Bill Text: IL HB3777 | 2017-2018 | 100th General Assembly | Introduced

---

Bill Title: Amends the Illinois Procurement Code. Creates a bid incentive program for State-based manufacturers. Sets forth requirements needed to access the program and the bid incentive amount for the total dollar value of locally manufactured goods. Sets forth exemptions to the incentive program. Requires the maintenance of records and provides for penalties in the event a manufacturer fails to meet projected amounts of locally-manufactured goods. Allows the Department of Central Management Services to adopt rules to implement the program.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2017-05-15 - Tabled [HB3777 Detail]

Download: Illinois-2017-HB3777-Introduced.html

---

100TH GENERAL ASSEMBLY State of Illinois 2017 and 2018 HB3777 Introduced , by Rep. Juliana Stratton SYNOPSIS AS INTRODUCED:
30 ILCS 500/45-85 new
Amends the Illinois Procurement Code. Creates a bid incentive program for State-based manufacturers. Sets forth requirements needed to access the program and the bid incentive amount for the total dollar value of locally manufactured goods. Sets forth exemptions to the incentive program. Requires the maintenance of records and provides for penalties in the event a manufacturer fails to meet projected amounts of locally-manufactured goods. Allows the Department of Central Management Services to adopt rules to implement the program.
LRB100 10950 MLM 21187 b
A BILL FOR
HB3777 LRB100 10950 MLM 21187 b
AN ACT concerning finance.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Illinois Procurement Code is amended by
adding Section 45-85 as follows:
(30 ILCS 500/45-85 new)
Sec. 45-85. Bid incentive for certain State-based
manufacturers.
(a) As used in this Section:
"Contract for goods" means any contract, purchase order, or
agreement for the purchase of goods awarded by the State and
whose cost is to be paid from funds belonging to or
administered by the State; provided that a "contract" does not
include: (i) a delegate agency contract; (ii) a lease of real
property; (iii) a collective bargaining agreement; or (iv) a
contract for construction services under this Code.
"Locally-manufactured goods" means goods whose value,
either in whole or in part, is derived from growing, producing,
processing, assembling, or manufacturing activities that occur
within a State-based manufacturer's facility located within
the State.
"Manufacture" means to produce tangible goods for use from
raw or prepared materials by giving the materials new forms,

HB3777 - 2 - LRB100 10950 MLM 21187 b
qualities, properties, or combinations, whether by hand-labor
or machines.
"State-based manufacturer" means a person who: (i) holds
any appropriate State license; (ii) is subject to applicable
State taxes; and (iii) owns, operates, or leases a
manufacturing facility within the State.
(b) Unless otherwise prohibited by any federal, State, or
local law, for any contract for goods having an estimated
contract value of $100,000 or more advertised, or if not
advertised awarded, after the effective date of this Section,
the chief procurement officer shall allocate to any qualified
bidder the following bid incentive:
Total Dollar Value of
Locally-Manufactured Goods
Provided in the Contract Bid Incentive
25% to 49% 1% of the contract base bid
50% to 74% 1.5% of the contract base bid
75% or greater 2% of the contract base bid
for any contract subject to this Section, if a contractor
is allocated a bid preference pursuant to another Section of
this Code, the contractor shall not be eligible to receive the
bid incentive allocated pursuant to this Section.
The bid incentive is used only to calculate an amount to be
used in evaluating the bid to determine the low bidder, and it

HB3777 - 3 - LRB100 10950 MLM 21187 b
does not affect the contract price.
(c) The applicable chief procurement officer may determine
not to allocate a bid incentive under this Section, under the
following conditions:
(i) the purchase of locally-manufactured goods is not
in the best interest of the State;
(ii) the locally-manufactured goods are not likely to
be available in sufficient supply and acceptable quality;
(iii) the purchase of locally-manufactured goods
conflicts with another State economic development program;
(iv) the purchase of locally-manufactured goods will
increase the cost of the goods by more than 5% over
non-locally manufactured goods;
(v) for cooperative purchasing contracts; or
(vi) an emergency exists.
(d) For all contracts advertised after the effective date
of this Section, the applicable chief procurement officer shall
include the bid incentive provision consistent with this
Section in all contract advertising.
(e) The contractor shall maintain records adequate to
monitor compliance with this section and shall submit such
reports as required by the applicable chief procurement
officer. Full access to the contractor's records shall be
granted to the applicable chief procurement officer, the
director of the contracting State agency, the executive
inspector general, or any duly authorized representative

HB3777 - 4 - LRB100 10950 MLM 21187 b
thereof. The contractor and subcontractors shall maintain all
relevant records for a period of no less than 3 years after the
expiration of the contract.
(f) The applicable chief procurement officer may require,
at the time of submission of a bid or at any time during the
term of the contract, that the bidder or contractor submit an
affidavit and other supporting documents demonstrating that
the bid for which the bid incentive is being or was sought
satisfies all pertinent requirements, including documentation
that a specific good meets the criteria for a
locally-manufactured good. The documentation may include, but
is not limited to, a manufacturer's certification that the good
was manufactured at a facility located in the State and an
opinion from a certified public accountant that evidences the
amount of the value being added from the manufacturing activity
located in the State.
(g) Upon completion of the work, any contractor that has
failed to supply the required percentage of
locally-manufactured goods for which a bid incentive was
allocated shall be fined in an amount equal to 3 times the
amount of the difference between the bid incentive allocated
and the bid incentive that would have been allocated to that
contractor for the amount of locally-manufactured goods
actually supplied under the contract, unless the contractor can
demonstrate that due to circumstances beyond the contractor's
control, the contractor for good cause was unable to provide

HB3777 - 5 - LRB100 10950 MLM 21187 b
the required percentage of locally manufactured goods.
(h) The Department of Central Management Services may adopt
reasonable rules pertaining to the administration and
enforcement of this Section.