HB3820 Summary

• Adds Section 45-105 to the Illinois Procurement Code establishing a 4% bid preference for Illinois businesses on construction contracts exceeding $100,000, requiring the contractor to be headquartered in Illinois with majority of workforce in-state and holding appropriate state licenses.

• Requires construction agencies to make reasonable efforts to contract with Illinois businesses and submit annual reports by September 1 starting in 2022 detailing procurement of Illinois businesses, project locations, utilization percentages, and actions taken to increase use of Illinois contractors.

• Exempts bid preference from applying to projects using federal funds when the preference may conflict with federal law or regulations.

• Amends the Procurement of Domestic Products Act to establish state policy maximizing use of goods and products produced in Illinois, with preference for products manufactured in the United States unless unavailable, exceeding 12% more in price, substantially lower in quality, or falling under specified exceptions including emergency purchases and pharmaceutical products.

• Adds tie-breaking preference for Illinois-manufactured products when bidders are equal on U.S.-manufactured products, and requires purchasing agencies to submit annual compliance reports to the chief procurement officer detailing adherence to the Act and any noncompliance incidents.