HB3777 100TH GENERAL ASSEMBLY

LRB100 10950 MLM 21187 b

100TH GENERAL ASSEMBLY
State of Illinois
2017 and 2018
HB3777

Introduced , by Rep. Juliana Stratton

SYNOPSIS AS INTRODUCED:

30 ILCS 500/45-85 new

Amends the Illinois Procurement Code. Creates a bid incentive program for State-based manufacturers. Sets forth requirements needed to access the program and the bid incentive amount for the total dollar value of locally manufactured goods. Sets forth exemptions to the incentive program. Requires the maintenance of records and provides for penalties in the event a manufacturer fails to meet projected amounts of locally-manufactured goods. Allows the Department of Central Management Services to adopt rules to implement the program.

A BILL FOR

AN ACT concerning finance.

Be it enacted by the People of the State of Illinois, represented in the General Assembly:

Section 5. The Illinois Procurement Code is amended by adding Section 45-85 as follows:

(30 ILCS 500/45-85 new)

Sec. 45-85. Bid incentive for certain State-based manufacturers.

(a) As used in this Section:

"Contract for goods" means any contract, purchase order, or agreement for the purchase of goods awarded by the State and whose cost is to be paid from funds belonging to or administered by the State; provided that a "contract" does not include: (i) a delegate agency contract; (ii) a lease of real property; (iii) a collective bargaining agreement; or (iv) a contract for construction services under this Code.

"Locally-manufactured goods" means goods whose value, either in whole or in part, is derived from growing, producing, processing, assembling, or manufacturing activities that occur within a State-based manufacturer's facility located within the State.

"Manufacture" means to produce tangible goods for use from raw or prepared materials by giving the materials new forms, qualities, properties, or combinations, whether by hand-labor or machines.

"State-based manufacturer" means a person who: (i) holds any appropriate State license; (ii) is subject to applicable State taxes; and (iii) owns, operates, or leases a manufacturing facility within the State.

(b) Unless otherwise prohibited by any federal, State, or local law, for any contract for goods having an estimated contract value of $100,000 or more advertised, or if not advertised awarded, after the effective date of this Section, the chief procurement officer shall allocate to any qualified bidder the following bid incentive:

for any contract subject to this Section, if a contractor is allocated a bid preference pursuant to another Section of this Code, the contractor shall not be eligible to receive the bid incentive allocated pursuant to this Section.

The bid incentive is used only to calculate an amount to be used in evaluating the bid to determine the low bidder, and it does not affect the contract price.

(c) The applicable chief procurement officer may determine not to allocate a bid incentive under this Section, under the following conditions:

(i) the purchase of locally-manufactured goods is not in the best interest of the State;

(ii) the locally-manufactured goods are not likely to be available in sufficient supply and acceptable quality;

(iii) the purchase of locally-manufactured goods conflicts with another State economic development program;

(iv) the purchase of locally-manufactured goods will increase the cost of the goods by more than 5% over non-locally manufactured goods;

(v) for cooperative purchasing contracts; or

(vi) an emergency exists.

(d) For all contracts advertised after the effective date of this Section, the applicable chief procurement officer shall include the bid incentive provision consistent with this Section in all contract advertising.

(e) The contractor shall maintain records adequate to monitor compliance with this section and shall submit such reports as required by the applicable chief procurement officer. Full access to the contractor's records shall be granted to the applicable chief procurement officer, the director of the contracting State agency, the executive inspector general, or any duly authorized representative thereof. The contractor and subcontractors shall maintain all relevant records for a period of no less than 3 years after the expiration of the contract.

(f) The applicable chief procurement officer may require, at the time of submission of a bid or at any time during the term of the contract, that the bidder or contractor submit an affidavit and other supporting documents demonstrating that the bid for which the bid incentive is being or was sought satisfies all pertinent requirements, including documentation that a specific good meets the criteria for a locally-manufactured good. The documentation may include, but is not limited to, a manufacturer's certification that the good was manufactured at a facility located in the State and an opinion from a certified public accountant that evidences the amount of the value being added from the manufacturing activity located in the State.

(g) Upon completion of the work, any contractor that has failed to supply the required percentage of locally-manufactured goods for which a bid incentive was allocated shall be fined in an amount equal to 3 times the amount of the difference between the bid incentive allocated and the bid incentive that would have been allocated to that contractor for the amount of locally-manufactured goods actually supplied under the contract, unless the contractor can demonstrate that due to circumstances beyond the contractor's control, the contractor for good cause was unable to provide the required percentage of locally manufactured goods.

(h) The Department of Central Management Services may adopt reasonable rules pertaining to the administration and enforcement of this Section.