Bill Text: IL SB3576 | 2009-2010 | 96th General Assembly | Enrolled

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Bill Title: Amends the Illinois Procurement Code. Exempts the procurement of leases of property of less than 10,000 square feet with rent of less than $100,000 per year from the required use of the request for information method of procurement (now, procurement is exempt if the lease is of property of less than 10,000 square feet or for rent of less than $100,000 per year). Effective immediately.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Passed) 2010-06-09 - Public Act . . . . . . . . . 96-0920 [SB3576 Detail]

Download: Illinois-2009-SB3576-Enrolled.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
changing Sections 1-15.15, 10-20, 20-25, 20-60, 20-120, 35-15,
35-20, 35-25, 35-30, 35-35, 35-40, 40-15, 50-10.5, 50-35,
50-38, and 50-39 and by adding Sections 1-11 and 1-15.108 as
follows:
(30 ILCS 500/1-11 new)
Sec. 1-11. Applicability of certain Public Acts. The
changes made to this Code by Public Act 96-793, Public Act
96-795, and this amendatory Act of the 96th General Assembly
apply to those procurements for which contractors were first
solicited on or after July 1, 2010.
(30 ILCS 500/1-15.15)
(Text of Section before amendment by P.A. 96-795)
Sec. 1-15.15. Chief Procurement Officer. "Chief
Procurement Officer" means:
(1) for procurements for construction and
construction-related services committed by law to the
jurisdiction or responsibility of the Capital Development
Board, the executive director of the Capital Development

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Board.
(2) for procurements for all construction,
construction-related services, operation of any facility,
and the provision of any service or activity committed by
law to the jurisdiction or responsibility of the Illinois
Department of Transportation, including the direct or
reimbursable expenditure of all federal funds for which the
Department of Transportation is responsible or accountable
for the use thereof in accordance with federal law,
regulation, or procedure, the Secretary of Transportation.
(3) for all procurements made by a public institution
of higher education, a representative designated by the
Governor.
(4) for all procurements made by the Illinois Power
Agency, the Director of the Illinois Power Agency.
(5) for all other procurements, the Director of the
Department of Central Management Services.
(Source: P.A. 95-481, eff. 8-28-07.)
(Text of Section after amendment by P.A. 96-795)
Sec. 1-15.15. Chief Procurement Officer. "Chief
Procurement Officer" means any of the 4 persons appointed or
approved by a majority of the members of the Executive Ethics
Commission for:
(1) for procurements for construction and
construction-related services committed by law to the

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jurisdiction or responsibility of the Capital Development
Board, the independent chief procurement officer appointed
by a majority of the members of the Executive Ethics
Commission.
(2) for procurements for all construction,
construction-related services, operation of any facility,
and the provision of any construction or
construction-related service or activity committed by law
to the jurisdiction or responsibility of the Illinois
Department of Transportation, including the direct or
reimbursable expenditure of all federal funds for which the
Department of Transportation is responsible or accountable
for the use thereof in accordance with federal law,
regulation, or procedure, the independent chief
procurement officer appointed by the Secretary of
Transportation with the consent of the majority of the
members of the Executive Ethics Commission.
(3) for all procurements made by a public institution
of higher education, the independent chief procurement
officer appointed by a majority of the members of the
Executive Ethics Commission.
(4) (Blank).
(5) for all other procurements, the independent chief
procurement officer appointed by a majority of the members
of the Executive Ethics Commission.
(Source: P.A. 95-481, eff. 8-28-07; 96-795, eff. 7-1-10 (see

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Section 5 of P.A. 96-793 for the effective date of changes made
by P.A. 96-795).)
(30 ILCS 500/1-15.108 new)
Sec. 1-15.108. Subcontractor. "Subcontractor" means a
person or entity that enters into a contractual agreement with
a total value of $25,000 or more with a person or entity who
has or is seeking a contract subject to this Code pursuant to
which the person or entity provides some or all of the goods,
services, property, remuneration, or other forms of
consideration that are the subject of the primary State
contract, including subleases from a lessee of a State
contract.
(30 ILCS 500/10-20)
(This Section may contain text from a Public Act with a
delayed effective date)
Sec. 10-20. Independent chief procurement officers.
(a) Appointment. Within 60 days after the effective date of
this amendatory Act of the 96th General Assembly, the Executive
Ethics Commission, with the advice and consent of the Senate
shall appoint or approve 4 chief procurement officers, one for
each of the following categories:
(1) for procurements for construction and
construction-related services committed by law to the
jurisdiction or responsibility of the Capital Development

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Board;
(2) for procurements for all construction,
construction-related services, operation of any facility,
and the provision of any service or activity committed by
law to the jurisdiction or responsibility of the Illinois
Department of Transportation, including the direct or
reimbursable expenditure of all federal funds for which the
Department of Transportation is responsible or accountable
for the use thereof in accordance with federal law,
regulation, or procedure, the chief procurement officer
recommended for approval under this item appointed by the
Secretary of Transportation after consent by the Executive
Ethics Commission;
(3) for all procurements made by a public institution
of higher education; and
(4) for all other procurement needs of State agencies.
A chief procurement officer shall be responsible to the
Executive Ethics Commission but must be located within the
agency that the officer provides with procurement services. The
chief procurement officer for higher education shall have an
office located within the Board of Higher Education, unless
otherwise designated by the Executive Ethics Commission. The
chief procurement officer for all other procurement needs of
the State shall have an office located within the Department of
Central Management Services, unless otherwise designated by
the Executive Ethics Commission.

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(b) Terms and independence. Each chief procurement officer
appointed under this Section shall serve for a term of 5 years
beginning on the date of the officer's appointment. The chief
procurement officer may be removed for cause after a hearing by
the Executive Ethics Commission. The Governor or the director
of a State agency directly responsible to the Governor may
institute a complaint against the officer by filing such
complaint with the Commission. The Commission shall have a
hearing based on the complaint. The officer and the complainant
shall receive reasonable notice of the hearing and shall be
permitted to present their respective arguments on the
complaint. After the hearing, the Commission shall make a
finding on the complaint and may take disciplinary action,
including but not limited to removal of the officer.
The salary of a chief procurement officer shall be
established by the Executive Ethics Commission and may not be
diminished during the officer's term. The salary may not exceed
the salary of the director of a State agency for which the
officer serves as chief procurement officer.
(c) Qualifications. In addition to any other requirement or
qualification required by State law, each chief procurement
officer must within 12 months of employment be a Certified
Professional Public Buyer or a Certified Public Purchasing
Officer, pursuant to certification by the Universal Public
Purchasing Certification Council, and must reside in Illinois.
(d) Fiduciary duty. Each chief procurement officer owes a

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fiduciary duty to the State.
(e) Vacancy. In case of a vacancy in one or more of the
offices of a chief procurement officer under this Section
during the recess of the Senate, the Executive Ethics
Commission shall make a temporary appointment until the next
meeting of the Senate, when the Executive Ethics Commission
shall nominate some person to fill the office, and any person
so nominated who is confirmed by the Senate shall hold office
during the remainder of the term and until his or her successor
is appointed and qualified. If the Senate is not in session at
the time this amendatory Act of the 96th General Assembly takes
effect, the Executive Ethics Commission shall make a temporary
appointment as in the case of a vacancy.
(f) Acting chief procurement officers. Prior to August 31,
2010, the Executive Ethics Commission may, until an initial
chief procurement officer is appointed and qualified,
designate some person as an acting chief procurement officer to
execute the powers and discharge the duties vested by law in
that chief procurement officer. An acting chief procurement
officer shall serve no later than the appointment of the
initial chief procurement officer pursuant to subsection (a) of
this Section. Nothing in this subsection shall prohibit the
Executive Ethics Commission from appointing an acting chief
procurement officer as a chief procurement officer.
(g) Transition schedule. Notwithstanding any other
provision of this Act or this amendatory Act of the 96th

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General Assembly, the chief procurement officers on the
effective date of Public Act 96-793 shall continue to serve as
chief procurement officers until August 31, 2010 and shall
retain their powers and duties pertaining to procurements,
provided the chief procurement officer appointed or approved by
the Executive Ethics Commission shall approve any rules
promulgated to implement this Code or the provisions of this
amendatory Act of the 96th General Assembly. The chief
procurement officers appointed or approved by the Executive
Ethics Commission shall assume the position of chief
procurement officer upon appointment and work in collaboration
with the current chief procurement officer and staff. On
September 1, 2010, the chief procurement officers appointed by
the Executive Ethics Commission shall assume the powers and
duties of the chief procurement officers.
(Source: P.A. 96-795, eff. 7-1-10 (see Section 5 of P.A. 96-793
for the effective date of P.A. 96-795).)
(30 ILCS 500/20-25)
(Text of Section before amendment by P.A. 96-795)
Sec. 20-25. Sole source procurements. In accordance with
standards set by rule, contracts may be awarded without use of
the specified method of source selection when there is only one
economically feasible source for the item. At least 2 weeks
before entering into a sole source contract, the purchasing
agency shall publish in the Illinois Procurement Bulletin a

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notice of intent to do so along with a description of the item
to be procured and the intended sole source contractor.
(Source: P.A. 90-572, eff. date - See Sec. 99-5.)
(Text of Section after amendment by P.A. 96-795)
Sec. 20-25. Sole source procurements.
(a) In accordance with standards set by rule, contracts may
be awarded without use of the specified method of source
selection when there is only one economically feasible source
for the item. A State contract may not be awarded as a sole
source procurement unless approved by the chief procurement
officer following a public hearing at which the chief
procurement officer and purchasing agency present written
justification for the procurement method. The Procurement
Policy Board and the public may present testimony.
(b) This Section may not be used as a basis for amending a
contract for professional or artistic services if the amendment
would result in an increase in the amount paid under the
contract of more than 5% of the initial award, or would extend
the contract term beyond the time reasonably needed for a
competitive procurement, not to exceed 2 months.
(c) Notice of intent to enter into a sole source contract
shall be provided to the Procurement Policy Board and published
in the online electronic Bulletin at least 14 days before the
public hearing required in subsection (a). The notice shall
include the sole source procurement justification form

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prescribed by the Board, a description of the item to be
procured, the intended sole source contractor, and the date,
time, and location of the public hearing. A copy of the notice
and all documents provided at the hearing shall be included in
the subsequent Procurement Bulletin.
(d) By August 1 each year, each chief procurement officer
shall file a report with the General Assembly identifying each
contract the officer sought under the sole source procurement
method and providing the justification given for seeking sole
source as the procurement method for each of those contracts.
(Source: P.A. 96-795, eff. 7-1-10 (see Section 5 of P.A. 96-793
for the effective date of changes made by P.A. 96-795).)
(30 ILCS 500/20-60)
Sec. 20-60. Duration of contracts.
(a) Maximum duration. A contract, other than a contract
entered into pursuant to the State University Certificates of
Participation Act, may be entered into for any period of time
deemed to be in the best interests of the State but not
exceeding 10 years inclusive, beginning January 1, 2010, of
proposed contract renewals. The length of a lease for real
property or capital improvements shall be in accordance with
the provisions of Section 40-25. A contract for bond or
mortgage insurance awarded by the Illinois Housing Development
Authority, however, may be entered into for any period of time
less than or equal to the maximum period of time that the

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subject bond or mortgage may remain outstanding.
(b) Subject to appropriation. All contracts made or entered
into shall recite that they are subject to termination and
cancellation in any year for which the General Assembly fails
to make an appropriation to make payments under the terms of
the contract.
(c) The chief procurement officer shall file a proposed
extension or renewal of a contract with the Procurement Policy
Board prior to entering into any extension or renewal if the
cost associated with the extension or renewal exceeds $249,999.
The Procurement Policy Board may object to the proposed
extension or renewal within 30 calendar days and require a
hearing before the Board prior to entering into the extension
or renewal. If the Procurement Policy Board does not object
within 30 calendar days or takes affirmative action to
recommend the extension or renewal, the chief procurement
officer may enter into the extension or renewal of a contract.
This subsection does not apply to any emergency procurement,
any procurement under Article 40, or any procurement exempted
by Section 1-10(b) of this Code. If any State agency contract
is paid for in whole or in part with federal-aid funds, grants,
or loans and the provisions of this subsection would result in
the loss of those federal-aid funds, grants, or loans, then the
contract is exempt from the provisions of this subsection in
order to remain eligible for those federal-aid funds, grants,
or loans, and the State agency shall file notice of this

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exemption with the Procurement Policy Board prior to entering
into the proposed extension or renewal. Nothing in this
subsection permits a chief procurement officer to enter into an
extension or renewal in violation of subsection (a). By August
1 each year, the Procurement Policy Board shall file a report
with the General Assembly identifying for the previous fiscal
year (i) the proposed extensions or renewals that were filed
with the Board and whether the Board objected and (ii) the
contracts exempt from this subsection.
(Source: P.A. 95-344, eff. 8-21-07; 96-15, eff. 6-22-09;
96-795, eff. 7-1-10 (see Section 5 of P.A. 96-793 for the
effective date of changes made by P.A. 96-795).)
(30 ILCS 500/20-120)
(This Section may contain text from a Public Act with a
delayed effective date)
Sec. 20-120. Subcontractors.
(a) Any contract granted under this Code shall state
whether the services of a subcontractor will or may be used.
The To the extent that the information is known, the contract
shall include the names and addresses of all known
subcontractors with subcontracts with an annual value of more
than $25,000 and the expected amount of money each will receive
under the contract. For procurements subject to the authority
of the chief procurement officer appointed pursuant to
subsection (a)(2) of Section 10-20, the contract shall include

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only the names and addresses of all known subcontractors of the
primary contractor with subcontracts with an annual value of
more than $25,000. The contractor shall provide the chief
procurement officer or State purchasing officer a copy of any
subcontract with an annual value of more than $25,000 so
identified within 20 days after the execution of the State
contract or after execution of the subcontract, whichever is
later. A subcontractor, or contractor on behalf of a
subcontractor, may identify information that is deemed
proprietary or confidential. If the chief procurement officer
determines the information is not relevant to the primary
contract, the chief procurement officer may excuse the
inclusion of the information. If the chief procurement officer
determines the information is proprietary or could harm the
business interest of the subcontractor, the chief procurement
officer may, in his or her discretion, redact the information.
Redacted information shall not become part of the public
record.
(b) If at any time during the term of a contract, a
contractor adds or changes any subcontractors, he or she shall
promptly notify, in writing, the chief procurement officer,
State purchasing officer, or their designee of the names and
addresses and the expected amount of money each new or replaced
subcontractor will receive. The contractor shall provide to the
responsible chief procurement officer a copy of the subcontract
within 20 days after the execution of the subcontract.

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(c) In addition to any other requirements of this Code, a
subcontract subject to this Section must include all of the
subcontractor's certifications required by Article 50 of the
Code.
(d) This Section applies to procurements solicited
executed on or after the effective date of this amendatory Act
of the 96th General Assembly.
(Source: P.A. 96-795, eff. 7-1-10 (see Section 5 of P.A. 96-793
for the effective date of P.A. 96-795).)
(30 ILCS 500/35-15)
Sec. 35-15. Prequalification.
(a) The chief procurement officer for matters other than
construction Director of Central Management Services, the
Illinois Power Agency, and the higher education chief
procurement officer shall each develop appropriate and
reasonable prequalification standards and categories of
professional and artistic services.
(b) The prequalifications and categorizations shall be
submitted to the Procurement Policy Board and published for
public comment prior to their submission to the Joint Committee
on Administrative Rules for approval.
(c) The chief procurement officer for matters other than
construction Director of Central Management Services, the
Illinois Power Agency, and the higher education chief
procurement officer shall each also assemble and maintain a

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comprehensive list of prequalified and categorized businesses
and persons.
(d) Prequalification shall not be used to bar or prevent
any qualified business or person for bidding or responding to
invitations for bid or proposal.
(Source: P.A. 95-481, eff. 8-28-07.)
(30 ILCS 500/35-20)
Sec. 35-20. Uniformity in procurement.
(a) The chief procurement officer for matters other than
construction Director of Central Management Services, the
Illinois Power Agency, and the higher education chief
procurement officer shall each develop, cause to be printed,
and distribute uniform documents for the solicitation, review,
and acceptance of all professional and artistic services.
(b) All chief procurement officers, State purchasing
officers, and their designees shall use the appropriate uniform
procedures and forms specified in this Code for all
professional and artistic services.
(c) These forms shall include in detail, in writing, at
least:
(1) a description of the goal to be achieved;
(2) the services to be performed;
(3) the need for the service;
(4) the qualifications that are necessary; and
(5) a plan for post-performance review.

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(Source: P.A. 95-481, eff. 8-28-07.)
(30 ILCS 500/35-25)
Sec. 35-25. Uniformity in contract.
(a) The chief procurement officer for matters other than
construction Director of Central Management Services, the
Illinois Power Agency, and the higher education chief
procurement officer shall each develop, cause to be printed,
and distribute uniform documents for the contracting of
professional and artistic services.
(b) All chief procurement officers, State purchasing
officers, and their designees shall use the appropriate uniform
contracts and forms in contracting for all professional and
artistic services.
(c) These contracts and forms shall include in detail, in
writing, at least:
(1) the detail listed in subsection (c) of Section
35-20;
(2) the duration of the contract, with a schedule of
delivery, when applicable;
(3) the method for charging and measuring cost (hourly,
per day, etc.);
(4) the rate of remuneration; and
(5) the maximum price.
(Source: P.A. 95-481, eff. 8-28-07.)

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(30 ILCS 500/35-30)
Sec. 35-30. Awards.
(a) All State contracts for professional and artistic
services, except as provided in this Section, shall be awarded
using the competitive request for proposal process outlined in
this Section.
(b) For each contract offered, the chief procurement
officer, State purchasing officer, or his or her designee shall
use the appropriate standard solicitation forms available from
the chief procurement officer for matters other than
construction Department of Central Management Services, the
Illinois Power Agency, or the higher education chief
procurement officer.
(c) Prepared forms shall be submitted to the chief
procurement officer for matters other than construction
Department of Central Management Services, the Illinois Power
Agency, or the higher education chief procurement officer,
whichever is appropriate, for publication in its Illinois
Procurement Bulletin and circulation to the chief procurement
officer for matters other than construction Department of
Central Management Services' or the higher education chief
procurement officer's list of prequalified vendors. Notice of
the offer or request for proposal shall appear at least 14 days
before the response to the offer is due.
(d) All interested respondents shall return their
responses to the chief procurement officer for matters other

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than construction Department of Central Management Services,
the Illinois Power Agency, or the higher education chief
procurement officer, whichever is appropriate, which shall
open and record them. The chief procurement officer for matters
other than construction Department or higher education chief
procurement officer then shall forward the responses, together
with any information it has available about the qualifications
and other State work of the respondents.
(e) After evaluation, ranking, and selection, the
responsible chief procurement officer, State purchasing
officer, or his or her designee shall notify the chief
procurement officer for matters other than construction
Department of Central Management Services, the Illinois Power
Agency, or the higher education chief procurement officer,
whichever is appropriate, of the successful respondent and
shall forward a copy of the signed contract for the chief
procurement officer for matters other than construction
Department's, Agency's, or higher education chief procurement
officer's file. The chief procurement officer for matters other
than construction Department, Agency, or higher education
chief procurement officer shall publish the names of the
responsible procurement decision-maker, the agency letting the
contract, the successful respondent, a contract reference, and
value of the let contract in the next appropriate volume of the
Illinois Procurement Bulletin.
(f) For all professional and artistic contracts with

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annualized value that exceeds $25,000, evaluation and ranking
by price are required. Any chief procurement officer or State
purchasing officer, but not their designees, may select an
offeror other than the lowest bidder by price. In any case,
when the contract exceeds the $25,000 threshold and the lowest
bidder is not selected, the chief procurement officer or the
State purchasing officer shall forward together with the
contract notice of who the low bidder was and a written
decision as to why another was selected to the chief
procurement officer for matters other than construction
Department of Central Management Services, the Illinois Power
Agency, or the higher education chief procurement officer,
whichever is appropriate. The chief procurement officer for
matters other than construction Department, Agency, or higher
education chief procurement officer shall publish as provided
in subsection (e) of Section 35-30, but shall include notice of
the chief procurement officer's or State purchasing officer's
written decision.
(g) The chief procurement officer for matters other than
construction Department of Central Management Services, the
Illinois Power Agency, and higher education chief procurement
officer may each refine, but not contradict, this Section by
promulgating rules for submission to the Procurement Policy
Board and then to the Joint Committee on Administrative Rules.
Any refinement shall be based on the principles and procedures
of the federal Architect-Engineer Selection Law, Public Law

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92-582 Brooks Act, and the Architectural, Engineering, and Land
Surveying Qualifications Based Selection Act; except that
pricing shall be an integral part of the selection process.
(Source: P.A. 95-331, eff. 8-21-07; 95-481, eff. 8-28-07.)
(30 ILCS 500/35-35)
Sec. 35-35. Exceptions.
(a) Exceptions to Section 35-30 are allowed for sole source
procurements, emergency procurements, and at the discretion of
the chief procurement officer or the State purchasing officer,
but not their designees, for professional and artistic
contracts that are nonrenewable, one year or less in duration,
and have a value of less than $20,000.
(b) All exceptions granted under this Article must still be
submitted to the chief procurement officer for matters other
than construction Department of Central Management Services,
the Illinois Power Agency, or the higher education chief
procurement officer, whichever is appropriate, and published
as provided for in subsection (f) of Section 35-30, shall name
the authorizing chief procurement officer or State purchasing
officer, and shall include a brief explanation of the reason
for the exception.
(Source: P.A. 95-481, eff. 8-28-07.)
(30 ILCS 500/35-40)
Sec. 35-40. Subcontractors.

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(a) Any contract granted under this Article shall state
whether the services of a subcontractor will be used. The
contract shall include the names and addresses of all
subcontractors and the expected amount of money each will
receive under the contract.
(b) If at any time during the term of a contract, a
contractor adds or changes any subcontractors, he or she shall
promptly notify, in writing, the chief procurement officer for
matters other than construction Department of Central
Management Services, the Illinois Power Agency, or the higher
education chief procurement officer, whichever is appropriate,
and the responsible chief procurement officer, State
purchasing officer, or their designee of the names and
addresses and the expected amount of money each new or replaced
subcontractor will receive.
(Source: P.A. 95-481, eff. 8-28-07.)
(30 ILCS 500/40-15)
Sec. 40-15. Method of source selection.
(a) Request for information. Except as provided in
subsections (b) and (c), all State contracts for leases of real
property or capital improvements shall be awarded by a request
for information process in accordance with Section 40-20.
(b) Other methods. A request for information process need
not be used in procuring any of the following leases:
(1) Property of less than 10,000 square feet with rent

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of less than $100,000 per year.
(2) (Blank) Rent of less than $100,000 per year.
(3) Duration of less than one year that cannot be
renewed.
(4) Specialized space available at only one location.
(5) Renewal or extension of a lease; provided that: (i)
the chief procurement officer determines in writing that
the renewal or extension is in the best interest of the
State; (ii) the chief procurement officer submits his or
her written determination and the renewal or extension to
the Board; (iii) the Board does not object in writing to
the renewal or extension within 30 days after its
submission; and (iv) the chief procurement officer
publishes the renewal or extension in the appropriate
volume of the Procurement Bulletin.
(c) Leases with governmental units. Leases with other
governmental units may be negotiated without using the request
for information process when deemed by the chief procurement
officer to be in the best interest of the State.
(Source: P.A. 95-647, eff. 10-11-07.)
(30 ILCS 500/50-10.5)
(Text of Section before amendment by P.A. 96-795)
Sec. 50-10.5. Prohibited bidders and contractors.
(a) Unless otherwise provided, no business shall bid or
enter into a contract with the State of Illinois or any State

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agency if the business or any officer, director, partner, or
other managerial agent of the business has been convicted of a
felony under the Sarbanes-Oxley Act of 2002 or a Class 3 or
Class 2 felony under the Illinois Securities Law of 1953 for a
period of 5 years from the date of conviction.
(b) Every bid submitted to and contract executed by the
State shall contain a certification by the bidder or contractor
that the contractor is not barred from being awarded a contract
under this Section and that the contractor acknowledges that
the contracting State agency shall declare the contract void if
the certification completed pursuant to this subsection (b) is
false.
(c) If a business is not a natural person, the prohibition
in subsection (a) applies only if:
(1) the business itself is convicted of a felony
referenced in subsection (a); or
(2) the business is ordered to pay punitive damages
based on the conduct of any officer, director, partner, or
other managerial agent who has been convicted of a felony
referenced in subsection (a).
(d) A natural person who is convicted of a felony
referenced in subsection (a) remains subject to Section 50-10.
(Source: P.A. 93-600, eff. 1-1-04.)
(Text of Section after amendment by P.A. 96-795)
Sec. 50-10.5. Prohibited bidders and contractors.

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(a) Unless otherwise provided, no business shall bid or
enter into a contract or subcontract under this Code if the
business or any officer, director, partner, or other managerial
agent of the business has been convicted of a felony under the
Sarbanes-Oxley Act of 2002 or a Class 3 or Class 2 felony under
the Illinois Securities Law of 1953 for a period of 5 years
from the date of conviction.
(b) Every bid submitted to and contract executed by the
State and every subcontract subject to Section 20-120 of this
Code shall contain a certification by the bidder, contractor,
or subcontractor, respectively, that the bidder, contractor,
or subcontractor is not barred from being awarded a contract or
subcontract under this Section and acknowledges that the chief
procurement officer shall declare the related contract void if
any of the certifications completed pursuant to this subsection
(b) are false.
(c) If a business is not a natural person, the prohibition
in subsection (a) applies only if:
(1) the business itself is convicted of a felony
referenced in subsection (a); or
(2) the business is ordered to pay punitive damages
based on the conduct of any officer, director, partner, or
other managerial agent who has been convicted of a felony
referenced in subsection (a).
(d) A natural person who is convicted of a felony
referenced in subsection (a) remains subject to Section 50-10.

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(e) No person or business shall bid or enter into a
contract under this Code if the person or business:
(1) assisted the State of Illinois or a State agency in
determining whether there is a need for a contract except
as part of a response to a publicly issued request for
information; or
(2) assisted the State of Illinois or a State agency by
reviewing, drafting, or preparing any invitation for bids,
a request for proposal, proposals or request for
information or provided similar assistance except as part
of a publicly issued opportunity to review drafts of all or
part of these documents.
This subsection does not prohibit a person or business from
submitting a bid or proposal or entering into a contract if the
person or business: (i) initiates a communication to provide
general information about products, services, or industry best
practices and, if applicable, that communication is documented
in accordance with Section 50-39 or (ii) responds to a
communication initiated by an employee of the State for the
purposes of providing information to evaluate new products,
trends, services, or technologies.
For purposes of this subsection (e), "business" includes
all individuals with whom a business is affiliated, including,
but not limited to, any officer, agent, employee, consultant,
independent contractor, director, partner, manager, or
shareholder of a business.

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(Source: P.A. 96-795, eff. 7-1-10 (see Section 5 of P.A. 96-793
for the effective date of changes made by P.A. 96-795).)
(30 ILCS 500/50-35)
(Text of Section before amendment by P.A. 96-795)
Sec. 50-35. Disclosure and potential conflicts of
interest.
(a) All offers from responsive bidders or offerors with an
annual value of more than $10,000 shall be accompanied by
disclosure of the financial interests of the contractor,
bidder, or proposer. The financial disclosure of each
successful bidder or offeror shall become part of the publicly
available contract or procurement file maintained by the
appropriate chief procurement officer.
(b) Disclosure by the responsive bidders or offerors shall
include any ownership or distributive income share that is in
excess of 5%, or an amount greater than 60% of the annual
salary of the Governor, of the bidding entity or its parent
entity, whichever is less, unless the contractor or bidder (i)
is a publicly traded entity subject to Federal 10K reporting,
in which case it may submit its 10K disclosure in place of the
prescribed disclosure, or (ii) is a privately held entity that
is exempt from Federal 10k reporting but has more than 400
shareholders, in which case it may submit the information that
Federal 10k reporting companies are required to report under 17
CFR 229.401 and list the names of any person or entity holding

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any ownership share that is in excess of 5% in place of the
prescribed disclosure. The form of disclosure shall be
prescribed by the applicable chief procurement officer and must
include at least the names, addresses, and dollar or
proportionate share of ownership of each person identified in
this Section, their instrument of ownership or beneficial
relationship, and notice of any potential conflict of interest
resulting from the current ownership or beneficial
relationship of each person identified in this Section having
in addition any of the following relationships:
(1) State employment, currently or in the previous 3
years, including contractual employment of services.
(2) State employment of spouse, father, mother, son, or
daughter, including contractual employment for services in
the previous 2 years.
(3) Elective status; the holding of elective office of
the State of Illinois, the government of the United States,
any unit of local government authorized by the Constitution
of the State of Illinois or the statutes of the State of
Illinois currently or in the previous 3 years.
(4) Relationship to anyone holding elective office
currently or in the previous 2 years; spouse, father,
mother, son, or daughter.
(5) Appointive office; the holding of any appointive
government office of the State of Illinois, the United
States of America, or any unit of local government

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authorized by the Constitution of the State of Illinois or
the statutes of the State of Illinois, which office
entitles the holder to compensation in excess of expenses
incurred in the discharge of that office currently or in
the previous 3 years.
(6) Relationship to anyone holding appointive office
currently or in the previous 2 years; spouse, father,
mother, son, or daughter.
(7) Employment, currently or in the previous 3 years,
as or by any registered lobbyist of the State government.
(8) Relationship to anyone who is or was a registered
lobbyist in the previous 2 years; spouse, father, mother,
son, or daughter.
(9) Compensated employment, currently or in the
previous 3 years, by any registered election or re-election
committee registered with the Secretary of State or any
county clerk in the State of Illinois, or any political
action committee registered with either the Secretary of
State or the Federal Board of Elections.
(10) Relationship to anyone; spouse, father, mother,
son, or daughter; who is or was a compensated employee in
the last 2 years of any registered election or re-election
committee registered with the Secretary of State or any
county clerk in the State of Illinois, or any political
action committee registered with either the Secretary of
State or the Federal Board of Elections.

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(c) The disclosure in subsection (b) is not intended to
prohibit or prevent any contract. The disclosure is meant to
fully and publicly disclose any potential conflict to the chief
procurement officers, State purchasing officers, their
designees, and executive officers so they may adequately
discharge their duty to protect the State.
(d) In the case of any contract for personal services in
excess of $50,000; any contract competitively bid in excess of
$250,000; any other contract in excess of $50,000; when a
potential for a conflict of interest is identified, discovered,
or reasonably suspected it shall be reviewed and commented on
in writing by the Governor of the State of Illinois, or by an
executive ethics board or commission he or she might designate.
The comment shall be returned to the responsible chief
procurement officer who must rule in writing whether to void or
allow the contract, bid, offer, or proposal weighing the best
interest of the State of Illinois. The comment and
determination shall become a publicly available part of the
contract, bid, or proposal file.
(e) These thresholds and disclosure do not relieve the
chief procurement officer, the State purchasing officer, or
their designees from reasonable care and diligence for any
contract, bid, offer, or proposal. The chief procurement
officer, the State purchasing officer, or their designees shall
be responsible for using any reasonably known and publicly
available information to discover any undisclosed potential

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conflict of interest and act to protect the best interest of
the State of Illinois.
(f) Inadvertent or accidental failure to fully disclose
shall render the contract, bid, proposal, or relationship
voidable by the chief procurement officer if he or she deems it
in the best interest of the State of Illinois and, at his or
her discretion, may be cause for barring from future contracts,
bids, proposals, or relationships with the State for a period
of up to 2 years.
(g) Intentional, willful, or material failure to disclose
shall render the contract, bid, proposal, or relationship
voidable by the chief procurement officer if he or she deems it
in the best interest of the State of Illinois and shall result
in debarment from future contracts, bids, proposals, or
relationships for a period of not less than 2 years and not
more than 10 years. Reinstatement after 2 years and before 10
years must be reviewed and commented on in writing by the
Governor of the State of Illinois, or by an executive ethics
board or commission he or she might designate. The comment
shall be returned to the responsible chief procurement officer
who must rule in writing whether and when to reinstate.
(h) In addition, all disclosures shall note any other
current or pending contracts, proposals, leases, or other
ongoing procurement relationships the bidding, proposing, or
offering entity has with any other unit of State government and
shall clearly identify the unit and the contract, proposal,

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lease, or other relationship.
(Source: P.A. 95-331, eff. 8-21-07.)
(Text of Section after amendment by P.A. 96-795)
Sec. 50-35. Financial disclosure and potential conflicts
of interest.
(a) All offers from responsive bidders or offerors with an
annual value of more than $25,000 $10,000, and all subcontracts
identified as , copies of which must be provided by Section
20-120 of this Code, shall be accompanied by disclosure of the
financial interests of the contractor, bidder, or proposer and
each subcontractor to be used. The financial disclosure of each
successful bidder or offeror and its subcontractors shall be
incorporated as a material term of the contract and shall
become part of the publicly available contract or procurement
file maintained by the appropriate chief procurement officer.
Each disclosure under this Section and Section 50-34 shall be
signed and made under penalty of perjury by an authorized
officer or employee on behalf of the bidder or offeror, and
must be filed with the Procurement Policy Board.
(b) Disclosure shall include any ownership or distributive
income share that is in excess of 5%, or an amount greater than
60% of the annual salary of the Governor, of the disclosing
entity or its parent entity, whichever is less, unless the
contractor, bidder, or subcontractor (i) is a publicly traded
entity subject to Federal 10K reporting, in which case it may

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submit its 10K disclosure in place of the prescribed
disclosure, or (ii) is a privately held entity that is exempt
from Federal 10k reporting but has more than 400 shareholders,
in which case it may submit the information that Federal 10k
reporting companies are required to report under 17 CFR 229.401
and list the names of any person or entity holding any
ownership share that is in excess of 5% in place of the
prescribed disclosure. The form of disclosure shall be
prescribed by the applicable chief procurement officer and must
include at least the names, addresses, and dollar or
proportionate share of ownership of each person identified in
this Section, their instrument of ownership or beneficial
relationship, and notice of any potential conflict of interest
resulting from the current ownership or beneficial
relationship of each person identified in this Section having
in addition any of the following relationships:
(1) State employment, currently or in the previous 3
years, including contractual employment of services.
(2) State employment of spouse, father, mother, son, or
daughter, including contractual employment for services in
the previous 2 years.
(3) Elective status; the holding of elective office of
the State of Illinois, the government of the United States,
any unit of local government authorized by the Constitution
of the State of Illinois or the statutes of the State of
Illinois currently or in the previous 3 years.

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(4) Relationship to anyone holding elective office
currently or in the previous 2 years; spouse, father,
mother, son, or daughter.
(5) Appointive office; the holding of any appointive
government office of the State of Illinois, the United
States of America, or any unit of local government
authorized by the Constitution of the State of Illinois or
the statutes of the State of Illinois, which office
entitles the holder to compensation in excess of expenses
incurred in the discharge of that office currently or in
the previous 3 years.
(6) Relationship to anyone holding appointive office
currently or in the previous 2 years; spouse, father,
mother, son, or daughter.
(7) Employment, currently or in the previous 3 years,
as or by any registered lobbyist of the State government.
(8) Relationship to anyone who is or was a registered
lobbyist in the previous 2 years; spouse, father, mother,
son, or daughter.
(9) Compensated employment, currently or in the
previous 3 years, by any registered election or re-election
committee registered with the Secretary of State or any
county clerk in the State of Illinois, or any political
action committee registered with either the Secretary of
State or the Federal Board of Elections.
(10) Relationship to anyone; spouse, father, mother,

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son, or daughter; who is or was a compensated employee in
the last 2 years of any registered election or re-election
committee registered with the Secretary of State or any
county clerk in the State of Illinois, or any political
action committee registered with either the Secretary of
State or the Federal Board of Elections.
(b-1) The disclosure required under this Section must also
include the name and address of each lobbyist required to
register under the Lobbyist Registration Act and other agent of
the bidder or offeror who is not identified under subsections
(a) and (b) and who has communicated, is communicating, or may
communicate with any State officer or employee concerning the
bid or offer. The disclosure under this subsection is a
continuing obligation and must be promptly supplemented for
accuracy throughout the process and throughout the term of the
contract if the bid or offer is successful.
(b-2) The disclosure required under this Section must also
include, for each of the persons identified in subsection (b)
or (b-1), each of the following that occurred within the
previous 10 years: debarment from contracting with any
governmental entity; professional licensure discipline;
bankruptcies; adverse civil judgments and administrative
findings; and criminal felony convictions. The disclosure
under this subsection is a continuing obligation and must be
promptly supplemented for accuracy throughout the process and
throughout the term of the contract if the bid or offer is

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successful.
(c) The disclosure in subsection (b) is not intended to
prohibit or prevent any contract. The disclosure is meant to
fully and publicly disclose any potential conflict to the chief
procurement officers, State purchasing officers, their
designees, and executive officers so they may adequately
discharge their duty to protect the State.
(d) When a potential for a conflict of interest is
identified, discovered, or reasonably suspected, the chief
procurement officer or State procurement officer shall send the
contract to the Procurement Policy Board. The Board shall
recommend, in writing, whether to allow or void the contract,
bid, offer, or subcontract weighing the best interest of the
State of Illinois. All recommendations shall be submitted to
the chief procurement officer. The chief procurement officer
must hold a public hearing if the Procurement Policy Board
makes a recommendation to (i) void a contract or (ii) void a
bid or offer and the chief procurement officer selected or
intends to award the contract to the bidder or offeror. A chief
procurement officer is prohibited from awarding a contract
before a hearing if the Board recommendation does not support a
bid or offer. The recommendation and proceedings of any
hearing, if applicable, shall become part of the contract, bid,
or proposal file and shall be available to the public.
(e) These thresholds and disclosure do not relieve the
chief procurement officer, the State purchasing officer, or

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their designees from reasonable care and diligence for any
contract, bid, offer, or proposal. The chief procurement
officer, the State purchasing officer, or their designees shall
be responsible for using any reasonably known and publicly
available information to discover any undisclosed potential
conflict of interest and act to protect the best interest of
the State of Illinois.
(f) Inadvertent or accidental failure to fully disclose
shall render the contract, bid, proposal, subcontract, or
relationship voidable by the chief procurement officer if he or
she deems it in the best interest of the State of Illinois and,
at his or her discretion, may be cause for barring from future
contracts, bids, proposals, subcontracts, or relationships
with the State for a period of up to 2 years.
(g) Intentional, willful, or material failure to disclose
shall render the contract, bid, proposal, subcontract, or
relationship voidable by the chief procurement officer if he or
she deems it in the best interest of the State of Illinois and
shall result in debarment from future contracts, bids,
proposals, subcontracts, or relationships for a period of not
less than 2 years and not more than 10 years. Reinstatement
after 2 years and before 10 years must be reviewed and
commented on in writing by the Governor of the State of
Illinois, or by an executive ethics board or commission he or
she might designate. The comment shall be returned to the
responsible chief procurement officer who must rule in writing

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whether and when to reinstate.
(h) In addition, all disclosures shall note any other
current or pending contracts, proposals, subcontracts, leases,
or other ongoing procurement relationships the bidding,
proposing, offering, or subcontracting entity has with any
other unit of State government and shall clearly identify the
unit and the contract, proposal, lease, or other relationship.
(i) The contractor or bidder has a continuing obligation to
supplement the disclosure required by this Section throughout
the bidding process or during the term of any contract.
(Source: P.A. 95-331, eff. 8-21-07; 96-795, eff. 7-1-10 (see
Section 5 of P.A. 96-793 for the effective date of changes made
by P.A. 96-795).)
(30 ILCS 500/50-38)
(This Section may contain text from a Public Act with a
delayed effective date)
Sec. 50-38. Lobbying restrictions.
(a) A person or business that is let or awarded a contract
is not entitled to receive any payment, compensation, or other
remuneration from the State to compensate the person or
business for any expenses related to travel, lodging, or meals
that are paid by the person or business to any officer, agent,
employee, consultant, independent contractor, director,
partner, manager, or shareholder.
(b) Any bidder or offeror on a State contract that hires a

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person required to register under the Lobbyist Registration Act
to assist in obtaining a contract shall (i) disclose all costs,
fees, compensation, reimbursements, and other remunerations
paid or to be paid to the lobbyist related to the contract,
(ii) not bill or otherwise cause the State of Illinois to pay
for any of the lobbyist's costs, fees, compensation,
reimbursements, or other remuneration, and (iii) sign a
verification certifying that none of the lobbyist's costs,
fees, compensation, reimbursements, or other remuneration were
billed to the State. This information, along with all
supporting documents, shall be filed with the agency awarding
the contract and with the Secretary of State. The chief
procurement officer shall post this information, together with
the contract award notice, in the online Procurement Bulletin.
(c) Ban on contingency fee. No person or entity shall
retain a person or entity required to register under the
Lobbyist Registration Act to attempt to influence the outcome
of a procurement decision made under this Code for compensation
contingent in whole or in part upon the decision or
procurement. Any person who violates this subsection is guilty
of a business offense and shall be fined not more than $10,000.
(Source: P.A. 96-795, eff. 7-1-10 (see Section 5 of P.A. 96-793
for the effective date of P.A. 96-795).)
(30 ILCS 500/50-39)
(This Section may contain text from a Public Act with a

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delayed effective date)
Sec. 50-39. Procurement communications reporting
requirement.
(a) Any written or oral communication received by a State
employee that imparts or requests material information or makes
a material argument regarding potential action concerning a
procurement matter, including, but not limited to, an
application, a contract, or a project, shall be reported to the
Procurement Policy Board. These communications do not include
the following: (i) statements by a person publicly made in a
public forum; (ii) statements regarding matters of procedure
and practice, such as format, the number of copies required,
the manner of filing, and the status of a matter; and (iii)
statements made by a State employee of the agency to the agency
head or other employees of that agency or to the employees of
the Executive Ethics Commission. The provisions of this Section
shall not apply to communications regarding the administration
and implementation of an existing contract, except
communications regarding change orders or the renewal or
extension of a contract.
(b) The report required by subsection (a) shall be
submitted monthly and include at least the following: (i) the
date and time of each communication; (ii) the identity of each
person from whom the written or oral communication was
received, the individual or entity represented by that person,
and any action the person requested or recommended; (iii) the

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identity and job title of the person to whom each communication
was made; (iv) if a response is made, the identity and job
title of the person making each response; (v) a detailed
summary of the points made by each person involved in the
communication; (vi) the duration of the communication; (vii)
the location or locations of all persons involved in the
communication and, if the communication occurred by telephone,
the telephone numbers for the callers and recipients of the
communication; and (viii) any other pertinent information.
(c) Additionally, when an oral communication made by a
person required to register under the Lobbyist Registration Act
is received by a State employee that is covered under this
Section, all individuals who initiate or participate in the
oral communication shall submit a written report to that State
employee that memorializes the communication and includes, but
is not limited to, the items listed in subsection (b).
(d) The Procurement Policy Board shall make each report
submitted pursuant to this Section available on its website
within 7 days after its receipt of the report. The Procurement
Policy Board may promulgate rules to ensure compliance with
this Section.
(e) The reporting requirements shall also be conveyed
through ethics training under the State Employees and Officials
Ethics Act. An employee who knowingly and intentionally
violates this Section shall be subject to suspension or
discharge. The Executive Ethics Commission shall promulgate

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rules, including emergency rules, to implement this Section.
(f) This Section becomes operative on January 1, 2011.
(Source: P.A. 96-795, eff. 7-1-10 (see Section 5 of P.A. 96-793
for the effective date of changes made by P.A. 96-795).)
Section 95. No acceleration or delay. Where this Act makes
changes in a statute that is represented in this Act by text
that is not yet or no longer in effect (for example, a Section
represented by multiple versions), the use of that text does
not accelerate or delay the taking effect of (i) the changes
made by this Act or (ii) provisions derived from any other
Public Act.
Section 99. Effective date. This Act takes effect July 1,
2010.