103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB3550 Introduced , by Rep. Jay Hoffman SYNOPSIS AS INTRODUCED: 30 ILCS 500/45-105 Amends the Illinois Procurement Code. Provides that, when procuring construction or construction-related projects with a total value over the small purchase maximum, the construction agency shall provide a bid preference to a responsive and responsible bidder that is an Illinois business (previously just responsible). Provides that the construction agency shall allocate to the lowest bid by an Illinois business that is responsible and responsive. Provides that this only applies to projects where a bid has been submitted by a business that is not an Illinois business. Defines "Illinois business". LRB103 31010 DTM 57625 b A BILL FOR 103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB3550 Introduced , by Rep. Jay Hoffman SYNOPSIS AS INTRODUCED: 30 ILCS 500/45-105 30 ILCS 500/45-105 Amends the Illinois Procurement Code. Provides that, when procuring construction or construction-related projects with a total value over the small purchase maximum, the construction agency shall provide a bid preference to a responsive and responsible bidder that is an Illinois business (previously just responsible). Provides that the construction agency shall allocate to the lowest bid by an Illinois business that is responsible and responsive. Provides that this only applies to projects where a bid has been submitted by a business that is not an Illinois business. Defines "Illinois business". LRB103 31010 DTM 57625 b LRB103 31010 DTM 57625 b A BILL FOR 103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB3550 Introduced , by Rep. Jay Hoffman SYNOPSIS AS INTRODUCED: 30 ILCS 500/45-105 30 ILCS 500/45-105 30 ILCS 500/45-105 Amends the Illinois Procurement Code. Provides that, when procuring construction or construction-related projects with a total value over the small purchase maximum, the construction agency shall provide a bid preference to a responsive and responsible bidder that is an Illinois business (previously just responsible). Provides that the construction agency shall allocate to the lowest bid by an Illinois business that is responsible and responsive. Provides that this only applies to projects where a bid has been submitted by a business that is not an Illinois business. Defines "Illinois business". LRB103 31010 DTM 57625 b LRB103 31010 DTM 57625 b LRB103 31010 DTM 57625 b A BILL FOR HB3550LRB103 31010 DTM 57625 b HB3550 LRB103 31010 DTM 57625 b HB3550 LRB103 31010 DTM 57625 b 1 AN ACT concerning finance. 2 Be it enacted by the People of the State of Illinois, 3 represented in the General Assembly: 4 Section 5. The Illinois Procurement Code is amended by 5 changing Section 45-105 as follows: 6 (30 ILCS 500/45-105) 7 Sec. 45-105. Bid preference for Illinois businesses. 8 (a) (Blank). For the purposes of this Section: 9 "Illinois business" means a contractor that: (i) is 10 headquartered in Illinois and providing, at the time that an 11 invitation for a bid or notice of contract opportunity is 12 first advertised, construction or construction-related 13 professional services for Illinois-based projects; (ii) 14 conducts meaningful day-to-day business operations at a 15 facility in Illinois that is the place of employment for the 16 majority of its regular, full-time workforce; (iii) holds all 17 appropriate State licenses; and (iv) is subject to applicable 18 State taxes. "Illinois business" does not include any 19 subcontractors. 20 "Illinois-based project" means an individual project of 21 construction and other construction-related services for a 22 construction agency that will result in the conduct of 23 business within the State or the employment of individuals 103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB3550 Introduced , by Rep. Jay Hoffman SYNOPSIS AS INTRODUCED: 30 ILCS 500/45-105 30 ILCS 500/45-105 30 ILCS 500/45-105 Amends the Illinois Procurement Code. Provides that, when procuring construction or construction-related projects with a total value over the small purchase maximum, the construction agency shall provide a bid preference to a responsive and responsible bidder that is an Illinois business (previously just responsible). Provides that the construction agency shall allocate to the lowest bid by an Illinois business that is responsible and responsive. Provides that this only applies to projects where a bid has been submitted by a business that is not an Illinois business. Defines "Illinois business". LRB103 31010 DTM 57625 b LRB103 31010 DTM 57625 b LRB103 31010 DTM 57625 b A BILL FOR 30 ILCS 500/45-105 LRB103 31010 DTM 57625 b HB3550 LRB103 31010 DTM 57625 b HB3550- 2 -LRB103 31010 DTM 57625 b HB3550 - 2 - LRB103 31010 DTM 57625 b HB3550 - 2 - LRB103 31010 DTM 57625 b 1 within the State. 2 (b) It is hereby declared to be the public policy of the 3 State of Illinois to promote the economy of Illinois through 4 the use of Illinois businesses for all State construction 5 contracts. 6 (c) Construction agencies procuring construction and 7 construction-related professional services shall make 8 reasonable efforts to contract with Illinois businesses. 9 (d) Beginning in 2022, each construction agency shall 10 submit a report to the Governor and the General Assembly by 11 September 1 of each year that identifies the Illinois 12 businesses procured by the construction agency, the primary 13 location of the construction project, the percentage of the 14 construction agency's utilization of Illinois businesses on 15 the project as a whole, and the actions that the construction 16 agency has undertaken to increase the use of Illinois 17 businesses. 18 (e) In procuring construction and construction-related 19 professional services for projects with a total value that 20 exceeds the small purchase maximum established by Section 21 20-20 of this Code with a total construction cost of more than 22 $100,000, construction agencies shall provide a bid preference 23 to a responsive and responsible bidder that is an Illinois 24 business as defined in this Section. The construction agency 25 shall allocate to the lowest bid by an Illinois business that 26 is responsible and responsive any responsible bidder that is HB3550 - 2 - LRB103 31010 DTM 57625 b HB3550- 3 -LRB103 31010 DTM 57625 b HB3550 - 3 - LRB103 31010 DTM 57625 b HB3550 - 3 - LRB103 31010 DTM 57625 b 1 an Illinois business a bid preference of 4% of the contract 2 base bid. This subsection applies only to projects where a 3 business that is not an Illinois business submits a bid. 4 (f) This Section does not apply to any contract for any 5 project for which federal funds are available for expenditure 6 when its provisions may be in conflict with federal law or 7 federal regulation. 8 (g) As used in this Section, "Illinois business" means a 9 contractor that is operating and headquartered in Illinois and 10 providing, at the time that an invitation for a bid or notice 11 of contract opportunity is first advertised, construction or 12 construction-related professional services, and is operating 13 as: 14 (1) a sole proprietor whose primary residence is in 15 Illinois; 16 (2) a business incorporated or organized as a domestic 17 corporation under the Business Corporation Act of 1983; 18 (3) a business organized as a domestic partnership 19 under the Uniform Partnership Act of 1997; 20 (4) a business organized as a domestic limited 21 partnership under the Uniform Limited Partnership Act of 22 2001; 23 (5) a business organized under the Limited Liability 24 Company Act; or 25 (6) a business organized under the Professional 26 Limited Liability Company Act. HB3550 - 3 - LRB103 31010 DTM 57625 b HB3550- 4 -LRB103 31010 DTM 57625 b HB3550 - 4 - LRB103 31010 DTM 57625 b HB3550 - 4 - LRB103 31010 DTM 57625 b 1 "Illinois business" does not include any subcontractors. 2 (Source: P.A. 102-721, eff. 1-1-23.) HB3550 - 4 - LRB103 31010 DTM 57625 b