Bill Text: IL HB4774 | 2017-2018 | 100th General Assembly | Introduced

NOTE: There are more recent revisions of this legislation. Read Latest Draft

---

Bill Title: Amends the Counties Code. In provisions regarding determination of the lowest responsible bidder in purchases by a county with fewer than 2,000,000 inhabitants for services, materials, and equipment, a local company that bids within 5% to 10% of the lowest bid, if that lowest bid is made by a non-local company, is the lowest responsible bidder. Provides that if more than one local company's bid is within 5% to 10% of the lowest bid made by a non-local company, the county board shall award the contract to the lowest responsible bidder among the local company bids. Defines "local company" as a company or business entity located within the contracting county or any contiguous county in the State that has the majority of its regular, full-time workforce located within the contracting county or contiguous county. Amends the Township Code. Makes similar changes in provisions concerning construction contracts and contracts for services, materials, equipment, or supplies. Amends the Illinois Municipal Code. Makes similar changes in provisions concerning purchasing and public works contracts in municipalities of less than 500,000.

Spectrum: Partisan Bill (Democrat 2-0)

Status: (Introduced - Dead) 2018-04-27 - Third Reading - Standard Debate - Lost 042-046-008 [HB4774 Detail]

Download: Illinois-2017-HB4774-Introduced.html

---

100TH GENERAL ASSEMBLY State of Illinois 2017 and 2018 HB4774 Introduced , by Rep. Stephanie A. Kifowit SYNOPSIS AS INTRODUCED:
55 ILCS 5/5-1022 from Ch. 34, par. 5-1022
60 ILCS 1/85-30
60 ILCS 1/205-105
65 ILCS 5/8-9-1 from Ch. 24, par. 8-9-1
Amends the Counties Code. In provisions regarding determination of the lowest responsible bidder in purchases by a county with fewer than 2,000,000 inhabitants for services, materials, and equipment, a local company that bids within 5% to 10% of the lowest bid, if that lowest bid is made by a non-local company, is the lowest responsible bidder. Provides that if more than one local company's bid is within 5% to 10% of the lowest bid made by a non-local company, the county board shall award the contract to the lowest responsible bidder among the local company bids. Defines "local company" as a company or business entity located within the contracting county or any contiguous county in the State that has the majority of its regular, full-time workforce located within the contracting county or contiguous county. Amends the Township Code. Makes similar changes in provisions concerning construction contracts and contracts for services, materials, equipment, or supplies. Amends the Illinois Municipal Code. Makes similar changes in provisions concerning purchasing and public works contracts in municipalities of less than 500,000.
LRB100 18254 AWJ 33457 b
FISCAL NOTE ACT MAY APPLY STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT
A BILL FOR
HB4774 LRB100 18254 AWJ 33457 b
AN ACT concerning local government.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Counties Code is amended by changing Section
5-1022 as follows:
(55 ILCS 5/5-1022) (from Ch. 34, par. 5-1022)
Sec. 5-1022. Competitive bids.
(a) Any purchase by a county with fewer than 2,000,000
inhabitants of services, materials, equipment or supplies in
excess of $30,000, other than professional services, shall be
contracted for in one of the following ways:
(1) by a contract let to the lowest responsible bidder
after advertising for bids in a newspaper published within
the county or, if no newspaper is published within the
county, then a newspaper having general circulation within
the county; or
(2) by a contract let without advertising for bids in
the case of an emergency if authorized by the county board.
(b) In determining the lowest responsible bidder, the
county board shall take into consideration the qualities of the
articles supplied; their conformity with the specifications;
their suitability to the requirements of the county,
availability of support services; uniqueness of the service,

HB4774 - 2 - LRB100 18254 AWJ 33457 b
materials, equipment, or supplies as it applies to networked,
integrated computer systems; compatibility to existing
equipment; and the delivery terms. The county board also may
take into consideration whether a bidder is a private
enterprise or a State-controlled enterprise and,
notwithstanding any other provision of this Section or a lower
bid by a State-controlled enterprise, may let a contract to the
lowest responsible bidder that is a private enterprise.
(b-5) In determining the lowest responsible bidder, a local
company that bids within 5% to 10% of the lowest bid, if that
lowest bid is made by a non-local company, is the lowest
responsible bidder. If more than one local company's bid is
within 5% to 10% of the lowest bid made by a non-local company,
the county board shall follow subsection (b) in determining the
lowest responsible bidder among the local company bids.
As used in this subsection, "local company" means a company
or business entity located within the contracting county or any
contiguous county in the State that has the majority of its
regular, full-time workforce located within the contracting
county or contiguous county.
(c) This Section does not apply to contracts by a county
with the federal government or to purchases of used equipment,
purchases at auction or similar transactions which by their
very nature are not suitable to competitive bids, pursuant to
an ordinance adopted by the county board.
(d) Notwithstanding the provisions of this Section, a

HB4774 - 3 - LRB100 18254 AWJ 33457 b
county may let without advertising for bids in the case of
purchases and contracts, when individual orders do not exceed
$35,000, for the use, purchase, delivery, movement, or
installation of data processing equipment, software, or
services and telecommunications and inter-connect equipment,
software, and services.
(e) A county may require, as a condition of any contract
for goods and services, that persons awarded a contract with
the county and all affiliates of the person collect and remit
Illinois Use Tax on all sales of tangible personal property
into the State of Illinois in accordance with the provisions of
the Illinois Use Tax Act regardless of whether the person or
affiliate is a "retailer maintaining a place of business within
this State" as defined in Section 2 of the Use Tax Act. For
purposes of this subsection (e), the term "affiliate" means any
entity that (1) directly, indirectly, or constructively
controls another entity, (2) is directly, indirectly, or
constructively controlled by another entity, or (3) is subject
to the control of a common entity. For purposes of this
subsection (e), an entity controls another entity if it owns,
directly or individually, more than 10% of the voting
securities of that entity. As used in this subsection (e), the
term "voting security" means a security that (1) confers upon
the holder the right to vote for the election of members of the
board of directors or similar governing body of the business or
(2) is convertible into, or entitles the holder to receive upon

HB4774 - 4 - LRB100 18254 AWJ 33457 b
its exercise, a security that confers such a right to vote. A
general partnership interest is a voting security.
(f) Bids submitted to, and contracts executed by, the
county may require a certification by the bidder or contractor
that the bidder or contractor is not barred from bidding for or
entering into a contract under this Section and that the bidder
or contractor acknowledges that the county may declare the
contract void if the certification completed pursuant to this
subsection (f) is false.
(Source: P.A. 95-331, eff. 8-21-07; 96-170, eff. 1-1-10.)
Section 10. The Township Code is amended by changing
Sections 85-30 and 205-105 as follows:
(60 ILCS 1/85-30)
Sec. 85-30. Purchases; bids. Any purchase by a township for
services, materials, equipment, or supplies in excess of
$20,000 (other than professional services) shall be contracted
for in one of the following ways:
(1) By a contract let to the lowest responsible bidder
after advertising for bids at least once (i) in a newspaper
published within the township, or (ii) if no newspaper is
published within the township, then in one published within
the county, or (iii) if no newspaper is published within
the county, then in a newspaper having general circulation
within the township.

HB4774 - 5 - LRB100 18254 AWJ 33457 b
(2) By a contract let without advertising for bids in
the case of an emergency if authorized by the township
board.
If a contract is let under item (1), in determining the
lowest responsible bidder, a local company that bids within 5%
to 10% of the lowest bid, if that lowest bid is made by a
non-local company, is the lowest responsible bidder. If more
than one local company's bid is within 5% to 10% of the lowest
bid made by a non-local company, the township board shall award
the contract to the lowest responsible bidder among the local
company bids. As used in this paragraph, "local company" means
a company or business entity located within the contracting
township or any contiguous township in the State that has the
majority of its regular, full-time workforce located within the
contracting township or contiguous township.
This Section does not apply to contracts by a township with
the federal government.
(Source: P.A. 94-435, eff. 8-2-05.)
(60 ILCS 1/205-105)
Sec. 205-105. Construction contracts; bids.
(a) All contracts for construction work whose estimated
cost will exceed $20,000 shall be let to the lowest responsible
bidder after publication of notice for bids. Notice for bids
shall be published once in a newspaper published and having
general circulation in the township, if there is one. If there

HB4774 - 6 - LRB100 18254 AWJ 33457 b
is no such newspaper, notice for bids shall be published in a
newspaper published and having general circulation in the
county. Notice for bids shall be published at least 10 days
before the date set for receiving bids. Bids shall be opened
and publicly read, and an award shall be made to the lowest
responsible bidder within 15 days after the receipt of bids.
(a-5) In determining the lowest responsible bidder, a local
company that bids within 5% to 10% of the lowest bid, if that
lowest bid is made by a non-local company, is the lowest
responsible bidder. If more than one local company's bid is
within 5% to 10% of the lowest bid made by a non-local company,
the township board shall award the contract to the lowest
responsible bidder among the local company bids.
As used in this subsection, "local company" means a company
or business entity located within the contracting township or
any contiguous township in the State that has the majority of
its regular, full-time workforce located within the
contracting township or contiguous township.
(b) This Section shall not apply to engineering, legal, or
other professional services, but it shall apply to the purchase
of equipment unless the township board, by a resolution adopted
by a three-fourths vote, determines that it is for the best
interests of the township that advertising for bids for the
equipment be dispensed with.
(Source: P.A. 95-300, eff. 8-20-07.)

HB4774 - 7 - LRB100 18254 AWJ 33457 b
Section 15. The Illinois Municipal Code is amended by
changing Section 8-9-1 as follows:
(65 ILCS 5/8-9-1) (from Ch. 24, par. 8-9-1)
Sec. 8-9-1. In municipalities of less than 500,000 except
as otherwise provided in Articles 4 and 5 any work or other
public improvement which is not to be paid for in whole or in
part by special assessment or special taxation, when the
expense thereof will exceed $25,000, shall be constructed
either (1) by a contract let to the lowest responsible bidder
after advertising for bids, in the manner prescribed by
ordinance, except that any such contract may be entered into by
the proper officers without advertising for bids, if authorized
by a vote of two-thirds of all the aldermen or trustees then
holding office; or (2) in the following manner, if authorized
by a vote of two-thirds of all the aldermen or trustees then
holding office, to-wit: the commissioner of public works or
other proper officers to be designated by ordinance, shall
superintend and cause to be carried out the construction of the
work or other public improvement and shall employ exclusively
for the performance of all manual labor thereon, laborers and
artisans whom the municipality shall pay by the day or hour;
and all material of the value of $25,000 and upward used in the
construction of the work or other public improvement, shall be
purchased by contract let to the lowest responsible bidder in
the manner to be prescribed by ordinance. However, nothing

HB4774 - 8 - LRB100 18254 AWJ 33457 b
contained in this section shall apply to any contract by a
city, village or incorporated town with the federal government
or any agency thereof.
When entering into contract let to the lowest responsible
bidder after advertising for bids under this Section, in
determining the lowest responsible bidder, a local company that
bids within 5% to 10% of the lowest bid, if that lowest bid is
made by a non-local company, is the lowest responsible bidder.
If more than one local company's bid is within 5% to 10% of the
lowest bid made by a non-local company, the corporate
authorities of the municipality shall award the contract to the
lowest responsible bidder among the local company bids. As used
in this paragraph, "local company" means a company or business
entity located within the contracting municipality or any
contiguous municipality in the State that has the majority of
its regular, full-time workforce located within the
contracting municipality or contiguous municipality.
In every city which has adopted Division 1 of Article 10,
every such laborer or artisan shall be certified by the civil
service commission to the commissioner of public works or other
proper officers, in accordance with the requirement of that
division.
In municipalities of 500,000 or more population the letting
of contracts for work or other public improvements of the
character described in this section shall be governed by the
provisions of Division 10 of this Article 8.

HB4774 - 9 - LRB100 18254 AWJ 33457 b
(Source: P.A. 100-338, eff. 8-25-17.)