Bill Text: IL HB2326 | 2023-2024 | 103rd General Assembly | Introduced
Bill Title: Amends the Illinois Procurement Code. Exempts from the Code's requirements procurement expenditures made by a public institution of higher education for the purchase of equipment or improvements for research facilities purchased with funds provided by a third party as part of a sponsored research agreement. Provides that the public institution of higher education shall maintain and publish a list of its procurements that are exempt under this provision categorized by procurement type and total expenditure.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced) 2023-02-14 - Referred to Rules Committee [HB2326 Detail]
Download: Illinois-2023-HB2326-Introduced.html
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1 | AN ACT concerning finance.
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2 | Be it enacted by the People of the State of Illinois,
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3 | represented in the General Assembly:
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4 | Section 5. The Illinois Procurement Code is amended by | |||||||||||||||||||
5 | changing Section 1-13 as follows:
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6 | (30 ILCS 500/1-13) | |||||||||||||||||||
7 | Sec. 1-13. Applicability to public institutions of higher | |||||||||||||||||||
8 | education. | |||||||||||||||||||
9 | (a) This Code shall apply to public institutions of higher | |||||||||||||||||||
10 | education, regardless of the source of the funds with which | |||||||||||||||||||
11 | contracts are paid, except as provided in this Section. | |||||||||||||||||||
12 | (b) Except as provided in this Section, this Code shall | |||||||||||||||||||
13 | not apply to procurements made by or on behalf of public | |||||||||||||||||||
14 | institutions of higher education for any of the following: | |||||||||||||||||||
15 | (1) Memberships in professional, academic, research, | |||||||||||||||||||
16 | or athletic organizations on behalf of a public | |||||||||||||||||||
17 | institution of higher education, an employee of a public | |||||||||||||||||||
18 | institution of higher education, or a student at a public | |||||||||||||||||||
19 | institution of higher education. | |||||||||||||||||||
20 | (2) Procurement expenditures for events or activities | |||||||||||||||||||
21 | paid for exclusively by revenues generated by the event or | |||||||||||||||||||
22 | activity, gifts or donations for the event or activity, | |||||||||||||||||||
23 | private grants, or any combination thereof. |
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1 | (3) Procurement expenditures for events or activities | ||||||
2 | for which the use of specific potential contractors is | ||||||
3 | mandated or identified by the sponsor of the event or | ||||||
4 | activity, provided that the sponsor is providing a | ||||||
5 | majority of the funding for the event or activity. | ||||||
6 | (4) Procurement expenditures necessary to provide | ||||||
7 | athletic, artistic or musical services, performances, | ||||||
8 | events, or productions by or for a public institution of | ||||||
9 | higher education. | ||||||
10 | (5) Procurement expenditures for periodicals, books, | ||||||
11 | subscriptions, database licenses, and other publications | ||||||
12 | procured for use by a university library or academic | ||||||
13 | department, except for expenditures related to procuring | ||||||
14 | textbooks for student use or materials for resale or | ||||||
15 | rental. | ||||||
16 | (6) Procurement expenditures for placement of students | ||||||
17 | in externships, practicums, field experiences, and for | ||||||
18 | medical residencies and rotations. | ||||||
19 | (7) Contracts for programming and broadcast license | ||||||
20 | rights for university-operated radio and television | ||||||
21 | stations. | ||||||
22 | (8) Procurement expenditures necessary to perform | ||||||
23 | sponsored research and other sponsored activities under | ||||||
24 | grants and contracts funded by the sponsor or by sources | ||||||
25 | other than State appropriations. | ||||||
26 | (9) Contracts with a foreign entity for research or |
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1 | educational activities, provided that the foreign entity | ||||||
2 | either does not maintain an office in the United States or | ||||||
3 | is the sole source of the service or product. | ||||||
4 | (10) Procurement expenditures for any ongoing software | ||||||
5 | license or maintenance agreement or competitively | ||||||
6 | solicited software purchase, when the software, license, | ||||||
7 | or maintenance agreement is available through only the | ||||||
8 | software creator or its manufacturer and not a reseller. | ||||||
9 | (11) Procurement expenditures incurred outside of the | ||||||
10 | United States for the recruitment of international | ||||||
11 | students. | ||||||
12 | (12) Procurement expenditures made by a public | ||||||
13 | institution of higher education for purchases of equipment | ||||||
14 | or improvements for research facilities purchased with | ||||||
15 | funds provided by a third party as part of a sponsored | ||||||
16 | research agreement. For procurements made pursuant to this | ||||||
17 | paragraph (12), the public institution of higher education | ||||||
18 | shall maintain and publish a list of all such purchases | ||||||
19 | and list them by category and total expenditure. | ||||||
20 | Notice of each contract with an annual value of more than | ||||||
21 | $100,000 entered into by a public institution of higher | ||||||
22 | education that is related to the procurement of goods and | ||||||
23 | services identified in items (1) through (11) of this | ||||||
24 | subsection shall be published in the Procurement Bulletin | ||||||
25 | within 14 calendar days after contract execution. The Chief | ||||||
26 | Procurement Officer shall prescribe the form and content of |
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1 | the notice. Each public institution of higher education shall | ||||||
2 | provide the Chief Procurement Officer, on a monthly basis, in | ||||||
3 | the form and content prescribed by the Chief Procurement | ||||||
4 | Officer, a report of contracts that are related to the | ||||||
5 | procurement of goods and services identified in this | ||||||
6 | subsection. At a minimum, this report shall include the name | ||||||
7 | of the contractor, a description of the supply or service | ||||||
8 | provided, the total amount of the contract, the term of the | ||||||
9 | contract, and the exception to the Code utilized. A copy of any | ||||||
10 | or all of these contracts shall be made available to the Chief | ||||||
11 | Procurement Officer immediately upon request. The Chief | ||||||
12 | Procurement Officer shall submit a report to the Governor and | ||||||
13 | General Assembly no later than November 1 of each year that | ||||||
14 | shall include, at a minimum, an annual summary of the monthly | ||||||
15 | information reported to the Chief Procurement Officer. | ||||||
16 | (b-5) Except as provided in this subsection, the | ||||||
17 | provisions of this Code shall not apply to contracts for | ||||||
18 | medical supplies or to contracts for medical services | ||||||
19 | necessary for the delivery of care and treatment at medical, | ||||||
20 | dental, or veterinary teaching facilities used by Southern | ||||||
21 | Illinois University or the University of Illinois or at any | ||||||
22 | university-operated health care center or dispensary that | ||||||
23 | provides care, treatment, and medications for students, | ||||||
24 | faculty, and staff. Furthermore, the provisions of this Code | ||||||
25 | do not apply to the procurement by such a facility of any | ||||||
26 | additional supplies or services that the operator of the |
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1 | facility deems necessary for the effective use and functioning | ||||||
2 | of the medical supplies or services that are otherwise exempt | ||||||
3 | from this Code under this subsection (b-5). However, other | ||||||
4 | supplies and services needed for these teaching facilities | ||||||
5 | shall be subject to the jurisdiction of the Chief Procurement | ||||||
6 | Officer for Public Institutions of Higher Education who may | ||||||
7 | establish expedited procurement procedures and may waive or | ||||||
8 | modify certification, contract, hearing, process and | ||||||
9 | registration requirements required by the Code. All | ||||||
10 | procurements made under this subsection shall be documented | ||||||
11 | and may require publication in the Illinois Procurement | ||||||
12 | Bulletin. | ||||||
13 | (b-10) Procurements made by or on behalf of the University | ||||||
14 | of Illinois for investment services may be entered into or | ||||||
15 | renewed without being subject to the requirements of this | ||||||
16 | Code. Notice of intent to renew a contract shall be published | ||||||
17 | in the Illinois Public Higher Education Procurement Bulletin | ||||||
18 | at least 14 days prior to the execution of a renewal, and the | ||||||
19 | University of Illinois shall hold a public hearing for | ||||||
20 | interested parties to provide public comment. Any contract | ||||||
21 | extended, renewed, or entered pursuant to this exception shall | ||||||
22 | be published in the Illinois Public Higher Education | ||||||
23 | Procurement Bulletin within 5 days of contract execution. | ||||||
24 | (c) Procurements made by or on behalf of public | ||||||
25 | institutions of higher education for the fulfillment of a | ||||||
26 | grant shall be made in accordance with the requirements of |
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1 | this Code to the extent practical. | ||||||
2 | Upon the written request of a public institution of higher | ||||||
3 | education, the Chief Procurement Officer may waive contract, | ||||||
4 | registration, certification, and hearing requirements of this | ||||||
5 | Code if, based on the item to be procured or the terms of a | ||||||
6 | grant, compliance is impractical. The public institution of | ||||||
7 | higher education shall provide the Chief Procurement Officer | ||||||
8 | with specific reasons for the waiver, including the necessity | ||||||
9 | of contracting with a particular potential contractor, and | ||||||
10 | shall certify that an effort was made in good faith to comply | ||||||
11 | with the provisions of this Code. The Chief Procurement | ||||||
12 | Officer shall provide written justification for any waivers. | ||||||
13 | By November 1 of each year, the Chief Procurement Officer | ||||||
14 | shall file a report with the General Assembly identifying each | ||||||
15 | contract approved with waivers and providing the justification | ||||||
16 | given for any waivers for each of those contracts. Notice of | ||||||
17 | each waiver made under this subsection shall be published in | ||||||
18 | the Procurement Bulletin within 14 calendar days after | ||||||
19 | contract execution. The Chief Procurement Officer shall | ||||||
20 | prescribe the form and content of the notice. | ||||||
21 | (d) Notwithstanding this Section, a waiver of the | ||||||
22 | registration requirements of Section 20-160 does not permit a | ||||||
23 | business entity and any affiliated entities or affiliated | ||||||
24 | persons to make campaign contributions if otherwise prohibited | ||||||
25 | by Section 50-37. The total amount of contracts awarded in | ||||||
26 | accordance with this Section shall be included in determining |
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1 | the aggregate amount of contracts or pending bids of a | ||||||
2 | business entity and any affiliated entities or affiliated | ||||||
3 | persons. | ||||||
4 | (e) Notwithstanding subsection (e) of Section 50-10.5 of | ||||||
5 | this Code, the Chief Procurement Officer, with the approval of | ||||||
6 | the Executive Ethics Commission, may permit a public | ||||||
7 | institution of higher education to accept a bid or enter into a | ||||||
8 | contract with a business that assisted the public institution | ||||||
9 | of higher education in determining whether there is a need for | ||||||
10 | a contract or assisted in reviewing, drafting, or preparing | ||||||
11 | documents related to a bid or contract, provided that the bid | ||||||
12 | or contract is essential to research administered by the | ||||||
13 | public institution of higher education and it is in the best | ||||||
14 | interest of the public institution of higher education to | ||||||
15 | accept the bid or contract. For purposes of this subsection, | ||||||
16 | "business" includes all individuals with whom a business is | ||||||
17 | affiliated, including, but not limited to, any officer, agent, | ||||||
18 | employee, consultant, independent contractor, director, | ||||||
19 | partner, manager, or shareholder of a business. The Executive | ||||||
20 | Ethics Commission may promulgate rules and regulations for the | ||||||
21 | implementation and administration of the provisions of this | ||||||
22 | subsection (e). | ||||||
23 | (f) As used in this Section: | ||||||
24 | "Grant" means non-appropriated funding provided by a | ||||||
25 | federal or private entity to support a project or program | ||||||
26 | administered by a public institution of higher education and |
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1 | any non-appropriated funding provided to a sub-recipient of | ||||||
2 | the grant. | ||||||
3 | "Public institution of higher education" means Chicago | ||||||
4 | State University, Eastern Illinois University, Governors State | ||||||
5 | University, Illinois State University, Northeastern Illinois | ||||||
6 | University, Northern Illinois University, Southern Illinois | ||||||
7 | University, University of Illinois, Western Illinois | ||||||
8 | University, and, for purposes of this Code only, the Illinois | ||||||
9 | Mathematics and Science Academy. | ||||||
10 | (g) (Blank).
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11 | (h) The General Assembly finds and declares that: | ||||||
12 | (1) Public Act 98-1076, which took effect on January | ||||||
13 | 1, 2015, changed the repeal date set for this Section from | ||||||
14 | December 31, 2014 to December 31, 2016. | ||||||
15 | (2) The Statute on Statutes sets forth general rules | ||||||
16 | on the repeal of statutes and the construction of multiple | ||||||
17 | amendments, but Section 1 of that Act also states that | ||||||
18 | these rules will not be observed when the result would be | ||||||
19 | "inconsistent with the manifest intent of the General | ||||||
20 | Assembly or repugnant to the context of the statute". | ||||||
21 | (3) This amendatory Act of the 100th General Assembly | ||||||
22 | manifests the intention of the General Assembly to remove | ||||||
23 | the repeal of this Section. | ||||||
24 | (4) This Section was originally enacted to protect, | ||||||
25 | promote, and preserve the general welfare. Any | ||||||
26 | construction of this Section that results in the repeal of |
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1 | this Section on December 31, 2014 would be inconsistent | ||||||
2 | with the manifest intent of the General Assembly and | ||||||
3 | repugnant to the context of this Code. | ||||||
4 | It is hereby declared to have been the intent of the | ||||||
5 | General Assembly that this Section not be subject to repeal on | ||||||
6 | December 31, 2014. | ||||||
7 | This Section shall be deemed to have been in continuous | ||||||
8 | effect since December 20, 2011 (the effective date of Public | ||||||
9 | Act 97-643), and it shall continue to be in effect | ||||||
10 | henceforward until it is otherwise lawfully repealed. All | ||||||
11 | previously enacted amendments to this Section taking effect on | ||||||
12 | or after December 31, 2014, are hereby validated. | ||||||
13 | All actions taken in reliance on or pursuant to this | ||||||
14 | Section by any public institution of higher education, person, | ||||||
15 | or entity are hereby validated. | ||||||
16 | In order to ensure the continuing effectiveness of this | ||||||
17 | Section, it is set forth in full and re-enacted by this | ||||||
18 | amendatory Act of the 100th General Assembly. This | ||||||
19 | re-enactment is intended as a continuation of this Section. It | ||||||
20 | is not intended to supersede any amendment to this Section | ||||||
21 | that is enacted by the 100th General Assembly. | ||||||
22 | In this amendatory Act of the 100th General Assembly, the | ||||||
23 | base text of the reenacted Section is set forth as amended by | ||||||
24 | Public Act 98-1076. Striking and underscoring is used only to | ||||||
25 | show changes being made to the base text. | ||||||
26 | This Section applies to all procurements made on or before |
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1 | the effective date of this amendatory Act of the 100th General | ||||||
2 | Assembly. | ||||||
3 | (Source: P.A. 101-640, eff. 6-12-20; 102-16, eff. 6-17-21; | ||||||
4 | 102-721, eff. 5-6-22; 102-1119, eff. 1-23-23.)
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