HB0357 101ST GENERAL ASSEMBLY



 

 
101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020
HB0357
 
Introduced , by Rep. Jay Hoffman
 
SYNOPSIS AS INTRODUCED:
 
30 ILCS 517/5
30 ILCS 517/10
30 ILCS 517/25

    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.



LRB101 05160 RJF 50172 b

FISCAL NOTE ACT MAY APPLY
 
 
A BILL FOR
 


HB0357LRB101 05160 RJF 50172 b



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    "Component" and "cost of components" have the meanings 
9given to those terms in the federal Buy American Act of 1933. 
10    "Manufactured in Illinois" means: (1) in the case of 
11products that are not  assembled articles, materials, or 
12supplies, that the product is mined or produced in Illinois; 
13(2) in the case of assembled articles, materials, or supplies, 
14that design, final assembly, processing, packaging, testing, 
15or other process that adds value, quality, or reliability 
16occurs in Illinois and the cost of components produced in 
17Illinois exceeds 50% of the cost of all of the components; or 
18(3) that the product is a commercially available off-the-shelf 
19item. 
20    "Manufactured in the United States" means: (1) in the case 
21of products that are not  assembled articles, materials, or 
22supplies, that the product is mined or produced in the United 
23States; (2) ,  in the case of assembled articles, materials, or 
 
 
HB0357- 2 -LRB101 05160 RJF 50172 b

1supplies, that design, final assembly, processing, packaging, 
2testing, or other process that adds value, quality, or 
3reliability occurs in the United States and the cost of 
4domestic components exceeds 50% of the cost of all of the 
5components; or (3) that the product is a commercially available 
6off-the-shelf item.
7    "Procured products" means assembled articles, materials, 
8or supplies purchased by a State agency.

9    "Purchasing agency" means a State agency.
10    "State agency" means each agency, department, authority, 
11board, or commission of the executive branch of State 
12government, including each university, whether created by 
13statute or by executive order of the Governor.

14    "United States" means the United States and any place 
15subject to the jurisdiction of the United States.


16(Source: P.A. 98-463, eff. 8-16-13.)
 
17    (30 ILCS 517/10)

18    Sec. 10. Domestic United States products.  
19    (a) Each purchasing agency making purchases of procured 
20products shall promote the purchase of and give preference to 
21manufactured articles, materials, and supplies that have been 
22manufactured in Illinois the United States. Procured products 
23manufactured in Illinois the United States shall be specified 
24and purchased unless the purchasing agency determines that any 
25of the following applies:
 
 
HB0357- 3 -LRB101 05160 RJF 50172 b

1        (1) The procured products are not manufactured in 
2    Illinois the United States in reasonably available 
3    quantities.
4        (2) The price of the procured products manufactured in 
5    Illinois the United States exceeds by an unreasonable 
6    amount the price of available and comparable procured 
7    products manufactured outside of Illinois the United 
8    States by 12% or more.  To be eligible for an exemption 
9    under this paragraph (2), the purchasing agency must first 
10    obtain a written waiver from the chief procurement officer.
11        (3) The quality of the procured products manufactured 
12    in Illinois the United States is substantially less than 
13    the quality of the comparably priced, available, and 
14    comparable procured products manufactured outside of 
15    Illinois the United States.
16        (4) The purchase of the procured products manufactured 
17    outside of Illinois the United States better serves the 
18    public interest by helping to protect or save life, 
19    property, or the environment.
20        (5) The purchase of the procured products is made in 
21    conjunction with contracts or offerings of 
22    telecommunications, fire suppression, security systems, 
23    communications services, Internet services, or information 
24    services.
25        (6) The purchase is of pharmaceutical products, drugs, 
26    biologics, vaccines, medical devices used to provide 
 
 
HB0357- 4 -LRB101 05160 RJF 50172 b

1    medical and health care or treat disease or used in medical 
2    or research diagnostic tests, and medical nutritionals 
3    regulated by the Food and Drug Administration under the 
4    federal Food, Drug and Cosmetic Act.
5    (b) If the purchasing agency determines that any of 
6paragraphs (1) through (4) of subsection (a) applies to a 
7procured product, then, with respect to that procurement, the 
8purchasing agency shall give preference to manufactured 
9articles, materials, and supplies that have been manufactured 
10in the United States. In that case, procured products 
11manufactured in the United States shall be specified and 
12purchased unless the purchasing agency determines that any of 
13the following applies: 
14        (1) The procured products are not manufactured in the




15    United States in reasonably available quantities. 
16        (2) The price of the procured products manufactured



in 
17    the United States exceeds the price of available and 
18    comparable procured products manufactured outside the 
19    United States by 12% or more.  To be eligible for an 
20    exemption under this paragraph (2), the purchasing agency 
21    must first obtain a written waiver from the chief 
22    procurement officer. 
23        (3) The quality of the procured products manufactured




24    in the United States is substantially less than the quality 
25    of the comparably priced, available, and comparable 
26    procured products manufactured outside the United States. 
 
 
HB0357- 5 -LRB101 05160 RJF 50172 b

1        (4) The purchase of the procured products



manufactured 
2    outside the United States better serves the public interest 
3    by helping to protect or save life, property, or the 
4    environment. 
5        (5) The purchase of the procured products is made in




6    conjunction with contracts or offerings of 
7    telecommunications, fire suppression, security systems, 
8    communications services, Internet services, or information 
9    services. 
10        (6) The purchase is of pharmaceutical products,



drugs, 
11    biologics, vaccines, medical devices used to provide 
12    medical and health care or treat disease or used in medical 
13    or research diagnostic tests, and medical nutritionals 
14    regulated by the Food and Drug Administration under the 
15    federal Food, Drug and Cosmetic Act. 
16    (c) In determining the price of procured products for 
17purposes of this Section, consideration shall be given to the 
18life-cycle cost, including maintenance and repair of those 
19procured products.


20(Source: P.A. 93-954, eff. 1-1-05; 94-540, eff. 1-1-06.)
 
21    (30 ILCS 517/25)

22    Sec. 25. Penalties. If a contractor is awarded a contract 
23through the use of a preference under this Act and knowingly 
24supplies
procured products under that contract that are not 
25manufactured in Illinois or the United States, as applicable, 
 
 
HB0357- 6 -LRB101 05160 RJF 50172 b

1then (i) the contractor
is barred from obtaining any State 
2contract for a period of 5 years after the violation is 
3discovered by the purchasing agency, (ii) the purchasing agency 
4may void the contract, and (iii) the purchasing agency may 
5recover damages in a civil action in an amount 3 times the 
6value of the preference.

7(Source: P.A. 93-954, eff. 1-1-05; 94-540, eff. 1-1-06.)
 

8    Section 99. Effective date. This Act takes effect upon 
9becoming law.