HB2878 EnrolledLRB103 30786 RJT 57276 b HB2878 Enrolled LRB103 30786 RJT 57276 b HB2878 Enrolled LRB103 30786 RJT 57276 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 ARTICLE 5. FORMER COAL MINE EMPLOYEE PREFERENCE 5 Section 5-5. The Illinois Procurement Code is amended by 6 adding Section 45-110 as follows: 7 (30 ILCS 500/45-110 new) 8 Sec. 45-110. Former coal mining employees. 9 (a) In this Section: 10 "Abandoned mined land reclamation project" means 11 construction or construction-related professional services 12 that are used for reclamation projects awarded by the 13 Department of Natural Resources under the Abandoned Mined 14 Lands and Water Reclamation Act. 15 "Former coal mine employee" means an individual previously 16 employed in any capacity by a coal mining company that engaged 17 in the extraction of coal deposits or an individual previously 18 employed in any capacity by a coal-fired power plant. 19 (b) In awarding contracts for Abandoned Mined Land 20 Reclamation Projects with a total value of more than $100,000, 21 preference shall be given to an otherwise qualified bidder 22 who: HB2878 Enrolled LRB103 30786 RJT 57276 b HB2878 Enrolled- 2 -LRB103 30786 RJT 57276 b HB2878 Enrolled - 2 - LRB103 30786 RJT 57276 b HB2878 Enrolled - 2 - LRB103 30786 RJT 57276 b 1 (1) provides proof that at least 2 current employees 2 of the bidder are former coal mine employees and that all 3 such declared former coal mine employees in the bid shall 4 be used in the fulfillment of an awarded Abandoned Mined 5 Land Reclamation Project; or 6 (2) commits to employing at least 2 former coal mine 7 employees hired in fulfillment of the Abandoned Mined Land 8 Reclamation Project. Under this paragraph (2), the bidder 9 shall provide proof that at least 2 former coal mine 10 employees have been hired within 60 days after the start 11 of construction, and the bidder shall declare that the 12 former coal mine employees, after being hired, shall be 13 used in the fulfillment of an awarded Abandoned Mined Land 14 Reclamation Project. 15 When the Department of Natural Resources is to award a 16 contract to the lowest responsible bidder, an otherwise 17 qualified bidder who will fulfill the contract through the use 18 of former coal mine employees may be given preference over 19 other bidders unable to do so, if the bid is not more than 2% 20 greater than the low bid. 21 (c) This Section does not apply to any contract for any 22 project for which federal funds are available for expenditure 23 when its provisions may be in conflict with federal law or 24 federal regulation. 25 ARTICLE 10. SINGLE PRIME PROCUREMENT HB2878 Enrolled - 2 - LRB103 30786 RJT 57276 b HB2878 Enrolled- 3 -LRB103 30786 RJT 57276 b HB2878 Enrolled - 3 - LRB103 30786 RJT 57276 b HB2878 Enrolled - 3 - LRB103 30786 RJT 57276 b 1 Section 10-5. The Illinois Procurement Code is amended by 2 changing Sections 1-15.93, 30-30, 33-5, and 45-105 as follows: 3 (30 ILCS 500/1-15.93) 4 (Section scheduled to be repealed on January 1, 2026) 5 Sec. 1-15.93. Single prime. "Single prime" means the 6 design-bid-build procurement delivery method for a building 7 construction project in which the Capital Development Board or 8 a public institution of higher education, as defined in 9 Section 1-13 of this Code, is the construction agency 10 procuring 2 or more subdivisions of work enumerated in 11 paragraphs (1) through (5) of subsection (a) of Section 30-30 12 of this Code under a single contract. The provisions of this 13 Section are inoperative for public institutions of higher 14 education on and after January 1, 2026. This Section is 15 repealed on January 1, 2026. 16 (Source: P.A. 101-369, eff. 12-15-19; 101-645, eff. 6-26-20; 17 102-671, eff. 11-30-21; 102-1119, eff. 1-23-23.) 18 (30 ILCS 500/30-30) 19 Sec. 30-30. Design-bid-build construction. 20 (a) The provisions of this subsection are operative 21 through December 31, 2025. 22 Except as provided in subsection (a-5), for building 23 construction contracts in excess of $250,000, separate HB2878 Enrolled - 3 - LRB103 30786 RJT 57276 b HB2878 Enrolled- 4 -LRB103 30786 RJT 57276 b HB2878 Enrolled - 4 - LRB103 30786 RJT 57276 b HB2878 Enrolled - 4 - LRB103 30786 RJT 57276 b 1 specifications may be prepared for all equipment, labor, and 2 materials in connection with the following 5 subdivisions of 3 the work to be performed: 4 (1) plumbing; 5 (2) heating, piping, refrigeration, and automatic 6 temperature control systems, including the testing and 7 balancing of those systems; 8 (3) ventilating and distribution systems for 9 conditioned air, including the testing and balancing of 10 those systems; 11 (4) electric wiring; and 12 (5) general contract work. 13 Except as provided in subsection (a-5), the specifications 14 may be so drawn as to permit separate and independent bidding 15 upon each of the 5 subdivisions of work. All contracts awarded 16 for any part thereof may award the 5 subdivisions of work 17 separately to responsible and reliable persons, firms, or 18 corporations engaged in these classes of work. The contracts, 19 at the discretion of the construction agency, may be assigned 20 to the successful bidder on the general contract work or to the 21 successful bidder on the subdivision of work designated by the 22 construction agency before the bidding as the prime 23 subdivision of work, provided that all payments will be made 24 directly to the contractors for the 5 subdivisions of work 25 upon compliance with the conditions of the contract. 26 For Beginning on the effective date of this amendatory Act HB2878 Enrolled - 4 - LRB103 30786 RJT 57276 b HB2878 Enrolled- 5 -LRB103 30786 RJT 57276 b HB2878 Enrolled - 5 - LRB103 30786 RJT 57276 b HB2878 Enrolled - 5 - LRB103 30786 RJT 57276 b 1 of the 101st General Assembly and through December 31, 2025, 2 for single prime projects: (i) the bid of the successful low 3 bidder shall identify the name of the subcontractor, if any, 4 and the bid proposal costs for each of the 5 subdivisions of 5 work set forth in this Section; (ii) the contract entered into 6 with the successful bidder shall provide that no identified 7 subcontractor may be terminated without the written consent of 8 the Capital Development Board; (iii) the contract shall comply 9 with the disadvantaged business practices of the Business 10 Enterprise for Minorities, Women, and Persons with 11 Disabilities Act and the equal employment practices of Section 12 2-105 of the Illinois Human Rights Act; and (iv) the Capital 13 Development Board shall submit an annual report to the General 14 Assembly and Governor on the bidding, award, and performance 15 of all single prime projects. 16 Until December 31, 2023, for For building construction 17 projects with a total construction cost valued at $5,000,000 18 or less, the Capital Development Board shall not use the 19 single prime procurement delivery method for more than 50% of 20 the total number of projects bid for each fiscal year. Until 21 December 31, 2023, any Any project with a total construction 22 cost valued greater than $5,000,000 may be bid using single 23 prime at the discretion of the Executive Director of the 24 Capital Development Board. 25 For contracts entered into on or after January 1, 2024, 26 the Capital Development Board shall determine whether the HB2878 Enrolled - 5 - LRB103 30786 RJT 57276 b HB2878 Enrolled- 6 -LRB103 30786 RJT 57276 b HB2878 Enrolled - 6 - LRB103 30786 RJT 57276 b HB2878 Enrolled - 6 - LRB103 30786 RJT 57276 b 1 single prime procurement delivery method is to be pursued. 2 Before electing to use single prime on a project, the Capital 3 Development Board must make a written determination that must 4 include a description as to the particular advantages of the 5 single prime procurement method for that project and an 6 evaluation of the items in paragraphs (1) through (4). The 7 chief procurement officer must review the Capital Development 8 Board's determination and consider the adequacy of information 9 in paragraphs (1) through (4) to determine whether the Capital 10 Development Board may proceed with single prime. Approval by 11 the chief procurement officer shall not be unreasonably 12 withheld. The following factors must be considered by the 13 chief procurement officer in any determination: 14 (1) The benefit that using the single prime 15 procurement method will have on the Capital Development 16 Board's ability to increase participation of 17 minority-owned firms, woman-owned firms, firms owned by 18 persons with a disability, and veteran-owned firms. 19 (2) The likelihood that single prime will be in the 20 best interest of the State by providing a material savings 21 of time or cost over the multiple prime delivery system. 22 The best interest of the State justification must show the 23 specific benefits of using the single prime method, 24 including documentation of the estimates or scheduling 25 impacts of any of the following: project complexity and 26 trade coordination required, length of project, HB2878 Enrolled - 6 - LRB103 30786 RJT 57276 b HB2878 Enrolled- 7 -LRB103 30786 RJT 57276 b HB2878 Enrolled - 7 - LRB103 30786 RJT 57276 b HB2878 Enrolled - 7 - LRB103 30786 RJT 57276 b 1 availability of skilled workforce, geographic area, 2 project timelines, project budget, ability to secure 3 minority, women, persons with disabilities and veteran 4 participation, or other information. 5 (3) The type and size of the project and its 6 suitability to the single prime procurement method. 7 (4) Whether the project will comply with the 8 underrepresented business and equal employment practices 9 of the State, as established in the Business Enterprise 10 for Minorities, Women, and Persons with Disabilities Act, 11 Section 45-57 of this Code, and Section 2-105 of the 12 Illinois Human Rights Act. 13 If the chief procurement officer finds that the Capital 14 Development Board's written determination is insufficient, the 15 Capital Development Board shall have the opportunity to cure 16 its determination. Within 15 days of receiving approval from 17 the chief procurement officer, the Capital Development Board 18 shall provide an advisory copy of the written determination to 19 the Procurement Policy Board and the Commission on Equity and 20 Inclusion. The Capital Development Board must maintain the 21 full record of determination for 5 years. 22 (a-5) Beginning on the effective date of this amendatory 23 Act of the 102nd General Assembly and through December 31, 24 2025, for single prime projects in which a public institution 25 of higher education is a construction agency awarding building 26 construction contracts in excess of $250,000, separate HB2878 Enrolled - 7 - LRB103 30786 RJT 57276 b HB2878 Enrolled- 8 -LRB103 30786 RJT 57276 b HB2878 Enrolled - 8 - LRB103 30786 RJT 57276 b HB2878 Enrolled - 8 - LRB103 30786 RJT 57276 b 1 specifications may be prepared for all equipment, labor, and 2 materials in connection with the 5 subdivisions of work 3 enumerated in subsection (a). Any public institution of higher 4 education contract awarded for any part thereof may award 2 or 5 more of the 5 subdivisions of work together or separately to 6 responsible and reliable persons, firms, or corporations 7 engaged in these classes of work if: (i) the public 8 institution of higher education has submitted to the 9 Procurement Policy Board and the Commission on Equity and 10 Inclusion a written notice that includes the reasons for using 11 the single prime method and an explanation of why the use of 12 that method is in the best interest of the State and arranges 13 to have the notice posted on the institution's online 14 procurement webpage and its online procurement bulletin at 15 least 3 business days following submission to the Procurement 16 Policy Board and the Commission on Equity and Inclusion; (ii) 17 the successful low bidder has prequalified with the public 18 institution of higher education; (iii) the bid of the 19 successful low bidder identifies the name of the 20 subcontractor, if any, and the bid proposal costs for each of 21 the 5 subdivisions of work set forth in subsection (a); (iv) 22 the contract entered into with the successful bidder provides 23 that no identified subcontractor may be terminated without the 24 written consent of the public institution of higher education; 25 and (v) the successful low bidder has prequalified with the 26 University of Illinois or with the Capital Development Board. HB2878 Enrolled - 8 - LRB103 30786 RJT 57276 b HB2878 Enrolled- 9 -LRB103 30786 RJT 57276 b HB2878 Enrolled - 9 - LRB103 30786 RJT 57276 b HB2878 Enrolled - 9 - LRB103 30786 RJT 57276 b 1 For building construction projects with a total 2 construction cost valued at $20,000,000 or less, public 3 institutions of higher education shall not use the single 4 prime delivery method for more than 50% of the total number of 5 projects bid for each fiscal year. Projects with a total 6 construction cost valued at $20,000,000 or more may be bid 7 using the single prime delivery method at the discretion of 8 the public institution of higher education. With respect to 9 any construction project described in this subsection (a-5), 10 the public institution of higher education shall: (i) specify 11 in writing as a public record that the project shall comply 12 with the Business Enterprise for Minorities, Women, and 13 Persons with Disabilities Act and the equal employment 14 practices of Section 2-105 of the Illinois Human Rights Act; 15 and (ii) report annually to the Governor, General Assembly, 16 Procurement Policy Board, and Auditor General on the bidding, 17 award, and performance of all single prime projects. On and 18 after the effective date of this amendatory Act of the 102nd 19 General Assembly, the public institution of higher education 20 may award in each fiscal year single prime contracts with an 21 aggregate total value of no more than $100,000,000. The Board 22 of Trustees of the University of Illinois may award in each 23 fiscal year single prime contracts with an aggregate total 24 value of not more than $300,000,000. 25 (b) For public institutions of higher education, the The 26 provisions of this subsection are operative on and after HB2878 Enrolled - 9 - LRB103 30786 RJT 57276 b HB2878 Enrolled- 10 -LRB103 30786 RJT 57276 b HB2878 Enrolled - 10 - LRB103 30786 RJT 57276 b HB2878 Enrolled - 10 - LRB103 30786 RJT 57276 b 1 January 1, 2026. For building construction contracts in excess 2 of $250,000, separate specifications shall be prepared for all 3 equipment, labor, and materials in connection with the 4 following 5 subdivisions of the work to be performed: 5 (1) plumbing; 6 (2) heating, piping, refrigeration, and automatic 7 temperature control systems, including the testing and 8 balancing of those systems; 9 (3) ventilating and distribution systems for 10 conditioned air, including the testing and balancing of 11 those systems; 12 (4) electric wiring; and 13 (5) general contract work. 14 The specifications must be so drawn as to permit separate 15 and independent bidding upon each of the 5 subdivisions of 16 work. All contracts awarded for any part thereof shall award 17 the 5 subdivisions of work separately to responsible and 18 reliable persons, firms, or corporations engaged in these 19 classes of work. The contracts, at the discretion of the 20 construction agency, may be assigned to the successful bidder 21 on the general contract work or to the successful bidder on the 22 subdivision of work designated by the construction agency 23 before the bidding as the prime subdivision of work, provided 24 that all payments will be made directly to the contractors for 25 the 5 subdivisions of work upon compliance with the conditions 26 of the contract. HB2878 Enrolled - 10 - LRB103 30786 RJT 57276 b HB2878 Enrolled- 11 -LRB103 30786 RJT 57276 b HB2878 Enrolled - 11 - LRB103 30786 RJT 57276 b HB2878 Enrolled - 11 - LRB103 30786 RJT 57276 b 1 (Source: P.A. 101-369, eff. 12-15-19; 101-645, eff. 6-26-20; 2 102-671, eff. 11-30-21; 102-1119, eff. 1-23-23.) 3 (30 ILCS 500/33-5) 4 Sec. 33-5. Definitions. In this Article: 5 "Construction management services" includes: 6 (1) services provided in the planning and 7 pre-construction phases of a construction project 8 including, but not limited to, consulting with, advising, 9 assisting, and making recommendations to the Board and 10 architect, engineer, or licensed land surveyor on all 11 aspects of planning for project construction; reviewing 12 all plans and specifications as they are being developed 13 and making recommendations with respect to construction 14 feasibility, availability of material and labor, time 15 requirements for procurement and construction, and 16 projected costs; making, reviewing, and refining budget 17 estimates based on the Board's program and other available 18 information; making recommendations to the Board and the 19 architect or engineer regarding the division of work in 20 the plans and specifications to facilitate the bidding and 21 awarding of contracts; soliciting the interest of capable 22 contractors and taking bids on the project; analyzing the 23 bids received; and preparing and maintaining a progress 24 schedule during the design phase of the project and 25 preparation of a proposed construction schedule; and HB2878 Enrolled - 11 - LRB103 30786 RJT 57276 b HB2878 Enrolled- 12 -LRB103 30786 RJT 57276 b HB2878 Enrolled - 12 - LRB103 30786 RJT 57276 b HB2878 Enrolled - 12 - LRB103 30786 RJT 57276 b 1 (2) services provided in the construction phase of the 2 project including, but not limited to, maintaining 3 competent supervisory staff to coordinate and provide 4 general direction of the work and progress of the 5 contractors on the project; directing the work as it is 6 being performed for general conformance with working 7 drawings and specifications; establishing procedures for 8 coordinating among the Board, architect or engineer, 9 contractors, and construction manager with respect to all 10 aspects of the project and implementing those procedures; 11 maintaining job site records and making appropriate 12 progress reports; implementing labor policy in conformance 13 with the requirements of the public owner; reviewing the 14 safety and equal opportunity programs of each contractor 15 for conformance with the public owner's policy and making 16 recommendations; reviewing and processing all applications 17 for payment by involved contractors and material suppliers 18 in accordance with the terms of the contract; making 19 recommendations and processing requests for changes in the 20 work and maintaining records of change orders; scheduling 21 and conducting job meetings to ensure orderly progress of 22 the work; developing and monitoring a project progress 23 schedule, coordinating and expediting the work of all 24 contractors and providing periodic status reports to the 25 owner and the architect or engineer; and establishing and 26 maintaining a cost control system and conducting meetings HB2878 Enrolled - 12 - LRB103 30786 RJT 57276 b HB2878 Enrolled- 13 -LRB103 30786 RJT 57276 b HB2878 Enrolled - 13 - LRB103 30786 RJT 57276 b HB2878 Enrolled - 13 - LRB103 30786 RJT 57276 b 1 to review costs. 2 "Construction manager" means any individual, sole 3 proprietorship, firm, partnership, corporation, or other legal 4 entity providing construction management services for the 5 Board and prequalified by the State in accordance with 30 ILCS 6 500/33-10. 7 "Board" means the Capital Development Board or, to the 8 extent that the services are to be procured by for a public 9 institution of higher education, the public institution of 10 higher education. 11 (Source: P.A. 102-1119, eff. 1-23-23.) 12 (30 ILCS 500/45-105) 13 Sec. 45-105. Bid preference for Illinois businesses. 14 (a) (Blank). For the purposes of this Section: 15 "Illinois business" means a contractor that: (i) is 16 headquartered in Illinois and providing, at the time that an 17 invitation for a bid or notice of contract opportunity is 18 first advertised, construction or construction-related 19 professional services for Illinois-based projects; (ii) 20 conducts meaningful day-to-day business operations at a 21 facility in Illinois that is the place of employment for the 22 majority of its regular, full-time workforce; (iii) holds all 23 appropriate State licenses; and (iv) is subject to applicable 24 State taxes. "Illinois business" does not include any 25 subcontractors. HB2878 Enrolled - 13 - LRB103 30786 RJT 57276 b HB2878 Enrolled- 14 -LRB103 30786 RJT 57276 b HB2878 Enrolled - 14 - LRB103 30786 RJT 57276 b HB2878 Enrolled - 14 - LRB103 30786 RJT 57276 b 1 "Illinois-based project" means an individual project of 2 construction and other construction-related services for a 3 construction agency that will result in the conduct of 4 business within the State or the employment of individuals 5 within the State. 6 (b) It is hereby declared to be the public policy of the 7 State of Illinois to promote the economy of Illinois through 8 the use of Illinois businesses for all State construction 9 contracts. 10 (c) Construction agencies procuring construction and 11 construction-related professional services shall make 12 reasonable efforts to contract with Illinois businesses. 13 (d) Beginning in 2022, each construction agency shall 14 submit a report to the Governor and the General Assembly by 15 September 1 of each year that identifies the Illinois 16 businesses procured by the construction agency, the primary 17 location of the construction project, the percentage of the 18 construction agency's utilization of Illinois businesses on 19 the project as a whole, and the actions that the construction 20 agency has undertaken to increase the use of Illinois 21 businesses. 22 (e) In procuring construction and construction-related 23 professional services for projects with a total value that 24 exceeds the small purchase maximum established by Section 25 20-20 of this Code with a total construction cost of more than 26 $100,000, construction agencies shall provide a bid preference HB2878 Enrolled - 14 - LRB103 30786 RJT 57276 b HB2878 Enrolled- 15 -LRB103 30786 RJT 57276 b HB2878 Enrolled - 15 - LRB103 30786 RJT 57276 b HB2878 Enrolled - 15 - LRB103 30786 RJT 57276 b 1 to a responsive and responsible bidder that is an Illinois 2 business as defined in this Section. The construction agency 3 shall allocate to the lowest bid by an Illinois business that 4 is responsible and responsive any responsible bidder that is 5 an Illinois business a bid preference of 4% of the contract 6 base bid. This subsection applies only to projects where a 7 business that is not an Illinois business submits a bid. 8 (f) This Section does not apply to any contract for any 9 project for which federal funds are available for expenditure 10 when its provisions may be in conflict with federal law or 11 federal regulation. 12 (g) As used in this Section, "Illinois business" means a 13 contractor that is operating and headquartered in Illinois and 14 providing, at the time that an invitation for a bid or notice 15 of contract opportunity is first advertised, construction or 16 construction-related professional services, and is operating 17 as: 18 (1) a sole proprietor whose primary residence is in 19 Illinois; 20 (2) a business incorporated or organized as a domestic 21 corporation under the Business Corporation Act of 1983; 22 (3) a business organized as a domestic partnership 23 under the Uniform Partnership Act of 1997; 24 (4) a business organized as a domestic limited 25 partnership under the Uniform Limited Partnership Act of 26 2001; HB2878 Enrolled - 15 - LRB103 30786 RJT 57276 b HB2878 Enrolled- 16 -LRB103 30786 RJT 57276 b HB2878 Enrolled - 16 - LRB103 30786 RJT 57276 b HB2878 Enrolled - 16 - LRB103 30786 RJT 57276 b 1 (5) a business organized under the Limited Liability 2 Company Act; or 3 (6) a business organized under the Professional 4 Limited Liability Company Act. 5 "Illinois business" does not include any subcontractors. 6 (Source: P.A. 102-721, eff. 1-1-23.) 7 ARTICLE 15. AWARD TO NOT-FOR-PROFIT AGENCY FOR PERSONS WITH 8 SIGNIFICANT DISABILITIES 9 Section 15-5. The Governmental Joint Purchasing Act is 10 amended by changing Section 4.05 as follows: 11 (30 ILCS 525/4.05) 12 Sec. 4.05. Other methods of joint purchases. 13 (a) It may be determined that it is impractical to obtain 14 competition because either (i) there is only one 15 economically-feasible source for the item, or (ii) there is a 16 threat to public health or public safety, or when immediate 17 expenditure is necessary either to prevent or minimize serious 18 disruption in critical State services that affect health, 19 safety, or collection of substantial State revenues, or to 20 ensure the integrity of State records, or (iii) it is in the 21 best interest of the State to award a contract to a qualified 22 not-for-profit agency for persons with significant 23 disabilities under Section 45-35 of the Illinois Procurement HB2878 Enrolled - 16 - LRB103 30786 RJT 57276 b HB2878 Enrolled- 17 -LRB103 30786 RJT 57276 b HB2878 Enrolled - 17 - LRB103 30786 RJT 57276 b HB2878 Enrolled - 17 - LRB103 30786 RJT 57276 b 1 Code. 2 (b) When the State of Illinois is a party to the joint 3 purchase agreement, the applicable chief procurement officer 4 shall make a determination regarding whether (i) whether there 5 is only one economically feasible source for the item, or (ii) 6 whether that there exists a threat to public health or public 7 safety or that immediate expenditure is necessary to prevent 8 or minimize serious disruption in critical State services, or 9 (iii) whether the contract is eligible to be awarded to a 10 not-for-profit agency for persons with significant 11 disabilities under Section 45-35 of the Illinois Procurement 12 Code. 13 (c) When there is only one economically feasible source 14 for the item, the chief procurement officer may authorize a 15 sole economically-feasible source contract. When there exists 16 a threat to public health or public safety or when immediate 17 expenditure is necessary to prevent or minimize serious 18 disruption in critical State services, the chief procurement 19 officer may authorize an emergency procurement without 20 competitive sealed bidding or competitive sealed proposals or 21 prior notice. When an agency requests to award a contract to a 22 not-for-profit agency for persons with significant 23 disabilities under Section 45-35 of the Illinois Procurement 24 Code, the chief procurement officer may authorize the award. 25 (d) All joint purchases made pursuant to this Section 26 shall follow the same procedures for sole source contracts in HB2878 Enrolled - 17 - LRB103 30786 RJT 57276 b HB2878 Enrolled- 18 -LRB103 30786 RJT 57276 b HB2878 Enrolled - 18 - LRB103 30786 RJT 57276 b HB2878 Enrolled - 18 - LRB103 30786 RJT 57276 b 1 the Illinois Procurement Code when the chief procurement 2 officer determines there is only one economically-feasible 3 source for the item. All joint purchases made pursuant to this 4 Section shall follow the same procedures for emergency 5 purchases in the Illinois Procurement Code when the chief 6 procurement officer determines immediate expenditure is 7 necessary to prevent or minimize serious disruption in 8 critical State services that affect health, safety, or 9 collection of substantial State revenues, or to ensure the 10 integrity of State records. All joint purchases made under 11 this Section shall follow the same procedures for 12 not-for-profit agencies for persons with significant 13 disabilities under Section 45-35 of the Illinois Procurement 14 Code when the chief procurement officer determines that it is 15 in the best interest of the State. 16 (e) Each chief procurement officer shall submit to the 17 General Assembly by November 1 of each year a report of 18 procurements made under this Section. 19 (Source: P.A. 100-43, eff. 8-9-17.) 20 ARTICLE 20. VETERANS PREFERENCES 21 Section 20-5. The Illinois Procurement Code is amended by 22 changing Section 45-57 as follows: 23 (30 ILCS 500/45-57) HB2878 Enrolled - 18 - LRB103 30786 RJT 57276 b HB2878 Enrolled- 19 -LRB103 30786 RJT 57276 b HB2878 Enrolled - 19 - LRB103 30786 RJT 57276 b HB2878 Enrolled - 19 - LRB103 30786 RJT 57276 b 1 Sec. 45-57. Veterans. 2 (a) Set-aside goal. It is the goal of the State to promote 3 and encourage the continued economic development of small 4 businesses owned and controlled by qualified veterans and that 5 qualified service-disabled veteran-owned small businesses 6 (referred to as SDVOSB) and veteran-owned small businesses 7 (referred to as VOSB) participate in the State's procurement 8 process as both prime contractors and subcontractors. Not less 9 than 3% of the total dollar amount of State contracts, as 10 defined by the Commission on Equity and Inclusion, shall be 11 established as a goal to be awarded to SDVOSB and VOSB. That 12 portion of a contract under which the contractor subcontracts 13 with a SDVOSB or VOSB may be counted toward the goal of this 14 subsection. The Commission on Equity and Inclusion shall adopt 15 rules to implement compliance with this subsection by all 16 State agencies. 17 (b) Fiscal year reports. By each November 1, each chief 18 procurement officer shall report to the Commission on Equity 19 and Inclusion on all of the following for the immediately 20 preceding fiscal year, and by each March 1 the Commission on 21 Equity and Inclusion shall compile and report that information 22 to the General Assembly: 23 (1) The total number of VOSB, and the number of 24 SDVOSB, who submitted bids for contracts under this Code. 25 (2) The total number of VOSB, and the number of 26 SDVOSB, who entered into contracts with the State under HB2878 Enrolled - 19 - LRB103 30786 RJT 57276 b HB2878 Enrolled- 20 -LRB103 30786 RJT 57276 b HB2878 Enrolled - 20 - LRB103 30786 RJT 57276 b HB2878 Enrolled - 20 - LRB103 30786 RJT 57276 b 1 this Code and the total value of those contracts. 2 (b-5) The Commission on Equity and Inclusion shall submit 3 an annual report to the Governor and the General Assembly that 4 shall include the following: 5 (1) a year-by-year comparison of the number of 6 certifications the State has issued to veteran-owned small 7 businesses and service-disabled veteran-owned small 8 businesses; 9 (2) the obstacles, if any, the Commission on Equity 10 and Inclusion faces when certifying veteran-owned 11 businesses and possible rules or changes to rules to 12 address those issues; 13 (3) a year-by-year comparison of awarded contracts to 14 certified veteran-owned small businesses and 15 service-disabled veteran-owned small businesses; and 16 (4) any other information that the Commission on 17 Equity and Inclusion deems necessary to assist 18 veteran-owned small businesses and service-disabled 19 veteran-owned small businesses to become certified with 20 the State. 21 The Commission on Equity and Inclusion shall conduct a 22 minimum of 2 outreach events per year to ensure that 23 veteran-owned small businesses and service-disabled 24 veteran-owned small businesses know about the procurement 25 opportunities and certification requirements with the State. 26 The Commission on Equity and Inclusion may receive HB2878 Enrolled - 20 - LRB103 30786 RJT 57276 b HB2878 Enrolled- 21 -LRB103 30786 RJT 57276 b HB2878 Enrolled - 21 - LRB103 30786 RJT 57276 b HB2878 Enrolled - 21 - LRB103 30786 RJT 57276 b 1 appropriations for outreach. 2 (c) Yearly review and recommendations. Each year, each 3 chief procurement officer shall review the progress of all 4 State agencies under its jurisdiction in meeting the goal 5 described in subsection (a), with input from statewide 6 veterans' service organizations and from the business 7 community, including businesses owned by qualified veterans, 8 and shall make recommendations to be included in the 9 Commission on Equity and Inclusion's report to the General 10 Assembly regarding continuation, increases, or decreases of 11 the percentage goal. The recommendations shall be based upon 12 the number of businesses that are owned by qualified veterans 13 and on the continued need to encourage and promote businesses 14 owned by qualified veterans. 15 (d) Governor's recommendations. To assist the State in 16 reaching the goal described in subsection (a), the Governor 17 shall recommend to the General Assembly changes in programs to 18 assist businesses owned by qualified veterans. 19 (e) Definitions. As used in this Section: 20 "Armed forces of the United States" means the United 21 States Army, Navy, Air Force, Marine Corps, Coast Guard, or 22 service in active duty as defined under 38 U.S.C. Section 101. 23 Service in the Merchant Marine that constitutes active duty 24 under Section 401 of federal Public Act 95-202 shall also be 25 considered service in the armed forces for purposes of this 26 Section. HB2878 Enrolled - 21 - LRB103 30786 RJT 57276 b HB2878 Enrolled- 22 -LRB103 30786 RJT 57276 b HB2878 Enrolled - 22 - LRB103 30786 RJT 57276 b HB2878 Enrolled - 22 - LRB103 30786 RJT 57276 b 1 "Certification" means a determination made by the Illinois 2 Department of Veterans' Affairs and the Commission on Equity 3 and Inclusion that a business entity is a qualified 4 service-disabled veteran-owned small business or a qualified 5 veteran-owned small business for whatever purpose. A SDVOSB or 6 VOSB owned and controlled by women, minorities, or persons 7 with disabilities, as those terms are defined in Section 2 of 8 the Business Enterprise for Minorities, Women, and Persons 9 with Disabilities Act, may also select and designate whether 10 that business is to be certified as a "women-owned business", 11 "minority-owned business", or "business owned by a person with 12 a disability", as defined in Section 2 of the Business 13 Enterprise for Minorities, Women, and Persons with 14 Disabilities Act. 15 "Control" means the exclusive, ultimate, majority, or sole 16 control of the business, including but not limited to capital 17 investment and all other financial matters, property, 18 acquisitions, contract negotiations, legal matters, 19 officer-director-employee selection and comprehensive hiring, 20 operation responsibilities, cost-control matters, income and 21 dividend matters, financial transactions, and rights of other 22 shareholders or joint partners. Control shall be real, 23 substantial, and continuing, not pro forma. Control shall 24 include the power to direct or cause the direction of the 25 management and policies of the business and to make the 26 day-to-day as well as major decisions in matters of policy, HB2878 Enrolled - 22 - LRB103 30786 RJT 57276 b HB2878 Enrolled- 23 -LRB103 30786 RJT 57276 b HB2878 Enrolled - 23 - LRB103 30786 RJT 57276 b HB2878 Enrolled - 23 - LRB103 30786 RJT 57276 b 1 management, and operations. Control shall be exemplified by 2 possessing the requisite knowledge and expertise to run the 3 particular business, and control shall not include simple 4 majority or absentee ownership. 5 "Qualified service-disabled veteran" means a veteran who 6 has been found to have 10% or more service-connected 7 disability by the United States Department of Veterans Affairs 8 or the United States Department of Defense. 9 "Qualified service-disabled veteran-owned small business" 10 or "SDVOSB" means a small business (i) that is at least 51% 11 owned by one or more qualified service-disabled veterans 12 living in Illinois or, in the case of a corporation, at least 13 51% of the stock of which is owned by one or more qualified 14 service-disabled veterans living in Illinois; (ii) that has 15 its home office in Illinois; and (iii) for which items (i) and 16 (ii) are factually verified annually by the Commission on 17 Equity and Inclusion. 18 "Qualified veteran-owned small business" or "VOSB" means a 19 small business (i) that is at least 51% owned by one or more 20 qualified veterans living in Illinois or, in the case of a 21 corporation, at least 51% of the stock of which is owned by one 22 or more qualified veterans living in Illinois; (ii) that has 23 its home office in Illinois; and (iii) for which items (i) and 24 (ii) are factually verified annually by the Commission on 25 Equity and Inclusion. 26 "Service-connected disability" means a disability incurred HB2878 Enrolled - 23 - LRB103 30786 RJT 57276 b HB2878 Enrolled- 24 -LRB103 30786 RJT 57276 b HB2878 Enrolled - 24 - LRB103 30786 RJT 57276 b HB2878 Enrolled - 24 - LRB103 30786 RJT 57276 b 1 in the line of duty in the active military, naval, or air 2 service as described in 38 U.S.C. 101(16). 3 "Small business" means a business that has annual gross 4 sales of less than $150,000,000 $75,000,000 as evidenced by 5 the federal income tax return of the business. A firm with 6 gross sales in excess of this cap may apply to the Commission 7 on Equity and Inclusion for certification for a particular 8 contract if the firm can demonstrate that the contract would 9 have significant impact on SDVOSB or VOSB as suppliers or 10 subcontractors or in employment of veterans or 11 service-disabled veterans. 12 "State agency" has the meaning provided in Section 13 1-15.100 of this Code. 14 "Time of hostilities with a foreign country" means any 15 period of time in the past, present, or future during which a 16 declaration of war by the United States Congress has been or is 17 in effect or during which an emergency condition has been or is 18 in effect that is recognized by the issuance of a Presidential 19 proclamation or a Presidential executive order and in which 20 the armed forces expeditionary medal or other campaign service 21 medals are awarded according to Presidential executive order. 22 "Veteran" means a person who (i) has been a member of the 23 armed forces of the United States or, while a citizen of the 24 United States, was a member of the armed forces of allies of 25 the United States in time of hostilities with a foreign 26 country and (ii) has served under one or more of the following HB2878 Enrolled - 24 - LRB103 30786 RJT 57276 b HB2878 Enrolled- 25 -LRB103 30786 RJT 57276 b HB2878 Enrolled - 25 - LRB103 30786 RJT 57276 b HB2878 Enrolled - 25 - LRB103 30786 RJT 57276 b 1 conditions: (a) the veteran served a total of at least 6 2 months; (b) the veteran served for the duration of hostilities 3 regardless of the length of the engagement; (c) the veteran 4 was discharged on the basis of hardship; or (d) the veteran was 5 released from active duty because of a service connected 6 disability and was discharged under honorable conditions. 7 (f) Certification program. The Illinois Department of 8 Veterans' Affairs and the Commission on Equity and Inclusion 9 shall work together to devise a certification procedure to 10 assure that businesses taking advantage of this Section are 11 legitimately classified as qualified service-disabled 12 veteran-owned small businesses or qualified veteran-owned 13 small businesses. 14 The Commission on Equity and Inclusion shall: 15 (1) compile and maintain a comprehensive list of 16 certified veteran-owned small businesses and 17 service-disabled veteran-owned small businesses; 18 (2) assist veteran-owned small businesses and 19 service-disabled veteran-owned small businesses in 20 complying with the procedures for bidding on State 21 contracts; 22 (3) provide training for State agencies regarding the 23 goal setting process and compliance with veteran-owned 24 small business and service-disabled veteran-owned small 25 business goals; and 26 (4) implement and maintain an electronic portal on the HB2878 Enrolled - 25 - LRB103 30786 RJT 57276 b HB2878 Enrolled- 26 -LRB103 30786 RJT 57276 b HB2878 Enrolled - 26 - LRB103 30786 RJT 57276 b HB2878 Enrolled - 26 - LRB103 30786 RJT 57276 b 1 Commission on Equity and Inclusion's website for the 2 purpose of completing and submitting veteran-owned small 3 business and service-disabled veteran-owned small business 4 certificates. 5 The Commission on Equity and Inclusion, in consultation 6 with the Department of Veterans' Affairs, may develop programs 7 and agreements to encourage cities, counties, towns, 8 townships, and other certifying entities to adopt uniform 9 certification procedures and certification recognition 10 programs. 11 (f-5) A business shall be certified by the Commission on 12 Equity and Inclusion as a service-disabled veteran-owned small 13 business or a veteran-owned small business for purposes of 14 this Section if the Commission on Equity and Inclusion 15 determines that the business has been certified as a 16 service-disabled veteran-owned small business or a 17 veteran-owned small business by the Vets First Verification 18 Program of the United States Department of Veterans Affairs, 19 and the business has provided to the Commission on Equity and 20 Inclusion the following: 21 (1) documentation showing certification as a 22 service-disabled veteran-owned small business or a 23 veteran-owned small business by the Vets First 24 Verification Program of the United States Department of 25 Veterans Affairs; 26 (2) proof that the business has its home office in HB2878 Enrolled - 26 - LRB103 30786 RJT 57276 b HB2878 Enrolled- 27 -LRB103 30786 RJT 57276 b HB2878 Enrolled - 27 - LRB103 30786 RJT 57276 b HB2878 Enrolled - 27 - LRB103 30786 RJT 57276 b 1 Illinois; and 2 (3) proof that the qualified veterans or qualified 3 service-disabled veterans live in the State of Illinois. 4 The policies of the Commission on Equity and Inclusion 5 regarding recognition of the Vets First Verification Program 6 of the United States Department of Veterans Affairs shall be 7 reviewed annually by the Commission on Equity and Inclusion, 8 and recognition of service-disabled veteran-owned small 9 businesses and veteran-owned small businesses certified by the 10 Vets First Verification Program of the United States 11 Department of Veterans Affairs may be discontinued by the 12 Commission on Equity and Inclusion by rule upon a finding that 13 the certification standards of the Vets First Verification 14 Program of the United States Department of Veterans Affairs do 15 not meet the certification requirements established by the 16 Commission on Equity and Inclusion. 17 (g) Penalties. 18 (1) Administrative penalties. The chief procurement 19 officers appointed pursuant to Section 10-20 shall suspend 20 any person who commits a violation of Section 17-10.3 or 21 subsection (d) of Section 33E-6 of the Criminal Code of 22 2012 relating to this Section from bidding on, or 23 participating as a contractor, subcontractor, or supplier 24 in, any State contract or project for a period of not less 25 than 3 years, and, if the person is certified as a 26 service-disabled veteran-owned small business or a HB2878 Enrolled - 27 - LRB103 30786 RJT 57276 b HB2878 Enrolled- 28 -LRB103 30786 RJT 57276 b HB2878 Enrolled - 28 - LRB103 30786 RJT 57276 b HB2878 Enrolled - 28 - LRB103 30786 RJT 57276 b 1 veteran-owned small business, then the Commission on 2 Equity and Inclusion shall revoke the business's 3 certification for a period of not less than 3 years. An 4 additional or subsequent violation shall extend the 5 periods of suspension and revocation for a period of not 6 less than 5 years. The suspension and revocation shall 7 apply to the principals of the business and any subsequent 8 business formed or financed by, or affiliated with, those 9 principals. 10 (2) Reports of violations. Each State agency shall 11 report any alleged violation of Section 17-10.3 or 12 subsection (d) of Section 33E-6 of the Criminal Code of 13 2012 relating to this Section to the chief procurement 14 officers appointed pursuant to Section 10-20. The chief 15 procurement officers appointed pursuant to Section 10-20 16 shall subsequently report all such alleged violations to 17 the Attorney General, who shall determine whether to bring 18 a civil action against any person for the violation. 19 (3) List of suspended persons. The chief procurement 20 officers appointed pursuant to Section 10-20 shall monitor 21 the status of all reported violations of Section 17-10.3 22 or subsection (d) of Section 33E-6 of the Criminal Code of 23 1961 or the Criminal Code of 2012 relating to this Section 24 and shall maintain and make available to all State 25 agencies a central listing of all persons that committed 26 violations resulting in suspension. HB2878 Enrolled - 28 - LRB103 30786 RJT 57276 b HB2878 Enrolled- 29 -LRB103 30786 RJT 57276 b HB2878 Enrolled - 29 - LRB103 30786 RJT 57276 b HB2878 Enrolled - 29 - LRB103 30786 RJT 57276 b 1 (4) Use of suspended persons. During the period of a 2 person's suspension under paragraph (1) of this 3 subsection, a State agency shall not enter into any 4 contract with that person or with any contractor using the 5 services of that person as a subcontractor. 6 (5) Duty to check list. Each State agency shall check 7 the central listing provided by the chief procurement 8 officers appointed pursuant to Section 10-20 under 9 paragraph (3) of this subsection to verify that a person 10 being awarded a contract by that State agency, or to be 11 used as a subcontractor or supplier on a contract being 12 awarded by that State agency, is not under suspension 13 pursuant to paragraph (1) of this subsection. 14 (h) On and after the effective date of this amendatory Act 15 of the 102nd General Assembly, all powers, duties, rights, and 16 responsibilities of the Department of Central Management 17 Services with respect to the requirements of this Section are 18 transferred to the Commission on Equity and Inclusion. 19 All books, records, papers, documents, property (real and 20 personal), contracts, causes of action, and pending business 21 pertaining to the powers, duties, rights, and responsibilities 22 transferred by this amendatory Act from the Department of 23 Central Management Services to the Commission on Equity and 24 Inclusion, including, but not limited to, material in 25 electronic or magnetic format and necessary computer hardware 26 and software, shall be transferred to the Commission on Equity HB2878 Enrolled - 29 - LRB103 30786 RJT 57276 b HB2878 Enrolled- 30 -LRB103 30786 RJT 57276 b HB2878 Enrolled - 30 - LRB103 30786 RJT 57276 b HB2878 Enrolled - 30 - LRB103 30786 RJT 57276 b 1 and Inclusion. 2 The powers, duties, rights, and responsibilities 3 transferred from the Department of Central Management Services 4 by this amendatory Act shall be vested in and shall be 5 exercised by the Commission on Equity and Inclusion. 6 Whenever reports or notices are now required to be made or 7 given or papers or documents furnished or served by any person 8 to or upon the Department of Central Management Services in 9 connection with any of the powers, duties, rights, and 10 responsibilities transferred by this amendatory Act, the same 11 shall be made, given, furnished, or served in the same manner 12 to or upon the Commission on Equity and Inclusion. 13 This amendatory Act of the 102nd General Assembly does not 14 affect any act done, ratified, or canceled or any right 15 occurring or established or any action or proceeding had or 16 commenced in an administrative, civil, or criminal cause by 17 the Department of Central Management Services before this 18 amendatory Act takes effect; such actions or proceedings may 19 be prosecuted and continued by the Commission on Equity and 20 Inclusion. 21 Any rules of the Department of Central Management Services 22 that relate to its powers, duties, rights, and 23 responsibilities under this Section and are in full force on 24 the effective date of this amendatory Act of the 102nd General 25 Assembly shall become the rules of the Commission on Equity 26 and Inclusion. This amendatory Act does not affect the HB2878 Enrolled - 30 - LRB103 30786 RJT 57276 b HB2878 Enrolled- 31 -LRB103 30786 RJT 57276 b HB2878 Enrolled - 31 - LRB103 30786 RJT 57276 b HB2878 Enrolled - 31 - LRB103 30786 RJT 57276 b 1 legality of any such rules in the Illinois Administrative 2 Code. Any proposed rules filed with the Secretary of State by 3 the Department of Central Management Services that are pending 4 in the rulemaking process on the effective date of this 5 amendatory Act and pertain to the powers, duties, rights, and 6 responsibilities transferred, shall be deemed to have been 7 filed by the Commission on Equity and Inclusion. As soon as 8 practicable hereafter, the Commission on Equity and Inclusion 9 shall revise and clarify the rules transferred to it under 10 this amendatory Act to reflect the reorganization of powers, 11 duties, rights, and responsibilities affected by this 12 amendatory Act, using the procedures for recodification of 13 rules available under the Illinois Administrative Procedure 14 Act, except that existing title, part, and section numbering 15 for the affected rules may be retained. The Commission on 16 Equity and Inclusion may propose and adopt under the Illinois 17 Administrative Procedure Act such other rules of the 18 Department of Central Management Services that will now be 19 administered by the Commission on Equity and Inclusion. 20 (Source: P.A. 102-166, eff. 7-26-21; 102-671, eff. 11-30-21.) 21 ARTICLE 25. SMALL BUSINESS SET-ASIDE REPORTING 22 Section 25-5. The Illinois Procurement Code is amended by 23 changing Section 45-45 as follows: HB2878 Enrolled - 31 - LRB103 30786 RJT 57276 b HB2878 Enrolled- 32 -LRB103 30786 RJT 57276 b HB2878 Enrolled - 32 - LRB103 30786 RJT 57276 b HB2878 Enrolled - 32 - LRB103 30786 RJT 57276 b 1 (30 ILCS 500/45-45) 2 Sec. 45-45. Small businesses. 3 (a) Set-asides. Each chief procurement officer has 4 authority to designate as small business set-asides a fair 5 proportion of construction, supply, and service contracts for 6 award to small businesses in Illinois. Advertisements for bids 7 or offers for those contracts shall specify designation as 8 small business set-asides. In awarding the contracts, only 9 bids or offers from qualified small businesses shall be 10 considered. 11 (b) Small business. "Small business" means a business that 12 is independently owned and operated and that is not dominant 13 in its field of operation. The chief procurement officer shall 14 establish a detailed definition by rule, using in addition to 15 the foregoing criteria other criteria, including the number of 16 employees and the dollar volume of business. When computing 17 the size status of a potential contractor, annual sales and 18 receipts of the potential contractor and all of its affiliates 19 shall be included. The maximum number of employees and the 20 maximum dollar volume that a small business may have under the 21 rules promulgated by the chief procurement officer may vary 22 from industry to industry to the extent necessary to reflect 23 differing characteristics of those industries, subject to the 24 following limitations: 25 (1) No wholesale business is a small business if its 26 annual sales for its most recently completed fiscal year HB2878 Enrolled - 32 - LRB103 30786 RJT 57276 b HB2878 Enrolled- 33 -LRB103 30786 RJT 57276 b HB2878 Enrolled - 33 - LRB103 30786 RJT 57276 b HB2878 Enrolled - 33 - LRB103 30786 RJT 57276 b 1 exceed $13,000,000. 2 (2) No retail business or business selling services is 3 a small business if its annual sales and receipts exceed 4 $8,000,000. 5 (3) No manufacturing business is a small business if 6 it employs more than 250 persons. 7 (4) No construction business is a small business if 8 its annual sales and receipts exceed $14,000,000. 9 (c) Fair proportion. For the purpose of subsection (a), 10 for State agencies of the executive branch, a fair proportion 11 of construction contracts shall be no less than 25% nor more 12 than 40% of the annual total contracts for construction. 13 (d) Withdrawal of designation. A small business set-aside 14 designation may be withdrawn by the purchasing agency when 15 deemed in the best interests of the State. Upon withdrawal, 16 all bids or offers shall be rejected, and the bidders or 17 offerors shall be notified of the reason for rejection. The 18 contract shall then be awarded in accordance with this Code 19 without the designation of small business set-aside. Each 20 chief procurement officer shall make the annual report 21 available on his or her official website. Each chief 22 procurement officer shall also issue a press release in 23 conjunction with the small business annual report that 24 includes an executive summary of the annual report and a link 25 to the annual report on the chief procurement officer's 26 website. HB2878 Enrolled - 33 - LRB103 30786 RJT 57276 b HB2878 Enrolled- 34 -LRB103 30786 RJT 57276 b HB2878 Enrolled - 34 - LRB103 30786 RJT 57276 b HB2878 Enrolled - 34 - LRB103 30786 RJT 57276 b 1 (e) Small business specialist. Each chief procurement 2 officer shall designate one or more individuals to serve as 3 its small business specialist. The small business specialists 4 shall collectively work together to accomplish the following 5 duties: 6 (1) Compiling and maintaining a comprehensive list of 7 potential small contractors. In this duty, he or she shall 8 cooperate with the Federal Small Business Administration 9 in locating potential sources for various products and 10 services. 11 (2) Assisting small businesses in complying with the 12 procedures for bidding on State contracts. 13 (3) Examining requests from State agencies for the 14 purchase of property or services to help determine which 15 invitations to bid are to be designated small business 16 set-asides. 17 (4) Making recommendations to the chief procurement 18 officer for the simplification of specifications and terms 19 in order to increase the opportunities for small business 20 participation. 21 (5) Assisting in investigations by purchasing agencies 22 to determine the responsibility of bidders or offerors on 23 small business set-asides. 24 (f) Small business annual report. Each small business 25 specialist designated under subsection (e) shall annually 26 before November 1 report in writing to the General Assembly HB2878 Enrolled - 34 - LRB103 30786 RJT 57276 b HB2878 Enrolled- 35 -LRB103 30786 RJT 57276 b HB2878 Enrolled - 35 - LRB103 30786 RJT 57276 b HB2878 Enrolled - 35 - LRB103 30786 RJT 57276 b 1 concerning the awarding of contracts to small businesses. The 2 report shall include the total value of awards made in the 3 preceding fiscal year under the designation of small business 4 set-aside. The report shall also include the total value of 5 awards made to businesses owned by minorities, women, and 6 persons with disabilities, as defined in the Business 7 Enterprise for Minorities, Women, and Persons with 8 Disabilities Act, in the preceding fiscal year under the 9 designation of small business set-aside. 10 The requirement for reporting to the General Assembly 11 shall be satisfied by filing copies of the report as required 12 by Section 3.1 of the General Assembly Organization Act. 13 (Source: P.A. 100-43, eff. 8-9-17; 100-391, eff. 8-25-17; 14 100-863, eff. 8-14-18.) 15 Section 25-10. The Business Enterprise for Minorities, 16 Women, and Persons with Disabilities Act is amended by 17 changing Section 8f as follows: 18 (30 ILCS 575/8f) 19 (Section scheduled to be repealed on June 30, 2024) 20 Sec. 8f. Annual report. The Council shall file no later 21 than March 1 of each year, an annual report that shall detail 22 the level of achievement toward the goals specified in this 23 Act over the 3 most recent fiscal years. The annual report 24 shall include, but need not be limited to the following: HB2878 Enrolled - 35 - LRB103 30786 RJT 57276 b HB2878 Enrolled- 36 -LRB103 30786 RJT 57276 b HB2878 Enrolled - 36 - LRB103 30786 RJT 57276 b HB2878 Enrolled - 36 - LRB103 30786 RJT 57276 b 1 (1) a summary detailing expenditures subject to the 2 goals, the actual goals specified, and the goals attained 3 by each State agency and public institution of higher 4 education; 5 (2) a summary of the number of contracts awarded and 6 the average contract amount by each State agency and 7 public institution of higher education; 8 (3) an analysis of the level of overall goal 9 achievement concerning purchases from minority-owned 10 businesses, women-owned businesses, and businesses owned 11 by persons with disabilities; 12 (4) an analysis of the number of businesses owned by 13 minorities, women, and persons with disabilities that are 14 certified under the program as well as the number of those 15 businesses that received State procurement contracts; and 16 (5) a summary of the number of contracts awarded to 17 businesses with annual gross sales of less than 18 $1,000,000; of $1,000,000 or more, but less than 19 $5,000,000; of $5,000,000 or more, but less than 20 $10,000,000; and of $10,000,000 or more. 21 The Council shall make the annual report available on its 22 official website. The Council shall also issue a press release 23 in conjunction with the annual report that includes an 24 executive summary of the annual report and a link to the annual 25 report on its official website. 26 (Source: P.A. 99-462, eff. 8-25-15; 100-391, eff. 8-25-17.) HB2878 Enrolled - 36 - LRB103 30786 RJT 57276 b HB2878 Enrolled- 37 -LRB103 30786 RJT 57276 b HB2878 Enrolled - 37 - LRB103 30786 RJT 57276 b HB2878 Enrolled - 37 - LRB103 30786 RJT 57276 b 1 ARTICLE 35. CMS FACILITY LEASES 2 Section 35-5. The Department of Central Management 3 Services Law of the Civil Administrative Code of Illinois is 4 amended by changing Section 405-300 as follows: 5 (20 ILCS 405/405-300) (was 20 ILCS 405/67.02) 6 Sec. 405-300. Lease or purchase of facilities; training 7 programs. 8 (a) To lease or purchase office and storage space, 9 buildings, land, and other facilities for all State agencies, 10 authorities, boards, commissions, departments, institutions, 11 and bodies politic and all other administrative units or 12 outgrowths of the executive branch of State government except 13 the Constitutional officers, the State Board of Education and 14 the State colleges and universities and their governing 15 bodies. However, before leasing or purchasing any office or 16 storage space, buildings, land or other facilities in any 17 municipality the Department shall survey the existing 18 State-owned and State-leased property to make a determination 19 of need. 20 The leases shall be for a term not to exceed 5 years, 21 except that the leases may contain a renewal clause subject to 22 acceptance by the State after that date or an option to 23 purchase. The purchases shall be made through contracts that HB2878 Enrolled - 37 - LRB103 30786 RJT 57276 b HB2878 Enrolled- 38 -LRB103 30786 RJT 57276 b HB2878 Enrolled - 38 - LRB103 30786 RJT 57276 b HB2878 Enrolled - 38 - LRB103 30786 RJT 57276 b 1 (i) may provide for the title to the property to transfer 2 immediately to the State or a trustee or nominee for the 3 benefit of the State, (ii) shall provide for the consideration 4 to be paid in installments to be made at stated intervals 5 during a certain term not to exceed 30 years from the date of 6 the contract, and (iii) may provide for the payment of 7 interest on the unpaid balance at a rate that does not exceed a 8 rate determined by adding 3 percentage points to the annual 9 yield on United States Treasury obligations of comparable 10 maturity as most recently published in the Wall Street Journal 11 at the time such contract is signed. The leases and purchase 12 contracts shall be and shall recite that they are subject to 13 termination and cancellation in any year for which the General 14 Assembly fails to make an appropriation to pay the rent or 15 purchase installments payable under the terms of the lease or 16 purchase contract. Additionally, the purchase contract shall 17 specify that title to the office and storage space, buildings, 18 land, and other facilities being acquired under the contract 19 shall revert to the Seller in the event of the failure of the 20 General Assembly to appropriate suitable funds. However, this 21 limitation on the term of the leases does not apply to leases 22 to and with the Illinois Building Authority, as provided for 23 in the Building Authority Act. Leases to and with that 24 Authority may be entered into for a term not to exceed 30 years 25 and shall be and shall recite that they are subject to 26 termination and cancellation in any year for which the General HB2878 Enrolled - 38 - LRB103 30786 RJT 57276 b HB2878 Enrolled- 39 -LRB103 30786 RJT 57276 b HB2878 Enrolled - 39 - LRB103 30786 RJT 57276 b HB2878 Enrolled - 39 - LRB103 30786 RJT 57276 b 1 Assembly fails to make an appropriation to pay the rent 2 payable under the terms of the lease. These limitations do not 3 apply if the lease or purchase contract contains a provision 4 limiting the liability for the payment of the rentals or 5 installments thereof solely to funds received from the Federal 6 government. 7 (b) To lease from an airport authority office, aircraft 8 hangar, and service buildings constructed upon a public 9 airport under the Airport Authorities Act for the use and 10 occupancy of the State Department of Transportation. The lease 11 may be entered into for a term not to exceed 30 years. 12 (c) To establish training programs for teaching State 13 leasing procedures and practices to new employees of the 14 Department and to keep all employees of the Department 15 informed about current leasing practices and developments in 16 the real estate industry. 17 (d) To enter into an agreement with a municipality or 18 county to construct, remodel, or convert a structure for the 19 purposes of its serving as a correctional institution or 20 facility pursuant to paragraph (c) of Section 3-2-2 of the 21 Unified Code of Corrections. 22 (e) To enter into an agreement with a private individual, 23 trust, partnership, or corporation or a municipality or other 24 unit of local government, when authorized to do so by the 25 Department of Corrections, whereby that individual, trust, 26 partnership, or corporation or municipality or other unit of HB2878 Enrolled - 39 - LRB103 30786 RJT 57276 b HB2878 Enrolled- 40 -LRB103 30786 RJT 57276 b HB2878 Enrolled - 40 - LRB103 30786 RJT 57276 b HB2878 Enrolled - 40 - LRB103 30786 RJT 57276 b 1 local government will construct, remodel, or convert a 2 structure for the purposes of its serving as a correctional 3 institution or facility and then lease the structure to the 4 Department for the use of the Department of Corrections. A 5 lease entered into pursuant to the authority granted in this 6 subsection shall be for a term not to exceed 30 years but may 7 grant to the State the option to purchase the structure 8 outright. 9 The leases shall be and shall recite that they are subject 10 to termination and cancellation in any year for which the 11 General Assembly fails to make an appropriation to pay the 12 rent payable under the terms of the lease. 13 (f) On and after September 17, 1983, the powers granted to 14 the Department under this Section shall be exercised 15 exclusively by the Department, and no other State agency may 16 concurrently exercise any such power unless specifically 17 authorized otherwise by a later enacted law. This subsection 18 is not intended to impair any contract existing as of 19 September 17, 1983. 20 However, no lease for more than 10,000 square feet of 21 space shall be executed unless the Director, in consultation 22 with the Executive Director of the Capital Development Board, 23 has certified that leasing is in the best interest of the 24 State, considering programmatic requirements, availability of 25 vacant State-owned space, the cost-benefits of purchasing or 26 constructing new space, and other criteria as he or she shall HB2878 Enrolled - 40 - LRB103 30786 RJT 57276 b HB2878 Enrolled- 41 -LRB103 30786 RJT 57276 b HB2878 Enrolled - 41 - LRB103 30786 RJT 57276 b HB2878 Enrolled - 41 - LRB103 30786 RJT 57276 b 1 determine. The Director shall not permit multiple leases for 2 less than 10,000 square feet to be executed in order to evade 3 this provision. 4 (g) To develop and implement, in cooperation with the 5 Interagency Energy Conservation Committee, a system for 6 evaluating energy consumption in facilities leased by the 7 Department, and to develop energy consumption standards for 8 use in evaluating prospective lease sites. 9 (h) (1) After June 1, 1998 (the effective date of Public 10 Act 90-520), the Department shall not enter into an 11 agreement for the installment purchase or lease purchase 12 of buildings, land, or facilities unless: 13 (A) the using agency certifies to the Department 14 that the agency reasonably expects that the building, 15 land, or facilities being considered for purchase will 16 meet a permanent space need; 17 (B) the building or facilities will be 18 substantially occupied by State agencies after 19 purchase (or after acceptance in the case of a build to 20 suit); 21 (C) the building or facilities shall be in new or 22 like new condition and have a remaining economic life 23 exceeding the term of the contract; 24 (D) no structural or other major building 25 component or system has a remaining economic life of 26 less than 10 years; HB2878 Enrolled - 41 - LRB103 30786 RJT 57276 b HB2878 Enrolled- 42 -LRB103 30786 RJT 57276 b HB2878 Enrolled - 42 - LRB103 30786 RJT 57276 b HB2878 Enrolled - 42 - LRB103 30786 RJT 57276 b 1 (E) the building, land, or facilities: 2 (i) is free of any identifiable environmental 3 hazard or 4 (ii) is subject to a management plan, provided 5 by the seller and acceptable to the State, to 6 address the known environmental hazard; 7 (F) the building, land, or facilities satisfy 8 applicable accessibility and applicable building 9 codes; and 10 (G) the State's cost to lease purchase or 11 installment purchase the building, land, or facilities 12 is less than the cost to lease space of comparable 13 quality, size, and location over the lease purchase or 14 installment purchase term. 15 (2) The Department shall establish the methodology for 16 comparing lease costs to the costs of installment or lease 17 purchases. The cost comparison shall take into account all 18 relevant cost factors, including, but not limited to, debt 19 service, operating and maintenance costs, insurance and 20 risk costs, real estate taxes, reserves for replacement 21 and repairs, security costs, and utilities. The 22 methodology shall also provide: 23 (A) that the comparison will be made using level 24 payment plans; and 25 (B) that a purchase price must not exceed the fair 26 market value of the buildings, land, or facilities and HB2878 Enrolled - 42 - LRB103 30786 RJT 57276 b HB2878 Enrolled- 43 -LRB103 30786 RJT 57276 b HB2878 Enrolled - 43 - LRB103 30786 RJT 57276 b HB2878 Enrolled - 43 - LRB103 30786 RJT 57276 b 1 that the purchase price must be substantiated by an 2 appraisal or by a competitive selection process. 3 (3) If the Department intends to enter into an 4 installment purchase or lease purchase agreement for 5 buildings, land, or facilities under circumstances that do 6 not satisfy the conditions specified by this Section, it 7 must issue a notice to the Secretary of the Senate and the 8 Clerk of the House. The notice shall contain (i) specific 9 details of the State's proposed purchase, including the 10 amounts, purposes, and financing terms; (ii) a specific 11 description of how the proposed purchase varies from the 12 procedures set forth in this Section; and (iii) a specific 13 justification, signed by the Director, stating why it is 14 in the State's best interests to proceed with the 15 purchase. The Department may not proceed with such an 16 installment purchase or lease purchase agreement if, 17 within 60 calendar days after delivery of the notice, the 18 General Assembly, by joint resolution, disapproves the 19 transaction. Delivery may take place on a day and at an 20 hour when the Senate and House are not in session so long 21 as the offices of Secretary and Clerk are open to receive 22 the notice. In determining the 60-day period within which 23 the General Assembly must act, the day on which delivery 24 is made to the Senate and House shall not be counted. If 25 delivery of the notice to the 2 houses occurs on different 26 days, the 60-day period shall begin on the day following HB2878 Enrolled - 43 - LRB103 30786 RJT 57276 b HB2878 Enrolled- 44 -LRB103 30786 RJT 57276 b HB2878 Enrolled - 44 - LRB103 30786 RJT 57276 b HB2878 Enrolled - 44 - LRB103 30786 RJT 57276 b 1 the later delivery. 2 (4) On or before February 15 of each year, the 3 Department shall submit an annual report to the Director 4 of the Governor's Office of Management and Budget and the 5 General Assembly regarding installment purchases or lease 6 purchases of buildings, land, or facilities that were 7 entered into during the preceding calendar year. The 8 report shall include a summary statement of the aggregate 9 amount of the State's obligations under those purchases; 10 specific details pertaining to each purchase, including 11 the amounts, purposes, and financing terms and payment 12 schedule for each purchase; and any other matter that the 13 Department deems advisable. The report shall also contain 14 an analysis of all leases that meet both of the following 15 criteria: (1) the lease contains a purchase option clause; 16 and (2) the third full year of the lease has been 17 completed. That analysis shall include, without 18 limitation, a recommendation of whether it is in the 19 State's best interest to exercise the purchase option or 20 to seek to renew the lease without exercising the clause. 21 The requirement for reporting shall be satisfied by 22 filing copies of the report with each of the following: 23 (1) the Auditor General; (2) the Chairs of the 24 Appropriations Committees; (3) the General Assembly and 25 the Commission on Government Forecasting and 26 Accountability as required by Section 3.1 of the General HB2878 Enrolled - 44 - LRB103 30786 RJT 57276 b HB2878 Enrolled- 45 -LRB103 30786 RJT 57276 b HB2878 Enrolled - 45 - LRB103 30786 RJT 57276 b HB2878 Enrolled - 45 - LRB103 30786 RJT 57276 b 1 Assembly Organizations Act; and (4) the State Government 2 Report Distribution Center for the General Assembly as is 3 required under paragraph (t) of Section 7 of the State 4 Library Act. 5 (Source: P.A. 99-143, eff. 7-27-15; 100-1109, eff. 1-1-19; 6 100-1148, eff. 12-10-18.) 7 ARTICLE 40. DISABILITY-SERVICE ORGANIZATIONS 8 Section 40-5. The Illinois Procurement Code is amended by 9 changing Section 45-35 as follows: 10 (30 ILCS 500/45-35) 11 Sec. 45-35. Not-for-profit agencies for persons with 12 significant disabilities. 13 (a) Qualification. Supplies and services may be procured 14 without advertising or calling for bids from any qualified 15 not-for-profit agency for persons with significant 16 disabilities that: 17 (1) complies with Illinois laws governing private 18 not-for-profit organizations; 19 (2) provides for payment of a wage for contractual 20 services under this Section that is no less than the 21 applicable local or Illinois minimum wage, whichever is 22 higher, for all employees performing work on the contract, 23 including subcontractors performing work on the contract; HB2878 Enrolled - 45 - LRB103 30786 RJT 57276 b HB2878 Enrolled- 46 -LRB103 30786 RJT 57276 b HB2878 Enrolled - 46 - LRB103 30786 RJT 57276 b HB2878 Enrolled - 46 - LRB103 30786 RJT 57276 b 1 is certified as a work center by the Wage and Hour Division 2 of the United States Department of Labor or is an 3 accredited vocational program that provides transition 4 services to youth between the ages of 14 1/2 and 22 in 5 accordance with individualized education plans under 6 Section 14-8.03 of the School Code and that provides 7 residential services at a child care institution, as 8 defined under Section 2.06 of the Child Care Act of 1969, 9 or at a group home, as defined under Section 2.16 of the 10 Child Care Act of 1969; and 11 (3) is (A) a disability-serving organization that is 12 accredited by a nationally-recognized accrediting 13 organization or licensed by the Department of Human 14 Services or (B) a Center for Independent Living. certified 15 as a developmental training provider by the Department of 16 Human Services. 17 (b) Participation. To participate, the not-for-profit 18 agency must have indicated an interest in providing the 19 supplies and services, must meet the specifications and needs 20 of the using agency, and must set a fair and reasonable price. 21 (c) Committee. There is created within the Department of 22 Central Management Services a committee to facilitate the 23 purchase of products and services from not-for-profit agencies 24 that provide employment opportunities to persons with physical 25 disabilities, intellectual or developmental disabilities, 26 mental illnesses, or any combination thereof. This committee HB2878 Enrolled - 46 - LRB103 30786 RJT 57276 b HB2878 Enrolled- 47 -LRB103 30786 RJT 57276 b HB2878 Enrolled - 47 - LRB103 30786 RJT 57276 b HB2878 Enrolled - 47 - LRB103 30786 RJT 57276 b 1 is called the State Use Committee. The State Use Committee 2 shall consist of the Director of the Department of Central 3 Management Services or his or her designee, the Secretary of 4 the Department of Human Services or his or her designee, the 5 Director of Commerce and Economic Opportunity or his or her 6 designee, one public member representing private business who 7 is knowledgeable of the employment needs and concerns of 8 persons with developmental disabilities, one public member 9 representing private business who is knowledgeable of the 10 needs and concerns of rehabilitation facilities, one public 11 member who is knowledgeable of the employment needs and 12 concerns of persons with developmental disabilities, one 13 public member who is knowledgeable of the needs and concerns 14 of rehabilitation facilities, 2 members who have a disability, 15 2 public members from a statewide association that represents 16 community-based rehabilitation facilities serving or 17 supporting individuals with intellectual or developmental 18 disabilities, and one public member from a disability-focused 19 statewide advocacy group, all appointed by the Governor. The 20 public members shall serve 2 year terms, commencing upon 21 appointment and every 2 years thereafter. A public member may 22 be reappointed, and vacancies shall be filled by appointment 23 for the completion of the term. In the event there is a vacancy 24 on the State Use Committee, the Governor must make an 25 appointment to fill that vacancy within 30 calendar days after 26 the notice of vacancy. The members shall serve without HB2878 Enrolled - 47 - LRB103 30786 RJT 57276 b HB2878 Enrolled- 48 -LRB103 30786 RJT 57276 b HB2878 Enrolled - 48 - LRB103 30786 RJT 57276 b HB2878 Enrolled - 48 - LRB103 30786 RJT 57276 b 1 compensation but shall be reimbursed for expenses at a rate 2 equal to that of State employees on a per diem basis by the 3 Department of Central Management Services. All members shall 4 be entitled to vote on issues before the State Use Committee. 5 The State Use Committee shall have the following powers 6 and duties: 7 (1) To request from any State agency information as to 8 product specification and service requirements in order to 9 carry out its purpose. 10 (2) To meet quarterly or more often as necessary to 11 carry out its purposes. 12 (3) To request a quarterly report from each 13 participating qualified not-for-profit agency for persons 14 with significant disabilities describing the volume of 15 sales for each product or service sold under this Section. 16 (4) To prepare a report for the Governor and General 17 Assembly no later than December 31 of each year. The 18 requirement for reporting to the General Assembly shall be 19 satisfied by following the procedures set forth in Section 20 3.1 of the General Assembly Organization Act. 21 (5) To prepare a publication that lists all supplies 22 and services currently available from any qualified 23 not-for-profit agency for persons with significant 24 disabilities. This list and any revisions shall be 25 distributed to all purchasing agencies. 26 (6) To encourage diversity in supplies and services HB2878 Enrolled - 48 - LRB103 30786 RJT 57276 b HB2878 Enrolled- 49 -LRB103 30786 RJT 57276 b HB2878 Enrolled - 49 - LRB103 30786 RJT 57276 b HB2878 Enrolled - 49 - LRB103 30786 RJT 57276 b 1 provided by qualified not-for-profit agencies for persons 2 with significant disabilities and discourage unnecessary 3 duplication or competition among not-for-profit agencies. 4 (7) To develop guidelines to be followed by qualifying 5 agencies for participation under the provisions of this 6 Section. Guidelines shall include a list of national 7 accrediting organizations which satisfy the requirements 8 of item (3) of subsection (a) of this Section. The 9 guidelines shall be developed within 6 months after the 10 effective date of this Code and made available on a 11 nondiscriminatory basis to all qualifying agencies. The 12 new guidelines required under this item (7) by Public Act 13 100-203 shall be developed within 6 months after August 14 18, 2017 (the effective date of Public Act 100-203) and 15 made available on a non-discriminatory basis to all 16 qualifying not-for-profit agencies. 17 (8) To review all pricing submitted under the 18 provisions of this Section and may approve a proposed 19 agreement for supplies or services where the price 20 submitted is fair and reasonable. Review of pricing under 21 this paragraph may include, but is not limited to: 22 (A) Amounts private businesses would pay for 23 similar products or services. 24 (B) Amounts the federal government would pay 25 contractors for similar products or services. 26 (C) The amount paid by the State for similar HB2878 Enrolled - 49 - LRB103 30786 RJT 57276 b HB2878 Enrolled- 50 -LRB103 30786 RJT 57276 b HB2878 Enrolled - 50 - LRB103 30786 RJT 57276 b HB2878 Enrolled - 50 - LRB103 30786 RJT 57276 b 1 products or services. 2 (D) The actual cost of manufacturing the product 3 or performing a service at a community rehabilitation 4 program offering employment services on or off 5 premises to persons with disabilities or mental 6 illnesses, with adequate consideration given to legal 7 and moral imperatives to pay workers with disabilities 8 equitable wages. 9 (E) The usual, customary, and reasonable costs of 10 manufacturing, marketing, and distribution. 11 (9) To, not less than every 3 years, adopt a strategic 12 plan for increasing the number of products and services 13 purchased from qualified not-for-profit agencies for 14 persons with disabilities or mental illnesses, including 15 the feasibility of developing mandatory set-aside 16 contracts. 17 (c-5) Conditions for Use. Each chief procurement officer 18 shall, in consultation with the State Use Committee, determine 19 which articles, materials, services, food stuffs, and supplies 20 that are produced, manufactured, or provided by persons with 21 significant disabilities in qualified not-for-profit agencies 22 shall be given preference by purchasing agencies procuring 23 those items. 24 (d) (Blank). 25 (e) Subcontracts. Subcontracts shall be permitted for 26 agreements authorized under this Section. For the purposes of HB2878 Enrolled - 50 - LRB103 30786 RJT 57276 b HB2878 Enrolled- 51 -LRB103 30786 RJT 57276 b HB2878 Enrolled - 51 - LRB103 30786 RJT 57276 b HB2878 Enrolled - 51 - LRB103 30786 RJT 57276 b 1 this subsection (e), "subcontract" means any acquisition from 2 another source of supplies, not including raw materials, or 3 services required by a qualified not-for-profit agency to 4 provide the supplies or services that are the subject of the 5 contract between the State and the qualified not-for-profit 6 agency. 7 The State Use Committee shall develop guidelines to be 8 followed by qualified not-for-profit agencies when seeking and 9 establishing subcontracts with other persons or not-for-profit 10 agencies in order to fulfill State contract requirements. 11 These guidelines shall include the following: 12 (i) The State Use Committee must approve all 13 subcontracts and substantive amendments to subcontracts 14 prior to execution or amendment of the subcontract. 15 (ii) A qualified not-for-profit agency shall not enter 16 into a subcontract, or any combination of subcontracts, to 17 fulfill an entire requirement, contract, or order without 18 written State Use Committee approval. 19 (iii) A qualified not-for-profit agency shall make 20 reasonable efforts to utilize subcontracts with other 21 not-for-profit agencies for persons with significant 22 disabilities. 23 (iv) For any subcontract not currently performed by a 24 qualified not-for-profit agency, the primary qualified 25 not-for-profit agency must provide to the State Use 26 Committee the following: (A) a written explanation as to HB2878 Enrolled - 51 - LRB103 30786 RJT 57276 b HB2878 Enrolled- 52 -LRB103 30786 RJT 57276 b HB2878 Enrolled - 52 - LRB103 30786 RJT 57276 b HB2878 Enrolled - 52 - LRB103 30786 RJT 57276 b 1 why the subcontract is not performed by a qualified 2 not-for-profit agency, and (B) a written plan to transfer 3 the subcontract to a qualified not-for-profit agency, as 4 reasonable. 5 (Source: P.A. 102-343, eff. 8-13-21; 102-558, eff. 8-20-21.) 6 ARTICLE 45. REIMAGINING HOTEL FLORENCE ACT 7 Section 45-1. Short title. This Act may be cited as the 8 Reimagining Hotel Florence Act. References in this Article to 9 "this Act" mean this Article. 10 Section 45-5. Legislative intent. Originally built in 11 1881, the Hotel Florence is located within the Pullman 12 Historic District and was placed on the National Register of 13 Historic Places in 1969 and was designated a National Historic 14 Landmark on December 30, 1970. To save it from demolition the 15 Historic Pullman Foundation purchased the hotel in 1975 and 16 maintained ownership until 1991 when the State of Illinois 17 took title of the building. The Hotel Florence is continually 18 closed for renovations and is a semi-closed public space. 19 The hotel sits next to the Pullman National Historic 20 Landmark District, which was designated as a National Monument 21 in 2015 and recently redesignated as Illinois's first National 22 Park on December 29, 2022 and is operated by the U.S. National 23 Park Service. This redesignation allows for the National Park HB2878 Enrolled - 52 - LRB103 30786 RJT 57276 b HB2878 Enrolled- 53 -LRB103 30786 RJT 57276 b HB2878 Enrolled - 53 - LRB103 30786 RJT 57276 b HB2878 Enrolled - 53 - LRB103 30786 RJT 57276 b 1 Service to enter into cooperative agreements with outside 2 parties for interpretive and educational programs at 3 nonfederal historic properties within the boundaries of the 4 park and to provide assistance for the preservation of 5 nonfederal land within the boundaries of the historical park 6 and at sites in close proximity to it, which may include the 7 Hotel Florence. 8 The General Assembly has allocated $21,000,000 in capital 9 infrastructure funds to aid in the redevelopment of the Hotel 10 Florence. 11 The General Assembly finds that allowing for the 12 Department of Natural Resources to enter into a public-private 13 partnership that will allow the Hotel Florence to become a 14 fully reactivated space in a timely manner that is in the 15 public benefit of the State and the local Pullman community. 16 Section 45-10. Definitions. In this Act: 17 "Agreement" means a public-private agreement. 18 "Contractor" means a person that has been selected to 19 enter or has entered into a public-private agreement with the 20 Department on behalf of the State for the development, 21 financing, construction, management, or operation of the Hotel 22 Florence pursuant to this Act. 23 "Department" means the Department of Natural Resources. 24 "Hotel Florence" means real property in City of Chicago 25 located within the Pullman Historic District that is owned by HB2878 Enrolled - 53 - LRB103 30786 RJT 57276 b HB2878 Enrolled- 54 -LRB103 30786 RJT 57276 b HB2878 Enrolled - 54 - LRB103 30786 RJT 57276 b HB2878 Enrolled - 54 - LRB103 30786 RJT 57276 b 1 the Illinois Department of Natural Resources and was acquired 2 in 1991, at the address of 11111 S. Forrestville Avenue, 3 Chicago, Illinois, as well as the adjacent Hotel Florence 4 Annex building located at 537 East 111th Street, Chicago, 5 Illinois 60628 and any associated grounds connected to either 6 property. 7 "Maintain" or "maintenance" includes ordinary maintenance, 8 repair, rehabilitation, capital maintenance, maintenance 9 replacement, and any other categories of maintenance that may 10 be designated by the Department. 11 "Offeror" means a person that responds to a request for 12 proposals under this Act. 13 "Operate" or "operation" means to do one or more of the 14 following: maintain, improve, equip, modify, or otherwise 15 operate. 16 "Person" means any individual, firm, association, joint 17 venture, partnership, estate, trust, syndicate, fiduciary, 18 corporation, or any other legal entity, group, or combination 19 thereof. 20 "Public-private agreement" means an agreement or contract 21 between the Department on behalf of the State and all 22 schedules, exhibits, and attachments thereto, entered into 23 pursuant to a competitive request for proposals process 24 governed by this Act, for the development, financing, 25 construction, management, or operation of the Hotel Florence 26 under this Act. HB2878 Enrolled - 54 - LRB103 30786 RJT 57276 b HB2878 Enrolled- 55 -LRB103 30786 RJT 57276 b HB2878 Enrolled - 55 - LRB103 30786 RJT 57276 b HB2878 Enrolled - 55 - LRB103 30786 RJT 57276 b 1 "Revenues" means all revenues, including, but not limited 2 to, income, user fees, earnings, interest, lease payments, 3 allocations, moneys from the federal government, the State, 4 and units of local government, including, but not limited to, 5 federal, State, and local appropriations, grants, loans, lines 6 of credit, and credit guarantees; bond proceeds; equity 7 investments; service payments; or other receipts arising out 8 of or in connection with the financing, development, 9 construction, management, or operation of the Hotel Florence. 10 "State" means the State of Illinois. 11 Section 45-15. Authority to enter public-private 12 agreement. 13 (a) Notwithstanding any provision of law to the contrary, 14 the Department on behalf of the State may, pursuant to a 15 competitive request for proposals process governed by the 16 Illinois Procurement Code, rules adopted under that Code, and 17 this Act, enter into a public-private agreement to develop, 18 finance, construct, lease, manage, or operate the Hotel 19 Florence on behalf of the State, pursuant to which the 20 contractors may receive certain revenues, including management 21 or user fees in consideration of the payment of moneys to the 22 State for that right. 23 (b) The term of a public-private agreement shall be no 24 less than 25 years and no more than 75 years. 25 (c) The term of a public-private agreement may be HB2878 Enrolled - 55 - LRB103 30786 RJT 57276 b HB2878 Enrolled- 56 -LRB103 30786 RJT 57276 b HB2878 Enrolled - 56 - LRB103 30786 RJT 57276 b HB2878 Enrolled - 56 - LRB103 30786 RJT 57276 b 1 extended, but only if the extension is specifically authorized 2 by the General Assembly by law. 3 Section 45-20. Procurement; prequalification. The 4 Department may establish a process for prequalification of 5 offerors. If the Department does create such a process, it 6 shall: 7 (1) provide a public notice of the prequalification at 8 least 30 days prior to the date on which applications are 9 due; 10 (2) set forth requirements and evaluation criteria in 11 order to become prequalified; 12 (3) determine which offerors that have submitted 13 prequalification applications, if any, meet the 14 requirements and evaluation criteria; and 15 (4) allow only those offerors that have been 16 prequalified to respond to the request for proposals. 17 Section 45-25. Request for proposals process to enter into 18 public-private agreement. 19 (a) Notwithstanding any provision of law to the contrary, 20 the Department on behalf of the State shall select a 21 contractor through a competitive request for proposals process 22 governed by the Illinois Procurement Code and rules adopted 23 under that Code and this Act. 24 (b) The competitive request for proposals process shall, HB2878 Enrolled - 56 - LRB103 30786 RJT 57276 b HB2878 Enrolled- 57 -LRB103 30786 RJT 57276 b HB2878 Enrolled - 57 - LRB103 30786 RJT 57276 b HB2878 Enrolled - 57 - LRB103 30786 RJT 57276 b 1 at a minimum, solicit statements of qualification and 2 proposals from offerors. 3 (c) The competitive request for proposals process shall, 4 at a minimum, take into account the following criteria: 5 (1) the offeror's plans for the Hotel Florence 6 project; 7 (2) the offeror's current and past business practices; 8 (3) the offeror's poor or inadequate past performance 9 in developing, financing, constructing, managing, or 10 operating historic landmark properties or other public 11 assets; 12 (4) the offeror's ability to meet and past performance 13 in meeting or exhausting good faith efforts to meet the 14 utilization goals for business enterprises established in 15 the Business Enterprise for Minorities, Women, and Persons 16 with Disabilities Act; 17 (5) the offeror's ability to comply with and past 18 performance in complying with Section 2-105 of the 19 Illinois Human Rights Act; and 20 (6) the offeror's plans to comply with the Business 21 Enterprise for Minorities, Women, and Persons with 22 Disabilities Act and Section 2-105 of the Illinois Human 23 Rights Act. 24 (d) The Department shall not include terms in the request 25 for proposals that provide an advantage, whether directly or 26 indirectly, to any contractor presently providing goods, HB2878 Enrolled - 57 - LRB103 30786 RJT 57276 b HB2878 Enrolled- 58 -LRB103 30786 RJT 57276 b HB2878 Enrolled - 58 - LRB103 30786 RJT 57276 b HB2878 Enrolled - 58 - LRB103 30786 RJT 57276 b 1 services, or equipment to the Department. 2 (e) The Department shall select one or more offerors as 3 finalists. 4 (f) After the procedures required in this Section have 5 been completed, the Department shall make a determination as 6 to whether the offeror should be designated as the contractor 7 for the Hotel Florence project and shall submit the decision 8 to the Governor and to the Governor's Office of Management and 9 Budget. After review of the Department's determination, the 10 Governor may accept or reject the determination. If the 11 Governor accepts the determination of the Department, the 12 Governor shall designate the offeror for the Hotel Florence 13 project. 14 Section 45-30. Provisions of the public-private agreement. 15 (a) The public-private agreement shall include all of the 16 following: 17 (1) the term of the public-private agreement that is 18 consistent with Section 45-40; 19 (2) the powers, duties, responsibilities, obligations, 20 and functions of the Department and the contractor; 21 (3) compensation or payments to the Department, if 22 applicable; 23 (4) compensation or payments to the contractor, if 24 applicable; 25 (5) a provision specifying that the Department: HB2878 Enrolled - 58 - LRB103 30786 RJT 57276 b HB2878 Enrolled- 59 -LRB103 30786 RJT 57276 b HB2878 Enrolled - 59 - LRB103 30786 RJT 57276 b HB2878 Enrolled - 59 - LRB103 30786 RJT 57276 b 1 (A) has ready access to information regarding the 2 contractor's powers, duties, responsibilities, 3 obligations, and functions under the public-private 4 agreement; 5 (B) has the right to demand and receive 6 information from the contractor concerning any aspect 7 of the contractor's powers, duties, responsibilities, 8 obligations, and functions under the public-private 9 agreement; and 10 (C) has the authority to direct or countermand 11 decisions by the contractor at any time; 12 (6) a provision imposing an affirmative duty on the 13 contractor to provide the Department with any information 14 the contractor reasonably believes the Department would 15 want to know or would need to know to enable the Department 16 to exercise its powers, carry out its duties, 17 responsibilities, and obligations, and perform its 18 functions under this Act or the public-private agreement 19 or as otherwise required by law; 20 (7) the authority of the Department to enter into 21 contracts with third parties pursuant to Section 45-40; 22 (8) the authority of the Department to request that 23 the contractor reimburse the Department for third party 24 consultants related to the monitoring the project; 25 (9) a provision governing the contractor's authority 26 to negotiate and execute subcontracts with third parties; HB2878 Enrolled - 59 - LRB103 30786 RJT 57276 b HB2878 Enrolled- 60 -LRB103 30786 RJT 57276 b HB2878 Enrolled - 60 - LRB103 30786 RJT 57276 b HB2878 Enrolled - 60 - LRB103 30786 RJT 57276 b 1 (10) the authority of the contractor to impose user 2 fees and the amounts of those fees; 3 (11) a provision governing the deposit and allocation 4 of revenues including user fees; 5 (12) a provision governing rights to real and personal 6 property of the State, the Department, the contractor, and 7 other third parties; 8 (13) grounds for termination of the agreement by the 9 Department or the contractor and a restatement of the 10 Department's rights under this Act; 11 (14) a requirement that the contractor enter into a 12 project labor agreement; 13 (15) a provision stating that construction contractors 14 shall comply with the requirements of Section 30-22 of the 15 Illinois Procurement Code; 16 (16) rights and remedies of the Department if the 17 contractor defaults or otherwise fails to comply with the 18 terms of the agreement; 19 (17) procedures for amendment to the agreement; and 20 (18) all other terms, conditions, and provisions 21 acceptable to the Department that the Department deems 22 necessary and proper and in the public interest. 23 Section 45-35. Time limitations. The Department shall 24 issue a request for proposals within 6 months after the 25 effective date of this Act. The Department shall have 6 months HB2878 Enrolled - 60 - LRB103 30786 RJT 57276 b HB2878 Enrolled- 61 -LRB103 30786 RJT 57276 b HB2878 Enrolled - 61 - LRB103 30786 RJT 57276 b HB2878 Enrolled - 61 - LRB103 30786 RJT 57276 b 1 from the date of issuance of the request for proposals to 2 select a contractor. 3 Section 45-40. Term of agreement; reversion of property to 4 the Department. 5 (a) The Department may terminate the contractor's 6 authority and duties under the public-private agreement on the 7 date set forth in the public-private agreement. 8 (b) Upon termination of the public-private agreement, the 9 authority and duties of the contractor under this Act cease, 10 except for those duties and obligations that extend beyond the 11 termination, as set forth in the public-private agreement, and 12 all interests in the Hotel Florence shall revert to the 13 Department. 14 Section 45-45. Prohibited local action; home rule. A unit 15 of local government, including a home rule unit, may not take 16 any action that would have the effect of impairing the 17 public-private agreement under this Act. This Section is a 18 denial and limitation of home rule powers and functions under 19 subsection (h) of Section 6 of Article VII of the Illinois 20 Constitution. 21 Section 45-50. Powers liberally construed. The powers 22 conferred by this Act shall be liberally construed in order to 23 accomplish their purposes and shall be in addition and HB2878 Enrolled - 61 - LRB103 30786 RJT 57276 b HB2878 Enrolled- 62 -LRB103 30786 RJT 57276 b HB2878 Enrolled - 62 - LRB103 30786 RJT 57276 b HB2878 Enrolled - 62 - LRB103 30786 RJT 57276 b 1 supplemental to the powers conferred by any other law. If any 2 other law or rule is inconsistent with this Act, this Act is 3 controlling as to any public-private agreement entered into 4 under this Act. 5 Section 45-55. Full and complete authority. This Act 6 contains full and complete authority for agreements and leases 7 with private entities to carry out the activities described in 8 this Act. Except as otherwise required by law, no procedure, 9 proceedings, publications, notices, consents, approvals, 10 orders, or acts by the Department or any other State or local 11 agency or official are required to enter into an agreement or 12 lease. 13 ARTICLE 50. DURATION OF CONTRACTS 14 Section 50-5. The Illinois Procurement Code is amended by 15 changing Section 20-60 as follows: 16 (30 ILCS 500/20-60) 17 Sec. 20-60. Duration of contracts. 18 (a) Maximum duration. A contract may be entered into for 19 any period of time deemed to be in the best interests of the 20 State but not exceeding 10 years inclusive, beginning January 21 1, 2010, of proposed contract renewals; provided, however, in 22 connection with the issuance of certificates of participation HB2878 Enrolled - 62 - LRB103 30786 RJT 57276 b HB2878 Enrolled- 63 -LRB103 30786 RJT 57276 b HB2878 Enrolled - 63 - LRB103 30786 RJT 57276 b HB2878 Enrolled - 63 - LRB103 30786 RJT 57276 b 1 or bonds, the governing board of a public institution of 2 higher education may enter into contracts in excess of 10 3 years but not to exceed 30 years for the purpose of financing 4 or refinancing real or personal property. Third parties may 5 lease State-owned dark fiber networks for any period of time 6 deemed to be in the best interest of the State, but not 7 exceeding 20 years. The length of a lease for real property or 8 capital improvements shall be in accordance with the 9 provisions of Section 40-25. The length of energy conservation 10 program contracts or energy savings contracts or leases shall 11 be in accordance with the provisions of Section 25-45. A 12 contract for bond or mortgage insurance awarded by the 13 Illinois Housing Development Authority, however, may be 14 entered into for any period of time less than or equal to the 15 maximum period of time that the subject bond or mortgage may 16 remain outstanding. 17 (b) Subject to appropriation. All contracts made or 18 entered into shall recite that they are subject to termination 19 and cancellation in any year for which the General Assembly 20 fails to make an appropriation to make payments under the 21 terms of the contract. 22 (c) The chief procurement officer shall file a proposed 23 extension or renewal of a contract with the Procurement Policy 24 Board and the Commission on Equity and Inclusion prior to 25 entering into any extension or renewal if the cost associated 26 with the extension or renewal exceeds $249,999. The HB2878 Enrolled - 63 - LRB103 30786 RJT 57276 b HB2878 Enrolled- 64 -LRB103 30786 RJT 57276 b HB2878 Enrolled - 64 - LRB103 30786 RJT 57276 b HB2878 Enrolled - 64 - LRB103 30786 RJT 57276 b 1 Procurement Policy Board or the Commission on Equity and 2 Inclusion may object to the proposed extension or renewal 3 within 14 calendar days and require a hearing before the Board 4 or the Commission on Equity and Inclusion prior to entering 5 into the extension or renewal. If the Procurement Policy Board 6 or the Commission on Equity and Inclusion does not object 7 within 14 calendar days or takes affirmative action to 8 recommend the extension or renewal, the chief procurement 9 officer may enter into the extension or renewal of a contract. 10 This subsection does not apply to any emergency procurement, 11 any procurement under Article 40, or any procurement exempted 12 by Section 1-10(b) of this Code. If any State agency contract 13 is paid for in whole or in part with federal-aid funds, grants, 14 or loans and the provisions of this subsection would result in 15 the loss of those federal-aid funds, grants, or loans, then 16 the contract is exempt from the provisions of this subsection 17 in order to remain eligible for those federal-aid funds, 18 grants, or loans, and the State agency shall file notice of 19 this exemption with the Procurement Policy Board or the 20 Commission on Equity and Inclusion prior to entering into the 21 proposed extension or renewal. Nothing in this subsection 22 permits a chief procurement officer to enter into an extension 23 or renewal in violation of subsection (a). By August 1 each 24 year, the Procurement Policy Board and the Commission on 25 Equity and Inclusion shall each file a report with the General 26 Assembly identifying for the previous fiscal year (i) the HB2878 Enrolled - 64 - LRB103 30786 RJT 57276 b HB2878 Enrolled- 65 -LRB103 30786 RJT 57276 b HB2878 Enrolled - 65 - LRB103 30786 RJT 57276 b HB2878 Enrolled - 65 - LRB103 30786 RJT 57276 b 1 proposed extensions or renewals that were filed and whether 2 such extensions and renewals were objected to and (ii) the 3 contracts exempt from this subsection. 4 (d) Notwithstanding the provisions of subsection (a) of 5 this Section, the Department of Innovation and Technology may 6 enter into leases for dark fiber networks for any period of 7 time deemed to be in the best interests of the State but not 8 exceeding 20 years inclusive. The Department of Innovation and 9 Technology may lease dark fiber networks from third parties 10 only for the primary purpose of providing services (i) to the 11 offices of Governor, Lieutenant Governor, Attorney General, 12 Secretary of State, Comptroller, or Treasurer and State 13 agencies, as defined under Section 5-15 of the Civil 14 Administrative Code of Illinois or (ii) for anchor 15 institutions, as defined in Section 7 of the Illinois Century 16 Network Act. Dark fiber network lease contracts shall be 17 subject to all other provisions of this Code and any 18 applicable rules or requirements, including, but not limited 19 to, publication of lease solicitations, use of standard State 20 contracting terms and conditions, and approval of vendor 21 certifications and financial disclosures. 22 (e) As used in this Section, "dark fiber network" means a 23 network of fiber optic cables laid but currently unused by a 24 third party that the third party is leasing for use as network 25 infrastructure. 26 (f) No vendor shall be eligible for renewal of a contract HB2878 Enrolled - 65 - LRB103 30786 RJT 57276 b HB2878 Enrolled- 66 -LRB103 30786 RJT 57276 b HB2878 Enrolled - 66 - LRB103 30786 RJT 57276 b HB2878 Enrolled - 66 - LRB103 30786 RJT 57276 b 1 when that vendor has failed to meet the goals agreed to in the 2 vendor's utilization plan, as defined in Section 2 of the 3 Business Enterprise for Minorities, Women, and Persons with 4 Disabilities Act, unless the State agency or public 5 institution of higher education has determined that the vendor 6 made good faith efforts toward meeting the contract goals. If 7 the State agency or public institution of higher education 8 determines that the vendor made good faith efforts, the agency 9 or public institution of higher education may issue a waiver 10 after concurrence by the chief procurement officer, which 11 shall not be unreasonably withheld or impair a State agency 12 determination to execute the renewal. The form and content of 13 the waiver shall be prescribed by each chief procurement 14 officer, but shall not impair a State agency or public 15 institution of higher education determination to execute the 16 renewal. The chief procurement officer shall post the 17 completed form on his or her official website within 5 18 business days after receipt from the State agency or public 19 institution of higher education. The chief procurement officer 20 shall maintain on his or her official website a database of 21 waivers granted under this Section with respect to contracts 22 under his or her jurisdiction. The database shall be updated 23 periodically and shall be searchable by contractor name and by 24 contracting State agency or public institution of higher 25 education. 26 (Source: P.A. 101-81, eff. 7-12-19; 101-657, Article 5, HB2878 Enrolled - 66 - LRB103 30786 RJT 57276 b HB2878 Enrolled- 67 -LRB103 30786 RJT 57276 b HB2878 Enrolled - 67 - LRB103 30786 RJT 57276 b HB2878 Enrolled - 67 - LRB103 30786 RJT 57276 b 1 Section 5-5, eff. 7-1-21 (See Section 25 of P.A. 102-29 for 2 effective date of P.A. 101-657, Article 5, Section 5-5); 3 101-657, Article 40, Section 40-125, eff. 1-1-22; 102-29, eff. 4 6-25-21; 102-721, eff. 1-1-23.) 5 ARTICLE 55. PUBLIC EDUCATION PROGRAMMING 6 Section 55-5. The Illinois Procurement Code is amended by 7 changing Section 1-10 as follows: 8 (30 ILCS 500/1-10) 9 Sec. 1-10. Application. 10 (a) This Code applies only to procurements for which 11 bidders, offerors, potential contractors, or contractors were 12 first solicited on or after July 1, 1998. This Code shall not 13 be construed to affect or impair any contract, or any 14 provision of a contract, entered into based on a solicitation 15 prior to the implementation date of this Code as described in 16 Article 99, including, but not limited to, any covenant 17 entered into with respect to any revenue bonds or similar 18 instruments. All procurements for which contracts are 19 solicited between the effective date of Articles 50 and 99 and 20 July 1, 1998 shall be substantially in accordance with this 21 Code and its intent. 22 (b) This Code shall apply regardless of the source of the 23 funds with which the contracts are paid, including federal HB2878 Enrolled - 67 - LRB103 30786 RJT 57276 b HB2878 Enrolled- 68 -LRB103 30786 RJT 57276 b HB2878 Enrolled - 68 - LRB103 30786 RJT 57276 b HB2878 Enrolled - 68 - LRB103 30786 RJT 57276 b 1 assistance moneys. This Code shall not apply to: 2 (1) Contracts between the State and its political 3 subdivisions or other governments, or between State 4 governmental bodies, except as specifically provided in 5 this Code. 6 (2) Grants, except for the filing requirements of 7 Section 20-80. 8 (3) Purchase of care, except as provided in Section 9 5-30.6 of the Illinois Public Aid Code and this Section. 10 (4) Hiring of an individual as an employee and not as 11 an independent contractor, whether pursuant to an 12 employment code or policy or by contract directly with 13 that individual. 14 (5) Collective bargaining contracts. 15 (6) Purchase of real estate, except that notice of 16 this type of contract with a value of more than $25,000 17 must be published in the Procurement Bulletin within 10 18 calendar days after the deed is recorded in the county of 19 jurisdiction. The notice shall identify the real estate 20 purchased, the names of all parties to the contract, the 21 value of the contract, and the effective date of the 22 contract. 23 (7) Contracts necessary to prepare for anticipated 24 litigation, enforcement actions, or investigations, 25 provided that the chief legal counsel to the Governor 26 shall give his or her prior approval when the procuring HB2878 Enrolled - 68 - LRB103 30786 RJT 57276 b HB2878 Enrolled- 69 -LRB103 30786 RJT 57276 b HB2878 Enrolled - 69 - LRB103 30786 RJT 57276 b HB2878 Enrolled - 69 - LRB103 30786 RJT 57276 b 1 agency is one subject to the jurisdiction of the Governor, 2 and provided that the chief legal counsel of any other 3 procuring entity subject to this Code shall give his or 4 her prior approval when the procuring entity is not one 5 subject to the jurisdiction of the Governor. 6 (8) (Blank). 7 (9) Procurement expenditures by the Illinois 8 Conservation Foundation when only private funds are used. 9 (10) (Blank). 10 (11) Public-private agreements entered into according 11 to the procurement requirements of Section 20 of the 12 Public-Private Partnerships for Transportation Act and 13 design-build agreements entered into according to the 14 procurement requirements of Section 25 of the 15 Public-Private Partnerships for Transportation Act. 16 (12) (A) Contracts for legal, financial, and other 17 professional and artistic services entered into by the 18 Illinois Finance Authority in which the State of Illinois 19 is not obligated. Such contracts shall be awarded through 20 a competitive process authorized by the members of the 21 Illinois Finance Authority and are subject to Sections 22 5-30, 20-160, 50-13, 50-20, 50-35, and 50-37 of this Code, 23 as well as the final approval by the members of the 24 Illinois Finance Authority of the terms of the contract. 25 (B) Contracts for legal and financial services entered 26 into by the Illinois Housing Development Authority in HB2878 Enrolled - 69 - LRB103 30786 RJT 57276 b HB2878 Enrolled- 70 -LRB103 30786 RJT 57276 b HB2878 Enrolled - 70 - LRB103 30786 RJT 57276 b HB2878 Enrolled - 70 - LRB103 30786 RJT 57276 b 1 connection with the issuance of bonds in which the State 2 of Illinois is not obligated. Such contracts shall be 3 awarded through a competitive process authorized by the 4 members of the Illinois Housing Development Authority and 5 are subject to Sections 5-30, 20-160, 50-13, 50-20, 50-35, 6 and 50-37 of this Code, as well as the final approval by 7 the members of the Illinois Housing Development Authority 8 of the terms of the contract. 9 (13) Contracts for services, commodities, and 10 equipment to support the delivery of timely forensic 11 science services in consultation with and subject to the 12 approval of the Chief Procurement Officer as provided in 13 subsection (d) of Section 5-4-3a of the Unified Code of 14 Corrections, except for the requirements of Sections 15 20-60, 20-65, 20-70, and 20-160 and Article 50 of this 16 Code; however, the Chief Procurement Officer may, in 17 writing with justification, waive any certification 18 required under Article 50 of this Code. For any contracts 19 for services which are currently provided by members of a 20 collective bargaining agreement, the applicable terms of 21 the collective bargaining agreement concerning 22 subcontracting shall be followed. 23 On and after January 1, 2019, this paragraph (13), 24 except for this sentence, is inoperative. 25 (14) Contracts for participation expenditures required 26 by a domestic or international trade show or exhibition of HB2878 Enrolled - 70 - LRB103 30786 RJT 57276 b HB2878 Enrolled- 71 -LRB103 30786 RJT 57276 b HB2878 Enrolled - 71 - LRB103 30786 RJT 57276 b HB2878 Enrolled - 71 - LRB103 30786 RJT 57276 b 1 an exhibitor, member, or sponsor. 2 (15) Contracts with a railroad or utility that 3 requires the State to reimburse the railroad or utilities 4 for the relocation of utilities for construction or other 5 public purpose. Contracts included within this paragraph 6 (15) shall include, but not be limited to, those 7 associated with: relocations, crossings, installations, 8 and maintenance. For the purposes of this paragraph (15), 9 "railroad" means any form of non-highway ground 10 transportation that runs on rails or electromagnetic 11 guideways and "utility" means: (1) public utilities as 12 defined in Section 3-105 of the Public Utilities Act, (2) 13 telecommunications carriers as defined in Section 13-202 14 of the Public Utilities Act, (3) electric cooperatives as 15 defined in Section 3.4 of the Electric Supplier Act, (4) 16 telephone or telecommunications cooperatives as defined in 17 Section 13-212 of the Public Utilities Act, (5) rural 18 water or waste water systems with 10,000 connections or 19 less, (6) a holder as defined in Section 21-201 of the 20 Public Utilities Act, and (7) municipalities owning or 21 operating utility systems consisting of public utilities 22 as that term is defined in Section 11-117-2 of the 23 Illinois Municipal Code. 24 (16) Procurement expenditures necessary for the 25 Department of Public Health to provide the delivery of 26 timely newborn screening services in accordance with the HB2878 Enrolled - 71 - LRB103 30786 RJT 57276 b HB2878 Enrolled- 72 -LRB103 30786 RJT 57276 b HB2878 Enrolled - 72 - LRB103 30786 RJT 57276 b HB2878 Enrolled - 72 - LRB103 30786 RJT 57276 b 1 Newborn Metabolic Screening Act. 2 (17) Procurement expenditures necessary for the 3 Department of Agriculture, the Department of Financial and 4 Professional Regulation, the Department of Human Services, 5 and the Department of Public Health to implement the 6 Compassionate Use of Medical Cannabis Program and Opioid 7 Alternative Pilot Program requirements and ensure access 8 to medical cannabis for patients with debilitating medical 9 conditions in accordance with the Compassionate Use of 10 Medical Cannabis Program Act. 11 (18) This Code does not apply to any procurements 12 necessary for the Department of Agriculture, the 13 Department of Financial and Professional Regulation, the 14 Department of Human Services, the Department of Commerce 15 and Economic Opportunity, and the Department of Public 16 Health to implement the Cannabis Regulation and Tax Act if 17 the applicable agency has made a good faith determination 18 that it is necessary and appropriate for the expenditure 19 to fall within this exemption and if the process is 20 conducted in a manner substantially in accordance with the 21 requirements of Sections 20-160, 25-60, 30-22, 50-5, 22 50-10, 50-10.5, 50-12, 50-13, 50-15, 50-20, 50-21, 50-35, 23 50-36, 50-37, 50-38, and 50-50 of this Code; however, for 24 Section 50-35, compliance applies only to contracts or 25 subcontracts over $100,000. Notice of each contract 26 entered into under this paragraph (18) that is related to HB2878 Enrolled - 72 - LRB103 30786 RJT 57276 b HB2878 Enrolled- 73 -LRB103 30786 RJT 57276 b HB2878 Enrolled - 73 - LRB103 30786 RJT 57276 b HB2878 Enrolled - 73 - LRB103 30786 RJT 57276 b 1 the procurement of goods and services identified in 2 paragraph (1) through (9) of this subsection shall be 3 published in the Procurement Bulletin within 14 calendar 4 days after contract execution. The Chief Procurement 5 Officer shall prescribe the form and content of the 6 notice. Each agency shall provide the Chief Procurement 7 Officer, on a monthly basis, in the form and content 8 prescribed by the Chief Procurement Officer, a report of 9 contracts that are related to the procurement of goods and 10 services identified in this subsection. At a minimum, this 11 report shall include the name of the contractor, a 12 description of the supply or service provided, the total 13 amount of the contract, the term of the contract, and the 14 exception to this Code utilized. A copy of any or all of 15 these contracts shall be made available to the Chief 16 Procurement Officer immediately upon request. The Chief 17 Procurement Officer shall submit a report to the Governor 18 and General Assembly no later than November 1 of each year 19 that includes, at a minimum, an annual summary of the 20 monthly information reported to the Chief Procurement 21 Officer. This exemption becomes inoperative 5 years after 22 June 25, 2019 (the effective date of Public Act 101-27). 23 (19) Acquisition of modifications or adjustments, 24 limited to assistive technology devices and assistive 25 technology services, adaptive equipment, repairs, and 26 replacement parts to provide reasonable accommodations (i) HB2878 Enrolled - 73 - LRB103 30786 RJT 57276 b HB2878 Enrolled- 74 -LRB103 30786 RJT 57276 b HB2878 Enrolled - 74 - LRB103 30786 RJT 57276 b HB2878 Enrolled - 74 - LRB103 30786 RJT 57276 b 1 that enable a qualified applicant with a disability to 2 complete the job application process and be considered for 3 the position such qualified applicant desires, (ii) that 4 modify or adjust the work environment to enable a 5 qualified current employee with a disability to perform 6 the essential functions of the position held by that 7 employee, (iii) to enable a qualified current employee 8 with a disability to enjoy equal benefits and privileges 9 of employment as are enjoyed by other similarly situated 10 employees without disabilities, and (iv) that allow a 11 customer, client, claimant, or member of the public 12 seeking State services full use and enjoyment of and 13 access to its programs, services, or benefits. 14 For purposes of this paragraph (19): 15 "Assistive technology devices" means any item, piece 16 of equipment, or product system, whether acquired 17 commercially off the shelf, modified, or customized, that 18 is used to increase, maintain, or improve functional 19 capabilities of individuals with disabilities. 20 "Assistive technology services" means any service that 21 directly assists an individual with a disability in 22 selection, acquisition, or use of an assistive technology 23 device. 24 "Qualified" has the same meaning and use as provided 25 under the federal Americans with Disabilities Act when 26 describing an individual with a disability. HB2878 Enrolled - 74 - LRB103 30786 RJT 57276 b HB2878 Enrolled- 75 -LRB103 30786 RJT 57276 b HB2878 Enrolled - 75 - LRB103 30786 RJT 57276 b HB2878 Enrolled - 75 - LRB103 30786 RJT 57276 b 1 (20) Procurement expenditures necessary for the 2 Illinois Commerce Commission to hire third-party 3 facilitators pursuant to Sections 16-105.17 and 16-108.18 4 of the Public Utilities Act or an ombudsman pursuant to 5 Section 16-107.5 of the Public Utilities Act, a 6 facilitator pursuant to Section 16-105.17 of the Public 7 Utilities Act, or a grid auditor pursuant to Section 8 16-105.10 of the Public Utilities Act. 9 (21) Procurement expenditures for the purchase, 10 renewal, and expansion of software, software licenses, or 11 software maintenance agreements that support the efforts 12 of the Illinois State Police to enforce, regulate, and 13 administer the Firearm Owners Identification Card Act, the 14 Firearm Concealed Carry Act, the Firearms Restraining 15 Order Act, the Firearm Dealer License Certification Act, 16 the Law Enforcement Agencies Data System (LEADS), the 17 Uniform Crime Reporting Act, the Criminal Identification 18 Act, the Uniform Conviction Information Act, and the Gun 19 Trafficking Information Act, or establish or maintain 20 record management systems necessary to conduct human 21 trafficking investigations or gun trafficking or other 22 stolen firearm investigations. This paragraph (21) applies 23 to contracts entered into on or after the effective date 24 of this amendatory Act of the 102nd General Assembly and 25 the renewal of contracts that are in effect on the 26 effective date of this amendatory Act of the 102nd General HB2878 Enrolled - 75 - LRB103 30786 RJT 57276 b HB2878 Enrolled- 76 -LRB103 30786 RJT 57276 b HB2878 Enrolled - 76 - LRB103 30786 RJT 57276 b HB2878 Enrolled - 76 - LRB103 30786 RJT 57276 b 1 Assembly. 2 (22) Contracts for public education programming, 3 noncommercial sustaining announcements, public service 4 announcements, and public awareness and education 5 messaging with the nonprofit trade associations of the 6 providers of those services that inform the public on 7 immediate and ongoing health and safety risks and hazards. 8 Notwithstanding any other provision of law, for contracts 9 with an annual value of more than $100,000 entered into on or 10 after October 1, 2017 under an exemption provided in any 11 paragraph of this subsection (b), except paragraph (1), (2), 12 or (5), each State agency shall post to the appropriate 13 procurement bulletin the name of the contractor, a description 14 of the supply or service provided, the total amount of the 15 contract, the term of the contract, and the exception to the 16 Code utilized. The chief procurement officer shall submit a 17 report to the Governor and General Assembly no later than 18 November 1 of each year that shall include, at a minimum, an 19 annual summary of the monthly information reported to the 20 chief procurement officer. 21 (c) This Code does not apply to the electric power 22 procurement process provided for under Section 1-75 of the 23 Illinois Power Agency Act and Section 16-111.5 of the Public 24 Utilities Act. 25 (d) Except for Section 20-160 and Article 50 of this Code, 26 and as expressly required by Section 9.1 of the Illinois HB2878 Enrolled - 76 - LRB103 30786 RJT 57276 b HB2878 Enrolled- 77 -LRB103 30786 RJT 57276 b HB2878 Enrolled - 77 - LRB103 30786 RJT 57276 b HB2878 Enrolled - 77 - LRB103 30786 RJT 57276 b 1 Lottery Law, the provisions of this Code do not apply to the 2 procurement process provided for under Section 9.1 of the 3 Illinois Lottery Law. 4 (e) This Code does not apply to the process used by the 5 Capital Development Board to retain a person or entity to 6 assist the Capital Development Board with its duties related 7 to the determination of costs of a clean coal SNG brownfield 8 facility, as defined by Section 1-10 of the Illinois Power 9 Agency Act, as required in subsection (h-3) of Section 9-220 10 of the Public Utilities Act, including calculating the range 11 of capital costs, the range of operating and maintenance 12 costs, or the sequestration costs or monitoring the 13 construction of clean coal SNG brownfield facility for the 14 full duration of construction. 15 (f) (Blank). 16 (g) (Blank). 17 (h) This Code does not apply to the process to procure or 18 contracts entered into in accordance with Sections 11-5.2 and 19 11-5.3 of the Illinois Public Aid Code. 20 (i) Each chief procurement officer may access records 21 necessary to review whether a contract, purchase, or other 22 expenditure is or is not subject to the provisions of this 23 Code, unless such records would be subject to attorney-client 24 privilege. 25 (j) This Code does not apply to the process used by the 26 Capital Development Board to retain an artist or work or works HB2878 Enrolled - 77 - LRB103 30786 RJT 57276 b HB2878 Enrolled- 78 -LRB103 30786 RJT 57276 b HB2878 Enrolled - 78 - LRB103 30786 RJT 57276 b HB2878 Enrolled - 78 - LRB103 30786 RJT 57276 b 1 of art as required in Section 14 of the Capital Development 2 Board Act. 3 (k) This Code does not apply to the process to procure 4 contracts, or contracts entered into, by the State Board of 5 Elections or the State Electoral Board for hearing officers 6 appointed pursuant to the Election Code. 7 (l) This Code does not apply to the processes used by the 8 Illinois Student Assistance Commission to procure supplies and 9 services paid for from the private funds of the Illinois 10 Prepaid Tuition Fund. As used in this subsection (l), "private 11 funds" means funds derived from deposits paid into the 12 Illinois Prepaid Tuition Trust Fund and the earnings thereon. 13 (m) This Code shall apply regardless of the source of 14 funds with which contracts are paid, including federal 15 assistance moneys. Except as specifically provided in this 16 Code, this Code shall not apply to procurement expenditures 17 necessary for the Department of Public Health to conduct the 18 Healthy Illinois Survey in accordance with Section 2310-431 of 19 the Department of Public Health Powers and Duties Law of the 20 Civil Administrative Code of Illinois. 21 (Source: P.A. 101-27, eff. 6-25-19; 101-81, eff. 7-12-19; 22 101-363, eff. 8-9-19; 102-175, eff. 7-29-21; 102-483, eff 23 1-1-22; 102-558, eff. 8-20-21; 102-600, eff. 8-27-21; 102-662, 24 eff. 9-15-21; 102-721, eff. 1-1-23; 102-813, eff. 5-13-22; 25 102-1116, eff. 1-10-23.) HB2878 Enrolled - 78 - LRB103 30786 RJT 57276 b HB2878 Enrolled- 79 -LRB103 30786 RJT 57276 b HB2878 Enrolled - 79 - LRB103 30786 RJT 57276 b HB2878 Enrolled - 79 - LRB103 30786 RJT 57276 b 1 ARTICLE 60. CONTRACTOR DIVERSITY REPORTING 2 Section 60-5. The Business Corporation Act of 1983 is 3 amended by adding Section 14.40 as follows: 4 (805 ILCS 5/14.40 new) 5 Sec. 14.40. State contractors reporting. 6 (a) Except as provided in subsection (b), by June 1, 2024, 7 and each June 1 thereafter, a corporation that has contracts 8 with this State shall provide to the Commission on Equity and 9 Inclusion a list of its professional services suppliers by 10 category, including, but not limited to, legal services, 11 accounting services, media placement, technology services, 12 asset management, and consulting services. The list shall 13 include the percentage of owners and employees in each 14 category that are women or minority persons. The list required 15 under this subsection (a) shall provide the required 16 information for each of the classes of minority persons 17 identified in Section 2 of the Business Enterprise for 18 Minorities, Women, and Persons with Disabilities Act. 19 (b) Corporations that submit annual supplier diversity 20 reports to the Illinois Commerce Commission in accordance with 21 Section 8h of the Business Enterprise for Minorities, Women, 22 and Persons with Disabilities Act are exempt from the 23 requirements of this Section. 24 (c) This Section is repealed on July 1, 2028. HB2878 Enrolled - 79 - LRB103 30786 RJT 57276 b HB2878 Enrolled- 80 -LRB103 30786 RJT 57276 b HB2878 Enrolled - 80 - LRB103 30786 RJT 57276 b HB2878 Enrolled - 80 - LRB103 30786 RJT 57276 b 1 ARTICLE 65. REQUESTS FOR WAIVER OF ASPIRATIONAL GOALS 2 Section 5. The Business Enterprise for Minorities, Women, 3 and Persons with Disabilities Act is amended by changing 4 Sections 2 and 7 as follows: 5 (30 ILCS 575/2) 6 (Section scheduled to be repealed on June 30, 2024) 7 Sec. 2. Definitions. 8 (A) For the purpose of this Act, the following terms shall 9 have the following definitions: 10 (1) "Minority person" shall mean a person who is a 11 citizen or lawful permanent resident of the United States 12 and who is any of the following: 13 (a) American Indian or Alaska Native (a person 14 having origins in any of the original peoples of North 15 and South America, including Central America, and who 16 maintains tribal affiliation or community attachment). 17 (b) Asian (a person having origins in any of the 18 original peoples of the Far East, Southeast Asia, or 19 the Indian subcontinent, including, but not limited 20 to, Cambodia, China, India, Japan, Korea, Malaysia, 21 Pakistan, the Philippine Islands, Thailand, and 22 Vietnam). 23 (c) Black or African American (a person having HB2878 Enrolled - 80 - LRB103 30786 RJT 57276 b HB2878 Enrolled- 81 -LRB103 30786 RJT 57276 b HB2878 Enrolled - 81 - LRB103 30786 RJT 57276 b HB2878 Enrolled - 81 - LRB103 30786 RJT 57276 b 1 origins in any of the black racial groups of Africa). 2 (d) Hispanic or Latino (a person of Cuban, 3 Mexican, Puerto Rican, South or Central American, or 4 other Spanish culture or origin, regardless of race). 5 (e) Native Hawaiian or Other Pacific Islander (a 6 person having origins in any of the original peoples 7 of Hawaii, Guam, Samoa, or other Pacific Islands). 8 (2) "Woman" shall mean a person who is a citizen or 9 lawful permanent resident of the United States and who is 10 of the female gender. 11 (2.05) "Person with a disability" means a person who 12 is a citizen or lawful resident of the United States and is 13 a person qualifying as a person with a disability under 14 subdivision (2.1) of this subsection (A). 15 (2.1) "Person with a disability" means a person with a 16 severe physical or mental disability that: 17 (a) results from: 18 amputation, 19 arthritis, 20 autism, 21 blindness, 22 burn injury, 23 cancer, 24 cerebral palsy, 25 Crohn's disease, 26 cystic fibrosis, HB2878 Enrolled - 81 - LRB103 30786 RJT 57276 b HB2878 Enrolled- 82 -LRB103 30786 RJT 57276 b HB2878 Enrolled - 82 - LRB103 30786 RJT 57276 b HB2878 Enrolled - 82 - LRB103 30786 RJT 57276 b 1 deafness, 2 head injury, 3 heart disease, 4 hemiplegia, 5 hemophilia, 6 respiratory or pulmonary dysfunction, 7 an intellectual disability, 8 mental illness, 9 multiple sclerosis, 10 muscular dystrophy, 11 musculoskeletal disorders, 12 neurological disorders, including stroke and 13 epilepsy, 14 paraplegia, 15 quadriplegia and other spinal cord conditions, 16 sickle cell anemia, 17 ulcerative colitis, 18 specific learning disabilities, or 19 end stage renal failure disease; and 20 (b) substantially limits one or more of the 21 person's major life activities. 22 Another disability or combination of disabilities may 23 also be considered as a severe disability for the purposes 24 of item (a) of this subdivision (2.1) if it is determined 25 by an evaluation of rehabilitation potential to cause a 26 comparable degree of substantial functional limitation HB2878 Enrolled - 82 - LRB103 30786 RJT 57276 b HB2878 Enrolled- 83 -LRB103 30786 RJT 57276 b HB2878 Enrolled - 83 - LRB103 30786 RJT 57276 b HB2878 Enrolled - 83 - LRB103 30786 RJT 57276 b 1 similar to the specific list of disabilities listed in 2 item (a) of this subdivision (2.1). 3 (3) "Minority-owned business" means a business which 4 is at least 51% owned by one or more minority persons, or 5 in the case of a corporation, at least 51% of the stock in 6 which is owned by one or more minority persons; and the 7 management and daily business operations of which are 8 controlled by one or more of the minority individuals who 9 own it. 10 (4) "Women-owned business" means a business which is 11 at least 51% owned by one or more women, or, in the case of 12 a corporation, at least 51% of the stock in which is owned 13 by one or more women; and the management and daily 14 business operations of which are controlled by one or more 15 of the women who own it. 16 (4.1) "Business owned by a person with a disability" 17 means a business that is at least 51% owned by one or more 18 persons with a disability and the management and daily 19 business operations of which are controlled by one or more 20 of the persons with disabilities who own it. A 21 not-for-profit agency for persons with disabilities that 22 is exempt from taxation under Section 501 of the Internal 23 Revenue Code of 1986 is also considered a "business owned 24 by a person with a disability". 25 (4.2) "Council" means the Business Enterprise Council 26 for Minorities, Women, and Persons with Disabilities HB2878 Enrolled - 83 - LRB103 30786 RJT 57276 b HB2878 Enrolled- 84 -LRB103 30786 RJT 57276 b HB2878 Enrolled - 84 - LRB103 30786 RJT 57276 b HB2878 Enrolled - 84 - LRB103 30786 RJT 57276 b 1 created under Section 5 of this Act. 2 (4.3) "Commission" means, unless the context clearly 3 indicates otherwise, the Commission on Equity and 4 Inclusion created under the Commission on Equity and 5 Inclusion Act. 6 (4.4) "Certified vendor" means a minority-owned 7 business, women-owned business, or business owned by a 8 person with a disability that is certified by the Business 9 Enterprise Program. 10 (4.5) "Subcontractor" means a person or entity that 11 enters into a contractual agreement with a prime vendor to 12 provide, on behalf of the prime vendor, goods, services, 13 real property, or remuneration or other monetary 14 consideration that is the subject of the primary State 15 contract. "Subcontractor" includes a sublessee under a 16 State contract. 17 (4.6) "Prime vendor" means any person or entity having 18 a contract that is subject to this Act with a State agency 19 or public institution of higher education. 20 (5) "State contracts" means all contracts entered into 21 by the State, any agency or department thereof, or any 22 public institution of higher education, including 23 community college districts, regardless of the source of 24 the funds with which the contracts are paid, which are not 25 subject to federal reimbursement. "State contracts" does 26 not include contracts awarded by a retirement system, HB2878 Enrolled - 84 - LRB103 30786 RJT 57276 b HB2878 Enrolled- 85 -LRB103 30786 RJT 57276 b HB2878 Enrolled - 85 - LRB103 30786 RJT 57276 b HB2878 Enrolled - 85 - LRB103 30786 RJT 57276 b 1 pension fund, or investment board subject to Section 2 1-109.1 of the Illinois Pension Code. This definition 3 shall control over any existing definition under this Act 4 or applicable administrative rule. 5 "State construction contracts" means all State 6 contracts entered into by a State agency or public 7 institution of higher education for the repair, 8 remodeling, renovation or construction of a building or 9 structure, or for the construction or maintenance of a 10 highway defined in Article 2 of the Illinois Highway Code. 11 (6) "State agencies" shall mean all departments, 12 officers, boards, commissions, institutions and bodies 13 politic and corporate of the State, but does not include 14 the Board of Trustees of the University of Illinois, the 15 Board of Trustees of Southern Illinois University, the 16 Board of Trustees of Chicago State University, the Board 17 of Trustees of Eastern Illinois University, the Board of 18 Trustees of Governors State University, the Board of 19 Trustees of Illinois State University, the Board of 20 Trustees of Northeastern Illinois University, the Board of 21 Trustees of Northern Illinois University, the Board of 22 Trustees of Western Illinois University, municipalities or 23 other local governmental units, or other State 24 constitutional officers. 25 (7) "Public institutions of higher education" means 26 the University of Illinois, Southern Illinois University, HB2878 Enrolled - 85 - LRB103 30786 RJT 57276 b HB2878 Enrolled- 86 -LRB103 30786 RJT 57276 b HB2878 Enrolled - 86 - LRB103 30786 RJT 57276 b HB2878 Enrolled - 86 - LRB103 30786 RJT 57276 b 1 Chicago State University, Eastern Illinois University, 2 Governors State University, Illinois State University, 3 Northeastern Illinois University, Northern Illinois 4 University, Western Illinois University, the public 5 community colleges of the State, and any other public 6 universities, colleges, and community colleges now or 7 hereafter established or authorized by the General 8 Assembly. 9 (8) "Certification" means a determination made by the 10 Council or by one delegated authority from the Council to 11 make certifications, or by a State agency with statutory 12 authority to make such a certification, that a business 13 entity is a business owned by a minority, woman, or person 14 with a disability for whatever purpose. A business owned 15 and controlled by women shall be certified as a 16 "woman-owned business". A business owned and controlled by 17 women who are also minorities shall be certified as both a 18 "women-owned business" and a "minority-owned business". 19 (9) "Control" means the exclusive or ultimate and sole 20 control of the business including, but not limited to, 21 capital investment and all other financial matters, 22 property, acquisitions, contract negotiations, legal 23 matters, officer-director-employee selection and 24 comprehensive hiring, operating responsibilities, 25 cost-control matters, income and dividend matters, 26 financial transactions and rights of other shareholders or HB2878 Enrolled - 86 - LRB103 30786 RJT 57276 b HB2878 Enrolled- 87 -LRB103 30786 RJT 57276 b HB2878 Enrolled - 87 - LRB103 30786 RJT 57276 b HB2878 Enrolled - 87 - LRB103 30786 RJT 57276 b 1 joint partners. Control shall be real, substantial and 2 continuing, not pro forma. Control shall include the power 3 to direct or cause the direction of the management and 4 policies of the business and to make the day-to-day as 5 well as major decisions in matters of policy, management 6 and operations. Control shall be exemplified by possessing 7 the requisite knowledge and expertise to run the 8 particular business and control shall not include simple 9 majority or absentee ownership. 10 (10) "Business" means a business that has annual gross 11 sales of less than $150,000,000 as evidenced by the 12 federal income tax return of the business. A certified 13 vendor firm with gross sales in excess of this cap may 14 apply to the Council for certification for a particular 15 contract if the vendor firm can demonstrate that the 16 contract would have significant impact on businesses owned 17 by minorities, women, or persons with disabilities as 18 suppliers or subcontractors or in employment of 19 minorities, women, or persons with disabilities. Firms 20 with gross sales in excess of this cap that are granted 21 certification by the Council shall be granted 22 certification for the life of the contract, including 23 available renewals. 24 (11) "Utilization plan" means an attachment that is 25 made to a form and additional documentations included in 26 all bids or proposals and that demonstrates the bidder's HB2878 Enrolled - 87 - LRB103 30786 RJT 57276 b HB2878 Enrolled- 88 -LRB103 30786 RJT 57276 b HB2878 Enrolled - 88 - LRB103 30786 RJT 57276 b HB2878 Enrolled - 88 - LRB103 30786 RJT 57276 b 1 or offeror's efforts to meet the contract-specific 2 Business Enterprise Program goal. The utilization plan 3 shall indicate whether the prime vendor intends to meet 4 the Business Enterprise Program goal through its own 5 performance, if it is a certified vendor, or through the 6 use of subcontractors that are certified vendors a 7 vendor's proposed utilization of vendors certified by the 8 Business Enterprise Program to meet the targeted goal. The 9 utilization plan shall demonstrate that the Vendor has 10 either: (1) met the entire contract goal or (2) requested 11 a full or partial waiver of the contract goal. If the prime 12 vendor intends to use a subcontractor that is a certified 13 vendor to fulfill the contract goal, a participation 14 agreement executed between the prime vendor and the 15 certified subcontractor must be included with the 16 utilization plan and made good faith efforts towards 17 meeting the goal. 18 (12) "Business Enterprise Program" means the Business 19 Enterprise Program of the Commission on Equity and 20 Inclusion. 21 (13) "Good faith effort" means actions undertaken by a 22 vendor to achieve a contract specific Business Enterprise 23 Program goal that, by scope, intensity, and 24 appropriateness to the objective, can reasonably be 25 expected to fulfill the program's requirements. 26 (B) When a business is owned at least 51% by any HB2878 Enrolled - 88 - LRB103 30786 RJT 57276 b HB2878 Enrolled- 89 -LRB103 30786 RJT 57276 b HB2878 Enrolled - 89 - LRB103 30786 RJT 57276 b HB2878 Enrolled - 89 - LRB103 30786 RJT 57276 b 1 combination of minority persons, women, or persons with 2 disabilities, even though none of the 3 classes alone holds at 3 least a 51% interest, the ownership requirement for purposes 4 of this Act is considered to be met. The certification 5 category for the business is that of the class holding the 6 largest ownership interest in the business. If 2 or more 7 classes have equal ownership interests, the certification 8 category shall be determined by the business. 9 (Source: P.A. 101-601, eff. 1-1-20; 101-657, eff. 1-1-22; 10 102-29, eff. 6-25-21; 102-1119, eff. 1-23-23.) 11 (30 ILCS 575/7) (from Ch. 127, par. 132.607) 12 (Section scheduled to be repealed on June 30, 2024) 13 Sec. 7. Exemptions; waivers; publication of data. 14 (1) Individual contract exemptions. The Council, at the 15 written request of the affected agency, public institution of 16 higher education, or recipient of a grant or loan of State 17 funds of $250,000 or more complying with Section 45 of the 18 State Finance Act, may permit an individual contract or 19 contract package, (related contracts being bid or awarded 20 simultaneously for the same project or improvements) be made 21 wholly or partially exempt from State contracting goals for 22 businesses owned by minorities, women, and persons with 23 disabilities prior to the advertisement for bids or 24 solicitation of proposals whenever there has been a 25 determination, reduced to writing and based on the best HB2878 Enrolled - 89 - LRB103 30786 RJT 57276 b HB2878 Enrolled- 90 -LRB103 30786 RJT 57276 b HB2878 Enrolled - 90 - LRB103 30786 RJT 57276 b HB2878 Enrolled - 90 - LRB103 30786 RJT 57276 b 1 information available at the time of the determination, that 2 there is an insufficient number of businesses owned by 3 minorities, women, and persons with disabilities to ensure 4 adequate competition and an expectation of reasonable prices 5 on bids or proposals solicited for the individual contract or 6 contract package in question. Any such exemptions shall be 7 given by the Council to the Bureau on Apprenticeship Programs 8 and Clean Energy Jobs. 9 (a) Written request for contract exemption. A written 10 request for an individual contract exemption must include, 11 but is not limited to, the following: 12 (i) a list of eligible businesses owned by 13 minorities, women, and persons with disabilities; 14 (ii) a clear demonstration that the number of 15 eligible businesses identified in subparagraph (i) 16 above is insufficient to ensure adequate competition; 17 (iii) the difference in cost between the contract 18 proposals being offered by businesses owned by 19 minorities, women, and persons with disabilities and 20 the agency or public institution of higher education's 21 expectations of reasonable prices on bids or proposals 22 within that class; and 23 (iv) a list of eligible businesses owned by 24 minorities, women, and persons with disabilities that 25 the contractor has used in the current and prior 26 fiscal years. HB2878 Enrolled - 90 - LRB103 30786 RJT 57276 b HB2878 Enrolled- 91 -LRB103 30786 RJT 57276 b HB2878 Enrolled - 91 - LRB103 30786 RJT 57276 b HB2878 Enrolled - 91 - LRB103 30786 RJT 57276 b 1 (b) Determination. The Council's determination 2 concerning an individual contract exemption must consider, 3 at a minimum, the following: 4 (i) the justification for the requested exemption, 5 including whether diligent efforts were undertaken to 6 identify and solicit eligible businesses owned by 7 minorities, women, and persons with disabilities; 8 (ii) the total number of exemptions granted to the 9 affected agency, public institution of higher 10 education, or recipient of a grant or loan of State 11 funds of $250,000 or more complying with Section 45 of 12 the State Finance Act that have been granted by the 13 Council in the current and prior fiscal years; and 14 (iii) the percentage of contracts awarded by the 15 agency or public institution of higher education to 16 eligible businesses owned by minorities, women, and 17 persons with disabilities in the current and prior 18 fiscal years. 19 (2) Class exemptions. 20 (a) Creation. The Council, at the written request of 21 the affected agency or public institution of higher 22 education, may permit an entire class of contracts be made 23 exempt from State contracting goals for businesses owned 24 by minorities, women, and persons with disabilities 25 whenever there has been a determination, reduced to 26 writing and based on the best information available at the HB2878 Enrolled - 91 - LRB103 30786 RJT 57276 b HB2878 Enrolled- 92 -LRB103 30786 RJT 57276 b HB2878 Enrolled - 92 - LRB103 30786 RJT 57276 b HB2878 Enrolled - 92 - LRB103 30786 RJT 57276 b 1 time of the determination, that there is an insufficient 2 number of qualified businesses owned by minorities, women, 3 and persons with disabilities to ensure adequate 4 competition and an expectation of reasonable prices on 5 bids or proposals within that class. Any such exemption 6 shall be given by the Council to the Bureau on 7 Apprenticeship Programs and Clean Energy Jobs. 8 (a-1) Written request for class exemption. A written 9 request for a class exemption must include, but is not 10 limited to, the following: 11 (i) a list of eligible businesses owned by 12 minorities, women, and persons with disabilities; 13 (ii) a clear demonstration that the number of 14 eligible businesses identified in subparagraph (i) 15 above is insufficient to ensure adequate competition; 16 (iii) the difference in cost between the contract 17 proposals being offered by eligible businesses owned 18 by minorities, women, and persons with disabilities 19 and the agency or public institution of higher 20 education's expectations of reasonable prices on bids 21 or proposals within that class; and 22 (iv) the number of class exemptions the affected 23 agency or public institution of higher education 24 requested in the current and prior fiscal years. 25 (a-2) Determination. The Council's determination 26 concerning class exemptions must consider, at a minimum, HB2878 Enrolled - 92 - LRB103 30786 RJT 57276 b HB2878 Enrolled- 93 -LRB103 30786 RJT 57276 b HB2878 Enrolled - 93 - LRB103 30786 RJT 57276 b HB2878 Enrolled - 93 - LRB103 30786 RJT 57276 b 1 the following: 2 (i) the justification for the requested exemption, 3 including whether diligent efforts were undertaken to 4 identify and solicit eligible businesses owned by 5 minorities, women, and persons with disabilities; 6 (ii) the total number of class exemptions granted 7 to the requesting agency or public institution of 8 higher education that have been granted by the Council 9 in the current and prior fiscal years; and 10 (iii) the percentage of contracts awarded by the 11 agency or public institution of higher education to 12 eligible businesses owned by minorities, women, and 13 persons with disabilities the current and prior fiscal 14 years. 15 (b) Limitation. Any such class exemption shall not be 16 permitted for a period of more than one year at a time. 17 (3) Waivers. Where a particular contract requires a vendor 18 contractor to meet a goal established pursuant to this Act, 19 the vendor contractor shall have the right to request a waiver 20 from such requirements prior to the contract award. The 21 Business Enterprise Program shall evaluate a vendor's request 22 for a waiver based on the vendor's documented good faith 23 efforts to meet the contract-specific Business Enterprise 24 Program goal. The Council shall grant the waiver when the 25 contractor demonstrates that there has been made a good faith 26 effort to comply with the goals for participation by HB2878 Enrolled - 93 - LRB103 30786 RJT 57276 b HB2878 Enrolled- 94 -LRB103 30786 RJT 57276 b HB2878 Enrolled - 94 - LRB103 30786 RJT 57276 b HB2878 Enrolled - 94 - LRB103 30786 RJT 57276 b 1 businesses owned by minorities, women, and persons with 2 disabilities. Any such waiver shall also be transmitted in 3 writing to the Bureau on Apprenticeship Programs and Clean 4 Energy Jobs. 5 (a) Request for waiver. A vendor's contractor's 6 request for a waiver under this subsection (3) must 7 include, but is not limited to, the following, if 8 available: 9 (i) a list of eligible businesses owned by 10 minorities, women, and persons with disabilities that 11 pertain to the the class of contracts in the requested 12 waiver that were contacted by the vendor scope of work 13 of the contract. Eligible businesses are only eligible 14 if the business is certified for the products or work 15 advertised in the solicitation or bid; 16 (ii) (blank); 17 (iia) a clear demonstration that the vendor 18 contractor selected portions of the work to be 19 performed by certified vendors to facilitate meeting 20 the contract specific goal, and that certified vendors 21 that have the capability to perform the work of the 22 contract were eligible businesses owned by minorities, 23 women, and persons with disabilities, solicited 24 through all reasonable and available means eligible 25 businesses, and negotiated in good faith with 26 interested eligible businesses; HB2878 Enrolled - 94 - LRB103 30786 RJT 57276 b HB2878 Enrolled- 95 -LRB103 30786 RJT 57276 b HB2878 Enrolled - 95 - LRB103 30786 RJT 57276 b HB2878 Enrolled - 95 - LRB103 30786 RJT 57276 b 1 (iib) documentation demonstrating that certified 2 vendors businesses owned by minorities, women, and 3 persons with disabilities are not rejected as being 4 unqualified without sound reasons based on a thorough 5 investigation of their capabilities. The certified 6 vendor's standing within its industry, membership in 7 specific groups, organizations, or associations, and 8 political or social affiliations are not legitimate 9 causes for rejecting or not contacting or negotiating 10 with a certified vendor; 11 (iic) proof that the prime vendor solicited 12 eligible certified vendors with: (1) sufficient time 13 to respond; (2) adequate information about the scope, 14 specifications, and requirements of the solicitation 15 or bid, including plans, drawings, and addenda, to 16 allow eligible businesses an opportunity to respond to 17 the solicitation or bid; and (3) sufficient follow up 18 with certified vendors; 19 (iid) a clear demonstration that the prime vendor 20 communicated with certified vendors; 21 (iie) evidence that the prime vendor negotiated 22 with certified vendors to enter into subcontracts to 23 provide a commercially useful function of the contract 24 for a reasonable cost; 25 (iii) documentation demonstrating that the 26 difference in cost between the contract proposals HB2878 Enrolled - 95 - LRB103 30786 RJT 57276 b HB2878 Enrolled- 96 -LRB103 30786 RJT 57276 b HB2878 Enrolled - 96 - LRB103 30786 RJT 57276 b HB2878 Enrolled - 96 - LRB103 30786 RJT 57276 b 1 being offered by certified vendors is contract 2 proposals being offered by businesses owned by 3 minorities, women, and persons with disabilities are 4 excessive or unreasonable; and 5 (iv) a list of certified vendors businesses owned 6 by minorities, women, and persons with disabilities 7 that the contractor has used in the current and prior 8 fiscal years; . 9 (v) documentation demonstrating that the vendor 10 made efforts to utilize certified vendors despite the 11 ability or desire of a vendor to perform the work with 12 its own operations by selecting portions of the work 13 to be performed by certified vendors, which may, when 14 appropriate, include breaking out portions of the work 15 to be performed into economically feasible units to 16 facilitate certified vendor participation; and 17 (vi) documentation that the vendor used the 18 services of: (1) the State; (2) organizations or 19 contractors' groups representing or composed of 20 minorities, women, or persons with disabilities; (3) 21 local, State, or federal assistance offices 22 representing or assisting minorities, women, or 23 persons with disabilities; and (4) other organizations 24 that provide assistance in the recruitment and 25 engagement of certified vendors. 26 If any of the information required under this HB2878 Enrolled - 96 - LRB103 30786 RJT 57276 b HB2878 Enrolled- 97 -LRB103 30786 RJT 57276 b HB2878 Enrolled - 97 - LRB103 30786 RJT 57276 b HB2878 Enrolled - 97 - LRB103 30786 RJT 57276 b 1 subdivision (a) is not available to the vendor, despite 2 the vendor's good faith efforts to obtain the information, 3 the vendor's request for a waiver must contain a written 4 explanation of why that information is not included. 5 (b) Determination. The Council's determination 6 concerning waivers must include following: 7 (i) the justification for the requested waiver, 8 including whether the requesting vendor contractor 9 made a good faith effort to identify and solicit 10 certified vendors based on the criteria set forth in 11 this Section eligible businesses owned by minorities, 12 women, and persons with disabilities; 13 (ii) the total number of waivers the vendor 14 contractor has been granted by the Council in the 15 current and prior fiscal years; 16 (iii) (blank); and 17 (iv) the vendor's contractor's use of businesses 18 owned by minorities, women, and persons with 19 disabilities in the current and prior fiscal years. 20 (3.5) (Blank). 21 (4) Conflict with other laws. In the event that any State 22 contract, which otherwise would be subject to the provisions 23 of this Act, is or becomes subject to federal laws or 24 regulations which conflict with the provisions of this Act or 25 actions of the State taken pursuant hereto, the provisions of 26 the federal laws or regulations shall apply and the contract HB2878 Enrolled - 97 - LRB103 30786 RJT 57276 b HB2878 Enrolled- 98 -LRB103 30786 RJT 57276 b HB2878 Enrolled - 98 - LRB103 30786 RJT 57276 b HB2878 Enrolled - 98 - LRB103 30786 RJT 57276 b 1 shall be interpreted and enforced accordingly. 2 (5) Each chief procurement officer, as defined in the 3 Illinois Procurement Code, shall maintain on his or her 4 official Internet website a database of the following: (i) 5 waivers granted under this Section with respect to contracts 6 under his or her jurisdiction; (ii) a State agency or public 7 institution of higher education's written request for an 8 exemption of an individual contract or an entire class of 9 contracts; and (iii) the Council's written determination 10 granting or denying a request for an exemption of an 11 individual contract or an entire class of contracts. The 12 database, which shall be updated periodically as necessary, 13 shall be searchable by contractor name and by contracting 14 State agency. 15 (6) Each chief procurement officer, as defined by the 16 Illinois Procurement Code, shall maintain on its website a 17 list of all vendors firms that have been prohibited from 18 bidding, offering, or entering into a contract with the State 19 of Illinois as a result of violations of this Act. 20 Each public notice required by law of the award of a State 21 contract shall include for each bid or offer submitted for 22 that contract the following: (i) the bidder's or offeror's 23 name, (ii) the bid amount, (iii) the name or names of the 24 certified vendors firms identified in the bidder's or 25 offeror's submitted utilization plan, and (iv) the bid's 26 amount and percentage of the contract awarded to each HB2878 Enrolled - 98 - LRB103 30786 RJT 57276 b HB2878 Enrolled- 99 -LRB103 30786 RJT 57276 b HB2878 Enrolled - 99 - LRB103 30786 RJT 57276 b HB2878 Enrolled - 99 - LRB103 30786 RJT 57276 b 1 certified vendor that is a business businesses owned by 2 minorities, women, and persons with disabilities identified in 3 the utilization plan. 4 (Source: P.A. 101-170, eff. 1-1-20; 101-601, eff. 1-1-20; 5 101-657, eff. 1-1-22; 102-29, eff. 6-25-21; 102-662, eff. 6 9-15-21.) 7 ARTICLE 75. PUBLIC INSTITUTIONS OF HIGHER EDUCATION 8 Section 75-5. The Illinois Procurement Code is amended by 9 changing Section 1-13 as follows: 10 (30 ILCS 500/1-13) 11 Sec. 1-13. Applicability to public institutions of higher 12 education. 13 (a) This Code shall apply to public institutions of higher 14 education, regardless of the source of the funds with which 15 contracts are paid, except as provided in this Section. 16 (b) Except as provided in this Section, this Code shall 17 not apply to procurements made by or on behalf of public 18 institutions of higher education for any of the following: 19 (1) Memberships in professional, academic, research, 20 or athletic organizations on behalf of a public 21 institution of higher education, an employee of a public 22 institution of higher education, or a student at a public 23 institution of higher education. HB2878 Enrolled - 99 - LRB103 30786 RJT 57276 b HB2878 Enrolled- 100 -LRB103 30786 RJT 57276 b HB2878 Enrolled - 100 - LRB103 30786 RJT 57276 b HB2878 Enrolled - 100 - LRB103 30786 RJT 57276 b 1 (2) Procurement expenditures for events or activities 2 paid for exclusively by revenues generated by the event or 3 activity, gifts or donations for the event or activity, 4 private grants, or any combination thereof. 5 (3) Procurement expenditures for events or activities 6 for which the use of specific potential contractors is 7 mandated or identified by the sponsor of the event or 8 activity, provided that the sponsor is providing a 9 majority of the funding for the event or activity. 10 (4) Procurement expenditures necessary to provide 11 athletic, artistic or musical services, performances, 12 events, or productions by or for a public institution of 13 higher education. 14 (5) Procurement expenditures for periodicals, books, 15 subscriptions, database licenses, and other publications 16 procured for use by a university library or academic 17 department, except for expenditures related to procuring 18 textbooks for student use or materials for resale or 19 rental. 20 (6) Procurement expenditures for placement of students 21 in externships, practicums, field experiences, and for 22 medical residencies and rotations. 23 (7) Contracts for programming and broadcast license 24 rights for university-operated radio and television 25 stations. 26 (8) Procurement expenditures necessary to perform HB2878 Enrolled - 100 - LRB103 30786 RJT 57276 b HB2878 Enrolled- 101 -LRB103 30786 RJT 57276 b HB2878 Enrolled - 101 - LRB103 30786 RJT 57276 b HB2878 Enrolled - 101 - LRB103 30786 RJT 57276 b 1 sponsored research and other sponsored activities under 2 grants and contracts funded by the sponsor or by sources 3 other than State appropriations. 4 (9) Contracts with a foreign entity for research or 5 educational activities, provided that the foreign entity 6 either does not maintain an office in the United States or 7 is the sole source of the service or product. 8 (10) Procurement expenditures for any ongoing software 9 license or maintenance agreement or competitively 10 solicited software purchase, when the software, license, 11 or maintenance agreement is available through only the 12 software creator or its manufacturer and not a reseller. 13 (11) Procurement expenditures incurred outside of the 14 United States for the recruitment of international 15 students. 16 (12) Procurement expenditures for contracts entered 17 into under the Public University Energy Conservation Act. 18 (13) Procurement expenditures for advertising 19 purchased directly from a media station or the owner of 20 the station for distribution of advertising. 21 Notice of each contract with an annual value of more than 22 $100,000 entered into by a public institution of higher 23 education that is related to the procurement of goods and 24 services identified in items (1) through (13) (11) of this 25 subsection shall be published in the Procurement Bulletin 26 within 14 calendar days after contract execution. The Chief HB2878 Enrolled - 101 - LRB103 30786 RJT 57276 b HB2878 Enrolled- 102 -LRB103 30786 RJT 57276 b HB2878 Enrolled - 102 - LRB103 30786 RJT 57276 b HB2878 Enrolled - 102 - LRB103 30786 RJT 57276 b 1 Procurement Officer shall prescribe the form and content of 2 the notice. Each public institution of higher education shall 3 provide the Chief Procurement Officer, on a monthly basis, in 4 the form and content prescribed by the Chief Procurement 5 Officer, a report of contracts that are related to the 6 procurement of goods and services identified in this 7 subsection. At a minimum, this report shall include the name 8 of the contractor, a description of the supply or service 9 provided, the total amount of the contract, the term of the 10 contract, and the exception to the Code utilized. A copy of any 11 or all of these contracts shall be made available to the Chief 12 Procurement Officer immediately upon request. The Chief 13 Procurement Officer shall submit a report to the Governor and 14 General Assembly no later than November 1 of each year that 15 shall include, at a minimum, an annual summary of the monthly 16 information reported to the Chief Procurement Officer. 17 (b-5) Except as provided in this subsection, the 18 provisions of this Code shall not apply to contracts for 19 medical supplies or to contracts for medical services 20 necessary for the delivery of care and treatment at medical, 21 dental, or veterinary teaching facilities used by Southern 22 Illinois University or the University of Illinois or at any 23 university-operated health care center or dispensary that 24 provides care, treatment, and medications for students, 25 faculty, and staff. Furthermore, the provisions of this Code 26 do not apply to the procurement by such a facility of any HB2878 Enrolled - 102 - LRB103 30786 RJT 57276 b HB2878 Enrolled- 103 -LRB103 30786 RJT 57276 b HB2878 Enrolled - 103 - LRB103 30786 RJT 57276 b HB2878 Enrolled - 103 - LRB103 30786 RJT 57276 b 1 additional supplies or services that the operator of the 2 facility deems necessary for the effective use and functioning 3 of the medical supplies or services that are otherwise exempt 4 from this Code under this subsection (b-5). However, other 5 supplies and services needed for these teaching facilities 6 shall be subject to the jurisdiction of the Chief Procurement 7 Officer for Public Institutions of Higher Education who may 8 establish expedited procurement procedures and may waive or 9 modify certification, contract, hearing, process and 10 registration requirements required by the Code. All 11 procurements made under this subsection shall be documented 12 and may require publication in the Illinois Procurement 13 Bulletin. 14 (b-10) Procurements made by or on behalf of the University 15 of Illinois for investment services may be entered into or 16 renewed without being subject to the requirements of this 17 Code. Notice of intent to renew a contract shall be published 18 in the Illinois Public Higher Education Procurement Bulletin 19 at least 14 days prior to the execution of a renewal, and the 20 University of Illinois shall hold a public hearing for 21 interested parties to provide public comment. Any contract 22 extended, renewed, or entered pursuant to this exception shall 23 be published in the Illinois Public Higher Education 24 Procurement Bulletin within 5 days of contract execution. 25 (c) Procurements made by or on behalf of public 26 institutions of higher education for the fulfillment of a HB2878 Enrolled - 103 - LRB103 30786 RJT 57276 b HB2878 Enrolled- 104 -LRB103 30786 RJT 57276 b HB2878 Enrolled - 104 - LRB103 30786 RJT 57276 b HB2878 Enrolled - 104 - LRB103 30786 RJT 57276 b 1 grant shall be made in accordance with the requirements of 2 this Code to the extent practical. 3 Upon the written request of a public institution of higher 4 education, the Chief Procurement Officer may waive contract, 5 registration, certification, and hearing requirements of this 6 Code if, based on the item to be procured or the terms of a 7 grant, compliance is impractical. The public institution of 8 higher education shall provide the Chief Procurement Officer 9 with specific reasons for the waiver, including the necessity 10 of contracting with a particular potential contractor, and 11 shall certify that an effort was made in good faith to comply 12 with the provisions of this Code. The Chief Procurement 13 Officer shall provide written justification for any waivers. 14 By November 1 of each year, the Chief Procurement Officer 15 shall file a report with the General Assembly identifying each 16 contract approved with waivers and providing the justification 17 given for any waivers for each of those contracts. Notice of 18 each waiver made under this subsection shall be published in 19 the Procurement Bulletin within 14 calendar days after 20 contract execution. The Chief Procurement Officer shall 21 prescribe the form and content of the notice. 22 (d) Notwithstanding this Section, a waiver of the 23 registration requirements of Section 20-160 does not permit a 24 business entity and any affiliated entities or affiliated 25 persons to make campaign contributions if otherwise prohibited 26 by Section 50-37. The total amount of contracts awarded in HB2878 Enrolled - 104 - LRB103 30786 RJT 57276 b HB2878 Enrolled- 105 -LRB103 30786 RJT 57276 b HB2878 Enrolled - 105 - LRB103 30786 RJT 57276 b HB2878 Enrolled - 105 - LRB103 30786 RJT 57276 b 1 accordance with this Section shall be included in determining 2 the aggregate amount of contracts or pending bids of a 3 business entity and any affiliated entities or affiliated 4 persons. 5 (e) Notwithstanding subsection (e) of Section 50-10.5 of 6 this Code, the Chief Procurement Officer, with the approval of 7 the Executive Ethics Commission, may permit a public 8 institution of higher education to accept a bid or enter into a 9 contract with a business that assisted the public institution 10 of higher education in determining whether there is a need for 11 a contract or assisted in reviewing, drafting, or preparing 12 documents related to a bid or contract, provided that the bid 13 or contract is essential to research administered by the 14 public institution of higher education and it is in the best 15 interest of the public institution of higher education to 16 accept the bid or contract. For purposes of this subsection, 17 "business" includes all individuals with whom a business is 18 affiliated, including, but not limited to, any officer, agent, 19 employee, consultant, independent contractor, director, 20 partner, manager, or shareholder of a business. The Executive 21 Ethics Commission may promulgate rules and regulations for the 22 implementation and administration of the provisions of this 23 subsection (e). 24 (f) As used in this Section: 25 "Grant" means non-appropriated funding provided by a 26 federal or private entity to support a project or program HB2878 Enrolled - 105 - LRB103 30786 RJT 57276 b HB2878 Enrolled- 106 -LRB103 30786 RJT 57276 b HB2878 Enrolled - 106 - LRB103 30786 RJT 57276 b HB2878 Enrolled - 106 - LRB103 30786 RJT 57276 b 1 administered by a public institution of higher education and 2 any non-appropriated funding provided to a sub-recipient of 3 the grant. 4 "Public institution of higher education" means Chicago 5 State University, Eastern Illinois University, Governors State 6 University, Illinois State University, Northeastern Illinois 7 University, Northern Illinois University, Southern Illinois 8 University, University of Illinois, Western Illinois 9 University, and, for purposes of this Code only, the Illinois 10 Mathematics and Science Academy. 11 (g) (Blank). 12 (h) The General Assembly finds and declares that: 13 (1) Public Act 98-1076, which took effect on January 14 1, 2015, changed the repeal date set for this Section from 15 December 31, 2014 to December 31, 2016. 16 (2) The Statute on Statutes sets forth general rules 17 on the repeal of statutes and the construction of multiple 18 amendments, but Section 1 of that Act also states that 19 these rules will not be observed when the result would be 20 "inconsistent with the manifest intent of the General 21 Assembly or repugnant to the context of the statute". 22 (3) This amendatory Act of the 100th General Assembly 23 manifests the intention of the General Assembly to remove 24 the repeal of this Section. 25 (4) This Section was originally enacted to protect, 26 promote, and preserve the general welfare. Any HB2878 Enrolled - 106 - LRB103 30786 RJT 57276 b HB2878 Enrolled- 107 -LRB103 30786 RJT 57276 b HB2878 Enrolled - 107 - LRB103 30786 RJT 57276 b HB2878 Enrolled - 107 - LRB103 30786 RJT 57276 b 1 construction of this Section that results in the repeal of 2 this Section on December 31, 2014 would be inconsistent 3 with the manifest intent of the General Assembly and 4 repugnant to the context of this Code. 5 It is hereby declared to have been the intent of the 6 General Assembly that this Section not be subject to repeal on 7 December 31, 2014. 8 This Section shall be deemed to have been in continuous 9 effect since December 20, 2011 (the effective date of Public 10 Act 97-643), and it shall continue to be in effect 11 henceforward until it is otherwise lawfully repealed. All 12 previously enacted amendments to this Section taking effect on 13 or after December 31, 2014, are hereby validated. 14 All actions taken in reliance on or pursuant to this 15 Section by any public institution of higher education, person, 16 or entity are hereby validated. 17 In order to ensure the continuing effectiveness of this 18 Section, it is set forth in full and re-enacted by this 19 amendatory Act of the 100th General Assembly. This 20 re-enactment is intended as a continuation of this Section. It 21 is not intended to supersede any amendment to this Section 22 that is enacted by the 100th General Assembly. 23 In this amendatory Act of the 100th General Assembly, the 24 base text of the reenacted Section is set forth as amended by 25 Public Act 98-1076. Striking and underscoring is used only to 26 show changes being made to the base text. HB2878 Enrolled - 107 - LRB103 30786 RJT 57276 b HB2878 Enrolled- 108 -LRB103 30786 RJT 57276 b HB2878 Enrolled - 108 - LRB103 30786 RJT 57276 b HB2878 Enrolled - 108 - LRB103 30786 RJT 57276 b 1 This Section applies to all procurements made on or before 2 the effective date of this amendatory Act of the 100th General 3 Assembly. 4 (Source: P.A. 101-640, eff. 6-12-20; 102-16, eff. 6-17-21; 5 102-721, eff. 5-6-22; 102-1119, eff. 1-23-23.) 6 ARTICLE 80. STATE FAIRGROUNDS 7 Section 80-5. The State Fair Act is amended by adding 8 Section 7.1 as follows: 9 (20 ILCS 210/7.1 new) 10 Sec. 7.1. Procurement for artistic or musical services, 11 performances, events, or productions on the State Fairgrounds. 12 (a) Procurement expenditures necessary to provide artistic 13 or musical services, performances, events, or productions 14 under this Act at the State Fairgrounds in Springfield and 15 DuQuoin are exempt from the requirements of the Illinois 16 Procurement Code. The expenditures may include, but are not 17 limited to, entertainment, advertising, concessions, space 18 rentals, sponsorships, and other services necessary to provide 19 such events. 20 (b) Notice of each contract with an annual value of more 21 than $100,000 entered into by the Department that is related 22 to the procurement of goods and services identified in this 23 Section shall be published in the Illinois Procurement HB2878 Enrolled - 108 - LRB103 30786 RJT 57276 b HB2878 Enrolled- 109 -LRB103 30786 RJT 57276 b HB2878 Enrolled - 109 - LRB103 30786 RJT 57276 b HB2878 Enrolled - 109 - LRB103 30786 RJT 57276 b 1 Bulletin within 30 calendar days after contract execution. The 2 Department shall provide the chief procurement officer, on a 3 monthly basis, a report of contracts that are related to the 4 procurement of supplies and services identified in this 5 Section. At a minimum, this report shall include the name of 6 the contractor, a description of the supply or service 7 provided, the total amount of the contract, the term of the 8 contract, and reference to the exception in this Section. A 9 copy of any or all of these contracts shall be made available 10 to the chief procurement officer immediately upon request. 11 (c) This Section is repealed on July 1, 2028. 12 ARTICLE 85. TRANSPORTATION SUSTAINABILITY PROCUREMENT PROGRAM 13 Section 85-5. The Transportation Sustainability 14 Procurement Program Act is amended by changing Section 10 as 15 follows: 16 (30 ILCS 530/10) 17 Sec. 10. Contracts for the procurement of freight, small 18 package delivery, and other cargo shipping and transportation 19 services. 20 (a) The State's Chief Procurement Officers shall, in 21 consultation with the Illinois Environmental Protection 22 Agency, develop a sustainability program for the State's 23 procurement of shipping and transportation services for HB2878 Enrolled - 109 - LRB103 30786 RJT 57276 b HB2878 Enrolled- 110 -LRB103 30786 RJT 57276 b HB2878 Enrolled - 110 - LRB103 30786 RJT 57276 b HB2878 Enrolled - 110 - LRB103 30786 RJT 57276 b 1 freight, small package delivery, and other forms of cargo. 2 (b) State contracts for the procurement of freight, small 3 package delivery, and other cargo shipping and transportation 4 services shall require providers to report, using generally 5 accepted reporting protocols adopted by the Agency for that 6 purpose: 7 (1) the amount of energy the service provider consumed 8 to provide those services to the State and the amount of 9 associated greenhouse gas emissions, including energy use 10 and greenhouse gases emitted as a result of the provider's 11 use of electricity in its facilities; 12 (2) the energy use and greenhouse gas emissions by the 13 service provider's subcontractors in the performance of 14 those services. 15 (c) The State's solicitation for the procurement of 16 freight, small package delivery, and other cargo shipping and 17 transportation services shall be subject to the Illinois 18 Procurement Code or the Governmental Joint Purchasing Act and 19 shall: 20 (1) specify how the bidder will report its energy use 21 and associated greenhouse gas emissions under the 22 contract; and 23 (2) call for bidders to disclose in their responses to 24 the solicitation: 25 (A) measures they use to reduce vehicle engine 26 idling; HB2878 Enrolled - 110 - LRB103 30786 RJT 57276 b HB2878 Enrolled- 111 -LRB103 30786 RJT 57276 b HB2878 Enrolled - 111 - LRB103 30786 RJT 57276 b HB2878 Enrolled - 111 - LRB103 30786 RJT 57276 b 1 (B) their use of multi-modal transportation, such 2 as rail, trucks, or air transport, and how the use of 3 those types of transportation is anticipated to reduce 4 costs for the State; 5 (C) the extent of their use of (i) cleaner, less 6 expensive fuels as an alternative to petroleum or (ii) 7 more efficient vehicle propulsion systems; 8 (D) the level of transparency of the provider's 9 reporting under subsection (b), and what independent 10 verification and assurance measures exist for this 11 reporting; 12 (E) their use of speed governors on heavy trucks; 13 (F) their use of recyclable packaging; 14 (G) measures of their network efficiency, 15 including the in-vehicle use of telematics or other 16 related technologies that provide for improved vehicle 17 and network optimization and efficiencies; 18 (H) their energy intensity per unit of output 19 delivered; 20 (I) how they will advance the environmental goals 21 of the State; and 22 (J) opportunities to effectively neutralize the 23 greenhouse gas emissions reported under subsection 24 (b). 25 (d) In selecting providers for such services, the State, 26 as part of a best value analysis of the responses to the HB2878 Enrolled - 111 - LRB103 30786 RJT 57276 b HB2878 Enrolled- 112 -LRB103 30786 RJT 57276 b HB2878 Enrolled - 112 - LRB103 30786 RJT 57276 b HB2878 Enrolled - 112 - LRB103 30786 RJT 57276 b 1 State's solicitation: 2 (1) shall give appropriate weight to the disclosures 3 in subdivision (c)(2) of this Section; 4 (2) shall give appropriate weight to the price and 5 quality of the services being offered; and 6 (3) may accept from the service provider an optional 7 offer at a reasonable cost of carbon neutral shipping in 8 which the provider calculates the direct and indirect 9 greenhouse gas emissions of the provider that are 10 specified under subsection (b) above, and obtains 11 independently verified carbon credits to offset those 12 emissions and then retires the carbon credits. 13 (e) The Chief Procurement Officer identified under item 14 (5) of Section 1-15.15 of the Illinois Procurement Code shall 15 adopt rules to encourage all State agencies to use the least 16 costly level of service or mode of transport (while 17 distinguishing between express or air versus ground delivery) 18 that can achieve on-time delivery for the product being 19 transported and delivered. 20 (Source: P.A. 98-348, eff. 8-14-13.) 21 ARTICLE 90. PUBLIC-PRIVATE PARTNERSHIP FOR TRANSPORTATION ACT 22 Section 90-5. The Public-Private Partnerships for 23 Transportation Act is amended by changing Sections 5, 10, 15, 24 20, 30, 35, 40, 45, 50, 55, 65, 70, 80, and 85 and by adding HB2878 Enrolled - 112 - LRB103 30786 RJT 57276 b HB2878 Enrolled- 113 -LRB103 30786 RJT 57276 b HB2878 Enrolled - 113 - LRB103 30786 RJT 57276 b HB2878 Enrolled - 113 - LRB103 30786 RJT 57276 b 1 Section 19 as follows: 2 (630 ILCS 5/5) 3 Sec. 5. Public policy and legislative intent. 4 (a) It is the public policy of the State of Illinois to 5 promote the design, development, construction, financing, and 6 operation of transportation facilities that serve the needs of 7 the public. 8 (b) Existing methods of procurement and financing of 9 transportation facilities by responsible public entities 10 transportation agencies impose limitations on the methods by 11 which transportation facilities may be developed and operated 12 within the State. 13 (c) Authorizing responsible public entities transportation 14 agencies to enter into public-private partnerships, whereby 15 private entities may develop, operate, and finance 16 transportation facilities, has the potential to promote the 17 development of transportation facilities in the State as well 18 as investment in the State. 19 (d) It is the intent of this Act to promote public-private 20 partnerships for transportation by authorizing responsible 21 public entities transportation agencies to enter into 22 public-private agreements related to the design, development, 23 construction, operation, and financing of transportation 24 facilities. 25 (e) It is the intent of this Act to encourage the practice HB2878 Enrolled - 113 - LRB103 30786 RJT 57276 b HB2878 Enrolled- 114 -LRB103 30786 RJT 57276 b HB2878 Enrolled - 114 - LRB103 30786 RJT 57276 b HB2878 Enrolled - 114 - LRB103 30786 RJT 57276 b 1 of congestion pricing in connection with toll highways, 2 pursuant to which higher toll rates are charged during times 3 or in locations of most congestion. 4 (f) It is the intent of this Act to use Illinois design 5 professionals, construction companies, and workers to the 6 greatest extent possible by offering them the right to compete 7 for this work. 8 (Source: P.A. 97-502, eff. 8-23-11.) 9 (630 ILCS 5/10) 10 Sec. 10. Definitions. As used in this Act: 11 "Approved proposal" means the proposal that is approved by 12 the responsible public entity transportation agency pursuant 13 to subsection (j) of Section 20 of this Act. 14 "Approved proposer" means the private entity whose 15 proposal is the approved proposal. 16 "Authority" means the Illinois State Toll Highway 17 Authority. 18 "Contractor" means a private entity that has entered into 19 a public-private agreement with the responsible public entity 20 transportation agency to provide services to or on behalf of 21 the responsible public entity transportation agency. 22 "Department" means the Illinois Department of 23 Transportation. 24 "Design-build agreement" means the agreement between the 25 selected private entity and the responsible public entity HB2878 Enrolled - 114 - LRB103 30786 RJT 57276 b HB2878 Enrolled- 115 -LRB103 30786 RJT 57276 b HB2878 Enrolled - 115 - LRB103 30786 RJT 57276 b HB2878 Enrolled - 115 - LRB103 30786 RJT 57276 b 1 transportation agency under which the selected private entity 2 agrees to furnish design, construction, and related services 3 for a transportation facility under this Act. 4 "Develop" or "development" means to do one or more of the 5 following: plan, design, develop, lease, acquire, install, 6 construct, reconstruct, rehabilitate, extend, or expand. 7 "Maintain" or "maintenance" includes ordinary maintenance, 8 repair, rehabilitation, capital maintenance, maintenance 9 replacement, and any other categories of maintenance that may 10 be designated by the responsible public entity transportation 11 agency. 12 "Metropolitan planning organization" means a metropolitan 13 planning organization designated under 23 U.S.C. Section 134 14 whose metropolitan planning area boundaries are partially or 15 completely within the State. 16 "Operate" or "operation" means to do one or more of the 17 following: maintain, improve, equip, modify, or otherwise 18 operate. 19 "Private entity" means any combination of one or more 20 individuals, corporations, general partnerships, limited 21 liability companies, limited partnerships, joint ventures, 22 business trusts, nonprofit entities, or other business 23 entities that are parties to a proposal for a transportation 24 project or an agreement related to a transportation project. A 25 public agency may provide services to a contractor as a 26 subcontractor or subconsultant without affecting the private HB2878 Enrolled - 115 - LRB103 30786 RJT 57276 b HB2878 Enrolled- 116 -LRB103 30786 RJT 57276 b HB2878 Enrolled - 116 - LRB103 30786 RJT 57276 b HB2878 Enrolled - 116 - LRB103 30786 RJT 57276 b 1 status of the private entity and the ability to enter into a 2 public-private agreement. A transportation agency is not a 3 private entity. 4 "Proposal" means all materials and documents prepared by 5 or on behalf of a private entity relating to the proposed 6 development, financing, or operation of a transportation 7 facility as a transportation project. 8 "Proposer" means a private entity that has submitted an 9 unsolicited proposal for a public-private agreement to a 10 responsible public entity under this Act or a proposal or 11 statement of qualifications for a public-private agreement in 12 response to a request for proposals or a request for 13 qualifications issued by a responsible public entity 14 transportation agency under this Act. 15 "Public-private agreement" means the public-private 16 agreement between the contractor and the responsible public 17 entity transportation agency relating to one or more of the 18 development, financing, or operation of a transportation 19 project that is entered into under this Act. 20 "Request for information" means all materials and 21 documents prepared by or on behalf of the responsible public 22 entity transportation agency to solicit information from 23 private entities with respect to transportation projects. 24 "Request for proposals" means all materials and documents 25 prepared by or on behalf of the responsible public entity 26 transportation agency to solicit proposals from private HB2878 Enrolled - 116 - LRB103 30786 RJT 57276 b HB2878 Enrolled- 117 -LRB103 30786 RJT 57276 b HB2878 Enrolled - 117 - LRB103 30786 RJT 57276 b HB2878 Enrolled - 117 - LRB103 30786 RJT 57276 b 1 entities to enter into a public-private agreement. 2 "Request for qualifications" means all materials and 3 documents prepared by or on behalf of the responsible public 4 entity transportation agency to solicit statements of 5 qualification from private entities to enter into a 6 public-private agreement. 7 "Responsible public entity" means the Department of 8 Transportation, the Illinois State Toll Highway Authority, and 9 any county, municipality, or other unit of local government. 10 "Revenues" means all revenues, including any combination 11 of: income; earnings and interest; user fees; lease payments; 12 allocations; federal, State, and local appropriations, grants, 13 loans, lines of credit, and credit guarantees; bond proceeds; 14 equity investments; service payments; or other receipts; 15 arising out of or in connection with a transportation project, 16 including the development, financing, and operation of a 17 transportation project. The term includes money received as 18 grants, loans, lines of credit, credit guarantees, or 19 otherwise in aid of a transportation project from the federal 20 government, the State, a unit of local government, or any 21 agency or instrumentality of the federal government, the 22 State, or a unit of local government. 23 "Shortlist" means the process by which a responsible 24 public entity transportation agency will review, evaluate, and 25 rank statements of qualifications submitted in response to a 26 request for qualifications and then identify the proposers who HB2878 Enrolled - 117 - LRB103 30786 RJT 57276 b HB2878 Enrolled- 118 -LRB103 30786 RJT 57276 b HB2878 Enrolled - 118 - LRB103 30786 RJT 57276 b HB2878 Enrolled - 118 - LRB103 30786 RJT 57276 b 1 are eligible to submit a detailed proposal in response to a 2 request for proposals. The identified proposers constitute the 3 shortlist for the transportation project to which the request 4 for proposals relates. 5 "Transportation agency" means (i) the Department or (ii) 6 the Authority. 7 "Transportation facility" means any new or existing road, 8 highway, toll highway, bridge, tunnel, intermodal facility, 9 intercity or high-speed passenger rail, or other 10 transportation facility or infrastructure, excluding airports, 11 under the jurisdiction of a responsible public entity the 12 Department or the Authority, except those facilities for the 13 Illiana Expressway. The term "transportation facility" may 14 refer to one or more transportation facilities that are 15 proposed to be developed or operated as part of a single 16 transportation project. 17 "Transportation project" or "project" means any or the 18 combination of the design, development, construction, 19 financing, or operation with respect to all or a portion of any 20 transportation facility under the jurisdiction of the 21 responsible public entity transportation agency, except those 22 facilities for the Illiana Expressway, undertaken pursuant to 23 this Act. 24 "Unit of local government" has the meaning ascribed to 25 that term in Article VII, Section 1 of the Constitution of the 26 State of Illinois and also means any unit designated as a HB2878 Enrolled - 118 - LRB103 30786 RJT 57276 b HB2878 Enrolled- 119 -LRB103 30786 RJT 57276 b HB2878 Enrolled - 119 - LRB103 30786 RJT 57276 b HB2878 Enrolled - 119 - LRB103 30786 RJT 57276 b 1 municipal corporation. 2 "Unsolicited proposal" means a written proposal that is 3 submitted to a responsible public entity on the initiative of 4 the private sector entity or entities for the purpose of 5 developing a partnership, and that is not in response to a 6 formal or informal request issued by a responsible public 7 entity. 8 "User fees" or "tolls" means the rates, tolls, fees, or 9 other charges imposed by the contractor for use of all or a 10 portion of a transportation project under a public-private 11 agreement. 12 (Source: P.A. 97-502, eff. 8-23-11; 97-858, eff. 7-27-12.) 13 (630 ILCS 5/15) 14 Sec. 15. Formation of public-private agreements; project 15 planning. 16 (a) Each responsible public entity transportation agency 17 may exercise the powers granted by this Act to do some or all 18 to design, develop, construct, finance, and operate any part 19 of one or more transportation projects through public-private 20 agreements with one or more private entities, except for 21 transportation projects for the Illiana Expressway as defined 22 in the Public Private Agreements for the Illiana Expressway 23 Act. The net proceeds, if any, arising out of a transportation 24 project or public-private agreement undertaken by the 25 Department pursuant to this Act shall be deposited into the HB2878 Enrolled - 119 - LRB103 30786 RJT 57276 b HB2878 Enrolled- 120 -LRB103 30786 RJT 57276 b HB2878 Enrolled - 120 - LRB103 30786 RJT 57276 b HB2878 Enrolled - 120 - LRB103 30786 RJT 57276 b 1 Public-Private Partnerships for Transportation Fund. The net 2 proceeds arising out of a transportation project or 3 public-private agreement undertaken by the Authority pursuant 4 to this Act shall be deposited into the Illinois State Toll 5 Highway Authority Fund and shall be used only as authorized by 6 Section 23 of the Toll Highway Act. 7 (b) The Authority shall not enter into a public-private 8 agreement involving a lease or other transfer of any toll 9 highway, or portions thereof, under the Authority's 10 jurisdiction which were open to vehicular traffic on the 11 effective date of this Act. The Authority shall not enter into 12 a public-private agreement for the purpose of making roadway 13 improvements, including but not limited to reconstruction, 14 adding lanes, and adding ramps, to any toll highway, or 15 portions thereof, under the Authority's jurisdiction which 16 were open to vehicular traffic on the effective date of this 17 Act. The Authority shall not use any revenue generated by any 18 toll highway, or portions thereof, under the Authority's 19 jurisdiction which were open to vehicular traffic on the 20 effective date of this Act to enter into or provide funding for 21 a public-private agreement. The Authority shall not use any 22 asset, or the proceeds from the sale or lease of any such 23 asset, which was owned by the Authority on the effective date 24 of this Act to enter into or provide funding for a 25 public-private agreement. The Authority may enter into a 26 public-private partnership to design, develop, construct, HB2878 Enrolled - 120 - LRB103 30786 RJT 57276 b HB2878 Enrolled- 121 -LRB103 30786 RJT 57276 b HB2878 Enrolled - 121 - LRB103 30786 RJT 57276 b HB2878 Enrolled - 121 - LRB103 30786 RJT 57276 b 1 finance, and operate new toll highways authorized by the 2 Governor and the General Assembly pursuant to Section 14.1 of 3 the Toll Highway Act, non-highway transportation projects on 4 the toll highway system such as commuter rail or high-speed 5 rail lines, and intelligent transportation infrastructure that 6 will enhance the safety, efficiency, and environmental quality 7 of the toll highway system. The Authority may operate or 8 provide operational services such as toll collection on 9 highways which are developed or financed, or both, through a 10 public-private agreement entered into by another public 11 entity, under an agreement with the public entity or 12 contractor responsible for the transportation project. 13 (c) A contractor has: 14 (1) all powers allowed by law generally to a private 15 entity having the same form of organization as the 16 contractor; and 17 (2) the power to develop, finance, and operate the 18 transportation facility and to impose user fees in 19 connection with the use of the transportation facility, 20 subject to the terms of the public-private agreement. 21 No tolls or user fees may be imposed by the contractor 22 except as set forth in a public-private agreement. 23 (d) Each year, at least 30 days prior to the beginning of 24 the transportation agency's fiscal year, and at other times 25 the transportation agency deems necessary, the Department and 26 the Authority shall submit for review to the General Assembly HB2878 Enrolled - 121 - LRB103 30786 RJT 57276 b HB2878 Enrolled- 122 -LRB103 30786 RJT 57276 b HB2878 Enrolled - 122 - LRB103 30786 RJT 57276 b HB2878 Enrolled - 122 - LRB103 30786 RJT 57276 b 1 a description of potential projects that the transportation 2 agency is considering undertaking under this Act. Any 3 submission from the Authority shall indicate which of its 4 potential projects, if any, will involve the proposer 5 operating the transportation facility for a period of one year 6 or more. Prior to commencing the procurement process under an 7 unsolicited proposal or the issuance of any request for 8 qualifications or request for proposals with respect to any 9 potential project undertaken by a responsible public entity 10 the Department or the Authority pursuant to Section 19 or 20 of 11 this Act, the commencement of a procurement process for that 12 particular potential project shall be authorized by joint 13 resolution of the General Assembly. 14 (e) (Blank). Each year, at least 30 days prior to the 15 beginning of the transportation agency's fiscal year, the 16 transportation agency shall submit a description of potential 17 projects that the transportation agency is considering 18 undertaking under this Act to each county, municipality, and 19 metropolitan planning organization, with respect to each 20 project located within its boundaries. 21 (f) Any project undertaken under this Act shall be subject 22 to all applicable planning requirements otherwise required by 23 law, including land use planning, regional planning, 24 transportation planning, and environmental compliance 25 requirements. 26 (g) (Blank). Any new transportation facility developed as HB2878 Enrolled - 122 - LRB103 30786 RJT 57276 b HB2878 Enrolled- 123 -LRB103 30786 RJT 57276 b HB2878 Enrolled - 123 - LRB103 30786 RJT 57276 b HB2878 Enrolled - 123 - LRB103 30786 RJT 57276 b 1 a project under this Act must be consistent with the regional 2 plan then in existence of any metropolitan planning 3 organization in whose boundaries the project is located. 4 (h) The responsible public entity transportation agency 5 shall hold one or more public hearings following within 30 6 days of each of its submittals to the General Assembly under 7 subsection (d) of this Section. These public hearings shall 8 address any potential project projects that the responsible 9 public entity transportation agency submitted to the General 10 Assembly for review under subsection (d). The responsible 11 public entity transportation agency shall publish a notice of 12 the hearing or hearings at least 7 days before a hearing takes 13 place, and shall include the following in the notice: (i) the 14 date, time, and place of the hearing and the address of the 15 responsible public entity transportation agency; (ii) a brief 16 description of the potential projects that the responsible 17 public entity transportation agency is considering 18 undertaking; and (iii) a statement that the public may comment 19 on the potential projects. 20 (Source: P.A. 97-502, eff. 8-23-11; 97-858, eff. 7-27-12.) 21 (630 ILCS 5/19 new) 22 Sec. 19. Unsolicited proposals. 23 (a) A responsible public entity may receive unsolicited 24 proposals for a project and may thereafter enter into a 25 public-private agreement with a private entity, or a HB2878 Enrolled - 123 - LRB103 30786 RJT 57276 b HB2878 Enrolled- 124 -LRB103 30786 RJT 57276 b HB2878 Enrolled - 124 - LRB103 30786 RJT 57276 b HB2878 Enrolled - 124 - LRB103 30786 RJT 57276 b 1 consortium of private entities, for the design, construction, 2 upgrading, operating, ownership, or financing of facilities. 3 (b) A responsible public entity may consider, evaluate, 4 and accept an unsolicited proposal for a public-private 5 partnership project from a private entity if the proposal: 6 (1) is independently developed and drafted by the 7 proposer without responsible public entity supervision; 8 (2) shows that the proposed project could benefit the 9 transportation system; 10 (3) includes a financing plan to allow the project to 11 move forward pursuant to the applicable responsible public 12 entity's budget and finance requirements; and 13 (4) includes sufficient detail and information for the 14 responsible public entity to evaluate the proposal in an 15 objective and timely manner and permit a determination 16 that the project would be worthwhile. 17 (c) The unsolicited proposal shall include the following: 18 (1) an executive summary covering the major elements 19 of the proposal; 20 (2) qualifications concerning the experience, 21 expertise, technical competence, and qualifications of the 22 private entity and of each member of its management team 23 and of other key employees, consultants, and 24 subcontractors, including the name, address, and 25 professional designation; 26 (3) a project description, including, when applicable: HB2878 Enrolled - 124 - LRB103 30786 RJT 57276 b HB2878 Enrolled- 125 -LRB103 30786 RJT 57276 b HB2878 Enrolled - 125 - LRB103 30786 RJT 57276 b HB2878 Enrolled - 125 - LRB103 30786 RJT 57276 b 1 (A) the limits, scope, and location of the 2 proposed project; 3 (B) right-of-way requirements; 4 (C) connections with other facilities and 5 improvements to those facilities necessary if the 6 project is developed; 7 (D) a conceptual project design; and 8 (E) a statement of the project's relationship to 9 and impact upon relevant existing plans of the 10 responsible public entity; 11 (4) a facilities project schedule, including when 12 applicable, estimates of: 13 (A) dates of contract award; 14 (B) start of construction; 15 (C) completion of construction; 16 (D) start of operations; and 17 (E) major maintenance or reconstruction activities 18 during the life of the proposed project agreement; 19 (5) an operating plan describing the operation of the 20 completed facility if operation of a facility is part of 21 the proposal, describing the management structure and 22 approach, the proposed period of operations, enforcement, 23 emergency response, and other relevant information; 24 (6) a finance plan describing the proposed financing 25 of the project, identifying the source of funds to, where 26 applicable, design, construct, maintain, and manage the HB2878 Enrolled - 125 - LRB103 30786 RJT 57276 b HB2878 Enrolled- 126 -LRB103 30786 RJT 57276 b HB2878 Enrolled - 126 - LRB103 30786 RJT 57276 b HB2878 Enrolled - 126 - LRB103 30786 RJT 57276 b 1 project during the term of the proposed contract; and 2 (7) the legal basis for the project and licenses and 3 certifications; the private entity must demonstrate that 4 it has all licenses and certificates necessary to complete 5 the project. 6 (d) Within 120 days after receiving an unsolicited 7 proposal, the responsible public entity shall complete a 8 preliminary evaluation of the unsolicited proposal and shall 9 either: 10 (1) if the preliminary evaluation is unfavorable, 11 return the proposal without further action; 12 (2) if the preliminary evaluation is favorable, notify 13 the proposer that the responsible public entity will 14 further evaluate the proposal; or 15 (3) request amendments, clarification, or modification 16 of the unsolicited proposal. 17 (e) The procurement process for unsolicited proposals 18 shall be as follows: 19 (1) If the responsible public entity chooses to 20 further evaluate an unsolicited proposal with the intent 21 to enter into a public-private agreement for the proposed 22 project, then the responsible public entity shall publish 23 notice in the Illinois Procurement Bulletin or in a 24 newspaper of general circulation covering the location of 25 the project at least once a week for 2 weeks stating that 26 the responsible public entity has received a proposal and HB2878 Enrolled - 126 - LRB103 30786 RJT 57276 b HB2878 Enrolled- 127 -LRB103 30786 RJT 57276 b HB2878 Enrolled - 127 - LRB103 30786 RJT 57276 b HB2878 Enrolled - 127 - LRB103 30786 RJT 57276 b 1 will accept other proposals for the same project. The time 2 frame within which the responsible public entity may 3 accept other proposals shall be determined by the 4 responsible public entity on a project-by-project basis 5 based upon the complexity of the transportation project 6 and the public benefit to be gained by allowing a longer or 7 shorter period of time within which other proposals may be 8 received; however, the time frame for allowing other 9 proposals must be at least 21 days, but no more than 120 10 days, after the initial date of publication. 11 (2) A copy of the notice must be mailed to each local 12 government directly affected by the transportation 13 project. 14 (3) The responsible public entity shall provide 15 reasonably sufficient information, including the identity 16 of its contact person, to enable other private entities to 17 make proposals. 18 (4) If, after no less than 120 days, no 19 counterproposal is received, or if the counterproposals 20 are evaluated and found to be equal to or inferior to the 21 original unsolicited proposal, the responsible public 22 entity may proceed to negotiate a contract with the 23 original proposer. 24 (5) If, after no less than 120 days, one or more 25 counterproposals meeting unsolicited proposal standards 26 are received, and if, in the opinion of the responsible HB2878 Enrolled - 127 - LRB103 30786 RJT 57276 b HB2878 Enrolled- 128 -LRB103 30786 RJT 57276 b HB2878 Enrolled - 128 - LRB103 30786 RJT 57276 b HB2878 Enrolled - 128 - LRB103 30786 RJT 57276 b 1 public entity, the counterproposals are evaluated and 2 found to be superior to the original unsolicited proposal, 3 the responsible public entity shall proceed to determine 4 the successful participant through a final procurement 5 phase known as "Best and Final Offer" (BAFO). The BAFO is a 6 process whereby a responsible public entity shall invite 7 the original private sector party and the proponent 8 submitting the superior counterproposal to engage in a 9 BAFO phase. The invitation to participate in the BAFO 10 phase will provide to each participating proposer: 11 (A) the general concepts that were considered 12 superior to the original proposal, while keeping 13 proprietary information contained in the proposals 14 confidential to the extent possible; and 15 (B) the preestablished evaluation criteria or the 16 "basis of award" to be used to determine the 17 successful proponent. 18 (6) Offers received in response to the BAFO invitation 19 will be reviewed by the responsible public entity and 20 scored in accordance with a preestablished criteria, or 21 alternatively, in accordance with the basis of award 22 provision identified through the BAFO process. The 23 successful proponent will be the proponent offering "best 24 value" to the responsible public entity. 25 (7) In all cases, the basis of award will be the best 26 value to the responsible public entity, as determined by HB2878 Enrolled - 128 - LRB103 30786 RJT 57276 b HB2878 Enrolled- 129 -LRB103 30786 RJT 57276 b HB2878 Enrolled - 129 - LRB103 30786 RJT 57276 b HB2878 Enrolled - 129 - LRB103 30786 RJT 57276 b 1 the responsible public entity. 2 (f) After a comprehensive evaluation and acceptance of an 3 unsolicited proposal and any alternatives, the responsible 4 public entity may commence negotiations with a proposer, 5 considering: 6 (1) the proposal has received a favorable 7 comprehensive evaluation; 8 (2) the proposal is not duplicative of existing 9 infrastructure project; 10 (3) the alternative proposal does not closely resemble 11 a pending competitive proposal for a public-private 12 private partnership or other procurement; 13 (4) the proposal demonstrates a unique method, 14 approach, or concept; 15 (5) facts and circumstances that preclude or warrant 16 additional competition; 17 (6) the availability of any funds, debts, or assets 18 that the State will contribute to the project; 19 (7) facts and circumstances demonstrating that the 20 project will likely have a significant adverse impact on 21 on State bond ratings; and 22 (8) indemnifications included in the proposal. 23 (630 ILCS 5/20) 24 Sec. 20. Competitive procurement Procurement process. 25 (a) A responsible public entity may solicit proposals for HB2878 Enrolled - 129 - LRB103 30786 RJT 57276 b HB2878 Enrolled- 130 -LRB103 30786 RJT 57276 b HB2878 Enrolled - 130 - LRB103 30786 RJT 57276 b HB2878 Enrolled - 130 - LRB103 30786 RJT 57276 b 1 a transportation project from private entities. The 2 responsible public entity transportation agency seeking to 3 enter into a public-private partnership with a private entity 4 for the development, finance, and operation of a 5 transportation facility as a transportation project shall 6 determine and set forth the criteria for the selection 7 process. The responsible public entity transportation agency 8 shall use (i) a competitive sealed bidding process, (ii) a 9 competitive sealed proposal process, or (iii) a design-build 10 procurement process in accordance with Section 25 of this Act. 11 Before using one of these processes the responsible public 12 entity transportation agency may use a request for information 13 to obtain information relating to possible public-private 14 partnerships. 15 (b) If a transportation project will require the 16 performance of design work, the responsible public entity 17 transportation agency shall use the shortlist selection 18 process set forth in subsection (g) of this Section to 19 evaluate and shortlist private entities based on 20 qualifications, including but not limited to design 21 qualifications. 22 A request for qualifications, request for proposals, or 23 public-private agreement awarded to a contractor for a 24 transportation project shall require that any subsequent need 25 for architectural, engineering, or land surveying services 26 which arises after the submittal of the request for HB2878 Enrolled - 130 - LRB103 30786 RJT 57276 b HB2878 Enrolled- 131 -LRB103 30786 RJT 57276 b HB2878 Enrolled - 131 - LRB103 30786 RJT 57276 b HB2878 Enrolled - 131 - LRB103 30786 RJT 57276 b 1 qualifications or request for proposals or the awarding of the 2 public-private agreement shall be procured by the contractor 3 using a qualifications-based selection process consisting of: 4 (1) the publication of notice of availability of 5 services; 6 (2) a statement of desired qualifications; 7 (3) an evaluation based on the desired qualifications; 8 (4) the development of a shortlist ranking the firms 9 in order of qualifications; and 10 (5) negotiations with the ranked firms for a fair and 11 reasonable fee. 12 Compliance with the Architectural, Engineering, and Land 13 Surveying Qualifications Based Selection Act shall be deemed 14 prima facie compliance with this subsection (b). Every 15 transportation project contract shall include provisions 16 setting forth the requirements of this subsection (b). 17 (c) (Blank). Prior to commencing a procurement for a 18 transportation project under this Act, the transportation 19 agency shall notify any other applicable public agency, 20 including the Authority, in all cases involving toll 21 facilities where the Department would commence the 22 procurement, of its interest in undertaking the procurement 23 and shall provide the other public agency or agencies with an 24 opportunity to offer to develop and implement the 25 transportation project. The transportation agency shall supply 26 the other public agency or agencies with no less than the same HB2878 Enrolled - 131 - LRB103 30786 RJT 57276 b HB2878 Enrolled- 132 -LRB103 30786 RJT 57276 b HB2878 Enrolled - 132 - LRB103 30786 RJT 57276 b HB2878 Enrolled - 132 - LRB103 30786 RJT 57276 b 1 level and type of information concerning the project that the 2 transportation agency would supply to private entities in the 3 procurement, unless that information is not then available, in 4 which case the transportation agency shall supply the other 5 public agency or agencies with the maximum amount of relevant 6 information about the project as is then reasonably available. 7 The transportation agency shall make available to the other 8 public agencies the same subsidies, benefits, concessions, and 9 other consideration that it intends to make available to the 10 private entities in the procurement. 11 The public agencies shall have a maximum period of 60 days 12 to review the information about the proposed transportation 13 project and to respond to the transportation agency in writing 14 to accept or reject the opportunity to develop and implement 15 the transportation project. If a public agency rejects the 16 opportunity during the 60-day period, then the public agency 17 may not participate in the procurement for the proposed 18 transportation project by submitting a proposal of its own. If 19 a public agency fails to accept or reject this opportunity in 20 writing within the 60-day period, it shall be deemed to have 21 rejected the opportunity. 22 If a public agency accepts the opportunity within the 23 60-day period, then the public agency shall have up to 120 days 24 (or a longer period, if extended by the transportation 25 agency), to (i) submit to the transportation agency a 26 reasonable plan for development of the transportation project; HB2878 Enrolled - 132 - LRB103 30786 RJT 57276 b HB2878 Enrolled- 133 -LRB103 30786 RJT 57276 b HB2878 Enrolled - 133 - LRB103 30786 RJT 57276 b HB2878 Enrolled - 133 - LRB103 30786 RJT 57276 b 1 (ii) if applicable, make an offer of reasonable consideration 2 for the opportunity to undertake the transportation project; 3 and (iii) negotiate a mutually acceptable intergovernmental 4 agreement with the transportation agency that facilitates the 5 development of the transportation project and requires that 6 the transportation agency follow its procurement procedures 7 under the Illinois Procurement Code and applicable rules 8 rather than this Act. In considering whether a public agency's 9 plan for developing and implementing the project is 10 reasonable, the transportation agency shall consider the 11 public agency's history of developing and implementing similar 12 projects, the public agency's current capacity to develop and 13 implement the proposed project, the user charges, if any, 14 contemplated by the public agency's plan and how these user 15 charges compare with user charges that would be imposed by a 16 private entity developing and implementing the same project, 17 the project delivery schedule proposed by the public agency, 18 and other reasonable factors that are necessary, including 19 consideration of risks and whether subsidy costs may be 20 reduced, to determine whether development and implementation 21 of the project by the public agency is in the best interest of 22 the people of this State. 23 (d) (Blank). If the transportation agency rejects or fails 24 to negotiate mutually acceptable terms regarding a public 25 agency's plan for developing and implementing the 26 transportation project during the 120-day period described in HB2878 Enrolled - 133 - LRB103 30786 RJT 57276 b HB2878 Enrolled- 134 -LRB103 30786 RJT 57276 b HB2878 Enrolled - 134 - LRB103 30786 RJT 57276 b HB2878 Enrolled - 134 - LRB103 30786 RJT 57276 b 1 subsection (c), then the public agency may not participate in 2 the procurement for the proposed transportation project by 3 submitting a proposal of its own. Following a rejection or 4 failure to reach agreement regarding a public agency's plan, 5 if the transportation agency later proceeds with a procurement 6 in which it materially changes (i) the nature or scope of the 7 project; (ii) any subsidies, benefits, concessions, or other 8 significant project-related considerations made available to 9 the bidders; or (iii) any other terms of the project, as 10 compared to when the transportation agency supplied 11 information about the project to public agencies under 12 subsection (c), then the transportation agency shall give 13 public agencies another opportunity in accordance with 14 subsection (c) to provide proposals for developing and 15 implementing the project. 16 (e) (Blank). Nothing in this Section 20 requires a 17 transportation agency to go through a procurement process 18 prior to developing and implementing a project through a 19 public agency as described in subsection (c). 20 (f) All procurement processes shall incorporate 21 requirements and set forth goals for participation by 22 disadvantaged business enterprises as allowed under State and 23 federal law. 24 (g) The responsible public entity transportation agency 25 shall establish a process to shortlist potential private 26 entities. The responsible public entity transportation agency HB2878 Enrolled - 134 - LRB103 30786 RJT 57276 b HB2878 Enrolled- 135 -LRB103 30786 RJT 57276 b HB2878 Enrolled - 135 - LRB103 30786 RJT 57276 b HB2878 Enrolled - 135 - LRB103 30786 RJT 57276 b 1 shall: (i) provide a public notice of the shortlisting process 2 for such period as deemed appropriate by the agency; (ii) set 3 forth requirements and evaluation criteria in a request for 4 qualifications; (iii) develop a shortlist by determining which 5 private entities that have submitted statements of 6 qualification, if any, meet the minimum requirements and best 7 satisfy the evaluation criteria set forth in the request for 8 qualifications; and (iv) allow only those entities, or groups 9 of entities such as unincorporated joint ventures, that have 10 been shortlisted to submit proposals or bids. Throughout the 11 procurement period and as necessary following the award of a 12 contract, the responsible public entity transportation agency 13 shall make publicly available on its website information 14 regarding firms that are prequalified by the responsible 15 public entity transportation agency pursuant to Section 20 of 16 the Architectural, Engineering, and Land Surveying 17 Qualifications Based Selection Act to provide architectural, 18 engineering, and land surveying services. The responsible 19 public entities transportation agencies shall require private 20 entities to use firms prequalified under this Act to provide 21 architectural, engineering, and land surveying services. Firms 22 identified to provide architectural, engineering, and land 23 surveying services in a statement of qualifications shall be 24 prequalified under the Act to provide the identified services 25 prior to the responsible public entity's transportation 26 agency's award of the contract. HB2878 Enrolled - 135 - LRB103 30786 RJT 57276 b HB2878 Enrolled- 136 -LRB103 30786 RJT 57276 b HB2878 Enrolled - 136 - LRB103 30786 RJT 57276 b HB2878 Enrolled - 136 - LRB103 30786 RJT 57276 b 1 (h) Competitive sealed bidding requirements: 2 (1) All contracts shall be awarded by competitive 3 sealed bidding except as otherwise provided in subsection 4 (i) of this Section, Section 19 of this Act, and Section 25 5 of this Act. 6 (2) An invitation for bids shall be issued and shall 7 include a description of the public-private partnership 8 with a private entity for the development, finance, and 9 operation of a transportation facility as a transportation 10 project, and the material contractual terms and conditions 11 applicable to the procurement. 12 (3) Public notice of the invitation for bids shall be 13 published in the State of Illinois Procurement Bulletin at 14 least 21 days before the date set in the invitation for the 15 opening of bids. 16 (4) Bids shall be opened publicly in the presence of 17 one or more witnesses at the time and place designated in 18 the invitation for bids. The name of each bidder, the 19 amount of each bid, and other relevant information as may 20 be specified by rule shall be recorded. After the award of 21 the contract, the winning bid and the record of each 22 unsuccessful bid shall be open to public inspection. 23 (5) Bids shall be unconditionally accepted without 24 alteration or correction, except as authorized in this 25 Act. Bids shall be evaluated based on the requirements set 26 forth in the invitation for bids, which may include HB2878 Enrolled - 136 - LRB103 30786 RJT 57276 b HB2878 Enrolled- 137 -LRB103 30786 RJT 57276 b HB2878 Enrolled - 137 - LRB103 30786 RJT 57276 b HB2878 Enrolled - 137 - LRB103 30786 RJT 57276 b 1 criteria to determine acceptability such as inspection, 2 testing, quality, workmanship, delivery, and suitability 3 for a particular purpose. Those criteria that will affect 4 the bid price and be considered in evaluation for award, 5 such as discounts, transportation costs, and total or life 6 cycle costs, shall be objectively measurable. The 7 invitation for bids shall set forth the evaluation 8 criteria to be used. 9 (6) Correction or withdrawal of inadvertently 10 erroneous bids before or after award, or cancellation of 11 awards of contracts based on bid mistakes, shall be 12 permitted in accordance with rules. After bid opening, no 13 changes in bid prices or other provisions of bids 14 prejudicial to the interest of the State or fair 15 competition shall be permitted. All decisions to permit 16 the correction or withdrawal of bids based on bid mistakes 17 shall be supported by written determination made by the 18 responsible public entity transportation agency. 19 (7) The contract shall be awarded with reasonable 20 promptness by written notice to the lowest responsible and 21 responsive bidder whose bid meets the requirements and 22 criteria set forth in the invitation for bids, except when 23 the responsible public entity transportation agency 24 determines it is not in the best interest of the State and 25 by written explanation determines another bidder shall 26 receive the award. The explanation shall appear in the HB2878 Enrolled - 137 - LRB103 30786 RJT 57276 b HB2878 Enrolled- 138 -LRB103 30786 RJT 57276 b HB2878 Enrolled - 138 - LRB103 30786 RJT 57276 b HB2878 Enrolled - 138 - LRB103 30786 RJT 57276 b 1 appropriate volume of the State of Illinois Procurement 2 Bulletin. The written explanation must include: 3 (A) a description of the responsible public 4 entity's agency's needs; 5 (B) a determination that the anticipated cost will 6 be fair and reasonable; 7 (C) a listing of all responsible and responsive 8 bidders; and 9 (D) the name of the bidder selected, pricing, and 10 the reasons for selecting that bidder. 11 (8) When it is considered impracticable to initially 12 prepare a purchase description to support an award based 13 on price, an invitation for bids may be issued requesting 14 the submission of unpriced offers to be followed by an 15 invitation for bids limited to those bidders whose offers 16 have been qualified under the criteria set forth in the 17 first solicitation. 18 (i) Competitive sealed proposal requirements: 19 (1) When the responsible public entity transportation 20 agency determines in writing that the use of competitive 21 sealed bidding or design-build procurement is either not 22 practicable or not advantageous to the State, a contract 23 may be entered into by competitive sealed proposals. 24 (2) Proposals shall be solicited through a request for 25 proposals. 26 (3) Public notice of the request for proposals shall HB2878 Enrolled - 138 - LRB103 30786 RJT 57276 b HB2878 Enrolled- 139 -LRB103 30786 RJT 57276 b HB2878 Enrolled - 139 - LRB103 30786 RJT 57276 b HB2878 Enrolled - 139 - LRB103 30786 RJT 57276 b 1 be published in the State of Illinois Procurement Bulletin 2 at least 21 days before the date set in the invitation for 3 the opening of proposals. 4 (4) Proposals shall be opened publicly in the presence 5 of one or more witnesses at the time and place designated 6 in the request for proposals, but proposals shall be 7 opened in a manner to avoid disclosure of contents to 8 competing offerors during the process of negotiation. A 9 record of proposals shall be prepared and shall be open 10 for public inspection after contract award. 11 (5) The requests for proposals shall state the 12 relative importance of price and other evaluation factors. 13 Proposals shall be submitted in 2 parts: (i) covering 14 items except price; and (ii) covering price. The first 15 part of all proposals shall be evaluated and ranked 16 independently of the second part of all proposals. 17 (6) As provided in the request for proposals and under 18 any applicable rules, discussions may be conducted with 19 responsible offerors who submit proposals determined to be 20 reasonably susceptible of being selected for award for the 21 purpose of clarifying and assuring full understanding of 22 and responsiveness to the solicitation requirements. Those 23 offerors shall be accorded fair and equal treatment with 24 respect to any opportunity for discussion and revision of 25 proposals. Revisions may be permitted after submission and 26 before award for the purpose of obtaining best and final HB2878 Enrolled - 139 - LRB103 30786 RJT 57276 b HB2878 Enrolled- 140 -LRB103 30786 RJT 57276 b HB2878 Enrolled - 140 - LRB103 30786 RJT 57276 b HB2878 Enrolled - 140 - LRB103 30786 RJT 57276 b 1 offers. In conducting discussions there shall be no 2 disclosure of any information derived from proposals 3 submitted by competing offerors. If information is 4 disclosed to any offeror, it shall be provided to all 5 competing offerors. 6 (7) Awards shall be made to the responsible offeror 7 whose proposal is determined in writing to be the most 8 advantageous to the State, taking into consideration price 9 and the evaluation factors set forth in the request for 10 proposals. The contract file shall contain the basis on 11 which the award is made. 12 (j) The responsible public entity In the case of a 13 proposal or proposals to the Department or the Authority, the 14 transportation agency shall determine, based on its review and 15 evaluation of the proposal or proposals received in response 16 to the request for proposals, which one or more proposals, if 17 any, best serve the public purpose of this Act and satisfy the 18 criteria set forth in the request for proposals and, with 19 respect to such proposal or proposals, shall: 20 (1) submit the proposal or proposals to the Commission 21 on Government Forecasting and Accountability, which, 22 within 20 days of submission by the responsible public 23 entity transportation agency, shall complete a review of 24 the proposal or proposals and report on the value of the 25 proposal or proposals to the State; 26 (2) hold one or more public hearings on the proposal HB2878 Enrolled - 140 - LRB103 30786 RJT 57276 b HB2878 Enrolled- 141 -LRB103 30786 RJT 57276 b HB2878 Enrolled - 141 - LRB103 30786 RJT 57276 b HB2878 Enrolled - 141 - LRB103 30786 RJT 57276 b 1 or proposals, publish notice of the hearing or hearings at 2 least 7 days before the hearing, and include the following 3 in the notice: (i) the date, time, and place of the hearing 4 and the address of the responsible public entity 5 transportation agency, (ii) the subject matter of the 6 hearing, (iii) a description of the agreement to be 7 awarded, (iv) the determination made by the responsible 8 public entity transportation agency that such proposal or 9 proposals best serve the public purpose of this Act and 10 satisfy the criteria set forth in the request for 11 proposals, and (v) that the public may be heard on the 12 proposal or proposals during the public hearing; and 13 (3) determine whether or not to recommend to the 14 Governor that the Governor approve the proposal or 15 proposals. 16 The Governor may approve one or more proposals recommended 17 by the Department or the Authority based upon the review, 18 evaluation, and recommendation of the responsible public 19 entity transportation agency, the review and report of the 20 Commission on Government Forecasting and Accountability, the 21 public hearing, and the best interests of the State. 22 (k) In addition to any other rights under this Act, in 23 connection with any procurement under this Act, the following 24 rights are reserved to each responsible public entity 25 transportation agency: 26 (1) to withdraw a request for information, a request HB2878 Enrolled - 141 - LRB103 30786 RJT 57276 b HB2878 Enrolled- 142 -LRB103 30786 RJT 57276 b HB2878 Enrolled - 142 - LRB103 30786 RJT 57276 b HB2878 Enrolled - 142 - LRB103 30786 RJT 57276 b 1 for qualifications, or a request for proposals at any 2 time, and to publish a new request for information, 3 request for qualifications, or request for proposals; 4 (2) to not approve a proposal for any reason; 5 (3) to not award a public-private agreement for any 6 reason; 7 (4) to request clarifications to any statement of 8 information, qualifications, or proposal received, to seek 9 one or more revised proposals or one or more best and final 10 offers, or to conduct negotiations with one or more 11 private entities that have submitted proposals; 12 (5) to modify, during the pendency of a procurement, 13 the terms, provisions, and conditions of a request for 14 information, request for qualifications, or request for 15 proposals or the technical specifications or form of a 16 public-private agreement; 17 (6) to interview proposers; and 18 (7) any other rights available to the responsible 19 public entity transportation agency under applicable law 20 and regulations. 21 (l) If a proposal is approved, the responsible public 22 entity transportation agency shall execute the public-private 23 agreement, publish notice of the execution of the 24 public-private agreement on its website and in a newspaper or 25 newspapers of general circulation within the county or 26 counties in which the transportation project is to be located, HB2878 Enrolled - 142 - LRB103 30786 RJT 57276 b HB2878 Enrolled- 143 -LRB103 30786 RJT 57276 b HB2878 Enrolled - 143 - LRB103 30786 RJT 57276 b HB2878 Enrolled - 143 - LRB103 30786 RJT 57276 b 1 and publish the entire agreement on its website. Any action to 2 contest the validity of a public-private agreement entered 3 into under this Act must be brought no later than 60 days after 4 the date of publication of the notice of execution of the 5 public-private agreement. 6 (m) For any transportation project with an estimated 7 construction cost of over $50,000,000, the responsible public 8 entity transportation agency may also require the approved 9 proposer to pay the costs for an independent audit of any and 10 all traffic and cost estimates associated with the approved 11 proposal, as well as a review of all public costs and potential 12 liabilities to which taxpayers could be exposed (including 13 improvements to other transportation facilities that may be 14 needed as a result of the approved proposal, failure by the 15 approved proposer to reimburse the transportation agency for 16 services provided, and potential risk and liability in the 17 event the approved proposer defaults on the public-private 18 agreement or on bonds issued for the project). If required by 19 the responsible public entity transportation agency, this 20 independent audit must be conducted by an independent 21 consultant selected by the transportation agency, and all 22 information from the review must be fully disclosed. 23 (n) The responsible public entity transportation agency 24 may also apply for, execute, or endorse applications submitted 25 by private entities to obtain federal credit assistance for 26 qualifying projects developed or operated pursuant to this HB2878 Enrolled - 143 - LRB103 30786 RJT 57276 b HB2878 Enrolled- 144 -LRB103 30786 RJT 57276 b HB2878 Enrolled - 144 - LRB103 30786 RJT 57276 b HB2878 Enrolled - 144 - LRB103 30786 RJT 57276 b 1 Act. 2 (Source: P.A. 97-502, eff. 8-23-11; 97-858, eff. 7-27-12.) 3 (630 ILCS 5/30) 4 Sec. 30. Interim agreements. 5 (a) Prior to or in connection with the negotiation of the 6 public-private agreement, the responsible public entity 7 transportation agency may enter into an interim agreement with 8 the approved proposer. Such interim agreement may: 9 (1) permit the approved proposer to commence 10 activities relating to a proposed project as the 11 responsible public entity transportation agency and the 12 approved proposer shall agree to and for which the 13 approved proposer may be compensated, including, but not 14 limited to, project planning, advance right-of-way 15 acquisition, design and engineering, environmental 16 analysis and mitigation, survey, conducting transportation 17 and revenue studies, and ascertaining the availability of 18 financing for the proposed facility or facilities; 19 (2) establish the process and timing of the exclusive 20 negotiation of a public-private agreement with an approved 21 proposer; 22 (3) require that in the event the responsible public 23 entity transportation agency determines not to proceed 24 with a project after the approved proposer and the 25 responsible public entity transportation agency have HB2878 Enrolled - 144 - LRB103 30786 RJT 57276 b HB2878 Enrolled- 145 -LRB103 30786 RJT 57276 b HB2878 Enrolled - 145 - LRB103 30786 RJT 57276 b HB2878 Enrolled - 145 - LRB103 30786 RJT 57276 b 1 executed an interim agreement, and thereby terminates the 2 interim agreement or declines to proceed with negotiation 3 of a public-private agreement with an approved proposer, 4 the responsible public entity transportation agency shall 5 pay to the approved proposer certain fees and costs 6 incurred by the approved proposer; 7 (4) establish the ownership in the State or in the 8 Authority of the concepts and designs in the event of 9 termination of the interim agreement; 10 (5) establish procedures for the selection of 11 professional design firms and subcontractors, which shall 12 include procedures consistent with the Architectural, 13 Engineering, and Land Surveying Qualifications Based 14 Selection Act for the selection of design professional 15 firms and may include, in the discretion of the 16 responsible public entity transportation agency, 17 procedures consistent with the low bid procurement 18 procedures outlined in the Illinois Procurement Code for 19 the selection of construction companies; and 20 (6) contain any other provisions related to any aspect 21 of the transportation project that the parties may deem 22 appropriate. 23 (b) A responsible public entity transportation agency may 24 enter into an interim agreement with multiple approved 25 proposers if the responsible public entity transportation 26 agency determines in writing that it is in the public interest HB2878 Enrolled - 145 - LRB103 30786 RJT 57276 b HB2878 Enrolled- 146 -LRB103 30786 RJT 57276 b HB2878 Enrolled - 146 - LRB103 30786 RJT 57276 b HB2878 Enrolled - 146 - LRB103 30786 RJT 57276 b 1 to do so. 2 (c) The approved proposer shall select firms that are 3 prequalified by the responsible public entity transportation 4 agency pursuant to Section 20 of the Architectural, 5 Engineering, and Land Surveying Qualifications Based Selection 6 Act to provide architectural, engineering, and land surveying 7 services to undertake activities related to the transportation 8 project. 9 (Source: P.A. 97-502, eff. 8-23-11.) 10 (630 ILCS 5/35) 11 Sec. 35. Public-private agreements. 12 (a) Unless undertaking actions otherwise permitted in an 13 interim agreement entered into under Section 30 of this Act, 14 before developing, financing, or operating the transportation 15 project, the approved proposer shall enter into a 16 public-private agreement with the transportation agency. 17 Subject to the requirements of this Act, a public-private 18 agreement may provide that the approved proposer, acting on 19 behalf of the responsible public entity transportation agency, 20 is partially or entirely responsible for any combination of 21 developing, financing, or operating the transportation project 22 under terms set forth in the public-private agreement. 23 (b) The public-private agreement may, as determined 24 appropriate by the responsible public entity transportation 25 agency for the particular transportation project, provide for HB2878 Enrolled - 146 - LRB103 30786 RJT 57276 b HB2878 Enrolled- 147 -LRB103 30786 RJT 57276 b HB2878 Enrolled - 147 - LRB103 30786 RJT 57276 b HB2878 Enrolled - 147 - LRB103 30786 RJT 57276 b 1 some or all of the following: 2 (1) Development, financing, and operation of the 3 transportation project under terms set forth in the 4 public-private agreement, in any form as deemed 5 appropriate by the responsible public entity 6 transportation agency, including, but not limited to, a 7 long-term concession and lease, a design-bid-build 8 agreement, a design-build agreement, a 9 design-build-maintain agreement, a design-build-finance 10 agreement, a design-build-operate-maintain agreement and a 11 design-build-finance-operate-maintain agreement. 12 (2) Delivery of performance and payment bonds or other 13 performance security determined suitable by the 14 responsible public entity transportation agency, including 15 letters of credit, United States bonds and notes, parent 16 guaranties, and cash collateral, in connection with the 17 development, financing, or operation of the transportation 18 project, in the forms and amounts set forth in the 19 public-private agreement or otherwise determined as 20 satisfactory by the responsible public entity 21 transportation agency to protect the responsible public 22 entity transportation agency and payment bond 23 beneficiaries who have a direct contractual relationship 24 with the contractor or a subcontractor of the contractor 25 to supply labor or material. The payment or performance 26 bond or alternative form of performance security is not HB2878 Enrolled - 147 - LRB103 30786 RJT 57276 b HB2878 Enrolled- 148 -LRB103 30786 RJT 57276 b HB2878 Enrolled - 148 - LRB103 30786 RJT 57276 b HB2878 Enrolled - 148 - LRB103 30786 RJT 57276 b 1 required for the portion of a public-private agreement 2 that includes only design, planning, or financing 3 services, the performance of preliminary studies, or the 4 acquisition of real property. 5 (3) Review of plans for any development or operation, 6 or both, of the transportation project by the responsible 7 public entity transportation agency. 8 (4) Inspection of any construction of or improvements 9 to the transportation project by the responsible public 10 entity transportation agency or another entity designated 11 by the responsible public entity transportation agency or 12 under the public-private agreement to ensure that the 13 construction or improvements conform to the standards set 14 forth in the public-private agreement or are otherwise 15 acceptable to the responsible public entity transportation 16 agency. 17 (5) Maintenance of: 18 (A) one or more policies of public liability 19 insurance (copies of which shall be filed with the 20 responsible public entity transportation agency 21 accompanied by proofs of coverage); or 22 (B) self-insurance; 23 each in form and amount as set forth in the public-private 24 agreement or otherwise satisfactory to the responsible 25 public entity transportation agency as reasonably 26 sufficient to insure coverage of tort liability to the HB2878 Enrolled - 148 - LRB103 30786 RJT 57276 b HB2878 Enrolled- 149 -LRB103 30786 RJT 57276 b HB2878 Enrolled - 149 - LRB103 30786 RJT 57276 b HB2878 Enrolled - 149 - LRB103 30786 RJT 57276 b 1 public and employees and to enable the continued operation 2 of the transportation project. 3 (6) Where operations are included within the 4 contractor's obligations under the public-private 5 agreement, monitoring of the maintenance practices of the 6 contractor by the responsible public entity transportation 7 agency or another entity designated by the responsible 8 public entity transportation agency or under the 9 public-private agreement and the taking of the actions the 10 responsible public entity transportation agency finds 11 appropriate to ensure that the transportation project is 12 properly maintained. 13 (7) Reimbursement to be paid to the responsible public 14 entity transportation agency as set forth in the 15 public-private agreement for services provided by the 16 responsible public entity transportation agency. 17 (8) Filing of appropriate financial statements and 18 reports as set forth in the public-private agreement or as 19 otherwise in a form acceptable to the responsible public 20 entity transportation agency on a periodic basis. 21 (9) Compensation or payments to the contractor. 22 Compensation or payments may include any or a combination 23 of the following: 24 (A) a base fee and additional fee for project 25 savings as the design-builder of a construction 26 project; HB2878 Enrolled - 149 - LRB103 30786 RJT 57276 b HB2878 Enrolled- 150 -LRB103 30786 RJT 57276 b HB2878 Enrolled - 150 - LRB103 30786 RJT 57276 b HB2878 Enrolled - 150 - LRB103 30786 RJT 57276 b 1 (B) a development fee, payable on a lump-sum 2 basis, progress payment basis, time and materials 3 basis, or another basis deemed appropriate by the 4 responsible public entity transportation agency; 5 (C) an operations fee, payable on a lump-sum 6 basis, time and material basis, periodic basis, or 7 another basis deemed appropriate by the responsible 8 public entity transportation agency; 9 (D) some or all of the revenues, if any, arising 10 out of operation of the transportation project; 11 (E) a maximum rate of return on investment or 12 return on equity or a combination of the two; 13 (F) in-kind services, materials, property, 14 equipment, or other items; 15 (G) compensation in the event of any termination; 16 (H) availability payments or similar arrangements 17 whereby payments are made to the contractor pursuant 18 to the terms set forth in the public-private agreement 19 or related agreements; or 20 (I) other compensation set forth in the 21 public-private agreement or otherwise deemed 22 appropriate by the responsible public entity 23 transportation agency. 24 (10) Compensation or payments to the responsible 25 public entity transportation agency, if any. Compensation 26 or payments may include any or a combination of the HB2878 Enrolled - 150 - LRB103 30786 RJT 57276 b HB2878 Enrolled- 151 -LRB103 30786 RJT 57276 b HB2878 Enrolled - 151 - LRB103 30786 RJT 57276 b HB2878 Enrolled - 151 - LRB103 30786 RJT 57276 b 1 following: 2 (A) a concession or lease payment or other fee, 3 which may be payable upfront or on a periodic basis or 4 on another basis deemed appropriate by the responsible 5 public entity transportation agency; 6 (B) sharing of revenues, if any, from the 7 operation of the transportation project; 8 (C) sharing of project savings from the 9 construction of the transportation project; 10 (D) payment for any services, materials, 11 equipment, personnel, or other items provided by the 12 responsible public entity transportation agency to the 13 contractor under the public-private agreement or in 14 connection with the transportation project; or 15 (E) other compensation set forth in the 16 public-private agreement or otherwise deemed 17 appropriate by the responsible public entity 18 transportation agency. 19 (11) The date and terms of termination of the 20 contractor's authority and duties under the public-private 21 agreement and the circumstances under which the 22 contractor's authority and duties may be terminated prior 23 to that date. 24 (12) Reversion of the transportation project to the 25 responsible public entity transportation agency at the 26 termination or expiration of the public-private agreement. HB2878 Enrolled - 151 - LRB103 30786 RJT 57276 b HB2878 Enrolled- 152 -LRB103 30786 RJT 57276 b HB2878 Enrolled - 152 - LRB103 30786 RJT 57276 b HB2878 Enrolled - 152 - LRB103 30786 RJT 57276 b 1 (13) Rights and remedies of the responsible public 2 entity transportation agency in the event that the 3 contractor defaults or otherwise fails to comply with the 4 terms of the public-private agreement. 5 (14) Procedures for the selection of professional 6 design firms and subcontractors, which shall include 7 procedures consistent with the Architectural, Engineering, 8 and Land Surveying Qualifications Based Selection Act for 9 the selection of professional design firms and may 10 include, in the discretion of the responsible public 11 entity transportation agency, procedures consistent with 12 the low bid procurement procedures outlined in the 13 Illinois Procurement Code for the selection of 14 construction companies. 15 (15) Other terms, conditions, and provisions that the 16 responsible public entity transportation agency believes 17 are in the public interest. 18 (c) The responsible public entity transportation agency 19 may fix and revise the amounts of user fees that a contractor 20 may charge and collect for the use of any part of a 21 transportation project in accordance with the public-private 22 agreement. In fixing the amounts, the responsible public 23 entity transportation agency may establish maximum amounts for 24 the user fees and may provide that the maximums and any 25 increases or decreases of those maximums shall be based upon 26 the indices, methodologies, or other factors the responsible HB2878 Enrolled - 152 - LRB103 30786 RJT 57276 b HB2878 Enrolled- 153 -LRB103 30786 RJT 57276 b HB2878 Enrolled - 153 - LRB103 30786 RJT 57276 b HB2878 Enrolled - 153 - LRB103 30786 RJT 57276 b 1 public entity transportation agency considers appropriate. 2 (d) A public-private agreement may: 3 (1) authorize the imposition of tolls in any manner 4 determined appropriate by the responsible public entity 5 transportation agency for the transportation project; 6 (2) authorize the contractor to adjust the user fees 7 for the use of the transportation project, so long as the 8 amounts charged and collected by the contractor do not 9 exceed the maximum amounts established by the responsible 10 public entity transportation agency under the 11 public-private agreement; 12 (3) provide that any adjustment by the contractor 13 permitted under paragraph (2) of this subsection (d) may 14 be based on the indices, methodologies, or other factors 15 described in the public-private agreement or approved by 16 the responsible public entity transportation agency; 17 (4) authorize the contractor to charge and collect 18 user fees through methods, including, but not limited to, 19 automatic vehicle identification systems, electronic toll 20 collection systems, and, to the extent permitted by law, 21 global positioning system-based, photo-based, or 22 video-based toll collection enforcement, provided that to 23 the maximum extent feasible the contractor will (i) 24 utilize open road tolling methods that allow payment of 25 tolls at highway speeds and (ii) comply with United States 26 Department of Transportation requirements and best HB2878 Enrolled - 153 - LRB103 30786 RJT 57276 b HB2878 Enrolled- 154 -LRB103 30786 RJT 57276 b HB2878 Enrolled - 154 - LRB103 30786 RJT 57276 b HB2878 Enrolled - 154 - LRB103 30786 RJT 57276 b 1 practices with respect to tolling methods; and 2 (5) authorize the collection of user fees by a third 3 party. 4 (e) In the public-private agreement, the responsible 5 public entity transportation agency may agree to make grants 6 or loans for the development or operation, or both, of the 7 transportation project from time to time from amounts received 8 from the federal government or any agency or instrumentality 9 of the federal government or from any State or local agency. 10 (f) Upon the termination or expiration of the 11 public-private agreement, including a termination for default, 12 the responsible public entity transportation agency shall have 13 the right to take over the transportation project and to 14 succeed to all of the right, title, and interest in the 15 transportation project. Upon termination or expiration of the 16 public-private agreement relating to a transportation project 17 undertaken by the Department, all real property acquired as a 18 part of the transportation project shall be held in the name of 19 the State of Illinois. Upon termination or expiration of the 20 public-private agreement relating to a transportation project 21 undertaken by the Authority, all real property acquired as a 22 part of the transportation project shall be held in the name of 23 the Authority. 24 (g) If a responsible public entity transportation agency 25 elects to take over a transportation project as provided in 26 subsection (f) of this Section, the responsible public entity HB2878 Enrolled - 154 - LRB103 30786 RJT 57276 b HB2878 Enrolled- 155 -LRB103 30786 RJT 57276 b HB2878 Enrolled - 155 - LRB103 30786 RJT 57276 b HB2878 Enrolled - 155 - LRB103 30786 RJT 57276 b 1 transportation agency may do the following: 2 (1) develop, finance, or operate the project, 3 including through a public-private agreement entered into 4 in accordance with this Act; or 5 (2) impose, collect, retain, and use user fees, if 6 any, for the project. 7 (h) If a responsible public entity transportation agency 8 elects to take over a transportation project as provided in 9 subsection (f) of this Section, the responsible public entity 10 transportation agency may use the revenues, if any, for any 11 lawful purpose, including to: 12 (1) make payments to individuals or entities in 13 connection with any financing of the transportation 14 project, including through a public-private agreement 15 entered into in accordance with this Act; 16 (2) permit a contractor to receive some or all of the 17 revenues under a public-private agreement entered into 18 under this Act; 19 (3) pay development costs of the project; 20 (4) pay current operation costs of the project or 21 facilities; 22 (5) pay the contractor for any compensation or payment 23 owing upon termination; and 24 (6) pay for the development, financing, or operation 25 of any other project or projects the responsible public 26 entity transportation agency deems appropriate. HB2878 Enrolled - 155 - LRB103 30786 RJT 57276 b HB2878 Enrolled- 156 -LRB103 30786 RJT 57276 b HB2878 Enrolled - 156 - LRB103 30786 RJT 57276 b HB2878 Enrolled - 156 - LRB103 30786 RJT 57276 b 1 (i) The full faith and credit of the State or any political 2 subdivision of the State or the responsible public entity 3 transportation agency is not pledged to secure any financing 4 of the contractor by the election to take over the 5 transportation project. Assumption of development or 6 operation, or both, of the transportation project does not 7 obligate the State or any political subdivision of the State 8 or the responsible public entity transportation agency to pay 9 any obligation of the contractor. 10 (j) The responsible public entity transportation agency 11 may enter into a public-private agreement with multiple 12 approved proposers if the responsible public entity 13 transportation agency determines in writing that it is in the 14 public interest to do so. 15 (k) A public-private agreement shall not include any 16 provision under which the responsible public entity 17 transportation agency agrees to restrict or to provide 18 compensation to the private entity for the construction or 19 operation of a competing transportation facility during the 20 term of the public-private agreement. 21 (l) With respect to a public-private agreement entered 22 into by the Department, the Department shall certify in its 23 State budget request to the Governor each year the amount 24 required by the Department during the next State fiscal year 25 to enable the Department to make any payment obligated to be 26 made by the Department pursuant to that public-private HB2878 Enrolled - 156 - LRB103 30786 RJT 57276 b HB2878 Enrolled- 157 -LRB103 30786 RJT 57276 b HB2878 Enrolled - 157 - LRB103 30786 RJT 57276 b HB2878 Enrolled - 157 - LRB103 30786 RJT 57276 b 1 agreement, and the Governor shall include that amount in the 2 State budget submitted to the General Assembly. 3 (Source: P.A. 97-502, eff. 8-23-11; 97-858, eff. 7-27-12.) 4 (630 ILCS 5/40) 5 Sec. 40. Development and operations standards for 6 transportation projects. 7 (a) The plans and specifications, if any, for each project 8 developed under this Act must comply with: 9 (1) the responsible public entity's transportation 10 agency's standards for other projects of a similar nature 11 or as otherwise provided in the public-private agreement; 12 (2) the Professional Engineering Practice Act of 1989, 13 the Structural Engineering Practice Act of 1989, the 14 Illinois Architecture Practice Act of 1989, the 15 requirements of Section 30-22 of the Illinois Procurement 16 Code as they apply to responsible bidders, and the 17 Illinois Professional Land Surveyor Act of 1989; and 18 (3) any other applicable State or federal standards. 19 (b) Each highway project constructed or operated under 20 this Act is considered to be part of: 21 (1) the State highway system for purposes of 22 identification, maintenance standards, and enforcement of 23 traffic laws if the highway project is under the 24 jurisdiction of the Department; or 25 (2) the toll highway system for purposes of HB2878 Enrolled - 157 - LRB103 30786 RJT 57276 b HB2878 Enrolled- 158 -LRB103 30786 RJT 57276 b HB2878 Enrolled - 158 - LRB103 30786 RJT 57276 b HB2878 Enrolled - 158 - LRB103 30786 RJT 57276 b 1 identification, maintenance standards, and enforcement of 2 traffic laws if the highway project is under the 3 jurisdiction of the Authority. 4 (c) Any unit of local government or State agency may enter 5 into agreements with the contractor for maintenance or other 6 services under this Act. 7 (d) Any electronic toll collection system used on a toll 8 highway, bridge, or tunnel as part of a transportation project 9 must be compatible with the electronic toll collection system 10 used by the Authority. The Authority is authorized to 11 construct, operate, and maintain any electronic toll 12 collection system used on a toll highway, bridge, or tunnel as 13 part of a transportation project pursuant to an agreement with 14 the responsible public entity transportation agency or the 15 contractor responsible for the transportation project. All 16 private entities and public agencies shall have an equal 17 opportunity to contract with the Authority to provide 18 construction, operation, and maintenance services. In 19 addition, during the procurement of a public-private 20 agreement, these construction, operation, and maintenance 21 services shall be available under identical terms to each 22 private entity participating in the procurement. To the extent 23 that a public-private agreement or an agreement with a public 24 agency under subsection (c) of Section 20 of this Act 25 authorizes tolling, the responsible public entities 26 transportation agencies and any contractor under a HB2878 Enrolled - 158 - LRB103 30786 RJT 57276 b HB2878 Enrolled- 159 -LRB103 30786 RJT 57276 b HB2878 Enrolled - 159 - LRB103 30786 RJT 57276 b HB2878 Enrolled - 159 - LRB103 30786 RJT 57276 b 1 public-private partnership or a public agency under an 2 agreement pursuant to subsection (c) of Section 20 of this Act 3 shall comply with subsection (a-5) of Section 10 of the Toll 4 Highway Act as it relates to toll enforcement. 5 (Source: P.A. 97-502, eff. 8-23-11; 97-858, eff. 7-27-12.) 6 (630 ILCS 5/45) 7 Sec. 45. Financial arrangements. 8 (a) The responsible public entity transportation agency 9 may do any combination of applying for, executing, or 10 endorsing applications submitted by private entities to obtain 11 federal, State, or local credit assistance for transportation 12 projects developed, financed, or operated under this Act, 13 including loans, lines of credit, and guarantees. 14 (b) The responsible public entity transportation agency 15 may take any action to obtain federal, State, or local 16 assistance for a transportation project that serves the public 17 purpose of this Act and may enter into any contracts required 18 to receive the federal assistance. The responsible public 19 entity transportation agency may determine that it serves the 20 public purpose of this Act for all or any portion of the costs 21 of a transportation project to be paid, directly or 22 indirectly, from the proceeds of a grant or loan, line of 23 credit, or loan guarantee made by a local, State, or federal 24 government or any agency or instrumentality of a local, State, 25 or federal government. Such assistance may include, but not be HB2878 Enrolled - 159 - LRB103 30786 RJT 57276 b HB2878 Enrolled- 160 -LRB103 30786 RJT 57276 b HB2878 Enrolled - 160 - LRB103 30786 RJT 57276 b HB2878 Enrolled - 160 - LRB103 30786 RJT 57276 b 1 limited to, federal credit assistance pursuant to the 2 Transportation Infrastructure Finance and Innovation Act 3 (TIFIA). 4 (c) The responsible public entity transportation agency 5 may agree to make grants or loans for the development, 6 financing, or operation of a transportation project from time 7 to time, from amounts received from the federal, State, or 8 local government or any agency or instrumentality of the 9 federal, State, or local government. 10 (d) Any financing of a transportation project may be in 11 the amounts and upon the terms and conditions that are 12 determined by the parties to the public-private agreement. 13 (e) For the purpose of financing a transportation project, 14 the contractor and the responsible public entity 15 transportation agency may do the following: 16 (1) propose to use any and all revenues that may be 17 available to them; 18 (2) enter into grant agreements; 19 (3) access any other funds available to the 20 responsible public entity transportation agency; and 21 (4) accept grants from the responsible public entity 22 transportation agency or other public or private agency or 23 entity. 24 (f) For the purpose of financing a transportation project, 25 public funds, including public or private pension funds, may 26 be used and mixed and aggregated with funds provided by or on HB2878 Enrolled - 160 - LRB103 30786 RJT 57276 b HB2878 Enrolled- 161 -LRB103 30786 RJT 57276 b HB2878 Enrolled - 161 - LRB103 30786 RJT 57276 b HB2878 Enrolled - 161 - LRB103 30786 RJT 57276 b 1 behalf of the contractor or other private entities. 2 (g) For the purpose of financing a transportation project, 3 each responsible public entity transportation agency is 4 authorized to do any combination of applying for, executing, 5 or endorsing applications for an allocation of tax-exempt bond 6 financing authorization provided by Section 142(m) of the 7 United States Internal Revenue Code, as well as financing 8 available under any other federal law or program. 9 (h) Any bonds, debt, or other securities or other 10 financing issued by or on behalf of a contractor for the 11 purposes of a project undertaken under this Act shall not be 12 deemed to constitute a debt of the State or any political 13 subdivision of the State or a pledge of the faith and credit of 14 the State or any political subdivision of the State. 15 (Source: P.A. 97-502, eff. 8-23-11; 97-858, eff. 7-27-12.) 16 (630 ILCS 5/50) 17 Sec. 50. Acquisition of property. 18 (a) The responsible public entity transportation agency 19 may exercise any power of condemnation or eminent domain, 20 including quick-take powers, that it has under law, including, 21 in the case of the Department, all powers for acquisition of 22 property rights granted it in the Illinois Highway Code, for 23 the purpose of acquiring any lands or estates or interests in 24 land for a transportation project to the extent provided in 25 the public-private agreement or otherwise to the extent that HB2878 Enrolled - 161 - LRB103 30786 RJT 57276 b HB2878 Enrolled- 162 -LRB103 30786 RJT 57276 b HB2878 Enrolled - 162 - LRB103 30786 RJT 57276 b HB2878 Enrolled - 162 - LRB103 30786 RJT 57276 b 1 the responsible public entity transportation agency finds that 2 the action serves the public purpose of this Act and deems it 3 appropriate in the exercise of its powers under this Act. 4 (b) The responsible public entity transportation agency 5 and a contractor may enter into the leases, licenses, 6 easements, and other grants of property interests that the 7 responsible public entity transportation agency determines 8 necessary to carry out this Act. 9 (Source: P.A. 97-502, eff. 8-23-11.) 10 (630 ILCS 5/55) 11 Sec. 55. Labor. 12 (a) A public-private agreement related to a transportation 13 project pertaining to the building, altering, repairing, 14 maintaining, improving, or demolishing a transportation 15 facility shall require the contractor and all subcontractors 16 to comply with the requirements of Section 30-22 of the 17 Illinois Procurement Code as they apply to responsible bidders 18 and to present satisfactory evidence of that compliance to the 19 responsible public entity transportation agency, unless the 20 transportation project is federally funded and the application 21 of those requirements would jeopardize the receipt or use of 22 federal funds in support of the transportation project. 23 (b) A public-private agreement related to a transportation 24 project pertaining to a new transportation facility shall 25 require the contractor to enter into a project labor agreement HB2878 Enrolled - 162 - LRB103 30786 RJT 57276 b HB2878 Enrolled- 163 -LRB103 30786 RJT 57276 b HB2878 Enrolled - 163 - LRB103 30786 RJT 57276 b HB2878 Enrolled - 163 - LRB103 30786 RJT 57276 b 1 utilized by the Department. 2 (Source: P.A. 97-502, eff. 8-23-11.) 3 (630 ILCS 5/65) 4 Sec. 65. Term of agreement; reversion of property to 5 responsible public entity transportation agency. 6 (a) The term of a public-private agreement, including all 7 extensions, may not exceed 99 years. 8 (b) The responsible public entity transportation agency 9 shall terminate the contractor's authority and duties under 10 the public-private agreement on the date set forth in the 11 public-private agreement. 12 (c) Upon termination of the public-private agreement, the 13 authority and duties of the contractor under this Act cease, 14 except for those duties and obligations that extend beyond the 15 termination, as set forth in the public-private agreement, and 16 all interests in the transportation facility shall revert to 17 the responsible public entity transportation agency. 18 (Source: P.A. 97-502, eff. 8-23-11.) 19 (630 ILCS 5/70) 20 Sec. 70. Additional powers of responsible public entities 21 transportation agencies with respect to transportation 22 projects. 23 (a) Each responsible public entity transportation agency 24 may exercise any powers provided under this Act in HB2878 Enrolled - 163 - LRB103 30786 RJT 57276 b HB2878 Enrolled- 164 -LRB103 30786 RJT 57276 b HB2878 Enrolled - 164 - LRB103 30786 RJT 57276 b HB2878 Enrolled - 164 - LRB103 30786 RJT 57276 b 1 participation or cooperation with any governmental entity and 2 enter into any contracts to facilitate that participation or 3 cooperation without compliance with any other statute. Each 4 responsible public entity transportation agency shall 5 cooperate with each other and with other governmental entities 6 in carrying out transportation projects under this Act. 7 (b) Each responsible public entity transportation agency 8 may make and enter into all contracts and agreements necessary 9 or incidental to the performance of the responsible public 10 entity's transportation agency's duties and the execution of 11 the responsible public entity's transportation agency's powers 12 under this Act. Except as otherwise required by law, these 13 contracts or agreements are not subject to any approvals other 14 than the approval of the responsible public entity 15 transportation agency and may be for any term of years and 16 contain any terms that are considered reasonable by the 17 responsible public entity transportation agency. 18 (c) Each responsible public entity transportation agency 19 may pay the costs incurred under a public-private agreement 20 entered into under this Act from any funds available to the 21 responsible public entity transportation agency under this Act 22 or any other statute. 23 (d) A responsible public entity transportation agency or 24 other State agency may not take any action that would impair a 25 public-private agreement entered into under this Act. 26 (e) Each responsible public entity transportation agency HB2878 Enrolled - 164 - LRB103 30786 RJT 57276 b HB2878 Enrolled- 165 -LRB103 30786 RJT 57276 b HB2878 Enrolled - 165 - LRB103 30786 RJT 57276 b HB2878 Enrolled - 165 - LRB103 30786 RJT 57276 b 1 may enter into an agreement between and among the contractor, 2 the responsible public entity transportation agency, and the 3 Illinois State Police concerning the provision of law 4 enforcement assistance with respect to a transportation 5 project that is the subject of a public-private agreement 6 under this Act. 7 (f) Each responsible public entity transportation agency 8 is authorized to enter into arrangements with the Illinois 9 State Police related to costs incurred in providing law 10 enforcement assistance under this Act. 11 (Source: P.A. 102-538, eff. 8-20-21.) 12 (630 ILCS 5/80) 13 Sec. 80. Powers liberally construed. The powers conferred 14 by this Act shall be liberally construed in order to 15 accomplish their purposes and shall be in addition and 16 supplemental to the powers conferred by any other law. If any 17 other law or rule is inconsistent with this Act, this Act is 18 controlling as to any public-private agreement entered into 19 under this Act. To implement the powers conferred by this Act, 20 the responsible public entity transportation agency may 21 establish rules and procedures for the procurement of a 22 public-private agreement under this Act. Nothing contained in 23 this Act is intended to supersede applicable federal law or to 24 foreclose the use or potential use of federal funds. In the 25 event any provision of this Act is inconsistent with HB2878 Enrolled - 165 - LRB103 30786 RJT 57276 b HB2878 Enrolled- 166 -LRB103 30786 RJT 57276 b HB2878 Enrolled - 166 - LRB103 30786 RJT 57276 b HB2878 Enrolled - 166 - LRB103 30786 RJT 57276 b 1 applicable federal law or would have the effect of foreclosing 2 the use or potential use of federal funds, the applicable 3 federal law or funding condition shall prevail, but only to 4 the extent of such inconsistency. 5 (Source: P.A. 97-502, eff. 8-23-11.) 6 (630 ILCS 5/85) 7 Sec. 85. Full and complete authority. This Act contains 8 full and complete authority for agreements and leases with 9 private entities to carry out the activities described in this 10 Act. Except as otherwise required by law, no procedure, 11 proceedings, publications, notices, consents, approvals, 12 orders, or acts by the responsible public entity 13 transportation agency or any other State or local agency or 14 official are required to enter into an agreement or lease. 15 (Source: P.A. 97-502, eff. 8-23-11.) 16 ARTICLE 95. LICENSING OF SOFTWARE APPLICATIONS 17 Section 95-5. The Illinois Procurement Code is amended by 18 adding Section 20-57 as follows: 19 (30 ILCS 500/20-57 new) 20 Sec. 20-57. Software licensing contracts. A contract 21 entered into by a public agency for the licensing of software 22 applications designed to run on generally available desktop or HB2878 Enrolled - 166 - LRB103 30786 RJT 57276 b HB2878 Enrolled- 167 -LRB103 30786 RJT 57276 b HB2878 Enrolled - 167 - LRB103 30786 RJT 57276 b HB2878 Enrolled - 167 - LRB103 30786 RJT 57276 b 1 server hardware may not limit the public agency's ability to 2 install or run the software on any of the public agency's 3 hardware. 4 ARTICLE 97. PUBLIC CONSTRUCTION BONDS 5 Section 97-5. The Public Construction Bond Act is amended 6 by changing Section 1 as follows: 7 (30 ILCS 550/1) (from Ch. 29, par. 15) 8 Sec. 1. Except as otherwise provided by this Act, until 9 January 1, 2029, all officials, boards, commissions, or agents 10 of this State, or of any political subdivision thereof, in 11 making contracts for public work of any kind costing over 12 $150,000 $50,000 to be performed for the State, or of any 13 political subdivision thereof, shall require every contractor 14 for the work to furnish, supply and deliver a bond to the 15 State, or to the political subdivision thereof entering into 16 the contract, as the case may be, with good and sufficient 17 sureties. The surety on the bond shall be a company that is 18 licensed by the Department of Insurance authorizing it to 19 execute surety bonds and the company shall have a financial 20 strength rating of at least A- as rated by A.M. Best Company, 21 Inc., Moody's Investors Service, Standard & Poor's 22 Corporation, or a similar rating agency. The amount of the 23 bond shall be fixed by the officials, boards, commissions, HB2878 Enrolled - 167 - LRB103 30786 RJT 57276 b HB2878 Enrolled- 168 -LRB103 30786 RJT 57276 b HB2878 Enrolled - 168 - LRB103 30786 RJT 57276 b HB2878 Enrolled - 168 - LRB103 30786 RJT 57276 b 1 commissioners or agents, and the bond, among other conditions, 2 shall be conditioned for the completion of the contract, for 3 the payment of material, apparatus, fixtures, and machinery 4 used in the work and for all labor performed in the work, 5 whether by subcontractor or otherwise. 6 Until January 1, 2029, when making contracts for public 7 works to be constructed, the Department of Transportation and 8 the Illinois State Toll Highway Authority shall require every 9 contractor for those works to furnish, supply, and deliver a 10 bond to the Department or the Authority, as the case may be, 11 with good and sufficient sureties only if the public works 12 contract will cost more than $500,000. The Department of 13 Transportation and the Illinois State Toll Highway Authority 14 shall publicly display the following information by website or 15 annual report and shall provide that information to interested 16 parties upon request: 17 (1) a list of each of its defaulted public works 18 contracts, including the value of the award, the adjusted 19 contract value, and the amount remaining unpaid by the 20 Department or Authority, as applicable; 21 (2) the number and the aggregate amount of payment 22 claims made under the Mechanics Lien Act along with the 23 number of contracts in which payment claims are made under 24 the Mechanics Lien Act; 25 (3) for each of its public improvement contracts, 26 regardless of the contract value, the aggregate annual HB2878 Enrolled - 168 - LRB103 30786 RJT 57276 b HB2878 Enrolled- 169 -LRB103 30786 RJT 57276 b HB2878 Enrolled - 169 - LRB103 30786 RJT 57276 b HB2878 Enrolled - 169 - LRB103 30786 RJT 57276 b 1 revenue of the contractor derived from contracts with the 2 State; 3 (4) for each of its public works contracts, regardless 4 of contract value, the identity of the surety providing 5 the contract bond, payment and performance bond, or both; 6 and 7 (5) for each of its public works contracts, regardless 8 of the bond threshold, a list of bidders for each public 9 works contract, and the amount bid by each bidder. 10 Until January 1, 2029, local governmental units may 11 require a bond, by ordinance or resolution, for public works 12 contracts valued at $150,000 or less. 13 On and after January 1, 2029, all officials, boards, 14 commissions, or agents of this State, or of any political 15 subdivision thereof, in making contracts for public work of 16 any kind costing over $50,000 to be performed for the State, or 17 of any political subdivision thereof, shall require every 18 contractor for the work to furnish, supply and deliver a bond 19 to the State, or to the political subdivision thereof entering 20 into the contract, as the case may be, with good and sufficient 21 sureties. The surety on the bond shall be a company that is 22 licensed by the Department of Insurance authorizing it to 23 execute surety bonds and the company shall have a financial 24 strength rating of at least A- as rated by A.M. Best Company, 25 Inc., Moody's Investors Service, Standard & Poor's 26 Corporation, or a similar rating agency. The amount of the HB2878 Enrolled - 169 - LRB103 30786 RJT 57276 b HB2878 Enrolled- 170 -LRB103 30786 RJT 57276 b HB2878 Enrolled - 170 - LRB103 30786 RJT 57276 b HB2878 Enrolled - 170 - LRB103 30786 RJT 57276 b 1 bond shall be fixed by the officials, boards, commissions, 2 commissioners or agents, and the bond, among other conditions, 3 shall be conditioned for the completion of the contract, for 4 the payment of material, apparatus, fixtures, and machinery 5 used in the work and for all labor performed in the work, 6 whether by subcontractor or otherwise. 7 If the contract is for emergency repairs as provided in 8 the Illinois Procurement Code, proof of payment for all labor, 9 materials, apparatus, fixtures, and machinery may be furnished 10 in lieu of the bond required by this Section. 11 Each such bond is deemed to contain the following 12 provisions whether such provisions are inserted in such bond 13 or not: 14 "The principal and sureties on this bond agree that all 15 the undertakings, covenants, terms, conditions and agreements 16 of the contract or contracts entered into between the 17 principal and the State or any political subdivision thereof 18 will be performed and fulfilled and to pay all persons, firms 19 and corporations having contracts with the principal or with 20 subcontractors, all just claims due them under the provisions 21 of such contracts for labor performed or materials furnished 22 in the performance of the contract on account of which this 23 bond is given, when such claims are not satisfied out of the 24 contract price of the contract on account of which this bond is 25 given, after final settlement between the officer, board, 26 commission or agent of the State or of any political HB2878 Enrolled - 170 - LRB103 30786 RJT 57276 b HB2878 Enrolled- 171 -LRB103 30786 RJT 57276 b HB2878 Enrolled - 171 - LRB103 30786 RJT 57276 b HB2878 Enrolled - 171 - LRB103 30786 RJT 57276 b 1 subdivision thereof and the principal has been made.". 2 Each bond securing contracts between the Capital 3 Development Board or any board of a public institution of 4 higher education and a contractor shall contain the following 5 provisions, whether the provisions are inserted in the bond or 6 not: 7 "Upon the default of the principal with respect to 8 undertakings, covenants, terms, conditions, and agreements, 9 the termination of the contractor's right to proceed with the 10 work, and written notice of that default and termination by 11 the State or any political subdivision to the surety 12 ("Notice"), the surety shall promptly remedy the default by 13 taking one of the following actions: 14 (1) The surety shall complete the work pursuant to a 15 written takeover agreement, using a completing contractor 16 jointly selected by the surety and the State or any 17 political subdivision; or 18 (2) The surety shall pay a sum of money to the obligee, 19 up to the penal sum of the bond, that represents the 20 reasonable cost to complete the work that exceeds the 21 unpaid balance of the contract sum. 22 The surety shall respond to the Notice within 15 working 23 days of receipt indicating the course of action that it 24 intends to take or advising that it requires more time to 25 investigate the default and select a course of action. If the 26 surety requires more than 15 working days to investigate the HB2878 Enrolled - 171 - LRB103 30786 RJT 57276 b HB2878 Enrolled- 172 -LRB103 30786 RJT 57276 b HB2878 Enrolled - 172 - LRB103 30786 RJT 57276 b HB2878 Enrolled - 172 - LRB103 30786 RJT 57276 b 1 default and select a course of action or if the surety elects 2 to complete the work with a completing contractor that is not 3 prepared to commence performance within 15 working days after 4 receipt of Notice, and if the State or any political 5 subdivision determines it is in the best interest of the State 6 to maintain the progress of the work, the State or any 7 political subdivision may continue to work until the 8 completing contractor is prepared to commence performance. 9 Unless otherwise agreed to by the procuring agency, in no case 10 may the surety take longer than 30 working days to advise the 11 State or political subdivision on the course of action it 12 intends to take. The surety shall be liable for reasonable 13 costs incurred by the State or any political subdivision to 14 maintain the progress to the extent the costs exceed the 15 unpaid balance of the contract sum, subject to the penal sum of 16 the bond.". 17 The surety bond required by this Section may be acquired 18 from the company, agent or broker of the contractor's choice. 19 The bond and sureties shall be subject to the right of 20 reasonable approval or disapproval, including suspension, by 21 the State or political subdivision thereof concerned. Except 22 as otherwise provided in this Section, in the case of State 23 construction contracts, a contractor shall not be required to 24 post a cash bond or letter of credit in addition to or as a 25 substitute for the surety bond required by this Section. 26 Prior to the completion of 50% of the contract for public HB2878 Enrolled - 172 - LRB103 30786 RJT 57276 b HB2878 Enrolled- 173 -LRB103 30786 RJT 57276 b HB2878 Enrolled - 173 - LRB103 30786 RJT 57276 b HB2878 Enrolled - 173 - LRB103 30786 RJT 57276 b 1 works, a local governmental unit may not withhold retainage 2 from any payment to a contractor who furnishes the bond or bond 3 substitute required by this Act in an amount in excess of 10% 4 of any payment made prior to the date of completion of 50% of 5 the contract for public works. When a contract for public 6 works is 50% complete, the local governmental unit shall 7 reduce the retainage so that no more than 5% is held. After the 8 contract is 50% complete, no more than 5% of the amount of any 9 subsequent payments made under the contract for public works 10 may be withheld as retainage. 11 Prior to the completion of 50% of the contract for public 12 works, the contractor and their respective subcontractors 13 shall not withhold from their subcontractors retainage in 14 excess of 10% of any payment made prior to the date of 15 completion of 50% of the contract for public works. When the 16 contract for public works is 50% complete, the contractor and 17 its subcontractors shall reduce the retainage so that no more 18 than 5% is withheld from their respective subcontractors. 19 After the contract is 50% complete, the contractor and its 20 subcontractors shall not withhold more than 5% of the amount 21 of any subsequent payments made under the contract to their 22 respective subcontractors. 23 When other than motor fuel tax funds, federal-aid funds, 24 or other funds received from the State are used, a political 25 subdivision may allow the contractor to provide a 26 non-diminishing irrevocable bank letter of credit, in lieu of HB2878 Enrolled - 173 - LRB103 30786 RJT 57276 b HB2878 Enrolled- 174 -LRB103 30786 RJT 57276 b HB2878 Enrolled - 174 - LRB103 30786 RJT 57276 b HB2878 Enrolled - 174 - LRB103 30786 RJT 57276 b 1 the bond required by this Section, on contracts under $100,000 2 to comply with the requirements of this Section. Any such bank 3 letter of credit shall contain all provisions required for 4 bonds by this Section. 5 In order to reduce barriers to entry for diverse and small 6 businesses, the Department of Transportation may implement a 7 5-year pilot program to allow a contractor to provide a 8 non-diminishing irrevocable bank letter of credit in lieu of 9 the bond required by this Section on contracts under $500,000. 10 Projects selected by the Department of Transportation for this 11 pilot program must be classified by the Department as low-risk 12 scope of work contracts. The Department shall adopt rules to 13 define the criteria for pilot project selection and 14 implementation of the pilot program. 15 In For the purposes of this Section: , the terms 16 "material" 17 "Local governmental unit" has the meaning ascribed to it 18 in Section 2 of the Local Government Prompt Payment Act. 19 "Material", "labor", "apparatus", "fixtures", and 20 "machinery" include those rented items that are on the 21 construction site and those rented tools that are used or 22 consumed on the construction site in the performance of the 23 contract on account of which the bond is given. 24 (Source: P.A. 101-65, eff. 1-1-20; 102-968, eff. 1-1-23.) 25 ARTICLE 98 VENDOR CONTRIBUTION LIMITS AND REGISTRATION HB2878 Enrolled - 174 - LRB103 30786 RJT 57276 b HB2878 Enrolled- 175 -LRB103 30786 RJT 57276 b HB2878 Enrolled - 175 - LRB103 30786 RJT 57276 b HB2878 Enrolled - 175 - LRB103 30786 RJT 57276 b 1 REQUIREMENTS 2 Section 98-5. The Illinois Procurement Code is amended by 3 changing Sections 20-160 and 50-37 as follows: 4 (30 ILCS 500/20-160) 5 Sec. 20-160. Business entities; certification; 6 registration with the State Board of Elections. 7 (a) For purposes of this Section, the terms "business 8 entity", "contract", "State contract", "contract with a State 9 agency", "State agency", "affiliated entity", and "affiliated 10 person" have the meanings ascribed to those terms in Section 11 50-37. 12 (b) Every bid and offer submitted to and every contract 13 executed by the State on or after January 1, 2009 (the 14 effective date of Public Act 95-971) and every submission to a 15 vendor portal shall contain (1) a certification by the bidder, 16 offeror, vendor, or contractor that either (i) the bidder, 17 offeror, vendor, or contractor is not required to register as 18 a business entity with the State Board of Elections pursuant 19 to this Section or (ii) the bidder, offeror, vendor, or 20 contractor has registered as a business entity with the State 21 Board of Elections and acknowledges a continuing duty to 22 update the registration and (2) a statement that the contract 23 is voidable under Section 50-60 for the bidder's, offeror's, 24 vendor's, or contractor's failure to comply with this Section. HB2878 Enrolled - 175 - LRB103 30786 RJT 57276 b HB2878 Enrolled- 176 -LRB103 30786 RJT 57276 b HB2878 Enrolled - 176 - LRB103 30786 RJT 57276 b HB2878 Enrolled - 176 - LRB103 30786 RJT 57276 b 1 (c) Each business entity (i) whose aggregate pending bids 2 and proposals on State contracts annually total more than 3 $50,000, (ii) whose aggregate pending bids and proposals on 4 State contracts combined with the business entity's aggregate 5 annual total value of State contracts exceed $50,000, or (iii) 6 whose contracts with State agencies, in the aggregate, 7 annually total more than $50,000 shall register with the State 8 Board of Elections in accordance with Section 9-35 of the 9 Election Code. A business entity required to register under 10 this subsection due to item (i) or (ii) has a continuing duty 11 to ensure that the registration is accurate during the period 12 beginning on the date of registration and ending on the day 13 after the date the contract is awarded; any change in 14 information must be reported to the State Board of Elections 5 15 business days following such change or no later than a day 16 before the contract is awarded, whichever date is earlier. A 17 business entity required to register under this subsection due 18 to item (iii) has a continuing duty to ensure that the 19 registration is accurate in accordance with subsection (e). 20 (d) Any business entity, not required under subsection (c) 21 to register, whose aggregate pending bids and proposals on 22 State contracts annually total more than $50,000, or whose 23 aggregate pending bids and proposals on State contracts 24 combined with the business entity's aggregate annual total 25 value of State contracts exceed $50,000, shall register with 26 the State Board of Elections in accordance with Section 9-35 HB2878 Enrolled - 176 - LRB103 30786 RJT 57276 b HB2878 Enrolled- 177 -LRB103 30786 RJT 57276 b HB2878 Enrolled - 177 - LRB103 30786 RJT 57276 b HB2878 Enrolled - 177 - LRB103 30786 RJT 57276 b 1 of the Election Code prior to submitting to a State agency the 2 bid or proposal whose value causes the business entity to fall 3 within the monetary description of this subsection. A business 4 entity required to register under this subsection has a 5 continuing duty to ensure that the registration is accurate 6 during the period beginning on the date of registration and 7 ending on the day after the date the contract is awarded. Any 8 change in information must be reported to the State Board of 9 Elections within 5 business days following such change or no 10 later than a day before the contract is awarded, whichever 11 date is earlier. 12 (e) A business entity whose contracts with State agencies, 13 in the aggregate, annually total more than $50,000 must 14 maintain its registration under this Section and has a 15 continuing duty to ensure that the registration is accurate 16 for the duration of the term of office of the incumbent 17 officeholder awarding the contracts or for a period of 2 years 18 following the expiration or termination of the contracts, 19 whichever is longer. A business entity, required to register 20 under this subsection, has a continuing duty to report any 21 changes on a quarterly basis to the State Board of Elections 22 within 14 calendar days following the last day of January, 23 April, July, and October of each year. Any update pursuant to 24 this paragraph that is received beyond that date is presumed 25 late and the civil penalty authorized by subsection (e) of 26 Section 9-35 of the Election Code may be assessed. HB2878 Enrolled - 177 - LRB103 30786 RJT 57276 b HB2878 Enrolled- 178 -LRB103 30786 RJT 57276 b HB2878 Enrolled - 178 - LRB103 30786 RJT 57276 b HB2878 Enrolled - 178 - LRB103 30786 RJT 57276 b 1 Also, if a business entity required to register under this 2 subsection has a pending bid or offer, any change in 3 information shall be reported to the State Board of Elections 4 within 7 calendar days following such change or no later than a 5 day before the contract is awarded, whichever date is earlier. 6 (f) A business entity's continuing duty under this Section 7 to ensure the accuracy of its registration includes the 8 requirement that the business entity notify the State Board of 9 Elections of any change in information, including, but not 10 limited to, changes of affiliated entities or affiliated 11 persons. 12 (g) For any bid or offer for a contract with a State agency 13 by a business entity required to register under this Section, 14 the chief procurement officer shall verify that the business 15 entity is required to register under this Section and is in 16 compliance with the registration requirements on the date the 17 bid or offer is due. A chief procurement officer shall not 18 accept a bid or offer if the business entity is not in 19 compliance with the registration requirements as of the date 20 bids or offers are due. Upon discovery of noncompliance with 21 this Section, if the bidder or offeror made a good faith effort 22 to comply with registration efforts prior to the date the bid 23 or offer is due, a chief procurement officer may provide the 24 bidder or offeror 5 business days to achieve compliance. A 25 chief procurement officer may extend the time to prove 26 compliance by as long as necessary in the event that there is a HB2878 Enrolled - 178 - LRB103 30786 RJT 57276 b HB2878 Enrolled- 179 -LRB103 30786 RJT 57276 b HB2878 Enrolled - 179 - LRB103 30786 RJT 57276 b HB2878 Enrolled - 179 - LRB103 30786 RJT 57276 b 1 failure within the State Board of Elections' registration 2 system. 3 (h) A registration, and any changes to a registration, 4 must include the business entity's verification of accuracy 5 and subjects the business entity to the penalties of the laws 6 of this State for perjury. 7 In addition to any penalty under Section 9-35 of the 8 Election Code, intentional, willful, or material failure to 9 disclose information required for registration shall render 10 the contract, bid, offer, or other procurement relationship 11 voidable by the chief procurement officer if he or she deems it 12 to be in the best interest of the State of Illinois. 13 (i) This Section applies regardless of the method of 14 source selection used in awarding the contract. 15 (Source: P.A. 100-43, eff. 8-9-17; 101-81, eff. 7-12-19.) 16 (30 ILCS 500/50-37) 17 Sec. 50-37. Prohibition of political contributions. 18 (a) As used in this Section: 19 The terms "contract", "State contract", and "contract 20 with a State agency" each mean any contract, as defined in 21 this Code, between a business entity and a State agency 22 let or awarded pursuant to this Code. The terms 23 "contract", "State contract", and "contract with a State 24 agency" do not include cost reimbursement contracts; 25 purchase of care agreements as defined in Section 1-15.68 HB2878 Enrolled - 179 - LRB103 30786 RJT 57276 b HB2878 Enrolled- 180 -LRB103 30786 RJT 57276 b HB2878 Enrolled - 180 - LRB103 30786 RJT 57276 b HB2878 Enrolled - 180 - LRB103 30786 RJT 57276 b 1 of this Code; contracts for projects eligible for full or 2 partial federal-aid funding reimbursements authorized by 3 the Federal Highway Administration; grants, including but 4 are not limited to grants for job training or 5 transportation; and grants, loans, or tax credit 6 agreements for economic development purposes. 7 "Contribution" means a contribution as defined in 8 Section 9-1.4 of the Election Code. 9 "Declared candidate" means a person who has filed a 10 statement of candidacy and petition for nomination or 11 election in the principal office of the State Board of 12 Elections. 13 "State agency" means and includes all boards, 14 commissions, agencies, institutions, authorities, and 15 bodies politic and corporate of the State, created by or 16 in accordance with the Illinois Constitution or State 17 statute, of the executive branch of State government and 18 does include colleges, universities, public employee 19 retirement systems, and institutions under the 20 jurisdiction of the governing boards of the University of 21 Illinois, Southern Illinois University, Illinois State 22 University, Eastern Illinois University, Northern Illinois 23 University, Western Illinois University, Chicago State 24 University, Governors State University, Northeastern 25 Illinois University, and the Illinois Board of Higher 26 Education. HB2878 Enrolled - 180 - LRB103 30786 RJT 57276 b HB2878 Enrolled- 181 -LRB103 30786 RJT 57276 b HB2878 Enrolled - 181 - LRB103 30786 RJT 57276 b HB2878 Enrolled - 181 - LRB103 30786 RJT 57276 b 1 "Officeholder" means the Governor, Lieutenant 2 Governor, Attorney General, Secretary of State, 3 Comptroller, or Treasurer. The Governor shall be 4 considered the officeholder responsible for awarding all 5 contracts by all officers and employees of, and potential 6 contractors and others doing business with, executive 7 branch State agencies under the jurisdiction of the 8 Executive Ethics Commission and not within the 9 jurisdiction of the Attorney General, the Secretary of 10 State, the Comptroller, or the Treasurer. 11 "Sponsoring entity" means a sponsoring entity as 12 defined in Section 9-3 of the Election Code. 13 "Affiliated person" means (i) any person with any 14 ownership interest or distributive share of the bidding or 15 contracting business entity in excess of 7.5%, (ii) 16 executive employees of the bidding or contracting business 17 entity, and (iii) the spouse of any such persons. 18 "Affiliated person" does not include a person prohibited 19 by federal law from making contributions or expenditures 20 in connection with a federal, state, or local election. 21 "Affiliated entity" means (i) any corporate parent and 22 each operating subsidiary of the bidding or contracting 23 business entity, (ii) each operating subsidiary of the 24 corporate parent of the bidding or contracting business 25 entity, (iii) any organization recognized by the United 26 States Internal Revenue Service as a tax-exempt HB2878 Enrolled - 181 - LRB103 30786 RJT 57276 b HB2878 Enrolled- 182 -LRB103 30786 RJT 57276 b HB2878 Enrolled - 182 - LRB103 30786 RJT 57276 b HB2878 Enrolled - 182 - LRB103 30786 RJT 57276 b 1 organization described in Section 501(c) of the Internal 2 Revenue Code of 1986 (or any successor provision of 3 federal tax law) established by the bidding or contracting 4 business entity, any affiliated entity of that business 5 entity, or any affiliated person of that business entity, 6 or (iv) any political committee for which the bidding or 7 contracting business entity, or any 501(c) organization 8 described in item (iii) related to that business entity, 9 is the sponsoring entity. "Affiliated entity" does not 10 include an entity prohibited by federal law from making 11 contributions or expenditures in connection with a 12 federal, state, or local election. 13 "Business entity" means any entity doing business for 14 profit, whether organized as a corporation, partnership, 15 sole proprietorship, limited liability company or 16 partnership, or otherwise. 17 "Executive employee" means (i) the President, 18 Chairman, or Chief Executive Officer of a business entity 19 and any other individual that fulfills equivalent duties 20 as the President, Chairman of the Board, or Chief 21 Executive Officer of a business entity; and (ii) any 22 employee of a business entity whose compensation is 23 determined directly, in whole or in part, by the award or 24 payment of contracts by a State agency to the entity 25 employing the employee. A regular salary that is paid 26 irrespective of the award or payment of a contract with a HB2878 Enrolled - 182 - LRB103 30786 RJT 57276 b HB2878 Enrolled- 183 -LRB103 30786 RJT 57276 b HB2878 Enrolled - 183 - LRB103 30786 RJT 57276 b HB2878 Enrolled - 183 - LRB103 30786 RJT 57276 b 1 State agency shall not constitute "compensation" under 2 item (ii) of this definition. "Executive employee" does 3 not include any person prohibited by federal law from 4 making contributions or expenditures in connection with a 5 federal, state, or local election. 6 (b) Any business entity whose contracts with State 7 agencies, in the aggregate, annually total more than $50,000, 8 and any affiliated entities or affiliated persons of such 9 business entity, are prohibited from making any contributions 10 to any political committees established to promote the 11 candidacy of (i) the officeholder responsible for awarding the 12 contracts or (ii) any other declared candidate for that 13 office. This prohibition shall be effective for the duration 14 of the term of office of the incumbent officeholder awarding 15 the contracts or for a period of 2 years following the 16 expiration or termination of the contracts, whichever is 17 longer. 18 (c) Any business entity whose aggregate pending bids and 19 offers on State contracts total more than $50,000, or whose 20 aggregate pending bids and offers on State contracts combined 21 with the business entity's aggregate annual total value of 22 State contracts exceed $50,000, and any affiliated entities or 23 affiliated persons of such business entity, are prohibited 24 from making any contributions to any political committee 25 established to promote the candidacy of the officeholder 26 responsible for awarding the contract on which the business HB2878 Enrolled - 183 - LRB103 30786 RJT 57276 b HB2878 Enrolled- 184 -LRB103 30786 RJT 57276 b HB2878 Enrolled - 184 - LRB103 30786 RJT 57276 b HB2878 Enrolled - 184 - LRB103 30786 RJT 57276 b 1 entity has submitted a bid or offer during the period 2 beginning on the date the invitation for bids, request for 3 proposals, or any other procurement opportunity is issued and 4 ending on the day after the date the contract is awarded. 5 (c-5) For the purposes of the prohibitions under 6 subsections (b) and (c) of this Section, (i) any contribution 7 made to a political committee established to promote the 8 candidacy of the Governor or a declared candidate for the 9 office of Governor shall also be considered as having been 10 made to a political committee established to promote the 11 candidacy of the Lieutenant Governor, in the case of the 12 Governor, or the declared candidate for Lieutenant Governor 13 having filed a joint petition, or write-in declaration of 14 intent, with the declared candidate for Governor, as 15 applicable, and (ii) any contribution made to a political 16 committee established to promote the candidacy of the 17 Lieutenant Governor or a declared candidate for the office of 18 Lieutenant Governor shall also be considered as having been 19 made to a political committee established to promote the 20 candidacy of the Governor, in the case of the Lieutenant 21 Governor, or the declared candidate for Governor having filed 22 a joint petition, or write-in declaration of intent, with the 23 declared candidate for Lieutenant Governor, as applicable. 24 (d) All contracts between State agencies and a business 25 entity that violate subsection (b) or (c) shall be voidable 26 under Section 50-60. If a business entity violates subsection HB2878 Enrolled - 184 - LRB103 30786 RJT 57276 b HB2878 Enrolled- 185 -LRB103 30786 RJT 57276 b HB2878 Enrolled - 185 - LRB103 30786 RJT 57276 b HB2878 Enrolled - 185 - LRB103 30786 RJT 57276 b 1 (b) 3 or more times within a 36-month period, then all 2 contracts between State agencies and that business entity 3 shall be void, and that business entity shall not bid or 4 respond to any invitation to bid or request for proposals from 5 any State agency or otherwise enter into any contract with any 6 State agency for 3 years from the date of the last violation. A 7 notice of each violation and the penalty imposed shall be 8 published in both the Procurement Bulletin and the Illinois 9 Register. 10 (e) Any political committee that has received a 11 contribution in violation of subsection (b) or (c) shall pay 12 an amount equal to the value of the contribution to the State 13 no more than 30 calendar days after notice of the violation 14 concerning the contribution appears in the Illinois Register. 15 Payments received by the State pursuant to this subsection 16 shall be deposited into the general revenue fund. 17 (Source: P.A. 97-411, eff. 8-16-11; 98-1076, eff. 1-1-15.) 18 ARTICLE 100. LAND MAINTENANCE ACTIVITY PROJECTS 19 Section 100-5. The Illinois Solid Waste Management Act is 20 amended by changing Section 3 as follows: 21 (415 ILCS 20/3) (from Ch. 111 1/2, par. 7053) 22 Sec. 3. State agency materials recycling program. 23 (a) All State agencies and local governments shall HB2878 Enrolled - 185 - LRB103 30786 RJT 57276 b HB2878 Enrolled- 186 -LRB103 30786 RJT 57276 b HB2878 Enrolled - 186 - LRB103 30786 RJT 57276 b HB2878 Enrolled - 186 - LRB103 30786 RJT 57276 b 1 consider whether compost products can be used in the land 2 maintenance activity project when soliciting and reviewing 3 bids for land maintenance activity projects. If compost 4 products can be used in the project, the State agency or local 5 government must use compost products unless the compost 6 products: responsible for the maintenance of public lands in 7 the State shall, to the maximum extent feasible, use compost 8 materials in all land maintenance activities which are to be 9 paid with public funds. 10 (1) are not available within a reasonable period of 11 time; 12 (2) do not comply with existing purchasing standards; 13 or 14 (3) do not comply with federal or State health and 15 safety standards. 16 Beginning January 1, 2024, the Department of 17 Transportation shall report each year to the General Assembly: 18 (i) the volume of compost used in State highway 19 construction projects; 20 (ii) the status of compost and compost-based products 21 used in State highway construction projects; and 22 (iii) recommendations to maximize the use of compost 23 as a recycled material in State highway construction 24 projects. 25 State agencies and local governments are encouraged to 26 give priority to purchasing compost products from companies HB2878 Enrolled - 186 - LRB103 30786 RJT 57276 b HB2878 Enrolled- 187 -LRB103 30786 RJT 57276 b HB2878 Enrolled - 187 - LRB103 30786 RJT 57276 b HB2878 Enrolled - 187 - LRB103 30786 RJT 57276 b 1 that produce compost products locally, are certified by a 2 nationally recognized organization, and produce compost 3 products that are derived from municipal solid waste compost 4 programs. 5 (a-5) All State agencies responsible for the maintenance 6 of public lands in the State shall review its procurement 7 specifications and policies to determine (1) if incorporating 8 compost materials will help reduce stormwater run-off and 9 increase infiltration of moisture in land maintenance 10 activities and (2) the current recycled content usage and 11 potential for additional recycled content usage by the Agency 12 in land maintenance activities and report to the General 13 Assembly by December 15, 2015. 14 (b) The Department of Central Management Services, in 15 coordination with the Agency, shall implement waste reduction 16 programs, including source separation and collection, for 17 office wastepaper, corrugated containers, newsprint and mixed 18 paper, in all State buildings as appropriate and feasible. 19 Such waste reduction programs shall be designed to achieve 20 waste reductions of at least 25% of all such waste by December 21 31, 1995, and at least 50% of all such waste by December 31, 22 2000. Any source separation and collection program shall 23 include, at a minimum, procedures for collecting and storing 24 recyclable materials, bins or containers for storing 25 materials, and contractual or other arrangements with buyers 26 of recyclable materials. If market conditions so warrant, the HB2878 Enrolled - 187 - LRB103 30786 RJT 57276 b HB2878 Enrolled- 188 -LRB103 30786 RJT 57276 b HB2878 Enrolled - 188 - LRB103 30786 RJT 57276 b HB2878 Enrolled - 188 - LRB103 30786 RJT 57276 b 1 Department of Central Management Services, in coordination 2 with the Agency, may modify programs developed pursuant to 3 this Section. 4 The Department of Commerce and Community Affairs (now 5 Department of Commerce and Economic Opportunity) shall conduct 6 waste categorization studies of all State facilities for 7 calendar years 1991, 1995 and 2000. Such studies shall be 8 designed to assist the Department of Central Management 9 Services to achieve the waste reduction goals established in 10 this subsection. 11 (c) Each State agency shall, upon consultation with the 12 Agency, periodically review its procurement procedures and 13 specifications related to the purchase of products or 14 supplies. Such procedures and specifications shall be modified 15 as necessary to require the procuring agency to seek out 16 products and supplies that contain recycled materials, and to 17 ensure that purchased products or supplies are reusable, 18 durable or made from recycled materials whenever economically 19 and practically feasible. In choosing among products or 20 supplies that contain recycled material, consideration shall 21 be given to products and supplies with the highest recycled 22 material content that is consistent with the effective and 23 efficient use of the product or supply. 24 (d) Wherever economically and practically feasible, the 25 Department of Central Management Services shall procure 26 recycled paper and paper products as follows: HB2878 Enrolled - 188 - LRB103 30786 RJT 57276 b HB2878 Enrolled- 189 -LRB103 30786 RJT 57276 b HB2878 Enrolled - 189 - LRB103 30786 RJT 57276 b HB2878 Enrolled - 189 - LRB103 30786 RJT 57276 b 1 (1) Beginning July 1, 1989, at least 10% of the total 2 dollar value of paper and paper products purchased by the 3 Department of Central Management Services shall be 4 recycled paper and paper products. 5 (2) Beginning July 1, 1992, at least 25% of the total 6 dollar value of paper and paper products purchased by the 7 Department of Central Management Services shall be 8 recycled paper and paper products. 9 (3) Beginning July 1, 1996, at least 40% of the total 10 dollar value of paper and paper products purchased by the 11 Department of Central Management Services shall be 12 recycled paper and paper products. 13 (4) Beginning July 1, 2000, at least 50% of the total 14 dollar value of paper and paper products purchased by the 15 Department of Central Management Services shall be 16 recycled paper and paper products. 17 (e) Paper and paper products purchased from private 18 vendors pursuant to printing contracts are not considered 19 paper products for the purposes of subsection (d). However, 20 the Department of Central Management Services shall report to 21 the General Assembly on an annual basis the total dollar value 22 of printing contracts awarded to private sector vendors that 23 included the use of recycled paper. 24 (f)(1) Wherever economically and practically feasible, 25 the recycled paper and paper products referred to in 26 subsection (d) shall contain postconsumer or recovered HB2878 Enrolled - 189 - LRB103 30786 RJT 57276 b HB2878 Enrolled- 190 -LRB103 30786 RJT 57276 b HB2878 Enrolled - 190 - LRB103 30786 RJT 57276 b HB2878 Enrolled - 190 - LRB103 30786 RJT 57276 b 1 paper materials as specified by paper category in this 2 subsection: 3 (i) Recycled high grade printing and writing paper 4 shall contain at least 50% recovered paper material. 5 Such recovered paper material, until July 1, 1994, 6 shall consist of at least 20% deinked stock or 7 postconsumer material; and beginning July 1, 1994, 8 shall consist of at least 25% deinked stock or 9 postconsumer material; and beginning July 1, 1996, 10 shall consist of at least 30% deinked stock or 11 postconsumer material; and beginning July 1, 1998, 12 shall consist of at least 40% deinked stock or 13 postconsumer material; and beginning July 1, 2000, 14 shall consist of at least 50% deinked stock or 15 postconsumer material. 16 (ii) Recycled tissue products, until July 1, 1994, 17 shall contain at least 25% postconsumer material; and 18 beginning July 1, 1994, shall contain at least 30% 19 postconsumer material; and beginning July 1, 1996, 20 shall contain at least 35% postconsumer material; and 21 beginning July 1, 1998, shall contain at least 40% 22 postconsumer material; and beginning July 1, 2000, 23 shall contain at least 45% postconsumer material. 24 (iii) Recycled newsprint, until July 1, 1994, 25 shall contain at least 40% postconsumer material; and 26 beginning July 1, 1994, shall contain at least 50% HB2878 Enrolled - 190 - LRB103 30786 RJT 57276 b HB2878 Enrolled- 191 -LRB103 30786 RJT 57276 b HB2878 Enrolled - 191 - LRB103 30786 RJT 57276 b HB2878 Enrolled - 191 - LRB103 30786 RJT 57276 b 1 postconsumer material; and beginning July 1, 1996, 2 shall contain at least 60% postconsumer material; and 3 beginning July 1, 1998, shall contain at least 70% 4 postconsumer material; and beginning July 1, 2000, 5 shall contain at least 80% postconsumer material. 6 (iv) Recycled unbleached packaging, until July 1, 7 1994, shall contain at least 35% postconsumer 8 material; and beginning July 1, 1994, shall contain at 9 least 40% postconsumer material; and beginning July 1, 10 1996, shall contain at least 45% postconsumer 11 material; and beginning July 1, 1998, shall contain at 12 least 50% postconsumer material; and beginning July 1, 13 2000, shall contain at least 55% postconsumer 14 material. 15 (v) Recycled paperboard, until July 1, 1994, shall 16 contain at least 80% postconsumer material; and 17 beginning July 1, 1994, shall contain at least 85% 18 postconsumer material; and beginning July 1, 1996, 19 shall contain at least 90% postconsumer material; and 20 beginning July 1, 1998, shall contain at least 95% 21 postconsumer material. 22 (2) For the purposes of this Section, "postconsumer 23 material" includes: 24 (i) paper, paperboard, and fibrous wastes from 25 retail stores, office buildings, homes, and so forth, 26 after the waste has passed through its end usage as a HB2878 Enrolled - 191 - LRB103 30786 RJT 57276 b HB2878 Enrolled- 192 -LRB103 30786 RJT 57276 b HB2878 Enrolled - 192 - LRB103 30786 RJT 57276 b HB2878 Enrolled - 192 - LRB103 30786 RJT 57276 b 1 consumer item, including used corrugated boxes, old 2 newspapers, mixed waste paper, tabulating cards, and 3 used cordage; and 4 (ii) all paper, paperboard, and fibrous wastes 5 that are diverted or separated from the municipal 6 solid waste stream. 7 (3) For the purposes of this Section, "recovered paper 8 material" includes: 9 (i) postconsumer material; 10 (ii) dry paper and paperboard waste generated 11 after completion of the papermaking process (that is, 12 those manufacturing operations up to and including the 13 cutting and trimming of the paper machine reel into 14 smaller rolls or rough sheets), including envelope 15 cuttings, bindery trimmings, and other paper and 16 paperboard waste resulting from printing, cutting, 17 forming, and other converting operations, or from bag, 18 box and carton manufacturing, and butt rolls, mill 19 wrappers, and rejected unused stock; and 20 (iii) finished paper and paperboard from obsolete 21 inventories of paper and paperboard manufacturers, 22 merchants, wholesalers, dealers, printers, converters, 23 or others. 24 (g) The Department of Central Management Services may 25 adopt regulations to carry out the provisions and purposes of 26 this Section. HB2878 Enrolled - 192 - LRB103 30786 RJT 57276 b HB2878 Enrolled- 193 -LRB103 30786 RJT 57276 b HB2878 Enrolled - 193 - LRB103 30786 RJT 57276 b HB2878 Enrolled - 193 - LRB103 30786 RJT 57276 b 1 (h) Every State agency shall, in its procurement 2 documents, specify that, whenever economically and practically 3 feasible, a product to be procured must consist, wholly or in 4 part, of recycled materials, or be recyclable or reusable in 5 whole or in part. When applicable, if state guidelines are not 6 already prescribed, State agencies shall follow USEPA 7 guidelines for federal procurement. 8 (i) All State agencies shall cooperate with the Department 9 of Central Management Services in carrying out this Section. 10 The Department of Central Management Services may enter into 11 cooperative purchasing agreements with other governmental 12 units in order to obtain volume discounts, or for other 13 reasons in accordance with the Governmental Joint Purchasing 14 Act, or in accordance with the Intergovernmental Cooperation 15 Act if governmental units of other states or the federal 16 government are involved. 17 (j) The Department of Central Management Services shall 18 submit an annual report to the General Assembly concerning its 19 implementation of the State's collection and recycled paper 20 procurement programs. This report shall include a description 21 of the actions that the Department of Central Management 22 Services has taken in the previous fiscal year to implement 23 this Section. This report shall be submitted on or before 24 November 1 of each year. 25 (k) The Department of Central Management Services, in 26 cooperation with all other appropriate departments and HB2878 Enrolled - 193 - LRB103 30786 RJT 57276 b HB2878 Enrolled- 194 -LRB103 30786 RJT 57276 b HB2878 Enrolled - 194 - LRB103 30786 RJT 57276 b HB2878 Enrolled - 194 - LRB103 30786 RJT 57276 b 1 agencies of the State, shall institute whenever economically 2 and practically feasible the use of re-refined motor oil in 3 all State-owned motor vehicles and the use of remanufactured 4 and retread tires whenever such use is practical, beginning no 5 later than July 1, 1992. 6 (l) (Blank). 7 (m) The Department of Central Management Services, in 8 coordination with the Department of Commerce and Community 9 Affairs (now Department of Commerce and Economic Opportunity), 10 has implemented an aluminum can recycling program in all State 11 buildings within 270 days of the effective date of this 12 amendatory Act of 1997. The program provides for (1) the 13 collection and storage of used aluminum cans in bins or other 14 appropriate containers made reasonably available to occupants 15 and visitors of State buildings and (2) the sale of used 16 aluminum cans to buyers of recyclable materials. 17 Proceeds from the sale of used aluminum cans shall be 18 deposited into I-CYCLE accounts maintained in the Facilities 19 Management Revolving Fund and, subject to appropriation, shall 20 be used by the Department of Central Management Services and 21 any other State agency to offset the costs of implementing the 22 aluminum can recycling program under this Section. 23 All State agencies having an aluminum can recycling 24 program in place shall continue with their current plan. If a 25 State agency has an existing recycling program in place, 26 proceeds from the aluminum can recycling program may be HB2878 Enrolled - 194 - LRB103 30786 RJT 57276 b HB2878 Enrolled- 195 -LRB103 30786 RJT 57276 b HB2878 Enrolled - 195 - LRB103 30786 RJT 57276 b HB2878 Enrolled - 195 - LRB103 30786 RJT 57276 b 1 retained and distributed pursuant to that program, otherwise 2 all revenue resulting from these programs shall be forwarded 3 to Central Management Services, I-CYCLE for placement into the 4 appropriate account within the Facilities Management Revolving 5 Fund, minus any operating costs associated with the program. 6 (Source: P.A. 101-636, eff. 6-10-20; 102-444, eff. 8-20-21.) 7 ARTICLE 999. EFFECTIVE DATE 8 Section 999-99. Effective date. This Act takes effect 9 January 1, 2024. HB2878 Enrolled - 195 - LRB103 30786 RJT 57276 b