* The bill passed by a vote of 114-0. From Speaker Madigan’s office…
Speaker Michael J. Madigan issued the following statement Monday after the House voted to pass Senate Bill 8, a package of reforms negotiated by Gov. Bruce Rauner to help streamline acquisition of goods and services, reducing costs to the state:
“Today’s passage of a procurement reform package requested by Governor Rauner is another instance in which House Democrats have followed through on our commitment to work cooperatively with the governor to reduce the cost of government and address the issues facing our state.
“This bill is the result of negotiation between legislators and the administration. In January, I directed the House State Government Administration Committee to thoroughly evaluate the governor’s procurement proposal, and that committee approved the governor’s plan with bipartisan support.
“The biggest issue facing Illinois remains the state budget. As the governor continues to hold other aspects of his agenda as pre-conditions to his cooperation on a full balanced budget, I renew my request that the governor immediately focus on working with House Democrats to find common ground and pass a budget for our state. Today’s agreement is proof that House Democrats are willing to make compromises to move Illinois forward.”
The bill is SB 8.
*** UPDATE 1 *** From Eleni Demertzis in the governor’s office…
Tiny, incremental steps to change our broken system are better than nothing, but what the House passed today is far from what is needed.
While Speaker Madigan’s Democrats continue to argue over how big of a tax hike to impose on the people of Illinois, the governor remains focused on enacting real and lasting property tax relief.
The governor has previously said that his procurement reforms could save a half-billion dollars a year. I’ve asked for some clarification.
*** UPDATE 2 *** The answer to my question…
Because they’ve removed the most important structural changes from the bill, we can’t give any estimate on savings but we know it won’t be anywhere near that number.
*** UPDATE 3 *** From Steve Brown…
If the Governor is saying the differences between the Senate bill and the House amendment won’t result in savings, here’s the list of changes. None of these should reduce the number, and there was a claim SB8 as it passed the House would save $70M a year [the same claim made in the Senate].
* The House amendment requires agencies to submit a list of exempt contracts to the CPO. The purpose of this is to increase transparency and establish one location where members and the public can find information about exempt contracts. This was not included in the bill as it passed the Senate.
* As it passed the Senate, the bill exempted from the Procurement Code (1) public private partnerships, and (2) food purchased for commercial resale by public universities. This is not included in the House amendment.
* As it passed the Senate, the bill removes the 90-day cap on emergency procurements for construction at the request of Capital Development Board. This is not included in the House amendment.
* As it passed the Senate, the bill gives agencies authority to use master contracts, interpreted without CPO oversight. The House amendment clarifies the CPO has authority and allows a CPO to void, ratify, or affirm a joint purchase that was in violation of the law under the Governmental Joint Purchasing Act. This language was initially requested by House GOP members.
* As it passed the Senate, the bill repeals the procurement reporting requirement. The House amendment clarifies this language, but does not repeal it.
* As it passed the Senate, the bill creates a Special Committee to review procurement laws and recommend improvements in (i) efficiency, (ii) minority, female, and veterans contracting, and (iii) Illinois preference purchasing. The House amendment does not remove the General Assembly from procurement discussions, but does includes a committee solely focused on minority, female, and veterans contracting.
* As it passed the Senate, the bill allows universities to enter a lease for 30 years if the lessor has to make more than $100K in improvements. This is not included in the House amendment.
* As it passed the Senate, the bill includes the use of prequalified pools for all areas of procurement. This is not included in the House amendment.
* As it passed the Senate, the bill allows universities to directly contract, without CPO oversight, with the Midwest Higher Education Cooperation Act for computer and technology equipment, or services, and insurance. The House amendment allows these purchases with CPO oversight.
* As it passed the Senate, the bill changes the Small Business Act to allow the state to count contractors and sub-contractors toward the goal of awarding 10% of total contract dollars to small businesses. This makes it easier to meet the 10% goal. The House amendment does not include subcontractors and moves the current requirements of the Small Business Act into the Procurement Code. The intent is to urge the State to enter into a greater number of contracts with small businesses.