103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB2326 Introduced , by Rep. La Shawn K. Ford SYNOPSIS AS INTRODUCED: 30 ILCS 500/1-13 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. LRB103 27383 RJT 53755 b A BILL FOR 103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB2326 Introduced , by Rep. La Shawn K. Ford SYNOPSIS AS INTRODUCED: 30 ILCS 500/1-13 30 ILCS 500/1-13 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. LRB103 27383 RJT 53755 b LRB103 27383 RJT 53755 b A BILL FOR 103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB2326 Introduced , by Rep. La Shawn K. Ford SYNOPSIS AS INTRODUCED: 30 ILCS 500/1-13 30 ILCS 500/1-13 30 ILCS 500/1-13 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. LRB103 27383 RJT 53755 b LRB103 27383 RJT 53755 b LRB103 27383 RJT 53755 b A BILL FOR HB2326LRB103 27383 RJT 53755 b HB2326 LRB103 27383 RJT 53755 b HB2326 LRB103 27383 RJT 53755 b 1 AN ACT concerning finance. 2 Be it enacted by the People of the State of Illinois, 3 represented in the General Assembly: 4 Section 5. The Illinois Procurement Code is amended by 5 changing Section 1-13 as follows: 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. 103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB2326 Introduced , by Rep. La Shawn K. Ford SYNOPSIS AS INTRODUCED: 30 ILCS 500/1-13 30 ILCS 500/1-13 30 ILCS 500/1-13 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. LRB103 27383 RJT 53755 b LRB103 27383 RJT 53755 b LRB103 27383 RJT 53755 b A BILL FOR 30 ILCS 500/1-13 LRB103 27383 RJT 53755 b HB2326 LRB103 27383 RJT 53755 b HB2326- 2 -LRB103 27383 RJT 53755 b HB2326 - 2 - LRB103 27383 RJT 53755 b HB2326 - 2 - LRB103 27383 RJT 53755 b 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 HB2326 - 2 - LRB103 27383 RJT 53755 b HB2326- 3 -LRB103 27383 RJT 53755 b HB2326 - 3 - LRB103 27383 RJT 53755 b HB2326 - 3 - LRB103 27383 RJT 53755 b 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 HB2326 - 3 - LRB103 27383 RJT 53755 b HB2326- 4 -LRB103 27383 RJT 53755 b HB2326 - 4 - LRB103 27383 RJT 53755 b HB2326 - 4 - LRB103 27383 RJT 53755 b 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 HB2326 - 4 - LRB103 27383 RJT 53755 b HB2326- 5 -LRB103 27383 RJT 53755 b HB2326 - 5 - LRB103 27383 RJT 53755 b HB2326 - 5 - LRB103 27383 RJT 53755 b 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 HB2326 - 5 - LRB103 27383 RJT 53755 b HB2326- 6 -LRB103 27383 RJT 53755 b HB2326 - 6 - LRB103 27383 RJT 53755 b HB2326 - 6 - LRB103 27383 RJT 53755 b 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 HB2326 - 6 - LRB103 27383 RJT 53755 b HB2326- 7 -LRB103 27383 RJT 53755 b HB2326 - 7 - LRB103 27383 RJT 53755 b HB2326 - 7 - LRB103 27383 RJT 53755 b 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 HB2326 - 7 - LRB103 27383 RJT 53755 b HB2326- 8 -LRB103 27383 RJT 53755 b HB2326 - 8 - LRB103 27383 RJT 53755 b HB2326 - 8 - LRB103 27383 RJT 53755 b 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). 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 HB2326 - 8 - LRB103 27383 RJT 53755 b HB2326- 9 -LRB103 27383 RJT 53755 b HB2326 - 9 - LRB103 27383 RJT 53755 b HB2326 - 9 - LRB103 27383 RJT 53755 b 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 HB2326 - 9 - LRB103 27383 RJT 53755 b HB2326- 10 -LRB103 27383 RJT 53755 b HB2326 - 10 - LRB103 27383 RJT 53755 b HB2326 - 10 - LRB103 27383 RJT 53755 b 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.) HB2326 - 10 - LRB103 27383 RJT 53755 b