Bill Text: IL HB0357 | 2019-2020 | 101st General Assembly | Engrossed


Bill Title: Amends the Procurement of Domestic Products Act. Provides that purchasing agencies shall promote the purchase of and give preference to manufactured articles, materials, and supplies that have been manufactured in Illinois (currently, the United States). Provides that, if the purchasing agency determines that certain conditions apply to a procured product, then, with respect to that procurement, the purchasing agency shall give preference to manufactured articles, materials, and supplies that have been manufactured in the United States. Effective immediately.

Spectrum: Partisan Bill (Democrat 11-0)

Status: (Engrossed) 2019-05-31 - Rule 3-9(a) / Re-referred to Assignments [HB0357 Detail]

Download: Illinois-2019-HB0357-Engrossed.html



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1 AN ACT concerning finance.
2 Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
4 Section 5. The Procurement of Domestic Products Act is
5amended by changing Sections 5, 10, and 25 as follows:
6 (30 ILCS 517/5)
7 Sec. 5. Definitions. As used in this Act:
8 "Commercially available off-the-shelf item" has the same
9meaning ascribed to that term under Section 104 of Title 41 of
10the United States Code.
11 "Component" and "cost of components" have the meanings
12given to those terms in the federal Buy American Act of 1933.
13 "Manufactured in Illinois" means: (1) in the case of
14products that are not assembled articles, materials, or
15supplies, that the product is mined or produced in Illinois;
16(2) in the case of assembled articles, materials, or supplies,
17that design, final assembly, processing, packaging, testing,
18or other process that adds value, quality, or reliability
19occurs in Illinois and the cost of components produced in
20Illinois exceeds 50% of the cost of all of the components; or
21(3) that the product is a commercially available off-the-shelf
22item.
23 "Manufactured in the United States" means: (1) in the case

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1of products that are not assembled articles, materials, or
2supplies, that the product is mined or produced in the United
3States; (2) , in the case of assembled articles, materials, or
4supplies, that design, final assembly, processing, packaging,
5testing, or other process that adds value, quality, or
6reliability occurs in the United States and the cost of
7domestic components exceeds 50% of the cost of all of the
8components; or (3) that the product is a commercially available
9off-the-shelf item.
10 "Procured products" means assembled articles, materials,
11or supplies purchased by a State agency.
12 "Purchasing agency" means a State agency.
13 "State agency" means each agency, department, authority,
14board, or commission of the executive branch of State
15government, including each university, whether created by
16statute or by executive order of the Governor.
17 "United States" means the United States and any place
18subject to the jurisdiction of the United States.
19(Source: P.A. 98-463, eff. 8-16-13.)
20 (30 ILCS 517/10)
21 Sec. 10. Domestic United States products.
22 (a) Each purchasing agency making purchases of procured
23products shall promote the purchase of and give preference to
24manufactured articles, materials, and supplies that have been
25manufactured in Illinois the United States. Procured products

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1manufactured in Illinois the United States shall be specified
2and purchased unless the purchasing agency determines that any
3of the following applies:
4 (1) The procured products are not manufactured in
5 Illinois the United States in reasonably available
6 quantities.
7 (2) The price of the procured products manufactured in
8 Illinois the United States exceeds by an unreasonable
9 amount the price of available and comparable procured
10 products manufactured outside of Illinois the United
11 States by 12% or more. To be eligible for an exemption
12 under this paragraph (2), the purchasing agency must first
13 obtain a written waiver from the chief procurement officer.
14 (3) The quality of the procured products manufactured
15 in Illinois the United States is substantially less than
16 the quality of the comparably priced, available, and
17 comparable procured products manufactured outside of
18 Illinois the United States.
19 (4) The purchase of the procured products manufactured
20 outside of Illinois the United States better serves the
21 public interest by helping to protect or save life,
22 property, or the environment.
23 (5) The purchase of the procured products is made in
24 conjunction with contracts or offerings of
25 telecommunications, fire suppression, security systems,
26 communications services, Internet services, or information

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1 services.
2 (6) The purchase is of pharmaceutical products, drugs,
3 biologics, vaccines, medical devices used to provide
4 medical and health care or treat disease or used in medical
5 or research diagnostic tests, and medical nutritionals
6 regulated by the Food and Drug Administration under the
7 federal Food, Drug and Cosmetic Act.
8 (b) If the purchasing agency determines that any of
9paragraphs (1) through (4) of subsection (a) applies to a
10procured product, then, with respect to that procurement, the
11purchasing agency shall give preference to manufactured
12articles, materials, and supplies that have been manufactured
13in the United States. In that case, procured products
14manufactured in the United States shall be specified and
15purchased unless the purchasing agency determines that any of
16the following applies:
17 (1) The procured products are not manufactured in the
18 United States in reasonably available quantities.
19 (2) The price of the procured products manufactured in
20 the United States exceeds the price of available and
21 comparable procured products manufactured outside the
22 United States by 12% or more. To be eligible for an
23 exemption under this paragraph (2), the purchasing agency
24 must first obtain a written waiver from the chief
25 procurement officer.
26 (3) The quality of the procured products manufactured

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1 in the United States is substantially less than the quality
2 of the comparably priced, available, and comparable
3 procured products manufactured outside the United States.
4 (4) The purchase of the procured products manufactured
5 outside the United States better serves the public interest
6 by helping to protect or save life, property, or the
7 environment.
8 (5) The purchase of the procured products is made in
9 conjunction with contracts or offerings of
10 telecommunications, fire suppression, security systems,
11 communications services, Internet services, or information
12 services.
13 (6) The purchase is of pharmaceutical products, drugs,
14 biologics, vaccines, medical devices used to provide
15 medical and health care or treat disease or used in medical
16 or research diagnostic tests, and medical nutritionals
17 regulated by the Food and Drug Administration under the
18 federal Food, Drug and Cosmetic Act.
19 (c) In determining the price of procured products for
20purposes of this Section, consideration shall be given to the
21life-cycle cost, including maintenance and repair of those
22procured products.
23(Source: P.A. 93-954, eff. 1-1-05; 94-540, eff. 1-1-06.)
24 (30 ILCS 517/25)
25 Sec. 25. Penalties. If a contractor is awarded a contract

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1through the use of a preference under this Act and knowingly
2supplies procured products under that contract that are not
3manufactured in Illinois or the United States, as applicable,
4then (i) the contractor is barred from obtaining any State
5contract for a period of 5 years after the violation is
6discovered by the purchasing agency, (ii) the purchasing agency
7may void the contract, and (iii) the purchasing agency may
8recover damages in a civil action in an amount 3 times the
9value of the preference.
10(Source: P.A. 93-954, eff. 1-1-05; 94-540, eff. 1-1-06.)
11 Section 99. Effective date. This Act takes effect upon
12becoming law.
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