Bill Text: IL HB3820 | 2021-2022 | 102nd General Assembly | Engrossed

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Bill Title: Reinserts the provisions of House Amendment No. 2 with changes. Modifies provisions of the Procurement of Domestic Products Act. Provides that it is the public policy of the State of Illinois for each purchasing agency to use the terms and conditions of State financial assistance awards and State procurements to maximize the use of goods, products, and materials (rather than goods, products, materials, and services) produced in Illinois. Provides that compliance reports submitted under the Act shall, among other items, include the purchasing agency's analysis of goods, products, and materials (rather than goods, products, materials, and services) not subject to the Act. Makes other changes. Effective immediately.

Spectrum: Partisan Bill (Democrat 7-0)

Status: (Engrossed - Dead) 2022-03-25 - Rule 3-9(a) / Re-referred to Assignments [HB3820 Detail]

Download: Illinois-2021-HB3820-Engrossed.html

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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 45-105 as follows:
(30 ILCS 500/45-105 new)
Sec. 45-105. Bid preference for Illinois businesses.
(a) For the purposes of this Section:
"Illinois business" means a contractor that: (i) is
headquartered in Illinois and providing, at the time that an
invitation for a bid or notice of contract opportunity is
first advertised, construction or construction-related
professional services for Illinois-based projects; (ii)
conducts meaningful day-to-day business operations at a
facility in Illinois that is the place of employment for the
majority of its regular, full-time workforce; (iii) holds all
appropriate State licenses; and (iv) is subject to applicable
State taxes. "Illinois business" does not include any
subcontractors.
"Illinois-based project" means an individual project of
construction and other construction-related services for a
construction agency that will result in the conduct of
business within the State or the employment of individuals

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within the State.
(b) It is hereby declared to be the public policy of the
State of Illinois to promote the economy of Illinois through
the use of Illinois businesses for all State construction
contracts.
(c) Construction agencies procuring construction and
construction-related professional services shall make
reasonable efforts to contract with Illinois businesses.
(d) Beginning in 2022, each construction agency shall
submit a report to the Governor and the General Assembly by
September 1 of each year that identifies the Illinois
businesses procured by the construction agency, the primary
location of the construction project, the percentage of the
construction agency's utilization of Illinois businesses on
the project as a whole, and the actions that the construction
agency has undertaken to increase the use of Illinois
businesses.
(e) In procuring construction and construction-related
professional services for projects with a total construction
cost of more than $100,000, construction agencies shall
provide a bid preference to a responsible bidder that is an
Illinois business as defined in this Section. The construction
agency shall allocate to any responsible bidder that is an
Illinois business a bid preference of 4% of the contract base
bid.
(f) This Section does not apply to any contract for any

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project for which federal funds are available for expenditure
when its provisions may be in conflict with federal law or
federal regulation.
Section 10. The Procurement of Domestic Products Act is
amended by changing Sections 5, 10, and 25 and by adding
Sections 3 and 35 as follows:
(30 ILCS 517/3 new)
Sec. 3. Policy. It is hereby declared to be the public
policy of the State of Illinois for each purchasing agency to
use the terms and conditions of State financial assistance
awards and State procurements to maximize the use of goods,
products, and materials produced in Illinois.
(30 ILCS 517/5)
Sec. 5. Definitions. As used in this Act:
"Manufactured in Illinois" means, in the case of assembled
articles, materials, or supplies, having been designed,
finally assembled, processed, packaged, tested, or otherwise
processed in Illinois in a manner that adds value, quality, or
reliability.
"Manufactured in the United States" means, in the case of
assembled articles, materials, or supplies, that design, final
assembly, processing, packaging, testing, or other process
that adds value, quality, or reliability occurs in the United

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States.
"Procured products" means assembled articles, materials,
or supplies purchased by a State agency.
"Purchasing agency" has the meaning ascribed to that term
in Section 1-15.70 of the Illinois Procurement Code means a
State agency.
"State agency" has the meaning ascribed to that term in
Section 1-15.100 of the Illinois Procurement Code means each
agency, department, authority, board, or commission of the
executive branch of State government, including each
university, whether created by statute or by executive order
of the Governor.
"United States" means the United States and any place
subject to the jurisdiction of the United States.
(Source: P.A. 98-463, eff. 8-16-13.)
(30 ILCS 517/10)
Sec. 10. Domestic United States products.
(a) Each purchasing agency making purchases of procured
products shall promote the purchase of and give preference to
manufactured articles, materials, and supplies that have been
manufactured in the United States. Procured products
manufactured in the United States shall be specified and
purchased unless the purchasing agency determines that any of
the following applies:
(1) The procured products are not manufactured in the

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United States in reasonably available quantities.
(2) The price of the procured products manufactured in
the United States exceeds by an unreasonable amount the
price of available and comparable procured products
manufactured outside of the United States by 12% or more.
(3) The quality of the procured products manufactured
in the United States is substantially less than the
quality of the comparably priced, available, and
comparable procured products manufactured outside of the
United States.
(4) The purchase of the procured products manufactured
outside of the United States better serves the public
interest by helping to protect or save life, property, or
the environment.
(5) The purchase of the procured products is made in
conjunction with contracts or offerings of
telecommunications, fire suppression, security systems,
communications services, Internet services, or information
services.
(6) The purchase is of pharmaceutical products, drugs,
biologics, vaccines, medical devices used to provide
medical and health care or treat disease or used in
medical or research diagnostic tests, and medical
nutritionals regulated by the Food and Drug Administration
under the federal Food, Drug and Cosmetic Act.
(7) The purchase is an emergency purchase authorized

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under Section 20-30 of the Illinois Procurement Code.
(8) The purchase is a sole source or sole economically
feasible source purchase authorized under Section 20-25 of
the Illinois Procurement Code.
(b) If there is a tie between 2 bidders or offerors who
have certified that they will provide products manufactured in
the United States, the bidder or offeror that certifies it
will provide products manufactured in Illinois shall be given
preference.
(c) In determining the price of procured products for
purposes of this Section, consideration shall be given to the
life-cycle cost, including maintenance and repair of those
procured products.
(Source: P.A. 93-954, eff. 1-1-05; 94-540, eff. 1-1-06.)
(30 ILCS 517/25)
Sec. 25. Penalties. If a contractor is awarded a contract
through the use of a preference under this Act and knowingly
supplies procured products under that contract that are not
manufactured in Illinois or the United States, as applicable,
then (i) the contractor is barred from obtaining any State
contract for a period of 5 years after the violation is
discovered by the purchasing agency, (ii) the purchasing
agency may void the contract, and (iii) the purchasing agency
may recover damages in a civil action in an amount 3 times the
value of the preference.

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(Source: P.A. 93-954, eff. 1-1-05; 94-540, eff. 1-1-06.)
(30 ILCS 517/35 new)
Sec. 35. Compliance reports. Beginning within 180 days
after the effective date of this amendatory Act of the 102nd
General Assembly, and annually thereafter, each purchasing
agency shall submit to the chief procurement officer a report
on: (i) the purchasing agency's compliance with the Act,
including details on any incidents of noncompliance; (ii) the
purchasing agency's analysis of goods, products, and materials
not subject to the Act, including details of any procured
products purchased under an exception listed in subsection (a)
of Section 10; and (iii) any recommendations for how to
further effectuate the policy set forth in this Act.
Section 99. Effective date. This Act takes effect upon
becoming law.