least 
1914 days before the public hearing. Notice shall include at 
20least a description of the need for the emergency purchase, the 
21contractor, and if applicable, the date, time, and location of 
22the public hearing. A copy of this notice and all documents 
23provided at the hearing shall be included in the subsequent 
24Procurement Bulletin. Before the next appropriate volume of the 
25Illinois Procurement
Bulletin, the purchasing agency shall 
26publish in the
Illinois Procurement Bulletin a copy of each 
 
 
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1written description
and reasons and the total cost
of each 
2emergency procurement made during the previous month.
When only 
3an estimate of the
total cost is known at the time of 
4publication, the estimate shall
be identified as an estimate 
5and
published. When the actual total cost is determined, it 
6shall
also be published in like manner
before the 10th day of 
7the next succeeding month.

8 (c) Affidavits. A chief procurement officer making a 
9procurement
under this Section shall file
affidavits with the 
10Procurement Policy Board and the Auditor General within
10 days

11after the procurement setting
forth the amount expended, the 
12name of the contractor involved,
and the conditions and

13circumstances requiring the emergency procurement. When only 
14an
estimate of the cost is
available within 10 days after the 
15procurement, the actual cost
shall be reported immediately

16after it is determined. At the end of each fiscal quarter, the

17Auditor General shall file with the
Legislative Audit 
18Commission and the Governor a complete listing
of all emergency

19procurements reported during that fiscal quarter. The 
20Legislative
Audit Commission shall
review the emergency 
21procurements so reported and, in its annual
reports, advise the 
22General
Assembly of procurements that appear to constitute an 
23abuse of
this Section.

24 (d) Quick purchases. The chief procurement officer may 
25promulgate rules
extending the circumstances by which a 
26purchasing agency may make purchases
under this Section, 
 
 
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1including but not limited to the procurement of items
available 
2at a discount for a limited period of time.

3 (e) The changes to this Section made by this amendatory Act 
4of the 96th General Assembly apply to procurements executed on 
5or after its effective date.

6(Source: P.A. 96-795, eff. 7-1-10 (see Section 5 of P.A. 96-793 
7for the effective date of changes made by P.A. 96-795).)


8 (30 ILCS 500/20-43)

9 Sec. 20-43. Bidder or offeror authorized to do business in 
10Illinois. In addition to meeting any other requirement of law 
11or rule, a person (other than an individual acting as a sole 
12proprietor) may qualify as a bidder or offeror under this Code 
13only if the person is a legal entity authorized to do business 
14in Illinois prior to submitting the bid, offer, or proposal and 
15is authorized to do business in Illinois prior to execution of 
16the contract.

17(Source: P.A. 96-795, eff. 7-1-10 (see Section 5 of P.A. 96-793 
18for the effective date of P.A. 96-795).)




19 (30 ILCS 500/20-85)



20 Sec. 20-85. Federal requirements. A State agency applying 
21for or receiving federal-aid
funds, grants, or loans shall have 
22authority to adopt its procedures, rules,
project statements, 
23drawings, maps, surveys, plans, specifications, contract

24terms, estimates, bid forms, bond forms, and other documents or 
 
 
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1practices to
comply with the regulations, policies, and 
2procedures of the designated
authority, administration, or 
3department of the United States, in order to
receive or remain 
4eligible for such federal-aid funds, grants, or loans.

5(Source: P.A. 90-572, eff. date - See Sec. 99-5.)





6 (30 ILCS 500/20-90)



7 Sec. 20-90. Foreign country procurements. Procurements to 
8meet the needs
of State offices located in foreign countries or 
9program activities that operate in foreign countries shall 
10comply with the provisions
of this Code to the extent 
11practical. Procurements that must be made from foreign sole 
12source vendors who have no offices in the United States shall 
13comply with the provisions of this Code to the extent 
14practical. 

15(Source: P.A. 90-572, eff. date - See Sec. 99-5.)





16 (30 ILCS 500/20-95)



17 Sec. 20-95. Donations. Nothing in this Code or in the rules 
18promulgated
under this Code shall prevent any State agency from 
19complying with the terms
and conditions of any grant, gift, or 
20bequest that calls for the procurement of
a particular good or 
21service or the use of a particular contractor, provided
that 
22the grant, gift, or bequest provides majority funding for the 
23contract. The provisions of this Code shall apply to the extent 
24practical. 

 
 
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1(Source: P.A. 90-572, eff. date - See Sec. 99-5.)


2 (30 ILCS 500/20-100 new)
3 Sec. 20-100. Expedited procurements. The chief procurement 
4officer may establish by rule expedited processes to procure 
5specialized supplies and services needed to meet research needs 
6of State agencies, to ensure compliance with grant and grant 
7application requirements, to contract for conference and 
8commencement speakers, for athletic events and entertainment, 
9and for membership dues and fees. Notice, vendor qualification, 
10solicitation and contract terms, and other requirements of this 
11Code shall apply to the extent practical.

12 (30 ILCS 500/20-120)
13 Sec. 20-120. Subcontractors.
14 (a) Any contract granted under this Code shall state 
15whether the services of a subcontractor will or may be used. 
16The contract shall include the names and addresses of all known 
17subcontractors with subcontracts with an annual value of more 
18than the small purchase amount authorized by this Code $25,000 
19and the expected amount of money each will receive under the 
20contract. For procurements subject to the authority of the 
21chief procurement officer appointed pursuant to subsection 
22(a)(2) of Section 10-20, the contract shall include only the 
23names and addresses of all known subcontractors of the primary 
24contractor with subcontracts with an annual value of more than 
 
 
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1$25,000. The contractor shall provide the chief procurement 
2officer or State purchasing officer a copy of any subcontract 
3with an annual value of more than $25,000 so identified within 
420 days after the execution of the State contract or after 
5execution of the subcontract, whichever is later. A 
6subcontractor, or contractor on behalf of a subcontractor, may 
7identify information that is deemed proprietary or 
8confidential. If the chief procurement officer determines the 
9information is not relevant to the primary contract, the chief 
10procurement officer may excuse the inclusion of the 
11information. If the chief procurement officer determines the 
12information is proprietary or could harm the business interest 
13of the subcontractor, the chief procurement officer may, in his 
14or her discretion, redact the information. Redacted 
15information shall not become part of the public record. 
16 (b) If at any time during the term of a contract, a 
17contractor adds or changes any subcontractors with an annual 
18value that exceeds the small purchase amounts authorized by 
19this Code, he or she shall promptly notify, in writing, the 
20chief procurement officer, State purchasing officer, or their 
21designee of the names and addresses and the expected amount of 
22money each new or replaced subcontractor will receive. The 
23contractor shall provide to the responsible chief procurement 
24officer a copy of the subcontract within 20 days after the 
25execution of the subcontract.
26 (c) In addition to any other requirements of this Code, a 
 
 
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1subcontract subject to this Section must include all of the 
2subcontractor's certifications required by Article 50 of the 
3Code.
4 (d) This Section applies to procurements solicited on or 
5after the effective date of this amendatory Act of the 96th 
6General Assembly.

7(Source: P.A. 96-795, eff. 7-1-10 (see Section 5 of P.A. 96-793 
8for the effective date of P.A. 96-795); 96-920, eff. 7-1-10.)



9 (30 ILCS 500/20-160)



10 Sec. 20-160. Business entities; certification; 
11registration with the State Board of Elections. 
12 (a) For purposes of this Section, the terms "business 
13entity", "contract", "State contract", "contract with a State 
14agency", "State agency", "affiliated entity", and "affiliated 
15person" have the meanings ascribed to those terms in Section 
1650-37.
17 (b) Every bid submitted to and every contract executed by 
18the State on or after January 1, 2009 (the effective date of 
19Public Act 95-971) shall contain (1) a certification by the 
20bidder or contractor that either (i) the bidder or contractor 
21is not required to register as a business entity with the State 
22Board of Elections pursuant to this Section or (ii) the bidder 
23or contractor has registered as a business entity with the 
24State Board of Elections and acknowledges a continuing duty to 
25update the registration and (2) a statement that the contract 
 
 
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1is voidable under Section 50-60 for the bidder's or 
2contractor's failure to comply with this Section.
3 (c) Within 30 days after the effective date of this 
4amendatory Act of the 95th General Assembly, each business 
5entity (i) whose aggregate bids and proposals on State 
6contracts annually total more than $50,000, (ii) whose 
7aggregate bids and proposals on State contracts combined with 
8the business entity's aggregate annual total value of State 
9contracts exceed $50,000, or (iii) whose contracts with State 
10agencies, in the aggregate, annually total more than $50,000 
11shall register with the State Board of Elections in accordance 
12with Section 9-35 of the Election Code. A business entity 
13required to register under this subsection shall submit a copy 
14of the certificate of registration to the applicable chief 
15procurement officer within 90 days after the effective date of 
16this amendatory Act of the 95th General Assembly. A business 
17entity required to register under this subsection due to item 
18(i) or (ii) has a continuing duty to ensure that the 
19registration is accurate during the period beginning on the 
20date of registration and ending on the day after the date the 
21contract is awarded; any change in information must be reported 
22to the State Board of Elections 5 business days following such 
23change or no later than a day before the contract is awarded, 
24whichever date is earlier. A business entity required to 
25register under this subsection due to item (iii) has a 
26continuing duty to ensure that the registration is accurate in 
 
 
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1accordance with subsection report any changes in information to 
2the State Board of Elections on the final day of January, 
3April, July, and October of each year, or the first business 
4day after such dates, if such dates do not fall on a business 
5day (e).
6 (d) Any business entity, not required under subsection (c) 
7to register within 30 days after the effective date of this 
8amendatory Act of the 95th General Assembly, whose aggregate 
9bids and proposals on State contracts annually total more than 
10$50,000, or whose aggregate bids and proposals on State 
11contracts combined with the business entity's aggregate annual 
12total value of State contracts exceed $50,000, shall register 
13with the State Board of Elections in accordance with Section 
149-35 of the Election Code prior to submitting to a State agency 
15the bid or proposal whose value causes the business entity to 
16fall within the monetary description of this subsection. A 
17business entity required to register under this subsection has 
18a continuing duty to ensure that the registration is accurate 
19during the period beginning on the date of registration and 
20ending on the day after the date the contract is awarded. Any 
21change in information must be reported to the State Board of 
22Elections within 5 business days following such change or no 
23later than a day before the contract is awarded, whichever date 
24is earlier.
25 (e) A business entity whose contracts with State agencies, 
26in the aggregate, annually total more than $50,000 must 
 
 
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1maintain its registration under this Section and has a 
2continuing duty to ensure that the registration is accurate for 
3the duration of the term of office of the incumbent 
4officeholder awarding the contracts or for a period of 2 years 
5following the expiration or termination of the contracts, 
6whichever is longer. A business entity, required to register 
7under this subsection, has a continuing duty to report any 
8changes on a quarterly basis to the State Board of Elections 
9within 10 business days following the last day of January, 
10April, July, and October of each year. Any update pursuant to 
11this paragraph that is received beyond that date is presumed 
12late and the civil penalty authorized by subsection (e) of 
13Section 9-35 of the Election Code (10 ILCS 5/9-35) may be 
14assessed. 
15 Also, if on the final day of January, April, July, and 
16October of each year, or the first business day after such 
17dates, if such dates do not fall on a business day. If a 
18business entity required to register under this subsection has 
19a pending bid or proposal, any change in information shall be 
20reported to the State Board of Elections within 5 business days 
21following such change or no later than a day before the 
22contract is awarded, whichever date is earlier.
23 (f) A business entity's continuing duty under this Section 
24to ensure the accuracy of its registration includes the 
25requirement that the business entity notify the State Board of 
26Elections of any change in information, including but not 
 
 
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1limited to changes of affiliated entities or affiliated 
2persons.
3 (g) A copy of a certificate of registration must accompany 
4any bid or proposal for a contract with a State agency by a 
5business entity required to register under this Section. A 
6chief procurement officer shall not accept a bid or proposal 
7unless the vendor has made and complied with the certification 
8required in subsection (b) the certificate is submitted to the 
9agency with the bid or proposal.
10 (h) A registration, and any changes to a registration, must 
11include the business entity's verification of accuracy and 
12subjects the business entity to the penalties of the laws of 
13this State for perjury.
14 In addition to any penalty under Section 9-35 of the 
15Election Code, intentional, willful, or material failure to 
16disclose information required for registration shall render 
17the contract, bid, proposal, or other procurement relationship 
18voidable by the chief procurement officer if he or she deems it 
19to be in the best interest of the State of Illinois.
20 (i) This Section applies to all methods regardless of the 
21method of source selection used in awarding the contract, 
22except that the chief procurement officer may waive compliance 
23for sole sources and emergency contracts if necessary to secure 
24the contract.

25(Source: P.A. 95-971, eff. 1-1-09; 96-795, eff. 7-1-10 (see 
26Section 5 of P.A. 96-793 for the effective date of changes made 
 
 
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1by P.A. 96-795); 96-848, eff. 1-1-10; revised 9-23-10.)




2 (30 ILCS 500/25-15)



3 Sec. 25-15. Method of source selection. 

4 (a) Competitive sealed bidding. Except as provided in

5subsection (b) and Sections 20-20,
20-25, and 20-30,
all State

6contracts for supplies and services shall be awarded by

7competitive sealed bidding in accordance with
Section 20-10.

8 (b) Other methods. The chief procurement officer may 
9establish by rule
(i) categories of purchases, including 
10non-governmental joint purchases, that
may
be made without 
11competitive sealed bidding and (ii) the most
competitive 
12alternate method of source
selection that shall be used for 
13each category of purchase. When determined necessary by the 
14State agency and approved by the chief procurement officer, 
15vendor qualification and contract terms otherwise required may 
16be modified to ensure that the needs of the State agency can be 
17met. The determination and approval must be published in the 
18Illinois Procurement Bulletin. 

19(Source: P.A. 90-572, eff. date - See Sec. 99-5.)


20 (30 ILCS 500/50-39)
21 Sec. 50-39. Procurement communications reporting 
22requirement.
23 (a) Any written or oral communication received by a State 
24employee that imparts or requests material information or makes 
 
 
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1a material argument regarding potential action concerning a 
2procurement matter, including, but not limited to, an 
3application, a contract, or a project, shall be reported to the 
4Procurement Policy Board. These communications do not include 
5the following: (i) statements by a person publicly made in a 
6public forum; (ii) statements regarding matters of procedure 
7and practice, such as format, the number of copies required, 
8the manner of filing, and the status of a matter; and (iii) 
9statements made by a State employee of the agency to the agency 
10head or other employees of that agency or to the employees of 
11the Executive Ethics Commission; (iv) statements made by an 
12employee of a State university concerning cooperative 
13procurement activities among or between public universities; 
14and (v) communications regarding transactions less than the 
15small purchase amount set forth in this Code. The provisions of 
16this Section shall not apply to communications regarding the 
17administration and implementation of an existing contract, 
18except communications regarding change orders or the renewal or 
19extension of a contract. 
20 (b) The report required by subsection (a) shall be 
21submitted monthly and include at least the following: (i) the 
22date and time of each communication; (ii) the identity of each 
23person from whom the written or oral communication was 
24received, the individual or entity represented by that person, 
25and any action the person requested or recommended; (iii) the 
26identity and job title of the person to whom each communication 
 
 
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1was made; (iv) if a response is made, the identity and job 
2title of the person making each response; (v) a detailed 
3summary of the points made by each person involved in the 
4communication; (vi) the duration of the communication; (vii) 
5the location or locations of all persons involved in the 
6communication and, if the communication occurred by telephone, 
7the telephone numbers for the callers and recipients of the 
8communication; and (viii) any other pertinent information.
9 (c) Additionally, when an oral communication made by a 
10person required to register under the Lobbyist Registration Act 
11is received by a State employee that is covered under this 
12Section, all individuals who initiate or participate in the 
13oral communication shall submit a written report to that State 
14employee that memorializes the communication and includes, but 
15is not limited to, the items listed in subsection (b).
16 (d) The Procurement Policy Board shall make each report 
17submitted pursuant to this Section available on its website 
18within 7 days after its receipt of the report. The Procurement 
19Policy Board may promulgate rules to ensure compliance with 
20this Section.
21 (e) The reporting requirements shall also be conveyed 
22through ethics training under the State Employees and Officials 
23and Employees Ethics Act. An employee who knowingly and 
24intentionally violates this Section shall be subject to 
25suspension or discharge. The Executive Ethics Commission shall 
26promulgate rules, including emergency rules, to implement this 
 
 
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1Section. 
2 (f) This Section becomes operative on January 1, 2011. 
3(Source: P.A. 96-795, eff. 7-1-10 (see Section 5 of P.A. 96-793 
4for the effective date of changes made by P.A. 96-795); 96-920, 
5eff. 7-1-10; revised 9-27-10.)".